QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the transition period from to |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
☑ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
ASSOCIATED BANC-CORP | |||||
Table of Contents |
Page | ||||||||
ASSOCIATED BANC-CORP | |||||
Commonly Used Acronyms and Abbreviations | |||||
The following listing provides a reference of common acronyms and abbreviations used throughout the document: |
ABRC | Associated Benefits & Risk Consulting, the Corporation's insurance division which was sold on June 30, 2020 | ||||
ACLL | Allowance for Credit Losses on Loans | ||||
AFS | Available for Sale | ||||
ALCO | Asset / Liability Committee | ||||
ARRC | Alternative Reference Rate Committee | ||||
ASC | Accounting Standards Codification | ||||
Associated / Corporation / our / we | Associated Banc-Corp collectively with all of its subsidiaries and affiliates | ||||
Associated Bank / the Bank | Associated Bank, National Association | ||||
ASU | Accounting Standards Update | ||||
Basel III | International framework established by the Basel Committee on Banking Supervision for the regulation of capital and liquidity | ||||
bp | basis point(s) | ||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | ||||
CDs | Certificates of Deposit | ||||
CDIs | Core Deposit Intangibles | ||||
CECL | Current Expected Credit Losses | ||||
CET1 | Common Equity Tier 1 | ||||
CRA | Community Reinvestment Act | ||||
CRE | Commercial Real Estate | ||||
EAR | Earnings at Risk | ||||
Economic Aid Act | Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
Federal Reserve | Board of Governors of the Federal Reserve System | ||||
FFELP | Federal Family Education Loan Program | ||||
FHLB | Federal Home Loan Bank | ||||
FHLMC | Federal Home Loan Mortgage Corporation | ||||
FICO | Fair Isaac Corporation, provider of a broad-based risk score to aid in credit decisions | ||||
First Staunton | First Staunton Bancshares, Incorporated | ||||
FNMA | Federal National Mortgage Association | ||||
FTEs | Full-time equivalent employees | ||||
FTP | Funds Transfer Pricing | ||||
GAAP | Generally Accepted Accounting Principles | ||||
GNMA | Government National Mortgage Association | ||||
GSEs | Government-Sponsored Enterprises | ||||
HTM | Held to Maturity | ||||
IT | Information Technology | ||||
LIBOR | London Interbank Offered Rate | ||||
LTV | Loan-to-Value | ||||
MSRs | Mortgage Servicing Rights | ||||
MVE | Market Value of Equity | ||||
Net Free Funds | Noninterest-bearing sources of funds |
NII | Net Interest Income | ||||
NPAs | Nonperforming Assets | ||||
OREO | Other Real Estate Owned | ||||
Parent Company | Associated Banc-Corp individually | ||||
PCD | Purchased Credit Deteriorated | ||||
PPP | Paycheck Protection Program | ||||
PPPLF | Paycheck Protection Program Liquidity Facility | ||||
RAP | Retirement Account Plan - the Corporation's noncontributory defined benefit retirement plan | ||||
Repurchase Agreements | Securities sold under agreements to repurchase | ||||
Restricted Stock Awards | Restricted common stock and restricted common stock units to certain key employees | ||||
Retirement Eligible Colleagues | Colleagues whose retirement meets the early retirement or normal retirement definitions under the applicable equity compensation plan | ||||
Rockefeller | Rockefeller Capital Management | ||||
S&P | Standard & Poor's | ||||
SBA | Small Business Administration | ||||
SEC | U.S. Securities and Exchange Commission | ||||
Series C Preferred Stock | The Corporation's 6.125% Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference $1,000 per share | ||||
Series D Preferred Stock | The Corporation's 5.375% Non-Cumulative Perpetual Preferred Stock, Series D, liquidation preference $1,000 per share | ||||
Series E Preferred Stock | The Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series E, liquidation preference $1,000 per share | ||||
Series F Preferred Stock | The Corporation's 5.625% Non-Cumulative Perpetual Preferred Stock, Series F, liquidation preference $1,000 per share | ||||
SOFR | Secured Overnight Finance Rate | ||||
TDR | Troubled Debt Restructuring | ||||
USI | USI Insurance Services LLC | ||||
Whitnell | Whitnell & Co. | ||||
YTD | Year-to-Date |
PART I - FINANCIAL INFORMATION | |||||
ITEM 1. | Financial Statements: |
Sep 30, 2021 | Dec 31, 2020 | |||||||
(In Thousands, except share and per share data) | (Unaudited) | (Audited) | ||||||
Assets | ||||||||
Cash and due from banks | $ | $ | ||||||
Interest-bearing deposits in other financial institutions | ||||||||
Federal funds sold and securities purchased under agreements to resell | ||||||||
Investment securities AFS, at fair value | ||||||||
Investment securities HTM, net, at amortized cost | ||||||||
Equity securities | ||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | ||||||||
Residential loans held for sale | ||||||||
Loans | ||||||||
Allowance for loan losses | ( | ( | ||||||
Loans, net | ||||||||
Tax credit and other investments | ||||||||
Premises and equipment, net | ||||||||
Bank and corporate owned life insurance | ||||||||
Goodwill | ||||||||
Other intangible assets, net | ||||||||
Mortgage servicing rights, net | ||||||||
Interest receivable | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and Stockholders' Equity | ||||||||
Noninterest-bearing demand deposits | $ | $ | ||||||
Interest-bearing deposits | ||||||||
Total deposits | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | ||||||||
Commercial paper | ||||||||
FHLB advances | ||||||||
Other long-term funding | ||||||||
Allowance for unfunded commitments | ||||||||
Accrued expenses and other liabilities | ||||||||
Total liabilities | ||||||||
Stockholders’ Equity | ||||||||
Preferred equity | ||||||||
Common equity | ||||||||
Common stock | ||||||||
Surplus | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive income (loss) | ( | |||||||
Treasury stock, at cost | ( | ( | ||||||
Total common equity | ||||||||
Total stockholders’ equity | ||||||||
Total liabilities and stockholders’ equity | $ | $ | ||||||
Preferred shares authorized (par value $ | ||||||||
Preferred shares issued and outstanding | ||||||||
Common shares authorized (par value $ | ||||||||
Common shares issued | ||||||||
Common shares outstanding |
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
(In Thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Interest income | ||||||||||||||
Interest and fees on loans | $ | $ | $ | $ | ||||||||||
Interest and dividends on investment securities | ||||||||||||||
Taxable | ||||||||||||||
Tax-exempt | ||||||||||||||
Other interest | ||||||||||||||
Total interest income | ||||||||||||||
Interest expense | ||||||||||||||
Interest on deposits | ||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | ||||||||||||||
Interest on other short-term funding | ||||||||||||||
Interest on PPPLF | ||||||||||||||
Interest on FHLB advances | ||||||||||||||
Interest on long-term funding | ||||||||||||||
Total interest expense | ||||||||||||||
Net interest income | ||||||||||||||
Provision for credit losses | ( | ( | ||||||||||||
Net interest income after provision for credit losses | ||||||||||||||
Noninterest income | ||||||||||||||
Wealth management fees | ||||||||||||||
Service charges and deposit account fees | ||||||||||||||
Card-based fees | ||||||||||||||
Other fee-based revenue | ||||||||||||||
Capital markets, net | ||||||||||||||
Mortgage banking, net | ||||||||||||||
Bank and corporate owned life insurance | ||||||||||||||
Insurance commissions and fees | ||||||||||||||
Asset gains (losses), net(a) | ( | |||||||||||||
Investment securities gains (losses), net | ( | |||||||||||||
Gains on sale of branches, net(b) | ||||||||||||||
Other | ||||||||||||||
Total noninterest income | ||||||||||||||
Noninterest expense | ||||||||||||||
Personnel | ||||||||||||||
Technology | ||||||||||||||
Occupancy | ||||||||||||||
Business development and advertising | ||||||||||||||
Equipment | ||||||||||||||
Legal and professional | ||||||||||||||
Loan and foreclosure costs | ||||||||||||||
FDIC assessment | ||||||||||||||
Other intangible amortization | ||||||||||||||
Loss on prepayments of FHLB advances | ||||||||||||||
Other | ||||||||||||||
Total noninterest expense | ||||||||||||||
Income (loss) before income taxes | ( | |||||||||||||
Income tax expense (benefit) | ( | |||||||||||||
Net income | ||||||||||||||
Preferred stock dividends | ||||||||||||||
Net income available to common equity | $ | $ | $ | $ | ||||||||||
Earnings per common share | ||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||
Diluted | $ | $ | $ | $ | ||||||||||
Average common shares outstanding | ||||||||||||||
Basic | ||||||||||||||
Diluted |
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||
Investment securities AFS | ||||||||||||||
Net unrealized gains (losses) | ( | ( | ||||||||||||
Amortization of net unrealized (gains) losses on AFS securities transferred to HTM securities | ||||||||||||||
Reclassification adjustment for net losses (gains) realized in net income | ( | ( | ||||||||||||
Income tax (expense) benefit | ( | ( | ||||||||||||
Other comprehensive income (loss) on investment securities AFS | ( | ( | ||||||||||||
Defined benefit pension and postretirement obligations | ||||||||||||||
Amortization of prior service cost | ( | ( | ( | ( | ||||||||||
Amortization of actuarial loss (gain) | ||||||||||||||
Income tax (expense) benefit | ( | ( | ( | ( | ||||||||||
Other comprehensive income (loss) on pension and postretirement obligations | ||||||||||||||
Total other comprehensive income (loss) | ( | ( | ||||||||||||
Comprehensive income | $ | $ | $ | $ |
(In Thousands, except per share data) | Preferred Equity | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | ||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | — | ( | ||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Common stock issued | |||||||||||||||||||||||
Stock-based compensation plans, net | — | — | ( | — | — | ||||||||||||||||||
Purchase of treasury stock, open market purchases | — | — | — | — | — | ( | ( | ||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Common stock, $0.18 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(a) | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | ||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||
Stock-based compensation plans, net | — | — | ( | — | — | ||||||||||||||||||
Purchase of treasury stock, open market purchases | — | — | — | — | — | ( | ( | ||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends: | |||||||||||||||||||||||
Common stock, $0.18 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(b) | — | — | — | ( | — | — | ( | ||||||||||||||||
Redemption of preferred stock | ( | — | — | ( | — | — | ( | ||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | — | ( | ||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||
Stock-based compensation plans, net | — | — | — | — | |||||||||||||||||||
Purchase of treasury stock, open market purchases | — | — | — | — | — | ( | ( | ||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends: | |||||||||||||||||||||||
Common stock, $0.20 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(c) | — | — | — | ( | — | — | ( | ||||||||||||||||
Redemption of preferred stock | ( | — | — | ( | — | — | ( | ||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ |
(In Thousands, except per share data) | Preferred Equity | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | ||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
Cumulative effect of ASU 2016-13 adoption (CECL) | — | — | — | ( | — | — | ( | ||||||||||||||||
Total shareholder's equity at beginning of period, as adjusted | ( | ( | |||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | ||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Common stock issued | |||||||||||||||||||||||
Stock-based compensation plans, net | — | — | ( | — | |||||||||||||||||||
Purchase of treasury stock, open market purchases | — | — | — | — | — | ( | ( | ||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Common stock, $0.18 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(a) | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | ||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||
Stock-based compensation plans, net | — | — | — | ( | |||||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||
Common stock, $0.18 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(b) | — | — | — | ( | — | — | ( | ||||||||||||||||
Issuance of preferred stock | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | ||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||
Stock-based compensation plans, net | — | — | — | ( | |||||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends: | |||||||||||||||||||||||
Common stock, $0.18 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(c) | — | — | — | ( | — | — | ( | ||||||||||||||||
Issuance of preferred stock | ( | — | — | — | — | — | ( | ||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
Balance, September 30, 2020 | $ | $ | $ | $ | $ | $ | ( | $ |
Nine Months Ended Sep 30, | ||||||||
($ in Thousands) | 2021 | 2020 | ||||||
Cash Flow From Operating Activities | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||||||
Provision for credit losses | ( | |||||||
Depreciation and amortization | ||||||||
Addition to (recovery of) valuation allowance on mortgage servicing rights, net | ( | |||||||
Amortization of mortgage servicing rights | ||||||||
Amortization of other intangible assets | ||||||||
Amortization and accretion on earning assets, funding, and other, net | ||||||||
Net amortization of tax credit investments | ||||||||
Losses (gains) on sales of investment securities, net | ( | |||||||
Asset (gains) losses, net | ( | ( | ||||||
(Gains) losses on sale of branch, net | ( | |||||||
(Gain) loss on mortgage banking activities, net | ( | ( | ||||||
Mortgage loans originated and acquired for sale | ( | ( | ||||||
Proceeds from sales of mortgage loans held for sale | ||||||||
Changes in certain assets and liabilities | ||||||||
(Increase) decrease in interest receivable | ( | |||||||
Increase (decrease) in interest payable | ( | ( | ||||||
Increase (decrease) in expense payable | ( | |||||||
(Increase) decrease in net derivative position | ( | |||||||
(Increase) decrease in net income tax position | ( | ( | ||||||
Net change in other assets and other liabilities | ||||||||
Net cash provided by (used in) operating activities | ||||||||
Cash Flow From Investing Activities | ||||||||
Net decrease (increase) in loans | ( | |||||||
Purchases of | ||||||||
AFS securities | ( | ( | ||||||
HTM securities | ( | ( | ||||||
Federal Home Loan Bank and Federal Reserve Bank stocks and equity securities | ( | ( | ||||||
Premises, equipment, and software, net of disposals | ( | ( | ||||||
Other intangibles | ( | |||||||
Proceeds from | ||||||||
Sales of securities | ||||||||
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks | ||||||||
Prepayments, calls, and maturities of AFS investment securities | ||||||||
Prepayments, calls, and maturities of HTM investment securities | ||||||||
Sales, prepayments, calls, and maturities of other assets | ||||||||
Net cash received in business segment sale | ||||||||
Net change in tax credit and alternative investments | ( | ( | ||||||
Net cash (paid) received in acquisition | ( | |||||||
Net cash provided by (used in) investing activities | ( | ( | ||||||
Cash Flow From Financing Activities | ||||||||
Net increase (decrease) in deposits | ||||||||
Net decrease in deposits due to branch sales | ( | |||||||
Net increase (decrease) in short-term funding | ( | |||||||
Net increase (decrease) in short-term FHLB advances | ( | |||||||
Repayment of long-term FHLB advances | ( | ( | ||||||
Proceeds from long-term FHLB advances | ||||||||
Proceeds from PPPLF | ||||||||
(Repayment) proceeds of finance lease principal | ( | ( | ||||||
Repayment of senior notes | ( | |||||||
Proceeds from issuance of preferred shares | ||||||||
Proceeds from issuance of common stock for stock-based compensation plans | ||||||||
Redemption of preferred shares | ( | |||||||
Purchase of treasury stock, open market purchases | ( | ( | ||||||
Purchase of treasury stock, stock-based compensation plans | ( | ( | ||||||
Cash dividends on common stock | ( | ( | ||||||
Cash dividends on preferred stock | ( | ( | ||||||
Net cash provided by (used in) financing activities | ||||||||
Net increase (decrease) in cash and cash equivalents | ||||||||
Cash and cash equivalents at beginning of period | ||||||||
Cash and cash equivalents at end of period(a) | $ | $ |
Nine Months Ended September 30, | ||||||||
($ in Thousands) | 2021 | 2020 | ||||||
Supplemental disclosures of cash flow information | ||||||||
Cash paid for interest | $ | $ | ||||||
Cash paid for (received from) income and franchise taxes | ||||||||
Loans and bank premises transferred to OREO | ||||||||
Capitalized mortgage servicing rights | ||||||||
Loans transferred into held for sale from portfolio, net | ||||||||
Unsettled trades to purchase securities | ||||||||
Acquisition | ||||||||
Fair value of assets acquired, including cash and cash equivalents | ||||||||
Fair value ascribed to goodwill and intangible assets | ||||||||
Fair value of liabilities assumed | ||||||||
($ in Thousands) | Purchase Accounting Adjustments | February 14, 2020 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Investment securities AFS | ( | |||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | ||||||||
Loans | ( | |||||||
Premises and equipment, net | ( | |||||||
Bank owned life insurance | ||||||||
Goodwill | ||||||||
Core deposit intangibles (included in other intangible assets, net on the face of the consolidated balance sheets) | ||||||||
OREO (included in other assets on the face of the consolidated balance sheets) | ||||||||
Other assets | ||||||||
Total assets | $ | |||||||
Liabilities | ||||||||
Deposits | $ | $ | ||||||
Other borrowings | ||||||||
Accrued expenses and other liabilities | ||||||||
Total liabilities | $ | |||||||
Total consideration paid | $ |
($ in Thousands) | February 14, 2020 | ||||
Purchase price of loans at acquisition | $ | ||||
Allowance for credit losses at acquisition | |||||
Non-credit discount/(premium) at acquisition | ( | ||||
Par value of acquired loans at acquisition | $ |
Standard | Description | Date of adoption | Effect on financial statements | |||||||||||||||||
ASU 2019-12 Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes | The FASB issued this amendment to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendment also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this Update were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendment was permitted. | 1st Quarter 2021 | Adoption of this amendment did not have a material impact on the Corporation's results of operation, financial position or liquidity. | |||||||||||||||||
ASU 2020-08 Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs | The FASB issued this amendment to clarify that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. The amendments in this Update were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments was not permitted. | 1st Quarter 2021 | Adoption of this amendment did not have a material impact on the Corporation's results of operation, financial position or liquidity. |
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | ||||||||||||||||
(In Thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||
Preferred stock dividends | ( | ( | ( | ( | |||||||||||||
Net income available to common equity | $ | $ | $ | $ | |||||||||||||
Common shareholder dividends | ( | ( | ( | ( | |||||||||||||
Unvested share-based payment awards | ( | ( | ( | ( | |||||||||||||
Undistributed earnings | $ | $ | $ | $ | |||||||||||||
Undistributed earnings allocated to common shareholders | $ | $ | $ | $ | |||||||||||||
Undistributed earnings allocated to unvested share-based payment awards | |||||||||||||||||
Undistributed earnings | $ | $ | $ | $ | |||||||||||||
Basic | |||||||||||||||||
Distributed earnings to common shareholders | $ | $ | $ | $ | |||||||||||||
Undistributed earnings allocated to common shareholders | |||||||||||||||||
Total common shareholders earnings, basic | $ | $ | $ | $ | |||||||||||||
Diluted | |||||||||||||||||
Distributed earnings to common shareholders | $ | $ | $ | $ | |||||||||||||
Undistributed earnings allocated to common shareholders | |||||||||||||||||
Total common shareholders earnings, diluted | $ | $ | $ | $ | |||||||||||||
Weighted average common shares outstanding | |||||||||||||||||
Effect of dilutive common stock awards | |||||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||
Diluted earnings per common share | $ | $ | $ | $ |
2020 | |||||||||||
Dividend yield | % | ||||||||||
Risk-free interest rate | % | ||||||||||
Weighted average expected volatility | % | ||||||||||
Weighted average expected life | |||||||||||
Weighted average per share fair value of options | $ |
Stock Options | Shares(a) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value(a) | ||||||||||
Outstanding at December 31, 2020 | $ | $ | ||||||||||||
Exercised | ||||||||||||||
Forfeited or expired | ||||||||||||||
Outstanding at September 30, 2021 | $ | $ | ||||||||||||
Options Exercisable at September 30, 2021 | $ | $ |
Restricted Stock Awards | Shares(a) | Weighted Average Grant Date Fair Value | |||||||||
Outstanding at December 31, 2020 | $ | ||||||||||
Granted | |||||||||||
Vested | |||||||||||
Forfeited | |||||||||||
Outstanding at September 30, 2021 | $ |
($ in Thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||
Investment securities AFS | ||||||||||||||
U. S. Treasury securities | $ | $ | $ | ( | $ | |||||||||
Agency securities | ( | |||||||||||||
Obligations of state and political subdivisions (municipal securities) | ||||||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ( | |||||||||||||
GNMA | ||||||||||||||
Private-label | ||||||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ( | |||||||||||||
GNMA | ||||||||||||||
Asset backed securities | ||||||||||||||
FFELP | ( | |||||||||||||
SBA | ( | |||||||||||||
Other debt securities | ( | |||||||||||||
Total investment securities AFS | $ | $ | $ | ( | $ | |||||||||
Investment securities HTM | ||||||||||||||
U. S. Treasury securities | $ | $ | $ | $ | ||||||||||
Obligations of state and political subdivisions (municipal securities) | ( | |||||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ||||||||||||||
GNMA | ||||||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA/FHLMC | ( | |||||||||||||
GNMA | ( | |||||||||||||
Total investment securities HTM | $ | $ | $ | ( | $ |
($ in Thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||
Investment securities AFS | ||||||||||||||
U. S. Treasury securities | $ | $ | $ | $ | ||||||||||
Agency securities | ||||||||||||||
Obligations of state and political subdivisions (municipal securities) | ||||||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ( | |||||||||||||
GNMA | ( | |||||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ||||||||||||||
GNMA | ||||||||||||||
Asset backed securities | ||||||||||||||
FFELP | ( | |||||||||||||
SBA | ( | |||||||||||||
Other debt securities | ||||||||||||||
Total investment securities AFS | $ | $ | $ | ( | $ | |||||||||
Investment securities HTM | ||||||||||||||
U. S. Treasury securities | $ | $ | $ | $ | ||||||||||
Obligations of state and political subdivisions (municipal securities) | ||||||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ||||||||||||||
GNMA | ||||||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ||||||||||||||
GNMA | ||||||||||||||
Total investment securities HTM | $ | $ | $ | $ |
AFS | HTM | |||||||||||||
($ in Thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||
Due in one year or less | $ | $ | $ | $ | ||||||||||
Due after one year through five years | ||||||||||||||
Due after five years through ten years | ||||||||||||||
Due after ten years | ||||||||||||||
Total debt securities | ||||||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ||||||||||||||
GNMA | ||||||||||||||
Private-label | ||||||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ||||||||||||||
GNMA | ||||||||||||||
Asset backed securities | ||||||||||||||
FFELP | ||||||||||||||
SBA | ||||||||||||||
Total investment securities | $ | $ | $ | $ | ||||||||||
Ratio of fair value to amortized cost | % | % |
($ in Thousands) | AAA | AA | A | Not Rated | Total | ||||||||||||
U. S. Treasury securities | $ | $ | $ | $ | $ | ||||||||||||
Obligations of state and political subdivisions (municipal securities) | |||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||
FNMA / FHLMC | |||||||||||||||||
GNMA | |||||||||||||||||
Commercial mortgage-related securities | |||||||||||||||||
FNMA / FHLMC | |||||||||||||||||
GNMA | |||||||||||||||||
Total HTM securities | $ | $ | $ | $ | $ |
($ in Thousands) | AAA | AA | A | Total | ||||||||||
U. S. Treasury securities | $ | $ | $ | $ | ||||||||||
Obligations of state and political subdivisions (municipal securities) | ||||||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ||||||||||||||
GNMA | ||||||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA / FHLMC | ||||||||||||||
GNMA | ||||||||||||||
Total HTM securities | $ | $ | $ | $ |
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Gross gains on AFS securities | $ | $ | $ | $ | ||||||||||
Gross (losses) on AFS securities | ( | ( | ||||||||||||
Investment securities gains (losses), net | $ | $ | $ | ( | $ | |||||||||
Proceeds from sales of investment securities | $ | $ | $ | $ |
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
($ in Thousands) | Number of Securities | Unrealized (Losses) | Fair Value | Number of Securities | Unrealized (Losses) | Fair Value | Unrealized (Losses) | Fair Value | ||||||||||||||||||
Investment securities AFS | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||
Agency securities | ( | ( | ||||||||||||||||||||||||
Residential mortgage-related securities | ||||||||||||||||||||||||||
FNMA / FHLMC | ( | ( | ||||||||||||||||||||||||
GNMA | ||||||||||||||||||||||||||
FNMA / FHLMC commercial mortgage-related securities | ( | ( | ||||||||||||||||||||||||
Asset backed securities | ||||||||||||||||||||||||||
FFELP | ( | ( | ( | |||||||||||||||||||||||
SBA | ( | ( | ||||||||||||||||||||||||
Other debt securities | ( | ( | ||||||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Investment securities HTM | ||||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||
Commercial mortgage-related securities | ||||||||||||||||||||||||||
FNMA / FHLMC | ( | ( | ||||||||||||||||||||||||
GNMA | ( | ( | ||||||||||||||||||||||||
Total | $ | ( | $ | $ | $ | $ | ( | $ |
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
($ in Thousands) | Number of Securities | Unrealized (Losses) | Fair Value | Number of Securities | Unrealized (Losses) | Fair Value | Unrealized (Losses) | Fair Value | ||||||||||||||||||
Investment securities AFS | ||||||||||||||||||||||||||
Residential mortgage-related securities | ||||||||||||||||||||||||||
FNMA / FHLMC | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||
GNMA | ( | ( | ||||||||||||||||||||||||
GNMA commercial mortgage-related securities | ||||||||||||||||||||||||||
Asset backed securities | ||||||||||||||||||||||||||
FFELP | ( | ( | ( | |||||||||||||||||||||||
SBA | ( | ( | ||||||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Investment securities HTM | ||||||||||||||||||||||||||
GNMA residential mortgage-related securities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
($ in Thousands) | Sep 30, 2021 | Dec 31, 2020 | ||||||
PPP | $ | $ | ||||||
Commercial and industrial | ||||||||
Commercial real estate — owner occupied | ||||||||
Commercial and business lending | ||||||||
Commercial real estate — investor | ||||||||
Real estate construction | ||||||||
Commercial real estate lending | ||||||||
Total commercial | ||||||||
Residential mortgage | ||||||||
Home equity | ||||||||
Other consumer | ||||||||
Auto | ||||||||
Total consumer | ||||||||
Total loans | $ | $ |
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
($ in Thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | YTD 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | ||||||||||||||||||||
PPP:(b) | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
PPP | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate - owner occupied: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial and business lending: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial and business lending | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate - investor: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial real estate - investor | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Real estate construction: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Real estate construction | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate lending: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial real estate lending | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
($ in Thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | YTD 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | ||||||||||||||||||||
Total commercial: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Residential mortgage | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Home equity: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Home equity | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Other consumer: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Other consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total consumer: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total loans: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass(c) | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
($ in Thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||
PPP:(b) | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
PPP | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate - owner occupied: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial and business lending: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial and business lending | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate - investor: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial real estate - investor | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Real estate construction: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Real estate construction | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate lending: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial real estate lending | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
($ in Thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||
Total commercial: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Residential mortgage | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Home equity: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Home equity | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Other consumer: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Other consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total consumer: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total loans: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass (c) | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Accruing | ||||||||||||||||||||
($ in Thousands) | Current(a) | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Nonaccrual(b)(c) | Total | ||||||||||||||
PPP | $ | $ | $ | $ | $ | $ | ||||||||||||||
Commercial and industrial | ||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||
Commercial and business lending | ||||||||||||||||||||
Commercial real estate - investor | ||||||||||||||||||||
Real estate construction | ||||||||||||||||||||
Commercial real estate lending | ||||||||||||||||||||
Total commercial | ||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||
Home equity | ||||||||||||||||||||
Other consumer | ||||||||||||||||||||
Auto | ||||||||||||||||||||
Total consumer | ||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
Accruing | ||||||||||||||||||||
($ in Thousands) | Current(a) | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Nonaccrual(b)(c) | Total | ||||||||||||||
PPP | $ | $ | $ | $ | $ | $ | ||||||||||||||
Commercial and industrial | ||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||
Commercial and business lending | ||||||||||||||||||||
Commercial real estate - investor | ||||||||||||||||||||
Real estate construction | ||||||||||||||||||||
Commercial real estate lending | ||||||||||||||||||||
Total commercial | ||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||
Home equity | ||||||||||||||||||||
Other consumer | ||||||||||||||||||||
Auto | ||||||||||||||||||||
Total consumer | ||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
Sep 30, 2021 | Dec 31, 2020 | |||||||||||||
($ in Thousands) | Performing Restructured Loans | Nonaccrual Restructured Loans(a) | Performing Restructured Loans | Nonaccrual Restructured Loans(a) | ||||||||||
Commercial and industrial | $ | $ | $ | $ | ||||||||||
Commercial real estate — owner occupied | ||||||||||||||
Commercial real estate — investor | ||||||||||||||
Real estate construction | ||||||||||||||
Residential mortgage | ||||||||||||||
Home equity | ||||||||||||||
Other consumer | ||||||||||||||
Total restructured loans(b) | $ | $ | $ | $ |
Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | |||||||||||||||||||
($ in Thousands) | Number of Loans | Recorded Investment(a) | Unpaid Principal Balance(b) | Number of Loans | Recorded Investment(a) | Unpaid Principal Balance(b) | ||||||||||||||
Commercial and industrial | $ | $ | $ | $ | ||||||||||||||||
Commercial real estate — owner occupied | ||||||||||||||||||||
Commercial real estate — investor | ||||||||||||||||||||
Real estate construction | ||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||
Home equity | ||||||||||||||||||||
Total loans modified | $ | $ | $ | $ |
Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | |||||||||||||
($ in Thousands) | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||
Residential mortgage | $ | $ | ||||||||||||
Home equity | ||||||||||||||
Total loans modified | $ | $ |
($ in Thousands) | Dec 31, 2020 | Charge offs | Recoveries | Net Charge offs | Provision for credit losses | Sep 30, 2021 | ACLL / Loans | ||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||
PPP | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||
Commercial and industrial | ( | ( | ( | ||||||||||||||||||||
Commercial real estate — owner occupied | |||||||||||||||||||||||
Commercial and business lending | ( | ( | ( | ||||||||||||||||||||
Commercial real estate — investor | ( | ( | ( | ||||||||||||||||||||
Real estate construction | ( | ( | |||||||||||||||||||||
Commercial real estate lending | ( | ( | ( | ||||||||||||||||||||
Total commercial | ( | ( | ( | ||||||||||||||||||||
Residential mortgage | ( | ( | ( | ||||||||||||||||||||
Home equity | ( | ( | |||||||||||||||||||||
Other consumer | ( | ( | ( | ||||||||||||||||||||
Auto | ( | ( | |||||||||||||||||||||
Total consumer | ( | ( | |||||||||||||||||||||
Total loans | $ | $ | ( | $ | $ | ( | $ | ( | $ | ||||||||||||||
Allowance for unfunded commitments | |||||||||||||||||||||||
Commercial and industrial | $ | $ | — | $ | — | $ | — | $ | ( | $ | |||||||||||||
Commercial real estate — owner occupied | — | — | — | ||||||||||||||||||||
Commercial and business lending | — | — | — | ( | |||||||||||||||||||
Commercial real estate — investor | — | — | — | ||||||||||||||||||||
Real estate construction | — | — | — | ( | |||||||||||||||||||
Commercial real estate lending | — | — | — | ( | |||||||||||||||||||
Total commercial | — | — | — | ( | |||||||||||||||||||
Home equity | — | — | — | ( | |||||||||||||||||||
Other consumer | — | — | — | ( | |||||||||||||||||||
Total consumer | — | — | — | ( | |||||||||||||||||||
Total loans | $ | $ | — | $ | — | $ | — | $ | ( | $ | |||||||||||||
Allowance for credit losses on loans | |||||||||||||||||||||||
PPP | $ | $ | $ | $ | $ | ( | $ | % | |||||||||||||||
Commercial and industrial | ( | ( | ( | % | |||||||||||||||||||
Commercial real estate — owner occupied | % | ||||||||||||||||||||||
Commercial and business lending | ( | ( | ( | % | |||||||||||||||||||
Commercial real estate — investor | ( | ( | ( | % | |||||||||||||||||||
Real estate construction | ( | ( | % | ||||||||||||||||||||
Commercial real estate lending | ( | ( | ( | % | |||||||||||||||||||
Total commercial | ( | ( | ( | % | |||||||||||||||||||
Residential mortgage | ( | ( | ( | % | |||||||||||||||||||
Home equity | ( | ( | % | ||||||||||||||||||||
Other consumer | ( | ( | ( | % | |||||||||||||||||||
Auto | ( | ( | % | ||||||||||||||||||||
Total consumer | ( | ( | % | ||||||||||||||||||||
Total loans | $ | $ | ( | $ | $ | ( | $ | ( | $ | % |
($ in Thousands) | Dec 31, 2019 | Cumulative effect of ASU 2016-13 adoption (CECL) | Jan 1, 2020 | Charge offs | Recoveries | Net Charge offs | Gross up of allowance for PCD loans at acquisition | Provision recorded at acquisition | Provision for credit losses | Dec 31, 2020 | ACLL / Loans | ||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||
PPP | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Commercial and industrial | ( | ( | |||||||||||||||||||||||||||||||||
Commercial real estate — owner occupied | ( | ( | ( | ||||||||||||||||||||||||||||||||
Commercial and business lending | ( | ( | |||||||||||||||||||||||||||||||||
Commercial real estate — investor | ( | ( | |||||||||||||||||||||||||||||||||
Real estate construction | ( | ||||||||||||||||||||||||||||||||||
Commercial real estate lending | ( | ( | |||||||||||||||||||||||||||||||||
Total commercial | ( | ( | |||||||||||||||||||||||||||||||||
Residential mortgage | ( | ( | ( | ||||||||||||||||||||||||||||||||
Home equity | ( | ( | |||||||||||||||||||||||||||||||||
Other consumer(a) | ( | ( | |||||||||||||||||||||||||||||||||
Total consumer | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||
Allowance for unfunded commitments | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | ( | $ | $ | — | $ | — | $ | — | $ | — | $ | $ | $ | ||||||||||||||||||||
Commercial real estate — owner occupied | — | — | — | — | |||||||||||||||||||||||||||||||
Commercial and business lending | ( | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial real estate — investor | — | — | — | — | ( | ||||||||||||||||||||||||||||||
Real estate construction | — | — | — | — | ( | ||||||||||||||||||||||||||||||
Commercial real estate lending | — | — | — | — | ( | ||||||||||||||||||||||||||||||
Total commercial | — | — | — | — | |||||||||||||||||||||||||||||||
Home equity | — | — | — | — | ( | ||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | |||||||||||||||||||||||||||||||
Total consumer | — | — | — | — | |||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | — | $ | — | $ | — | $ | — | $ | $ | $ | |||||||||||||||||||||
Allowance for credit losses on loans | |||||||||||||||||||||||||||||||||||
PPP | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | % | ||||||||||||||||||||||||
Commercial and industrial | ( | ( | % | ||||||||||||||||||||||||||||||||
Commercial real estate — owner occupied | ( | ( | ( | % | |||||||||||||||||||||||||||||||
Commercial and business lending | ( | ( | % | ||||||||||||||||||||||||||||||||
Commercial real estate — investor | ( | ( | % | ||||||||||||||||||||||||||||||||
Real estate construction | ( | % | |||||||||||||||||||||||||||||||||
Commercial real estate lending | ( | ( | % | ||||||||||||||||||||||||||||||||
Total commercial | ( | ( | % | ||||||||||||||||||||||||||||||||
Residential mortgage | ( | ( | ( | % | |||||||||||||||||||||||||||||||
Home equity | ( | ( | % | ||||||||||||||||||||||||||||||||
Other consumer(a) | ( | ( | % | ||||||||||||||||||||||||||||||||
Total consumer | ( | ( | ( | % | |||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | % |
($ in Thousands) | Nine months ended Sep 30, 2021 | Year Ended Dec 31, 2020 | ||||||
Core deposit intangibles | ||||||||
Gross carrying amount at the beginning of period | $ | $ | ||||||
Additions during the period | ||||||||
Accumulated amortization | ( | ( | ||||||
Net book value | $ | $ | ||||||
Amortization during the period | $ | $ | ||||||
Other intangibles | ||||||||
Gross carrying amount at the beginning of period | $ | $ | ||||||
Additions during the period | ||||||||
Reductions due to sale | ( | ( | ||||||
Accumulated amortization | ( | ( | ||||||
Net book value | $ | $ | ||||||
Amortization during the period | $ | $ |
($ in Thousands) | Nine months ended Sep 30, 2021 | Year Ended Dec 31, 2020 | ||||||
Mortgage servicing rights | ||||||||
Mortgage servicing rights at beginning of period | $ | $ | ||||||
Additions from acquisition | ||||||||
Additions | ||||||||
Amortization | ( | ( | ||||||
Mortgage servicing rights at end of period | $ | $ | ||||||
Valuation allowance at beginning of period | $ | ( | $ | ( | ||||
(Additions) recoveries, net | ( | |||||||
Valuation allowance at end of period | $ | ( | $ | ( | ||||
Mortgage servicing rights, net | $ | $ | ||||||
Fair value of mortgage servicing rights | $ | $ | ||||||
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ | $ | ||||||
Mortgage servicing rights, net to servicing portfolio | % | % | ||||||
Mortgage servicing rights expense(a) | $ | $ |
($ in Thousands) | Core Deposit Intangibles | Mortgage Servicing Rights | ||||||
Three Months Ending December 31, 2021 | $ | $ | ||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
Beyond 2026 | ||||||||
Total Estimated Amortization Expense | $ | $ |
($ in Thousands) | Sep 30, 2021 | Dec 31, 2020 | ||||||
Short-Term Funding | ||||||||
Federal funds purchased | $ | $ | ||||||
Securities sold under agreements to repurchase | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | ||||||||
Commercial paper | ||||||||
Total short-term funding | $ | $ | ||||||
Long-Term Funding | ||||||||
Bank senior notes, at par, due 2021 | $ | $ | ||||||
Corporation subordinated notes, at par, due 2025 | ||||||||
Finance leases | ||||||||
Capitalized costs | ( | ( | ||||||
FHLB advances | ||||||||
Total long-term funding | ||||||||
Total short and long-term funding | $ | $ |
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||
($ in Thousands) | Overnight and Continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | ||||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||
Agency mortgage-related securities | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||
Agency mortgage-related securities | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Sep 30, 2021 | Dec 31, 2020 | |||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||
($ in Thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||
Not designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate-related instruments | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Foreign currency exchange forwards | ||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||
Mortgage banking(a)(b) | ||||||||||||||||||||||||||
Gross derivatives before netting | $ | $ | $ | $ | ||||||||||||||||||||||
Less: Legally enforceable master netting agreements | ||||||||||||||||||||||||||
Less: Cash collateral pledged/received | ||||||||||||||||||||||||||
Total derivative instruments, after netting | $ | $ | $ | $ |
Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships | ||||||||||||||||||||||||||
Three months ended Sep 30, | Nine months ended Sep 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
($ in Thousands) | Interest Income | Other Income (Expense) | Interest Income | Other Income (Expense) | Interest Income | Other Income (Expense) | Interest Income | Other Income (Expense) | ||||||||||||||||||
Total amounts of income and expense line items presented on the consolidated statements of income in which the effects of the fair value hedge is recorded | $ | ( | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( | |||||||||||||
The effects of fair value hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | ||||||||||||||||||||||||||
Interest contracts | ||||||||||||||||||||||||||
Hedged items | ( | ( | ( | ( | ( | |||||||||||||||||||||
Consolidated Statements of Income Category of Gain / (Loss) Recognized in Income | Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Derivative Instruments | |||||||||||||||||
Interest rate-related instruments — customer and mirror, net | Capital markets, net | $ | $ | $ | $ | ( | |||||||||||
Foreign currency exchange forwards | Capital markets, net | ( | ( | ||||||||||||||
Commodity contracts | Capital markets, net | ( | ( | ( | |||||||||||||
Interest rate lock commitments (mortgage) | Mortgage banking, net | ( | ( | ( | |||||||||||||
Forward commitments (mortgage) | Mortgage banking, net | ( | ( |
Gross Amounts Recognized | Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets | Net Amounts Presented on the Consolidated Balance Sheets | ||||||||||||
($ in Thousands) | Derivative Liabilities Offset | Cash Collateral Received | ||||||||||||
Derivative assets | ||||||||||||||
September 30, 2021 | $ | $ | ( | $ | ( | $ | ||||||||
December 31, 2020 | ( | ( | ||||||||||||
Gross Amounts Recognized | Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets | Net Amounts Presented on the Consolidated Balance Sheets | ||||||||||||
($ in Thousands) | Derivative Assets Offset | Cash Collateral Pledged | ||||||||||||
Derivative liabilities | ||||||||||||||
September 30, 2021 | $ | $ | ( | $ | ( | $ | ||||||||
December 31, 2020 | ( | ( | ||||||||||||
($ in Thousands) | Sep 30, 2021 | Dec 31, 2020 | ||||||
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b) | $ | $ | ||||||
Commercial letters of credit(a) | ||||||||
Standby letters of credit(c) |
($ in Thousands) | Nine months ended Sep 30, 2021 | Year Ended Dec 31, 2020 | ||||||
Allowance for Unfunded Commitments | ||||||||
Balance at beginning of period | $ | $ | ||||||
Cumulative effect of ASU 2016-13 adoption (CECL) | N/A | |||||||
Balance at beginning of period, adjusted | ||||||||
Provision for unfunded commitments | ( | |||||||
Amount recorded at acquisition | N/A | |||||||
Balance at end of period | $ | $ |
($ in Thousands) | Fair Value Hierarchy | Sep 30, 2021 | Dec 31, 2020 | ||||||||
Assets | |||||||||||
Investment securities AFS | |||||||||||
U.S. Treasury securities | Level 1 | $ | $ | ||||||||
Agency securities | Level 2 | ||||||||||
Obligations of state and political subdivisions (municipal securities) | Level 2 | ||||||||||
Residential mortgage-related securities | |||||||||||
FNMA / FHLMC | Level 2 | ||||||||||
GNMA | Level 2 | ||||||||||
Private-label | Level 2 | ||||||||||
Commercial mortgage-related securities | |||||||||||
FNMA / FHLMC | Level 2 | ||||||||||
GNMA | Level 2 | ||||||||||
Asset backed securities | |||||||||||
FFELP | Level 2 | ||||||||||
SBA | Level 2 | ||||||||||
Other debt securities | Level 2 | ||||||||||
Total investment securities AFS | Level 1 | $ | $ | ||||||||
Total investment securities AFS | Level 2 | ||||||||||
Equity securities with readily determinable fair values | Level 1 | ||||||||||
Residential loans held for sale | Level 2 | ||||||||||
Interest rate-related instruments(a) | Level 2 | ||||||||||
Foreign currency exchange forwards(a) | Level 2 | ||||||||||
Commodity contracts(a) | Level 2 | ||||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale | Level 3 | ||||||||||
Forward commitments to sell residential mortgage loans | Level 3 | ||||||||||
Liabilities | |||||||||||
Interest rate-related instruments(a) | Level 2 | $ | $ | ||||||||
Foreign currency exchange forwards(a) | Level 2 | ||||||||||
Commodity contracts(a) | Level 2 | ||||||||||
Forward commitments to sell residential mortgage loans | Level 3 |
($ in Thousands) | Interest rate lock commitments to originate residential mortgage loans held for sale | Forward commitments to sell residential mortgage loans | Total | ||||||||
Balance December 31, 2019 | $ | $ | $ | ||||||||
New production | ( | ||||||||||
Closed loans / settlements | ( | ( | ( | ||||||||
Other | ( | ||||||||||
Mortgage derivative gain (loss) | |||||||||||
Balance December 31, 2020 | $ | $ | $ | ||||||||
New production | $ | $ | ( | $ | |||||||
Closed loans / settlements | ( | ( | |||||||||
Other | ( | ( | ( | ||||||||
Mortgage derivative gain (loss) | ( | ( | ( | ||||||||
Balance September 30, 2021 | $ | $ | ( | $ |
($ in Thousands) | |||||
Equity securities without readily determinable fair values | |||||
Carrying value as of December 31, 2020 | $ | ||||
Additions | |||||
Sales | ( | ||||
Donations | ( | ||||
Carrying value as of September 30, 2021 | $ | ||||
Cumulative upward carrying value changes between January 1, 2018 and September 30, 2021 | $ | ||||
Cumulative downward carrying value changes/impairment between January 1, 2018 and September 30, 2021 | $ |
Consolidated Statements of Income Category of Adjustment Recognized in Income | ||||||||||||||
($ in Thousands) | Fair Value Hierarchy | Fair Value | Adjustment Recognized on the Consolidated Statements of Income(c) | |||||||||||
September 30, 2021 | ||||||||||||||
Assets | ||||||||||||||
Individually evaluated loans(a) | Level 3 | $ | Provision for credit losses | $ | ( | |||||||||
OREO(b) | Level 2 | Other noninterest expense / provision for credit losses(d) | ||||||||||||
Mortgage servicing rights | Level 3 | Mortgage banking, net | ||||||||||||
December 31, 2020 | ||||||||||||||
Assets | ||||||||||||||
Individually evaluated loans(a) | Level 3 | $ | Provision for credit losses | $ | ||||||||||
OREO(b) | Level 2 | Other noninterest expense | ||||||||||||
Mortgage servicing rights | Level 3 | Mortgage banking, net | ( | |||||||||||
September 30, 2021 | Valuation Technique | Significant Unobservable Input | Range of Inputs | Weighted Average Input Applied | ||||||||||||||||
Mortgage servicing rights | Discounted cash flow | Discount rate | - | |||||||||||||||||
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | - | |||||||||||||||||
Individually evaluated loans | Appraisals / Discounted cash flow | Collateral / Discount factor | - |
Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||
($ in Thousands) | Fair Value Hierarchy Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | Level 1 | $ | $ | $ | $ | ||||||||||||
Interest-bearing deposits in other financial institutions | Level 1 | ||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | Level 1 | ||||||||||||||||
Investment securities AFS | Level 1 | ||||||||||||||||
Investment securities AFS | Level 2 | ||||||||||||||||
Investment securities HTM, net | Level 1 | ||||||||||||||||
Investment securities HTM, net | Level 2 | ||||||||||||||||
Equity securities with readily determinable fair values | Level 1 | ||||||||||||||||
Equity securities without readily determinable fair values | Level 3 | ||||||||||||||||
FHLB and Federal Reserve Bank stocks | Level 2 | ||||||||||||||||
Residential loans held for sale | Level 2 | ||||||||||||||||
Loans, net | Level 3 | ||||||||||||||||
Bank and corporate owned life insurance | Level 2 | ||||||||||||||||
Derivatives (other assets)(a) | Level 2 | ||||||||||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets) | Level 3 | ||||||||||||||||
Forward commitments to sell residential mortgage loans (other assets) | Level 3 | ||||||||||||||||
Financial liabilities | |||||||||||||||||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts | Level 3 | $ | $ | $ | $ | ||||||||||||
Brokered CDs and other time deposits(b) | Level 2 | ||||||||||||||||
Short-term funding | Level 2 | ||||||||||||||||
FHLB advances | Level 2 | ||||||||||||||||
Other long-term funding | Level 2 | ||||||||||||||||
Standby letters of credit(c) | Level 2 | ||||||||||||||||
Derivatives (accrued expenses and other liabilities)(a) | Level 2 | ||||||||||||||||
Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities) | Level 3 | ||||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||
RAP | ||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||
Interest cost | ||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||
Amortization of prior service cost | ( | ( | ( | ( | ||||||||||
Amortization of actuarial loss (gain) | ||||||||||||||
Total net periodic pension cost | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Postretirement Plan | ||||||||||||||
Interest cost | $ | $ | $ | $ | ||||||||||
Amortization of prior service cost | ( | ( | ( | ( | ||||||||||
Total net periodic benefit cost | $ | ( | $ | $ | ( | $ |
Corporate and Commercial Specialty | ||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net interest income | $ | $ | $ | $ | ||||||||||
Net intersegment interest income (expense) | ||||||||||||||
Segment net interest income | ||||||||||||||
Noninterest income(a) | ||||||||||||||
Total revenue | ||||||||||||||
Provision for credit losses | ||||||||||||||
Noninterest expense | ||||||||||||||
Income (loss) before income taxes | ||||||||||||||
Income tax expense (benefit) | ||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Allocated goodwill | $ | $ |
Community, Consumer, and Business | ||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net interest income | $ | $ | $ | $ | ||||||||||
Net intersegment interest income (expense) | ||||||||||||||
Segment net interest income | ||||||||||||||
Noninterest income | ||||||||||||||
Total revenue | ||||||||||||||
Provision for credit losses | ||||||||||||||
Noninterest expense | ||||||||||||||
Income (loss) before income taxes | ||||||||||||||
Income tax expense (benefit) | ||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Allocated goodwill | $ | $ | ||||||||||||
Risk Management and Shared Services | ||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net interest income | $ | $ | $ | $ | ||||||||||
Net intersegment interest income (expense) | ( | ( | ( | ( | ||||||||||
Segment net interest income | ( | |||||||||||||
Noninterest income(b) | ||||||||||||||
Total revenue | ||||||||||||||
Provision for credit losses | ( | ( | ||||||||||||
Noninterest expense | ||||||||||||||
Income (loss) before income taxes | ( | ( | ||||||||||||
Income tax expense (benefit) | ( | ( | ||||||||||||
Net income | $ | $ | ( | $ | $ | |||||||||
Allocated goodwill | $ | $ |
Consolidated Total | ||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net interest income | $ | $ | $ | $ | ||||||||||
Net intersegment interest income (expense) | ||||||||||||||
Segment net interest income | ||||||||||||||
Noninterest income(a)(b) | ||||||||||||||
Total revenue | ||||||||||||||
Provision for credit losses | ( | ( | ||||||||||||
Noninterest expense | ||||||||||||||
Income (loss) before income taxes | ( | |||||||||||||
Income tax expense (benefit) | ( | |||||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Allocated goodwill | $ | $ |
($ in Thousands) | Investment Securities AFS | Defined Benefit Pension and Postretirement Obligations | Accumulated Other Comprehensive Income (Loss) | ||||||||
Balance December 31, 2020 | $ | $ | ( | $ | |||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Investment securities losses (gains), net | |||||||||||
Personnel expense | ( | ( | |||||||||
Other expense | |||||||||||
Interest income | |||||||||||
Income tax (expense) benefit | ( | ||||||||||
Net other comprehensive income (loss) during period | ( | ( | |||||||||
Balance September 30, 2021 | $ | $ | ( | $ | ( | ||||||
Balance December 31, 2019 | $ | $ | ( | $ | ( | ||||||
Other comprehensive income (loss) before reclassifications | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Investment securities losses (gains), net | ( | ( | |||||||||
Personnel expense | ( | ( | |||||||||
Other expense | |||||||||||
Interest income | |||||||||||
Income tax (expense) benefit | ( | ( | ( | ||||||||
Net other comprehensive income (loss) during period | |||||||||||
Balance September 30, 2020 | $ | $ | ( | $ | |||||||
($ in Thousands) | Investments Securities AFS | Defined Benefit Pension and Post Retirement Obligations | Accumulated Other Comprehensive Income (Loss) | ||||||||
Balance June 30, 2021 | $ | $ | ( | $ | |||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Investment securities losses (gains), net | |||||||||||
Personnel expense | ( | ( | |||||||||
Other expense | |||||||||||
Interest income | |||||||||||
Income tax (expense) benefit | ( | ||||||||||
Net other comprehensive income (loss) during period | ( | ( | |||||||||
Balance September 30, 2021 | $ | $ | ( | $ | ( | ||||||
Balance June 30, 2020 | $ | $ | ( | $ | ( | ||||||
Other comprehensive income (loss) before reclassifications | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Investment securities losses (gains), net | ( | ( | |||||||||
Personnel expense | ( | ( | |||||||||
Other expense | |||||||||||
Interest income | |||||||||||
Income tax (expense) benefit | ( | ( | ( | ||||||||
Net other comprehensive income (loss) during period | |||||||||||
Balance September 30, 2020 | $ | $ | ( | $ | |||||||
Corporate and Commercial Specialty | ||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Wealth management fees | $ | $ | $ | $ | ||||||||||
Service charges and deposit account fees | ||||||||||||||
Card-based fees(a) | ||||||||||||||
Insurance commissions and fees | ||||||||||||||
Other revenue | ||||||||||||||
Noninterest income (in-scope of Topic 606) | $ | $ | $ | $ | ||||||||||
Noninterest income (out-of-scope of Topic 606)(b) | ||||||||||||||
Total noninterest income | $ | $ | $ | $ | ||||||||||
Community, Consumer, and Business | ||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Wealth management fees | $ | $ | $ | $ | ||||||||||
Service charges and deposit account fees | ||||||||||||||
Card-based fees(a) | ||||||||||||||
Insurance commissions and fees | ||||||||||||||
Other revenue | ||||||||||||||
Noninterest income (in-scope of Topic 606) | $ | $ | $ | $ | ||||||||||
Noninterest income (out-of-scope of Topic 606) | ||||||||||||||
Total noninterest income | $ | $ | $ | $ |
Risk Management and Shared Services | ||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Service charges and deposit account fees | $ | $ | $ | $ | ||||||||||
Card-based fees(a) | ||||||||||||||
Insurance commissions and fees | ||||||||||||||
Other revenue | ( | ( | ||||||||||||
Noninterest income (in-scope of Topic 606) | $ | $ | ( | $ | $ | |||||||||
Noninterest income (out-of-scope of Topic 606)(c) | ||||||||||||||
Total noninterest income | $ | $ | $ | $ | ||||||||||
Consolidated Total | ||||||||||||||
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Wealth management fees | $ | $ | $ | $ | ||||||||||
Service charges and deposit account fees | ||||||||||||||
Card-based fees(a) | ||||||||||||||
Insurance commissions and fees | ||||||||||||||
Other revenue | ||||||||||||||
Noninterest income (in-scope of Topic 606) | $ | $ | $ | $ | ||||||||||
Noninterest income (out-of-scope of Topic 606)(b)(c) | ||||||||||||||
Total noninterest income | $ | $ | $ | $ |
Revenue Stream | Noninterest income in-scope of Topic 606 | |||||||
Service charges and deposit account fees | Service charges and deposit account fees consist of monthly service fees (i.e. business analyzed fees and consumer service charges) and other deposit account related fees. The Corporation's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges and deposit account fees is primarily received immediately or in the following month through a direct charge to customers’ accounts. | |||||||
Card-based fees(a) | Card-based fees are primarily comprised of debit and credit card income, ATM fees, and merchant services income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Corporation's debit and credit cards are processed through card payment networks. ATM and merchant fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment is typically received immediately or in the following month. | |||||||
Trust and asset management fees(b) | Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Corporation's performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to the customers’ accounts. The Corporation's performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. | |||||||
Brokerage and advisory fees(b) | Brokerage and advisory fees primarily consist of investment advisory, brokerage, retirement services, and annuities. The Corporation's performance obligation for investment advisory services and retirement services is generally satisfied, and the related revenue recognized, over the period in which the services are provided. The performance obligation for annuities is satisfied upon sale of the annuity, and therefore, the related revenue is primarily recognized at the time of sale. Payment for these services are typically received immediately or in advance of the service. |
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||
($ in Thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Operating lease costs | $ | $ | $ | $ | ||||||||||
Finance lease costs | ||||||||||||||
Operating lease cash flows | ||||||||||||||
Finance lease cash flows |
($ in Thousands) | Consolidated Balance Sheets Category | Sep 30, 2021 | Dec 31, 2020 | ||||||||
Operating lease right-of-use asset | Premises and equipment | $ | $ | ||||||||
Finance lease right-of-use asset | Other assets | ||||||||||
Operating lease liability | Accrued expenses and other liabilities | ||||||||||
Finance lease liability | Other long-term funding |
Sep 30, 2021 | Dec 31, 2020 | |||||||||||||||||||
($ in Thousands) | Lease payments | Weighted-average lease term (in years) | Weighted-average discount rate | Lease payments | Weighted-average lease term (in years) | Weighted-average discount rate | ||||||||||||||
Operating leases | ||||||||||||||||||||
Equipment | $ | % | $ | % | ||||||||||||||||
Retail and corporate offices | % | % | ||||||||||||||||||
Land | % | % | ||||||||||||||||||
Total operating leases | $ | % | $ | % | ||||||||||||||||
Finance leases | ||||||||||||||||||||
Land | $ | % | $ | % | ||||||||||||||||
Total finance leases | $ | % | $ | % |
($ in Thousands) | Operating Leases | Finance Leases | Total Leases | ||||||||
Three Months Ending December 31, 2021 | $ | $ | $ | ||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
Beyond 2025 | |||||||||||
Total lease payments | $ | $ | $ | ||||||||
Less: interest | |||||||||||
Present value of lease payments | $ | $ | $ |
ITEM 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Nine months ended | Three months ended | |||||||||||||||||||||||||
($ in Thousands, except per share data) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||||||
Net income | $ | 274,117 | $ | 239,769 | $ | 88,809 | $ | 91,007 | $ | 94,301 | $ | 67,002 | $ | 45,214 | ||||||||||||
Net income available to common equity | 259,880 | 226,618 | 84,655 | 86,131 | 89,094 | 61,795 | 40,007 | |||||||||||||||||||
Earnings per common share - basic | 1.70 | 1.47 | 0.56 | 0.56 | 0.58 | 0.40 | 0.26 | |||||||||||||||||||
Earnings per common share - diluted | 1.69 | 1.46 | 0.56 | 0.56 | 0.58 | 0.40 | 0.26 | |||||||||||||||||||
Effective tax rate | 20.37 | % | 1.37 | % | 20.61 | % | 19.81 | % | 20.69 | % | 20.10 | % | N/M |
Nine months ended Sep 30, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
($ in Thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||
Assets | ||||||||||||||||||||
Earning assets | ||||||||||||||||||||
Loans(a)(b)(c) | ||||||||||||||||||||
Commercial PPP lending | $ | 592,571 | $ | 28,582 | 6.45 | % | $ | 624,305 | $ | 11,012 | 2.36 | % | ||||||||
Commercial and business lending (excl PPP loans) | 8,561,822 | 162,075 | 2.53 | % | 8,774,616 | 201,265 | 3.06 | % | ||||||||||||
Commercial real estate lending | 6,163,684 | 133,314 | 2.89 | % | 5,695,281 | 147,909 | 3.47 | % | ||||||||||||
Total commercial | 15,318,077 | 323,971 | 2.83 | % | 15,094,201 | 360,187 | 3.19 | % | ||||||||||||
Residential mortgage | 7,879,992 | 166,146 | 2.81 | % | 8,244,116 | 194,521 | 3.15 | % | ||||||||||||
Retail | 948,449 | 33,947 | 4.78 | % | 1,150,916 | 45,621 | 5.29 | % | ||||||||||||
Total loans | 24,146,518 | 524,065 | 2.90 | % | 24,489,234 | 600,329 | 3.27 | % | ||||||||||||
Investment securities | ||||||||||||||||||||
Taxable | 3,152,994 | 24,600 | 1.04 | % | 3,343,083 | 50,064 | 2.00 | % | ||||||||||||
Tax-exempt(a) | 1,961,528 | 54,357 | 3.69 | % | 1,939,968 | 55,026 | 3.78 | % | ||||||||||||
Other short-term investments | 1,662,571 | 5,802 | 0.47 | % | 1,095,555 | 7,774 | 0.95 | % | ||||||||||||
Investments and other | 6,777,093 | 84,759 | 1.67 | % | 6,378,606 | 112,864 | 2.36 | % | ||||||||||||
Total earning assets | 30,923,610 | $ | 608,824 | 2.63 | % | 30,867,840 | $ | 713,193 | 3.08 | % | ||||||||||
Other assets, net | 3,354,657 | 3,460,967 | ||||||||||||||||||
Total assets | $ | 34,278,268 | $ | 34,328,806 | ||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||
Savings | $ | 4,061,728 | $ | 1,066 | 0.04 | % | $ | 3,198,244 | $ | 2,610 | 0.11 | % | ||||||||
Interest-bearing demand | 5,981,295 | 3,596 | 0.08 | % | 5,530,482 | 11,281 | 0.27 | % | ||||||||||||
Money market | 6,956,591 | 3,101 | 0.06 | % | 6,499,965 | 14,152 | 0.29 | % | ||||||||||||
Network transaction deposits | 960,308 | 880 | 0.12 | % | 1,502,449 | 5,750 | 0.51 | % | ||||||||||||
Time deposits | 1,533,466 | 6,302 | 0.55 | % | 2,412,985 | 26,083 | 1.44 | % | ||||||||||||
Total interest-bearing deposits | 19,493,387 | 14,945 | 0.10 | % | 19,144,126 | 59,877 | 0.42 | % | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 177,875 | 103 | 0.08 | % | 179,615 | 454 | 0.34 | % | ||||||||||||
Commercial paper | 51,330 | 21 | 0.05 | % | 38,064 | 35 | 0.12 | % | ||||||||||||
PPPLF | — | — | — | % | 599,368 | 1,574 | 0.35 | % | ||||||||||||
Other short-term funding | — | — | — | % | 5,645 | 11 | 0.25 | % | ||||||||||||
FHLB advances | 1,624,320 | 27,979 | 2.30 | % | 2,829,680 | 47,471 | 2.24 | % | ||||||||||||
Long-term funding | 461,390 | 14,323 | 4.14 | % | 549,088 | 16,780 | 4.07 | % | ||||||||||||
Total short and long-term funding | 2,314,915 | 42,425 | 2.45 | % | 4,201,461 | 66,325 | 2.11 | % | ||||||||||||
Total interest-bearing liabilities | 21,808,303 | $ | 57,371 | 0.35 | % | 23,345,586 | $ | 126,201 | 0.72 | % | ||||||||||
Noninterest-bearing demand deposits | 7,961,119 | 6,618,058 | ||||||||||||||||||
Other liabilities | 403,925 | 457,195 | ||||||||||||||||||
Stockholders’ equity | 4,104,921 | 3,907,966 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 34,278,268 | $ | 34,328,806 | ||||||||||||||||
Interest rate spread | 2.28 | % | 2.36 | % | ||||||||||||||||
Net free funds | 0.10 | % | 0.18 | % | ||||||||||||||||
Fully tax-equivalent net interest income and net interest margin ("NIM") | $ | 551,453 | 2.38 | % | $ | 586,992 | 2.54 | % | ||||||||||||
Fully tax-equivalent adjustment | 12,362 | 12,028 | ||||||||||||||||||
Net interest income | $ | 539,092 | $ | 574,964 |
Three Months Ended | |||||||||||||||||||||||||||||
Sep 30, 2021 | Jun 30, 2021 | Sep 30, 2020 | |||||||||||||||||||||||||||
($ in Thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||
Loans(a)(b)(c) | |||||||||||||||||||||||||||||
Commercial PPP lending | $ | 275,414 | $ | 9,633 | 13.88 | % | $ | 701,440 | $ | 10,048 | 5.75 | % | $ | 1,019,808 | $ | 6,172 | 2.41 | % | |||||||||||
Commercial and business lending (excl PPP loans) | 8,708,659 | 54,099 | 2.47 | % | 8,437,624 | 53,886 | 2.56 | % | 8,751,083 | 56,951 | 2.59 | % | |||||||||||||||||
Commercial real estate lending | 6,160,241 | 44,859 | 2.89 | % | 6,159,728 | 44,139 | 2.87 | % | 6,032,308 | 44,354 | 2.93 | % | |||||||||||||||||
Total commercial | 15,144,314 | 108,591 | 2.85 | % | 15,298,792 | 108,073 | 2.83 | % | 15,803,199 | 107,476 | 2.71 | % | |||||||||||||||||
Residential mortgage | 7,817,737 | 55,305 | 2.83 | % | 7,861,139 | 55,337 | 2.82 | % | 8,058,283 | 61,701 | 3.06 | % | |||||||||||||||||
Retail | 921,906 | 11,120 | 4.81 | % | 938,682 | 11,197 | 4.78 | % | 1,101,589 | 13,780 | 4.99 | % | |||||||||||||||||
Total loans | 23,883,957 | 175,016 | 2.92 | % | 24,098,614 | 174,607 | 2.90 | % | 24,963,071 | 182,957 | 2.92 | % | |||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Taxable | 3,258,587 | 8,745 | 1.07 | % | 3,220,825 | 8,840 | 1.10 | % | 3,438,858 | 13,689 | 1.59 | % | |||||||||||||||||
Tax-exempt(a) | 2,029,126 | 18,412 | 3.63 | % | 1,953,696 | 18,101 | 3.71 | % | 1,923,445 | 18,154 | 3.78 | % | |||||||||||||||||
Other short-term investments | 2,215,805 | 2,281 | 0.41 | % | 1,766,615 | 1,826 | 0.41 | % | 1,788,471 | 2,238 | 0.50 | % | |||||||||||||||||
Investments and other | 7,503,518 | 29,439 | 1.57 | % | 6,941,135 | 28,767 | 1.66 | % | 7,150,775 | 34,081 | 1.90 | % | |||||||||||||||||
Total earning assets | 31,387,475 | $ | 204,455 | 2.59 | % | 31,039,749 | $ | 203,375 | 2.62 | % | 32,113,847 | $ | 217,038 | 2.70 | % | ||||||||||||||
Other assets, net | 3,372,013 | 3,339,898 | 3,436,512 | ||||||||||||||||||||||||||
Total assets | $ | 34,759,489 | $ | 34,379,647 | $ | 35,550,359 | |||||||||||||||||||||||
Liabilities and Stockholders' equity | |||||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||
Interest-bearing deposits | |||||||||||||||||||||||||||||
Savings | $ | 4,248,493 | $ | 377 | 0.04 | % | $ | 4,121,553 | $ | 357 | 0.03 | % | $ | 3,462,942 | $ | 382 | 0.04 | % | |||||||||||
Interest-bearing demand | 6,344,504 | 1,361 | 0.09 | % | 5,879,173 | 1,057 | 0.07 | % | 5,835,597 | 1,085 | 0.07 | % | |||||||||||||||||
Money market | 7,011,075 | 1,019 | 0.06 | % | 6,981,482 | 1,023 | 0.06 | % | 6,464,784 | 1,444 | 0.09 | % | |||||||||||||||||
Network transaction deposits | 893,991 | 290 | 0.13 | % | 908,869 | 264 | 0.12 | % | 1,528,199 | 609 | 0.16 | % | |||||||||||||||||
Time deposits | 1,434,588 | 1,379 | 0.38 | % | 1,509,705 | 1,909 | 0.51 | % | 2,135,870 | 6,513 | 1.21 | % | |||||||||||||||||
Total interest-bearing deposits | 19,932,650 | 4,427 | 0.09 | % | 19,400,781 | 4,609 | 0.10 | % | 19,427,392 | 10,033 | 0.21 | % | |||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 238,735 | 48 | 0.08 | % | 157,619 | 30 | 0.08 | % | 140,321 | 34 | 0.10 | % | |||||||||||||||||
Commercial paper | 55,864 | 8 | 0.05 | % | 55,209 | 7 | 0.05 | % | 42,338 | 5 | 0.05 | % | |||||||||||||||||
PPPLF | — | — | — | % | — | — | — | % | 1,018,994 | 899 | 0.35 | % | |||||||||||||||||
FHLB advances | 1,620,790 | 8,962 | 2.19 | % | 1,620,397 | 9,524 | 2.36 | % | 2,450,344 | 14,375 | 2.33 | % | |||||||||||||||||
Long-term funding | 288,236 | 3,163 | 4.39 | % | 549,222 | 5,575 | 4.06 | % | 549,042 | 5,580 | 4.06 | % | |||||||||||||||||
Total short and long-term funding | 2,203,625 | 12,180 | 2.20 | % | 2,382,446 | 15,136 | 2.55 | % | 4,201,039 | 20,892 | 1.98 | % | |||||||||||||||||
Total interest-bearing liabilities | 22,136,276 | $ | 16,607 | 0.30 | % | 21,783,227 | $ | 19,745 | 0.36 | % | 23,628,431 | $ | 30,925 | 0.52 | % | ||||||||||||||
Noninterest-bearing demand deposits | 8,141,723 | 8,069,851 | 7,412,186 | ||||||||||||||||||||||||||
Other liabilities | 401,077 | 395,950 | 475,310 | ||||||||||||||||||||||||||
Stockholders’ Equity | 4,080,413 | 4,130,618 | 4,034,432 | ||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 34,759,489 | $ | 34,379,647 | $ | 35,550,359 | |||||||||||||||||||||||
Interest rate spread | 2.29 | % | 2.26 | % | 2.18 | % | |||||||||||||||||||||||
Net free funds | 0.09 | % | 0.11 | % | 0.13 | % | |||||||||||||||||||||||
Fully tax-equivalent net interest income and net interest margin ("NIM") | $ | 187,848 | 2.38 | % | $ | 183,629 | 2.37 | % | $ | 186,112 | 2.31 | % | |||||||||||||||||
Fully tax-equivalent adjustment | 4,172 | 4,115 | 3,963 | ||||||||||||||||||||||||||
Net interest income | $ | 183,675 | $ | 179,515 | $ | 182,150 |
Nine months ended | Three months ended | Changes vs | ||||||||||||||||||||||||||||||
($ in Thousands, except as noted) | Sep 30, 2021 | Sep 30, 2020 | YTD % Change | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2021 | Sep 30, 2020 | ||||||||||||||||||||||
Wealth management fees | $ | 67,229 | $ | 62,884 | 7 | % | $ | 22,110 | $ | 22,706 | $ | 22,414 | $ | 22,073 | $ | 21,152 | (3) | % | 5 | % | ||||||||||||
Service charges and deposit account fees | 47,366 | 40,989 | 16 | % | 16,962 | 15,549 | 14,855 | 15,318 | 14,283 | 9 | % | 19 | % | |||||||||||||||||||
Card-based fees | 31,838 | 28,685 | 11 | % | 11,113 | 10,982 | 9,743 | 9,848 | 10,195 | 1 | % | 9 | % | |||||||||||||||||||
Other fee-based revenue | 12,769 | 14,240 | (10) | % | 3,929 | 4,244 | 4,596 | 4,998 | 4,968 | (7) | % | (21) | % | |||||||||||||||||||
Total fee-based revenue | 159,203 | 146,798 | 8 | % | 54,113 | 53,480 | 51,608 | 52,237 | 50,598 | 1 | % | 7 | % | |||||||||||||||||||
Capital markets, net | 20,928 | 22,067 | (5) | % | 7,114 | 5,696 | 8,118 | 5,898 | 7,222 | 25 | % | (1) | % | |||||||||||||||||||
Mortgage servicing fees, net(a) | (1,230) | 324 | N/M | 323 | (155) | (1,397) | (973) | (957) | N/M | N/M | ||||||||||||||||||||||
Gains and fair value adjustments on loans held for sale | 31,709 | 45,267 | (30) | % | 8,341 | 8,623 | 14,744 | 14,733 | 14,536 | (3) | % | (43) | % | |||||||||||||||||||
Fair value adjustment on portfolio loans transferred to held for sale | — | 3,932 | (100) | % | — | — | — | — | 509 | N/M | (100) | % | ||||||||||||||||||||
Mortgage servicing rights (impairment) recovery | 12,231 | (18,481) | N/M | 1,993 | (340) | 10,578 | 776 | (1,451) | N/M | N/M | ||||||||||||||||||||||
Mortgage banking, net | 42,710 | 31,043 | 38 | % | 10,657 | 8,128 | 23,925 | 14,537 | 12,636 | 31 | % | (16) | % | |||||||||||||||||||
Bank and corporate owned life insurance | 8,551 | 9,793 | (13) | % | 2,760 | 3,088 | 2,702 | 3,978 | 3,074 | (11) | % | (10) | % | |||||||||||||||||||
Insurance commissions and fees | 250 | 45,153 | (99) | % | 88 | 86 | 76 | 92 | 114 | 2 | % | (23) | % | |||||||||||||||||||
Other | 8,176 | 7,321 | 12 | % | 2,116 | 2,918 | 3,141 | 2,879 | 2,232 | (27) | % | (5) | % | |||||||||||||||||||
Subtotal | 239,817 | 262,175 | (9) | % | 76,848 | 73,397 | 89,570 | 79,621 | 75,877 | 5 | % | 1 | % | |||||||||||||||||||
Asset gains (losses), net | 10,024 | 156,945 | (94) | % | 5,228 | (14) | 4,809 | (1,356) | (339) | N/M | N/M | |||||||||||||||||||||
Investment securities gains(losses), net | (16) | 9,222 | N/M | — | 24 | (39) | — | 7 | (100) | % | (100) | % | ||||||||||||||||||||
Gain on the sale of branches, net | 1,038 | — | N/M | — | 36 | 1,002 | 7,449 | — | (100) | % | N/M | |||||||||||||||||||||
Total noninterest income | $ | 250,862 | $ | 428,342 | (41) | % | $ | 82,076 | $ | 73,443 | $ | 95,343 | $ | 85,714 | $ | 75,545 | 12 | % | 9 | % | ||||||||||||
Mortgage loans originated for sale during period | $ | 1,345,158 | $ | 1,319,034 | 2 | % | $ | 455,842 | $ | 476,670 | $ | 412,645 | $ | 323,101 | $ | 458,361 | (4) | % | (1) | % | ||||||||||||
Mortgage loan settlements during period | 1,348,006 | 1,620,777 | (17) | % | 463,425 | 484,446 | 400,135 | 338,794 | 598,509 | (4) | % | (23) | % | |||||||||||||||||||
Mortgage portfolio loans transferred to held for sale during period | — | 269,119 | (100) | % | — | — | — | — | 69,532 | N/M | (100) | % | ||||||||||||||||||||
Assets under management, at market value(b) | 13,148 | 13,141 | 12,553 | 13,314 | 12,195 | — | % | 8 | % | |||||||||||||||||||||||
Nine months ended | Three months ended | Change vs | ||||||||||||||||||||||||||||||
($ in Thousands) | Sep 30, 2021 | Sep 30, 2020 | YTD % Change | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2021 | Sep 30, 2020 | ||||||||||||||||||||||
Personnel | $ | 318,900 | $ | 334,117 | (5) | % | $ | 107,880 | $ | 106,994 | $ | 104,026 | $ | 98,033 | $ | 108,567 | 1 | % | (1) | % | ||||||||||||
Technology | 60,902 | 61,639 | (1) | % | 19,927 | 20,236 | 20,740 | 19,574 | 19,666 | (2) | % | 1 | % | |||||||||||||||||||
Occupancy | 46,649 | 48,386 | (4) | % | 15,814 | 14,679 | 16,156 | 15,678 | 17,854 | 8 | % | (11) | % | |||||||||||||||||||
Business development and advertising | 15,522 | 13,007 | 19 | % | 6,156 | 4,970 | 4,395 | 5,421 | 3,626 | 24 | % | 70 | % | |||||||||||||||||||
Equipment | 16,199 | 16,150 | — | % | 5,200 | 5,481 | 5,518 | 5,555 | 5,399 | (5) | % | (4) | % | |||||||||||||||||||
Legal and professional | 17,495 | 15,809 | 11 | % | 4,304 | 6,661 | 6,530 | 5,737 | 5,591 | (35) | % | (23) | % | |||||||||||||||||||
Loan and foreclosure costs | 6,508 | 8,842 | (26) | % | 1,616 | 2,671 | 2,220 | 3,758 | 2,118 | (39) | % | (24) | % | |||||||||||||||||||
FDIC assessment | 13,350 | 14,650 | (9) | % | 5,000 | 3,600 | 4,750 | 5,700 | 3,900 | 39 | % | 28 | % | |||||||||||||||||||
Other intangible amortization | 6,642 | 7,939 | (16) | % | 2,203 | 2,203 | 2,236 | 2,253 | 2,253 | — | % | (2) | % | |||||||||||||||||||
Loss on prepayments of FHLB advances | — | 44,650 | (100) | % | — | — | — | — | 44,650 | N/M | (100) | % | ||||||||||||||||||||
Other | 25,547 | 37,993 | (33) | % | 9,793 | 6,979 | 8,775 | 11,141 | 13,963 | 40 | % | (30) | % | |||||||||||||||||||
Total noninterest expense | $ | 527,713 | $ | 603,184 | (13) | % | $ | 177,892 | $ | 174,475 | $ | 175,347 | $ | 172,850 | $ | 227,587 | 2 | % | (22) | % | ||||||||||||
Average FTEs(a) | 4,006 | 4,568 | (12) | % | 4,010 | 3,990 | 4,020 | 4,134 | 4,374 | 1 | % | (8) | % |
Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||||||||||||||||||||||
($ in Thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
PPP | $ | 182,121 | 1 | % | $ | 405,482 | 2 | % | $ | 836,566 | 3 | % | $ | 767,757 | 3 | % | $ | 1,022,217 | 4 | % | ||||||||||||
Commercial and industrial | 7,927,459 | 34 | % | 7,909,119 | 33 | % | 7,664,501 | 32 | % | 7,701,422 | 31 | % | 7,933,404 | 32 | % | |||||||||||||||||
Commercial real estate — owner occupied | 879,554 | 4 | % | 880,755 | 4 | % | 883,237 | 4 | % | 900,912 | 4 | % | 904,997 | 4 | % | |||||||||||||||||
Commercial and business lending | 8,989,133 | 38 | % | 9,195,355 | 38 | % | 9,384,303 | 39 | % | 9,370,091 | 38 | % | 9,860,618 | 39 | % | |||||||||||||||||
Commercial real estate — investor | 4,296,489 | 18 | % | 4,300,651 | 18 | % | 4,260,706 | 18 | % | 4,342,584 | 18 | % | 4,320,926 | 17 | % | |||||||||||||||||
Real estate construction | 1,834,871 | 8 | % | 1,880,897 | 8 | % | 1,882,299 | 8 | % | 1,840,417 | 8 | % | 1,859,609 | 7 | % | |||||||||||||||||
Commercial real estate lending | 6,131,360 | 26 | % | 6,181,549 | 26 | % | 6,143,004 | 25 | % | 6,183,001 | 25 | % | 6,180,536 | 25 | % | |||||||||||||||||
Total commercial | 15,120,493 | 64 | % | 15,376,904 | 64 | % | 15,527,307 | 64 | % | 15,553,091 | 64 | % | 16,041,154 | 64 | % | |||||||||||||||||
Residential mortgage | 7,590,895 | 32 | % | 7,638,372 | 32 | % | 7,685,218 | 32 | % | 7,878,324 | 32 | % | 7,885,523 | 32 | % | |||||||||||||||||
Home equity | 608,566 | 3 | % | 631,783 | 3 | % | 651,647 | 3 | % | 707,255 | 3 | % | 761,593 | 3 | % | |||||||||||||||||
Other consumer | 294,979 | 1 | % | 292,660 | 1 | % | 288,990 | 1 | % | 301,876 | 1 | % | 302,603 | 1 | % | |||||||||||||||||
Auto | 6,739 | — | % | 7,817 | — | % | 9,165 | — | % | 11,177 | — | % | 12,879 | — | % | |||||||||||||||||
Total consumer | 8,501,180 | 36 | % | 8,570,632 | 36 | % | 8,635,020 | 36 | % | 8,898,632 | 36 | % | 8,962,599 | 36 | % | |||||||||||||||||
Total loans | $ | 23,621,673 | 100 | % | $ | 23,947,536 | 100 | % | $ | 24,162,328 | 100 | % | $ | 24,451,724 | 100 | % | $ | 25,003,753 | 100 | % | ||||||||||||
($ in Thousands) | Within 1 Year(a) | 1-5 Years | After 5 Years | Total | % of Total | ||||||||||||
PPP | $ | 29,587 | $ | 152,534 | $ | — | $ | 182,121 | 1 | % | |||||||
Commercial and industrial | 7,329,486 | 484,329 | 113,643 | 7,927,459 | 34 | % | |||||||||||
Commercial real estate — owner occupied | 496,010 | 233,530 | 150,013 | 879,554 | 4 | % | |||||||||||
Commercial real estate — investor | 3,935,037 | 274,474 | 86,978 | 4,296,489 | 18 | % | |||||||||||
Real estate construction | 1,790,893 | 32,050 | 11,928 | 1,834,871 | 8 | % | |||||||||||
Residential mortgage - Adjustable(b) | 459,613 | 719,223 | 1,551,978 | 2,730,814 | 12 | % | |||||||||||
Residential mortgage - Fixed | 31,378 | 83,511 | 4,745,193 | 4,860,082 | 21 | % | |||||||||||
Home equity | 27,490 | 74,463 | 506,613 | 608,566 | 3 | % | |||||||||||
Other consumer | 47,919 | 51,028 | 196,031 | 294,979 | 1 | % | |||||||||||
Auto | 340 | 6,291 | 108 | 6,739 | — | % | |||||||||||
Total loans | $ | 14,147,754 | $ | 2,111,433 | $ | 7,362,486 | $ | 23,621,673 | 100 | % | |||||||
Fixed rate | $ | 5,666,603 | $ | 1,192,969 | $ | 5,273,871 | $ | 12,133,444 | 51 | % | |||||||
Floating or adjustable rate | 8,481,151 | 918,464 | 2,088,614 | 11,488,229 | 49 | % | |||||||||||
Total | $ | 14,147,754 | $ | 2,111,433 | $ | 7,362,486 | $ | 23,621,673 | 100 | % | |||||||
September 30, 2021 | % of Total Loans | % of Total Commercial and Business Lending | ||||||
Utilities | 7 | % | 19 | % | ||||
Finance and Insurance | 7 | % | 18 | % | ||||
Manufacturing and Wholesale Trade | 7 | % | 18 | % | ||||
Real Estate | 6 | % | 15 | % | ||||
September 30, 2021 | % of Total Loans | % of Total Commercial Real Estate - Investor | ||||||
Multi-Family | 6 | % | 32 | % | ||||
Office | 4 | % | 23 | % | ||||
Industrial | 3 | % | 18 | % | ||||
Retail | 3 | % | 17 | % |
September 30, 2021 | % of Total Loans | % of Total Real Estate Construction | ||||||
Multi-Family | 3 | % | 32 | % |
Round 1 & 2 | Round 3 | Total | |||||||||||||||||||||
Originated Loans | Originated Balance | Outstanding Balance | Originated Loans | Originated Balance | Outstanding Balance | Outstanding Balance | |||||||||||||||||
($ in Thousands) | |||||||||||||||||||||||
>=$2,000,000 | 99 | $ | 335,534 | $ | 23,667 | 11 | $ | 22,000 | $ | 20,000 | $ | 43,667 | |||||||||||
< $2,000,000 And > $350,000 | 485 | 386,245 | 2,454 | 158 | 118,491 | 62,153 | 64,607 | ||||||||||||||||
<=$350,000 | 7,495 | 344,032 | 4,059 | 5,332 | 188,514 | 69,787 | 73,846 | ||||||||||||||||
Total | 8,079 | $ | 1,065,811 | $ | 30,180 | 5,501 | $ | 329,004 | $ | 151,940 | $ | 182,121 | |||||||||||
Deferred fees | $ | 196 | $ | 6,360 | $ | 6,556 |
($ in Thousands) | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||||||
Nonperforming assets | |||||||||||||||||
Commercial and industrial | $ | 8,497 | $ | 18,380 | $ | 33,192 | $ | 61,859 | $ | 105,899 | |||||||
Commercial real estate — owner occupied | 7 | 7 | 7 | 1,058 | 2,043 | ||||||||||||
Commercial and business lending | 8,504 | 18,387 | 33,200 | 62,917 | 107,941 | ||||||||||||
Commercial real estate — investor | 61,504 | 63,003 | 58,485 | 78,220 | 50,458 | ||||||||||||
Real estate construction | 247 | 247 | 327 | 353 | 392 | ||||||||||||
Commercial real estate lending | 61,751 | 63,250 | 58,813 | 78,573 | 50,850 | ||||||||||||
Total commercial | 70,256 | 81,637 | 92,012 | 141,490 | 158,792 | ||||||||||||
Residential mortgage | 56,678 | 56,795 | 61,256 | 59,337 | 62,331 | ||||||||||||
Home equity | 7,838 | 8,517 | 9,792 | 9,888 | 10,277 | ||||||||||||
Other consumer | 222 | 131 | 195 | 91 | 158 | ||||||||||||
Auto | 67 | 56 | 36 | 49 | 33 | ||||||||||||
Total consumer | 64,806 | 65,498 | 71,280 | 69,364 | 72,798 | ||||||||||||
Total nonaccrual loans | 135,062 | 147,135 | 163,292 | 210,854 | 231,590 | ||||||||||||
Commercial real estate owned | 1,005 | 1,318 | 2,092 | 2,185 | 2,113 | ||||||||||||
Residential real estate owned | 2,126 | 2,438 | 1,501 | 1,194 | 1,535 | ||||||||||||
Bank properties real estate owned | 30,724 | 20,244 | 20,995 | 10,889 | 15,335 | ||||||||||||
OREO | 33,855 | 24,000 | 24,588 | 14,269 | 18,983 | ||||||||||||
Other nonperforming assets | — | — | — | — | 909 | ||||||||||||
Total nonperforming assets | $ | 168,917 | $ | 171,135 | $ | 187,880 | $ | 225,123 | $ | 251,481 | |||||||
Accruing loans past due 90 days or more | |||||||||||||||||
Commercial | $ | 98 | $ | 203 | $ | 190 | $ | 175 | $ | 763 | |||||||
Consumer | 932 | 1,099 | 1,485 | 1,423 | 1,091 | ||||||||||||
Total accruing loans past due 90 days or more | $ | 1,029 | $ | 1,302 | $ | 1,675 | $ | 1,598 | $ | 1,854 | |||||||
Restructured loans (accruing)(a) | |||||||||||||||||
Commercial | $ | 25,582 | $ | 26,353 | $ | 27,356 | $ | 41,119 | $ | 18,407 | |||||||
Consumer | 18,917 | 15,582 | 13,464 | 10,973 | 8,485 | ||||||||||||
Total restructured loans (accruing) | $ | 44,499 | $ | 41,935 | $ | 40,820 | $ | 52,092 | $ | 26,891 | |||||||
Nonaccrual restructured loans (included in nonaccrual loans) | $ | 15,226 | $ | 17,237 | $ | 17,624 | $ | 20,190 | $ | 23,844 | |||||||
Ratios | |||||||||||||||||
Nonaccrual loans to total loans | 0.57 | % | 0.61 | % | 0.68 | % | 0.86 | % | 0.93 | % | |||||||
NPAs to total loans plus OREO | 0.71 | % | 0.71 | % | 0.78 | % | 0.92 | % | 1.01 | % | |||||||
NPAs to total assets | 0.49 | % | 0.50 | % | 0.54 | % | 0.67 | % | 0.72 | % | |||||||
Allowance for credit losses on loans to nonaccrual loans | 246.02 | % | 247.45 | % | 247.23 | % | 204.63 | % | 190.85 | % |
($ in Thousands) | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||||||
Accruing loans 30-89 days past due | |||||||||||||||||
PPP | $ | 568 | $ | — | $ | — | $ | — | $ | — | |||||||
Commercial and industrial | 1,229 | 258 | 526 | 6,119 | 298 | ||||||||||||
Commercial real estate — owner occupied | 30 | 47 | — | 373 | 870 | ||||||||||||
Commercial and business lending | 1,827 | 306 | 526 | 6,492 | 1,167 | ||||||||||||
Commercial real estate — investor | 17,021 | 391 | 5,999 | 12,793 | 409 | ||||||||||||
Real estate construction | — | 117 | 977 | 991 | 111 | ||||||||||||
Commercial real estate lending | 17,021 | 509 | 6,976 | 13,784 | 520 | ||||||||||||
Total commercial | 18,848 | 814 | 7,502 | 20,276 | 1,687 | ||||||||||||
Residential mortgage | 7,095 | 5,015 | 3,973 | 10,385 | 6,185 | ||||||||||||
Home equity | 2,931 | 2,472 | 2,352 | 4,802 | 5,609 | ||||||||||||
Other consumer | 1,272 | 1,036 | 1,246 | 1,543 | 1,322 | ||||||||||||
Auto | 10 | 38 | 24 | 57 | 29 | ||||||||||||
Total consumer | 11,308 | 8,562 | 7,594 | 16,786 | 13,144 | ||||||||||||
Total accruing loans 30-89 days past due | $ | 30,156 | $ | 9,376 | $ | 15,097 | $ | 37,062 | $ | 14,831 | |||||||
Potential problem loans | |||||||||||||||||
PPP(a) | $ | 4,160 | $ | 8,695 | $ | 22,398 | $ | 18,002 | $ | 19,161 | |||||||
Commercial and industrial | 124,990 | 77,064 | 122,143 | 121,487 | 144,159 | ||||||||||||
Commercial real estate — owner occupied | 21,241 | 17,828 | 15,965 | 26,179 | 22,808 | ||||||||||||
Commercial and business lending | 150,391 | 103,587 | 160,506 | 165,668 | 186,129 | ||||||||||||
Commercial real estate — investor | 78,962 | 71,613 | 85,752 | 91,396 | 100,459 | ||||||||||||
Real estate construction | 19,187 | 16,465 | 13,977 | 19,046 | 2,178 | ||||||||||||
Commercial real estate lending | 98,150 | 88,078 | 99,728 | 110,442 | 102,637 | ||||||||||||
Total commercial | 248,541 | 191,665 | 260,234 | 276,111 | 288,766 | ||||||||||||
Residential mortgage | 2,374 | 3,024 | 2,524 | 3,749 | 2,396 | ||||||||||||
Home equity | 171 | 1,558 | 1,729 | 2,068 | 1,632 | ||||||||||||
Total consumer | 2,546 | 4,583 | 4,254 | 5,817 | 4,028 | ||||||||||||
Total potential problem loans | $ | 251,087 | $ | 196,248 | $ | 264,488 | $ | 281,928 | $ | 292,794 |
YTD | Quarter Ended | ||||||||||||||||||||||
($ in Thousands) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 30, 2020 | Sep 30, 2020 | ||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||
Balance at beginning of period | $ | 383,702 | $ | 201,371 | $ | 318,811 | $ | 352,938 | $ | 383,702 | $ | 384,711 | $ | 363,803 | |||||||||
Cumulative effect of ASU 2016-13 adoption (CECL) | N/A | 112,457 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Balance at beginning of period, adjusted | 383,702 | 313,828 | 318,811 | 352,938 | 383,702 | 384,711 | 363,803 | ||||||||||||||||
Provision for loan losses | (75,500) | 137,957 | (20,000) | (29,500) | (26,000) | 26,500 | 50,500 | ||||||||||||||||
Provision for loan losses recorded at acquisition | N/A | 2,543 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Gross up of allowance for PCD loans at acquisition | N/A | 3,504 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Charge offs | (31,784) | (81,738) | (10,929) | (7,681) | (13,174) | (30,315) | (34,079) | ||||||||||||||||
Recoveries | 14,579 | 8,617 | 3,115 | 3,054 | 8,410 | 2,805 | 4,488 | ||||||||||||||||
Net (charge offs) recoveries | (17,205) | (73,121) | (7,814) | (4,628) | (4,764) | (27,510) | (29,592) | ||||||||||||||||
Balance at end of period | $ | 290,997 | $ | 384,711 | $ | 290,997 | $ | 318,811 | $ | 352,938 | $ | 383,702 | $ | 384,711 | |||||||||
Allowance for Unfunded Commitments | |||||||||||||||||||||||
Balance at beginning of period | $ | 47,776 | $ | 21,907 | $ | 45,276 | $ | 50,776 | $ | 47,776 | $ | 57,276 | $ | 64,776 | |||||||||
Cumulative effect of ASU 2016-13 adoption (CECL) | N/A | 18,690 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Balance at beginning of period, adjusted | 47,776 | 40,597 | 45,276 | 50,776 | 47,776 | 57,276 | 64,776 | ||||||||||||||||
Provision for unfunded commitments | (6,500) | 16,500 | (4,000) | (5,500) | 3,000 | (9,500) | (7,500) | ||||||||||||||||
Amount recorded at acquisition | — | 179 | — | — | — | — | — | ||||||||||||||||
Balance at end of period | $ | 41,276 | $ | 57,276 | $ | 41,276 | $ | 45,276 | $ | 50,776 | $ | 47,776 | $ | 57,276 | |||||||||
Allowance for credit losses on loans | $ | 332,273 | $ | 441,988 | $ | 332,273 | $ | 364,087 | $ | 403,714 | $ | 431,478 | $ | 441,988 | |||||||||
Provision for credit losses on loans | (82,000) | 157,000 | (24,000) | (35,000) | (23,000) | 17,000 | 43,000 | ||||||||||||||||
Net loan (charge offs) recoveries | |||||||||||||||||||||||
Commercial and industrial | $ | (6,358) | $ | (64,802) | $ | (9,057) | $ | 1,333 | $ | 1,367 | $ | (8,514) | $ | (24,834) | |||||||||
Commercial real estate — owner occupied | 115 | (415) | 106 | 5 | 4 | 143 | (416) | ||||||||||||||||
Commercial and business lending | (6,242) | (65,216) | (8,951) | 1,338 | 1,370 | (8,371) | (25,249) | ||||||||||||||||
Commercial real estate — investor | (11,293) | (3,581) | 181 | (5,589) | (5,886) | (18,696) | (3,609) | ||||||||||||||||
Real estate construction | 69 | (12) | 18 | 23 | 29 | 43 | (21) | ||||||||||||||||
Commercial real estate lending | (11,224) | (3,593) | 199 | (5,566) | (5,857) | (18,653) | (3,630) | ||||||||||||||||
Total commercial | (17,467) | (68,810) | (8,752) | (4,228) | (4,487) | (27,024) | (28,879) | ||||||||||||||||
Residential mortgage | (32) | (1,206) | 300 | (223) | (109) | (162) | (79) | ||||||||||||||||
Home equity | 1,640 | (76) | 959 | 337 | 344 | 335 | 156 | ||||||||||||||||
Other consumer | (1,366) | (3,039) | (329) | (517) | (521) | (668) | (797) | ||||||||||||||||
Auto | 20 | 10 | 8 | 3 | 9 | 9 | 8 | ||||||||||||||||
Total consumer | 262 | (4,311) | 938 | (400) | (277) | (486) | (712) | ||||||||||||||||
Total net (charge offs) recoveries | $ | (17,205) | $ | (73,121) | $ | (7,814) | $ | (4,628) | $ | (4,764) | $ | (27,510) | $ | (29,592) | |||||||||
Ratios | |||||||||||||||||||||||
Allowance for credit losses on loans to total loans | 1.41 | % | 1.52 | % | 1.67 | % | 1.76 | % | 1.77 | % | |||||||||||||
Allowance for credit losses on loans to net charge offs (annualized) | 14.4x | 4.5x | 10.7x | 19.6x | 20.9x | 3.9x | 3.8x | ||||||||||||||||
Loan Evaluation Method for ACLL | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 19,913 | $ | 29,352 | $ | 43,262 | $ | 79,831 | $ | 88,030 | |||||||||||||
Collectively evaluated for impairment | 312,359 | 334,734 | 360,452 | 351,646 | 353,957 | ||||||||||||||||||
Total ACLL | $ | 332,273 | $ | 364,087 | $ | 403,714 | $ | 431,478 | $ | 441,988 | |||||||||||||
Loan Balance | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 131,484 | $ | 141,817 | $ | 180,006 | $ | 259,497 | $ | 256,536 | |||||||||||||
Collectively evaluated for impairment | 23,490,189 | 23,805,719 | 23,982,321 | 24,192,227 | 24,747,216 | ||||||||||||||||||
Total loan balance | $ | 23,621,673 | $ | 23,947,536 | $ | 24,162,328 | $ | 24,451,724 | $ | 25,003,753 |
YTD | Quarter Ended | ||||||||||||||||||||||
(In basis points) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 30, 2020 | Sep 30, 2020 | ||||||||||||||||
Net loan (charge offs) recoveries | |||||||||||||||||||||||
Commercial and industrial | (11) | (110) | (46) | 7 | 7 | (45) | (126) | ||||||||||||||||
Commercial real estate — owner occupied | 2 | (6) | 5 | — | — | 6 | (18) | ||||||||||||||||
Commercial and business lending | (9) | (93) | (40) | 6 | 6 | (35) | (103) | ||||||||||||||||
Commercial real estate — investor | (35) | (12) | 2 | (52) | (55) | (173) | (34) | ||||||||||||||||
Real estate construction | — | — | — | 1 | 1 | 1 | — | ||||||||||||||||
Commercial real estate lending | (24) | (8) | 1 | (36) | (38) | (121) | (24) | ||||||||||||||||
Total commercial | (15) | (61) | (23) | (11) | (12) | (69) | (73) | ||||||||||||||||
Residential mortgage | — | (2) | 2 | (1) | (1) | (1) | — | ||||||||||||||||
Home equity | 34 | (1) | 61 | 21 | 21 | 18 | 8 | ||||||||||||||||
Other consumer | (62) | (126) | (44) | (72) | (72) | (88) | (103) | ||||||||||||||||
Auto | 31 | 9 | 43 | 15 | 37 | 29 | 22 | ||||||||||||||||
Total consumer | — | (6) | 4 | (2) | (1) | (2) | (3) | ||||||||||||||||
Total net (charge offs) recoveries | (10) | (40) | (13) | (8) | (8) | (44) | (47) | ||||||||||||||||
Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||||||||||||||||||||||
($ in Thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
Noninterest-bearing demand | $ | 8,170,105 | 29 | % | $ | 7,999,143 | 29 | % | $ | 8,496,194 | 31 | % | $ | 7,661,728 | 29 | % | $ | 7,489,048 | 28 | % | ||||||||||||
Savings | 4,278,453 | 15 | % | 4,182,651 | 15 | % | 4,032,830 | 15 | % | 3,650,085 | 14 | % | 3,529,423 | 13 | % | |||||||||||||||||
Interest-bearing demand | 6,407,844 | 23 | % | 5,969,285 | 22 | % | 5,748,353 | 21 | % | 6,090,869 | 23 | % | 5,979,449 | 22 | % | |||||||||||||||||
Money market | 7,583,978 | 27 | % | 7,640,825 | 28 | % | 7,838,437 | 28 | % | 7,322,769 | 28 | % | 7,687,775 | 29 | % | |||||||||||||||||
Time deposits | 1,410,886 | 5 | % | 1,472,395 | 5 | % | 1,561,352 | 6 | % | 1,757,030 | 7 | % | 2,026,852 | 8 | % | |||||||||||||||||
Total deposits | $ | 27,851,266 | 100 | % | $ | 27,264,299 | 100 | % | $ | 27,677,166 | 100 | % | $ | 26,482,481 | 100 | % | $ | 26,712,547 | 100 | % | ||||||||||||
Customer funding(a) | 322,081 | 226,160 | 182,228 | 245,247 | 198,741 | |||||||||||||||||||||||||||
Total deposits and customer funding | $ | 28,173,348 | $ | 27,490,459 | $ | 27,859,394 | $ | 26,727,727 | $ | 26,911,289 | ||||||||||||||||||||||
Network transaction deposits(b) | $ | 929,174 | $ | 871,603 | $ | 1,054,634 | $ | 1,197,093 | $ | 1,390,778 | ||||||||||||||||||||||
Net deposits and customer funding (total deposits and customer funding, excluding network transaction deposits) | $ | 27,244,174 | $ | 26,618,856 | $ | 26,804,761 | $ | 25,530,634 | $ | 25,520,511 | ||||||||||||||||||||||
Time deposits of more than $250,000 | $ | 223,075 | $ | 232,035 | $ | 246,037 | $ | 341,068 | $ | 463,739 |
Moody’s | S&P | ||||||||||
Bank short-term deposits | P-1 | - | |||||||||
Bank long-term deposits/issuer | A1 | BBB+ | |||||||||
Corporation commercial paper | P-2 | - | |||||||||
Corporation long-term senior debt/issuer | Baa1 | BBB | |||||||||
Outlook | Negative | Stable |
Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||||||
Dynamic Forecast | Static Forecast | Dynamic Forecast | Static Forecast | ||||||||||||||||||||
Gradual Rate Change | |||||||||||||||||||||||
100 bp increase in interest rates | 5.8 | % | 5.5 | % | 6.2 | % | 6.3 | % | |||||||||||||||
200 bp increase in interest rates | 12.1 | % | 11.0 | % | 12.8 | % | 12.7 | % |
Sep 30, 2021 | Dec 31, 2020 | ||||||||||
Instantaneous Rate Change | |||||||||||
100 bp increase in interest rates | (1.2) | % | 1.9 | % | |||||||
200 bp increase in interest rates | (2.6) | % | 2.8 | % |
($ in Thousands) | One Year or Less | One to Three Years | Three to Five Years | Over Five Years | Total | ||||||||||||
Time deposits | $ | 1,078,578 | $ | 282,826 | $ | 49,477 | $ | 5 | $ | 1,410,886 | |||||||
Short-term funding | 322,496 | — | — | — | 322,496 | ||||||||||||
FHLB advances | 11,899 | 2,920 | 1,001,806 | 604,254 | 1,620,880 | ||||||||||||
Other long-term funding | 72 | — | 249,088 | — | 249,160 | ||||||||||||
Operating leases | 7,611 | 10,739 | 7,107 | 7,609 | 33,066 | ||||||||||||
Commitments to extend credit | 5,574,678 | 3,620,518 | 1,600,138 | 212,827 | 11,008,161 | ||||||||||||
Total | $ | 6,995,335 | $ | 3,917,003 | $ | 2,907,616 | $ | 824,695 | $ | 14,644,649 |
YTD | Quarter Ended | ||||||||||||||||||||||
($ in Thousands) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||||||||||
Risk-based Capital(a) | |||||||||||||||||||||||
CET1 | $ | 2,779,943 | $ | 2,790,392 | $ | 2,759,473 | $ | 2,706,010 | $ | 2,671,739 | |||||||||||||
Tier 1 capital | 2,972,622 | 3,080,015 | 3,112,239 | 3,058,809 | 3,024,710 | ||||||||||||||||||
Total capital | 3,550,556 | 3,655,411 | 3,682,720 | 3,632,807 | 3,601,705 | ||||||||||||||||||
Total risk-weighted assets | 26,303,703 | 26,072,881 | 25,640,395 | 25,903,415 | 26,141,710 | ||||||||||||||||||
Modified CECL transitional amount | 92,822 | 100,776 | 110,683 | 117,624 | 120,251 | ||||||||||||||||||
CET1 capital ratio | 10.57 | % | 10.70 | % | 10.76 | % | 10.45 | % | 10.22 | % | |||||||||||||
Tier 1 capital ratio | 11.30 | % | 11.81 | % | 12.14 | % | 11.81 | % | 11.57 | % | |||||||||||||
Total capital ratio | 13.50 | % | 14.02 | % | 14.36 | % | 14.02 | % | 13.78 | % | |||||||||||||
Tier 1 leverage ratio | 8.81 | % | 9.23 | % | 9.53 | % | 9.37 | % | 9.02 | % | |||||||||||||
Selected Equity and Performance Ratios | |||||||||||||||||||||||
Total stockholders’ equity / assets | 11.60 | % | 12.03 | % | 11.94 | % | 12.24 | % | 11.66 | % | |||||||||||||
Dividend payout ratio(b) | 32.94 | % | 36.73 | % | 35.71 | % | 32.14 | % | 31.03 | % | 45.00 | % | 69.23 | % | |||||||||
Return on average assets | 1.07 | % | 0.93 | % | 1.01 | % | 1.06 | % | 1.14 | % | 0.78 | % | 0.51 | % | |||||||||
Annualized noninterest expense / average assets | 2.06 | % | 2.35 | % | 2.03 | % | 2.04 | % | 2.11 | % | 2.02 | % | 2.55 | % |
YTD | Quarter Ended | ||||||||||||||||||||||
($ in Thousands) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||||||||||
Selected equity and performance ratios(a)(b) | |||||||||||||||||||||||
Tangible common equity / tangible assets | 7.92 | % | 8.04 | % | 7.80 | % | 7.94 | % | 7.50 | % | |||||||||||||
Return on average equity | 8.93 | % | 8.20 | % | 8.63 | % | 8.84 | % | 9.32 | % | 6.58 | % | 4.46 | % | |||||||||
Return on average tangible common equity | 13.30 | % | 12.79 | % | 12.72 | % | 13.19 | % | 14.03 | % | 9.75 | % | 6.36 | % | |||||||||
Return on average CET1 | 12.62 | % | 11.97 | % | 12.11 | % | 12.51 | % | 13.25 | % | 9.16 | % | 5.98 | % | |||||||||
Return on average tangible assets | 1.11 | % | 0.97 | % | 1.05 | % | 1.10 | % | 1.18 | % | 0.81 | % | 0.52 | % | |||||||||
Average stockholders' equity / average assets | 11.98 | % | 11.38 | % | 11.74 | % | 12.01 | % | 12.18 | % | 11.90 | % | 11.35 | % | |||||||||
Tangible common equity reconciliation(a) | |||||||||||||||||||||||
Common equity | $ | 3,801,766 | $ | 3,819,852 | $ | 3,774,268 | $ | 3,737,421 | $ | 3,691,796 | |||||||||||||
Goodwill and other intangible assets, net | (1,165,288) | (1,167,491) | (1,169,694) | (1,177,554) | (1,178,409) | ||||||||||||||||||
Tangible common equity | $ | 2,636,478 | $ | 2,652,361 | $ | 2,604,575 | $ | 2,559,867 | $ | 2,513,387 | |||||||||||||
Tangible Assets Reconciliation(a) | |||||||||||||||||||||||
Total assets | $ | 34,439,666 | $ | 34,152,625 | $ | 34,575,255 | $ | 33,419,783 | $ | 34,698,746 | |||||||||||||
Goodwill and other intangible assets, net | (1,165,288) | (1,167,491) | (1,169,694) | (1,177,554) | (1,178,409) | ||||||||||||||||||
Tangible assets | $ | 33,274,378 | $ | 32,985,134 | $ | 33,405,561 | $ | 32,242,230 | $ | 33,520,337 | |||||||||||||
Average tangible common equity and average CET1 reconciliation(a)(b) | |||||||||||||||||||||||
Common equity | $ | 3,782,141 | $ | 3,610,864 | $ | 3,807,083 | $ | 3,788,237 | $ | 3,750,479 | $ | 3,699,957 | $ | 3,680,687 | |||||||||
Goodwill and other intangible assets, net | (1,169,964) | (1,244,147) | (1,166,589) | (1,168,774) | (1,174,617) | (1,178,165) | (1,179,796) | ||||||||||||||||
Tangible common equity | 2,612,177 | 2,366,717 | 2,640,494 | 2,619,464 | 2,575,862 | 2,521,792 | 2,500,891 | ||||||||||||||||
Modified CECL transitional amount | 106,277 | 112,441 | 97,420 | 105,961 | 115,649 | 122,828 | 120,228 | ||||||||||||||||
Accumulated other comprehensive loss (income) | (4,589) | 4,762 | (5,320) | (3,111) | (5,337) | (3,668) | (3,682) | ||||||||||||||||
Deferred tax assets (liabilities), net | 40,135 | 44,516 | 39,893 | 39,915 | 40,608 | 41,578 | 42,183 | ||||||||||||||||
Average CET1 | $ | 2,754,000 | $ | 2,528,436 | $ | 2,772,487 | $ | 2,762,229 | $ | 2,726,782 | $ | 2,682,530 | $ | 2,659,620 | |||||||||
Average tangible assets reconciliation(a) | |||||||||||||||||||||||
Total assets | $ | 34,278,268 | $ | 34,328,806 | $ | 34,759,489 | $ | 34,379,647 | $ | 33,684,143 | $ | 34,075,792 | $ | 35,550,359 | |||||||||
Goodwill and other intangible assets, net | (1,169,964) | (1,244,147) | (1,166,589) | (1,168,774) | (1,174,617) | (1,178,165) | (1,179,796) | ||||||||||||||||
Tangible assets | $ | 33,108,304 | $ | 33,084,660 | $ | 33,592,900 | $ | 33,210,873 | $ | 32,509,526 | $ | 32,897,626 | $ | 34,370,563 | |||||||||
Efficiency ratio reconciliation(c) | |||||||||||||||||||||||
Federal Reserve efficiency ratio | 65.98 | % | 62.34 | % | 65.43 | % | 66.81 | % | 65.74 | % | 59.68 | % | 85.41 | % | |||||||||
Fully tax-equivalent adjustment | (1.02) | % | (0.75) | % | (1.01) | % | (1.07) | % | (0.97) | % | (0.84) | % | (1.29) | % | |||||||||
Other intangible amortization | (0.84) | % | (0.80) | % | (0.83) | % | (0.87) | % | (0.82) | % | (0.82) | % | (0.87) | % | |||||||||
Fully tax-equivalent efficiency ratio | 64.13 | % | 60.80 | % | 63.61 | % | 64.88 | % | 63.96 | % | 58.02 | % | 83.25 | % | |||||||||
Provision for unfunded commitments adjustment | 0.81 | % | (1.64) | % | 1.48 | % | 2.14 | % | (1.09) | % | 3.42 | % | 2.87 | % | |||||||||
Asset gains (losses), net adjustment | 0.82 | % | 10.89 | % | 1.29 | % | — | % | 1.12 | % | (0.30) | % | (0.11) | % | |||||||||
Acquisitions, branch sales, and initiatives | (0.22) | % | (7.31) | % | (0.91) | % | 0.01 | % | 0.22 | % | 1.68 | % | (22.99) | % | |||||||||
Adjusted efficiency ratio | 65.54 | % | 62.74 | % | 65.46 | % | 67.02 | % | 64.21 | % | 62.83 | % | 63.02 | % |
Three Months Ended Sep 30, | Nine Months Ended Sep 30, | |||||||||||||||||||
($ in Thousands) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||
Corporate and Commercial Specialty | ||||||||||||||||||||
Total revenue(a) | $ | 142,881 | $ | 136,376 | 5 | % | $ | 424,104 | $ | 412,987 | 3 | % | ||||||||
Provision for credit losses | 14,864 | 15,572 | (5) | % | 48,803 | 41,456 | 18 | % | ||||||||||||
Noninterest expense | 58,652 | 52,635 | 11 | % | 172,781 | 160,899 | 7 | % | ||||||||||||
Income tax expense (benefit) | 12,617 | 12,497 | 1 | % | 37,213 | 39,161 | (5) | % | ||||||||||||
Net income | 56,747 | 55,672 | 2 | % | 165,307 | 171,472 | (4) | % | ||||||||||||
Average earning assets | 14,578,127 | 14,682,074 | (1) | % | 14,582,112 | 14,128,156 | 3 | % | ||||||||||||
Average loans | 14,577,082 | 14,681,690 | (1) | % | 14,581,288 | 14,124,838 | 3 | % | ||||||||||||
Average deposits | 10,007,194 | 9,631,000 | 4 | % | 9,761,845 | 9,387,212 | 4 | % | ||||||||||||
Average allocated capital (Average CET1)(b) | 1,467,902 | 1,468,341 | — | % | 1,469,694 | 1,414,696 | 4 | % | ||||||||||||
Return on average allocated capital (ROCET1)(b) | 15.34 | % | 15.08 | % | 26 bp | 15.04 | % | 16.19 | % | -115 bp | ||||||||||
Community, Consumer, and Business | ||||||||||||||||||||
Total revenue | $ | 119,538 | $ | 115,833 | 3 | % | $ | 362,548 | $ | 404,345 | (10) | % | ||||||||
Provision for credit losses | 4,233 | 5,758 | (26) | % | 13,897 | 16,296 | (15) | % | ||||||||||||
Noninterest expense | 94,762 | 102,139 | (7) | % | 290,443 | 335,675 | (13) | % | ||||||||||||
Income tax expense (benefit) | 4,314 | 1,667 | 159 | % | 12,224 | 10,999 | 11 | % | ||||||||||||
Net income | 16,230 | 6,269 | 159 | % | 45,985 | 41,376 | 11 | % | ||||||||||||
Average earning assets | 8,642,457 | 9,414,194 | (8) | % | 8,845,983 | 9,457,405 | (6) | % | ||||||||||||
Average loans | 8,642,457 | 9,414,194 | (8) | % | 8,845,983 | 9,457,405 | (6) | % | ||||||||||||
Average deposits | 17,075,676 | 15,577,322 | 10 | % | 16,642,694 | 14,753,893 | 13 | % | ||||||||||||
Average allocated capital (Average CET1)(b) | 465,632 | 507,233 | (8) | % | 480,369 | 543,377 | (12) | % | ||||||||||||
Return on average allocated capital (ROCET1)(b) | 13.83 | % | 4.92 | % | N/M | 12.80 | % | 10.17 | % | N/M | ||||||||||
Risk Management and Shared Services | ||||||||||||||||||||
Total revenue(c) | $ | 3,333 | $ | 5,487 | (39) | % | $ | 3,301 | $ | 185,973 | (98) | % | ||||||||
Provision for credit losses | (43,107) | 21,679 | N/M | (144,717) | 99,257 | N/M | ||||||||||||||
Noninterest expense | 24,478 | 72,813 | (66) | % | 64,490 | 106,610 | (40) | % | ||||||||||||
Income tax expense (benefit) | 6,129 | (72,278) | N/M | 20,705 | (46,817) | N/M | ||||||||||||||
Net income | 15,833 | (16,727) | N/M | 62,824 | 26,922 | 133 | % | |||||||||||||
Average earning assets | 8,166,891 | 8,017,579 | 2 | % | 7,495,515 | 7,282,279 | 3 | % | ||||||||||||
Average loans | 664,419 | 867,187 | (23) | % | 719,246 | 906,992 | (21) | % | ||||||||||||
Average deposits | 991,503 | 1,631,256 | (39) | % | 1,049,968 | 1,621,079 | (35) | % | ||||||||||||
Average allocated capital (Average CET1)(b) | 838,953 | 684,046 | 23 | % | 803,937 | 570,364 | 41 | % | ||||||||||||
Return on average allocated capital (ROCET1)(b) | 5.52 | % | (12.76) | % | N/M | 10.45 | % | 3.22 | % | N/M | ||||||||||
Consolidated Total | ||||||||||||||||||||
Total revenue(a)(c) | $ | 265,752 | $ | 257,695 | 3 | % | $ | 789,954 | $ | 1,003,305 | (21) | % | ||||||||
Return on average allocated capital (ROCET1)(b) | 12.11 | % | 5.98 | % | N/M | 12.62 | % | 11.97 | % | 65 bp |
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk |
ITEM 4. | Controls and Procedures |
PART II - OTHER INFORMATION |
ITEM 1. | Legal Proceedings |
ITEM 1A. | Risk Factors |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Total Number of Shares Purchased(a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(b) | |||||||||||
Period | ||||||||||||||
July 1, 2021 - July 31, 2021 | 468,431 | $ | 19.77 | 468,431 | — | |||||||||
August 1, 2021 - August 31, 2021 | 2,455,088 | 20.70 | 2,450,585 | — | ||||||||||
September 1, 2021 - September 30, 2021 | 1,020 | 20.70 | — | — | ||||||||||
Total | 2,924,539 | $ | 20.55 | 2,919,016 | 217,463 |
ITEM 6. | Exhibits |
Exhibit (101), Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Unaudited Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Income, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Changes in Stockholders’ Equity, (v) Unaudited Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. | ||
Exhibit (104), The cover page from the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 has been formatted in Inline XBRL (Inline Extensible Business Reporting Language) and contained in Exhibits in 101. |
Signatures |
ASSOCIATED BANC-CORP | ||||||||
(Registrant) | ||||||||
Date: October 28, 2021 | /s/ Andrew J. Harmening | |||||||
Andrew J. Harmening | ||||||||
President and Chief Executive Officer | ||||||||
Date: October 28, 2021 | /s/ Christopher J. Del Moral-Niles | |||||||
Christopher J. Del Moral-Niles | ||||||||
Chief Financial Officer | ||||||||
Date: October 28, 2021 | /s/ Tammy C. Stadler | |||||||
Tammy C. Stadler | ||||||||
Chief Accounting Officer |
Date: October 28, 2021 | /s/ Andrew J. Harmening | |||||||
Andrew J. Harmening | ||||||||
President and Chief Executive Officer |
Date: October 28, 2021 | /s/ Christopher J. Del Moral-Niles | |||||||
Christopher J. Del Moral-Niles | ||||||||
Chief Financial Officer |
/s/ Andrew J. Harmening | |||||
Andrew J. Harmening | |||||
Chief Executive Officer | |||||
October 28, 2021 |
/s/ Christopher J. Del Moral-Niles | |||||
Christopher J. Del Moral-Niles | |||||
Chief Financial Officer | |||||
October 28, 2021 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Preferred shares, par value | $ 1.00 | $ 1.00 |
Common shares, par value | $ 0.01 | $ 0.01 |
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands |
Total |
Cumulative Effect, Period Of Adoption, Adjustment |
Performance/Service Based RSAs, RSA, |
Board Authorized Purchase Program [Member] |
Series C Preferred Stock |
Series D Preferred Stock |
Series E Preferred Stock |
Series F Preferred Stock |
Preferred Equity |
Preferred Equity
Cumulative Effect, Period Of Adoption, Adjustment
|
Common Stock |
Common Stock
Cumulative Effect, Period Of Adoption, Adjustment
|
Surplus |
Surplus
Cumulative Effect, Period Of Adoption, Adjustment
|
Retained Earnings |
Retained Earnings
Cumulative Effect, Period Of Adoption, Adjustment
|
Retained Earnings
Series F Preferred Stock
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period Of Adoption, Adjustment
|
Treasury Stock |
Treasury Stock
Cumulative Effect, Period Of Adoption, Adjustment
|
Treasury Stock
Performance/Service Based RSAs, RSA,
|
Treasury Stock
Board Authorized Purchase Program [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2019 | $ 3,922,124 | $ 3,823,787 | $ 256,716 | $ 256,716 | $ 1,752 | $ 1,752 | $ 1,716,431 | $ 1,716,431 | $ 2,380,867 | $ 2,282,530 | $ (33,183) | $ (33,183) | $ (400,460) | $ (400,460) | |||||||||
Beginning balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 | (98,337) | ||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | 45,838 | 45,838 | |||||||||||||||||||||
Other comprehensive income (loss) | 16,209 | 16,209 | |||||||||||||||||||||
Comprehensive income | 62,046 | ||||||||||||||||||||||
Common stock issued | |||||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2,896 | (20,659) | 0 | 23,555 | |||||||||||||||||||
Purchase of treasury stock, | $ (5,555) | $ (71,255) | $ (5,555) | $ (71,255) | |||||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Common stock ($0.17 per share in 2019 and $0.18 per share in 2020) | (28,392) | (28,392) | |||||||||||||||||||||
Preferred stock(a) | (3,801) | (3,801) | |||||||||||||||||||||
Stock-based compensation expense, net | 10,744 | 10,744 | |||||||||||||||||||||
Ending balance at Mar. 31, 2020 | 3,790,471 | 256,716 | 1,752 | 1,706,516 | 2,296,176 | (16,974) | (453,714) | ||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.3828125 | $ 0.3359375 | $ 0.3671875 | ||||||||||||||||||||
Beginning balance at Dec. 31, 2019 | 3,922,124 | 3,823,787 | 256,716 | $ 256,716 | 1,752 | $ 1,752 | 1,716,431 | $ 1,716,431 | 2,380,867 | $ 2,282,530 | (33,183) | $ (33,183) | (400,460) | $ (400,460) | |||||||||
Beginning balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 | $ (98,337) | ||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | 239,769 | 239,769 | |||||||||||||||||||||
Other comprehensive income (loss) | 37,178 | 37,178 | |||||||||||||||||||||
Comprehensive income | 276,948 | ||||||||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Proceeds from issuance of preferred shares | 96,921 | ||||||||||||||||||||||
Ending balance at Sep. 30, 2020 | 4,045,433 | 353,637 | 1,752 | 1,717,186 | 2,424,992 | 3,995 | (456,129) | ||||||||||||||||
Beginning balance at Mar. 31, 2020 | 3,790,471 | 256,716 | 1,752 | 1,706,516 | 2,296,176 | (16,974) | (453,714) | ||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | 148,718 | 148,718 | |||||||||||||||||||||
Other comprehensive income (loss) | 15,054 | 15,054 | |||||||||||||||||||||
Comprehensive income | 163,772 | ||||||||||||||||||||||
Common stock issued | |||||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 173 | 1,523 | 0 | (1,350) | |||||||||||||||||||
Purchase of treasury stock, | 7 | 7 | |||||||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Common stock ($0.17 per share in 2019 and $0.18 per share in 2020) | (27,889) | (27,889) | |||||||||||||||||||||
Preferred stock(a) | (4,144) | (4,144) | |||||||||||||||||||||
Proceeds from issuance of preferred shares | 97,129 | 97,129 | |||||||||||||||||||||
Stock-based compensation expense, net | 4,939 | 4,939 | |||||||||||||||||||||
Ending balance at Jun. 30, 2020 | 4,024,457 | 353,846 | 1,752 | 1,712,978 | 2,412,859 | (1,920) | (455,057) | ||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | 0.3828125 | 0.3359375 | 0.3671875 | $ 0.0849931 | |||||||||||||||||||
Net income | 45,214 | 45,214 | |||||||||||||||||||||
Other comprehensive income (loss) | 5,916 | 5,916 | |||||||||||||||||||||
Comprehensive income | 51,130 | ||||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 95 | 706 | 0 | (610) | |||||||||||||||||||
Purchase of treasury stock, | (462) | (462) | |||||||||||||||||||||
Common stock ($0.17 per share in 2019 and $0.18 per share in 2020) | (27,875) | (27,875) | |||||||||||||||||||||
Preferred stock(a) | (5,207) | (5,207) | |||||||||||||||||||||
Proceeds from issuance of preferred shares | (208) | (208) | |||||||||||||||||||||
Stock-based compensation expense, net | 3,502 | 3,502 | |||||||||||||||||||||
Ending balance at Sep. 30, 2020 | 4,045,433 | 353,637 | 1,752 | 1,717,186 | 2,424,992 | 3,995 | (456,129) | ||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | 0.3828125 | 0.3359375 | 0.3671875 | 0.3515625 | |||||||||||||||||||
Beginning balance at Dec. 31, 2020 | 4,090,933 | 353,512 | 1,752 | 1,720,329 | 2,458,920 | 12,618 | (456,198) | ||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | 94,301 | 94,301 | |||||||||||||||||||||
Other comprehensive income (loss) | (16,811) | (16,811) | |||||||||||||||||||||
Comprehensive income | 77,490 | ||||||||||||||||||||||
Common stock issued | |||||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 10,556 | (16,986) | 27,542 | ||||||||||||||||||||
Purchase of treasury stock, | (3,593) | (17,973) | (3,593) | (17,973) | |||||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Common stock ($0.17 per share in 2019 and $0.18 per share in 2020) | (27,870) | (27,870) | |||||||||||||||||||||
Preferred stock(a) | (5,207) | (5,207) | |||||||||||||||||||||
Stock-based compensation expense, net | 3,444 | 3,444 | |||||||||||||||||||||
Ending balance at Mar. 31, 2021 | 4,127,780 | 353,512 | 1,752 | 1,706,786 | 2,520,144 | (4,193) | (450,222) | ||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | 0.3828125 | 0.3359375 | 0.3671875 | $ 0.3515625 | |||||||||||||||||||
Beginning balance at Dec. 31, 2020 | 4,090,933 | 353,512 | 1,752 | 1,720,329 | 2,458,920 | 12,618 | (456,198) | ||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | 274,117 | 274,117 | |||||||||||||||||||||
Other comprehensive income (loss) | (23,431) | (23,431) | |||||||||||||||||||||
Comprehensive income | 250,685 | ||||||||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Proceeds from issuance of preferred shares | 0 | ||||||||||||||||||||||
Ending balance at Sep. 30, 2021 | 3,994,961 | 193,195 | 1,752 | 1,711,867 | 2,628,421 | (10,813) | (529,461) | ||||||||||||||||
Beginning balance at Mar. 31, 2021 | 4,127,780 | 353,512 | 1,752 | 1,706,786 | 2,520,144 | (4,193) | (450,222) | ||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Net income | 91,007 | 91,007 | |||||||||||||||||||||
Other comprehensive income (loss) | 7,082 | 7,082 | |||||||||||||||||||||
Comprehensive income | 98,088 | ||||||||||||||||||||||
Common stock issued | |||||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 7,618 | (3,632) | 11,250 | ||||||||||||||||||||
Purchase of treasury stock, | (856) | (29,972) | (856) | 29,972 | |||||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Common stock ($0.17 per share in 2019 and $0.18 per share in 2020) | (27,822) | (27,822) | |||||||||||||||||||||
Preferred stock(a) | (4,875) | (4,875) | |||||||||||||||||||||
Stock-based compensation expense, net | 5,092 | 5,092 | |||||||||||||||||||||
Ending balance at Jun. 30, 2021 | 4,110,052 | 290,200 | 1,752 | 1,708,246 | 2,576,766 | 2,889 | (469,801) | ||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.3197115 | 0.3359375 | 0.3671875 | 0.3515625 | |||||||||||||||||||
Preferred Stock, Redemption Amount | (65,000) | (63,313) | (1,687) | ||||||||||||||||||||
Net income | 88,809 | 88,809 | |||||||||||||||||||||
Other comprehensive income (loss) | (13,702) | (13,702) | |||||||||||||||||||||
Comprehensive income | 75,107 | ||||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 455 | 6 | 449 | ||||||||||||||||||||
Purchase of treasury stock, | $ (112) | $ (59,998) | $ (112) | $ 59,998 | |||||||||||||||||||
Common stock ($0.17 per share in 2019 and $0.18 per share in 2020) | (30,546) | (30,546) | |||||||||||||||||||||
Preferred stock(a) | (4,155) | (4,155) | |||||||||||||||||||||
Stock-based compensation expense, net | 3,616 | 3,616 | |||||||||||||||||||||
Ending balance at Sep. 30, 2021 | 3,994,961 | 193,195 | $ 1,752 | $ 1,711,867 | 2,628,421 | $ (10,813) | $ (529,461) | ||||||||||||||||
Cash dividends | |||||||||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.2842548 | $ 0.3671875 | $ 0.3515625 | ||||||||||||||||||||
Preferred Stock, Redemption Amount | $ (99,458) | $ (97,004) | $ (2,454) |
Basis of Presentation |
9 Months Ended |
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Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and comprehensive income, changes in stockholders’ equity, and cash flows of the Corporation and Parent Company for the periods presented, and all such adjustments are of a normal recurring nature. The consolidated financial statements include the accounts of all subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Estimates that are particularly susceptible to significant change include the determination of the ACLL, goodwill impairment assessment, MSRs valuation, and income taxes. Management has evaluated subsequent events for potential recognition or disclosure. Within the tables presented, certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes.
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Acquisitions |
Dec. 11, 2020 |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions: The Corporation has not had any acquisitions during the first nine months of 2021. 2020 First Staunton Acquisition On February 14, 2020, the Corporation completed its acquisition of First Staunton. The purchase price was based on an assumed 4% deposit premium at announcement. The conversion of the branches was completed simultaneously with the close of the transaction, expanding the Bank's presence into nine new Metro-East St. Louis communities. As a result of the acquisition and other consolidations, a net of seven branch locations were added. The Corporation recorded $15 million in goodwill related to the First Staunton acquisition. Goodwill created by the acquisition is not tax deductible. The following table presents the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date related to the First Staunton acquisition:
For a description of methods used to determine the fair value of significant assets and liabilities presented on the balance sheet above, see Assumptions section of this Note. The Corporation has purchased loans with the First Staunton acquisition, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination (PCD). The carrying amount of those loans is as follows:
The Corporation acquired no PCD securities in connection with the acquisition. Assumptions Investment Securities: The fair value of investments on the date of acquisition was determined utilizing an external third party broker opinion of the market value. Loans: Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan, amortization status and current discount rates. For the non-credit (interest and liquidity) premium, loans were grouped together according to similar characteristics when applying various valuation techniques. For the credit discount, loans were also grouped based on whether they had more than insignificant deterioration in credit since origination. CDIs: This intangible asset represents the value of the relationships with deposit customers. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, alternative cost of funds, and the interest costs associated with customer deposits. The CDIs are being amortized on a straight-line basis over 10 years. Time Deposits: The fair value for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits. FHLB Borrowings: The fair value of FHLB advances is estimated based on quoted market prices for the instrument if available, or for similar instruments if not available, or by using discounted cash flow analyses, based on current incremental borrowing rates for similar types of instruments. Dispositions: 2021 On March 1, 2021, the Corporation closed on the sale of its wealth management subsidiary, Whitnell, to Rockefeller for a purchase price of $8 million. Associated reported a first quarter 2021 pre-tax gain of $2 million, included in asset gains (losses), net on the consolidated statements of income, in conjunction with the sale. On February 26, 2021, the Bank completed the sale of one branch located in Monroe, Wisconsin to Summit Credit Union. Under the terms of the transaction, Associated Bank sold $31 million in total deposits and no loans. Associated Bank received an approximately 4% purchase premium on deposits transferred. 2020 On June 30, 2020, the Corporation completed the sale of ABRC to USI for $266 million in cash. Associated recorded a second quarter 2020 pre-tax book gain of $163 million in conjunction with the sale. On December 11, 2020, the Bank completed the sale of five branches in Peoria, Illinois to Morton Community Bank. Under the terms of the transaction, the Bank sold $180 million in total deposits and no loans. Associated Bank received a 4% purchase premium on deposits transferred. With the sale of these branches, the Bank exited the Peoria market. On December 11, 2020, the Bank completed the sale of two branches in southwest Wisconsin to Royal Bank. Under the terms of the transaction, Associated Bank sold $53 million in total deposits and no loans. Associated Bank received a 4% purchase premium on deposits transferred in the Prairie du Chien and Richland Center branches.
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Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 3 Summary of Significant Accounting Policies The accounting and reporting policies of the Corporation conform to U.S. GAAP and to general practice within the financial services industry. A discussion of these policies can be found in Note 1 Summary of Significant Accounting Policies included in the Corporation’s 2020 Annual Report on Form 10-K. There have been no changes to the Corporation's significant accounting policies since December 31, 2020. New Accounting Pronouncements Adopted
Future Accounting Pronouncements There are no applicable material accounting pronouncements recently issued that have not yet been adopted by the Corporation.
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Earnings Per Common Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Earnings per common share are calculated utilizing the two-class method. Basic earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock awards). Presented below are the calculations for basic and diluted earnings per common share:
Non-dilutive common stock options of approximately 3 million and 8 million for the three months ended September 30, 2021 and 2020, respectively, and 3 million and 7 million for the nine months ended September 30, 2021 and 2020, respectively, were excluded from the earnings per common share calculation.
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Stock-Based Compensation |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The fair values of stock options and restricted stock awards (including restricted stock units) are amortized as compensation expense on a straight-line basis over the vesting period of the grants. For colleagues who meet the definition of retirement eligible under the 2017 Incentive Compensation Plan and the 2020 Incentive Compensation Plan, expenses related to stock options and restricted stock awards are fully recognized on the date the colleague meets the definition of normal or early retirement. Compensation expense recognized is included in personnel expense on the consolidated statements of income. Assumptions are used in estimating the fair value of stock options granted. The weighted average expected life of the stock option represents the period of time stock options are expected to be outstanding and is estimated using historical data of stock option exercises and forfeitures. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the implied volatility of the Corporation’s stock. The Corporation did not grant stock options in the first nine months of 2021. The following assumptions were used in estimating the fair value for options granted for the full year 2020:
A summary of the Corporation’s stock option activity for the nine months ended September 30, 2021 is presented below:
Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock option. For the nine months ended September 30, 2021, the intrinsic value of stock options exercised was $6 million compared to less than $1 million for the nine months ended September 30, 2020. For the nine months ended September 30, 2021, the total fair value of stock options vested was $3 million compared to $4 million for the nine months ended September 30, 2020. The Corporation recognized compensation expense for the vesting of stock options of $1 million for the nine months ended September 30, 2021, compared to $3 million for the nine months ended September 30, 2020. Included in compensation expense for 2021 was approximately $65,000 for the accelerated vesting of stock options granted to retirement eligible colleagues. At September 30, 2021, the Corporation had $2 million of unrecognized compensation expense related to stock options that is expected to be recognized over the remaining requisite service periods that extend predominately through the first quarter of 2024. The Corporation also has issued time-based and performance-based restricted stock awards under the 2017 Incentive Compensation Plan and subsequent 2020 Incentive Compensation Plan. Performance awards are based on performance goals of earnings per share and total shareholder return with vesting ranging from a minimum of 0% to a maximum of 150% of the target award. Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date. The following table summarizes information about the Corporation’s restricted stock awards activity for the nine months ended September 30, 2021:
(a) In thousands The Corporation amortizes the expense related to restricted stock awards as compensation expense over the vesting period specified in the grant's award agreement. Performance-based restricted stock awards granted during 2020 and 2021 will cliff-vest after the year performance period has ended. Service-based restricted stock awards granted during 2020 and 2021 will vest ratably over a period of four years. Expense for restricted stock awards issued of $11 million was recorded for the nine months ended September 30, 2021 and $15 million was recorded for the nine months ended September 30, 2020. Included in compensation expense for the first nine months of 2021 was $2 million of expense for the accelerated vesting of restricted stock awards granted to retirement eligible colleagues. The Corporation had $24 million of unrecognized compensation costs related to restricted stock awards at September 30, 2021 that are expected to be recognized over the remaining requisite service periods that extend predominately through the first quarter of 2025. The Corporation has the ability to issue shares from treasury or new shares upon the exercise of stock options or the granting of restricted stock awards. The Board of Directors has authorized management to repurchase shares of the Corporation’s common stock in the market, to be made available for issuance in connection with the Corporation’s employee incentive plans and for other corporate purposes. The repurchase of shares, if any, will be based on market and investment opportunities, capital levels, growth prospects, and regulatory constraints. Such repurchases may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchase programs, or similar facilities.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Investment securities are classified as AFS, HTM, or equity on the consolidated balance sheets at the time of purchase. The amortized cost and fair values of securities AFS and HTM at September 30, 2021 were as follows:
The amortized cost and fair values of securities AFS and HTM at December 31, 2020 were as follows:
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of investment securities AFS and HTM at September 30, 2021, are shown below:
On a quarterly basis, the Corporation refreshes the credit quality of each HTM security. The following table summarizes the credit quality indicators of HTM securities at amortized cost at September 30, 2021:
The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2020:
Investment securities gains (losses), net includes proceeds from the sale of investment securities as well as any applicable write-ups or write-downs of investment securities. The proceeds from the sale of investment securities for the three and nine months ended September 30, 2021 and 2020, are shown below:
During the second quarter of 2021, the Corporation sold $107 million of lower yielding FFELP student loan asset backed securities at a slight gain and reinvested the proceeds into higher yielding mortgage backed securities. During the first quarter of 2021, the Corporation sold $51 million of lower yielding U.S. Treasury and Agency securities at a slight loss to take advantage of the steeper yield curve by reinvesting the proceeds into similar but higher yielding, longer duration securities. During the second quarter of 2020, the Corporation sold $261 million of less liquid securities at a gain of $3 million, reinvesting the proceeds into more liquid securities in order to further improve portfolio liquidity. During the first quarter of 2020, the Corporation sold $281 million of primarily prepayment sensitive mortgage-related securities at a gain of $6 million. Additionally, in February 2020, the Corporation sold $84 million of certain securities acquired in the First Staunton acquisition that did not fit the parameters of the Corporation's current investment strategy. Investment securities with a carrying value of $2.2 billion and $1.6 billion at September 30, 2021 and December 31, 2020, respectively, were pledged to secure certain deposits or for other purposes as required or permitted by law. Accrued interest receivable on HTM securities totaled $12 million and $14 million at September 30, 2021 and December 31, 2020, respectively. Accrued interest receivable on AFS securities totaled $9 million and $8 million at September 30, 2021 and December 31, 2020, respectively. Accrued interest receivable on both HTM and AFS securities is included in interest receivable on the consolidated balance sheets. There was no interest income reversed for investments going into nonaccrual at both September 30, 2021 and 2020. A security is considered past due once it is 30 days past due under the terms of the agreement. At both September 30, 2021 and December 31, 2020, the Corporation had no past due HTM securities. The allowance for credit losses on HTM securities was approximately $49,000 at September 30, 2021 and approximately $67,000 at December 31, 2020, attributable entirely to the Corporation's municipal securities, included in investment securities HTM, net, at amortized cost on the consolidated balance sheets. The Corporation also holds U.S. Treasury, municipal and mortgage-related securities issued by the U.S. government or a GSE which are backed by the full faith and credit of the U.S. government and, as a result, no allowance for credit losses has been recorded related to these securities. The following represents gross unrealized losses and the related fair value of investment securities AFS and HTM, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at September 30, 2021:
For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities AFS and HTM, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2020:
The Corporation reviews the AFS investment securities portfolio on a quarterly basis to monitor its credit exposure. A determination as to whether a security’s decline in fair value is the result of credit risk takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Corporation may consider in this impairment analysis include the extent to which the security has been in an unrealized loss position, the change in security rating, financial condition and near-term prospects of the issuer, as well as the security and industry specific economic conditions. Based on the Corporation’s evaluation, management does not believe any unrealized losses at September 30, 2021 represent credit deterioration as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions. The U.S. Treasury 3 year and 5 year rates increased by 36 bp and 62 bp, respectively, from December 31, 2020. The Corporation does not intend to sell nor does it believe that it will be required to sell the securities in an unrealized loss position before recovery of their amortized cost basis. FHLB and Federal Reserve Bank stocks: The Corporation is required to maintain Federal Reserve Bank stock and FHLB stock as a member of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to amortized cost. The Corporation had FHLB stock of $82 million at both September 30, 2021 and December 31, 2020. The Corporation had Federal Reserve Bank stock of $87 million at both September 30, 2021 and December 31, 2020. Accrued interest receivable on FHLB stock totaled approximately $974,000 and $972,000 at September 30, 2021 and December 31, 2020, respectively. There was $327,000 accrued interest receivable on Federal Reserve Bank stock at September 30, 2021 and none at December 31, 2020. Accrued interest receivable on both FHLB stock and Federal Reserve Bank stock is included in interest receivable on the consolidated balance sheets. Equity Securities Equity securities with readily determinable fair values: The Corporation's portfolio of equity securities with readily determinable fair values is primarily comprised of CRA Qualified Investment mutual funds and a money market mutual fund. At September 30, 2021 and December 31, 2020, the Corporation had equity securities with readily determinable fair values of $4 million and $2 million, respectively. Equity securities without readily determinable fair values: The Corporation's portfolio of equity securities without readily determinable fair values primarily consists of 77,996 Visa Class B restricted shares, 77,000 of which the Corporation received in 2008 as part of Visa's initial public offering and carried at fair value after the Corporation donated 42,039 Visa Class B restricted shares to the Corporation's Charitable Remainder Trust during the second quarter of 2019, with the subsequent sale of those shares resulting in an observable market price after the shares were previously carried at a zero cost basis. During the first quarter of 2020, the Corporation acquired 996 Visa Class B restricted shares from the acquisition of First Staunton, and those shares are carried at a zero cost basis due to the lack of an observable market price since the time of acquisition. The Corporation had equity securities without readily determinable fair values of $14 million at September 30, 2021 and $13 million at December 31, 2020
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Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The period end loan composition was as follows:
Accrued interest receivable on loans totaled $57 million at September 30, 2021, and $66 million at December 31, 2020, and is included in interest receivable on the consolidated balance sheets. Interest accrued but not received for loans placed on nonaccrual is reversed against interest income. The amount of accrued interest reversed totaled approximately $91,000 and $329,000 for the three and nine months ended September 30, 2021, respectively, and $1 million and $2 million for the three and nine months ended September 30, 2020, respectively. The following table presents commercial and consumer loans by credit quality indicator by vintage year at September 30, 2021:
(a) Revolving loans converted to term loans are also reported in their year of origination. (b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans. (c) Accruing TDRs are included in pass unless otherwise rated as special mention. The following table presents commercial and consumer loans by credit quality indicator by vintage year at December 31, 2020:
(a) Revolving loans converted to term loans are also reported in their year of origination. (b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans. (c) Accruing TDRs are included in pass unless otherwise rated as special mention. Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, and appropriate policies for allowance for loan losses, allowance for unfunded commitments, nonaccrual loans, and charge offs. For commercial loans, management has determined the pass credit quality indicator to include credits exhibiting acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits performing in accordance with the original contractual terms. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that warrant specific attention from management. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Potential problem loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses, which may jeopardize liquidation of the debt, and are characterized by the distinct possibility the Corporation will sustain some loss if the deficiencies are not corrected. Management has determined commercial loan relationships in nonaccrual status, and commercial and consumer loan relationships with their terms restructured in a TDR, meet the criteria to be individually evaluated. Commercial loans classified as special mention, potential problem, and nonaccrual are reviewed at a minimum on a quarterly basis, while pass credits, which are performing rated credits, are generally reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted. The following table presents loans by past due status at September 30, 2021:
(a) Any loans deferred in connection with the COVID-19 pandemic are considered current in accordance with Section 4013 of the CARES Act. (b) Of the total nonaccrual loans, $83 million, or 62%, were current with respect to payment at September 30, 2021. (c) No interest income was recognized on nonaccrual loans for the three and nine months ended September 30, 2021. In addition, there were $11 million of nonaccrual loans for which there was no related ACLL at September 30, 2021. The following table presents loans by past due status at December 31, 2020:
(a) Any loans deferred in connection with the COVID-19 pandemic are considered current in accordance with Section 4013 of the CARES Act. (b) Of the total nonaccrual loans, $128 million, or 61%, were current with respect to payment at December 31, 2020. (c) No interest income was recognized on nonaccrual loans for the year ended December 31, 2020. In addition, there were $28 million of nonaccrual loans for which there was no related ACLL at December 31, 2020. Troubled Debt Restructurings Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The following table presents nonaccrual and performing restructured loans by loan portfolio:
(b) Does not include any restructured loans related to the COVID-19 pandemic in accordance with Section 4013 of the CARES Act. The Corporation had a recorded investment of $14 million in loans modified as TDRs during the nine months ended September 30, 2021, of which $7 million were in accrual status, included in pass or special mention based on their risk rating within the credit quality tables, and $7 million were in nonaccrual within the credit quality tables, pending a sustained period of repayment. Short-term loan modifications made in good faith to help ease the adverse effects of the COVID-19 pandemic are not categorized as TDRs in accordance with the CARES Act. The following table provides the number of loans modified in a TDR by loan portfolio, the recorded investment, and unpaid principal balance for the nine months ended September 30, 2021 and 2020:
(b) Represents pre-modification outstanding recorded investment. Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure (A/B Note), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some combination of these concessions. During the nine months ended September 30, 2021, restructured loan modifications of commercial loans primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of consumer loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the nine months ended September 30, 2021. The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the nine months ended September 30, 2021 and 2020, and the recorded investment in these restructured loans as of September 30, 2021 and 2020:
All loans modified in a TDR are individually evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a subsequent payment default, are considered in the determination of an appropriate level of the ACLL. The Corporation analyzes loans for classification as a probable TDR. This analysis includes identifying customers that are showing possible liquidity issues in the near term without reasonable access to alternative sources of capital. At September 30, 2021, the Corporation had $17 million in loans meeting this classification compared to $68 million at December 31, 2020. Of the loans classified as probable TDRs at September 30, 2021, the entire $17 million was related to the oil and gas portfolio. Allowance for Credit Losses on Loans The ACLL is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the ACLL represents management’s estimate of an amount appropriate to provide for expected lifetime credit losses in the loan portfolio at the balance sheet date. The expected lifetime credit losses are the product of multiplying the Corporation's estimates of probability of default, loss given default, and the individual loan level exposure at default on an undiscounted basis. A main factor in the determination of the ACLL is the economic forecast. The Corporation utilized Moody's baseline forecast, updated during September 2021, in the allowance model. The forecast is applied over a 2 year reasonable and supportable period with straight-line reversion to the historical losses over the second year of the period. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). See Note 12 for additional information on the change in the allowance for unfunded commitments. The following table presents a summary of the changes in the ACLL by portfolio segment for the nine months ended September 30, 2021:
The following table presents a summary of the changes in the ACLL by portfolio segment for the year ended December 31, 2020:
(a) Includes auto Loans Acquired in Acquisitions Loans acquired in a business combination after January 1, 2020 are recorded in accordance with ASC Topic 326. See Note 2 for more information on loans acquired in a business combination. After January 1, 2020, acquired loans were segregated into two types: •Non-PCD loans are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not show evidence of credit deterioration since origination. The allowance for loan losses on these loans is recorded through provision for credit losses on the consolidated statements of income at acquisition. •PCD loans are loans demonstrating more than insignificant credit deterioration and are accounted for in accordance with ASC Topic 326-30. Under this guidance, the credit mark on acquired assets grosses up the ACLL and the amortized cost of the loan.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill is not amortized but is instead subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Corporation conducted its most recent annual impairment testing in May 2021, utilizing a qualitative assessment. Factors that management considered in this assessment included macroeconomic conditions, industry and market considerations, overall financial performance of the Corporation and each reporting unit (both current and projected), changes in management strategy, and changes in the composition or carrying amount of net assets. In addition, management considered the changes in both the Corporation's common stock price and in the overall bank common stock index (based on the S&P 400 Regional Bank Sub-Industry Index), as well as the Corporation's earnings per common share trend over the past year. Based on these assessments, management concluded that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for each reporting unit. Therefore a step one quantitative analysis was not required. There have been no events since the May 2021 impairment test that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in 2020 or the first nine months of 2021. At both September 30, 2021 and December 31, 2020, the Corporation had goodwill of $1.1 billion. During the first quarter of 2021, there was a reduction of $4 million of goodwill related to the sale of Whitnell. Other Intangible Assets The Corporation has other intangible assets that are amortized, consisting of CDIs and MSRs. For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:
Mortgage Servicing Rights The Corporation sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. MSRs are amortized in proportion to and over the period of estimated net servicing income and assessed for impairment at each reporting date. The Corporation evaluates its MSRs asset for impairment at minimum on a quarterly basis. Impairment is assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall, prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation reserve. Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the MSRs asset generally increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the MSRs exceeds the estimated fair value by stratification. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs asset and valuation allowance, precluding subsequent recoveries. See Note 12 for a discussion of the recourse provisions on sold residential mortgage loans. See Note 13 which further discusses fair value measurement relative to the MSRs asset. A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance is as follows:
(a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net on the consolidated statements of income. The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of September 30, 2021. The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future amortization expense for amortizing intangible assets:
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Short and Long-Term Funding |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short and Long-Term Funding | Short and Long-Term Funding The following table presents the components of short-term funding (funding with original contractual maturities of one year or less) and long-term funding (funding with original contractual maturities greater than one year):
Securities Sold Under Agreements to Repurchase The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). The Corporation utilizes securities sold under agreements to repurchase to facilitate the needs of its customers. As of September 30, 2021, the Corporation pledged agency mortgage-related securities with a fair value of $364 million as collateral for the repurchase agreements. Securities pledged as collateral under repurchase agreements are maintained with the Corporation's safekeeping agents and are monitored on a daily basis due to the market risk of fair value changes in the underlying securities. The Corporation generally pledges excess securities to ensure there is sufficient collateral to satisfy short-term fluctuations in both the repurchase agreement balances and the fair value of the underlying securities. The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets as of September 30, 2021 and December 31, 2020 are presented in the following table:
Senior Notes In August 2018, the Bank issued $300 million of senior notes, due August 2021, and callable July 2021. The senior notes had a fixed coupon interest rate of 3.50% and were issued at a discount. The Bank redeemed all of the senior notes on July 13, 2021, the initial redemption date under the terms of the notes. Subordinated Notes In November 2014, the Corporation issued $250 million of 10-year subordinated notes, due January 2025, and callable October 2024. The subordinated notes have a fixed coupon interest rate of 4.25% and were issued at a discount. Finance Leases In connection with the construction of a new branch in Oshkosh, Wisconsin, the Corporation entered into a land lease with the option to purchase the underlying land for a fixed price, which the Corporation now expects to exercise. The finance lease has a fixed interest rate of 1.07%. See Note 18 for additional disclosure regarding the Corporation’s leases.
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Derivative and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative and Hedging Activities | Derivative and Hedging Activities The Corporation is exposed to certain risk arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation's known or expected cash receipts and its known or expected cash payments principally related to the Corporation's assets. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. The Corporation is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. To mitigate the counterparty risk, contracts generally contain language outlining collateral pledging requirements for each counterparty. For non-centrally cleared derivatives, collateral must be posted when the market value exceeds certain mutually agreed upon threshold limits. Securities and cash are often pledged as collateral. The Corporation pledged $78 million and $72 million of investment securities as collateral at September 30, 2021, and December 31, 2020, respectively. At September 30, 2021, the Corporation posted $18 million of cash collateral compared to $31 million at December 31, 2020. Federal regulations require the Corporation to clear all LIBOR interest rate swaps through a clearing house, if possible. For derivatives cleared through central clearing houses, the variation margin payments are legally characterized as daily settlements of the derivative rather than collateral. The Corporation's clearing agent for interest rate derivative contracts that are centrally cleared through the Chicago Mercantile Exchange (CME) and the London Clearing House (LCH) settles the variation margin daily. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting and financial reporting purposes. Depending on the net position, the fair value is reported in other assets or accrued expenses and other liabilities on the consolidated balance sheets. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument. Derivatives to Accommodate Customer Needs The Corporation facilitates customer borrowing activity by entering into various derivative contracts which are designated as free standing derivative contracts. Free standing derivative products are entered into primarily for the benefit of commercial customers seeking to manage their exposures to interest rate risk, foreign currency, and commodity prices. These derivative contracts are not designated against specific assets and liabilities on the consolidated balance sheets or forecasted transactions and, therefore, do not qualify for hedge accounting treatment. Such derivative contracts are carried at fair value in other assets and accrued expenses and other liabilities on the consolidated balance sheets with changes in the fair value recorded as a component of capital markets, net, and typically include interest rate-related instruments (swaps and caps), foreign currency exchange forwards, and commodity contracts. See Note 11 for additional information and disclosures on balance sheet offsetting. Interest rate-related instruments: The Corporation provides interest rate risk management services to commercial customers, primarily forward interest rate swaps and caps. The Corporation’s market risk from unfavorable movements in interest rates related to these derivative contracts is generally economically hedged by concurrently entering into offsetting derivative contracts. The offsetting derivative contracts have identical notional values, terms, and indices. Foreign currency exchange forwards: The Corporation provides foreign currency exchange services to customers, primarily forward contracts. The Corporation's customers enter into a foreign currency exchange forward with the Corporation as a means for them to mitigate exchange rate risk. The Corporation mitigates its risk by then entering into an offsetting foreign currency exchange derivative contract. Commodity contracts: Commodity contracts are entered into primarily for the benefit of commercial customers seeking to manage their exposure to fluctuating commodity prices. The Corporation mitigates its risk by then entering into an offsetting commodity derivative contract. Mortgage Derivatives Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets with the changes in fair value recorded as a component of mortgage banking, net on the consolidated statements of income. The following table presents the total notional amounts and gross fair values of the Company’s derivatives, as well as the balance sheet netting adjustments as of September 30, 2021 and December 31, 2020. The derivative assets and liabilities are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. Total derivative assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of September 30, 2021 and December 31, 2020. The resulting net derivative asset and liability fair values are included in other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets.
(b) Includes approximately $972,000 forward commitment fair value. The Corporation terminated its $500 million fair value hedge during the fourth quarter of 2019. At September 30, 2021, the amortized cost basis of the closed portfolios which had previously been used in the terminated hedging relationship was $446 million and is included in loans on the consolidated balance sheets. This amount includes $2 million of hedging adjustments on the discontinued hedging relationships. The table below identifies the effect of fair value hedge accounting on the Corporation's consolidated statements of income for the three and nine months ended September 30, 2021 and 2020:
The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income for the three and nine months ended September 30, 2021 and 2020:
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Balance Sheet Offsetting |
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Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Offsetting | Balance Sheet Offsetting Interest Rate-Related Instruments, Commodity Contracts, and Foreign Exchange Forwards (“Interest, Commodity, and Foreign Exchange Agreements”) The Corporation enters into interest rate-related instruments to facilitate the interest rate risk management strategies of commercial customers, commodity contracts to manage commercial customers' exposure to fluctuating commodity prices, and foreign exchange forwards to manage customers' exposure to fluctuating foreign exchange rates. The Corporation mitigates these risks by entering into equal and offsetting agreements with highly rated third-party financial institutions. The Corporation is party to master netting arrangements with its financial institution counterparties that create single net settlements of all legal claims or obligations to pay or receive the net amount of settlement of the individual interest, commodity, and foreign exchange agreements. Collateral, usually in the form of investment securities and cash, is posted by the counterparty with net liability positions in accordance with contract thresholds. Derivatives subject to a legally enforceable master netting agreement are reported on a net basis, net of cash collateral, in other assets and accrued expenses and other liabilities, on the face of the consolidated balance sheets. See Note 10 for additional information on the Corporation’s derivative and hedging activities. The following table presents the interest rate, commodity, and foreign exchange assets and liabilities subject to an enforceable master netting arrangement. The interest, commodity and foreign exchange agreements the Corporation has with its commercial customers are not subject to an enforceable master netting arrangement and are therefore excluded from this table:
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Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters | Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters The Corporation utilizes a variety of financial instruments in the normal course of business to meet the financial needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments include lending-related and other commitments (see below) as well as derivative instruments (see Note 10). The following is a summary of lending-related commitments:
current fair value, or the fair value is based on fees currently charged to enter into similar agreements and was not material at September 30, 2021 or December 31, 2020. (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10. (c) The Corporation has established a liability of $3 million for both September 30, 2021 and December 31, 2020, as an estimate of the fair value of these financial instruments. Lending-related Commitments As a financial services provider, the Corporation routinely enters into commitments to extend credit. Such commitments are subject to the same credit policies and approval process accorded to loans made by the Corporation, with each customer’s creditworthiness evaluated on a case-by-case basis. The commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contractual amount of those instruments. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Since a significant portion of commitments to extend credit are subject to specific restrictive loan covenants or may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. An allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded commitments (including unfunded loan commitments and letters of credit). The following table presents a summary of the changes in the allowance for unfunded commitments:
Lending-related commitments include commitments to extend credit, commitments to originate residential mortgage loans held for sale, commercial letters of credit, and standby letters of credit. Commitments to extend credit are legally binding agreements to lend to customers at predetermined interest rates, as long as there is no violation of any condition established in the contracts. Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s derivative and hedging activity is further described in Note 10. Commercial and standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Other Commitments The Corporation invests in qualified affordable housing projects, federal and state historic projects, new market projects, and opportunity zone funds for the purpose of community reinvestment and obtaining tax credits and other tax benefits. Return on the Corporation's investment in these projects and funds comes in the form of the tax credits and tax losses that pass through to the Corporation, and deferral or elimination of capital gain recognition for tax purposes. The aggregate carrying value of these investments at September 30, 2021 was $277 million, compared to $272 million at December 31, 2020, included in tax credit and other investments on the consolidated balance sheets. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects. Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $24 million and $18 million for the nine months ended September 30, 2021 and 2020, respectively, and $8 million and $6 million for the three months ended September 30, 2021 and 2020, respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $270 million at September 30, 2021 and $268 million at December 31, 2020. The Corporation’s unfunded equity contributions relating to investments in federal and state qualified affordable housing and federal and state historic projects are recorded in accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s remaining unfunded equity contributions totaled $101 million and $118 million at September 30, 2021 and December 31, 2020, respectively. For the nine months ended September 30, 2021 and the year ended December 31, 2020, the Corporation did not record any impairment related to qualified affordable housing investments. The Corporation has principal investment commitments to provide capital-based financing to private and public companies through either direct investment in specific companies or through investment funds and partnerships. The timing of future cash requirements to fund such principal investment commitments is generally dependent on the investment cycle, whereby privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, which can vary based on overall market conditions, as well as the nature and type of industry in which the companies operate. The Corporation also invests in loan pools that support CRA loans. The timing of future cash requirements to fund these pools is dependent upon loan demand, which can vary over time. The aggregate carrying value of these investments was $24 million and $25 million at September 30, 2021 and December 31, 2020, respectively, included in tax credit and other investments on the consolidated balance sheets. Legal Proceedings The Corporation is party to various pending and threatened claims and legal proceedings arising in the normal course of business activities, some of which involve claims for substantial amounts. Although there can be no assurance as to the ultimate outcomes, the Corporation believes it has meritorious defenses to the claims asserted against it in its currently outstanding matters and intends to continue to defend itself vigorously with respect to such legal proceedings. The Corporation will consider settlement of cases when, in management’s judgment, it is in the best interests of the Corporation and its shareholders. On at least a quarterly basis, the Corporation assesses its liabilities and contingencies in connection with all pending or threatened claims and litigation, utilizing the most recent information available. On a matter by matter basis, an accrual for loss is established for those matters which the Corporation believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated. Once established, each accrual is adjusted as appropriate to reflect any subsequent developments. Accordingly, management’s estimate will change from time to time, and actual losses may be more or less than the current estimate. For matters where a loss is not probable, or the amount of the loss cannot be estimated, no accrual is established. Resolution of legal claims is inherently unpredictable, and in many legal proceedings various factors exacerbate this inherent unpredictability, including where the damages sought are unsubstantiated or indeterminate, it is unclear whether a case brought as a class action will be allowed to proceed on that basis, discovery is not complete, the proceeding is not yet in its final stages, the matters present legal uncertainties, there are significant facts in dispute, there are a large number of parties (including where it is uncertain how liability, if any, will be shared among multiple defendants), or there is a wide range of potential results. A lawsuit, Evans et al v. Associated Banc-Corp et al, was filed in the United States District Court for the Eastern District of Wisconsin - Green Bay Division on January 13, 2021 by one current and one former participant in the Associated Banc-Corp 401(k) and Employee Stock Ownership Plan (the “Plan”) as representatives of a putative class. The plaintiffs alleged that Associated Banc-Corp, the Associated Banc-Corp Plan Administrative Committee, and current and past members of such committee during the relevant time period (the “Defendants”) breached their fiduciary duties with respect to the Plan in violation of Employee Retirement Income Security Act of 1974, as amended, by applying an imprudent and inappropriate preference for products associated with Associated Banc-Corp within the Plan, and that the Defendants failed to monitor or control the recordkeeping expenses paid to Associated Trust Company, N.A. On March 18, 2021, the Defendants filed a motion to dismiss. On April 8, 2021, the plaintiffs filed an amended complaint which dropped the record keeping claim, added Associated Trust Company N.A. and Kellogg Asset Management, LLC as defendants, and alleged various breaches of fiduciary duty related to the selection and monitoring of, and the fees charged by, proprietary collective investment trusts. The plaintiffs, in part, seek an accounting and disgorgement of certain profits, as well as certain equitable restitution and equitable monetary relief. The Corporation intends to vigorously defend against this lawsuit. It is not possible for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss at this time with respect to this lawsuit. Regulatory Matters A variety of consumer products, including mortgage and deposit products, and certain fees and charges related to such products, have come under increased regulatory scrutiny. It is possible that regulatory authorities could bring enforcement actions, including civil money penalties, or take other actions against the Corporation and the Bank in regard to these consumer products. The Bank could also determine of its own accord, or be required by regulators, to refund or otherwise make remediation payments to customers in connection with these products. It is not possible at this time for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss related to such matters. Mortgage Repurchase Reserve The Corporation sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under the Corporation's usual underwriting procedures, and are most often sold on a nonrecourse basis, primarily to the GSEs. The Corporation’s agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability. Subsequent to being sold, if a material underwriting deficiency or documentation defect is discovered, the Corporation may be obligated to repurchase the loan or reimburse the GSEs for losses incurred (collectively, “make whole requests”). The make whole requests and any related risk of loss under the representations and warranties are largely driven by borrower performance. Additionally, beginning in the third quarter of 2021, qualifying residential mortgage loans guaranteed by U.S. government agencies have been sold into GNMA pools. As a result of make whole requests, the Corporation has repurchased loans with aggregate principal balances of $6 million and $10 million for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively. There were approximately $114,000 of loss reimbursement and settlement claims paid for the nine months ended September 30, 2021 and there were no such claims for the year ended December 31, 2020. Make whole requests during 2020 and the first nine months of 2021 generally arose from loans sold during the period of January 1, 2012 to December 31, 2020. Since January 1, 2012, loans sold totaled $15.7 billion at the time of sale, and consisted primarily of loans sold to GSEs. As of September 30, 2021, $6.5 billion of these sold loans remain outstanding. The balance in the mortgage repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Corporation could incur from repurchasing a loan, as well as loss reimbursements, indemnifications, and other settlement resolutions. The mortgage repurchase reserve, included in accrued expenses and other liabilities on the consolidated balance sheets, was $1 million as of September 30, 2021 and $2 million as of December 31, 2020. The Corporation may also sell residential mortgage loans with limited recourse (limited in that the recourse period ends prior to the loan’s maturity, usually after certain time and / or loan paydown criteria have been met), whereby repurchase could be required if the loan had defined delinquency issues during the limited recourse periods. At September 30, 2021 and December 31, 2020, there were $27 million and $36 million, respectively, of residential mortgage loans sold with such recourse risk. There have been limited instances and immaterial historical losses on repurchases for recourse under the limited recourse criteria. The Corporation has a subordinate position to the FHLB in the credit risk on residential mortgage loans it sold to the FHLB in exchange for a monthly credit enhancement fee. The Corporation has not sold loans to the FHLB with such credit risk retention since February 2005. At September 30, 2021 and December 31, 2020, there were $26 million and $33 million, respectively, of such residential mortgage loans with credit risk recourse, upon which there have been negligible historical losses to the Corporation.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value represents the estimated price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept). The valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis are described in the Fair Value Measurements note in the Corporation’s 2020 Annual Report on Form 10-K. The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall:
same counterparty where there is a legally enforceable master netting agreement in place. The table below presents a rollforward of the consolidated balance sheets amounts for the nine months ended September 30, 2021 and the year ended December 31, 2020, for the Corporation's mortgage derivatives measured on a recurring basis and classified within Level 3 of the fair value hierarchy:
The closing ratio on interest rate lock commitments to originate residential mortgage loans held for sale is a Level 3 measurement, and was 82% at September 30, 2021. The following table presents the carrying value of equity securities without readily determinable fair values still held as of September 30, 2021 that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of September 30, 2021:
The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall:
(b) If the fair value of the collateral exceeds the carrying amount of the asset, no charge off or adjustment is necessary, the asset is not considered to be carried at fair value, and is therefore not included in the table. (c) Includes the full year impact on the consolidated statements of income (d) When a property's value is written down at the time it is transferred to OREO, the charge off is booked to the provision for credit losses. When a property is already in OREO and subsequently written down, the charge off is booked to other noninterest expense. Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a nonrecurring basis include the fair value analysis in the goodwill impairment test as well as intangible assets and other nonfinancial long-lived assets measured at fair value for the purpose of impairment assessment. The Corporation's significant Level 3 measurements which employ unobservable inputs that are readily quantifiable pertain to MSRs and individually evaluated loans. The table below presents information about these inputs and further discussion is found above:
Fair Value of Financial Instruments The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for the Corporation’s financial instruments:
same counterparty where there is a legally enforceable master netting agreement in place. (b) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value. (c) The commitment on standby letters of credit was $264 million at September 30, 2021 and $279 million at December 31, 2020. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. |
Retirement Plans |
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | Retirement Plans The Corporation has a noncontributory defined benefit RAP, covering substantially all employees who meet participation requirements. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes. The Corporation also provides legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans. The First Staunton acquisition closed on February 14, 2020, and the employees who met the required criteria became eligible to participate in the RAP on February 15, 2020, with their vesting service credit based on their prior hours of service with First Staunton. See Note 2 for additional information on the First Staunton acquisition. The components of net periodic pension cost and net periodic benefit cost for the RAP and Postretirement Plan for the three and nine months ended September 30, 2021 and 2020 were as follows:
The components of net periodic pension cost and net periodic benefit cost, other than the service cost component, are included in the line item other of noninterest expense on the consolidated statements of income. The service cost components are included in personnel on the consolidated statements of income. The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. There were no contributions during the nine months ended September 30, 2021 and 2020.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Corporation utilizes a risk-based internal profitability measurement system to provide strategic business unit reporting. The profitability measurement system is based on internal management methodologies designed to produce consistent results and reflect the underlying economics of the units. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer, and the distribution of those products and services are similar. The three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. The financial information of the Corporation’s segments has been compiled utilizing the accounting policies described in the Corporation’s 2020 Annual Report on Form 10-K with certain exceptions. The more significant of these exceptions are described herein. The reportable segment results are presented based on the Corporation's internal management accounting process. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to U.S. GAAP. As a result, reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in previously reported segment financial data. Additionally, the information presented is not indicative of how the segments would perform if they operated as independent entities. To determine financial performance of each segment, the Corporation allocates FTP assignments, the provision for credit losses, certain noninterest expenses, income taxes, and equity to each segment. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised, the interest rate environment evolves, and business or product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically reviewed. The Corporation allocates net interest income using an internal FTP methodology that charges users of funds (assets) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment and / or re-pricing characteristics of the assets and liabilities. The net effect of this allocation is offset in the Risk Management and Shared Services segment to ensure consolidated totals reflect the Corporation's net interest income. The net FTP allocation is reflected as net intersegment interest income (expense) in the accompanying tables. A provision for credit losses is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an ACLL model using the methodologies described in the Corporation’s 2020 Annual Report on Form 10-K. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect expenses incurred by certain centralized support areas are allocated to segments based on actual usage (for example, volume measurements) and other criteria. Certain types of administrative expense and bank-wide expense accruals (including amortization of CDIs and other intangible assets associated with acquisitions, acquisition-related costs, and asset gains on disposed business units) are generally not allocated to segments. Income taxes are allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses. Equity is allocated to the segments based on regulatory capital requirements and in proportion to an assessment of the inherent risks associated with the business of the segment (including interest, credit and operating risk). A brief description of each business segment is presented below. A more in-depth discussion of these segments can be found in the Segment Reporting note in the Corporation’s 2020 Annual Report on Form 10-K. The Corporate and Commercial Specialty segment serves a wide range of customers including larger businesses, developers, not-for-profits, municipalities, and financial institutions by providing lending and deposit solutions as well as the support to deliver, fund, and manage such banking solutions. In addition, this segment provides a variety of investment, fiduciary, and retirement planning products and services to individuals and small to mid-sized businesses. During the first quarter of 2021, the Corporation sold its wealth management subsidiary Whitnell. The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses, by providing lending and deposit solutions. In addition, until June 30, 2020, the Corporation offered insurance and risk consulting services. The Risk Management and Shared Services segment includes key shared operational functions and also includes residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (FTP mismatches) and credit risk and provision residuals (long-term credit charge mismatches). Information about the Corporation’s segments is presented below:
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables summarize the components of accumulated other comprehensive income (loss) at September 30, 2021 and 2020, including changes during the preceding three and nine month periods as well as any reclassifications out of accumulated other comprehensive income (loss):
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Revenue from Contracts with Customers |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | Revenue from Contracts with Customers Revenue from contracts with customers is recognized when obligations under the terms of a contract with the Corporation's customer are satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. We do not have any material significant payment terms as payment is received at or shortly after the satisfaction of the performance obligation. The Corporation's disaggregated revenue by major source is presented below:
(a) Certain card-based fees are out-of-scope of Topic 606. (b) For the nine months ended September 30, 2021, the Corporation recognized a $2 million pre-tax gain on the sale of Whitnell. (c) For the nine months ended September 30, 2020, the Corporation recognized a $163 million pre-tax gain on the sale of ABRC. Below is a listing of performance obligations for the Corporation's main revenue streams:
(a) Certain card-based fees are out-of-scope of Topic 606. (b) Trust and asset management fees and brokerage and advisory fees are included in wealth management fees.
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Leases |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Corporation has operating leases for retail and corporate offices, land, and equipment. The Corporation also has a finance lease for land. These leases have original terms of 1 year or longer with remaining maturities up to 41 years, some of which include options to extend the lease term. An analysis of the lease options has been completed and any purchase options or optional periods that the Corporation is reasonably likely to extend have been included in the capitalization. The discount rate used to capitalize the operating leases is the Corporation's FHLB borrowing rate on the date of lease commencement. When determining the rate to discount specific lease obligations, the repayment period and term are considered. Operating and finance lease costs and cash flows resulting from these leases are presented below:
The lease classifications on the consolidated balance sheets were as follows:
The lease payment obligations, weighted-average remaining lease term, and weighted-average original discount rate were as follows:
Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows: As of September 30, 2021 and December 31, 2020, additional operating leases, primarily retail and corporate offices, that had not yet commenced totaled $16 million and $17 million, respectively. The leases that had not yet commenced as of September 30, 2021, will commence between October 2021 and October 2023 with lease terms of 1 year to 6 years.
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Summary of Significant Accounting Policies (Policies) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted
Future Accounting Pronouncements There are no applicable material accounting pronouncements recently issued that have not yet been adopted by the Corporation.
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Acquisitions Acquisitions (Tables) |
Feb. 14, 2020 |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The following table presents the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date related to the First Staunton acquisition:
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Financing Receivable, Purchased With Credit Deterioration | The carrying amount of those loans is as follows:
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Earnings Per Common Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculations for basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share:
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Stock-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions of stock options | The following assumptions were used in estimating the fair value for options granted for the full year 2020:
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Summary of company's stock option activities | A summary of the Corporation’s stock option activity for the nine months ended September 30, 2021 is presented below:
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Summary of restricted stock awards activity (excluding salary shares) | The following table summarizes information about the Corporation’s restricted stock awards activity for the nine months ended September 30, 2021:
(a) In thousands
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Investment Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale | The amortized cost and fair values of securities AFS and HTM at September 30, 2021 were as follows:
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Investment securities held to maturity | The amortized cost and fair values of securities AFS and HTM at September 30, 2021 were as follows:
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Amortized cost and fair values of investment securities by contractual maturity | The expected maturities of investment securities AFS and HTM at September 30, 2021, are shown below:
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Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table summarizes the credit quality indicators of HTM securities at amortized cost at September 30, 2021:
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Realized gains and losses and proceeds from sale | The proceeds from the sale of investment securities for the three and nine months ended September 30, 2021 and 2020, are shown below:
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Unrealized losses and fair value of available for sale and held to maturity securities, by investment category and time length | The following represents gross unrealized losses and the related fair value of investment securities AFS and HTM, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at September 30, 2021:
For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities AFS and HTM, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2020:
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Loans Loans (Tables) |
9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 |
Dec. 31, 2020 |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan composition | The period end loan composition was as follows:
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Commercial and consumer loans by credit quality indicator | he following table presents commercial and consumer loans by credit quality indicator by vintage year at September 30, 2021:
(a) Revolving loans converted to term loans are also reported in their year of origination. (b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans. (c) Accruing TDRs are included in pass unless otherwise rated as special mention. The following table presents commercial and consumer loans by credit quality indicator by vintage year at December 31, 2020:
(a) Revolving loans converted to term loans are also reported in their year of origination. (b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans. (c) Accruing TDRs are included in pass unless otherwise rated as special mention.
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Summarized details of Loans | The following table presents loans by past due status at September 30, 2021:
(a) Any loans deferred in connection with the COVID-19 pandemic are considered current in accordance with Section 4013 of the CARES Act. (b) Of the total nonaccrual loans, $83 million, or 62%, were current with respect to payment at September 30, 2021. (c) No interest income was recognized on nonaccrual loans for the three and nine months ended September 30, 2021. In addition, there were $11 million of nonaccrual loans for which there was no related ACLL at September 30, 2021. The following table presents loans by past due status at December 31, 2020:
(a) Any loans deferred in connection with the COVID-19 pandemic are considered current in accordance with Section 4013 of the CARES Act. (b) Of the total nonaccrual loans, $128 million, or 61%, were current with respect to payment at December 31, 2020. (c) No interest income was recognized on nonaccrual loans for the year ended December 31, 2020. In addition, there were $28 million of nonaccrual loans for which there was no related ACLL at December 31, 2020.
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Nonaccrual and performing restructured loans | The following table presents nonaccrual and performing restructured loans by loan portfolio:
(b) Does not include any restructured loans related to the COVID-19 pandemic in accordance with Section 4013 of the CARES Act. |
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Summary of restructured loans | The following table provides the number of loans modified in a TDR by loan portfolio, the recorded investment, and unpaid principal balance for the nine months ended September 30, 2021 and 2020:
(b) Represents pre-modification outstanding recorded investment. |
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Troubled debt restructurings subsequent redefault | The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the nine months ended September 30, 2021 and 2020, and the recorded investment in these restructured loans as of September 30, 2021 and 2020:
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Changes in the allowance for loan losses by portfolio segment | The following table presents a summary of the changes in the ACLL by portfolio segment for the nine months ended September 30, 2021:
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The following table presents a summary of the changes in the ACLL by portfolio segment for the year ended December 31, 2020:
(a) Includes auto
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Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of core deposit intangibles and other intangibles | For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:
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Summary of changes in balance of mortgage servicing rights asset and mortgage servicing rights valuation allowance | A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance is as follows:
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Summary of estimated future amortization expense | The following table shows the estimated future amortization expense for amortizing intangible assets:
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Short and Long-Term Funding (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of short & long-term debt balances | The following table presents the components of short-term funding (funding with original contractual maturities of one year or less) and long-term funding (funding with original contractual maturities greater than one year):
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Remaining contractual maturity of securities sold under agreements to repurchase | The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets as of September 30, 2021 and December 31, 2020 are presented in the following table:
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Derivative and Hedging Activities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Other derivative instruments not designated as hedging instruments | The following table presents the total notional amounts and gross fair values of the Company’s derivatives, as well as the balance sheet netting adjustments as of September 30, 2021 and December 31, 2020. The derivative assets and liabilities are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. Total derivative assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of September 30, 2021 and December 31, 2020. The resulting net derivative asset and liability fair values are included in other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets.
(b) Includes approximately $972,000 forward commitment fair value. |
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Schedule of cash flow hedging instruments, statements of financial performance and financial position location | The table below identifies the effect of fair value hedge accounting on the Corporation's consolidated statements of income for the three and nine months ended September 30, 2021 and 2020:
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Gain (loss) on derivative instruments not designated as hedging instruments | The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income for the three and nine months ended September 30, 2021 and 2020:
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Balance Sheet Offsetting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet offsetting of derivative assets and liabilities | The following table presents the interest rate, commodity, and foreign exchange assets and liabilities subject to an enforceable master netting arrangement. The interest, commodity and foreign exchange agreements the Corporation has with its commercial customers are not subject to an enforceable master netting arrangement and are therefore excluded from this table:
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Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of lending-related and other commitments | The following is a summary of lending-related commitments:
current fair value, or the fair value is based on fees currently charged to enter into similar agreements and was not material at September 30, 2021 or December 31, 2020. (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10. (c) The Corporation has established a liability of $3 million for both September 30, 2021 and December 31, 2020, as an estimate of the fair value of these financial instruments. |
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Schedule Of Unfunded Commitments [Table Text Block] | The following table presents a summary of the changes in the allowance for unfunded commitments:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured on recurring basis at fair value | The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall:
same counterparty where there is a legally enforceable master netting agreement in place. |
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Assets and liabilities measured at fair value using significant unobservable inputs (level 3) | The table below presents a rollforward of the consolidated balance sheets amounts for the nine months ended September 30, 2021 and the year ended December 31, 2020, for the Corporation's mortgage derivatives measured on a recurring basis and classified within Level 3 of the fair value hierarchy:
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Equity securities without readily determinable fair value | The following table presents the carrying value of equity securities without readily determinable fair values still held as of September 30, 2021 that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of September 30, 2021:
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Assets and liabilities measured on nonrecurring basis at fair value | The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall:
(b) If the fair value of the collateral exceeds the carrying amount of the asset, no charge off or adjustment is necessary, the asset is not considered to be carried at fair value, and is therefore not included in the table. (c) Includes the full year impact on the consolidated statements of income (d) When a property's value is written down at the time it is transferred to OREO, the charge off is booked to the provision for credit losses. When a property is already in OREO and subsequently written down, the charge off is booked to other noninterest expense. |
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Schedule of assumptions for fair value as of balance sheet date of assets or liabilities that relate to transferor's continuing involvement | The table below presents information about these inputs and further discussion is found above:
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Estimated fair values of financial instruments | Fair value estimates are set forth below for the Corporation’s financial instruments:
same counterparty where there is a legally enforceable master netting agreement in place. (b) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value. (c) The commitment on standby letters of credit was $264 million at September 30, 2021 and $279 million at December 31, 2020. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. |
Retirement Plans (Tables) |
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net period benefit cost for the pension and postretirement plans | The components of net periodic pension cost and net periodic benefit cost for the RAP and Postretirement Plan for the three and nine months ended September 30, 2021 and 2020 were as follows:
|
Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected segment information | Information about the Corporation’s segments is presented below:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of activity in accumulated other comprehensive income (loss) | The following tables summarize the components of accumulated other comprehensive income (loss) at September 30, 2021 and 2020, including changes during the preceding three and nine month periods as well as any reclassifications out of accumulated other comprehensive income (loss):
|
Revenue from Contract with Customer (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue by Major source | The Corporation's disaggregated revenue by major source is presented below:
(a) Certain card-based fees are out-of-scope of Topic 606. (b) For the nine months ended September 30, 2021, the Corporation recognized a $2 million pre-tax gain on the sale of Whitnell. (c) For the nine months ended September 30, 2020, the Corporation recognized a $163 million pre-tax gain on the sale of ABRC.
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Revenue recognition 606 | Below is a listing of performance obligations for the Corporation's main revenue streams:
(a) Certain card-based fees are out-of-scope of Topic 606. (b) Trust and asset management fees and brokerage and advisory fees are included in wealth management fees.
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Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost and Cash Flows | Operating and finance lease costs and cash flows resulting from these leases are presented below:
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Components of lease expense | The lease classifications on the consolidated balance sheets were as follows:
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Operating lease information | The lease payment obligations, weighted-average remaining lease term, and weighted-average original discount rate were as follows:
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Amortization of operating lease liabilities | Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows:
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Acquisitions, PCD Loans (Details) $ in Thousands |
Feb. 14, 2020
USD ($)
|
---|---|
Business Combinations [Abstract] | |
Purchase price of loans at acquisition | $ 77,221 |
Allowance for credit losses at acquisition | 3,504 |
Non-credit discount/(premium) at acquisition | (951) |
Par value of acquired loans at acquisition | $ 79,774 |
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
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Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Calculations for basic and diluted earnings per common share | ||||||||
Net income | $ 88,809 | $ 91,007 | $ 94,301 | $ 45,214 | $ 148,718 | $ 45,838 | $ 274,117 | $ 239,769 |
Preferred stock dividends | (4,155) | (5,207) | (14,236) | (13,152) | ||||
Net income available to common equity | 84,655 | 40,007 | 259,880 | 226,618 | ||||
Common shareholder dividends | (30,323) | (27,676) | (85,604) | (83,607) | ||||
Unvested share-based payment awards | (222) | (199) | (634) | (549) | ||||
Undistributed earnings | 54,109 | 12,133 | 173,642 | 142,462 | ||||
Undistributed earnings allocated to common shareholders | 53,716 | 12,045 | 172,436 | 141,426 | ||||
Undistributed earnings allocated to unvested share-based payment awards | 393 | 87 | 1,206 | 1,036 | ||||
Undistributed earnings | 54,109 | 12,133 | 173,642 | 142,462 | ||||
Basic | ||||||||
Distributed earnings to common shareholders | 30,323 | 27,676 | 85,604 | 83,607 | ||||
Undistributed earnings allocated to common shareholders | 53,716 | 12,045 | 172,436 | 141,426 | ||||
Total common shareholders earnings, basic | 84,039 | 39,721 | 258,040 | 225,032 | ||||
Diluted | ||||||||
Distributed earnings to common shareholders | 30,323 | 27,676 | 85,604 | 83,607 | ||||
Undistributed earnings allocated to common shareholders | 53,716 | 12,045 | 172,436 | 141,426 | ||||
Total common shareholders earnings, diluted | $ 84,039 | $ 39,721 | $ 258,040 | $ 225,032 | ||||
Weighted average common shares outstanding | 150,046 | 152,440 | 151,473 | 153,175 | ||||
Effect of dilutive common stock awards | 1,096 | 754 | 1,228 | 739 | ||||
Diluted weighted average common shares outstanding | 151,143 | 153,194 | 152,701 | 153,914 | ||||
Basic earnings per common share | $ 0.56 | $ 0.26 | $ 1.70 | $ 1.47 | ||||
Diluted earnings per common share | $ 0.56 | $ 0.26 | $ 1.69 | $ 1.46 |
Earnings Per Common Share (Details Textuals) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Approximate anti-dilutive stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 8 | 3 | 7 |
Stock-Based Compensation Fair Value Assumptions of Stock Options (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
$ / shares
| |
Retirement Benefits [Abstract] | |
Dividend yield | 3.50% |
Risk-free interest rate | 1.60% |
Weighted average expected volatility | 21.00% |
Weighted average expected life | 5 years 9 months |
Weighted average per share fair value of options | $ 2.39 |
Investment Securities Gain/Loss Sale of Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Jun. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Investments, Debt and Equity Securities [Abstract] | |||||
Gross gains on AFS securities | $ 0 | $ 7 | $ 421 | $ 9,312 | |
Gross (losses) on AFS securities | 0 | 0 | (437) | (90) | |
Investment securities gains (losses), net | 0 | 7 | (16) | 9,222 | |
Proceeds from sales of investment securities | $ 0 | $ 51,000 | $ 8 | $ 158,708 | $ 626,283 |
Loans, Troubled Debt Restructurings Subsequent Default (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021
USD ($)
loan
|
Sep. 30, 2020
USD ($)
loan
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 9 |
Recorded Investment | $ | $ 200 | $ 1,244 |
Residential mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 5 |
Recorded Investment | $ | $ 200 | $ 1,036 |
Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 4 |
Recorded Investment | $ | $ 0 | $ 208 |
Goodwill and Other Intangible Assets, Mortgage Servicing Rights Roll-Forward (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Mortgage servicing rights | ||
Mortgage servicing rights at beginning of period | $ 59,967 | $ 67,607 |
Additions from acquisition | 0 | 1,357 |
Additions | 11,761 | 13,667 |
Amortization | (15,624) | (22,664) |
Mortgage servicing rights at end of period | 56,104 | 59,967 |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | ||
Valuation allowance at beginning of period | (18,006) | (302) |
(Additions) recoveries, net | 12,231 | (17,704) |
Valuation allowance at end of period | (5,775) | (18,006) |
Mortgage servicing rights, net | 50,329 | 41,961 |
Fair value of mortgage servicing rights | 50,373 | 41,990 |
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ 7,057,130 | $ 7,743,956 |
Mortgage servicing rights, net to servicing portfolio | 0.71% | 0.54% |
Mortgage servicing rights expense(a) | $ 3,393 | $ 40,369 |
Goodwill and Other Intangible Assets, Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Core Deposit Intangibles | ||
Estimated future amortization expense | ||
Three Months Ending December 31, 2021 | $ 2,203 | |
Year ending December 31, 2022 | 8,811 | |
Year ending December 31, 2023 | 8,811 | |
Year ending December 31, 2024 | 8,811 | |
Year ending December 31, 2025 | 8,811 | |
Year ending December 31, 2026 | 8,811 | |
Beyond 2026 | 14,038 | |
Net book value | 60,296 | $ 66,904 |
Other Intangibles | ||
Estimated future amortization expense | ||
Net book value | 0 | $ 1,350 |
Mortgage Servicing Rights | ||
Estimated future amortization expense | ||
Three Months Ending December 31, 2021 | 2,945 | |
Year ending December 31, 2022 | 10,898 | |
Year ending December 31, 2023 | 8,500 | |
Year ending December 31, 2024 | 6,795 | |
Year ending December 31, 2025 | 5,499 | |
Year ending December 31, 2026 | 4,489 | |
Beyond 2026 | 16,978 | |
Net book value | $ 56,104 |
Goodwill and Other Intangible Assets (Details Textuals) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
Mar. 31, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Valuation Allowance for Impairment of Recognized Servicing Assets, Additions (Deductions) for Expenses (Recoveries) | $ (12,231) | $ 17,704 | |
Goodwill [Line Items] | |||
Goodwill | 1,104,992 | 1,109,300 | |
Whitnell | |||
Goodwill [Line Items] | |||
Goodwill | $ (4,000) | ||
Other Intangibles | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||
Goodwill [Line Items] | |||
Decrease of other intangible assets | $ 1,317 | $ 17,435 |
Short and Long-Term Funding, FHLB Advances (Components of Short-term and Long-term Funding) (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Short-term Funding [Abstract] | ||
Federal funds purchased | $ 415 | $ 7,070 |
Securities sold under agreements to repurchase | 267,528 | 185,901 |
Federal funds purchased and securities sold under agreements to repurchase | 267,943 | 192,971 |
Commercial paper | 54,553 | 59,346 |
Total short-term funding | 322,496 | 252,317 |
Long-Term Funding | ||
Corporation subordinated notes, at par, due 2025 | 250,000 | 250,000 |
Finance lease liability | 72 | 1,128 |
Capitalized costs | (912) | (1,663) |
FHLB Advances - long-term | ||
FHLB advances | 1,620,880 | 1,632,723 |
Other long-term funding | 1,870,040 | 2,182,188 |
Total short and long-term funding | 2,192,536 | 2,434,505 |
Bank senior notes, at par, due 2021 | ||
Long-Term Funding | ||
Senior notes | $ 0 | $ 300,000 |
Derivative and Hedging Activities (Details Textuals) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Balance Sheet Recording of Fair Value Hedge [Line Items] | |||
Additional Collateral, Aggregate Fair Value | $ 78 | $ 72 | |
Derivative collateral right to reclaim cash | 18 | $ 31 | |
Designated as Hedging Instrument | |||
Balance Sheet Recording of Fair Value Hedge [Line Items] | |||
Derivative Liability Notional Amount, Terminated | $ 500 | ||
Underlying Hedged Asset, Amortized Cost Basis | 446 | ||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | $ 2 |
Balance Sheet Offsetting (Details) - Interest Rate Contract - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Derivative assets | ||
Gross Amounts Recognized | $ 6,719 | $ 13,441 |
Derivative Liabilities Offset | (3,302) | (1,936) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (3,143) | (10,879) |
Net Amounts Presented on the Consolidated Balance Sheets | 273 | 626 |
Derivative liabilities | ||
Gross Amounts Recognized | 23,489 | 27,951 |
Derivative Liability, Fair Value, Gross Asset | (3,302) | (1,936) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (18,595) | (25,625) |
Net Amounts Presented on the Consolidated Balance Sheets | $ 1,592 | $ 390 |
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters, Summary of Lending Related and Other Commitments (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Schedule of lending-related and other commitments [Line Items] | ||
Lending related commitments, fair value | $ 0 | $ 0 |
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b) | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 10,618,161 | 10,010,492 |
Commercial letters of credit(a) | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 6,309 | 3,642 |
Standby letters of credit(c) | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 264,123 | 278,798 |
Standby letters of credit, fair value | $ 3,000 | $ 3,000 |
Commitment, Changes in the Allowance for Unfunded Commitments (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
Jan. 01, 2020 |
|
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Balance at beginning of period | $ 47,776 | $ 21,907 | |
Off-Balance Sheet, Credit Loss, Liability | 41,276 | 47,776 | |
Provision for credit losses | (6,500) | 7,000 | |
Balance at end of period | $ 41,276 | 47,776 | |
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability | $ 40,597 | ||
First Staunton Bancshares [Member] | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Provision for credit losses | $ 179 | ||
Accounting Standards Update 2016-13 | Cumulative Effect, Period Of Adoption, Adjustment | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability | $ 18,690 |
Fair Value Measurements Equity Securities Without Readily Determinable Fair Values (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Equity Securities Without Readily Determinable Fair Value Amount [Roll Forward] | |
Carrying value as of December 31, 2020 | $ 13,000 |
Additions | 552 |
Equity Securities without Readily Determinable Fair Value, Sales, Annual Amount | (33) |
Equity Securities without Readily Determinable Fair Value, Donations, Annual Amount | (134) |
Carrying value as of September 30, 2021 | 14,000 |
Fair Value, Inputs, Level 3 | |
Equity Securities Without Readily Determinable Fair Value Amount [Roll Forward] | |
Carrying value as of December 31, 2020 | 13,444 |
Carrying value as of September 30, 2021 | 13,830 |
Cumulative upward carrying value changes between January 1, 2018 and September 30, 2021 | 13,444 |
Cumulative downward carrying value changes/impairment between January 1, 2018 and September 30, 2021 | $ 0 |
Fair Value Measurements (Details Textuals) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Fair Value Measurements (Textuals) [Abstract] | |
Fair Value Inputs Closing Ratio | 82.00% |
Retirement Plans, Components of Net Periodic Benefit Cost for the Pension and Postretirement Tables (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
RAP | ||||
Net period benefit cost for the pension and postretirement plans | ||||
Service cost | $ 1,684 | $ 1,853 | $ 5,835 | $ 6,183 |
Interest cost | 1,682 | 2,124 | 4,927 | 6,139 |
Expected return on plan assets | (6,395) | (6,386) | (19,256) | (19,196) |
Amortization of prior service cost | (19) | (18) | (55) | (55) |
Amortization of actuarial loss (gain) | 1,346 | 1,313 | 3,446 | 2,923 |
Total net periodic pension cost | (1,701) | (1,114) | (5,103) | (4,006) |
Postretirement Plan | ||||
Net period benefit cost for the pension and postretirement plans | ||||
Interest cost | 13 | 20 | 39 | 59 |
Amortization of prior service cost | (19) | (19) | (56) | (56) |
Total net periodic pension cost | $ (6) | $ 1 | $ (17) | $ 2 |
Retirement Plans (Details Textuals) (Details) - USD ($) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Feb. 15, 2020 |
Feb. 14, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
First Staunton Bancshares [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Effective Date of Acquisition | Feb. 14, 2020 | |||
Business Acquisition, Effective Date of Retirement Eligibility | Feb. 15, 2020 | |||
RAP | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Description | The Corporation has a noncontributory defined benefit RAP, covering substantially all employees who meet participation requirements. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes. | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Segment Reporting (Details Textuals) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 30, 2020
USD ($)
|
Mar. 31, 2021
USD ($)
|
Sep. 30, 2021
USD ($)
segment
|
|
Segment Reporting [Abstract] | |||
Number of Reportable Segments | segment | 3 | ||
Whitnell | |||
Segment Reporting [Abstract] | |||
Gain (Loss) on Sale and Maturity of Other Investments, Before Tax | $ 2 | $ 2 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Sale and Maturity of Other Investments, Before Tax | $ 2 | $ 2 | |
ABRC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax book gain on sale | $ 163 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | $ 12,618 | $ 12,618 | ||||||
Investment securities losses (gains), net | $ 0 | $ 0 | (437) | $ (90) | ||||
Personnel expense | (107,880) | (108,567) | (318,900) | (334,117) | ||||
Interest income | (172) | (1,296) | (1,335) | (2,628) | ||||
Other comprehensive income (loss) | (13,702) | $ 7,082 | (16,811) | 5,916 | $ 15,054 | $ 16,209 | (23,431) | 37,178 |
Ending Balance | (10,813) | (10,813) | ||||||
Investment Securities AFS | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | 30,076 | 41,325 | 34,101 | 3,989 | 41,325 | 3,989 | ||
Other comprehensive income (loss) before reclassifications | (19,827) | 5,840 | (35,829) | 53,900 | ||||
Investment securities losses (gains), net | 0 | (7) | 16 | (9,222) | ||||
Personnel expense | 0 | 0 | 0 | 0 | ||||
Other expense | 0 | 0 | 0 | 0 | ||||
Interest income | 172 | 1,296 | 1,335 | 2,628 | ||||
Income tax (expense) benefit | 4,975 | (1,786) | 8,548 | (11,852) | ||||
Other comprehensive income (loss) | (14,681) | 5,342 | (25,930) | 35,454 | ||||
Ending Balance | 15,395 | 30,076 | 39,443 | 34,101 | 15,395 | 39,443 | ||
Defined Benefit Pension and Postretirement Obligations | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | (27,187) | (28,707) | (36,021) | (37,172) | (28,707) | (37,172) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||||
Investment securities losses (gains), net | 0 | 0 | 0 | 0 | ||||
Personnel expense | (37) | (36) | (111) | (111) | ||||
Other expense | 1,346 | 1,313 | 3,446 | 2,923 | ||||
Interest income | 0 | 0 | 0 | 0 | ||||
Income tax (expense) benefit | (330) | (703) | (836) | (1,088) | ||||
Other comprehensive income (loss) | 979 | 573 | 2,498 | 1,724 | ||||
Ending Balance | (26,209) | (27,187) | (35,448) | (36,021) | (26,209) | (35,448) | ||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | 2,889 | 12,618 | (1,920) | (33,183) | 12,618 | (33,183) | ||
Other comprehensive income (loss) before reclassifications | (19,827) | 5,840 | (35,829) | 53,900 | ||||
Investment securities losses (gains), net | 0 | (7) | 16 | (9,222) | ||||
Personnel expense | (37) | (36) | (111) | (111) | ||||
Other expense | 1,346 | 1,313 | 3,446 | 2,923 | ||||
Interest income | 172 | 1,296 | 1,335 | 2,628 | ||||
Income tax (expense) benefit | 4,644 | (2,489) | 7,712 | (12,939) | ||||
Other comprehensive income (loss) | (13,702) | 7,082 | $ (16,811) | 5,916 | 15,054 | $ 16,209 | (23,431) | 37,178 |
Ending Balance | $ (10,813) | $ 2,889 | $ 3,995 | $ (1,920) | $ (10,813) | $ 3,995 |
Leases Lease, Cost and Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Leases [Abstract] | ||||
Operating lease costs | $ 2,367 | $ 3,970 | $ 6,850 | $ 9,224 |
Finance lease costs | 17 | 39 | 76 | 115 |
Operating lease cash flows | 2,858 | 2,871 | 8,598 | 8,303 |
Finance lease cash flows | $ 21 | $ 40 | $ 101 | $ 82 |
Leases Components of Lease Expense (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 29,527 | $ 31,994 |
Finance lease right-of-use asset | 59 | 962 |
Operating lease liability | 33,066 | 36,425 |
Finance lease liability | $ 72 | $ 1,128 |
Leases Amortization of Operating Lease Liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 |
Dec. 31, 2020 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of operating lease liabilities | Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ending December 31, 2021 | $ 2,326 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 8,061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 6,108 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 5,317 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 4,076 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beyond 2025 | 10,807 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total lease payments | 36,696 | $ 40,806 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: interest | 3,630 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Present value of lease payments | 33,066 | 36,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ending December 31, 2021 | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beyond 2025 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total lease payments | 73 | 1,145 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: interest | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Present value of lease payments | 72 | $ 1,128 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ending December 31, 2021 | 2,348 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 8,112 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 6,108 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 5,317 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 4,076 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beyond 2025 | 10,807 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total lease payments | 36,768 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: interest | 3,630 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Present value of lease payments | $ 33,138 |
Leases (Details Textuals) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Lessee, Lease, Description [Line Items] | ||
Additional operating leases | $ 16 | $ 17 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease terms | 1 year | |
Additional operating lease terms | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease terms | 41 years | |
Additional operating lease terms | 6 years |
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