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) | ||
(b) | ||
(c) | Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2015 and 2014 | |
(d) | Consolidated Statements of Shareholders’ Equity - Six months ended June 30, 2015 and 2014 | |
(e) | Consolidated Statements of Cash Flows - Six months ended June 30, 2015 and 2014 | |
(f) | ||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 4. Mine Safety Disclosures | ||
June 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 100,455 | $ | 105,702 | |||
Interest-bearing deposits with other banks | 322,218 | 358,130 | |||||
Federal Reserve Bank and Federal Home Loan Bank stock | 65,106 | 64,953 | |||||
Loans held for sale | 33,980 | 17,522 | |||||
Available for sale investment securities | 2,440,492 | 2,323,371 | |||||
Loans, net of unearned income | 13,244,230 | 13,111,716 | |||||
Less: Allowance for loan losses | (167,485 | ) | (184,144 | ) | |||
Net Loans | 13,076,745 | 12,927,572 | |||||
Premises and equipment | 226,794 | 226,027 | |||||
Accrued interest receivable | 41,193 | 41,818 | |||||
Goodwill and intangible assets | 531,567 | 531,803 | |||||
Other assets | 526,923 | 527,869 | |||||
Total Assets | $ | 17,365,473 | $ | 17,124,767 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 3,805,165 | $ | 3,640,623 | |||
Interest-bearing | 9,700,544 | 9,726,883 | |||||
Total Deposits | 13,505,709 | 13,367,506 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 5,058 | 6,219 | |||||
Other short-term borrowings | 403,977 | 323,500 | |||||
Total Short-Term Borrowings | 409,035 | 329,719 | |||||
Accrued interest payable | 15,172 | 18,045 | |||||
Other liabilities | 278,099 | 273,419 | |||||
Federal Home Loan Bank advances and long-term debt | 1,132,641 | 1,139,413 | |||||
Total Liabilities | 15,340,656 | 15,128,102 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 218.5 million shares issued in 2015 and 218.2 million shares issued in 2014 | 546,219 | 545,555 | |||||
Additional paid-in capital | 1,445,315 | 1,420,523 | |||||
Retained earnings | 603,597 | 558,810 | |||||
Accumulated other comprehensive loss | (22,877 | ) | (17,722 | ) | |||
Treasury stock, at cost, 42.5 million shares in 2015 and 39.3 million shares in 2014 | (547,437 | ) | (510,501 | ) | |||
Total Shareholders’ Equity | 2,024,817 | 1,996,665 | |||||
Total Liabilities and Shareholders’ Equity | $ | 17,365,473 | $ | 17,124,767 | |||
See Notes to Consolidated Financial Statements |
(in thousands, except per-share data) | Three months ended June 30 | Six months ended June 30 | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 129,910 | $ | 131,440 | $ | 259,687 | $ | 263,270 | |||||||
Investment securities: | |||||||||||||||
Taxable | 10,944 | 12,418 | 22,226 | 25,684 | |||||||||||
Tax-exempt | 1,881 | 2,298 | 3,968 | 4,646 | |||||||||||
Dividends | 296 | 325 | 644 | 657 | |||||||||||
Loans held for sale | 265 | 214 | 438 | 348 | |||||||||||
Other interest income | 933 | 1,207 | 3,038 | 2,089 | |||||||||||
Total Interest Income | 144,229 | 147,902 | 290,001 | 296,694 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 10,053 | 8,685 | 19,876 | 16,581 | |||||||||||
Short-term borrowings | 103 | 540 | 180 | 1,173 | |||||||||||
Long-term debt | 11,153 | 10,779 | 23,444 | 21,477 | |||||||||||
Total Interest Expense | 21,309 | 20,004 | 43,500 | 39,231 | |||||||||||
Net Interest Income | 122,920 | 127,898 | 246,501 | 257,463 | |||||||||||
Provision for credit losses | 2,200 | 3,500 | (1,500 | ) | 6,000 | ||||||||||
Net Interest Income After Provision for Credit Losses | 120,720 | 124,398 | 248,001 | 251,463 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 12,637 | 12,552 | 24,206 | 24,263 | |||||||||||
Investment management and trust services | 11,011 | 11,339 | 21,900 | 22,297 | |||||||||||
Other service charges and fees | 10,988 | 10,526 | 20,351 | 19,453 | |||||||||||
Mortgage banking income | 5,339 | 5,741 | 10,027 | 9,346 | |||||||||||
Investment securities gains, net: | |||||||||||||||
Net gains on sales of investment securities | 2,415 | 1,124 | 6,560 | 1,124 | |||||||||||
Other-than-temporary impairment losses | — | (12 | ) | — | (12 | ) | |||||||||
Investment securities gains, net | 2,415 | 1,112 | 6,560 | 1,112 | |||||||||||
Other | 4,099 | 3,602 | 8,182 | 6,907 | |||||||||||
Total Non-Interest Income | 46,489 | 44,872 | 91,226 | 83,378 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 65,067 | 63,623 | 130,057 | 123,189 | |||||||||||
Net occupancy expense | 11,809 | 11,464 | 25,501 | 25,067 | |||||||||||
Other outside services | 8,125 | 7,240 | 13,875 | 11,052 | |||||||||||
Data processing | 4,894 | 4,331 | 9,662 | 8,127 | |||||||||||
Software | 3,376 | 3,209 | 6,694 | 6,134 | |||||||||||
Equipment expense | 3,335 | 3,360 | 7,293 | 6,962 | |||||||||||
FDIC insurance expense | 2,885 | 2,615 | 5,707 | 5,304 | |||||||||||
Professional fees | 2,731 | 3,559 | 5,602 | 6,463 | |||||||||||
Supplies and postage | 2,726 | 2,451 | 5,095 | 4,777 | |||||||||||
Marketing | 2,235 | 2,337 | 3,468 | 3,921 | |||||||||||
Telecommunications | 1,617 | 1,787 | 3,333 | 3,606 | |||||||||||
Operating risk loss | 674 | 716 | 1,501 | 2,544 | |||||||||||
Other real estate owned and repossession expense | 129 | 748 | 1,491 | 1,731 | |||||||||||
Intangible amortization | 106 | 315 | 236 | 630 | |||||||||||
Other | 8,645 | 8,419 | 17,317 | 16,221 | |||||||||||
Total Non-Interest Expense | 118,354 | 116,174 | 236,832 | 225,728 | |||||||||||
Income Before Income Taxes | 48,855 | 53,096 | 102,395 | 109,113 | |||||||||||
Income taxes | 12,175 | 13,500 | 25,679 | 27,734 | |||||||||||
Net Income | $ | 36,680 | $ | 39,596 | $ | 76,716 | $ | 81,379 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.21 | $ | 0.21 | $ | 0.43 | $ | 0.43 | |||||||
Net Income (Diluted) | 0.21 | 0.21 | 0.43 | 0.43 | |||||||||||
Cash Dividends | 0.09 | 0.08 | 0.18 | 0.16 | |||||||||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Income | $ | 36,680 | $ | 39,596 | $ | 76,716 | $ | 81,379 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on securities | (12,008 | ) | 12,990 | (2,016 | ) | 26,923 | |||||||||
Reclassification adjustment for postretirement amendment gains included in net income | — | — | — | (944 | ) | ||||||||||
Reclassification adjustment for securities gains included in net income | (1,569 | ) | (723 | ) | (4,264 | ) | (723 | ) | |||||||
Non-credit related unrealized gain on other-than-temporarily impaired debt securities | — | 323 | 125 | 512 | |||||||||||
Unrealized gain on derivative financial instruments | 34 | 34 | 68 | 68 | |||||||||||
Unrecognized postretirement income arising due to plan amendment | — | — | — | 2,144 | |||||||||||
Amortization of net unrecognized pension and postretirement items | 466 | 104 | 932 | 200 | |||||||||||
Other Comprehensive Income (Loss) | (13,077 | ) | 12,728 | (5,155 | ) | 28,180 | |||||||||
Total Comprehensive Income | $ | 23,603 | $ | 52,324 | $ | 71,561 | $ | 109,559 | |||||||
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, 2014 | 178,924 | $ | 545,555 | $ | 1,420,523 | $ | 558,810 | $ | (17,722 | ) | $ | (510,501 | ) | $ | 1,996,665 | |||||||||||
Net income | 76,716 | 76,716 | ||||||||||||||||||||||||
Other comprehensive loss | (5,155 | ) | (5,155 | ) | ||||||||||||||||||||||
Stock issued, including related tax benefits | 423 | 664 | 1,954 | 2,077 | 4,695 | |||||||||||||||||||||
Stock-based compensation awards | 2,838 | 2,838 | ||||||||||||||||||||||||
Acquisition of treasury stock | (1,538 | ) | (19,013 | ) | (19,013 | ) | ||||||||||||||||||||
Settlement of accelerated stock repurchase agreement | (1,790 | ) | 20,000 | (20,000 | ) | — | ||||||||||||||||||||
Common stock cash dividends - $0.18 per share | (31,929 | ) | (31,929 | ) | ||||||||||||||||||||||
Balance at June 30, 2015 | 176,019 | $ | 546,219 | $ | 1,445,315 | $ | 603,597 | $ | (22,877 | ) | $ | (547,437 | ) | $ | 2,024,817 | |||||||||||
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 | 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 | |||||||||||
See Notes to Consolidated Financial Statements |
Six months ended June 30 | |||||||
2015 | 2014 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 76,716 | $ | 81,379 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | (1,500 | ) | 6,000 | ||||
Depreciation and amortization of premises and equipment | 13,920 | 12,354 | |||||
Net amortization of investment securities premiums | 3,288 | 2,908 | |||||
Net gains on sales of investment securities | (6,560 | ) | (1,112 | ) | |||
Net increase in loans held for sale | (16,458 | ) | (14,728 | ) | |||
Amortization of intangible assets | 236 | 630 | |||||
Stock-based compensation | 2,838 | 3,022 | |||||
Excess tax benefits from stock-based compensation | (63 | ) | (52 | ) | |||
Decrease in accrued interest receivable | 625 | 1,921 | |||||
Decrease (increase) in other assets | 9,818 | (3,039 | ) | ||||
(Decrease) increase in accrued interest payable | (2,873 | ) | 1,429 | ||||
(Decrease) increase in other liabilities | (2,959 | ) | 3,646 | ||||
Total adjustments | 312 | 12,979 | |||||
Net cash provided by operating activities | 77,028 | 94,358 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 18,815 | 15,189 | |||||
Proceeds from maturities of securities available for sale | 205,620 | 174,619 | |||||
Purchase of securities available for sale | (346,322 | ) | (60,952 | ) | |||
Decrease (increase) in short-term investments | 35,759 | (57,357 | ) | ||||
Net increase in loans | (147,492 | ) | (74,766 | ) | |||
Net purchases of premises and equipment | (14,687 | ) | (11,501 | ) | |||
Net cash used in investing activities | (248,307 | ) | (14,768 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings deposits | 205,901 | 104,390 | |||||
Net (decrease) increase in time deposits | (67,698 | ) | 98,083 | ||||
Increase (decrease) in short-term borrowings | 79,316 | (250,322 | ) | ||||
Additions to long-term debt | 148,099 | 90,000 | |||||
Repayments of long-term debt | (154,871 | ) | (5,189 | ) | |||
Net proceeds from issuance of common stock | 4,632 | 4,018 | |||||
Excess tax benefits from stock-based compensation | 63 | 52 | |||||
Dividends paid | (30,397 | ) | (30,521 | ) | |||
Acquisition of treasury stock | (19,013 | ) | (49,804 | ) | |||
Net cash provided by (used in) financing activities | 166,032 | (39,293 | ) | ||||
Net (Decrease) Increase in Cash and Due From Banks | (5,247 | ) | 40,297 | ||||
Cash and Due From Banks at Beginning of Period | 105,702 | 218,540 | |||||
Cash and Due From Banks at End of Period | $ | 100,455 | $ | 258,837 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 46,373 | $ | 37,802 | |||
Income taxes | 11,051 | 16,407 | |||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 176,433 | 188,139 | 177,446 | 188,799 | |||||||
Impact of common stock equivalents | 1,098 | 1,043 | 1,042 | 1,033 | |||||||
Weighted average shares outstanding (diluted) | 177,531 | 189,182 | 178,488 | 189,832 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three months ended June 30, 2015 | |||||||||||
Unrealized loss on securities | $ | (18,474 | ) | $ | 6,466 | $ | (12,008 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (2,413 | ) | 844 | (1,569 | ) | ||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 717 | (251 | ) | 466 | |||||||
Total Other Comprehensive Loss | $ | (20,118 | ) | $ | 7,041 | $ | (13,077 | ) | |||
Three months ended June 30, 2014 | |||||||||||
Unrealized gain 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 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 | $ | 19,581 | $ | (6,853 | ) | $ | 12,728 | ||||
Six months ended June 30, 2015 | |||||||||||
Unrealized loss on securities | $ | (3,103 | ) | $ | 1,087 | $ | (2,016 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (6,558 | ) | 2,294 | (4,264 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 192 | (67 | ) | 125 | |||||||
Unrealized gain on derivative financial instruments | 104 | (36 | ) | 68 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 1,434 | (502 | ) | 932 | |||||||
Total Other Comprehensive Loss | $ | (7,931 | ) | $ | 2,776 | $ | (5,155 | ) | |||
Six months ended June 30, 2014 | |||||||||||
Unrealized gain 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 | $ | 43,348 | $ | (15,168 | ) | $ | 28,180 |
(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. |
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, 2015 | |||||||||||||||||||
Balance at March 31, 2015 | $ | 14,311 | $ | 440 | $ | (2,512 | ) | $ | (22,039 | ) | $ | (9,800 | ) | ||||||
Other comprehensive loss before reclassifications | (12,008 | ) | — | — | — | (12,008 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,473 | ) | (96 | ) | 34 | 466 | (1,069 | ) | |||||||||||
Balance at June 30, 2015 | $ | 830 | $ | 344 | $ | (2,478 | ) | $ | (21,573 | ) | $ | (22,877 | ) | ||||||
Three months ended June 30, 2014 | |||||||||||||||||||
Balance at March 31, 2014 | $ | (13,577 | ) | $ | 1,841 | $ | (2,648 | ) | $ | (7,505 | ) | $ | (21,889 | ) | |||||
Other comprehensive income 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 | ) | |||||
Six months ended June 30, 2015 | |||||||||||||||||||
Balance at December 31, 2014 | $ | 5,980 | $ | 1,349 | $ | (2,546 | ) | $ | (22,505 | ) | $ | (17,722 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (2,016 | ) | 125 | — | — | (1,891 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (3,134 | ) | (1,130 | ) | 68 | 932 | (3,264 | ) | |||||||||||
Balance at June 30, 2015 | $ | 830 | $ | 344 | $ | (2,478 | ) | $ | (21,573 | ) | $ | (22,877 | ) | ||||||
Six months ended June 30, 2014 | |||||||||||||||||||
Balance at December 31, 2013 | $ | (27,510 | ) | $ | 1,652 | $ | (2,682 | ) | $ | (8,801 | ) | $ | (37,341 | ) | |||||
Other comprehensive income 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 | ) |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
June 30, 2015 | |||||||||||||||
Equity securities | $ | 23,981 | $ | 9,072 | $ | (12 | ) | $ | 33,041 | ||||||
U.S. Government sponsored agency securities | 48,333 | 57 | (130 | ) | 48,260 | ||||||||||
State and municipal securities | 231,592 | 5,312 | (387 | ) | 236,517 | ||||||||||
Corporate debt securities | 98,756 | 3,183 | (4,767 | ) | 97,172 | ||||||||||
Collateralized mortgage obligations | 931,093 | 4,932 | (17,793 | ) | 918,232 | ||||||||||
Mortgage-backed securities | 998,418 | 14,112 | (3,866 | ) | 1,008,664 | ||||||||||
Auction rate securities | 106,504 | — | (7,898 | ) | 98,606 | ||||||||||
$ | 2,438,677 | $ | 36,668 | $ | (34,853 | ) | $ | 2,440,492 |
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 |
Amortized Cost | Estimated Fair Value | |||||||
(in thousands) | ||||||||
Due in one year or less | $ | 57,382 | $ | 58,372 | ||||
Due from one year to five years | 104,022 | 106,663 | ||||||
Due from five years to ten years | 148,682 | 151,430 | ||||||
Due after ten years | 175,099 | 164,090 | ||||||
485,185 | 480,555 | |||||||
Collateralized mortgage obligations | 931,093 | 918,232 | ||||||
Mortgage-backed securities | 998,418 | 1,008,664 | ||||||
$ | 2,414,696 | $ | 2,407,451 |
Gross Realized Gains | Gross Realized Losses | Other-than- temporary Impairment Losses | Net Gains (Losses) | ||||||||||||
Three months ended June 30, 2015 | (in thousands) | ||||||||||||||
Equity securities | $ | 2,290 | $ | — | $ | — | $ | 2,290 | |||||||
Debt securities | 125 | — | — | 125 | |||||||||||
Total | $ | 2,415 | $ | — | $ | — | $ | 2,415 | |||||||
Three months ended June 30, 2014 | |||||||||||||||
Equity securities | $ | — | $ | — | $ | (12 | ) | $ | (12 | ) | |||||
Debt securities | 1,124 | — | — | 1,124 | |||||||||||
Total | $ | 1,124 | $ | — | $ | (12 | ) | $ | 1,112 | ||||||
Six months ended June 30, 2015 | |||||||||||||||
Equity securities | $ | 4,260 | $ | — | $ | — | $ | 4,260 | |||||||
Debt securities | 2,300 | — | — | 2,300 | |||||||||||
Total | $ | 6,560 | $ | — | $ | — | $ | 6,560 | |||||||
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 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (12,302 | ) | $ | (19,961 | ) | $ | (16,242 | ) | $ | (20,691 | ) | |||
Reductions for securities sold during the period | 792 | 2,746 | 4,730 | 3,472 | |||||||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | — | 1 | 2 | 5 | |||||||||||
Balance of cumulative credit losses on debt securities, end of period | $ | (11,510 | ) | $ | (17,214 | ) | $ | (11,510 | ) | $ | (17,214 | ) |
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) | |||||||||||||||||||||||
U.S. Government sponsored agency securities | $ | 28,051 | $ | (130 | ) | $ | — | $ | — | $ | 28,051 | $ | (130 | ) | |||||||||
State and municipal securities | 34,107 | (387 | ) | — | — | 34,107 | (387 | ) | |||||||||||||||
Corporate debt securities | 7,965 | (13 | ) | 35,229 | (4,754 | ) | 43,194 | (4,767 | ) | ||||||||||||||
Collateralized mortgage obligations | 95,315 | (651 | ) | 517,338 | (17,142 | ) | 612,653 | (17,793 | ) | ||||||||||||||
Mortgage-backed securities | 306,980 | (2,498 | ) | 69,029 | (1,368 | ) | 376,009 | (3,866 | ) | ||||||||||||||
Auction rate securities | — | — | 98,606 | (7,898 | ) | 98,606 | (7,898 | ) | |||||||||||||||
Total debt securities | 472,418 | (3,679 | ) | 720,202 | (31,162 | ) | 1,192,620 | (34,841 | ) | ||||||||||||||
Equity securities | — | — | 78 | (12 | ) | 78 | (12 | ) | |||||||||||||||
$ | 472,418 | $ | (3,679 | ) | $ | 720,280 | $ | (31,174 | ) | $ | 1,192,698 | $ | (34,853 | ) |
June 30, 2015 | December 31, 2014 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 47,613 | $ | 43,378 | $ | 47,569 | $ | 42,016 | |||||||
Subordinated debt | 47,595 | 49,716 | 47,530 | 50,023 | |||||||||||
Pooled trust preferred securities | — | 530 | 2,010 | 4,088 | |||||||||||
Corporate debt securities issued by financial institutions | 95,208 | 93,624 | 97,109 | 96,127 | |||||||||||
Other corporate debt securities | 3,548 | 3,548 | 1,907 | 1,907 | |||||||||||
Available for sale corporate debt securities | $ | 98,756 | $ | 97,172 | $ | 99,016 | $ | 98,034 |
June 30, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 5,237,800 | $ | 5,197,155 | |||
Commercial - industrial, financial and agricultural | 3,806,699 | 3,725,567 | |||||
Real-estate - home equity | 1,689,688 | 1,736,688 | |||||
Real-estate - residential mortgage | 1,369,103 | 1,377,068 | |||||
Real-estate - construction | 731,925 | 690,601 | |||||
Consumer | 272,494 | 265,431 | |||||
Leasing and other | 147,960 | 127,562 | |||||
Overdrafts | 2,642 | 4,021 | |||||
Loans, gross of unearned income | 13,258,311 | 13,124,093 | |||||
Unearned income | (14,081 | ) | (12,377 | ) | |||
Loans, net of unearned income | $ | 13,244,230 | $ | 13,111,716 |
June 30, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 167,485 | $ | 184,144 | |||
Reserve for unfunded lending commitments | 1,968 | 1,787 | |||||
Allowance for credit losses | $ | 169,453 | $ | 185,931 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 179,658 | $ | 199,006 | $ | 185,931 | $ | 204,917 | |||||||
Loans charged off | (15,372 | ) | (11,476 | ) | (21,136 | ) | (21,744 | ) | |||||||
Recoveries of loans previously charged off | 2,967 | 2,412 | 6,158 | 4,269 | |||||||||||
Net loans charged off | (12,405 | ) | (9,064 | ) | (14,978 | ) | (17,475 | ) | |||||||
Provision for credit losses | 2,200 | 3,500 | (1,500 | ) | 6,000 | ||||||||||
Balance at end of period | $ | 169,453 | $ | 193,442 | $ | 169,453 | $ | 193,442 |
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, 2015 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2015 | $ | 52,860 | $ | 57,150 | $ | 23,481 | $ | 23,235 | $ | 8,487 | $ | 2,527 | $ | 1,653 | $ | 8,308 | $ | 177,701 | |||||||||||||||||
Loans charged off | (1,642 | ) | (11,166 | ) | (870 | ) | (783 | ) | (87 | ) | (357 | ) | (467 | ) | — | (15,372 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 451 | 1,471 | 189 | 187 | 231 | 368 | 70 | — | 2,967 | ||||||||||||||||||||||||||
Net loans charged off | (1,191 | ) | (9,695 | ) | (681 | ) | (596 | ) | 144 | 11 | (397 | ) | — | (12,405 | ) | ||||||||||||||||||||
Provision for loan losses (1) | (989 | ) | 1,715 | (294 | ) | 148 | (882 | ) | 70 | 359 | 2,062 | 2,189 | |||||||||||||||||||||||
Balance at June 30, 2015 | $ | 50,680 | $ | 49,170 | $ | 22,506 | $ | 22,787 | $ | 7,749 | $ | 2,608 | $ | 1,615 | $ | 10,370 | $ | 167,485 | |||||||||||||||||
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 | |||||||||||||||||
Six months ended June 30, 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 | (2,351 | ) | (13,029 | ) | (1,638 | ) | (2,064 | ) | (87 | ) | (1,137 | ) | (830 | ) | — | (21,136 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 887 | 2,257 | 440 | 346 | 1,378 | 609 | 241 | — |