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(s) | 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, Abbreviations, and Defined Terms | |||||
The following listing provides a reference of common acronyms and abbreviations used throughout the document: |
ABL | Asset-Based Lending | ||||
ACLL | Allowance for Credit Losses on Loans | ||||
AFS | Available for Sale | ||||
ALCO | Asset / Liability Committee | ||||
AOCI | Accumulated Other Comprehensive Income | ||||
ARRC | Alternative Reference Rate Committee | ||||
Associated / the Company / 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) | ||||
BTFP | Bank Term Funding Program | ||||
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 | ||||
DIF | Deposit Insurance Fund | ||||
EAR | Earnings at Risk | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FDI Act | Federal Deposit Insurance Act | ||||
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 | ||||
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 | ||||
HQLA | High-Quality Liquid Assets | ||||
HTM | Held to Maturity | ||||
LIBOR | London Interbank Offered Rate | ||||
LOCOM | Lower of Cost or Market | ||||
LTV | Loan-to-Value | ||||
Moody's | Moody’s Investors Service | ||||
MSRs | Mortgage Servicing Rights | ||||
MVE | Market Value of Equity |
Net Free Funds | Noninterest-bearing sources of funds | ||||
NII | Net Interest Income | ||||
NPAs | Nonperforming Assets | ||||
OCI | Other Comprehensive Income | ||||
OREO | Other Real Estate Owned | ||||
Parent Company | Associated Banc-Corp individually | ||||
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 | ||||
ROCET1 | Return on Common Equity Tier 1 | ||||
S&P | Standard & Poor's | ||||
SBA | Small Business Administration | ||||
SBNY | Signature Bank | ||||
SEC | U.S. Securities and Exchange Commission | ||||
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 | ||||
SVB | Silicon Valley Bank | ||||
TDRs | Troubled Debt Restructurings | ||||
YTD | Year-to-Date |
PART I - FINANCIAL INFORMATION | |||||
ITEM 1. | Financial Statements: |
Mar 31, 2023 | Dec 31, 2022 | |||||||
(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 | ||||||||
AFS investment securities, at fair value | ||||||||
HTM investment securities, net, at amortized cost | ||||||||
Equity securities | ||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | ||||||||
Residential loans held for sale | ||||||||
Commercial 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 (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 Mar 31, | ||||||||
(In thousands, except per share data) | 2023 | 2022 | ||||||
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 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 | ||||||||
Asset gains, net | ||||||||
Investment securities gains (losses), net | ||||||||
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 | ||||||||
Other | ||||||||
Total noninterest expense | ||||||||
Income before income taxes | ||||||||
Income tax expense | ||||||||
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 Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Net income | $ | $ | ||||||
Other comprehensive income (loss), net of tax | ||||||||
AFS investment securities | ||||||||
Net unrealized gains (losses) | ( | |||||||
Unrealized (losses) on AFS securities transferred to HTM securities | ( | |||||||
Amortization of net unrealized losses on AFS securities transferred to HTM securities | ||||||||
Reclassification adjustment for net (gains) realized in net income | ( | |||||||
Income tax benefit (expense) | ( | |||||||
Other comprehensive income (loss) on AFS securities | ( | |||||||
Cash flow hedge derivatives | ||||||||
Net unrealized gains | ||||||||
Reclassification adjustment for net losses realized in net income | ||||||||
Income tax (expense) | ( | |||||||
Other comprehensive income on cash flow hedge derivatives | ||||||||
Defined benefit pension and postretirement obligations | ||||||||
Amortization of prior service cost | ( | ( | ||||||
Amortization of actuarial loss | ||||||||
Income tax benefit | ||||||||
Other comprehensive income (loss) on pension and postretirement obligations | ( | |||||||
Total other comprehensive income (loss) | ( | |||||||
Comprehensive income (loss) | $ | $ | ( |
(In thousands, except per share data) | Preferred Equity | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive (Loss) | Treasury Stock | Total | ||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||
Stock-based compensation plans, net | — | — | ( | — | — | ||||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends: | |||||||||||||||||||||||
Common stock, $0.21 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(a) | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
(In thousands, except per share data) | Preferred Equity | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | ||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
Change in accounting principle(a) | — | — | — | — | — | ||||||||||||||||||
Total stockholders' equity at beginning of period, as adjusted | ( | ( | |||||||||||||||||||||
Comprehensive (loss): | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive (loss) | — | — | — | — | ( | — | ( | ||||||||||||||||
Comprehensive (loss) | ( | ||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||
Stock-based compensation plans, net | — | — | ( | — | |||||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
Cash dividends: | |||||||||||||||||||||||
Common stock, $0.20 per share | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(b) | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Cash flows from operating activities | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for credit losses | ( | |||||||
Depreciation and amortization | ||||||||
Change in MSRs valuation | ( | |||||||
Amortization of other intangible assets | ||||||||
Amortization and accretion on earning assets, funding, and other, net | ||||||||
Net amortization of tax credit investments | ||||||||
(Gains) on sales of investment securities, net | ( | |||||||
Asset (gains), net | ( | ( | ||||||
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) in interest receivable | ( | ( | ||||||
(Decrease) increase in interest payable | ( | |||||||
(Decrease) in expense payable | ( | ( | ||||||
(Decrease) increase in net derivative position | ( | |||||||
Net change in other assets and other liabilities | ||||||||
Net cash provided by operating activities | ||||||||
Cash flows from investing activities | ||||||||
Net (increase) in loans | ( | ( | ||||||
Purchases of: | ||||||||
AFS securities | ( | ( | ||||||
HTM securities | ( | ( | ||||||
Federal Home Loan Bank and Federal Reserve Bank stocks and equity securities | ( | ( | ||||||
Proceeds from: | ||||||||
Sales of AFS securities | ||||||||
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks and equity securities | ||||||||
Prepayments, calls, and maturities of AFS securities | ||||||||
Prepayments, calls, and maturities of HTM securities | ||||||||
Sales, prepayments, calls, and maturities of other assets | ||||||||
Premises, equipment, and software, net of disposals | ( | ( | ||||||
Net change in tax credit and alternative investments | ( | ( | ||||||
Net cash (used in) investing activities | ( | ( | ||||||
Cash flows from financing activities | ||||||||
Net increase (decrease) in deposits | ( | |||||||
Net increase (decrease) in short-term funding | ( | |||||||
Net increase in short-term FHLB advances | ||||||||
Repayment of long-term FHLB advances | ( | ( | ||||||
Proceeds from long-term FHLB advances | ||||||||
Proceeds from issuance of long-term funding | ||||||||
(Repayment) proceeds of finance lease principal | ( | |||||||
Proceeds from issuance of common stock for stock-based compensation plans | ||||||||
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) | $ | $ |
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
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 | ||||||||
Transfer of AFS securities to HTM securities | ||||||||
Unsettled trades to purchase securities | ||||||||
Fair value adjustments on hedged long-term FHLB advances and subordinated debt | ( | |||||||
Fair value adjustment on cash flow hedge | ||||||||
Standard | Description | Date of adoption | Effect on financial statements | ||||||||
ASU 2022-02 Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures | The FASB issued these amendments to eliminate accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty, and to require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively, except as provided in the next sentence. For the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption is permitted if an entity has adopted the amendments in Update 2016-03, including adoption in an interim period. | 1st Quarter 2023 | Adoption of this amendment did not have a material impact on the Corporation's results of operation, financial position or liquidity, but resulted in additional disclosure requirements related to gross charge offs by vintage year and the removal of TDR disclosures, replaced by additional disclosures on the types of modifications of loans to borrowers experiencing financial difficulties. The Corporation has adopted this update prospectively. |
Standard | Description | Date of anticipated adoption | Effect on financial statements | ||||||||
ASU 2023-02 Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method | The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update also remove certain guidance for Qualified Affordable Housing Project investments and require the application of the delayed equity contribution guidance to all tax equity investments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and must be applied on either a modified retrospective or a retrospective basis. Early adoption is permitted in any interim period, however if adopted in an interim period the entity shall adopt the amendments in this update as of the beginning of the fiscal year that includes the interim period. | 1st Quarter 2024 | The Corporation is currently evaluating the impact on its results of operation, financial position, liquidity, and disclosures. |
Three Months Ended Mar 31, | ||||||||
($ in thousands, except per share data) | 2023 | 2022 | ||||||
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 | $ | $ |
Stock Options | Shares(a) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value(a) | ||||||||||
Outstanding at December 31, 2022 | $ | $ | ||||||||||||
Exercised | ||||||||||||||
Forfeited or expired | ||||||||||||||
Outstanding at March 31, 2023 | $ | $ | ||||||||||||
Options Exercisable at March 31, 2023 | $ | $ |
Restricted Stock | Shares(a) | Weighted Average Grant Date Fair Value | ||||||
Outstanding at December 31, 2022 | $ | |||||||
Granted | ||||||||
Vested | ||||||||
Forfeited | ||||||||
Outstanding at March 31, 2023 | $ |
($ in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||
AFS investment securities | ||||||||||||||
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 AFS investment securities | $ | $ | $ | ( | $ | |||||||||
HTM investment securities | ||||||||||||||
U. S. Treasury 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 | ( | |||||||||||||
Total HTM investment securities | $ | $ | $ | ( | $ | |||||||||
($ in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||
AFS investment securities | ||||||||||||||
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 AFS investment securities | $ | $ | $ | ( | $ | |||||||||
HTM investment securities | ||||||||||||||
U. S. Treasury 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 | ( | |||||||||||||
Total HTM investment securities | $ | $ | $ | ( | $ |
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 | |||||||||||||||||
Private-label | |||||||||||||||||
Commercial mortgage-related securities: | |||||||||||||||||
FNMA/FHLMC | |||||||||||||||||
GNMA | |||||||||||||||||
Total HTM securities | $ | $ | $ | $ | $ |
($ 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 | |||||||||||||||||
Private-label | |||||||||||||||||
Commercial mortgage-related securities: | |||||||||||||||||
FNMA/FHLMC | |||||||||||||||||
GNMA | |||||||||||||||||
Total HTM securities | $ | $ | $ | $ | $ |
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Gross gains on AFS securities | $ | $ | ||||||
Net write-up of equity securities | ||||||||
Investment securities gains (losses), net | $ | $ | ||||||
Proceeds from sales of AFS 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 | ||||||||||||||||||
AFS investment securities | ||||||||||||||||||||||||||
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 | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
HTM investment securities | ||||||||||||||||||||||||||
U.S. Treasury 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 | ( | ( | ||||||||||||||||||||||||
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 | ||||||||||||||||||
AFS investment securities | ||||||||||||||||||||||||||
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 | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
HTM investment securities | ||||||||||||||||||||||||||
U.S. Treasury 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 | ( | ( | ( | |||||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ | $ | ( | $ |
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | ||||||
Asset-based lending & equipment finance | $ | $ | ||||||
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 | ||||||||
Auto finance | ||||||||
Home equity | ||||||||
Other consumer | ||||||||
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 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||
Asset-based lending & equipment finance: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Asset-based lending & equipment finance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Real estate construction | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate lending: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Commercial real estate lending | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total commercial: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
($ in thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | YTD 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Residential mortgage | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Auto finance: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Auto finance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
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 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||||||
Asset-based lending & equipment finance: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Asset-based lending & equipment finance: | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
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 | 2022 | 2021 | 2020 | 2019 | 2018 | 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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Auto finance: | |||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Auto finance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
Potential Problem | |||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Gross Charge Offs by Origination Year | ||||||||||||||||||||||||||
($ in thousands) | Rev Loans Amortized Cost Basis | YTD 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commercial and business lending | ||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||
Auto finance | ||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||
Other consumer | ||||||||||||||||||||||||||
Total consumer | ||||||||||||||||||||||||||
Total gross charge offs | $ | $ | $ | $ | $ | $ | $ | $ |
Accruing | ||||||||||||||||||||
($ in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Nonaccrual(a)(b) | Total | ||||||||||||||
Asset-based lending & equipment finance | $ | $ | $ | $ | $ | $ | ||||||||||||||
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 | ||||||||||||||||||||
Auto finance | ||||||||||||||||||||
Home equity | ||||||||||||||||||||
Other consumer | ||||||||||||||||||||
Total consumer | ||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
Accruing | ||||||||||||||||||||
($ in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Nonaccrual(a)(b) | Total | ||||||||||||||
Asset-based lending & equipment finance | $ | $ | $ | $ | $ | $ | ||||||||||||||
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 | ||||||||||||||||||||
Auto finance | ||||||||||||||||||||
Home equity | ||||||||||||||||||||
Other consumer | ||||||||||||||||||||
Total consumer | ||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
Interest Rate Concession | |||||
($ in thousands) | Amortized Cost | ||||
Commercial and industrial | $ | ||||
Auto | |||||
Home equity | |||||
Other consumer | |||||
Total loans modified | $ |
Term Extension | |||||
($ in thousands) | Amortized Cost | ||||
Residential mortgage | $ | ||||
Total loans modified | $ |
Combination - Interest Rate Concession and Term Extension | |||||
($ in thousands) | Amortized Cost | ||||
Residential mortgage | $ | ||||
Home equity | |||||
Total loans modified | $ |
Interest Rate Concession | |||||
Loan Type | Financial Effect, Weighted Average Contractual Interest Rate (Decrease) Increase(a) | ||||
Commercial and industrial | ( | % | |||
Auto | ( | % | |||
Home equity | % | ||||
Other consumer | ( | % | |||
Total loans modified(b) | ( | % |
Term Extension | |||||
Loan Type | Financial Effect, Weighted Average Term Increase(a) | ||||
Residential mortgage | |||||
Total loans modified |
Payment Status (Amortized Cost Basis) | ||||||||||||||
($ in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Nonaccrual | ||||||||||
Commercial and industrial | $ | $ | $ | $ | ||||||||||
Residential mortgage | ||||||||||||||
Auto | ||||||||||||||
Home equity | ||||||||||||||
Other consumer | ||||||||||||||
Total loans modified | $ | $ | $ | $ |
Amortized Cost of Loan Modifications that Subsequently Defaulted | |||||||||||
($ in thousands) | Interest Rate Concession | Term Extension | Combination Interest Rate Reduction and Term Extension | ||||||||
Home equity | $ | $ | $ |
($ in thousands) | 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 | $ | $ |
($ in thousands) | Number of Loans | Recorded Investment(a) | Unpaid Principal Balance(b) | ||||||||
Residential mortgage | $ | $ | |||||||||
Home equity | |||||||||||
Total loans modified | $ | $ |
Three Months Ended March 31, 2022 | ||||||||
($ in thousands) | Number of Loans | Recorded Investment | ||||||
Residential mortgage | $ | |||||||
($ in thousands) | Dec 31, 2022 | Charge offs | Recoveries | Net Charge offs | Provision for credit losses | Mar 31, 2023 | ACLL / Loans | ||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||
Asset-based lending & equipment finance | $ | $ | $ | $ | $ | $ | |||||||||||||||||
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 | ( | ( | |||||||||||||||||||||
Auto finance | ( | ( | |||||||||||||||||||||
Home equity | ( | ( | |||||||||||||||||||||
Other consumer | ( | ( | |||||||||||||||||||||
Total consumer | ( | ( | |||||||||||||||||||||
Total loans | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||
Allowance for unfunded commitments | |||||||||||||||||||||||
Asset-based lending & equipment finance | $ | $ | — | $ | — | $ | — | $ | ( | $ | |||||||||||||
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 | |||||||||||||||||||||||
Asset-based lending & equipment finance | $ | $ | $ | $ | $ | ( | $ | % | |||||||||||||||
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 | ( | ( | % | ||||||||||||||||||||
Auto finance | ( | ( | % | ||||||||||||||||||||
Home equity | ( | ( | % | ||||||||||||||||||||
Other consumer | ( | ( | % | ||||||||||||||||||||
Total consumer | ( | ( | % | ||||||||||||||||||||
Total loans | $ | $ | ( | $ | $ | ( | $ | $ | % |
($ in thousands) | Dec 31, 2021 | Charge offs | Recoveries | Net Charge offs | Provision for credit losses | Dec 31, 2022 | ACLL / Loans | ||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||
Asset-based lending & equipment finance | $ | $ | $ | $ | $ | $ | |||||||||||||||||
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 | ( | ( | |||||||||||||||||||||
Auto finance | ( | ( | |||||||||||||||||||||
Home equity | ( | ||||||||||||||||||||||
Other consumer | ( | ( | |||||||||||||||||||||
Total consumer | ( | ( | |||||||||||||||||||||
Total loans | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||
Allowance for unfunded commitments | |||||||||||||||||||||||
Asset-based lending & equipment finance | $ | $ | — | $ | — | $ | — | $ | ( | $ | |||||||||||||
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 | |||||||||||||||||||||||
Asset-based lending & equipment finance | $ | $ | $ | $ | $ | $ | % | ||||||||||||||||
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 | ( | ( | % | ||||||||||||||||||||
Auto finance | ( | ( | % | ||||||||||||||||||||
Home equity | ( | % | |||||||||||||||||||||
Other consumer | ( | ( | % | ||||||||||||||||||||
Total consumer | ( | ( | % | ||||||||||||||||||||
Total loans | $ | $ | ( | $ | $ | ( | $ | $ | % |
($ in thousands) | Three Months Ended March 31, 2023 | Year Ended Dec 31, 2022 | ||||||
Core deposit intangibles | ||||||||
Gross carrying amount at the beginning of period | $ | $ | ||||||
Accumulated amortization | ( | ( | ||||||
Net book value | $ | $ | ||||||
Amortization during the period | $ | $ | ||||||
($ in thousands) | Three Months Ended March 31, 2023 | Year Ended Dec 31, 2022 | ||||||
Mortgage servicing rights | ||||||||
Mortgage servicing rights at beginning of period | $ | $ | ||||||
Cumulative effect of accounting methodology change | N/A | |||||||
Balance at beginning of period, adjusted | $ | $ | ||||||
Additions | ||||||||
Paydowns | ( | ( | ||||||
Valuation: | ||||||||
Change in fair value model assumptions | ||||||||
Changes in fair value of asset | ( | |||||||
Mortgage servicing rights at end of period | $ | $ | ||||||
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ | $ | ||||||
Mortgage servicing rights to servicing portfolio | % | % | ||||||
($ in thousands) | Core Deposit Intangibles | Mortgage Servicing Rights | ||||||
Nine months ended December 31, 2023 | $ | $ | ||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Beyond 2028 | ||||||||
Total estimated amortization expense and MSRs decay | $ | $ |
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | ||||||
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 | ||||||||
Corporation subordinated notes, at par | $ | $ | ||||||
Discount and capitalized costs | ( | ( | ||||||
Subordinated debt fair value hedge(a) | ( | |||||||
Finance leases | ||||||||
Total long-term funding | $ | $ | ||||||
Total short and long-term funding, excluding FHLB advances | $ | $ | ||||||
FHLB advances | ||||||||
Short-term FHLB advances | $ | $ | ||||||
Long-term FHLB advances | ||||||||
FHLB advances fair value hedge(a) | ( | ( | ||||||
Total FHLB advances | $ | $ | ||||||
Total short and long-term funding | $ | $ |
Overnight and Continuous | ||||||||
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | ||||||
Repurchase agreements | ||||||||
Agency mortgage-related securities | $ | $ | ||||||
Mar 31, 2023 | Dec 31, 2022 | |||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||
($ in thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||
Designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate-related instruments | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate-related and other instruments | ||||||||||||||||||||||||||
Foreign currency exchange forwards | ||||||||||||||||||||||||||
Mortgage banking(a) | ||||||||||||||||||||||||||
Total not designated as hedging instruments | ||||||||||||||||||||||||||
Gross derivatives before netting | ||||||||||||||||||||||||||
Less: Legally enforceable master netting agreements | ||||||||||||||||||||||||||
Less: Cash collateral pledged/received | ||||||||||||||||||||||||||
Total derivative instruments, after netting | $ | $ | $ | $ |
Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included | ||||||||||||||
Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | |||||||||||
($ in thousands) | March 31, 2023 | December 31, 2022 | ||||||||||||
Other long-term funding | $ | ( | $ | ( | $ | ( | $ | |||||||
FHLB Advances | ( | ( | ||||||||||||
Total | $ | ( | $ | $ | ( | $ |
Location and Amount Recognized on the Consolidated Statements of Income in Fair Value and Cash Flow Hedging Relationships | |||||||||||
Three months ended Mar 31, | |||||||||||
2023 | 2022 | ||||||||||
($ in thousands) | Interest Income | Interest Expense | Interest Income | ||||||||
Total amounts of income presented on the consolidated statements of income in which the effects of the fair value or cash flow hedges are recorded(a) | $ | ( | $ | $ | ( | ||||||
The effects of fair value and cash flow hedging: Impact on fair value hedging relationships in Subtopic 815-20 | |||||||||||
Interest contracts: | |||||||||||
Hedged items | ( | ( | |||||||||
Derivatives designated as hedging instruments(a) | ( | ( | |||||||||
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Interest rate-related instruments designated as cash flow hedging instruments | ||||||||
Amount of gain recognized in OCI on cash flow hedge derivative(a) | $ | $ | ||||||
Amount of loss reclassified from accumulated other comprehensive income (loss) into interest income(a) | ||||||||
Consolidated Statements of Income Category of Gain / (Loss) Recognized in Income | Three Months Ended Mar 31, | ||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Derivative instruments | |||||||||||
Interest rate-related and other instruments — customer and mirror, net | Capital markets, net | $ | ( | $ | |||||||
Interest rate-related instruments — MSRs hedge | Mortgage banking, net | ( | |||||||||
Foreign currency exchange forwards | 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 | Gross Amounts Not Offset on the Consolidated Balance Sheets | |||||||||||||||||
($ in thousands) | Derivative Liabilities Offset | Cash Collateral Received | Security Collateral Received | Net Amount | ||||||||||||||||
Derivative assets | ||||||||||||||||||||
March 31, 2023 | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||
December 31, 2022 | ( | ( | ( | |||||||||||||||||
Gross Amounts Recognized | Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets | Net Amounts Presented on the Consolidated Balance Sheets | Gross Amounts Not Offset on the Consolidated Balance Sheets | |||||||||||||||||
($ in thousands) | Derivative Assets Offset | Cash Collateral Pledged | Security Collateral Pledged | Net Amount | ||||||||||||||||
Derivative liabilities | ||||||||||||||||||||
March 31, 2023 | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||
December 31, 2022 | ( | ( | ||||||||||||||||||
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | ||||||
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) | Three Months Ended March 31, 2023 | Year Ended December 31, 2022 | ||||||
Allowance for unfunded commitments | ||||||||
Balance at beginning of period | $ | $ | ||||||
Provision for unfunded commitments | ( | |||||||
Balance at end of period | $ | $ |
($ in thousands) | Fair Value Hierarchy | Mar 31, 2023 | Dec 31, 2022 | ||||||||
Assets | |||||||||||
AFS investment securities: | |||||||||||
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 | ||||||||||
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 AFS investment securities | Level 1 | $ | $ | ||||||||
Total AFS investment securities | Level 2 | ||||||||||
Equity securities with readily determinable fair values | Level 1 | ||||||||||
Residential loans held for sale | Level 2 | ||||||||||
Mortgage servicing rights, net | Level 3 | ||||||||||
Interest rate-related instruments designated as hedging instruments(a) | Level 2 | ||||||||||
Interest rate-related and other instruments not designated as hedging instruments(a) | Level 2 | ||||||||||
Foreign currency exchange forwards(a) | Level 2 | ||||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale | Level 3 | ||||||||||
Liabilities | |||||||||||
Interest rate-related instruments designated as hedging instruments(a) | Level 2 | $ | $ | ||||||||
Interest rate-related and other instruments not designated as hedging instruments(a) | Level 2 | ||||||||||
Foreign currency exchange forwards(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, 2021 | $ | $ | ( | $ | |||||||
New production | ( | ||||||||||
Closed loans / settlements | ( | ( | |||||||||
Other | ( | ( | |||||||||
Change in mortgage derivative | ( | ( | |||||||||
Balance December 31, 2022 | $ | $ | $ | ||||||||
New production | $ | $ | ( | $ | |||||||
Closed loans / settlements | ( | ( | |||||||||
Other | ( | ( | |||||||||
Change in mortgage derivative | ( | ||||||||||
Balance March 31, 2023 | $ | $ | $ | ( |
($ in thousands) | |||||
Equity securities without readily determinable fair values | |||||
Carrying value as of December 31, 2022 | $ | ||||
Carrying value changes | |||||
Purchases | |||||
Sales | |||||
Carrying value as of March 31, 2023 | $ | ||||
Cumulative upward carrying value changes between January 1, 2018 and March 31, 2023 | $ | ||||
Cumulative downward carrying value changes/impairment between January 1, 2018 and March 31, 2023 | $ |
($ in thousands) | Fair Value Hierarchy | Fair Value | Consolidated Statements of Income Category of Adjustment Recognized in Income | Adjustment Recognized on the Consolidated Statements of Income(a) | ||||||||||
March 31, 2023 | ||||||||||||||
Assets | ||||||||||||||
Individually evaluated loans | Level 3 | $ | Provision for credit losses | $ | ||||||||||
OREO(b) | Level 2 | Other noninterest expense / provision for credit losses(c) | ||||||||||||
December 31, 2022 | ||||||||||||||
Assets | ||||||||||||||
Individually evaluated loans | Level 3 | $ | Provision for credit losses | $ | ||||||||||
OREO(b) | Level 2 | Other noninterest expense / provision for credit losses(c) | ||||||||||||
Equity securities without readily determinable fair values | Level 3 | Investment securities gains (losses), net |
March 31, 2023 | Valuation Technique | Significant Unobservable Input | Range of Inputs | Weighted Average Input Applied | ||||||||||||||||
Mortgage servicing rights | Discounted cash flow | Option adjusted spread | - | |||||||||||||||||
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | - | |||||||||||||||||
Individually evaluated loans | Appraisals / Discounted cash flow | Collateral / Discount factor | - | |||||||||||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale | Discounted cash flow | Closing Ratio | - |
Mar 31, 2023 | Dec 31, 2022 | ||||||||||||||||
($ 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 | ||||||||||||||||
AFS investment securities | Level 1 | ||||||||||||||||
AFS investment securities | Level 2 | ||||||||||||||||
HTM investment securities, net | Level 1 | ||||||||||||||||
HTM investment securities, net | Level 2 | ||||||||||||||||
Equity securities with readily determinable fair values | Level 1 | ||||||||||||||||
Equity securities without readily determinable fair values | Level 2 | ||||||||||||||||
Equity securities without readily determinable fair values | Level 3 | ||||||||||||||||
FHLB and Federal Reserve Bank stocks | Level 2 | ||||||||||||||||
Residential loans held for sale | Level 2 | ||||||||||||||||
Commercial loans held for sale | Level 2 | ||||||||||||||||
Loans, net | Level 3 | ||||||||||||||||
Bank and corporate owned life insurance | Level 2 | ||||||||||||||||
Mortgage servicing rights, net | Level 3 | ||||||||||||||||
Derivatives (other assets)(a) | Level 2 | ||||||||||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale (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 Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
RAP | ||||||||
Service cost | $ | $ | ||||||
Interest cost | ||||||||
Expected return on plan assets | ( | ( | ||||||
Amortization of prior service cost | ( | ( | ||||||
Amortization of actuarial loss | ||||||||
Total net periodic pension cost | $ | ( | $ | ( | ||||
Postretirement Plan | ||||||||
Interest cost | $ | $ | ||||||
Amortization of prior service cost | ( | ( | ||||||
Amortization of actuarial loss (gain) | ( | |||||||
Total net periodic benefit cost | $ | ( | $ | ( |
Corporate and Commercial Specialty | ||||||||
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Net interest income | $ | $ | ||||||
Net intersegment interest income (expense) | ( | |||||||
Segment net interest income | ||||||||
Noninterest income | ||||||||
Total revenue | ||||||||
Provision for credit losses | ||||||||
Noninterest expense | ||||||||
Income before income taxes | ||||||||
Income tax expense | ||||||||
Net income | $ | $ | ||||||
Allocated goodwill | $ | $ |
Community, Consumer, and Business | ||||||||
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Net interest income | $ | $ | ||||||
Net intersegment interest income | ||||||||
Segment net interest income | ||||||||
Noninterest income | ||||||||
Total revenue | ||||||||
Provision for credit losses | ||||||||
Noninterest expense | ||||||||
Income before income taxes | ||||||||
Income tax expense | ||||||||
Net income | $ | $ | ||||||
Allocated goodwill | $ | $ | ||||||
Risk Management and Shared Services | ||||||||
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Net interest income | $ | ( | $ | |||||
Net intersegment (expense) | ( | ( | ||||||
Segment net interest income (loss) | ( | |||||||
Noninterest income | ||||||||
Total revenue | ( | |||||||
Provision for credit losses | ( | ( | ||||||
Noninterest expense | ||||||||
Income (loss) before income taxes | ( | |||||||
Income tax expense (benefit) | ( | |||||||
Net income (loss) | $ | ( | $ | |||||
Allocated goodwill | $ | $ |
Consolidated Total | ||||||||
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Net interest income | $ | $ | ||||||
Net intersegment interest income | ||||||||
Segment net interest income | ||||||||
Noninterest income | ||||||||
Total revenue | ||||||||
Provision for credit losses | ( | |||||||
Noninterest expense | ||||||||
Income before income taxes | ||||||||
Income tax expense | ||||||||
Net income | $ | $ | ||||||
Allocated goodwill | $ | $ |
($ in thousands) | AFS Investment Securities | Cash Flow Hedge Derivatives | Defined Benefit Pension and Postretirement Obligations | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance December 31, 2022 | $ | ( | $ | $ | ( | $ | ( | |||||||
Other comprehensive income before reclassifications | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||
HTM investment securities, net, at amortized cost | ||||||||||||||
Other assets / accrued expenses and other liabilities | ||||||||||||||
Interest income | ||||||||||||||
Personnel expense | ( | ( | ||||||||||||
Other expense | ||||||||||||||
Income tax (expense) benefit | ( | ( | ( | |||||||||||
Net other comprehensive income during period | ||||||||||||||
Balance March 31, 2023 | $ | ( | $ | $ | ( | $ | ( | |||||||
Balance December 31, 2021 | $ | ( | $ | $ | ( | $ | ( | |||||||
Other comprehensive (loss) before reclassifications | ( | ( | ||||||||||||
Unrealized (losses) on AFS securities transferred to HTM securities | ( | ( | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||
Investment securities (gains), net | ( | ( | ||||||||||||
HTM investment securities, net, at amortized cost | ||||||||||||||
Personnel expense | ( | ( | ||||||||||||
Other expense | ||||||||||||||
Income tax benefit | ||||||||||||||
Net other comprehensive (loss) during period | ( | ( | ( | |||||||||||
Balance March 31, 2022 | $ | ( | $ | $ | ( | $ | ( | |||||||
Three Months Ended Mar 31, | ||||||||
($ in thousands) | 2023 | 2022 | ||||||
Operating lease costs | $ | $ | ||||||
Finance lease costs | ||||||||
Operating lease cash flows | ||||||||
Finance lease cash flows |
($ in thousands) | Consolidated Balance Sheets Category | Mar 31, 2023 | Dec 31, 2022 | ||||||||
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 |
Mar 31, 2023 | Dec 31, 2022 | |||||||||||||||||||
($ 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 | ||||||||||||||||||||
Retail and corporate offices | $ | % | $ | % | ||||||||||||||||
Land | % | % | ||||||||||||||||||
Equipment | % | % | ||||||||||||||||||
Total operating leases | $ | % | $ | % | ||||||||||||||||
Finance leases | ||||||||||||||||||||
Retail and corporate offices | $ | % | $ | % | ||||||||||||||||
Total finance leases | $ | % | $ | % |
($ in thousands) | Operating Leases | Finance Leases | Total Leases | ||||||||
Nine months ended December 31, 2023 | $ | $ | $ | ||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Beyond 2027 | |||||||||||
Total lease payments | $ | $ | $ | ||||||||
Less: interest | |||||||||||
Present value of lease payments | $ | $ | $ |
ITEM 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended | |||||||||||||||||
($ in thousands, except per share data) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||
Net income | $ | 103,360 | $ | 108,762 | $ | 96,275 | $ | 86,824 | $ | 74,262 | |||||||
Net income available to common equity | 100,485 | 105,887 | 93,400 | 83,949 | 71,387 | ||||||||||||
Earnings per common share - basic | 0.67 | 0.70 | 0.62 | 0.56 | 0.48 | ||||||||||||
Earnings per common share - diluted | 0.66 | 0.70 | 0.62 | 0.56 | 0.47 | ||||||||||||
Effective tax rate | 20.92 | % | 18.89 | % | 21.37 | % | 21.20 | % | 20.07 | % |
Three Months Ended | |||||||||||||||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | |||||||||||||||||||||||||||
($ 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) | |||||||||||||||||||||||||||||
Asset-based lending & equipment finance | $ | 480,472 | $ | 7,448 | 6.28 | % | $ | 421,540 | $ | 5,901 | 5.56 | % | $ | 202,836 | $ | 1,449 | 2.90 | % | |||||||||||
Commercial and business lending (excl ABL and equipment finance) | 10,135,554 | 159,726 | 6.39 | % | 10,108,444 | 141,283 | 5.55 | % | 8,859,450 | 54,031 | 2.47 | % | |||||||||||||||||
Commercial real estate lending | 7,251,193 | 119,087 | 6.66 | % | 7,062,405 | 105,479 | 5.93 | % | 6,177,062 | 43,886 | 2.88 | % | |||||||||||||||||
Total commercial | 17,867,219 | 286,262 | 6.50 | % | 17,592,389 | 252,663 | 5.70 | % | 15,239,348 | 99,366 | 2.64 | % | |||||||||||||||||
Residential mortgage | 8,584,528 | 70,711 | 3.30 | % | 8,443,661 | 68,069 | 3.22 | % | 7,671,329 | 55,403 | 2.89 | % | |||||||||||||||||
Auto finance | 1,490,115 | 16,458 | 4.48 | % | 1,244,436 | 12,911 | 4.12 | % | 305,202 | 2,649 | 3.52 | % | |||||||||||||||||
Other retail | 903,956 | 18,494 | 8.23 | % | 914,848 | 16,366 | 7.13 | % | 881,859 | 10,662 | 4.87 | % | |||||||||||||||||
Total loans | 28,845,818 | 391,925 | 5.49 | % | 28,195,334 | 350,009 | 4.93 | % | 24,097,738 | 168,081 | 2.81 | % | |||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Taxable | 4,912,416 | 30,142 | 2.45 | % | 4,336,132 | 21,435 | 1.98 | % | 4,350,109 | 16,472 | 1.52 | % | |||||||||||||||||
Tax-exempt(a) | 2,329,519 | 20,192 | 3.47 | % | 2,428,751 | 21,000 | 3.46 | % | 2,384,601 | 20,296 | 3.40 | % | |||||||||||||||||
Other short-term investments | 493,061 | 5,329 | 4.37 | % | 408,091 | 3,779 | 3.68 | % | 1,154,939 | 1,993 | 0.70 | % | |||||||||||||||||
Investments and other | 7,734,996 | 55,664 | 2.88 | % | 7,172,975 | 46,213 | 2.57 | % | 7,889,649 | 38,761 | 1.96 | % | |||||||||||||||||
Total earning assets | 36,580,814 | $ | 447,589 | 4.94 | % | 35,368,309 | $ | 396,222 | 4.46 | % | 31,987,386 | $ | 206,842 | 2.60 | % | ||||||||||||||
Other assets, net | 3,026,251 | 3,017,127 | 3,212,796 | ||||||||||||||||||||||||||
Total assets | $ | 39,607,065 | $ | 38,385,436 | $ | 35,200,182 | |||||||||||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||
Interest-bearing deposits | |||||||||||||||||||||||||||||
Savings | $ | 4,664,624 | $ | 9,859 | 0.86 | % | $ | 4,660,696 | $ | 3,607 | 0.31 | % | $ | 4,529,991 | $ | 380 | 0.03 | % | |||||||||||
Interest-bearing demand | 6,814,487 | 29,918 | 1.78 | % | 6,831,213 | 20,861 | 1.21 | % | 6,722,038 | 1,025 | 0.06 | % | |||||||||||||||||
Money market | 7,536,393 | 41,637 | 2.24 | % | 7,382,793 | 23,728 | 1.28 | % | 7,030,945 | 965 | 0.06 | % | |||||||||||||||||
Network transaction deposits | 1,147,089 | 12,825 | 4.53 | % | 901,168 | 8,261 | 3.64 | % | 734,895 | 265 | 0.15 | % | |||||||||||||||||
Time deposits | 2,362,260 | 15,182 | 2.61 | % | 1,463,204 | 4,262 | 1.16 | % | 1,313,101 | 937 | 0.29 | % | |||||||||||||||||
Total interest-bearing deposits | 22,524,853 | 109,422 | 1.97 | % | 21,239,073 | 60,719 | 1.13 | % | 20,330,970 | 3,571 | 0.07 | % | |||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 429,780 | 3,143 | 2.97 | % | 424,352 | 2,280 | 2.13 | % | 293,915 | 38 | 0.05 | % | |||||||||||||||||
Commercial paper | 17,339 | — | 0.01 | % | 12,927 | — | 0.01 | % | 27,963 | 1 | 0.01 | % | |||||||||||||||||
FHLB advances | 4,254,532 | 49,960 | 4.76 | % | 3,790,101 | 36,824 | 3.85 | % | 1,610,983 | 8,182 | 2.06 | % | |||||||||||||||||
Long-term funding | 408,175 | 6,281 | 6.16 | % | 248,645 | 2,470 | 3.97 | % | 249,632 | 2,730 | 4.38 | % | |||||||||||||||||
Total short and long-term funding | 5,109,826 | 59,384 | 4.71 | % | 4,476,025 | 41,575 | 3.69 | % | 2,182,492 | 10,951 | 2.03 | % | |||||||||||||||||
Total interest-bearing liabilities | 27,634,679 | $ | 168,807 | 2.48 | % | 25,715,098 | $ | 102,294 | 1.58 | % | 22,513,462 | $ | 14,522 | 0.26 | % | ||||||||||||||
Noninterest-bearing demand deposits | 7,340,219 | 8,088,435 | 8,316,399 | ||||||||||||||||||||||||||
Other liabilities | 570,166 | 590,223 | 383,528 | ||||||||||||||||||||||||||
Stockholders’ equity | 4,062,001 | 3,991,679 | 3,986,792 | ||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 39,607,065 | $ | 38,385,436 | $ | 35,200,182 | |||||||||||||||||||||||
Interest rate spread | 2.46 | % | 2.88 | % | 2.34 | % | |||||||||||||||||||||||
Net free funds | 0.61 | % | 0.43 | % | 0.08 | % | |||||||||||||||||||||||
Fully tax-equivalent net interest income and net interest margin | $ | 278,782 | 3.07 | % | $ | 293,929 | 3.31 | % | $ | 192,320 | 2.42 | % | |||||||||||||||||
Fully tax-equivalent adjustment | 4,772 | 4,939 | 4,573 | ||||||||||||||||||||||||||
Net interest income | $ | 274,010 | $ | 288,989 | $ | 187,747 |
Three months ended | Changes vs | ||||||||||||||||||||||
($ in thousands, except as noted) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||
Wealth management fees | $ | 20,189 | $ | 20,403 | $ | 19,984 | $ | 21,332 | $ | 22,404 | (1) | % | (10) | % | |||||||||
Service charges and deposit account fees | 12,994 | 13,918 | 15,029 | 16,506 | 16,856 | (7) | % | (23) | % | ||||||||||||||
Card-based fees | 10,586 | 11,167 | 11,479 | 11,442 | 9,926 | (5) | % | 7 | % | ||||||||||||||
Other fee-based revenue | 4,276 | 3,290 | 4,487 | 4,360 | 3,766 | 30 | % | 14 | % | ||||||||||||||
Total fee-based revenue | 48,045 | 48,779 | 50,979 | 53,641 | 52,952 | (2) | % | (9) | % | ||||||||||||||
Capital markets, net | 5,083 | 5,586 | 7,675 | 8,010 | 8,646 | (9) | % | (41) | % | ||||||||||||||
Mortgage banking, net | 3,545 | 2,238 | 2,098 | 6,145 | 8,391 | 58 | % | (58) | % | ||||||||||||||
Bank and corporate owned life insurance | 2,664 | 3,427 | 1,827 | 4,106 | 2,071 | (22) | % | 29 | % | ||||||||||||||
Other | 2,422 | 4,102 | 2,527 | 1,888 | 2,198 | (41) | % | 10 | % | ||||||||||||||
Subtotal | 61,758 | 64,132 | 65,106 | 73,790 | 74,258 | (4) | % | (17) | % | ||||||||||||||
Asset gains (losses), net | 263 | (545) | 18 | 1,677 | 188 | N/M | 40 | % | |||||||||||||||
Investment securities gains (losses), net | 51 | (1,930) | 5,664 | (8) | 21 | N/M | 143 | % | |||||||||||||||
Total noninterest income | $ | 62,073 | $ | 61,657 | $ | 70,788 | $ | 75,458 | $ | 74,467 | 1 | % | (17) | % | |||||||||
Mortgage loans originated for sale during period | $ | 69,254 | $ | 64,419 | $ | 131,743 | $ | 151,838 | $ | 252,113 | 8 | % | (73) | % | |||||||||
Mortgage loan settlements during period | 54,652 | 94,682 | 119,942 | 204,321 | 296,089 | (42) | % | (82) | % | ||||||||||||||
Assets under management, at market value(a) | 12,412 | 11,843 | 11,142 | 11,561 | 12,937 | 5 | % | (4) | % |
Three months ended | Change vs | ||||||||||||||||||||||
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||
Personnel | $ | 116,420 | $ | 118,381 | $ | 118,243 | $ | 112,666 | $ | 104,811 | (2) | % | 11 | % | |||||||||
Technology | 23,598 | 25,299 | 22,694 | 21,223 | 21,485 | (7) | % | 10 | % | ||||||||||||||
Occupancy | 15,063 | 15,846 | 13,717 | 14,151 | 16,080 | (5) | % | (6) | % | ||||||||||||||
Business development and advertising | 5,849 | 8,136 | 6,778 | 5,655 | 4,954 | (28) | % | 18 | % | ||||||||||||||
Equipment | 4,930 | 4,791 | 4,921 | 4,960 | 4,960 | 3 | % | (1) | % | ||||||||||||||
Legal and professional | 3,857 | 4,132 | 4,159 | 4,873 | 5,087 | (7) | % | (24) | % | ||||||||||||||
Loan and foreclosure costs | 1,138 | 804 | 1,631 | 1,476 | 2,014 | 42 | % | (43) | % | ||||||||||||||
FDIC assessment | 6,875 | 6,350 | 5,800 | 5,400 | 5,100 | 8 | % | 35 | % | ||||||||||||||
Other intangible amortization | 2,203 | 2,203 | 2,203 | 2,203 | 2,203 | — | % | — | % | ||||||||||||||
Other | 7,479 | 10,618 | 15,645 | 8,815 | 6,597 | (30) | % | 13 | % | ||||||||||||||
Total noninterest expense | $ | 187,412 | $ | 196,560 | $ | 195,791 | $ | 181,420 | $ | 173,292 | (5) | % | 8 | % | |||||||||
Average FTEs(a) | 4,219 | 4,169 | 4,182 | 4,101 | 4,018 | 1 | % | 5 | % |
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||||||
($ in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
Asset-based lending & equipment finance | $ | 522,834 | 2 | % | $ | 458,887 | 2 | % | $ | 380,830 | 1 | % | $ | 263,044 | 1 | % | $ | 231,040 | 1 | % | ||||||||||||
Commercial and industrial | 9,346,947 | 32 | % | 9,300,567 | 32 | % | 9,191,094 | 33 | % | 8,993,640 | 34 | % | 8,120,375 | 33 | % | |||||||||||||||||
Commercial real estate — owner occupied | 1,050,236 | 4 | % | 991,722 | 3 | % | 999,786 | 4 | % | 928,152 | 4 | % | 973,572 | 4 | % | |||||||||||||||||
Commercial and business lending | 10,920,017 | 37 | % | 10,751,176 | 37 | % | 10,571,711 | 38 | % | 10,184,836 | 38 | % | 9,324,986 | 38 | % | |||||||||||||||||
Commercial real estate — investor | 5,094,249 | 17 | % | 5,080,344 | 18 | % | 5,064,289 | 18 | % | 4,790,241 | 18 | % | 4,469,241 | 18 | % | |||||||||||||||||
Real estate construction | 2,147,070 | 7 | % | 2,155,222 | 7 | % | 1,835,159 | 7 | % | 1,775,648 | 7 | % | 1,760,076 | 7 | % | |||||||||||||||||
Commercial real estate lending | 7,241,318 | 25 | % | 7,235,565 | 25 | % | 6,899,449 | 25 | % | 6,565,889 | 25 | % | 6,229,317 | 25 | % | |||||||||||||||||
Total commercial | 18,161,335 | 62 | % | 17,986,742 | 62 | % | 17,471,159 | 63 | % | 16,750,726 | 63 | % | 15,554,303 | 63 | % | |||||||||||||||||
Residential mortgage | 8,605,164 | 29 | % | 8,511,550 | 30 | % | 8,314,902 | 30 | % | 8,002,943 | 30 | % | 7,609,343 | 31 | % | |||||||||||||||||
Auto finance | 1,551,538 | 5 | % | 1,382,073 | 5 | % | 1,117,136 | 4 | % | 847,969 | 3 | % | 497,523 | 2 | % | |||||||||||||||||
Home equity | 609,787 | 2 | % | 624,353 | 2 | % | 612,608 | 2 | % | 592,843 | 2 | % | 580,867 | 2 | % | |||||||||||||||||
Other consumer | 279,248 | 1 | % | 294,851 | 1 | % | 301,475 | 1 | % | 300,217 | 1 | % | 289,889 | 1 | % | |||||||||||||||||
Total consumer | 11,045,737 | 38 | % | 10,812,828 | 38 | % | 10,346,121 | 37 | % | 9,743,972 | 37 | % | 8,977,622 | 37 | % | |||||||||||||||||
Total loans | $ | 29,207,072 | 100 | % | $ | 28,799,569 | 100 | % | $ | 27,817,280 | 100 | % | $ | 26,494,698 | 100 | % | $ | 24,531,926 | 100 | % | ||||||||||||
($ in thousands) | Within 1 Year(a) | 1-5 Years | 5-15 Years | Over 15 Years | Total | % of Total | ||||||||||||||
Asset-based lending & equipment finance | $ | 262,848 | $ | 143,962 | $ | 116,024 | $ | — | $ | 522,834 | 2 | % | ||||||||
Commercial and industrial | 8,794,411 | 407,159 | 136,038 | 9,339 | 9,346,947 | 32 | % | |||||||||||||
Commercial real estate — owner occupied | 645,287 | 273,288 | 131,106 | 555 | 1,050,236 | 4 | % | |||||||||||||
Commercial real estate — investor | 4,729,408 | 215,804 | 149,037 | — | 5,094,249 | 17 | % | |||||||||||||
Real estate construction | 2,074,862 | 33,843 | 29,311 | 9,053 | 2,147,070 | 7 | % | |||||||||||||
Commercial - adjustable | 10,551,715 | 17,924 | 16,108 | — | 10,585,747 | 36 | % | |||||||||||||
Commercial - fixed | 5,955,100 | 1,056,133 | 545,408 | 18,947 | 7,575,588 | 26 | % | |||||||||||||
Residential mortgage - adjustable | 300,787 | 828,859 | 1,925,063 | 397 | 3,055,107 | 10 | % | |||||||||||||
Residential mortgage - fixed | 5,724 | 98,004 | 578,238 | 4,868,092 | 5,550,057 | 19 | % | |||||||||||||
Auto finance | 274 | 393,593 | 1,157,671 | — | 1,551,538 | 5 | % | |||||||||||||
Home equity | 540,506 | 15,976 | 44,135 | 9,170 | 609,787 | 2 | % | |||||||||||||
Other consumer | 198,563 | 37,065 | 28,135 | 15,485 | 279,248 | 1 | % | |||||||||||||
Total loans | $ | 17,552,671 | $ | 2,447,553 | $ | 4,294,757 | $ | 4,912,091 | $ | 29,207,072 | 100 | % | ||||||||
Fixed-rate | $ | 5,981,878 | $ | 1,599,102 | $ | 2,353,586 | $ | 4,911,694 | $ | 14,846,259 | 51 | % | ||||||||
Floating or adjustable rate | 11,570,792 | 848,452 | 1,941,172 | 397 | 14,360,813 | 49 | % | |||||||||||||
Total | $ | 17,552,671 | $ | 2,447,553 | $ | 4,294,757 | $ | 4,912,091 | $ | 29,207,072 | 100 | % | ||||||||
March 31, 2023 | NAICS Subsector | Outstanding Balance | Total Exposure | % of Total Loan Exposure | ||||||||||
Real Estate(a) | 531 | $ | 1,859,450 | $ | 3,481,409 | 8 | % | |||||||
Utilities(b) | 221 | 2,200,995 | 2,586,278 | 6 | % | |||||||||
Credit Intermediation and Related Activities(c) | 522 | 951,490 | 1,980,531 | 5 | % | |||||||||
March 31, 2023 | % of Total Loan Exposure | % of Total Commercial Real Estate - Investor Loan Exposure | ||||||
Multi-Family | 4 | % | 35 | % | ||||
Industrial | 3 | % | 27 | % | ||||
Office | 3 | % | 24 | % | ||||
March 31, 2023 | % of Total Loan Exposure | % of Total Real Estate Construction Loan Exposure | ||||||
Multi-Family | 5 | % | 42 | % | ||||
Industrial | 3 | % | 23 | % | ||||
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||
Nonperforming assets | |||||||||||||||||
Commercial and industrial | $ | 22,735 | $ | 14,329 | $ | 15,576 | $ | 843 | $ | 266 | |||||||
Commercial real estate — owner occupied | 1,478 | — | — | — | — | ||||||||||||
Commercial and business lending | 24,213 | 14,329 | 15,576 | 843 | 266 | ||||||||||||
Commercial real estate — investor | 25,122 | 29,380 | 37,479 | 46,823 | 80,886 | ||||||||||||
Real estate construction | 178 | 105 | 141 | 604 | 609 | ||||||||||||
Commercial real estate lending | 25,300 | 29,485 | 37,620 | 47,427 | 81,495 | ||||||||||||
Total commercial | 49,513 | 43,814 | 53,196 | 48,270 | 81,761 | ||||||||||||
Residential mortgage | 58,274 | 58,480 | 55,485 | 52,840 | 53,827 | ||||||||||||
Auto finance | 2,436 | 1,490 | 302 | 53 | 49 | ||||||||||||
Home equity | 7,246 | 7,487 | 7,325 | 7,100 | 7,490 | ||||||||||||
Other consumer | 100 | 197 | 98 | 83 | 95 | ||||||||||||
Total consumer | 68,056 | 67,654 | 63,210 | 60,075 | 61,460 | ||||||||||||
Total nonaccrual loans | 117,569 | 111,467 | 116,406 | 108,345 | 143,221 | ||||||||||||
Commercial real estate owned | 3,071 | 325 | 325 | 957 | 861 | ||||||||||||
Residential real estate owned | 2,987 | 2,878 | 2,560 | 3,042 | 2,209 | ||||||||||||
Bank properties real estate owned(a) | 9,125 | 11,580 | 13,487 | 13,880 | 15,123 | ||||||||||||
OREO | 15,184 | 14,784 | 16,373 | 17,879 | 18,194 | ||||||||||||
Repossessed assets | 92 | 215 | 299 | 102 | — | ||||||||||||
Total nonperforming assets | $ | 132,845 | $ | 126,466 | $ | 133,078 | $ | 126,327 | $ | 161,414 | |||||||
Accruing loans past due 90 days or more | |||||||||||||||||
Commercial | $ | 323 | $ | 282 | $ | 121 | $ | 133 | $ | 125 | |||||||
Consumer | 1,380 | 1,446 | 1,297 | 1,422 | 1,470 | ||||||||||||
Total accruing loans past due 90 days or more | $ | 1,703 | $ | 1,728 | $ | 1,417 | $ | 1,555 | $ | 1,595 | |||||||
Restructured loans (accruing)(b) | |||||||||||||||||
Commercial | $ | 47 | $ | 13,093 | $ | 16,097 | $ | 15,425 | $ | 10,127 | |||||||
Consumer | 716 | 19,775 | 19,036 | 18,828 | 19,876 | ||||||||||||
Total restructured loans (accruing) | $ | 763 | $ | 32,868 | $ | 35,132 | $ | 34,253 | $ | 30,003 | |||||||
Nonaccrual restructured loans (included in nonaccrual loans) | $ | 341 | $ | 20,127 | $ | 21,650 | $ | 22,172 | $ | 19,352 | |||||||
Ratios | |||||||||||||||||
Nonaccrual loans to total loans | 0.40 | % | 0.39 | % | 0.42 | % | 0.41 | % | 0.58 | % | |||||||
NPAs to total loans plus OREO and repossessed assets | 0.45 | % | 0.44 | % | 0.48 | % | 0.48 | % | 0.66 | % | |||||||
NPAs to total assets | 0.33 | % | 0.32 | % | 0.35 | % | 0.34 | % | 0.46 | % | |||||||
Allowance for credit losses on loans to nonaccrual loans | 311.48 | % | 315.34 | % | 285.79 | % | 293.09 | % | 221.92 | % |
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||
Accruing loans 30-89 days past due | |||||||||||||||||
Commercial and industrial | $ | 4,239 | $ | 6,283 | $ | 1,861 | $ | 1,642 | $ | 1,086 | |||||||
Commercial real estate — owner occupied | 2,955 | 230 | — | — | 198 | ||||||||||||
Commercial and business lending | 7,195 | 6,512 | 1,861 | 1,642 | 1,284 | ||||||||||||
Commercial real estate — investor | — | 1,067 | — | 5,484 | — | ||||||||||||
Real estate construction | — | 39 | 43 | — | — | ||||||||||||
Commercial real estate lending | — | 1,105 | 43 | 5,484 | — | ||||||||||||
Total commercial | 7,195 | 7,618 | 1,904 | 7,126 | 1,284 | ||||||||||||
Residential mortgage | 7,626 | 9,874 | 6,517 | 5,315 | 4,957 | ||||||||||||
Auto finance | 8,640 | 9,408 | 6,206 | 2,906 | 949 | ||||||||||||
Home equity | 4,113 | 5,607 | 4,234 | 2,961 | 4,207 | ||||||||||||
Other consumer | 1,723 | 1,610 | 1,592 | 1,365 | 1,232 | ||||||||||||
Total consumer | 22,102 | 26,499 | 18,549 | 12,547 | 11,345 | ||||||||||||
Total accruing loans 30-89 days past due | $ | 29,297 | $ | 34,117 | $ | 20,452 | $ | 19,673 | $ | 12,629 | |||||||
Potential problem loans | |||||||||||||||||
Asset-based lending & equipment finance | $ | 17,396 | $ | 17,698 | $ | 19,266 | $ | 19,813 | $ | 19,057 | |||||||
Commercial and industrial | 117,650 | 118,851 | 89,290 | 84,832 | 93,450 | ||||||||||||
Commercial real estate — owner occupied | 32,077 | 34,422 | 28,287 | 38,628 | 24,005 | ||||||||||||
Commercial and business lending | 167,124 | 170,971 | 136,843 | 143,273 | 136,513 | ||||||||||||
Commercial real estate — investor | 89,653 | 92,535 | 117,982 | 132,635 | 130,792 | ||||||||||||
Real estate construction | — | 970 | — | 82 | 200 | ||||||||||||
Commercial real estate lending | 89,653 | 93,505 | 117,982 | 132,717 | 130,992 | ||||||||||||
Total commercial | 256,776 | 264,476 | 254,825 | 275,990 | 267,505 | ||||||||||||
Residential mortgage | 1,684 | 1,978 | 2,845 | 3,297 | 3,032 | ||||||||||||
Home equity | 244 | 197 | 185 | 188 | 156 | ||||||||||||
Total consumer | 1,928 | 2,175 | 3,030 | 3,486 | 3,188 | ||||||||||||
Total potential problem loans | $ | 258,704 | $ | 266,651 | $ | 257,855 | $ | 279,475 | $ | 270,693 |
Quarter Ended | |||||||||||||||||
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||
Allowance for Loan Losses | |||||||||||||||||
Balance at beginning of period | $ | 312,720 | $ | 292,904 | $ | 280,771 | $ | 279,058 | $ | 280,015 | |||||||
Provision for loan losses | 17,000 | 21,000 | 14,000 | 2,000 | (3,000) | ||||||||||||
Charge offs | (5,501) | (2,982) | (3,346) | (1,791) | (2,028) | ||||||||||||
Recoveries | 2,212 | 1,798 | 1,478 | 1,504 | 4,072 | ||||||||||||
Net (charge offs) recoveries | (3,289) | (1,183) | (1,867) | (287) | 2,044 | ||||||||||||
Balance at end of period | $ | 326,432 | $ | 312,720 | $ | 292,904 | $ | 280,771 | $ | 279,058 | |||||||
Allowance for Unfunded Commitments | |||||||||||||||||
Balance at beginning of period | $ | 38,776 | $ | 39,776 | $ | 36,776 | $ | 38,776 | $ | 39,776 | |||||||
Provision for unfunded commitments | 1,000 | (1,000) | 3,000 | (2,000) | (1,000) | ||||||||||||
Balance at end of period | $ | 39,776 | $ | 38,776 | $ | 39,776 | $ | 36,776 | $ | 38,776 | |||||||
Allowance for credit losses on loans | $ | 366,208 | $ | 351,496 | $ | 332,680 | $ | 317,547 | $ | 317,835 | |||||||
Provision for credit losses on loans | 18,000 | 20,000 | 17,000 | — | (4,000) | ||||||||||||
Net loan (charge offs) recoveries | |||||||||||||||||
Commercial and industrial | (1,759) | 278 | (897) | (444) | 1,854 | ||||||||||||
Commercial real estate — owner occupied | 3 | 3 | 3 | 4 | 3 | ||||||||||||
Commercial and business lending | (1,756) | 281 | (894) | (440) | 1,857 | ||||||||||||
Commercial real estate — investor | — | — | — | — | — | ||||||||||||
Real estate construction | 18 | 16 | 9 | 2 | 32 | ||||||||||||
Commercial real estate lending | 18 | 16 | 9 | 2 | 32 | ||||||||||||
Total commercial | (1,738) | 297 | (885) | (439) | 1,889 | ||||||||||||
Residential mortgage | (53) | (125) | (42) | 220 | 288 | ||||||||||||
Auto finance | (957) | (768) | (165) | (14) | 4 | ||||||||||||
Home equity | 340 | 123 | (101) | 461 | 315 | ||||||||||||
Other consumer | (881) | (711) | (675) | (516) | (451) | ||||||||||||
Total consumer | (1,550) | (1,480) | (983) | 151 | 155 | ||||||||||||
Total net (charge offs) recoveries | $ | (3,289) | $ | (1,183) | $ | (1,867) | $ | (287) | $ | 2,044 | |||||||
Ratios | |||||||||||||||||
Allowance for credit losses on loans to total loans | 1.25 | % | 1.22 | % | 1.20 | % | 1.20 | % | 1.30 | % | |||||||
Allowance for credit losses on loans to net charge offs (annualized) | 27.5x | 74.9x | 44.9x | N/M | N/M | ||||||||||||
Loan Evaluation Method for ACLL | |||||||||||||||||
Individually evaluated for impairment | $ | 11,585 | $ | 10,324 | $ | 15,739 | $ | 10,068 | $ | 13,625 | |||||||
Collectively evaluated for impairment | 354,623 | 341,172 | 316,942 | 307,480 | 304,210 | ||||||||||||
Total ACLL | $ | 366,208 | $ | 351,496 | $ | 332,680 | $ | 317,547 | $ | 317,835 | |||||||
Loan Balance | |||||||||||||||||
Individually evaluated for impairment | $ | 48,934 | $ | 76,577 | $ | 87,712 | $ | 81,457 | $ | 110,445 | |||||||
Collectively evaluated for impairment | 29,158,138 | 28,722,992 | 27,729,568 | 26,413,241 | 24,421,481 | ||||||||||||
Total loan balance | $ | 29,207,072 | $ | 28,799,569 | $ | 27,817,280 | $ | 26,494,698 | $ | 24,531,926 |
Quarter Ended | |||||||||||||||||
(In basis points) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||
Net loan (charge offs) recoveries | |||||||||||||||||
Commercial and industrial | (8) | 1 | (4) | (2) | 10 | ||||||||||||
Commercial real estate — owner occupied | — | — | — | — | — | ||||||||||||
Commercial and business lending | (7) | 1 | (3) | (2) | 8 | ||||||||||||
Commercial real estate — investor | — | — | — | — | — | ||||||||||||
Real estate construction | — | — | — | — | 1 | ||||||||||||
Commercial real estate lending | — | — | — | — | — | ||||||||||||
Total commercial | (4) | 1 | (2) | (1) | 5 | ||||||||||||
Residential mortgage | — | (1) | — | 1 | 2 | ||||||||||||
Auto finance | (26) | (24) | (7) | (1) | 1 | ||||||||||||
Home equity | 22 | 8 | (7) | 32 | 22 | ||||||||||||
Other consumer | (125) | (95) | (89) | (70) | (62) | ||||||||||||
Total consumer | (6) | (6) | (4) | 1 | 1 | ||||||||||||
Total net (charge offs) recoveries | (5) | (2) | (3) | — | 3 | ||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||||||
($ in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
Noninterest-bearing demand | $ | 7,328,689 | 24 | % | $ | 7,760,811 | 26 | % | $ | 8,224,579 | 28 | % | $ | 8,085,702 | 28 | % | $ | 8,315,699 | 29 | % | ||||||||||||
Savings | 4,730,472 | 16 | % | 4,604,848 | 15 | % | 4,708,720 | 16 | % | 4,708,156 | 16 | % | 4,661,232 | 16 | % | |||||||||||||||||
Interest-bearing demand | 6,977,121 | 23 | % | 7,100,727 | 24 | % | 7,122,218 | 24 | % | 6,789,722 | 24 | % | 6,616,767 | 23 | % | |||||||||||||||||
Money market | 8,357,625 | 28 | % | 8,239,610 | 28 | % | 7,909,232 | 27 | % | 7,769,415 | 27 | % | 7,522,797 | 26 | % | |||||||||||||||||
Brokered CDs | 1,185,565 | 4 | % | 541,916 | 2 | % | — | — | % | 2,121 | — | % | — | — | % | |||||||||||||||||
Other time deposits | 1,752,351 | 6 | % | 1,388,242 | 5 | % | 1,233,833 | 4 | % | 1,221,460 | 4 | % | 1,288,913 | 5 | % | |||||||||||||||||
Total deposits | $ | 30,331,824 | 100 | % | $ | 29,636,154 | 100 | % | $ | 29,198,581 | 100 | % | $ | 28,576,577 | 100 | % | $ | 28,405,409 | 100 | % | ||||||||||||
Other customer funding(a) | 226,258 | 261,767 | 283,856 | 296,440 | 299,301 | |||||||||||||||||||||||||||
Total deposits and other customer funding | $ | 30,558,081 | $ | 29,897,921 | $ | 29,482,437 | $ | 28,873,017 | $ | 28,704,710 | ||||||||||||||||||||||
Network transaction deposits(b) | $ | 1,273,420 | $ | 979,003 | $ | 864,086 | $ | 891,902 | $ | 762,680 | ||||||||||||||||||||||
Net deposits and other customer funding(c) | 28,099,096 | 28,377,001 | 28,618,351 | 27,978,993 | 27,942,029 | |||||||||||||||||||||||||||
Time deposits of more than $250,000 | 345,169 | 282,206 | 222,318 | 180,705 | 209,208 |
Mar 31, 2023 | Dec 31, 2022 | |||||||||||||
Dynamic Forecast | Static Forecast | Dynamic Forecast | Static Forecast | |||||||||||
Gradual Rate Change | ||||||||||||||
100 bp increase in interest rates | 3.4 | % | 2.5 | % | 3.9 | % | 3.4 | % | ||||||
200 bp increase in interest rates | 6.8 | % | 5.0 | % | 7.8 | % | 6.8 | % | ||||||
100 bp decrease in interest rates | (2.3) | % | (1.4) | % | (3.4) | % | (2.9) | % | ||||||
200 bp decrease in interest rates | (4.4) | % | (2.6) | % | (6.7) | % | (5.7) | % |
Mar 31, 2023 | Dec 31, 2022 | |||||||
Instantaneous Rate Change | ||||||||
100 bp increase in interest rates | (5.9) | % | (4.2) | % | ||||
200 bp increase in interest rates | (11.9) | % | (8.2) | % | ||||
100 bp decrease in interest rates | 5.8 | % | 4.3 | % | ||||
200 bp decrease in interest rates | 10.5 | % | 8.0 | % |
March 31, 2023 | June 30, 2023 | ||||||||||
($ in thousands) | Balance | Commitment | Contractual Commitment(a) | ||||||||
Commercial and industrial(b) | $ | 494,394 | $ | 912,624 | $ | 877,121 | |||||
Commercial real estate - owner occupied | 228,463 | 246,371 | 238,371 | ||||||||
Commercial and business lending | 722,857 | 1,158,995 | 1,115,492 | ||||||||
Commercial real estate - investor | 1,811,217 | 1,918,860 | 1,789,636 | ||||||||
Real estate construction | 680,449 | 954,264 | 852,903 | ||||||||
Commercial real estate lending | 2,491,667 | 2,873,124 | 2,642,539 | ||||||||
Total commercial | 3,214,523 | 4,032,119 | 3,758,031 | ||||||||
Residential mortgage | 265,956 | 265,956 | 265,956 | ||||||||
Other consumer | 2,249 | 5,799 | 4,549 | ||||||||
Total consumer | 268,205 | 271,756 | 270,506 | ||||||||
Total | $ | 3,482,728 | $ | 4,303,874 | $ | 4,028,537 |
($ in thousands) | Note Reference | One Year or Less | One to Three Years | Three to Five Years | Over Five Years | Total | ||||||||||||||
Time deposits | $ | 2,531,249 | $ | 378,276 | $ | 28,386 | $ | 5 | $ | 2,937,916 | ||||||||||
Short-term funding | 8 | 226,608 | — | — | — | 226,608 | ||||||||||||||
FHLB advances | 8 | 3,785,633 | 395,540 | 605,417 | 199,548 | 4,986,138 | ||||||||||||||
Other long-term funding | 8 | 87 | 248,912 | 183 | 294,921 | 544,103 | ||||||||||||||
Operating leases | 16 | 5,458 | 8,912 | 7,297 | 5,271 | 26,938 | ||||||||||||||
Total | $ | 6,549,035 | $ | 1,031,640 | $ | 641,282 | $ | 499,745 | $ | 8,721,703 |
Quarter Ended | |||||||||||||||||
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||
Risk-based Capital(a) | |||||||||||||||||
CET1 | $ | 3,085,618 | $ | 3,035,578 | $ | 2,955,710 | $ | 2,896,675 | $ | 2,837,789 | |||||||
Tier 1 capital | 3,279,730 | 3,229,690 | 3,149,822 | 3,089,593 | 3,030,579 | ||||||||||||
Total capital | 3,990,606 | 3,680,227 | 3,582,099 | 3,506,864 | 3,448,108 | ||||||||||||
Total risk-weighted assets | 32,648,115 | 32,472,008 | 31,405,843 | 29,863,512 | 27,780,642 | ||||||||||||
Modified CECL transitional amount | 44,851 | 67,276 | 67,276 | 67,276 | 67,276 | ||||||||||||
CET1 capital ratio | 9.45 | % | 9.35 | % | 9.41 | % | 9.70 | % | 10.22 | % | |||||||
Tier 1 capital ratio | 10.05 | % | 9.95 | % | 10.03 | % | 10.35 | % | 10.91 | % | |||||||
Total capital ratio | 12.22 | % | 11.33 | % | 11.41 | % | 11.74 | % | 12.41 | % | |||||||
Tier 1 leverage ratio | 8.46 | % | 8.59 | % | 8.66 | % | 8.87 | % | 8.86 | % | |||||||
Selected Equity and Performance Ratios | |||||||||||||||||
Total stockholders’ equity / total assets | 10.14 | % | 10.19 | % | 10.39 | % | 10.63 | % | 11.30 | % | |||||||
Dividend payout ratio(b) | 31.34 | % | 30.00 | % | 32.26 | % | 35.71 | % | 41.67 | % | |||||||
Return on average assets | 1.06 | % | 1.12 | % | 1.02 | % | 0.97 | % | 0.86 | % | |||||||
Annualized noninterest expense / average assets | 1.92 | % | 2.03 | % | 2.08 | % | 2.04 | % | 2.00 | % |
Quarter Ended | |||||||||||||||||
($ in thousands) | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||||||||
Selected equity and performance ratios(a)(b)(c) | |||||||||||||||||
Tangible common equity / tangible assets | 7.03 | % | 6.97 | % | 7.06 | % | 7.23 | % | 7.68 | % | |||||||
Return on average equity | 10.32 | % | 10.81 | % | 9.59 | % | 8.85 | % | 7.55 | % | |||||||
Return on average tangible common equity | 15.26 | % | 16.15 | % | 14.32 | % | 13.29 | % | 11.26 | % | |||||||
Return on average CET1 | 13.38 | % | 14.04 | % | 12.69 | % | 11.77 | % | 10.27 | % | |||||||
Return on average tangible assets | 1.11 | % | 1.18 | % | 1.08 | % | 1.03 | % | 0.90 | % | |||||||
Average stockholders' equity / average assets | 10.26 | % | 10.40 | % | 10.69 | % | 11.02 | % | 11.33 | % | |||||||
Tangible common equity reconciliation(a) | |||||||||||||||||
Common equity | $ | 3,931,551 | $ | 3,821,378 | $ | 3,759,840 | $ | 3,766,187 | $ | 3,755,092 | |||||||
Goodwill and other intangible assets, net | (1,152,072) | (1,154,274) | (1,156,477) | (1,158,680) | (1,160,883) | ||||||||||||
Tangible common equity | $ | 2,779,480 | $ | 2,667,104 | $ | 2,603,363 | $ | 2,607,507 | $ | 2,594,209 | |||||||
Tangible assets reconciliation(a) | |||||||||||||||||
Total assets | $ | 40,702,519 | $ | 39,405,727 | $ | 38,049,607 | $ | 37,235,990 | $ | 34,955,900 | |||||||
Goodwill and other intangible assets, net | (1,152,072) | (1,154,274) | (1,156,477) | (1,158,680) | (1,160,883) | ||||||||||||
Tangible assets | $ | 39,550,448 | $ | 38,251,453 | $ | 36,893,130 | $ | 36,077,310 | $ | 33,795,017 | |||||||
Average tangible common equity and average CET1 reconciliation(a) | |||||||||||||||||
Common equity | $ | 3,867,890 | $ | 3,797,568 | $ | 3,791,396 | $ | 3,743,919 | $ | 3,793,597 | |||||||
Goodwill and other intangible assets, net | (1,153,173) | (1,155,408) | (1,157,754) | (1,160,035) | (1,162,204) | ||||||||||||
Tangible common equity | 2,714,716 | 2,642,160 | 2,633,642 | 2,583,884 | 2,631,393 | ||||||||||||
Modified CECL transitional amount | 44,851 | 67,276 | 67,276 | 67,276 | 67,276 | ||||||||||||
Accumulated other comprehensive loss | 258,827 | 254,178 | 189,935 | 170,253 | 80,383 | ||||||||||||
Deferred tax assets, net | 28,157 | 29,248 | 29,875 | 39,072 | 39,411 | ||||||||||||
Average CET1 | $ | 3,046,551 | $ | 2,992,862 | $ | 2,920,729 | $ | 2,860,485 | $ | 2,818,464 | |||||||
Average tangible assets reconciliation(a) | |||||||||||||||||
Total assets | $ | 39,607,065 | $ | 38,385,436 | $ | 37,271,779 | $ | 35,732,583 | $ | 35,200,182 | |||||||
Goodwill and other intangible assets, net | (1,153,173) | (1,155,408) | (1,157,754) | (1,160,035) | (1,162,204) | ||||||||||||
Tangible assets | $ | 38,453,892 | $ | 37,230,028 | $ | 36,114,025 | $ | 34,572,548 | $ | 34,037,978 | |||||||
Adjusted net income reconciliation(b) | |||||||||||||||||
Net income | $ | 103,360 | $ | 108,762 | $ | 96,275 | $ | 86,824 | $ | 74,262 | |||||||
Other intangible amortization, net of tax | 1,652 | 1,652 | 1,652 | 1,652 | 1,652 | ||||||||||||
Adjusted net income | $ | 105,012 | $ | 110,414 | $ | 97,927 | $ | 88,476 | $ | 75,914 | |||||||
Adjusted net income available to common equity reconciliation(b) | |||||||||||||||||
Net income available to common equity | $ | 100,485 | $ | 105,887 | $ | 93,400 | $ | 83,949 | $ | 71,387 | |||||||
Other intangible amortization, net of tax | 1,652 | 1,652 | 1,652 | 1,652 | 1,652 | ||||||||||||
Adjusted net income available to common equity | $ | 102,137 | $ | 107,539 | $ | 95,052 | $ | 85,601 | $ | 73,039 | |||||||
Core customer deposit reconciliation | |||||||||||||||||
Total deposits | $ | 30,331,824 | $ | 29,636,154 | $ | 29,198,581 | $ | 28,576,577 | $ | 28,405,409 | |||||||
Brokered CDs | (1,273,420) | (979,003) | (864,086) | (891,902) | (762,680) | ||||||||||||
Network transaction deposits | (1,185,565) | (541,916) | — | (2,121) | — | ||||||||||||
Core customer deposits | $ | 27,872,839 | $ | 28,115,235 | $ | 28,334,495 | $ | 27,682,553 | $ | 27,642,728 | |||||||
Efficiency ratio reconciliation(d) | |||||||||||||||||
Federal Reserve efficiency ratio | 56.07 | % | 55.47 | % | 60.32 | % | 61.53 | % | 65.71 | % | |||||||
Fully tax-equivalent adjustment | (0.79) | % | (0.77) | % | (0.87) | % | (0.98) | % | (1.13) | % | |||||||
Other intangible amortization | (0.66) | % | (0.62) | % | (0.67) | % | (0.76) | % | (0.84) | % | |||||||
Fully tax-equivalent efficiency ratio | 54.64 | % | 54.08 | % | 58.79 | % | 59.80 | % | 63.76 | % | |||||||
Three Months Ended Mar 31, | |||||||||||
($ in thousands) | 2023 | 2022 | % Change | ||||||||
Corporate and Commercial Specialty | |||||||||||
Total revenue | $ | 170,858 | $ | 136,886 | 25 | % | |||||
Provision for credit losses | 13,782 | 12,653 | 9 | % | |||||||
Noninterest expense | 62,061 | 56,528 | 10 | % | |||||||
Income tax expense | 17,737 | 12,307 | 44 | % | |||||||
Net income | 77,278 | 55,399 | 39 | % | |||||||
Average earning assets | 17,106,092 | 14,416,342 | 19 | % | |||||||
Average loans | 17,090,623 | 14,414,631 | 19 | % | |||||||
Average deposits | 9,692,711 | 9,411,118 | 3 | % | |||||||
Average allocated capital (Average CET1)(a) | 1,704,399 | 1,420,970 | 20 | % | |||||||
Return on average allocated capital(a) | 18.39 | % | 15.81 | % | N/M | ||||||
Community, Consumer, and Business | |||||||||||
Total revenue | $ | 194,312 | $ | 121,584 | 60 | % | |||||
Provision for credit losses | 6,758 | 4,656 | 45 | % | |||||||
Noninterest expense | 111,694 | 98,461 | 13 | % | |||||||
Income tax expense | 15,931 | 3,878 | N/M | ||||||||
Net income | 59,930 | 14,588 | N/M | ||||||||
Average earning assets | 11,253,794 | 9,175,473 | 23 | % | |||||||
Average loans | 11,253,794 | 9,175,473 | 23 | % | |||||||
Average deposits | 18,121,871 | 18,414,526 | (2) | % | |||||||
Average allocated capital (Average CET1)(a) | 711,506 | 514,543 | 38 | % | |||||||
Return on average allocated capital(a) | 34.16 | % | 11.50 | % | N/M | ||||||
Risk Management and Shared Services | |||||||||||
Total revenue | $ | (29,087) | $ | 3,744 | N/M | ||||||
Provision for credit losses | (2,568) | (21,300) | (88) | % | |||||||
Noninterest expense | 13,658 | 18,303 | (25) | % | |||||||
Income tax expense (benefit) | (6,328) | 2,465 | N/M | ||||||||
Net income (loss) | (33,848) | 4,275 | N/M | ||||||||
Average earning assets | 8,220,928 | 8,395,571 | (2) | % | |||||||
Average loans | 501,401 | 507,633 | (1) | % | |||||||
Average deposits | 2,050,490 | 821,726 | 150 | % | |||||||
Average allocated capital (Average CET1)(a) | 630,647 | 882,951 | (29) | % | |||||||
Return on average allocated capital(a) | (23.62) | % | 0.64 | % | N/M | ||||||
Consolidated Total | |||||||||||
Total revenue | $ | 336,083 | $ | 262,214 | 28 | % | |||||
Return on average allocated capital(a) | 13.38 | % | 10.27 | % | N/M |
($ in thousands) | March 31, 2023 | April 19, 2023 | ||||||
Total deposits | $ | 30,331,824 | $ | 31,414,831 | ||||
Insured and intercompany deposits | 19,418,657 | 20,659,250 | ||||||
Collateralized deposits(a) | 3,575,881 | 3,318,830 | ||||||
Uninsured, uncollateralized deposits | $ | 7,337,286 | $ | 7,436,751 |
($ in thousands) | March 31, 2023 | April 19, 2023 | ||||||
Federal Reserve Bank balance | $ | 504,169 | $ | 503,289 | ||||
Available FHLB Chicago capacity | 3,453,813 | 4,740,639 | ||||||
Available Federal Reserve Bank discount window capacity | 1,799,453 | 1,806,217 | ||||||
Available BTFP capacity | 644,915 | 644,256 | ||||||
Funding available within one business day(a) | 6,402,351 | 7,694,402 | ||||||
Available federal funds lines | 2,773,000 | 2,606,000 | ||||||
Available brokered deposits capacity(b) | 3,646,000 | 1,833,000 | ||||||
Unsecured debt capacity(b) | 1,000,000 | 1,000,000 | ||||||
Total available liquidity | $ | 13,821,351 | $ | 13,133,402 | ||||
Coverage ratio of uninsured and uncollateralized deposits with secured funding | 87 | % | 103 | % | ||||
Coverage ratio of uninsured and uncollateralized deposits with total funding | 188 | % | 177 | % |
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 | ||||||||||||||
January 1, 2023 - January 31, 2023 | 47,027 | $ | 22.54 | — | — | |||||||||
February 1, 2023 - February 28, 2023 | 152,799 | 23.78 | — | — | ||||||||||
March 1, 2023 - March 31, 2023 | 28,667 | 23.29 | — | — | ||||||||||
Total | 228,493 | $ | 23.47 | — | 4,429,695 |
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 March 31, 2023 has been formatted in Inline XBRL (Inline Extensible Business Reporting Language) and contained in Exhibits in 101. |
Signatures |
ASSOCIATED BANC-CORP | ||||||||
(Registrant) | ||||||||
Date: April 27, 2023 | /s/ Andrew J. Harmening | |||||||
Andrew J. Harmening | ||||||||
President and Chief Executive Officer | ||||||||
Date: April 27, 2023 | /s/ Derek S. Meyer | |||||||
Derek S. Meyer | ||||||||
Chief Financial Officer | ||||||||
Date: April 27, 2023 | /s/ Tammy C. Stadler | |||||||
Tammy C. Stadler | ||||||||
Chief Accounting Officer |
Date: April 27, 2023 | /s/ Andrew J. Harmening | |||||||
Andrew J. Harmening | ||||||||
President and Chief Executive Officer |
Date: April 27, 2023 | /s/ Derek S. Meyer | |||||||
Derek S. Meyer | ||||||||
Chief Financial Officer |
/s/ Andrew J. Harmening | |||||
Andrew J. Harmening | |||||
Chief Executive Officer | |||||
April 27, 2023 |
/s/ Derek S. Meyer | |||||
Derek S. Meyer | |||||
Chief Financial Officer | |||||
April 27, 2023 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
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 |
Series E Preferred Stock |
Series F Preferred Stock |
Cumulative Effect, Period Of Adoption, Adjustment |
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 [Member] |
Retained Earnings [Member]
Cumulative Effect, Period Of Adoption, Adjustment
|
Accumulated Other Comprehensive (Loss) |
Accumulated Other Comprehensive (Loss)
Cumulative Effect, Period Of Adoption, Adjustment
|
Treasury Stock, Common |
Treasury Stock, Common
Performance/Service Based RSAs, RSA,
|
Treasury Stock, Common
Cumulative Effect, Period Of Adoption, Adjustment
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2021 | $ 4,024,853 | $ 4,026,566 | $ 193,195 | $ 193,195 | $ 1,752 | $ 1,752 | $ 1,713,851 | $ 1,713,851 | $ 2,672,601 | $ 2,674,314 | $ (10,317) | $ (10,317) | $ (546,229) | $ (546,229) | |||
Beginning balance (Accounting Standards Update 2016-13) at Dec. 31, 2021 | $ 1,713 | $ 1,713 | |||||||||||||||
Comprehensive income: | |||||||||||||||||
Net income | 74,262 | 74,262 | |||||||||||||||
Net other comprehensive income during period | (126,708) | (126,708) | |||||||||||||||
Comprehensive income (loss) | (52,445) | ||||||||||||||||
Common stock issued: | |||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 6,654 | (11,911) | 0 | 18,565 | |||||||||||||
Purchase of treasury stock, | (5,193) | $ (5,193) | |||||||||||||||
Cash dividends: | |||||||||||||||||
Common stock | (30,583) | (30,583) | |||||||||||||||
Preferred stock(a) | (2,875) | (2,875) | |||||||||||||||
Stock-based compensation expense, net | 6,164 | 6,164 | |||||||||||||||
Ending balance at Mar. 31, 2022 | 3,948,287 | 193,195 | 1,752 | 1,708,104 | 2,715,118 | (137,024) | (532,858) | ||||||||||
Cash dividends: | |||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.3671875 | $ 0.3515625 | |||||||||||||||
Beginning balance at Dec. 31, 2022 | 4,015,490 | 194,112 | 1,752 | 1,712,733 | 2,904,882 | (272,799) | (525,190) | ||||||||||
Comprehensive income: | |||||||||||||||||
Net income | 103,360 | 103,360 | |||||||||||||||
Net other comprehensive income during period | 39,211 | 39,211 | |||||||||||||||
Comprehensive income (loss) | 142,571 | ||||||||||||||||
Common stock issued: | |||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1,766 | (12,612) | 14,379 | ||||||||||||||
Purchase of treasury stock, | (5,362) | $ (5,362) | |||||||||||||||
Cash dividends: | |||||||||||||||||
Common stock | (32,013) | (32,013) | |||||||||||||||
Preferred stock(a) | (2,875) | (2,875) | |||||||||||||||
Stock-based compensation expense, net | 6,086 | 6,086 | |||||||||||||||
Ending balance at Mar. 31, 2023 | $ 4,125,663 | $ 194,112 | $ 1,752 | $ 1,706,206 | $ 2,973,354 | $ (233,588) | $ (516,173) | ||||||||||
Cash dividends: | |||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.3671875 | $ 0.3515625 |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
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. 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.
|
Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | 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 2022 Annual Report on Form 10-K. New Accounting Pronouncements Adopted
Future Accounting Pronouncements The expected impact of applicable material accounting pronouncements recently issued or proposed but not yet required to be adopted are discussed in the table below. To the extent that the adoption of new accounting standards materially affects the Corporation's financial condition, results of operations, liquidity or disclosures, the impacts are discussed in the applicable sections of this financial review.
|
Earnings Per Common Share |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Stock-Based Compensation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The fair values of stock options and restricted stock awards 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. A summary of the Corporation’s stock option activity for the three months ended March 31, 2023 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 three months ended March 31, 2023, the intrinsic value of stock options exercised was approximately $219,000, compared to $3 million for the three months ended March 31, 2022. For the three months ended March 31, 2023, the total fair value of stock options vested was approximately $955,000 compared to $2 million for the three months ended March 31, 2022. The Corporation recognized compensation expense for the vesting of stock options of approximately $108,000 for the three months ended March 31, 2023, compared to $241,000 for the three months ended March 31, 2022. At March 31, 2023, the Corporation had approximately $270,000 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 determined by the Compensation and Benefits Committee of the Corporation's Board of Directors, 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 three months ended March 31, 2023:
(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 2022 and 2023 will cliff-vest after the year performance period has ended. Service-based restricted stock awards granted during 2022 and 2023 will vest ratably over a period of four years. Expense for restricted stock awards of $6 million was recorded for both the three months ended March 31, 2023 and the three months ended March 31, 2022. Included in compensation expense for the first three months of 2023 was $3 million of expense for the accelerated vesting of restricted stock awards granted to retirement eligible colleagues. The Corporation had $31 million of unrecognized compensation costs related to restricted stock awards at March 31, 2023 that are expected to be recognized over the remaining requisite service periods that extend predominately through the first quarter of 2027. 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.
|
Investment Securities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Investment securities are designated as AFS, HTM, or equity on the consolidated balance sheets at the time of purchase. The amortized cost and fair values of AFS and HTM securities at March 31, 2023 were as follows:
The amortized cost and fair values of AFS and HTM securities at December 31, 2022 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 AFS and HTM securities at March 31, 2023, 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 March 31, 2023:
The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2022:
The following table summarizes gross realized gains and losses on AFS securities, net write-up of equity securities, and proceeds from the sale of investment securities for the three months ended March 31, 2023 and 2022:
Investment securities with a carrying value of $2.2 billion and $2.3 billion at March 31, 2023 and December 31, 2022, respectively, were pledged as required to secure certain deposits or for other purposes. Accrued interest receivable on HTM securities totaled $16 million and $19 million at March 31, 2023 and December 31, 2022, respectively. Accrued interest receivable on AFS securities totaled $12 million and $9 million at March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022. A security is considered past due once it is 30 days past due under the terms of the agreement. At both March 31, 2023 and December 31, 2022, the Corporation had no past due HTM securities. The allowance for credit losses on HTM securities was approximately $25,000 at March 31, 2023 and approximately $54,000 at December 31, 2022, attributable entirely to the Corporation's municipal securities, included in HTM investment securities, 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 private-label residential mortgage-related securities that have credit enhancement which covers the first 15% of losses 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 AFS and HTM securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at March 31, 2023:
For comparative purposes, the following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022:
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 March 31, 2023 represent credit deterioration as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions. 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 bank 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 $245 million and $209 million at March 31, 2023 and December 31, 2022, respectively. The Corporation had Federal Reserve Bank stock of $87 million at both March 31, 2023 and December 31, 2022. Accrued interest receivable on FHLB stock totaled $4 million and $3 million at March 31, 2023 and December 31, 2022, respectively. There was approximately $776,000 of accrued interest receivable on Federal Reserve Bank Stock at March 31, 2023, and none at December 31, 2022. 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 other mutual funds. At both March 31, 2023 and December 31, 2022, the Corporation had equity securities with readily determinable fair values of $6 million. Equity securities without readily determinable fair values: The Corporation's portfolio of equity securities without readily determinable fair values, which primarily consists of Visa Class B restricted shares and an investment in a private SBA loan fund, was carried at $24 million and $19 million at March 31, 2023 and December 31, 2022, respectively
|
Loans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Loans The period end loan composition was as follows:
Accrued interest receivable on loans totaled $119 million at March 31, 2023, and $113 million at December 31, 2022, 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 was immaterial at both the three months ended March 31, 2023 and 2022. The following table presents loans by credit quality indicator by origination year at March 31, 2023:
(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination. The following table presents loans by credit quality indicator by origination year at December 31, 2022:
(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination. The following table presents gross charge offs by origination year at March 31, 2023:
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 ACLL, 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. Accruing loan modifications could be pass or special mention, depending on the risk rating on the loan. 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 loan modification, 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 March 31, 2023:
(a) Of the total nonaccrual loans, $78 million, or 66%, were current with respect to payment at March 31, 2023. (b) No interest income was recognized on nonaccrual loans for the three months ended March 31, 2023. In addition, there were $15 million of nonaccrual loans for which there was no related ACLL at March 31, 2023. The following table presents loans by past due status at December 31, 2022:
(a) Of the total nonaccrual loans, $64 million, or 58%, were current with respect to payment at December 31, 2022. (b) No interest income was recognized on nonaccrual loans for the year ended December 31, 2022. In addition, there were $11 million of nonaccrual loans for which there was no related ACLL at December 31, 2022. Loan Modifications and Troubled Debt Restructurings Under ASU 2022-02, effective January 1, 2023, loan modifications are reported if concessions have been granted to borrowers that are experiencing financial difficulty. Information on these loan modifications originated after the effective date is presented according to the new accounting guidance. Reporting periods prior to the adoption of ASU 2022-02 present information on TDRs under the previous disclosure requirements. The following tables show the composition of loan modifications made to borrowers experiencing financial difficulty by the loan portfolio and type of concessions granted during the three months ended March 31, 2023. Each of the types of concessions granted comprised less than 1% of their respective classes of loan portfolios at March 31, 2023.
The following tables summarize, by loan portfolio, the financial effect of the Corporation's loan modifications on the modified loans as of March 31, 2023:
(a) Due to market conditions, some interest rate concessions on floating rate loans may involve an increase in rate that was lower in comparison to the rate of increase for floating rate loans not modified. (b) During the three months ended March 31, 2023, interest rate concessions changed the weighted average interest rate on modified loans from 22% to 5%, which primarily consisted of credit cards.
The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last three months at March 31, 2023:
The following table provides the amortized cost of loan modifications by loan portfolio and type of concession that were modified in the previous three months and subsequently had a payment default, as of March 31, 2023:
The following table presents nonaccrual and performing restructured loans by loan portfolio at December 31, 2022:
The following table provides the number of loans modified in a TDR by loan portfolio, the recorded investment, and unpaid principal balance for the three months ended March 31, 2022:
(b) Represents pre-modification outstanding recorded investment. During the three months ended March 31, 2022, restructured loan modifications of commercial loans primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of consumer loans for the three months ended March 31, 2022 primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions. The following table provides the number of loans modified during the previous twelve months which subsequently defaulted during the three months ended March 31, 2022, and the recorded investment in these restructured loans at the time of default as of March 31, 2022:
The nature and extent of the impairment of modified loans, including those which have experienced a subsequent payment default, are considered in the determination of an appropriate level of the ACLL. 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 forecast the Corporation used for March 31, 2023 was the Moody's baseline scenario from February 2023, which was reviewed against the March 2023 baseline scenario with no material updates made, 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 11 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 three months ended March 31, 2023:
|
Goodwill and Other Intangible Assets |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2022, 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 2022 impairment test that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in 2022 or the first three months of 2023. The Corporation had goodwill of $1.1 billion at both March 31, 2023 and December 31, 2022. Core Deposit Intangibles The Corporation has CDIs which are amortized. Changes in the gross carrying amount, accumulated amortization, and net book value for CDIs 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 not traded in active markets. As a result, a cash flow model is used to determine fair value. Key assumptions and estimates, projected prepayment speeds, assumed servicing costs, ancillary income, costs to service delinquent loans, costs of foreclosure, and discount rates with option-adjusted spreads, are used in measuring the fair value of the MSRs asset. These assumptions are considered significant unobservable inputs. See Note 11 for a discussion of the recourse provisions on sold residential mortgage loans. See Note 12 which further discusses fair value measurement relative to the MSRs asset. A summary of changes in the balance of the MSRs asset under the fair value measurement method for the three months ended March 31, 2023 and the year ended December 31, 2022 is as follows:
|
Short and Long-Term Funding |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
(a) For additional information on the fair value hedges, see Note 9. 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 repurchase agreements to facilitate the needs of its customers. The fair value of securities pledged to secure repurchase agreements may decline. At March 31, 2023, the Corporation had pledged securities valued at 157% of the gross outstanding balance of repurchase agreements to manage this risk. The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets as of March 31, 2023 and December 31, 2022 are presented in the following table:
Long-Term Funding 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. In February 2023, the Corporation issued $300 million of 10-year subordinated notes, due March 1, 2033 and redeemable (i) on the reset date of March 1, 2028 and on any interest payment date thereafter, (ii) at any time on or after the three month period prior to the maturity date, and (iii) upon the occurrence of a Regulatory Capital Treatment Event (as defined in the Global Note). The subordinated notes have a fixed coupon interest rate of 6.625% until the reset date, after which the rate will be equal to the Five-Year U.S. Treasury Rate as of the reset date plus 2.812% per annum. The notes were issued at a discount. Finance Leases Finance leases are used in conjunction with branch operations. See Note 16 for additional disclosure regarding the Corporation’s leases.
|
Derivative and Hedging Activities |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 values 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 $106 million and $92 million of investment securities as collateral at March 31, 2023 and December 31, 2022, respectively. Cash is often pledged as collateral for derivatives that are not centrally cleared. The Corporation's required cash collateral was approximately $610,000 at March 31, 2023, compared to $3 million at December 31, 2022. Federal regulations require the Corporation to clear all LIBOR and compound SOFR 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 and the London Clearing House 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. Fair Value Hedges of Interest Rate Risk The Corporation is exposed to changes in the fair value of its fixed-rate debt due to changes in benchmark interest rates. The Corporation uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rates. Interest rate swaps designated as fair value hedges involve receiving payment of fixed-rate amounts from a counterparty in exchange for the Corporation paying variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, as allowed under U.S. GAAP, we applied the "shortcut" method of accounting, which permits the assumption of perfect effectiveness. The gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest expense. These items, along with the net interest from the derivative, are reported in the same income statement line as the fixed-rate debt expense. Cash Flow Hedges of Interest Rate Risk The Corporation is exposed to variability in cash flows on its floating rate assets due to changes in benchmark interest rates. The Corporation uses interest rate swaps to hedge certain forecasted transactions for the variability in cash flows attributable to the contractually specified interest rate in order to add stability to net interest income and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve receiving fixed-rate amounts from a counterparty in exchange for the Corporation making variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. These items, along with the net interest from the derivative, are reported in the same income statement line as the interest income from the floating-rate assets. When the relationship between the hedged item and hedging instrument is highly effective at achieving offsetting changes in cash flows attributable to the hedged risk, changes in the fair value of these cash flow hedges are recorded in accumulated other comprehensive income (loss) and are subsequently reclassified to interest income as interest payments are made on such variable rate loans. 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 and foreign currency. 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) and foreign currency exchange forwards. See Note 10 for additional information and disclosures on balance sheet offsetting. Interest rate-related and other 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. The Corporation also enters into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are either a participant or a lead bank. The risk participation agreements entered into by the Corporation as a participant bank provide credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. 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. 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 are 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. Interest rate-related instruments for MSRs hedge: The fair value of the Corporation's MSRs asset changes in response to changes in primary mortgage loan rates and other assumptions. To mitigate the earnings volatility caused by changes in the fair value of MSRs, the Corporation designates certain financial instruments as an economic hedge. Changes in the fair value of these instruments are generally expected to partially offset changes in the fair value of MSRs and are 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 Corporation’s derivatives, as well as the balance sheet netting adjustments as of March 31, 2023 and December 31, 2022. 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 March 31, 2023 and December 31, 2022. 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.
(a) The notional amount of the mortgage derivative asset includes interest rate lock commitments, while the notional amount of the mortgage derivative liability includes forward commitments. The following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges:
The Corporation terminated its $500 million fair value hedge during the fourth quarter of 2019. At March 31, 2023, the amortized cost basis of the closed portfolios which had previously been used in the terminated hedging relationship was $315 million and is included in loans on the consolidated balance sheets. This amount includes $1 million of hedging adjustments on the discontinued hedging relationships, which are not presented in the table above. The table below identifies the effect of fair value and cash flow hedge accounting on the Corporation's consolidated statements of income for the three months ended March 31, 2023 and 2022:
(a) Includes net settlements on the derivatives. The following table presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022:
(a) The entirety of gains recognized in OCI as well as the losses reclassified from accumulated other comprehensive income (loss) into interest income were included components in the assessment of hedge effectiveness. Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedge derivatives are reclassified to interest income as interest payments are made on the hedged variable interest rate assets. The Corporation estimates that $6 million will be reclassified as a decrease to interest income over the next 12 months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, or the addition of other hedges subsequent to March 31, 2023. The maximum length of time over which the Corporation is hedging its exposure to the variability in future cash flows is 44 months as of March 31, 2023. The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income for the three months ended March 31, 2023 and 2022:
|
Balance Sheet Offsetting |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Offsetting | Balance Sheet Offsetting Interest Rate-Related Instruments and Foreign Exchange Forwards (“Interest and Foreign Exchange Agreements”) The Corporation enters into interest rate-related instruments to facilitate the interest rate risk management strategies of commercial customers 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 some of 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 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 with assets and liabilities offset resulting in a net position which is further offset by any cash collateral, and is reported in other assets and accrued expenses and other liabilities on the face of the consolidated balance sheets. For disclosure purposes, the net position on the consolidated balance sheets can be further netted down by investment securities collateral received or pledged. See Note 9 for additional information on the Corporation’s derivative and hedging activities. The following table presents the interest rate and foreign exchange assets and liabilities subject to an enforceable master netting arrangement as of March 31, 2023 and December 31, 2022. The interest 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:
|
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 9). The following is a summary of lending-related commitments:
(a) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and was not material at March 31, 2023 or December 31, 2022. (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 9. (c) Standby letters of credit are presented excluding participations. The Corporation has established a liability of $3 million at both March 31, 2023 and December 31, 2022, 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 9. 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, 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 March 31, 2023 was $241 million, compared to $250 million at December 31, 2022, 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 $9 million and $8 million for the three months ended March 31, 2023 and March 31, 2022, respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $237 million at March 31, 2023 and $246 million at December 31, 2022. The Corporation’s unfunded equity contributions relating to investments in qualified affordable housing and historic projects are recorded in accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s remaining unfunded equity contributions totaled $34 million at March 31, 2023 and $40 million at December 31, 2022. Additionally, at March 31, 2023, the Corporation also invests in a private SBA loan fund, recorded in equity securities on the consolidated balance sheets, the purpose of which is to identify CRA qualifying loans within a target region, which has a remaining unfunded equity contribution of $5 million. For the three months ended March 31, 2023 and the year ended December 31, 2022, 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 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 $28 million at March 31, 2023 and $27 million December 31, 2022, 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. The Corporation believes that the legal proceedings currently pending against it should not have a material adverse effect on the Corporation’s consolidated financial condition. The Corporation notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to the Corporation’s operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of the Corporation’s income for that period. 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 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. The Corporation also sells qualifying residential mortgage loans guaranteed by U.S. government agencies into GNMA pools. As a result of make whole requests, the Corporation has repurchased loans with aggregate principal balances of $2 million and $6 million for the three months ended March 31, 2023 and the year ended December 31, 2022, respectively. There were no loss reimbursement and settlement claims paid in the three months ended March 31, 2023, and no such claims were paid for the year ended December 31, 2022. Make whole requests since January 1, 2022 generally arose from loans originated since January 1, 2021 with such balances totaling $2.5 billion at the time of sale, consisting primarily of loans sold to GSEs. As of March 31, 2023, $2.1 billion of those loans originated since January 1, 2021 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 approximately $566,000 at March 31, 2023 and $1 million at December 31, 2022. 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 both March 31, 2023 and December 31, 2022, there were $7 million 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 March 31, 2023 and December 31, 2022, there were $18 million and $19 million, respectively, of such residential mortgage loans with credit risk recourse, upon which there have been immaterial historical losses to the Corporation.
|
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2022 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 March 31, 2023 and December 31, 2022, 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 three months ended March 31, 2023 and the year ended December 31, 2022, for the Corporation's mortgage derivatives measured on a recurring basis and classified within Level 3 of the fair value hierarchy:
The following table presents the carrying value of equity securities without readily determinable fair values still held as of March 31, 2023 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 March 31, 2023:
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) 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 table below presents the unobservable inputs that are readily quantifiable pertaining to Level 3 measurements:
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 $252 million at March 31, 2023 and $271 million at December 31, 2022. See Note 11 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. |
Retirement Plans |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 components of net periodic pension cost and net periodic benefit cost for the RAP and Postretirement Plan for the three months ended March 31, 2023 and 2022 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 three months ended March 31, 2023 and 2022.
|
Segment Reporting |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2022 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, primarily loans) 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. The 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 2022 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, when applicable, 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 2022 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. The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses, by providing lending and deposit solutions. 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:
|
Accumulated Other Comprehensive Income (Loss) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)The following tables summarize the components of accumulated other comprehensive income (loss) at March 31, 2023 and 2022, including changes during the preceding three month periods as well as any reclassifications out of accumulated other comprehensive income (loss):
|
Leases |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Corporation has operating leases for retail and corporate office, land, and equipment. The Corporation also has a finance lease for retail and corporate offices. These leases have original terms of 1 year or longer with remaining maturities up to 40 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 March 31, 2023 and December 31, 2022, additional operating leases, primarily retail and corporate offices, that had not yet commenced totaled $12 million and $13 million, respectively. The leases that had not yet commenced as of March 31, 2023 will commence between April 2023 and January 2024 with lease terms of 1 year to 6 years.
|
Summary of Significant Accounting Policies (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted
|
||||||||||||||||||||||||||||||||||||
Future Accounting Pronouncements | Future Accounting Pronouncements The expected impact of applicable material accounting pronouncements recently issued or proposed but not yet required to be adopted are discussed in the table below. To the extent that the adoption of new accounting standards materially affects the Corporation's financial condition, results of operations, liquidity or disclosures, the impacts are discussed in the applicable sections of this financial review.
|
Earnings Per Common Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Stock-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of company's stock option activities | A summary of the Corporation’s stock option activity for the three months ended March 31, 2023 is presented below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock awards activity (excluding salary shares) | The following table summarizes information about the Corporation’s restricted stock awards activity for the three months ended March 31, 2023:
(a) In thousands
|
Investment Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale | The amortized cost and fair values of AFS and HTM securities at March 31, 2023 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities held to maturity | The amortized cost and fair values of AFS and HTM securities at March 31, 2023 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost and fair values of investment securities by contractual maturity | The expected maturities of AFS and HTM securities at March 31, 2023, are shown below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table summarizes the credit quality indicators of HTM securities at amortized cost at March 31, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains and losses and proceeds from sale | The following table summarizes gross realized gains and losses on AFS securities, net write-up of equity securities, and proceeds from the sale of investment securities for the three months ended March 31, 2023 and 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 AFS and HTM securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at March 31, 2023:
|
Loans Loans (Tables) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan composition | The period end loan composition was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Credit Quality Indicator by Vintage Year | The following table presents loans by credit quality indicator by origination year at March 31, 2023:
(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination. The following table presents loans by credit quality indicator by origination year at December 31, 2022:
(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination. The following table presents gross charge offs by origination year at March 31, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Past Due Status | The following table presents loans by past due status at March 31, 2023:
(a) Of the total nonaccrual loans, $78 million, or 66%, were current with respect to payment at March 31, 2023. (b) No interest income was recognized on nonaccrual loans for the three months ended March 31, 2023. In addition, there were $15 million of nonaccrual loans for which there was no related ACLL at March 31, 2023. The following table presents loans by past due status at December 31, 2022:
(a) Of the total nonaccrual loans, $64 million, or 58%, were current with respect to payment at December 31, 2022. (b) No interest income was recognized on nonaccrual loans for the year ended December 31, 2022. In addition, there were $11 million of nonaccrual loans for which there was no related ACLL at December 31, 2022.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Modifications | The following tables show the composition of loan modifications made to borrowers experiencing financial difficulty by the loan portfolio and type of concessions granted during the three months ended March 31, 2023. Each of the types of concessions granted comprised less than 1% of their respective classes of loan portfolios at March 31, 2023.
The following tables summarize, by loan portfolio, the financial effect of the Corporation's loan modifications on the modified loans as of March 31, 2023:
(a) Due to market conditions, some interest rate concessions on floating rate loans may involve an increase in rate that was lower in comparison to the rate of increase for floating rate loans not modified. (b) During the three months ended March 31, 2023, interest rate concessions changed the weighted average interest rate on modified loans from 22% to 5%, which primarily consisted of credit cards.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Modifications in Last 12 Months, Performance | The following table depicts the performance of loans that have been modified in the last three months at March 31, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Modified, Subsequent Default | The following table provides the amortized cost of loan modifications by loan portfolio and type of concession that were modified in the previous three months and subsequently had a payment default, as of March 31, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Troubled Debt Restructurings, Performance and Nonaccrual | The following table presents nonaccrual and performing restructured loans by loan portfolio at December 31, 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Troubled Debt Restructuring, Summary | The following table provides the number of loans modified in a TDR by loan portfolio, the recorded investment, and unpaid principal balance for the three months ended March 31, 2022:
(b) Represents pre-modification outstanding recorded investment. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Troubled Debt Restructurings, Subsequent Default | The following table provides the number of loans modified during the previous twelve months which subsequently defaulted during the three months ended March 31, 2022, and the recorded investment in these restructured loans at the time of default as of March 31, 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Changes in AFLL by Portfolio Segment | The following table presents a summary of the changes in the ACLL by portfolio segment for the three months ended March 31, 2023:
|
Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of core deposit intangibles and other intangibles | Changes in the gross carrying amount, accumulated amortization, and net book value for CDIs were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 under the fair value measurement method for the three months ended March 31, 2023 and the year ended December 31, 2022 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of estimated future amortization expense | The following table shows the estimated future amortization expense for CDIs and decay for MSRs:
|
Short and Long-Term Funding (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
(a) For additional information on the fair value hedges, see Note 9.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2023 and December 31, 2022 are presented in the following table:
|
Derivative and Hedging Activities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Corporation’s derivatives, as well as the balance sheet netting adjustments as of March 31, 2023 and December 31, 2022. 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 March 31, 2023 and December 31, 2022. 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.
(a) The notional amount of the mortgage derivative asset includes interest rate lock commitments, while the notional amount of the mortgage derivative liability includes forward commitments. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Recording of Fair Value Hedge [Table] | The following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash flow hedging instruments, statements of financial performance and financial position location | The table below identifies the effect of fair value and cash flow hedge accounting on the Corporation's consolidated statements of income for the three months ended March 31, 2023 and 2022:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022:
(a) The entirety of gains recognized in OCI as well as the losses reclassified from accumulated other comprehensive income (loss) into interest income were included components in the assessment of hedge effectiveness.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 months ended March 31, 2023 and 2022:
|
Balance Sheet Offsetting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet offsetting of derivative assets and liabilities | The following table presents the interest rate and foreign exchange assets and liabilities subject to an enforceable master netting arrangement as of March 31, 2023 and December 31, 2022. The interest 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:
|
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of lending-related and other commitments | The following is a summary of lending-related commitments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Unfunded Commitments [Table Text Block] | The following table presents a summary of the changes in the allowance for unfunded commitments:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2023 and December 31, 2022, 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. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 three months ended March 31, 2023 and the year ended December 31, 2022, for the Corporation's mortgage derivatives measured on a recurring basis and classified within Level 3 of the fair value hierarchy:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2023 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 March 31, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) 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. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 the unobservable inputs that are readily quantifiable pertaining to Level 3 measurements:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 $252 million at March 31, 2023 and $271 million at December 31, 2022. See Note 11 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. |
Retirement Plans (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 months ended March 31, 2023 and 2022 were as follows:
|
Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected segment information | Information about the Corporation’s segments is presented below:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2023 and 2022, including changes during the preceding three month periods as well as any reclassifications out of accumulated other comprehensive income (loss):
|
Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost and Cash Flows | Operating and finance lease costs and cash flows resulting from these leases are presented below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of lease expense | The lease classifications on the consolidated balance sheets were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease information | The lease payment obligations, weighted-average remaining lease term, and weighted-average original discount rate were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Acquisitions (Details Textuals) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Business Acquisition [Line Items] | ||
Deposits | $ 30,331,824 | $ 29,636,154 |
Summary of Significant Accounting Policies (Details) (Textuals) $ in Thousands |
Jan. 01, 2022
USD ($)
|
---|---|
Accounting Changes and Error Corrections [Abstract] | |
Cumulative effect of accounting methodology change | $ 2,296 |
Earnings Per Common Share (Details Textuals) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
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 | 2,000,000 | 2,000,000 |
Investment Securities Gain/Loss Sale of Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Gross gains on AFS securities | $ 0 | $ 21 |
Gain on sale and net write-up of equity securities | 51 | 0 |
Investment securities gains (losses), net | 51 | 21 |
Proceeds from sales of AFS investment securities | $ 0 | $ 734 |
Loans, Modified, Subsequent Default (Details) - Home equity $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Interest Rate Below Market Reduction [Member] | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Financing Receivable, Modified, Subsequent Default | $ 0 |
Extended Maturity [Member] | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Financing Receivable, Modified, Subsequent Default | 0 |
Extended Maturity and Interest Rate Reduction [Member] | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Financing Receivable, Modified, Subsequent Default | $ 60 |
Loans, Troubled Debt Restructurings Subsequent Default (Details) - Residential mortgage $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
loan
| |
Financing Receivable, Modified [Line Items] | |
Number of Loans | loan | 1 |
Financing Receivable, Modified, Subsequent Default | $ | $ 884 |
Loans Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Loans Information [Line Items] | |||
Interest receivable | $ 152,404 | $ 144,449 | |
Financing Receivable, Nonaccrual, Interest Income | 0 | $ 0 | |
Loans and Finance Receivables [Member] | |||
Loans Information [Line Items] | |||
Interest receivable | $ 119,000 | $ 113,000 |
Goodwill and Other Intangible Assets, Summary of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Summary of core deposit intangibles and other intangibles | ||||
Other intangible amortization | $ 2,203 | $ 2,203 | ||
Core Deposit Intangibles | ||||
Summary of core deposit intangibles and other intangibles | ||||
Gross carrying amount at the beginning of period | $ 88,109 | $ 88,109 | ||
Accumulated amortization | (41,030) | (38,827) | ||
Total estimated amortization expense and MSRs decay | 47,079 | 49,282 | ||
Other intangible amortization | $ 2,203 | $ 8,811 |
Goodwill and Other Intangible Assets, Mortgage Servicing Rights Roll-Forward (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
Jan. 01, 2022 |
Dec. 31, 2021 |
|
Summary Of Changes In Balance Of Mortgage Servicing Rights Asset And Mortgage Servicing Rights Valuation Allowance [Abstract] | |||||
Servicing Asset at Amortized Cost | $ 54,862 | ||||
Cumulative effect of accounting methodology change | $ 2,296 | ||||
Servicing Asset at Fair Value, Amount | $ 74,479 | $ 77,351 | $ 57,158 | ||
Additions | 474 | $ 3,042 | 7,279 | ||
Paydowns | (1,489) | (9,350) | |||
Change in fair value model assumptions | 0 | 5,715 | |||
Changes in fair value of asset | (1,857) | 16,549 | |||
Portfolio Of Residential Mortgage Loans Serviced For Others | $ 6,611,770 | $ 6,711,820 | |||
Mortgage Servicing Rights Net To Servicing Portfolio | 1.13% | 1.15% |
Goodwill and Other Intangible Assets, Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Core Deposit Intangibles | ||
Estimated future amortization expense | ||
Nine months ended December 31, 2023 | $ 6,608 | |
2024 | 8,811 | |
2025 | 8,811 | |
2026 | 8,811 | |
2027 | 8,811 | |
2028 | 3,485 | |
Beyond 2028 | 1,742 | |
Total estimated amortization expense and MSRs decay | 47,079 | $ 49,282 |
Mortgage Servicing Rights | ||
Estimated future amortization expense | ||
Nine months ended December 31, 2023 | 9,713 | |
2024 | 12,079 | |
2025 | 10,382 | |
2026 | 8,924 | |
2027 | 7,518 | |
2028 | 6,564 | |
Beyond 2028 | 19,299 | |
Total estimated amortization expense and MSRs decay | $ 74,479 |
Goodwill and Other Intangible Assets (Details Textuals) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
|
Goodwill [Line Items] | |||
Goodwill, Impaired, Facts and Circumstances Leading to Impairment | no | ||
Goodwill, Impairment Loss | $ 0 | $ 0 | |
Goodwill | $ 1,104,992 | $ 1,104,992 | $ 1,104,992 |
Short and Long-Term Funding (Remaining Contractual Maturity of the Securities Sold Under Agreements to Repurchase) (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Agency mortgage-related securities | Maturity Overnight and on Demand [Member] | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | $ 208,048 | $ 240,969 |
Short and Long-Term Funding (Long-term Funding Narrative) (Details) - USD ($) $ in Millions |
1 Months Ended | ||
---|---|---|---|
Feb. 10, 2023 |
Nov. 30, 2014 |
Mar. 31, 2023 |
|
Long-term funding | |||
Fair Value of Pledged Securites to Securities Sold under Agreements to Repurchase | 157.00% | ||
Debt Instrument, Redemption Period, Start Date | Mar. 01, 2028 | ||
Interest Added to UST 5 Year Rate | 2.812% | ||
Two Thousand Fourteen Subordinated Notes | |||
Long-term funding | |||
Debt Instrument, Issuance Date Month, Year | November 2014 | ||
Junior Subordinated Debentures Issued | $ 250 | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date Month, Year | January 2025 | ||
Debt Instrument Call Date Earliest Month Year | October 2024 | ||
Subordinated Borrowing, Interest Rate | 4.25% | ||
Two Thousand Twenty Three Subordinated Notes | |||
Long-term funding | |||
Debt Instrument, Issuance Date Month, Year | February 2023 | ||
Junior Subordinated Debentures Issued | $ 300 | ||
Debt Instrument, Maturity Date Month, Year | March 1, 2033 | ||
Subordinated Borrowing, Interest Rate | 6.625% |
Derivative and Hedging Activities, Cash Flow Hedge Included in AOCI (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Cash Flow Hedge Impacts on AOCI [Line Items] | ||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 13,763 | $ 0 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 1,262 | $ 0 |
Derivative and Hedging Activities (Details Textuals) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2019 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 44 months | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months | $ 6,000 | ||
Underlying Hedged Asset, Amortized Cost Basis | 315,000 | ||
Derivative collateral right to reclaim cash | 610 | $ 3,000 | |
Additional Collateral, Aggregate Fair Value | $ 106,000 | $ 92,000 | |
Derivative Liability Notional Amount, Terminated | $ 500,000 |
Balance Sheet Offsetting (Details) - Interest Rate Contract - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative assets | ||
Gross Amounts Recognized | $ 78,018 | $ 63,029 |
Derivative Liabilities Offset | (8,301) | (2,788) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (36,331) | (26,898) |
Net Amounts Presented on the Consolidated Balance Sheets | 33,387 | 33,342 |
Gross Amounts Not Offset on the Consolidated Balance Sheets | (32,827) | (30,753) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 560 | 2,589 |
Derivative liabilities | ||
Gross Amounts Recognized | 8,676 | 3,096 |
Derivative Liability, Fair Value, Gross Asset | (8,301) | (2,788) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (342) | (217) |
Net Amounts Presented on the Consolidated Balance Sheets | 34 | 91 |
Gross Amounts Not Offset on the Consolidated Balance Sheets | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 34 | $ 91 |
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters, Summary of Lending Related and Other Commitments (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule of lending-related and other commitments [Line Items] | ||
Lending Related Commitments, Fair Value | $ 0 | |
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b) | ||
Schedule of lending-related and other commitments [Line Items] | ||
Lending Related Commitments By Type [Domain] | 11,919,626 | $ 12,444,275 |
Commercial letters of credit(a) | ||
Schedule of lending-related and other commitments [Line Items] | ||
Lending Related Commitments By Type [Domain] | 5,413 | 3,188 |
Standby letters of credit(c) | ||
Schedule of lending-related and other commitments [Line Items] | ||
Lending Related Commitments By Type [Domain] | 251,565 | 270,692 |
Lines of Credit, Fair Value Disclosure | $ 3,000 | $ 3,000 |
Commitment, Changes in the Allowance for Unfunded Commitments (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Off-Balance-Sheet, Credit Loss, Liability, Beginning Balance | $ 38,776 | $ 39,776 |
Off-Balance Sheet, Credit Loss, Liability | 39,776 | 38,776 |
Provision for credit losses | 1,000 | (1,000) |
Off-Balance-Sheet, Credit Loss, Liability, Ending Balance | $ 39,776 | $ 38,776 |
Fair Value Measurements Equity Securities Without Readily Determinable Fair Values (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Equity Securities Without Readily Determinable Fair Value Amount [Roll Forward] | |
Carrying value as of December 31, 2022 | $ 19,225 |
Carrying value changes | 0 |
Purchases | 5,003 |
Equity Securities without Readily Determinable Fair Value, Sales, Annual Amount | 0 |
Carrying value as of March 31, 2023 | 24,228 |
Cumulative upward carrying value changes between January 1, 2018 and March 31, 2023 | 19,134 |
Cumulative downward carrying value changes/impairment between January 1, 2018 and March 31, 2023 | $ 0 |
Retirement Plans, Components of Net Periodic Benefit Cost for the Pension and Postretirement Tables (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
RAP | ||
Net period benefit cost for the pension and postretirement plans | ||
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. | |
Service cost | $ 796 | $ 923 |
Interest cost | 2,686 | 1,772 |
Expected return on plan assets | (8,202) | (6,736) |
Amortization of prior service cost | (63) | (63) |
Amortization of actuarial loss | 37 | 74 |
Total net periodic pension cost | (4,746) | (4,029) |
Postretirement Plan | ||
Net period benefit cost for the pension and postretirement plans | ||
Interest cost | 20 | 13 |
Amortization of prior service cost | (19) | (19) |
Amortization of actuarial loss | (7) | 0 |
Total net periodic pension cost | $ (7) | $ (6) |
Retirement Plans (Details Textuals) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
RAP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Segment Reporting (Details Textuals) |
3 Months Ended |
---|---|
Mar. 31, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Leases Lease, Cost and Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating lease costs | $ 1,464 | $ 1,798 |
Finance lease costs | 23 | 41 |
Operating lease cash flows | 1,828 | 2,407 |
Finance lease cash flows | $ 22 | $ 44 |
Leases Components of Lease Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 24,377 | $ 25,617 |
Finance lease right-of-use asset | 433 | 455 |
Operating lease liability | 26,938 | 28,357 |
Finance lease liability | $ 448 | $ 469 |
Leases Amortization of Operating Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Leases | ||
Nine months ended December 31, 2023 | $ 4,540 | |
2024 | 5,735 | |
2025 | 4,512 | |
2026 | 4,246 | |
2027 | 3,807 | |
Beyond 2027 | 6,468 | |
Total lease payments | 29,307 | $ 30,906 |
Less: interest | 2,369 | |
Present value of lease payments | 26,938 | 28,357 |
Finance Leases | ||
Nine months ended December 31, 2023 | 69 | |
2024 | 93 | |
2025 | 93 | |
2026 | 93 | |
2027 | 93 | |
Beyond 2027 | 23 | |
Total lease payments | 463 | 485 |
Less: interest | 15 | |
Present value of lease payments | 448 | $ 469 |
Total Leases | ||
Nine months ended December 31, 2023 | 4,609 | |
2024 | 5,827 | |
2025 | 4,605 | |
2026 | 4,339 | |
2027 | 3,899 | |
Beyond 2027 | 6,491 | |
Total lease payments | 29,770 | |
Less: interest | 2,384 | |
Present value of lease payments | $ 27,386 |
Leases (Details Textuals) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Lessee, Lease, Description [Line Items] | ||
Additional operating leases | $ 12 | $ 13 |
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 | 40 years | |
Additional operating lease terms | 6 years |
*:) >0* ["GCY5X:5GQ\OF'N_?4=[NB^Y.\6:.LN:!
M+XHL+7I/&'@F3H9&L,!9+)_JDPY[H8<>N%3$Z=N)\X]6#G--4M3WP^MQODF0
M>L\(F/">$0%G,$\!F;Z"3-\.F5_SBM5U)EIZ&2>- .MVZ]4A%0ZO]0,F%.NK
MN9&]B$,E4#SI'^#)W9+;UYPC=M,-B"-8SKDXCR//87UDR3/_]%/-Q,9&YT.<
MELZ?<;9AS3>@/, !*^0&QGXCP,ZH(Z=(=?J*0'T[@?;+LGM A)1!])6?\JHN
M-[U+DSZP<,^Y0I^[ V:&)J=(?/J*57U[XE/5@$OGGL_+.*>V:]D/HM&4/ (=L7
M&\)A [($H\T/V#O5HY#=D+7AY,IJ9# H!Q?N>Y:L\ZM[.%J_]7)":$3 (K
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MH=3O[9C2T 8CJ=-AAFGG@95TEAUV^!K\*C
M$\'1X>C%P\$YVGG'*PP%SPT#/VSAR7 23;@'1J-Y3'^P\2"?QQ,"0IS.Z$M
MU]-)Q$?.SGKM.^'&>9;\H%
0/I=I.;955N%DLQQ_&>GR#D1PGF
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M9UE#LW(^JL^%3>'1 T^_
;HZ-;5\?/N@5JG1(&
M0_[
ZS&R!ASN@U'%<@T#D'F9I(B"#UP+#
MT^/_.<7FV/%XQ/UFCVD^ TK2P0N&I5;6VO3:R*E^XL1L\YZ1[X3-N)R\6\
M(WS9+(=NB$1LE-BF'B /KP#=IXT]2R8E"S&GIWSPN;J)EZZG'0F[&S;NB^SS3G(/>PTLEY[&
MKFQ:QIQ()JDL]K(9Y4_\5,L1F^ROZ;.0U8'4R_0HO6UZ:FS5=H([/'C#3Z4)
M47/?FQ'2]8@[<<\!B;NSQYFA*,<9A;FL:T_U-WN1@P[K^RJ;,YB<