FULT 3.31.2015 10Q

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20459 

FORM 10-Q

(Mark One)
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015, or

¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to              

Commission File No. 0-10587
FULTON FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter) 
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)

(717) 291-2411
(Registrant’s telephone number, including area code)
 
Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨
Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
ý
  
Accelerated filer
 
¨
Non-accelerated filer
 
¨
  
Smaller reporting company
 
¨
Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
Common Stock, $2.50 Par Value –176,691,000 shares outstanding as of April 30, 2015.

1

FULTON FINANCIAL CORPORATION
FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2015
INDEX
 
Description
Page
 
 
 
PART I. FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
(a)
Consolidated Balance Sheets - March 31, 2015 and December 31, 2014
 
 
 
(b)
 
 
 
(c)
 
 
 
(d)
 
 
 
(e)
 
 
 
(f)
 
 
 
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 4. Mine Safety Disclosures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2



Item 1. Financial Statements
 

CONSOLIDATED BALANCE SHEETS 
 
(in thousands, except per-share data)
 
March 31,
2015
 
December 31,
2014
 
(unaudited)
 
ASSETS
 
 
 
Cash and due from banks
$
91,870

 
$
105,702

Interest-bearing deposits with other banks
637,973

 
358,130

Federal Reserve Bank and Federal Home Loan Bank stock
65,694

 
64,953

Loans held for sale
34,124

 
17,522

Available for sale investment securities
2,259,802

 
2,323,371

Loans, net of unearned income
13,115,505

 
13,111,716

Less: Allowance for loan losses
(177,701
)
 
(184,144
)
Net Loans
12,937,804

 
12,927,572

Premises and equipment
226,241

 
226,027

Accrued interest receivable
42,216

 
41,818

Goodwill and intangible assets
531,672

 
531,803

Other assets
535,945

 
527,869

Total Assets
$
17,363,341

 
$
17,124,767

LIABILITIES
 
 
 
Deposits:
 
 
 
Noninterest-bearing
$
3,765,677

 
$
3,640,623

Interest-bearing
9,748,820

 
9,726,883

Total Deposits
13,514,497

 
13,367,506

Short-term borrowings:
 
 
 
Federal funds purchased
43

 
6,219

Other short-term borrowings
410,062

 
323,500

Total Short-Term Borrowings
410,105

 
329,719

Accrued interest payable
18,357

 
18,045

Other liabilities
294,352

 
273,419

Federal Home Loan Bank advances and long-term debt
1,094,517

 
1,139,413

Total Liabilities
15,331,828

 
15,128,102

SHAREHOLDERS’ EQUITY
 
 
 
Common stock, $2.50 par value, 600 million shares authorized, 218.3 million shares issued in 2015 and 218.2 million shares issued in 2014
545,734

 
545,555

Additional paid-in capital
1,422,012

 
1,420,523

Retained earnings
582,724

 
558,810

Accumulated other comprehensive loss
(9,800
)
 
(17,722
)
Treasury stock, at cost, 39.2 million shares in 2015 and 39.3 million shares in 2014
(509,157
)
 
(510,501
)
Total Shareholders’ Equity
2,031,513

 
1,996,665

Total Liabilities and Shareholders’ Equity
$
17,363,341

 
$
17,124,767

 
 
 
 
See Notes to Consolidated Financial Statements
 
 
 
 

3


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
(in thousands, except per-share data)
Three months ended March 31
 
2015
 
2014
INTEREST INCOME
 
 
 
Loans, including fees
$
129,777

 
$
131,830

Investment securities:
 
 
 
Taxable
11,282

 
13,266

Tax-exempt
2,087

 
2,348

Dividends
348

 
332

Loans held for sale
173

 
134

Other interest income
2,105

 
882

Total Interest Income
145,772

 
148,792

INTEREST EXPENSE
 
 
 
Deposits
9,823

 
7,896

Short-term borrowings
77

 
633

Long-term debt
12,291

 
10,698

Total Interest Expense
22,191

 
19,227

Net Interest Income
123,581

 
129,565

Provision for credit losses
(3,700
)
 
2,500

Net Interest Income After Provision for Credit Losses
127,281

 
127,065

NON-INTEREST INCOME
 
 
 
Service charges on deposit accounts
11,569

 
11,711

Investment management and trust services
10,889

 
10,958

Other service charges and fees
9,363

 
8,927

Mortgage banking income
4,688

 
3,605

Net gains on sales of investment securities
4,145

 
—

Other
4,083

 
3,305

Total Non-Interest Income
44,737

 
38,506

NON-INTEREST EXPENSE
 
 
 
Salaries and employee benefits
64,990

 
59,566

Net occupancy expense
13,692

 
13,603

Other outside services
5,750

 
3,812

Data processing
4,768

 
3,796

Equipment expense
3,958

 
3,602

Software
3,318

 
2,925

Professional fees
2,871

 
2,904

FDIC insurance expense
2,822

 
2,689

Supplies and postage
2,369

 
2,326

Telecommunications
1,716

 
1,819

Other real estate owned and repossession expense
1,362

 
983

Marketing
1,233

 
1,584

Operating risk loss
827

 
1,828

Intangible amortization
130

 
315

Other
8,672

 
7,802

Total Non-Interest Expense
118,478

 
109,554

Income Before Income Taxes
53,540

 
56,017

Income taxes
13,504

 
14,234

Net Income
$
40,036

 
$
41,783

 
 
 
 
PER SHARE:
 
 
 
Net Income (Basic)
$
0.22

 
$
0.22

Net Income (Diluted)
0.22

 
0.22

Cash Dividends
0.09

 
0.08

See Notes to Consolidated Financial Statements
 
 
 

4


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
 
(in thousands)
 
Three months ended March 31,
 
2015
 
2014
 
 
Net Income
$
40,036

 
$
41,783

Other Comprehensive Income, net of tax:
 
 
 
Unrealized gain on securities
9,992

 
13,933

Reclassification adjustment for postretirement amendment gains included in net income
—

 
(944
)
Reclassification adjustment for securities gains included in net income
(2,695
)
 
—

Non-credit related unrealized gain on other-than-temporarily impaired debt securities
125

 
189

Unrealized gain on derivative financial instruments
34

 
34

Unrecognized postretirement income arising due to plan amendment
—

 
2,144

Amortization of net unrecognized pension and postretirement items
466

 
96

Other Comprehensive Income
7,922

 
15,452

Total Comprehensive Income
$
47,958

 
$
57,235

 
 
 
 
See Notes to Consolidated Financial Statements
 
 
 


5


CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2015 AND 2014
 
(in thousands, except per-share data)
 
Common Stock
 
 
 
Retained
Earnings
 
 
 
Treasury
Stock
 
Total
 
Shares
Outstanding
 
Amount
 
Additional Paid-in
Capital
 
Accumulated
Other Comprehensive
Income (Loss)
 
 
 
Balance at December 31, 2014
178,924

 
$
545,555

 
$
1,420,523

 
$
558,810

 
$
(17,722
)
 
$
(510,501
)
 
$
1,996,665

Net income

 

 

 
40,036

 

 

 
40,036

Other comprehensive income

 

 

 

 
7,922

 

 
7,922

Stock issued, including related tax benefits
174

 
179

 
418

 

 

 
1,344

 
1,941

Stock-based compensation awards

 

 
1,071

 

 

 

 
1,071

Common stock cash dividends - $0.09 per share

 

 

 
(16,122
)
 

 

 
(16,122
)
Balance at March 31, 2015
179,098

 
$
545,734

 
$
1,422,012

 
$
582,724

 
$
(9,800
)
 
$
(509,157
)
 
$
2,031,513

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2013
192,652

 
$
544,568

 
$
1,432,974

 
$
463,843

 
$
(37,341
)
 
$
(340,857
)
 
$
2,063,187

Net income

 

 

 
41,783

 

 

 
41,783

Other comprehensive income

 

 

 

 
15,452

 

 
15,452

Stock issued, including related tax benefits
198

 
253

 
539

 

 

 
1,385

 
2,177

Stock-based compensation awards

 

 
1,033

 

 

 

 
1,033

Acquisition of treasury stock
(4,000
)
 
 
 
 
 
 
 
 
 
(49,804
)
 
(49,804
)
Common stock cash dividends - $0.08 per share

 

 

 
(15,109
)
 

 

 
(15,109
)
Balance at March 31, 2014
188,850

 
$
544,821

 
$
1,434,546

 
$
490,517

 
$
(21,889
)
 
$
(389,276
)
 
$
2,058,719

 
 
 
 
 
 
 
 
 
 
 
 
 
 
See Notes to Consolidated Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 

6


CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
(in thousands)
 
Three months ended March 31
 
2015
 
2014
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net Income
$
40,036

 
$
41,783

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Provision for credit losses
(3,700
)
 
2,500

Depreciation and amortization of premises and equipment
7,361

 
6,629

Net amortization of investment securities premiums
1,431

 
1,435

Net gains on sales of investment securities
(4,145
)
 
—

Net increase in loans held for sale
(16,602
)
 
(3,066
)
Amortization of intangible assets
130

 
315

Stock-based compensation
1,071

 
1,033

Excess tax benefits from stock-based compensation
(15
)
 
(25
)
(Increase) decrease in accrued interest receivable
(398
)
 
661

(Increase) decrease in other assets
(5,525
)
 
7,271

Increase in accrued interest payable
312

 
1,754

Increase in other liabilities
10,553

 
182

Total adjustments
(9,527
)
 
18,689

Net cash provided by operating activities
30,509

 
60,472

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Proceeds from sales of securities available for sale
11,567

 
12,548

Proceeds from maturities of securities available for sale
105,647

 
79,045

Purchase of securities available for sale
(37,142
)
 
(11,700
)
Increase in short-term investments
(280,584
)
 
(58,901
)
Net (increase) decrease in loans
(6,362
)
 
40,017

Net purchases of premises and equipment
(7,575
)
 
(6,255
)
Net cash (used in) provided by investing activities
(214,449
)
 
54,754

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Net increase in demand and savings deposits
171,022

 
94,093

Net (decrease) increase in time deposits
(24,031
)
 
84,638

Increase (decrease) in short-term borrowings
80,386

 
(188,945
)
Repayments of long-term debt
(44,896
)
 
(123
)
Net proceeds from issuance of common stock
1,926

 
2,152

Excess tax benefits from stock-based compensation
15

 
25

Dividends paid
(14,314
)
 
(15,413
)
Acquisition of treasury stock
—

 
(49,804
)
Net cash provided by (used in) financing activities
170,108

 
(73,377
)
Net (Decrease) Increase in Cash and Due From Banks
(13,832
)
 
41,849

Cash and Due From Banks at Beginning of Period
105,702

 
218,540

Cash and Due From Banks at End of Period
$
91,870

 
$
260,389

Supplemental Disclosures of Cash Flow Information:
 
 
 
Cash paid during the period for:
 
 
 
Interest
$
21,879

 
$
17,473

Income taxes
146

 
631

See Notes to Consolidated Financial Statements
 
 
 
 

7

FULTON FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
NOTE 1 – Basis of Presentation

The accompanying unaudited consolidated financial statements of Fulton Financial Corporation (the "Corporation") have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The Corporation evaluates subsequent events through the date of filing of this Form 10-Q with the Securities and Exchange Commission ("SEC").

Recent Accounting Standards

Effective January 1, 2015, the Corporation adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") Update 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." ASC Update 2014-01 provides guidance on accounting for investments made by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low income housing tax credit. The Corporation has made certain investments in partnerships that generate tax credits under various federal programs which promote investment in low and moderate income housing and local economic development. The net income tax benefit associated with these investments, which consists of the amortization of the investments net of tax benefits, and the income tax credits earned on the investments recorded in income taxes on the consolidated income statements was $2.5 million for the three months ended March 31, 2015 and 2014. As of March 31, 2015 and December 31, 2014, the Corporation’s tax credit investments, included in other assets on the consolidated balance sheets, totaled $164.9 million and $155.6 million, respectively. The adoption of this ASC update did not have a material impact on the Corporation's consolidated financial statements for the three months ended March 31, 2015 or 2014.

In February 2015, the FASB issued ASC Update 2015-02, "Consolidation: Amendments to the Consolidation Analysis." ASC Update 2015-02 changes the way reporting enterprises evaluate whether: (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity ("VIE"), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. ASC Update 2015-02 is effective for public business entities' annual and interim reporting periods beginning after December 15, 2015, with earlier adoption permitted. The Corporation intends to adopt this standards update effective with its March 31, 2016 quarterly report on Form 10-Q, and does not expect the adoption of ASC Update 2015-02 to have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASC Update 2015-03, "Interest - Imputation of Interest." ASC Update 2015-03 simplifies the presentation of debt issuances costs. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Under current U.S. GAAP, debt issuance costs are reported on the balance sheet as assets. The costs will continue to be amortized to interest expense using the effective interest method. ASC Update 2015-03 is effective for public business entities' annual and interim reporting periods beginning after December 15, 2015, with earlier adoption permitted. The Corporation intends to adopt this standards update effective with its March 31, 2016 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2015-03 to have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASC Update 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." ASC Update 2015-05 provides explicit guidance to determine when a customer's fees paid in a cloud computing arrangement is for the acquisition of software licenses, services, or both. ASC Update 2015-05 is effective for public business entities' annual and interim reporting periods beginning after December 15, 2015, with earlier adoption permitted. The Corporation intends to adopt this standards update effective with its March 31, 2016 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2015-05 to have a material impact on its consolidated financial statements.

8

NOTE 2 – Net Income Per Share
Basic net income per share is calculated as net income divided by the weighted average number of shares outstanding.
Diluted net income per share is calculated as net income divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation’s common stock equivalents consist of outstanding stock options, restricted stock, restricted stock units ("RSUs") and performance based restricted stock units ("PSUs"). PSUs are required to be included in weighted average shares outstanding if performance measures, as defined in each PSU award agreement, are met as of the end of the period.
A reconciliation of weighted average shares outstanding used to calculate basic net income per share and diluted net income per share follows:
 
Three months ended March 31
 
2015
 
2014
 
(in thousands)
Weighted average shares outstanding (basic)
178,471

 
189,467

Impact of common stock equivalents
986

 
1,022

Weighted average shares outstanding (diluted)
179,457

 
190,489

For the three months ended March 31, 2015 and 2014, 2.1 million and 3.1 million shares issuable under stock options, respectively, were excluded from the diluted net income per share computation as their effect would have been anti-dilutive.

NOTE 3 – Accumulated Other Comprehensive Income
The following table presents changes in other comprehensive income: 
 
Before-Tax Amount
 
Tax Effect
 
Net of Tax Amount
 
(in thousands)
Three months ended March 31, 2015
 
 
 
 
 
Unrealized gain on securities
$
15,371

 
$
(5,379
)
 
$
9,992

Reclassification adjustment for securities gains included in net income (1)
(4,145
)
 
1,450

 
(2,695
)
Non-credit related unrealized gains on other-than-temporarily impaired debt securities
192

 
(67
)
 
125

Unrealized gain on derivative financial instruments
52

 
(18
)
 
34

Amortization of net unrecognized pension and postretirement items (2)
717

 
(251
)
 
466

Total Other Comprehensive Income
$
12,187

 
$
(4,265
)
 
$
7,922

Three months ended March 31, 2014
 
 
 
 
 
Unrealized gain on securities
$
21,435

 
$
(7,502
)
 
$
13,933

Reclassification adjustment for postretirement gains included in net income (2)
(1,452
)
 
508

 
(944
)
Non-credit related unrealized gains on other-than-temporarily impaired debt securities
291

 
(102
)
 
189

Unrealized gain on derivative financial instruments
52

 
(18
)
 
34

Unrecognized pension and postretirement income
3,291

 
(1,147
)
 
2,144

Amortization of net unrecognized pension and postretirement items (2)
149

 
(53
)
 
96

Total Other Comprehensive Income
$
23,766

 
$
(8,314
)
 
$
15,452


(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 4, "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 8, "Employee Benefit Plans," for additional details.



9

The following table presents changes in each component of accumulated other comprehensive income, net of tax: 
 
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 March 31, 2015
 
 
 
 
 
 
 
 
 
Balance at December 31, 2014
$
5,980

 
$
1,349

 
$
(2,546
)
 
$
(22,505
)
 
$
(17,722
)
Other comprehensive income before reclassifications
9,992

 
125

 
—

 
—

 
10,117

Amounts reclassified from accumulated other comprehensive income (loss)
(1,661
)
 
(1,034
)
 
34

 
466

 
(2,195
)
Balance at March 31, 2015
$
14,311

 
$
440

 
$
(2,512
)
 
$
(22,039
)
 
$
(9,800
)
Three months ended March 31, 2014

 

 
 
 

 

Balance at December 31, 2013
$
(27,510
)
 
$
1,652

 
$
(2,682
)
 
$
(8,801
)
 
$
(37,341
)
Other comprehensive income before reclassifications
13,933


189

 
—

 
2,144

 
16,266

Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
34

 
(848
)
 
(814
)
Balance at March 31, 2014
$
(13,577
)
 
$
1,841

 
$
(2,648
)
 
$
(7,505
)
 
$
(21,889
)


10

NOTE 4 – Investment Securities
The following table presents the amortized cost and estimated fair values of investment securities, which were all classified as available for sale:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
(in thousands)
March 31, 2015
 
 
 
 
 
 
 
Equity securities
$
29,224

 
$
11,397

 
$
(13
)
 
$
40,608

U.S. Government sponsored agency securities
198

 
5

 
—

 
203

State and municipal securities
216,877

 
7,496

 
(31
)
 
224,342

Corporate debt securities
99,120

 
3,929

 
(5,367
)
 
97,682

Collateralized mortgage obligations
874,853

 
5,924

 
(12,901
)
 
867,876

Mortgage-backed securities
910,418

 
20,859

 
(1,118
)
 
930,159

Auction rate securities
106,410

 
—

 
(7,478
)
 
98,932

 
$
2,237,100

 
$
49,610

 
$
(26,908
)
 
$
2,259,802

 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
(in thousands)
December 31, 2014
 
 
 
 
 
 
 
Equity securities
$
33,469

 
$
14,167

 
$
(13
)
 
$
47,623

U.S. Government securities
200

 
—

 
—

 
200

U.S. Government sponsored agency securities
209

 
5

 
—

 
214

State and municipal securities
238,250

 
7,231

 
(266
)
 
245,215

Corporate debt securities
99,016

 
5,126

 
(6,108
)
 
98,034

Collateralized mortgage obligations
917,395

 
5,705

 
(20,787
)
 
902,313

Mortgage-backed securities
914,797

 
16,978

 
(2,944
)
 
928,831

Auction rate securities
108,751

 
—

 
(7,810
)
 
100,941

 
$
2,312,087

 
$
49,212

 
$
(37,928
)
 
$
2,323,371

Securities carried at $1.6 billion as of March 31, 2015 and $1.7 billion as of December 31, 2014 were pledged as collateral to secure public and trust deposits and customer repurchase agreements.
Equity securities include common stocks of financial institutions (estimated fair value of $34.7 million at March 31, 2015 and $41.8 million at December 31, 2014) and other equity investments (estimated fair value of $5.9 million at March 31, 2015 and $5.8 million at December 31, 2014).
As of March 31, 2015, the financial institutions stock portfolio had a cost basis of $23.4 million and an estimated fair value of $34.7 million, including an investment in a single financial institution with a cost basis of $15.7 million and an estimated fair value of $23.2 million. The estimated fair value of this investment accounted for 66.7% of the estimated fair value of the Corporation's investments in the common stocks of publicly traded financial institutions. No other investment within the financial institutions stock portfolio exceeded 5% of the portfolio's estimated fair value.

11

The amortized cost and estimated fair values of debt securities as of March 31, 2015, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 
Amortized
Cost
 
Estimated
Fair Value
 
(in thousands)
Due in one year or less
 
$
29,323

 
$
30,124

Due from one year to five years
 
74,801

 
78,246

Due from five years to ten years
 
140,219

 
144,978

Due after ten years
 
178,262

 
167,811

 
 
422,605

 
421,159

Collateralized mortgage obligations
 
874,853

 
867,876

Mortgage-backed securities
 
910,418

 
930,159

 
 
$
2,207,876

 
$
2,219,194

The following table presents information related to the gross realized gains and losses on the sales of equity and debt securities:
 
Gross
Realized
Gains
 
Gross
Realized
Losses
 
Net Gains (Losses)
Three months ended March 31, 2015
(in thousands)
Equity securities
$
1,970

 
$
—

 
$
1,970

Debt securities
2,175

 
—

 
2,175

Total
$
4,145

 
$
—

 
$
4,145

Three months ended March 31, 2014
 
 
 
 
 
Equity securities
$
1

 
$
—

 
$
1

Debt securities
322

 
(323
)
 
(1
)
Total
$
323

 
$
(323
)
 
$
—


The following table presents a summary of the cumulative credit related other-than-temporary impairment charges, recognized as components of earnings, for debt securities held by the Corporation at March 31, 2015 and 2014:
 
Three months ended March 31
 
2015
 
2014
 
(in thousands)
Balance of cumulative credit losses on debt securities, beginning of period
$
(16,242
)
 
$
(20,691
)
Reductions for securities sold during the period
3,938

 
—

Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security
2

 
4

Balance of cumulative credit losses on debt securities, end of period
$
(12,302
)
 
$
(20,687
)






12

The following table presents the gross unrealized losses and estimated fair values of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2015:
 
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
$
5,953

 
$
(31
)
 
$
—

 
$
—

 
$
5,953

 
$
(31
)
Corporate debt securities
4,970

 
(4
)
 
34,600

 
(5,363
)
 
39,570

 
(5,367
)
Collateralized mortgage obligations
34,287

 
(132
)
 
547,418

 
(12,769
)
 
581,705

 
(12,901
)
Mortgage-backed securities
116,136

 
(327
)
 
72,224

 
(791
)
 
188,360

 
(1,118
)
Auction rate securities
—

 
—

 
98,932

 
(7,478
)
 
98,932

 
(7,478
)
Total debt securities
161,346

 
(494
)
 
753,174

 
(26,401
)
 
914,520

 
(26,895
)
Equity securities
—

 
—

 
77

 
(13
)
 
77

 
(13
)
 
$
161,346

 
$
(494
)
 
$
753,251

 
$
(26,414
)
 
$
914,597

 
$
(26,908
)
The Corporation’s collateralized mortgage obligations and mortgage-backed securities have contractual terms that generally do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the decline in market value of these securities is attributable to changes in interest rates and not credit quality, and because the Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, the Corporation does not consider these investments to be other-than-temporarily impaired as of March 31, 2015.
The unrealized holding losses on auction rate securities (auction rate certificates, or "ARCs"), are attributable to liquidity issues resulting from the failure of periodic auctions. The Corporation had previously purchased ARCs for investment management and trust customers as short-term investments with fair values that could be derived based on periodic auctions under normal market conditions. During 2008 and 2009, the Corporation purchased ARCs from these customers due to the failure of these periodic auctions, which made these previously short-term investments illiquid.
As of March 31, 2015, all of the ARCs were rated above investment grade, with approximately $6 million, or 5%, "AAA" rated and $93 million, or 95%, "AA" rated. All of the loans underlying the ARCs have principal payments which are guaranteed by the federal government.
As of March 31, 2015, all ARCs were current and making scheduled interest payments. Based on management’s evaluations, ARCs with an estimated fair value of $98.9 million were not subject to any other-than-temporary impairment charges as of March 31, 2015. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.
For its investments in equity securities, particularly its investments in stocks of financial institutions, management evaluates the near-term prospects of the issuers in relation to the severity and duration of the impairment. Based on that evaluation and the Corporation’s ability and intent to hold those investments for a reasonable period of time sufficient for a recovery of fair value, the Corporation does not consider those investments with unrealized holding losses as of March 31, 2015 to be other-than-temporarily impaired.
The majority of the Corporation's available for sale corporate debt securities are issued by financial institutions. The following table presents the amortized cost and estimated fair value of corporate debt securities:
 
March 31, 2015
 
December 31, 2014
 
Amortized
cost
 
Estimated
fair value
 
Amortized
cost
 
Estimated
fair value
 
(in thousands)
Single-issuer trust preferred securities
$
47,590

 
$
42,863

 
$
47,569

 
$
42,016

Subordinated debt
47,563

 
50,173

 
47,530

 
50,023

Pooled trust preferred securities
405

 
1,084

 
2,010

 
4,088

Corporate debt securities issued by financial institutions
95,558

 
94,120

 
97,109

 
96,127

Other corporate debt securities
3,562

 
3,562

 
1,907

 
1,907

Available for sale corporate debt securities
$
99,120

 
$
97,682

 
$
99,016

 
$
98,034



13

The Corporation’s investments in single-issuer trust preferred securities had an unrealized loss of $4.7 million at March 31, 2015. The Corporation did not record any other-than-temporary impairment charges for single-issuer trust preferred securities during the three months ended March 31, 2015 or 2014. Seven of the Corporation's 20 single-issuer trust preferred securities were rated below investment grade by at least one ratings agency, with an amortized cost of $14.5 million and an estimated fair value of $12.8 million at March 31, 2015. All of the single-issuer trust preferred securities rated below investment grade were rated "BB" or "Ba". Three single-issuer trust preferred securities with an amortized cost of $4.7 million and an estimated fair value of $3.8 million at March 31, 2015 were not rated by any ratings agency.
During the three months ended March 31, 2015, the Corporation sold two pooled trust preferred securities with a total amortized cost of $1.5 million, for a gain of $2.2 million. As of March 31, 2015, all three of the Corporation's pooled trust preferred securities, with an amortized cost of $405,000 and an estimated fair value of $1.1 million, were rated below investment grade by at least one ratings agency, with ratings ranging from "C" to "Ca". The class of securities held by the Corporation was below the most senior tranche, with the Corporation’s interests being subordinate to other investors in the pool. The Corporation determines the fair value of pooled trust preferred securities based on quotes provided by third-party brokers.
The amortized cost of pooled trust preferred securities is the purchase price of the securities, net of cumulative credit related other-than-temporary impairment charges, determined using an expected cash flows model. The most significant input to the expected cash flows model is the expected payment deferral rate for each pooled trust preferred security. The Corporation evaluates the financial metrics, such as capital ratios and non-performing assets ratios, of the individual financial institution issuers that comprise each pooled trust preferred security to estimate its expected deferral rate.
Based on management’s evaluations, corporate debt securities with a fair value of $97.7 million were not subject to any additional other-than-temporary impairment charges as of March 31, 2015. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

NOTE 5 – Loans and Allowance for Credit Losses

Loans, Net of Unearned Income
Loans, net of unearned income are summarized as follows:
 
March 31,
2015
 
December 31, 2014
 
(in thousands)
Real-estate - commercial mortgage
$
5,227,101

 
$
5,197,155

Commercial - industrial, financial and agricultural
3,762,631

 
3,725,567

Real-estate - home equity
1,701,623

 
1,736,688

Real-estate - residential mortgage
1,364,788

 
1,377,068

Real-estate - construction
677,806

 
690,601

Consumer
257,301

 
265,431

Leasing and other
135,552

 
127,562

Overdrafts
1,721

 
4,021

Loans, gross of unearned income
13,128,523

 
13,124,093

Unearned income
(13,018
)
 
(12,377
)
Loans, net of unearned income
$
13,115,505

 
$
13,111,716


Allowance for Credit Losses
The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of incurred losses in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of incurred losses in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet. The allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The Corporation’s allowance for credit losses includes: (1) specific allowances allocated to loans evaluated for impairment under the FASB's ASC Section 310-10-35; and (2) allowances calculated for pools of loans measured for impairment under FASB ASC Subtopic 450-20.

14


The Corporation segments its loan portfolio by general loan type, or "portfolio segments," as presented in the table under the heading, "Loans, Net of Unearned Income," above. Certain portfolio segments are further disaggregated and evaluated collectively for impairment based on "class segments," which are largely based on the type of collateral underlying each loan. Commercial loans include loans secured by collateral and unsecured loans. Construction loan class segments include loans secured by commercial real estate, loans to commercial borrowers secured by residential real estate and loans to individuals secured by residential real estate. Consumer loan class segments include direct consumer installment loans and indirect automobile loans.

The following table presents the components of the allowance for credit losses:
 
March 31,
2015
 
December 31,
2014
 
(in thousands)
Allowance for loan losses
$
177,701

 
$
184,144

Reserve for unfunded lending commitments
1,957

 
1,787

Allowance for credit losses
$
179,658

 
$
185,931

The following table presents the activity in the allowance for credit losses:
 
Three months ended March 31
 
2015
 
2014
 
(in thousands)
Balance at beginning of period
$
185,931

 
$
204,917

Loans charged off
(5,764
)
 
(10,268
)
Recoveries of loans previously charged off
3,191

 
1,857

Net loans charged off
(2,573
)
 
(8,411
)
Provision for credit losses
(3,700
)
 
2,500

Balance at end of period
$
179,658

 
$
199,006


The following table presents the activity in the allowance for loan losses by portfolio segment:
 
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 March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2014
$
53,493

 
$
51,378

 
$
28,271

 
$
29,072

 
$
9,756

 
$
3,015

 
$
1,799

 
$
7,360

 
$
184,144

Loans charged off
(709
)
 
(1,863
)
 
(768
)
 
(1,281
)
 
—

 
(780
)
 
(363
)
 
—

 
(5,764
)
Recoveries of loans previously charged off
436

 
786

 
251

 
159

 
1,147

 
241

 
171

 
—

 
3,191

Net loans charged off
(273
)
 
(1,077
)
 
(517
)
 
(1,122
)
 
1,147

 
(539
)
 
(192
)
 
—

 
(2,573
)
Provision for loan losses (1)
(360
)
 
6,849

 
(4,273
)
 
(4,715
)
 
(2,416
)
 
51

 
46

 
948

 
(3,870
)
Balance at March 31, 2015
$
52,860

 
$
57,150

 
$
23,481

 
$
23,235

 
$
8,487

 
$
2,527

 
$
1,653

 
$
8,308

 
$
177,701

Three months ended March 31, 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
(1,386
)
 
(5,125
)
 
(1,651
)
 
(846
)
 
(214
)
 
(751
)
 
(295
)
 
—

 
(10,268
)
Recoveries of loans previously charged off
44

 
744

 
356

 
116

 
224

 
209

 
164

 
—

 
1,857

Net loans charged off
(1,342
)
 
(4,381
)
 
(1,295
)
 
(730
)
 
10

 
(542
)
 
(131
)
 
—

 
(8,411
)
Provision for loan losses (1)
(560
)
 
4,614

 
5,533

 
977

 
(2,817
)
 
606

 
(1,228
)
 
(4,405
)
 
2,720

Balance at March 31, 2014
$
53,757

 
$
50,563

 
$
32,460

 
$
33,329

 
$
9,842

 
$
3,324

 
$
2,011

 
$
11,803

 
$
197,089


(1)
The provision for loan losses excluded a $170,000 increase and $220,000 decrease in the reserve for unfunded lending commitments for the three months ended March 31, 2015 and March 31, 2014, respectively. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was a negative $3.7 million for the three months ended March 31, 2015 and was $2.5 million for the three months ended March 31, 2014.

15

The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:
 
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
(1)
 
Total
 
(in thousands)
Allowance for loan losses at March 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
38,916

 
$
40,027

 
$
16,937

 
$
9,162

 
$
6,037

 
$
2,504

 
$
1,653

 
$
8,308

 
$
123,544

Evaluated for impairment under FASB ASC Section 310-10-35
13,944

 
17,123

 
6,544

 
14,073

 
2,450

 
23

 
—

 
N/A

 
54,157

 
$
52,860

 
$
57,150

 
$
23,481

 
$
23,235

 
$
8,487

 
$
2,527

 
$
1,653

 
$
8,308

 
$
177,701

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income at March 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
5,157,342

 
$
3,716,037

 
$
1,688,869

 
$
1,312,861

 
$
656,021

 
$
257,265

 
$
124,255

 
N/A

 
$
12,912,650

Evaluated for impairment under FASB ASC Section 310-10-35
69,759

 
46,594

 
12,754

 
51,927

 
21,785

 
36

 
—

 
N/A

 
202,855

 
$
5,227,101

 
$
3,762,631

 
$
1,701,623

 
$
1,364,788

 
$
677,806

 
$
257,301

 
$
124,255

 
N/A

 
$
13,115,505

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses at March 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
37,363

 
$
36,859

 
$
22,969

 
$
11,618

 
$
7,256

 
$
3,309

 
$
2,011

 
$
11,803

 
$
133,188

Evaluated for impairment under FASB ASC Section 310-10-35
16,394

 
13,704

 
9,491

 
21,711

 
2,586

 
15

 
—

 
N/A

 
63,901

 
$
53,757

 
$
50,563

 
$
32,460

 
$
33,329

 
$
9,842

 
$
3,324

 
$
2,011

 
$
11,803

 
$
197,089

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income at March 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measured for impairment under FASB ASC Subtopic 450-20
$
5,075,556

 
$
3,528,857

 
$
1,726,342

 
$
1,279,783

 
$
555,852

 
$
270,004

 
$
96,009

 
N/A

 
$
12,532,403

Evaluated for impairment under FASB ASC Section 310-10-35
61,898

 
45,273

 
14,154

 
51,682

 
28,365

 
17

 
—

 
N/A

 
201,389

 
$
5,137,454

 
$
3,574,130

 
$
1,740,496

 
$
1,331,465

 
$
584,217

 
$
270,021

 
$
96,009

 
N/A

 
$
12,733,792

 
(1)
The unallocated allowance, which was approximately 5% and 6% of the total allowance for credit losses as of March 31, 2015 and March 31, 2014, respectively, was, in the opinion of management, reasonable and appropriate given that the estimates used in the allocation process are inherently imprecise.
N/A    Not applicable.

Impaired Loans
A loan is considered to be impaired if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. Impaired loans consist of all loans on non-accrual status and accruing troubled debt restructurings ("TDRs"). An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Impaired loans to borrowers with total outstanding commitments greater than or equal to $1.0 million are evaluated individually for impairment. Impaired loans to borrowers with total outstanding commitments less than $1.0 million are pooled and measured for impairment collectively.

Based on an evaluation of all relevant credit quality factors, the Corporation recorded a $3.7 million negative provision for credit losses during the three months ended March 31, 2015, compared to a $2.5 million provision for credit losses for the same period in 2014. The $6.2 million improvement in the provision for credit losses was driven by an improvement in net charge-off levels, particularly a decrease in net charge-offs on pooled impaired loans across all loan portfolio segments. During the three months ended March 31, 2015, net charge-offs were $2.6 million, compared to $8.4 million for the three months ended March 31, 2014, and the allowance for loan loss allocations on impaired loans decreased $9.7 million, or 15.2%, compared to the three months ended March 31, 2014.
All loans individually evaluated for impairment under FASB ASC Section 310-10-35 are measured for losses on a quarterly basis.
As of March 31, 2015 and December 31, 2014, substantially all of the Corporation’s individually evaluated impaired loans with total outstanding balances greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral. Collateral could be in the form of real estate, in the case of impaired commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real property.

As of March 31, 2015 and 2014, approximately 78% and 79%, respectively, of impaired loans with principal balances greater than or equal to $1.0 million, whose primary collateral is real estate, were measured at estimated fair value using state certified third-party appraisals that had been updated within the preceding 12 months.


16

When updated appraisals are not obtained for loans evaluated for impairment under FASB ASC Section 310-10-35 that are secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated a strong loan-to-value position and, in the opinion of the Corporation's internal loan evaluation staff, there has not been a significant deterioration in the collateral value since the original appraisal was performed. Original appraisals are typically used only when the estimated collateral value, as adjusted appropriately for the age of the appraisal, results in a current loan-to-value ratio that is lower than the Corporation's loan-to-value requirements for new loans, generally less than 70%.
The following table presents total impaired loans by class segment:
 
March 31, 2015
 
December 31, 2014
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
35,586

 
$
30,462

 
$
—

 
$
25,802

 
$
23,236

 
$
—

Commercial - secured
17,832

 
14,769

 
—

 
17,599

 
14,582

 
—

Real estate - residential mortgage
4,858

 
4,858

 
—

 
4,873

 
4,873

 
—

Construction - commercial residential
16,448

 
13,643

 
—

 
18,041

 
14,801

 
—

Construction - commercial
829

 
694

 
—

 
1,707

 
1,581

 
—

 
75,553

 
64,426

 

 
68,022

 
59,073

 

With a related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
48,636

 
39,297

 
13,944

 
49,619

 
40,023

 
16,715

Commercial - secured
35,825

 
30,565

 
16,315

 
24,824

 
19,335

 
12,165

Commercial - unsecured
1,417

 
1,260

 
808

 
1,241

 
1,089

 
865

Real estate - home equity
18,035

 
12,754

 
6,544

 
19,392

 
13,458

 
9,224

Real estate - residential mortgage
56,684

 
47,069

 
14,073

 
56,607

 
46,478

 
18,592

Construction - commercial residential
13,267

 
6,590

 
2,169

 
14,007

 
7,903

 
2,675

Construction - commercial
867

 
577

 
178

 
1,501

 
1,023

 
459

Construction - other
452

 
281

 
103

 
452

 
281

 
137

Consumer - direct
17

 
17

 
11

 
19

 
19

 
17

Consumer - indirect
41

 
19

 
12

 
20

 
19

 
18

 
175,241

 
138,429

 
54,157

 
167,682

 
129,628

 
60,867

Total
$
250,794

 
$
202,855

 
$
54,157

 
$
235,704

 
$
188,701

 
$
60,867

As of March 31, 2015 and December 31, 2014, there were $64.4 million and $59.1 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or they were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

17

The following table presents average impaired loans by class segment:
 
Three months ended March 31
 
2015
 
2014
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
26,849

 
$
91

 
$
23,993

 
$
86

Commercial - secured
14,676

 
21

 
21,125

 
35

Real estate - home equity
—

 
—

 
300

 
—

Real estate - residential mortgage
4,866

 
28

 
159

 
1

Construction - commercial residential
14,222

 
55

 
17,223

 
60

Construction - commercial
1,138

 
—

 
1,969

 
—

 
61,751

 
195

 
64,769

 
182

With a related allowance recorded:
 
 
 
 
 
 
 
Real estate - commercial mortgage
39,660

 
133

 
37,119

 
132

Commercial - secured
24,950

 
36

 
23,045

 
38

Commercial - unsecured
1,175

 
1

 
845

 
1

Real estate - home equity
13,106

 
31

 
14,096

 
20

Real estate - residential mortgage
46,774

 
273

 
51,231

 
294

Construction - commercial residential