ý | 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 |
PENNSYLVANIA | 23-2195389 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Penn Square, P.O. Box 4887, Lancaster, Pennsylvania | 17604 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Description | Page | ||
PART I. FINANCIAL INFORMATION | |||
(a) | Consolidated Balance Sheets - June 30, 2014 and December 31, 2013 | ||
(b) | Consolidated Statements of Income - Three and six months ended June 30, 2014 and 2013 | ||
(c) | Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2014 and 2013 | ||
(d) | Consolidated Statements of Shareholders’ Equity - Six months ended June 30, 2014 and 2013 | ||
(e) | Consolidated Statements of Cash Flows - Six months ended June 30, 2014 and 2013 | ||
(f) | |||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |||
June 30, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 258,837 | $ | 218,540 | |||
Interest-bearing deposits with other banks | 222,894 | 163,988 | |||||
Federal Reserve Bank and Federal Home Loan Bank stock | 82,624 | 84,173 | |||||
Loans held for sale | 36,079 | 21,351 | |||||
Available for sale investment securities | 2,497,776 | 2,568,434 | |||||
Loans, net of unearned income | 12,839,511 | 12,782,220 | |||||
Less: Allowance for loan losses | (191,685 | ) | (202,780 | ) | |||
Net Loans | 12,647,826 | 12,579,440 | |||||
Premises and equipment | 225,168 | 226,021 | |||||
Accrued interest receivable | 42,116 | 44,037 | |||||
Goodwill and intangible assets | 532,432 | 533,076 | |||||
Other assets | 487,887 | 495,574 | |||||
Total Assets | $ | 17,033,639 | $ | 16,934,634 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 3,484,125 | $ | 3,283,172 | |||
Interest-bearing | 9,209,534 | 9,208,014 | |||||
Total Deposits | 12,693,659 | 12,491,186 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 384,011 | 582,436 | |||||
Other short-term borrowings | 624,296 | 676,193 | |||||
Total Short-Term Borrowings | 1,008,307 | 1,258,629 | |||||
Accrued interest payable | 16,647 | 15,218 | |||||
Other liabilities | 246,831 | 222,830 | |||||
Federal Home Loan Bank advances and long-term debt | 968,395 | 883,584 | |||||
Total Liabilities | 14,933,839 | 14,871,447 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 218.0 million shares issued in 2014 and 217.8 million shares issued in 2013 | 545,066 | 544,568 | |||||
Additional paid-in capital | 1,436,759 | 1,432,974 | |||||
Retained earnings | 514,988 | 463,843 | |||||
Accumulated other comprehensive loss | (9,161 | ) | (37,341 | ) | |||
Treasury stock, at cost, 29.0 million shares in 2014 and 25.2 million shares in 2013 | (387,852 | ) | (340,857 | ) | |||
Total Shareholders’ Equity | 2,099,800 | 2,063,187 | |||||
Total Liabilities and Shareholders’ Equity | $ | 17,033,639 | $ | 16,934,634 | |||
See Notes to Consolidated Financial Statements |
(in thousands, except per-share data) | Three months ended June 30 | Six months ended June 30 | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 131,440 | $ | 135,032 | $ | 263,270 | $ | 269,162 | |||||||
Investment securities: | |||||||||||||||
Taxable | 12,418 | 14,516 | 25,684 | 27,913 | |||||||||||
Tax-exempt | 2,298 | 2,343 | 4,646 | 4,824 | |||||||||||
Dividends | 325 | 364 | 657 | 754 | |||||||||||
Loans held for sale | 214 | 384 | 348 | 879 | |||||||||||
Other interest income | 1,207 | 439 | 2,089 | 868 | |||||||||||
Total Interest Income | 147,902 | 153,078 | 296,694 | 304,400 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 8,685 | 9,498 | 16,581 | 19,899 | |||||||||||
Short-term borrowings | 540 | 700 | 1,173 | 1,209 | |||||||||||
Long-term debt | 10,779 | 10,815 | 21,477 | 21,583 | |||||||||||
Total Interest Expense | 20,004 | 21,013 | 39,231 | 42,691 | |||||||||||
Net Interest Income | 127,898 | 132,065 | 257,463 | 261,709 | |||||||||||
Provision for credit losses | 3,500 | 13,500 | 6,000 | 28,500 | |||||||||||
Net Interest Income After Provision for Credit Losses | 124,398 | 118,565 | 251,463 | 233,209 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 12,552 | 14,651 | 24,263 | 28,762 | |||||||||||
Investment management and trust services | 11,339 | 10,601 | 22,297 | 20,697 | |||||||||||
Other service charges and fees | 10,526 | 9,508 | 19,453 | 18,018 | |||||||||||
Mortgage banking income | 5,741 | 10,997 | 9,346 | 19,170 | |||||||||||
Other | 3,602 | 3,694 | 6,907 | 7,590 | |||||||||||
Investment securities gains, net: | |||||||||||||||
Net gains on sales of investment securities | 1,124 | 2,892 | 1,124 | 5,365 | |||||||||||
Other-than-temporary impairment losses | (12 | ) | (27 | ) | (12 | ) | (27 | ) | |||||||
Investment securities gains, net | 1,112 | 2,865 | 1,112 | 5,338 | |||||||||||
Total Non-Interest Income | 44,872 | 52,316 | 83,378 | 99,575 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 63,623 | 63,490 | 123,189 | 124,702 | |||||||||||
Net occupancy expense | 11,464 | 11,447 | 25,067 | 23,291 | |||||||||||
Other outside services | 7,240 | 5,315 | 11,052 | 8,175 | |||||||||||
Data processing | 4,331 | 4,509 | 8,127 | 8,412 | |||||||||||
Professional fees | 3,559 | 3,395 | 6,463 | 6,442 | |||||||||||
Equipment expense | 3,360 | 3,893 | 6,962 | 7,801 | |||||||||||
Software | 3,209 | 3,094 | 6,134 | 5,842 | |||||||||||
FDIC insurance expense | 2,615 | 3,001 | 5,304 | 5,848 | |||||||||||
Marketing | 2,337 | 1,922 | 3,921 | 3,794 | |||||||||||
Other real estate owned and repossession expense | 748 | 1,941 | 1,731 | 4,795 | |||||||||||
Operating risk loss | 716 | 1,860 | 2,544 | 3,626 | |||||||||||
Intangible amortization | 315 | 535 | 630 | 1,069 | |||||||||||
Other | 12,657 | 12,728 | 24,604 | 24,269 | |||||||||||
Total Non-Interest Expense | 116,174 | 117,130 | 225,728 | 228,066 | |||||||||||
Income Before Income Taxes | 53,096 | 53,751 | 109,113 | 104,718 | |||||||||||
Income taxes | 13,500 | 13,169 | 27,734 | 24,909 | |||||||||||
Net Income | $ | 39,596 | $ | 40,582 | $ | 81,379 | $ | 79,809 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.21 | $ | 0.21 | $ | 0.43 | $ | 0.41 | |||||||
Net Income (Diluted) | 0.21 | 0.21 | 0.43 | 0.41 | |||||||||||
Cash Dividends | 0.08 | 0.08 | 0.16 | 0.16 | |||||||||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net Income | $ | 39,596 | $ | 40,582 | $ | 81,379 | $ | 79,809 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on securities | 12,990 | (36,958 | ) | 26,923 | (36,833 | ) | |||||||||
Reclassification adjustment for postretirement amendment gains included in net income | — | — | (944 | ) | — | ||||||||||
Reclassification adjustment for securities gains included in net income | (723 | ) | (1,862 | ) | (723 | ) | (3,470 | ) | |||||||
Non-credit related unrealized gain on other-than-temporarily impaired debt securities | 323 | 355 | 512 | 1,438 | |||||||||||
Unrealized gain on derivative financial instruments | 34 | 34 | 68 | 68 | |||||||||||
Unrecognized pension and postretirement income | — | — | 2,144 | — | |||||||||||
Amortization of net unrecognized pension and postretirement items | 104 | 328 | 200 | 656 | |||||||||||
Other Comprehensive Income (Loss) | 12,728 | (38,103 | ) | 28,180 | (38,141 | ) | |||||||||
Total Comprehensive Income | $ | 52,324 | $ | 2,479 | $ | 109,559 | $ | 41,668 | |||||||
See Notes to Consolidated Financial Statements |
Common Stock | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||
Shares Outstanding | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Balance at December 31, 2013 | 192,652 | $ | 544,568 | $ | 1,432,974 | $ | 463,843 | $ | (37,341 | ) | $ | (340,857 | ) | $ | 2,063,187 | |||||||||||
Net income | 81,379 | 81,379 | ||||||||||||||||||||||||
Other comprehensive income (loss) | 28,180 | 28,180 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 381 | 498 | 763 | 2,809 | 4,070 | |||||||||||||||||||||
Stock-based compensation awards | 3,022 | 3,022 | ||||||||||||||||||||||||
Acquisition of treasury stock | (4,000 | ) | (49,804 | ) | (49,804 | ) | ||||||||||||||||||||
Common stock cash dividends - $0.16 per share | (30,234 | ) | (30,234 | ) | ||||||||||||||||||||||
Balance at June 30, 2014 | 189,033 | $ | 545,066 | $ | 1,436,759 | $ | 514,988 | $ | (9,161 | ) | $ | (387,852 | ) | $ | 2,099,800 | |||||||||||
Balance at December 31, 2012 | 199,225 | $ | 542,093 | $ | 1,426,267 | $ | 363,937 | $ | 5,675 | $ | (256,316 | ) | $ | 2,081,656 | ||||||||||||
Net income | 79,809 | 79,809 | ||||||||||||||||||||||||
Other comprehensive income (loss) | (38,141 | ) | (38,141 | ) | ||||||||||||||||||||||
Stock issued, including related tax benefits | 854 | 1,544 | (455 | ) | 3,586 | 4,675 | ||||||||||||||||||||
Stock-based compensation awards | 3,207 | 3,207 | ||||||||||||||||||||||||
Acquisition of treasury stock | (6,421 | ) | (71,337 | ) | (71,337 | ) | ||||||||||||||||||||
Common stock cash dividends - $0.16 per share | (31,137 | ) | (31,137 | ) | ||||||||||||||||||||||
Balance at June 30, 2013 | 193,658 | $ | 543,637 | $ | 1,429,019 | $ | 412,609 | $ | (32,466 | ) | $ | (324,067 | ) | $ | 2,028,732 | |||||||||||
See Notes to Consolidated Financial Statements |
Six months ended June 30 | |||||||
2014 | 2013 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 81,379 | $ | 79,809 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 6,000 | 28,500 | |||||
Depreciation and amortization of premises and equipment | 12,354 | 12,577 | |||||
Net amortization of investment securities premiums | 2,908 | 6,099 | |||||
Investment securities gains, net | (1,112 | ) | (5,338 | ) | |||
Net (increase) decrease in loans held for sale | (14,728 | ) | 6,990 | ||||
Amortization of intangible assets | 630 | 1,069 | |||||
Stock-based compensation | 3,022 | 3,207 | |||||
Excess tax benefits from stock-based compensation | (52 | ) | (148 | ) | |||
Decrease in accrued interest receivable | 1,921 | 73 | |||||
(Increase) decrease in other assets | (3,039 | ) | 21,847 | ||||
Increase (decrease) in accrued interest payable | 1,429 | (1,622 | ) | ||||
Increase (decrease) in other liabilities | 3,646 | (10,782 | ) | ||||
Total adjustments | 12,979 | 62,472 | |||||
Net cash provided by operating activities | 94,358 | 142,281 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 15,189 | 172,931 | |||||
Proceeds from maturities of securities held to maturity | — | 65 | |||||
Proceeds from maturities of securities available for sale | 174,619 | 381,807 | |||||
Purchase of securities available for sale | (60,952 | ) | (647,141 | ) | |||
(Increase) decrease in short-term investments | (57,357 | ) | 19,561 | ||||
Net increase in loans | (74,766 | ) | (534,760 | ) | |||
Net purchases of premises and equipment | (11,501 | ) | (9,272 | ) | |||
Net cash used in investing activities | (14,768 | ) | (616,809 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings deposits | 104,390 | 55,058 | |||||
Net increase (decrease) in time deposits | 98,083 | (281,412 | ) | ||||
(Decrease) increase in short-term borrowings | (250,322 | ) | 751,919 | ||||
Additions to long-term debt | 90,000 | — | |||||
Repayments of long-term debt | (5,189 | ) | (5,086 | ) | |||
Net proceeds from issuance of common stock | 4,018 | 4,527 | |||||
Excess tax benefits from stock-based compensation | 52 | 148 | |||||
Dividends paid | (30,521 | ) | (15,645 | ) | |||
Acquisition of treasury stock | (49,804 | ) | (71,337 | ) | |||
Net cash (used in) provided by financing activities | (39,293 | ) | 438,172 | ||||
Net Increase (Decrease) in Cash and Due From Banks | 40,297 | (36,356 | ) | ||||
Cash and Due From Banks at Beginning of Period | 218,540 | 256,300 | |||||
Cash and Due From Banks at End of Period | $ | 258,837 | $ | 219,944 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 37,802 | $ | 44,313 | |||
Income taxes | 16,407 | 24,336 | |||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 188,139 | 193,273 | 188,799 | 194,777 | |||||||
Impact of common stock equivalents | 1,043 | 1,073 | 1,033 | 996 | |||||||
Weighted average shares outstanding (diluted) | 189,182 | 194,346 | 189,832 | 195,773 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three months ended June 30, 2014 | |||||||||||
Unrealized gain (loss) on securities | $ | 19,984 | $ | (6,994 | ) | $ | 12,990 | ||||
Reclassification adjustment for securities gains included in net income (1) | (1,112 | ) | 389 | (723 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 497 | (174 | ) | 323 | |||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 160 | (56 | ) | 104 | |||||||
Total Other Comprehensive Income (Loss) | $ | 19,581 | $ | (6,853 | ) | $ | 12,728 | ||||
Three months ended June 30, 2013 | |||||||||||
Unrealized gain (loss) on securities | $ | (56,858 | ) | $ | 19,900 | $ | (36,958 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (2,865 | ) | 1,003 | (1,862 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 546 | (191 | ) | 355 | |||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 505 | (177 | ) | 328 | |||||||
Total Other Comprehensive Income (Loss) | $ | (58,620 | ) | $ | 20,517 | $ | (38,103 | ) | |||
Six months ended June 30, 2014 | |||||||||||
Unrealized gain (loss) on securities | $ | 41,419 | $ | (14,496 | ) | $ | 26,923 | ||||
Reclassification adjustment for securities gains included in net income (1) | (1,112 | ) | 389 | (723 | ) | ||||||
Reclassification adjustment for postretirement gains included in net income (2) | (1,452 | ) | 508 | (944 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 788 | (276 | ) | 512 | |||||||
Unrealized gain on derivative financial instruments | 105 | (37 | ) | 68 | |||||||
Unrecognized pension and postretirement income | 3,291 | (1,147 | ) | 2,144 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 309 | (109 | ) | 200 | |||||||
Total Other Comprehensive Income (Loss) | $ | 43,348 | $ | (15,168 | ) | $ | 28,180 | ||||
Six months ended June 30, 2013 | |||||||||||
Unrealized gain (loss) on securities | $ | (56,666 | ) | $ | 19,833 | $ | (36,833 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (5,338 | ) | 1,868 | (3,470 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 2,212 | (774 | ) | 1,438 | |||||||
Unrealized gain on derivative financial instruments | 105 | (37 | ) | 68 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 1,010 | (354 | ) | 656 | |||||||
Total Other Comprehensive Income (Loss) | $ | (58,677 | ) | $ | 20,536 | $ | (38,141 | ) |
(1) | Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included within "Investment securities gains, net" on the consolidated statements of income. See Note D, "Investment Securities," for additional details. |
(2) | Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included within "Salaries and employee benefits" on the consolidated statements of income. See Note H, "Employee Benefit Plans," for additional details. |
Unrealized Gains (Losses) on Investment Securities Not Other-Than-Temporarily Impaired | Unrealized Non-Credit Gains (Losses) on Other-Than-Temporarily Impaired Debt Securities | Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps | Unrecognized Pension and Postretirement Plan Income (Costs) | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||||
Balance at March 31, 2014 | $ | (13,577 | ) | $ | 1,841 | $ | (2,648 | ) | $ | (7,505 | ) | $ | (21,889 | ) | |||||
Other comprehensive income (loss) before reclassifications | 12,990 | 323 | — | — | 13,313 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | (730 | ) | 34 | 104 | (585 | ) | ||||||||||||
Balance at June 30, 2014 | $ | (580 | ) | $ | 1,434 | $ | (2,614 | ) | $ | (7,401 | ) | $ | (9,161 | ) | |||||
Three months ended June 30, 2013 | |||||||||||||||||||
Balance at March 31, 2013 | $ | 24,878 | $ | 1,696 | $ | (2,784 | ) | $ | (18,153 | ) | $ | 5,637 | |||||||
Other comprehensive income (loss) before reclassifications | (36,958 | ) | 355 | — | — | (36,603 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (861 | ) | (1,001 | ) | 34 | 328 | (1,500 | ) | |||||||||||
Balance at June 30, 2013 | $ | (12,941 | ) | $ | 1,050 | $ | (2,750 | ) | $ | (17,825 | ) | $ | (32,466 | ) | |||||
Six months ended June 30, 2014 | |||||||||||||||||||
Balance at December 31, 2013 | $ | (27,510 | ) | $ | 1,652 | $ | (2,682 | ) | $ | (8,801 | ) | $ | (37,341 | ) | |||||
Other comprehensive income (loss) before reclassifications | 26,923 | 512 | — | 2,144 | 29,579 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | (730 | ) | 68 | (744 | ) | (1,399 | ) | |||||||||||
Balance at June 30, 2014 | $ | (580 | ) | $ | 1,434 | $ | (2,614 | ) | $ | (7,401 | ) | $ | (9,161 | ) | |||||
Six months ended June 30, 2013 | |||||||||||||||||||
Balance at December 31, 2012 | $ | 26,361 | $ | 613 | $ | (2,818 | ) | $ | (18,481 | ) | $ | 5,675 | |||||||
Other comprehensive income (loss) before reclassifications | (36,833 | ) | 1,438 | — | — | (35,395 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (2,469 | ) | (1,001 | ) | 68 | 656 | (2,746 | ) | |||||||||||
Balance at June 30, 2013 | $ | (12,941 | ) | $ | 1,050 | $ | (2,750 | ) | $ | (17,825 | ) | $ | (32,466 | ) |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
June 30, 2014 | |||||||||||||||
Equity securities | $ | 34,275 | $ | 11,987 | $ | (14 | ) | $ | 46,248 | ||||||
U.S. Government securities | 525 | — | — | 525 | |||||||||||
U.S. Government sponsored agency securities | 254 | 6 | — | 260 | |||||||||||
State and municipal securities | 262,368 | 8,244 | (789 | ) | 269,823 | ||||||||||
Corporate debt securities | 99,634 | 5,881 | (4,862 | ) | 100,653 | ||||||||||
Collateralized mortgage obligations | 1,022,728 | 8,224 | (28,221 | ) | 1,002,731 | ||||||||||
Mortgage-backed securities | 918,210 | 17,121 | (4,726 | ) | 930,605 | ||||||||||
Auction rate securities | 158,463 | 1 | (11,533 | ) | 146,931 | ||||||||||
$ | 2,496,457 | $ | 51,464 | $ | (50,145 | ) | $ | 2,497,776 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
December 31, 2013 | |||||||||||||||
Equity securities | $ | 33,922 | $ | 12,355 | $ | (76 | ) | $ | 46,201 | ||||||
U.S. Government securities | 525 | — | — | 525 | |||||||||||
U.S. Government sponsored agency securities | 720 | 7 | (1 | ) | 726 | ||||||||||
State and municipal securities | 281,810 | 6,483 | (3,444 | ) | 284,849 | ||||||||||
Corporate debt securities | 100,468 | 5,685 | (7,404 | ) | 98,749 | ||||||||||
Collateralized mortgage obligations | 1,069,138 | 8,036 | (44,776 | ) | 1,032,398 | ||||||||||
Mortgage-backed securities | 949,328 | 13,881 | (17,497 | ) | 945,712 | ||||||||||
Auction rate securities | 172,299 | 234 | (13,259 | ) | 159,274 | ||||||||||
$ | 2,608,210 | $ | 46,681 | $ | (86,457 | ) | $ | 2,568,434 |
Amortized Cost | Estimated Fair Value | |||||||
(in thousands) | ||||||||
Due in one year or less | $ | 20,164 | $ | 20,226 | ||||
Due from one year to five years | 71,674 | 75,583 | ||||||
Due from five years to ten years | 194,644 | 200,454 | ||||||
Due after ten years | 234,762 | 221,929 | ||||||
521,244 | 518,192 | |||||||
Collateralized mortgage obligations | 1,022,728 | 1,002,731 | ||||||
Mortgage-backed securities | 918,210 | 930,605 | ||||||
$ | 2,462,182 | $ | 2,451,528 |
Gross Realized Gains | Gross Realized Losses | Other-than- temporary Impairment Losses | Net Gains (Losses) | ||||||||||||
Three months ended June 30, 2014 | (in thousands) | ||||||||||||||
Equity securities | $ | — | $ | — | $ | (12 | ) | $ | (12 | ) | |||||
Debt securities | 1,124 | — | — | 1,124 | |||||||||||
Total | $ | 1,124 | $ | — | $ | (12 | ) | $ | 1,112 | ||||||
Three months ended June 30, 2013 | |||||||||||||||
Equity securities | $ | 1,083 | $ | (28 | ) | $ | (27 | ) | $ | 1,028 | |||||
Debt securities | 1,837 | — | — | 1,837 | |||||||||||
Total | $ | 2,920 | $ | (28 | ) | $ | (27 | ) | $ | 2,865 | |||||
Six months ended June 30, 2014 | |||||||||||||||
Equity securities | $ | 1 | $ | — | $ | (12 | ) | $ | (11 | ) | |||||
Debt securities | 1,446 | (323 | ) | — | 1,123 | ||||||||||
Total | $ | 1,447 | $ | (323 | ) | $ | (12 | ) | $ | 1,112 | |||||
Six months ended June 30, 2013 | |||||||||||||||
Equity securities | $ | 2,222 | $ | (28 | ) | $ | (27 | ) | $ | 2,167 | |||||
Debt securities | 3,171 | — | — | 3,171 | |||||||||||
Total | $ | 5,393 | $ | (28 | ) | $ | (27 | ) | $ | 5,338 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (19,961 | ) | $ | (23,079 | ) | $ | (20,691 | ) | $ | (23,079 | ) | |||
Reductions for securities sold during the period | 2,746 | 2,468 | 3,472 | 2,468 | |||||||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | 1 | 4 | 5 | 4 | |||||||||||
Balance of cumulative credit losses on debt securities, end of period | $ | (17,214 | ) | $ | (20,607 | ) | $ | (17,214 | ) | $ | (20,607 | ) |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
State and municipal securities | $ | 8,531 | $ | (39 | ) | $ | 34,089 | $ | (750 | ) | $ | 42,620 | $ | (789 | ) | ||||||||
Corporate debt securities | — | — | 42,995 | (4,862 | ) | 42,995 | (4,862 | ) | |||||||||||||||
Collateralized mortgage obligations | 33,465 | (97 | ) | 677,357 | (28,124 | ) | 710,822 | (28,221 | ) | ||||||||||||||
Mortgage-backed securities | 37,304 | (45 | ) | 302,835 | (4,681 | ) | 340,139 | (4,726 | ) | ||||||||||||||
Auction rate securities | — | — | 146,839 | (11,533 | ) | 146,839 | (11,533 | ) | |||||||||||||||
Total debt securities | 79,300 | (181 | ) | 1,204,115 | (49,950 | ) | 1,283,415 | (50,131 | ) | ||||||||||||||
Equity securities | 2 | (1 | ) | 77 | (13 | ) | 79 | (14 | ) | ||||||||||||||
$ | 79,302 | $ | (182 | ) | $ | 1,204,192 | $ | (49,963 | ) | $ | 1,283,494 | $ | (50,145 | ) |
June 30, 2014 | December 31, 2013 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 47,524 | $ | 43,186 | $ | 47,481 | $ | 40,531 | |||||||
Subordinated debt | 47,467 | 50,616 | 47,405 | 50,327 | |||||||||||
Pooled trust preferred securities | 2,067 | 4,275 | 2,997 | 5,306 | |||||||||||
Corporate debt securities issued by financial institutions | 97,058 | 98,077 | 97,883 | 96,164 | |||||||||||
Other corporate debt securities | 2,576 | 2,576 | 2,585 | 2,585 | |||||||||||
Available for sale corporate debt securities | $ | 99,634 | $ | 100,653 | $ | 100,468 | $ | 98,749 |
June 30, 2014 | December 31, 2013 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 5,128,734 | $ | 5,101,922 | |||
Commercial - industrial, financial and agricultural | 3,601,721 | 3,628,420 | |||||
Real-estate - home equity | 1,730,497 | 1,764,197 | |||||
Real-estate - residential mortgage | 1,361,976 | 1,337,380 | |||||
Real-estate - construction | 634,018 | 573,672 | |||||
Consumer | 280,557 | 283,124 | |||||
Leasing and other | 109,573 | 99,256 | |||||
Overdrafts | 3,251 | 4,045 | |||||
Loans, gross of unearned income | 12,850,327 | 12,792,016 | |||||
Unearned income | (10,816 | ) | (9,796 | ) | |||
Loans, net of unearned income | $ | 12,839,511 | $ | 12,782,220 |
June 30, 2014 | December 31, 2013 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 191,685 | $ | 202,780 | |||
Reserve for unfunded lending commitments | 1,757 | 2,137 | |||||
Allowance for credit losses | $ | 193,442 | $ | 204,917 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 199,006 | $ | 221,527 | $ | 204,917 | $ | 225,439 | |||||||
Loans charged off | (11,476 | ) | (21,383 | ) | (21,744 | ) | (43,489 | ) | |||||||
Recoveries of loans previously charged off | 2,412 | 3,982 | 4,269 | 7,176 | |||||||||||
Net loans charged off | (9,064 | ) | (17,401 | ) | (17,475 | ) | (36,313 | ) | |||||||
Provision for credit losses | 3,500 | 13,500 | 6,000 | 28,500 | |||||||||||
Balance at end of period | $ | 193,442 | $ | 217,626 | $ | 193,442 | $ | 217,626 |
Real Estate - Commercial Mortgage | Commercial - Industrial, Financial and Agricultural | Real Estate - Home Equity | Real Estate - Residential Mortgage | Real Estate - Construction | Consumer | Leasing and other and overdrafts | Unallocated | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 53,757 | $ | 50,563 | $ | 32,460 | $ | 33,329 | $ | 9,842 | $ | 3,324 | $ | 2,011 | $ | 11,803 | $ | 197,089 | |||||||||||||||||
Loans charged off | (2,141 | ) | (5,512 | ) | (1,234 | ) | (1,089 | ) | (218 | ) | (449 | ) | (833 | ) | — | (11,476 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 430 | 775 | 177 | 108 | 158 | 402 | 362 | — | 2,412 | ||||||||||||||||||||||||||
Net loans charged off | (1,711 | ) | (4,737 | ) | (1,057 | ) | (981 | ) | (60 | ) | (47 | ) | (471 | ) | — | (9,064 | ) | ||||||||||||||||||
Provision for loan losses (1) | (2,204 | ) | 3,258 | 638 | 396 | 1,549 | 29 | 311 | (317 | ) | 3,660 | ||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 49,842 | $ | 49,084 | $ | 32,041 | $ | 32,744 | $ | 11,331 | $ | 3,306 | $ | 1,851 | $ | 11,486 | $ | 191,685 | |||||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 63,985 | $ | 56,672 | $ | 23,701 | $ | 33,484 | $ | 16,004 | $ | 2,286 | $ | 2,787 | $ | 21,122 | $ | 220,041 | |||||||||||||||||
Loans charged off | (5,193 | ) | (5,960 | ) | (1,966 | ) | (4,465 | ) | (2,597 | ) | (433 | ) | (769 | ) | — | (21,383 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,505 | 756 | 192 | 116 | 744 | 406 | 263 | — | 3,982 | ||||||||||||||||||||||||||
Net loans charged off | (3,688 | ) | (5,204 | ) | (1,774 | ) | (4,349 | ) | (1,853 | ) | (27 | ) | (506 | ) | — | (17,401 | ) | ||||||||||||||||||
Provision for loan losses (1) | (1,601 | ) | 6,089 | 3,809 | 3,549 | 320 | 238 | 644 | 743 | 13,791 | |||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 58,696 | $ | 57,557 | $ | 25,736 | $ | 32,684 | $ | 14,471 | $ | 2,497 | $ | 2,925 | $ | 21,865 | $ | 216,431 | |||||||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 55,659 | $ | 50,330 | $ | 28,222 | $ | 33,082 | $ | 12,649 | $ | 3,260 | $ | 3,370 | $ | 16,208 | $ | 202,780 | |||||||||||||||||
Loans charged off | (3,527 | ) | (10,637 | ) | (2,885 | ) | (1,935 | ) | (432 | ) | (1,200 | ) | (1,128 | ) | — | (21,744 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 474 | 1,519 | 533 | 224 | 382 | 611 | 526 |