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 nine months ended September 30, 2015 and 2014 | |
(d) | Consolidated Statements of Shareholders’ Equity - Nine months ended September 30, 2015 and 2014 | |
(e) | Consolidated Statements of Cash Flows - Nine months ended September 30, 2015 and 2014 | |
(f) | ||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 4. Mine Safety Disclosures | ||
September 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 93,803 | $ | 105,702 | |||
Interest-bearing deposits with other banks | 510,943 | 358,130 | |||||
Federal Reserve Bank and Federal Home Loan Bank stock | 68,977 | 64,953 | |||||
Loans held for sale | 26,937 | 17,522 | |||||
Available for sale investment securities | 2,436,337 | 2,323,371 | |||||
Loans, net of unearned income | 13,536,361 | 13,111,716 | |||||
Less: Allowance for loan losses | (167,136 | ) | (184,144 | ) | |||
Net Loans | 13,369,225 | 12,927,572 | |||||
Premises and equipment | 225,705 | 226,027 | |||||
Accrued interest receivable | 42,846 | 41,818 | |||||
Goodwill and intangible assets | 531,562 | 531,803 | |||||
Other assets | 531,724 | 527,869 | |||||
Total Assets | $ | 17,838,059 | $ | 17,124,767 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 3,906,228 | $ | 3,640,623 | |||
Interest-bearing | 10,178,166 | 9,726,883 | |||||
Total Deposits | 14,084,394 | 13,367,506 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 5,527 | 6,219 | |||||
Other short-term borrowings | 426,104 | 323,500 | |||||
Total Short-Term Borrowings | 431,631 | 329,719 | |||||
Accrued interest payable | 14,727 | 18,045 | |||||
Other liabilities | 301,970 | 273,419 | |||||
Federal Home Loan Bank advances and long-term debt | 979,433 | 1,139,413 | |||||
Total Liabilities | 15,812,155 | 15,128,102 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 218.6 million shares issued in 2015 and 218.2 million shares issued in 2014 | 546,444 | 545,555 | |||||
Additional paid-in capital | 1,447,569 | 1,420,523 | |||||
Retained earnings | 622,237 | 558,810 | |||||
Accumulated other comprehensive loss | (13,219 | ) | (17,722 | ) | |||
Treasury stock, at cost, 44.8 million shares in 2015 and 39.3 million shares in 2014 | (577,127 | ) | (510,501 | ) | |||
Total Shareholders’ Equity | 2,025,904 | 1,996,665 | |||||
Total Liabilities and Shareholders’ Equity | $ | 17,838,059 | $ | 17,124,767 | |||
See Notes to Consolidated Financial Statements |
(in thousands, except per-share data) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 131,804 | $ | 133,741 | $ | 391,491 | $ | 397,011 | |||||||
Investment securities: | |||||||||||||||
Taxable | 11,252 | 12,278 | 33,478 | 37,962 | |||||||||||
Tax-exempt | 1,904 | 2,219 | 5,872 | 6,865 | |||||||||||
Dividends | 190 | 339 | 834 | 996 | |||||||||||
Loans held for sale | 194 | 237 | 632 | 585 | |||||||||||
Other interest income | 884 | 976 | 3,922 | 3,065 | |||||||||||
Total Interest Income | 146,228 | 149,790 | 436,229 | 446,484 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 10,217 | 8,998 | 30,093 | 25,579 | |||||||||||
Short-term borrowings | 92 | 297 | 272 | 1,470 | |||||||||||
Long-term debt | 10,225 | 11,129 | 33,669 | 32,606 | |||||||||||
Total Interest Expense | 20,534 | 20,424 | 64,034 | 59,655 | |||||||||||
Net Interest Income | 125,694 | 129,366 | 372,195 | 386,829 | |||||||||||
Provision for credit losses | 1,000 | 3,500 | (500 | ) | 9,500 | ||||||||||
Net Interest Income After Provision for Credit Losses | 124,694 | 125,866 | 372,695 | 377,329 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 12,982 | 12,801 | 37,188 | 37,064 | |||||||||||
Investment management and trust services | 11,237 | 11,120 | 33,137 | 33,417 | |||||||||||
Other service charges and fees | 10,965 | 9,954 | 31,316 | 29,407 | |||||||||||
Mortgage banking income | 3,864 | 4,038 | 13,891 | 13,384 | |||||||||||
Investment securities gains, net: | |||||||||||||||
Net gains on sales of investment securities | 1,730 | 99 | 8,290 | 1,223 | |||||||||||
Net other-than-temporary impairment losses | — | (18 | ) | — | (30 | ) | |||||||||
Investment securities gains, net | 1,730 | 81 | 8,290 | 1,193 | |||||||||||
Other | 3,996 | 3,906 | 12,178 | 10,813 | |||||||||||
Total Non-Interest Income | 44,774 | 41,900 | 136,000 | 125,278 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 65,308 | 62,434 | 195,365 | 185,623 | |||||||||||
Net occupancy expense | 10,710 | 11,582 | 36,211 | 36,649 | |||||||||||
Other outside services | 7,373 | 8,632 | 21,248 | 19,684 | |||||||||||
Loss on redemption of trust preferred securities | 5,626 | — | 5,626 | — | |||||||||||
Data processing | 5,105 | 4,689 | 14,767 | 12,816 | |||||||||||
Software | 3,984 | 3,353 | 10,678 | 9,487 | |||||||||||
Equipment expense | 3,595 | 3,307 | 10,888 | 10,269 | |||||||||||
FDIC insurance expense | 2,867 | 2,882 | 8,574 | 8,186 | |||||||||||
Professional fees | 2,828 | 3,252 | 8,430 | 9,715 | |||||||||||
Supplies and postage | 2,708 | 2,560 | 7,803 | 7,337 | |||||||||||
Marketing | 2,102 | 1,798 | 5,570 | 5,719 | |||||||||||
Telecommunications | 1,587 | 1,587 | 4,920 | 5,193 | |||||||||||
Operating risk loss | 1,136 | 1,242 | 2,637 | 3,786 | |||||||||||
Other real estate owned and repossession expense | 1,016 | 1,303 | 2,507 | 3,034 | |||||||||||
Intangible amortization | 5 | 314 | 241 | 944 | |||||||||||
Other | 8,939 | 6,863 | 26,256 | 23,084 | |||||||||||
Total Non-Interest Expense | 124,889 | 115,798 | 361,721 | 341,526 | |||||||||||
Income Before Income Taxes | 44,579 | 51,968 | 146,974 | 161,081 | |||||||||||
Income taxes | 10,328 | 13,402 | 36,007 | 41,136 | |||||||||||
Net Income | $ | 34,251 | $ | 38,566 | $ | 110,967 | $ | 119,945 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.20 | $ | 0.21 | $ | 0.63 | $ | 0.64 | |||||||
Net Income (Diluted) | 0.20 | 0.21 | 0.63 | 0.64 | |||||||||||
Cash Dividends | 0.09 | 0.08 | 0.27 | 0.24 | |||||||||||
See Notes to Consolidated Financial Statements |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Income | $ | 34,251 | $ | 38,566 | $ | 110,967 | $ | 119,945 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on securities | 7,857 | (3,011 | ) | 5,841 | 23,912 | ||||||||||
Reclassification adjustment for postretirement amendment gains included in net income | — | — | — | (944 | ) | ||||||||||
Reclassification adjustment for securities gains included in net income | (1,124 | ) | (52 | ) | (5,388 | ) | (775 | ) | |||||||
Reclassification adjustment for loss on derivative financial instruments included in net income | 2,456 | — | 2,456 | — | |||||||||||
Non-credit related unrealized gain on other-than-temporarily impaired debt securities | — | 138 | 125 | 650 | |||||||||||
Amortization of unrealized loss on derivative financial instruments | 3 | 34 | 71 | 102 | |||||||||||
Unrecognized postretirement income arising due to plan amendment | — | — | — | 2,144 | |||||||||||
Amortization of net unrecognized pension and postretirement items | 466 | 104 | 1,398 | 304 | |||||||||||
Other Comprehensive Income (Loss) | 9,658 | (2,787 | ) | 4,503 | 25,393 | ||||||||||
Total Comprehensive Income | $ | 43,909 | $ | 35,779 | $ | 115,470 | $ | 145,338 | |||||||
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 | 110,967 | 110,967 | ||||||||||||||||||||||||
Other comprehensive income | 4,503 | 4,503 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 613 | 889 | 2,675 | 3,374 | 6,938 | |||||||||||||||||||||
Stock-based compensation awards | 4,371 | 4,371 | ||||||||||||||||||||||||
Acquisition of treasury stock | (3,976 | ) | (50,000 | ) | (50,000 | ) | ||||||||||||||||||||
Settlement of accelerated stock repurchase agreement | (1,790 | ) | 20,000 | (20,000 | ) | — | ||||||||||||||||||||
Common stock cash dividends - $0.27 per share | (47,540 | ) | (47,540 | ) | ||||||||||||||||||||||
Balance at September 30, 2015 | 173,771 | $ | 546,444 | $ | 1,447,569 | $ | 622,237 | $ | (13,219 | ) | $ | (577,127 | ) | $ | 2,025,904 | |||||||||||
Balance at December 31, 2013 | 192,652 | $ | 544,568 | $ | 1,432,974 | $ | 463,843 | $ | (37,341 | ) | $ | (340,857 | ) | $ | 2,063,187 | |||||||||||
Net income | 119,945 | 119,945 | ||||||||||||||||||||||||
Other comprehensive income | 25,393 | 25,393 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 506 | 639 | 1,059 | 3,767 | 5,465 | |||||||||||||||||||||
Stock-based compensation awards | 4,310 | 4,310 | ||||||||||||||||||||||||
Acquisition of treasury stock | (8,000 | ) | (95,255 | ) | (95,255 | ) | ||||||||||||||||||||
Common stock cash dividends - $0.24 per share | (45,039 | ) | (45,039 | ) | ||||||||||||||||||||||
Balance at September 30, 2014 | 185,158 | $ | 545,207 | $ | 1,438,343 | $ | 538,749 | $ | (11,948 | ) | $ | (432,345 | ) | $ | 2,078,006 | |||||||||||
See Notes to Consolidated Financial Statements |
Nine months ended September 30 | |||||||
2015 | 2014 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 110,967 | $ | 119,945 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | (500 | ) | 9,500 | ||||
Depreciation and amortization of premises and equipment | 20,302 | 18,412 | |||||
Net amortization of investment securities premiums | 5,369 | 4,399 | |||||
Net gains on sales of investment securities | (8,290 | ) | (1,193 | ) | |||
Net increase in loans held for sale | (9,415 | ) | (3,861 | ) | |||
Amortization of intangible assets | 241 | 944 | |||||
Stock-based compensation | 4,371 | 4,310 | |||||
Excess tax benefits from stock-based compensation | (86 | ) | (54 | ) | |||
Loss on redemption of trust preferred securities | 5,626 | — | |||||
(Increase) decrease in accrued interest receivable | (1,028 | ) | 493 | ||||
Decrease (increase) in other assets | 6,683 | (1,909 | ) | ||||
(Decrease) increase in accrued interest payable | (3,318 | ) | 2,207 | ||||
Increase (decrease) in other liabilities | 3,995 | (5,315 | ) | ||||
Total adjustments | 23,950 | 27,933 | |||||
Net cash provided by operating activities | 134,917 | 147,878 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 29,309 | 15,219 | |||||
Proceeds from maturities of securities available for sale | 317,813 | 273,688 | |||||
Purchase of securities available for sale | (444,111 | ) | (164,676 | ) | |||
Increase in short-term investments | (156,837 | ) | (129,418 | ) | |||
Net increase in loans | (440,681 | ) | (271,494 | ) | |||
Net purchases of premises and equipment | (19,980 | ) | (16,832 | ) | |||
Net cash used in investing activities | (714,487 | ) | (293,513 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings deposits | 852,611 | 768,979 | |||||
Net (decrease) increase in time deposits | (135,723 | ) | 73,462 | ||||
Increase (decrease) in short-term borrowings | 101,912 | (693,677 | ) | ||||
Additions to long-term debt | 347,778 | 140,000 | |||||
Repayments of long-term debt | (509,606 | ) | (5,295 | ) | |||
Net proceeds from issuance of common stock | 6,852 | 5,411 | |||||
Excess tax benefits from stock-based compensation | 86 | 54 | |||||
Dividends paid | (46,239 | ) | (45,638 | ) | |||
Acquisition of treasury stock | (50,000 | ) | (95,255 | ) | |||
Net cash provided by financing activities | 567,671 | 148,041 | |||||
Net (Decrease) Increase in Cash and Due From Banks | (11,899 | ) | 2,406 | ||||
Cash and Due From Banks at Beginning of Period | 105,702 | 218,540 | |||||
Cash and Due From Banks at End of Period | $ | 93,803 | $ | 220,946 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 67,352 | $ | 57,448 | |||
Income taxes | 9,168 | 16,632 | |||||
See Notes to Consolidated Financial Statements |
Three months ended September 30 | Nine months ended September 30 | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 174,338 | 186,109 | 176,399 | 187,893 | |||||||
Impact of common stock equivalents | 1,004 | 846 | 1,029 | 970 | |||||||
Weighted average shares outstanding (diluted) | 175,342 | 186,955 | 177,428 | 188,863 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three months ended September 30, 2015 | |||||||||||
Unrealized gain on securities | $ | 12,088 | $ | (4,231 | ) | $ | 7,857 | ||||
Reclassification adjustment for securities gains included in net income (1) | (1,730 | ) | 606 | (1,124 | ) | ||||||
Reclassification adjustment for loss on derivative financial instruments included in net income (2) | 3,778 | (1,322 | ) | 2,456 | |||||||
Amortization of unrealized loss on derivative financial instruments | 5 | (2 | ) | 3 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 717 | (251 | ) | 466 | |||||||
Total Other Comprehensive Income | $ | 14,858 | $ | (5,200 | ) | $ | 9,658 | ||||
Three months ended September 30, 2014 | |||||||||||
Unrealized loss on securities | $ | (4,629 | ) | $ | 1,618 | $ | (3,011 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (81 | ) | 29 | (52 | ) | ||||||
Non-credit related unrealized gains on other-than-temporarily impaired debt securities | 212 | (74 | ) | 138 | |||||||
Amortization of unrealized loss on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 160 | (56 | ) | 104 | |||||||
Total Other Comprehensive Loss | $ | (4,286 | ) | $ | 1,499 | $ | (2,787 | ) | |||
Nine months ended September 30, 2015 | |||||||||||
Unrealized gain on securities | $ | 8,987 | $ | (3,146 | ) | $ | 5,841 | ||||
Reclassification adjustment for securities gains included in net income (1) | (8,290 | ) | 2,902 | (5,388 | ) | ||||||
Reclassification adjustment for loss on derivative financial instruments included in net income (2) | 3,778 | (1,322 | ) | 2,456 | |||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 192 | (67 | ) | 125 | |||||||
Amortization of unrealized loss on derivative financial instruments | 110 | (39 | ) | 71 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 2,151 | (753 | ) | 1,398 | |||||||
Total Other Comprehensive Income | $ | 6,928 | $ | (2,425 | ) | $ | 4,503 | ||||
Nine months ended September 30, 2014 | |||||||||||
Unrealized gain on securities | $ | 36,790 | $ | (12,878 | ) | $ | 23,912 | ||||
Reclassification adjustment for securities gains included in net income (1) | (1,193 | ) | 418 | (775 | ) | ||||||
Reclassification adjustment for postretirement gains included in net income (3) | (1,452 | ) | 508 | (944 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 1,000 | (350 | ) | 650 | |||||||
Amortization of unrealized loss on derivative financial instruments | 157 | (55 | ) | 102 | |||||||
Unrecognized pension and postretirement income | 3,291 | (1,147 | ) | 2,144 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 469 | (165 | ) | 304 | |||||||
Total Other Comprehensive Income | $ | 39,062 | $ | (13,669 | ) | $ | 25,393 |
(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) | Amount reclassified out of accumulated other comprehensive income. Before-tax amount included within "Loss on Redemption of Trust Preferred Securities" on the consolidated statements of income. See Note 15, "Long-Term Debt," for additional details. |
(3) | 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 September 30, 2015 | |||||||||||||||||||||
Balance at June 30, 2015 | $ | 830 | $ | 344 | $ | (2,478 | ) | $ | (21,573 | ) | $ | (22,877 | ) | ||||||||
Other comprehensive loss before reclassifications | 7,857 | — | — | — | 7,857 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,124 | ) | — | 3 | 466 | (655 | ) | ||||||||||||||
Reclassification adjustment for loss on derivative financial instruments included in net income | — | — | — | 2,456 | — | — | 2,456 | ||||||||||||||
Balance at September 30, 2015 | $ | 7,563 | $ | 344 | $ | (19 | ) | $ | (21,107 | ) | $ | (13,219 | ) | ||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||
Balance at June 30, 2014 | $ | (580 | ) | $ | 1,434 | $ | (2,614 | ) | $ | (7,401 | ) | $ | (9,161 | ) | |||||||
Other comprehensive income before reclassifications | (3,011 | ) | 138 | — | — | (2,873 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (63 | ) | 11 | 34 | 104 | 86 | |||||||||||||||
Balance at September 30, 2014 | $ | (3,654 | ) | $ | 1,583 | $ | (2,580 | ) | $ | (7,297 | ) | $ | (11,948 | ) | |||||||
Nine months ended September 30, 2015 | |||||||||||||||||||||
Balance at December 31, 2014 | $ | 5,980 | $ | 1,349 | $ | (2,546 | ) | $ | (22,505 | ) | $ | (17,722 | ) | ||||||||
Other comprehensive income before reclassifications | 5,841 | 125 | — | — | 5,966 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (4,258 | ) | (1,130 | ) | 71 | 1,398 | (3,919 | ) | |||||||||||||
Reclassification adjustment for loss on derivative financial instruments included in net income | — | — | 2,456 | — | 2,456 | ||||||||||||||||
Balance at September 30, 2015 | $ | 7,563 | $ | 344 | $ | (19 | ) | $ | (21,107 | ) | $ | (13,219 | ) | ||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
Balance at December 31, 2013 | $ | (27,510 | ) | $ | 1,652 | $ | (2,682 | ) | $ | (8,801 | ) | $ | (37,341 | ) | |||||||
Other comprehensive income before reclassifications | 23,912 | 650 | — | 2,144 | 26,706 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (56 | ) | (719 | ) | 102 | (640 | ) | (1,313 | ) | ||||||||||||
Balance at September 30, 2014 | $ | (3,654 | ) | $ | 1,583 | $ | (2,580 | ) | $ | (7,297 | ) | $ | (11,948 | ) |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
September 30, 2015 | |||||||||||||||
Equity securities | $ | 16,087 | $ | 7,453 | $ | (8 | ) | $ | 23,532 | ||||||
U.S. Government sponsored agency securities | 48,320 | 231 | — | 48,551 | |||||||||||
State and municipal securities | 234,868 | 5,430 | (62 | ) | 240,236 | ||||||||||
Corporate debt securities | 102,297 | 2,935 | (5,291 | ) | 99,941 | ||||||||||
Collateralized mortgage obligations | 879,738 | 5,638 | (11,077 | ) | 874,299 | ||||||||||
Mortgage-backed securities | 1,036,193 | 16,845 | (1,133 | ) | 1,051,905 | ||||||||||
Auction rate securities | 106,661 | — | (8,788 | ) | 97,873 | ||||||||||
$ | 2,424,164 | $ | 38,532 | $ | (26,359 | ) | $ | 2,436,337 |
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 | $ | 62,247 | $ | 63,023 | ||||
Due from one year to five years | 104,989 | 107,283 | ||||||
Due from five years to ten years | 132,930 | 136,571 | ||||||
Due after ten years | 191,980 | 179,724 | ||||||
492,146 | 486,601 | |||||||
Collateralized mortgage obligations | 879,738 | 874,299 | ||||||
Mortgage-backed securities | 1,036,193 | 1,051,905 | ||||||
$ | 2,408,077 | $ | 2,412,805 |
Gross Realized Gains | Gross Realized Losses | Other-than- temporary Impairment Losses | Net Gains (Losses) | ||||||||||||
Three months ended September 30, 2015 | (in thousands) | ||||||||||||||
Equity securities | $ | 1,730 | $ | — | $ | — | $ | 1,730 | |||||||
Debt securities | — | — | — | — | |||||||||||
Total | $ | 1,730 | $ | — | $ | — | $ | 1,730 | |||||||
Three months ended September 30, 2014 | |||||||||||||||
Equity securities | $ | 99 | $ | — | $ | — | $ | 99 | |||||||
Debt securities | — | — | (18 | ) | (18 | ) | |||||||||
Total | $ | 99 | $ | — | $ | (18 | ) | $ | 81 | ||||||
Nine months ended September 30, 2015 | |||||||||||||||
Equity securities | $ | 5,990 | $ | — | $ | — | $ | 5,990 | |||||||
Debt securities | 2,300 | — | — | 2,300 | |||||||||||
Total | $ | 8,290 | $ | — | $ | — | $ | 8,290 | |||||||
Nine months ended September 30, 2014 | |||||||||||||||
Equity securities | $ | 100 | $ | — | $ | (12 | ) | $ | 88 | ||||||
Debt securities | 1,446 | (323 | ) | (18 | ) | 1,105 | |||||||||
Total | $ | 1,546 | $ | (323 | ) | $ | (30 | ) | $ | 1,193 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (11,510 | ) | $ | (17,214 | ) | $ | (16,242 | ) | $ | (20,691 | ) | |||
Additions for credit losses recorded which were not previously recognized as components of earnings | — | (18 | ) | — | (18 | ) | |||||||||
Reductions for securities sold during the period | — | — | 4,730 | 3,472 | |||||||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | — | — | 2 | 5 | |||||||||||
Balance of cumulative credit losses on debt securities, end of period | $ | (11,510 | ) | $ | (17,232 | ) | $ | (11,510 | ) | $ | (17,232 | ) |
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 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
State and municipal securities | 11,892 | (62 | ) | — | — | 11,892 | (62 | ) | |||||||||||||||
Corporate debt securities | 7,968 | (15 | ) | 33,718 | (5,276 | ) | 41,686 | (5,291 | ) | ||||||||||||||
Collateralized mortgage obligations | 30,723 | (62 | ) | 493,703 | (11,015 | ) | 524,426 | (11,077 | ) | ||||||||||||||
Mortgage-backed securities | 161,097 | (443 | ) | 67,071 | (690 | ) | 228,168 | (1,133 | ) | ||||||||||||||
Auction rate securities | — | — | 97,873 | (8,788 | ) | 97,873 | (8,788 | ) | |||||||||||||||
Total debt securities | 211,680 | (582 | ) | 692,365 | (25,769 | ) | 904,045 | (26,351 | ) | ||||||||||||||
Equity securities | — | — | 13 | (8 | ) | 13 | (8 | ) | |||||||||||||||
$ | 211,680 | $ | (582 | ) | $ | 692,378 | $ | (25,777 | ) | $ | 904,058 | $ | (26,359 | ) |
September 30, 2015 | December 31, 2014 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 46,624 | $ | 41,787 | $ | 47,569 | $ | 42,016 | |||||||
Subordinated debt | 51,625 | 53,576 | 47,530 | 50,023 | |||||||||||
Pooled trust preferred securities | — | 530 | 2,010 | 4,088 | |||||||||||
Corporate debt securities issued by financial institutions | 98,249 | 95,893 | 97,109 | 96,127 | |||||||||||
Other corporate debt securities | 4,048 | 4,048 | 1,907 | 1,907 | |||||||||||
Available for sale corporate debt securities | $ | 102,297 | $ | 99,941 | $ | 99,016 | $ | 98,034 |
September 30, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 5,339,928 | $ | 5,197,155 | |||
Commercial - industrial, financial and agricultural | 3,929,908 | 3,725,567 | |||||
Real-estate - home equity | 1,693,649 | 1,736,688 | |||||
Real-estate - residential mortgage | 1,382,085 | 1,377,068 | |||||
Real-estate - construction | 769,565 | 690,601 | |||||
Consumer | 271,696 | 265,431 | |||||
Leasing and other | 161,911 | 127,562 | |||||
Overdrafts | 2,614 | 4,021 | |||||
Loans, gross of unearned income | 13,551,356 | 13,124,093 | |||||
Unearned income | (14,995 | ) | (12,377 | ) | |||
Loans, net of unearned income | $ | 13,536,361 | $ | 13,111,716 |
September 30, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 167,136 | $ | 184,144 | |||
Reserve for unfunded lending commitments | 2,259 | 1,787 | |||||
Allowance for credit losses | $ | 169,395 | $ | 185,931 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 169,453 | $ | 193,442 | $ | 185,931 | $ | 204,917 | |||||||
Loans charged off | (5,561 | ) | (9,604 | ) | (26,697 | ) | (31,348 | ) | |||||||
Recoveries of loans previously charged off | 4,503 | 3,770 | 10,661 | 8,039 | |||||||||||
Net loans charged off | (1,058 | ) | (5,834 | ) | (16,036 | ) | (23,309 | ) | |||||||
Provision for credit losses | 1,000 | 3,500 | (500 | ) | 9,500 | ||||||||||
Balance at end of period | $ | 169,395 | $ | 191,108 | $ | 169,395 | $ | 191,108 |
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 September 30, 2015 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2015 | $ | 50,680 | $ | 49,170 | $ | 22,506 | $ | 22,787 | $ | 7,749 | $ | 2,608 | $ | 1,615 | $ | 10,370 | $ | 167,485 | |||||||||||||||||
Loans charged off | (660 | ) | (1,640 | ) | (940 | ) | (1,035 | ) | (114 | ) | (650 | ) | (522 | ) | — | (5,561 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 842 | 1,598 | 304 | 201 | 898 | 314 | 346 | — | 4,503 | ||||||||||||||||||||||||||
Net loans charged off | 182 | (42 | ) | (636 | ) | (834 | ) | 784 | (336 | ) | (176 | ) | — | (1,058 | ) | ||||||||||||||||||||
Provision for loan losses (1) | 825 | (405 | ) | 180 | (609 | ) | (964 | ) | 282 | 223 | 1,177 | 709 | |||||||||||||||||||||||
Balance at September 30, 2015 | $ | 51,687 | $ | 48,723 | $ | 22,050 | $ | 21,344 | $ | 7,569 | $ | 2,554 | $ | 1,662 | $ | 11,547 | $ | 167,136 | |||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 49,842 | $ | 49,084 | $ | 32,041 | $ | 32,744 | $ | 11,331 | $ | 3,306 | $ | 1,851 | $ | 11,486 | $ | 191,685 | |||||||||||||||||
Loans charged off | (1,557 | ) | (5,167 | ) | (1,492 | ) | (231 | ) | (313 | ) | (538 | ) | (306 | ) | — | (9,604 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,167 | 1,013 | 336 | 95 | 470 | 448 | 241 | — | 3,770 | ||||||||||||||||||||||||||
Net loans charged off | (390 | ) | (4,154 | ) | (1,156 | ) | (136 | ) | 157 | (90 | ) | (65 | ) | — | (5,834 | ) | |||||||||||||||||||
Provision for loan losses (1) | (278 | ) | 6,110 | 406 | 397 | (312 | ) | 244 | 180 | (3,121 | ) | 3,626 | |||||||||||||||||||||||
Balance at September 30, 2014 | $ | 49,174 | $ | 51,040 |