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 months ended March 31, 2016 and 2015 | |
(d) | Consolidated Statements of Shareholders’ Equity - Three months ended March 31, 2016 and 2015 | |
(e) | Consolidated Statements of Cash Flows - Three months ended March 31, 2016 and 2015 | |
(f) | ||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 4. Mine Safety Disclosures | ||
March 31, 2016 | December 31, 2015 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 83,479 | $ | 101,120 | |||
Interest-bearing deposits with other banks | 346,582 | 230,300 | |||||
Federal Reserve Bank and Federal Home Loan Bank stock | 61,478 | 62,216 | |||||
Loans held for sale | 19,719 | 16,886 | |||||
Available for sale investment securities | 2,516,205 | 2,484,773 | |||||
Loans, net of unearned income | 13,870,701 | 13,838,602 | |||||
Less: Allowance for loan losses | (163,841 | ) | (169,054 | ) | |||
Net Loans | 13,706,860 | 13,669,548 | |||||
Premises and equipment | 228,057 | 225,535 | |||||
Accrued interest receivable | 44,379 | 42,767 | |||||
Goodwill and intangible assets | 531,556 | 531,556 | |||||
Other assets | 583,939 | 550,017 | |||||
Total Assets | $ | 18,122,254 | $ | 17,914,718 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 4,134,861 | $ | 3,948,114 | |||
Interest-bearing | 10,269,419 | 10,184,203 | |||||
Total Deposits | 14,404,280 | 14,132,317 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 32,645 | 197,235 | |||||
Other short-term borrowings | 320,238 | 300,428 | |||||
Total Short-Term Borrowings | 352,883 | 497,663 | |||||
Accrued interest payable | 13,567 | 10,724 | |||||
Other liabilities | 312,561 | 282,578 | |||||
Federal Home Loan Bank advances and long-term debt | 965,654 | 949,542 | |||||
Total Liabilities | 16,048,945 | 15,872,824 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 218.9 million shares issued in 2016 and 2015 | 547,262 | 547,141 | |||||
Additional paid-in capital | 1,452,471 | 1,450,690 | |||||
Retained earnings | 664,236 | 641,588 | |||||
Accumulated other comprehensive loss | (5,137 | ) | (22,017 | ) | |||
Treasury stock, at cost, 45.5 million shares in 2016 and 44.7 million shares in 2015 | (585,523 | ) | (575,508 | ) | |||
Total Shareholders’ Equity | 2,073,309 | 2,041,894 | |||||
Total Liabilities and Shareholders’ Equity | $ | 18,122,254 | $ | 17,914,718 | |||
See Notes to Consolidated Financial Statements |
(in thousands, except per-share data) | Three months ended March 31 | ||||||
2016 | 2015 | ||||||
INTEREST INCOME | |||||||
Loans, including fees | $ | 134,079 | $ | 129,777 | |||
Investment securities: | |||||||
Taxable | 12,003 | 11,282 | |||||
Tax-exempt | 2,040 | 2,087 | |||||
Dividends | 160 | 348 | |||||
Loans held for sale | 131 | 173 | |||||
Other interest income | 898 | 2,105 | |||||
Total Interest Income | 149,311 | 145,772 | |||||
INTEREST EXPENSE | |||||||
Deposits | 10,727 | 9,823 | |||||
Short-term borrowings | 268 | 77 | |||||
Long-term debt | 9,262 | 12,291 | |||||
Total Interest Expense | 20,257 | 22,191 | |||||
Net Interest Income | 129,054 | 123,581 | |||||
Provision for credit losses | 1,530 | (3,700 | ) | ||||
Net Interest Income After Provision for Credit Losses | 127,524 | 127,281 | |||||
NON-INTEREST INCOME | |||||||
Service charges on deposit accounts | 12,558 | 11,569 | |||||
Investment management and trust services | 10,988 | 10,889 | |||||
Other service charges and fees | 10,750 | 9,363 | |||||
Mortgage banking income | 4,030 | 4,688 | |||||
Net gains on sales of investment securities | 947 | 4,145 | |||||
Other | 3,864 | 4,083 | |||||
Total Non-Interest Income | 43,137 | 44,737 | |||||
NON-INTEREST EXPENSE | |||||||
Salaries and employee benefits | 69,372 | 64,990 | |||||
Net occupancy expense | 12,220 | 13,692 | |||||
Other outside services | 6,056 | 5,750 | |||||
Data processing | 5,400 | 4,768 | |||||
Software | 3,921 | 3,318 | |||||
Equipment expense | 3,371 | 3,958 | |||||
FDIC insurance expense | 2,949 | 2,822 | |||||
Supplies and postage | 2,579 | 2,369 | |||||
Professional fees | 2,333 | 2,871 | |||||
Marketing | 1,624 | 1,233 | |||||
Telecommunications | 1,488 | 1,716 | |||||
Other real estate owned and repossession expense | 638 | 1,362 | |||||
Operating risk loss | 540 | 827 | |||||
Intangible amortization | — | 130 | |||||
Other | 7,922 | 8,672 | |||||
Total Non-Interest Expense | 120,413 | 118,478 | |||||
Income Before Income Taxes | 50,248 | 53,540 | |||||
Income taxes | 11,991 | 13,504 | |||||
Net Income | $ | 38,257 | $ | 40,036 | |||
PER SHARE: | |||||||
Net Income (Basic) | $ | 0.22 | $ | 0.22 | |||
Net Income (Diluted) | 0.22 | 0.22 | |||||
Cash Dividends | 0.09 | 0.09 | |||||
See Notes to Consolidated Financial Statements |
Three months ended March 31 | |||||||
2016 | 2015 | ||||||
Net Income | $ | 38,257 | $ | 40,036 | |||
Other Comprehensive Income, net of tax: | |||||||
Unrealized gain on securities | 17,026 | 9,992 | |||||
Reclassification adjustment for securities gains included in net income | (616 | ) | (2,695 | ) | |||
Non-credit related unrealized gain on other-than-temporarily impaired debt securities | — | 125 | |||||
Amortization of unrealized loss on derivative financial instruments | 4 | 34 | |||||
Amortization of net unrecognized pension and postretirement items | 466 | 466 | |||||
Other Comprehensive Income | 16,880 | 7,922 | |||||
Total Comprehensive Income | $ | 55,137 | $ | 47,958 | |||
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, 2015 | 174,176 | $ | 547,141 | $ | 1,450,690 | $ | 641,588 | $ | (22,017 | ) | $ | (575,508 | ) | $ | 2,041,894 | |||||||||||
Net income | 38,257 | 38,257 | ||||||||||||||||||||||||
Other comprehensive income | 16,880 | 16,880 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 134 | 121 | 345 | 1,181 | 1,647 | |||||||||||||||||||||
Stock-based compensation awards | 1,436 | 1,436 | ||||||||||||||||||||||||
Acquisition of treasury stock | (917 | ) | (11,196 | ) | (11,196 | ) | ||||||||||||||||||||
Common stock cash dividends - $0.09 per share | (15,609 | ) | (15,609 | ) | ||||||||||||||||||||||
Balance at March 31, 2016 | 173,393 | $ | 547,262 | $ | 1,452,471 | $ | 664,236 | $ | (5,137 | ) | $ | (585,523 | ) | $ | 2,073,309 | |||||||||||
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 | |||||||||||
See Notes to Consolidated Financial Statements |
Three months ended March 31 | |||||||
2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 38,257 | $ | 40,036 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 1,530 | (3,700 | ) | ||||
Depreciation and amortization of premises and equipment | 6,949 | 7,361 | |||||
Net amortization of investment securities premiums | 2,055 | 1,431 | |||||
Investment securities gains, net | (947 | ) | (4,145 | ) | |||
Gain on sales of mortgage loans held for sale | (2,670 | ) | (3,533 | ) | |||
Proceeds from sales of mortgage loans held for sale | 114,255 | 171,051 | |||||
Originations of mortgage loans held for sale | (114,418 | ) | (184,120 | ) | |||
Amortization of intangible assets | — | 130 | |||||
Amortization of issuance costs on long-term debt | 154 | 147 | |||||
Stock-based compensation | 1,436 | 1,071 | |||||
Excess tax benefits from stock-based compensation | (10 | ) | (15 | ) | |||
Increase in accrued interest receivable | (1,612 | ) | (398 | ) | |||
(Increase) decrease in other assets | (4,469 | ) | 3,794 | ||||
Increase in accrued interest payable | 2,843 | 312 | |||||
(Decrease) increase in other liabilities | (9,245 | ) | 1,234 | ||||
Total adjustments | (4,149 | ) | (9,380 | ) | |||
Net cash provided by operating activities | 34,108 | 30,656 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 46,541 | 11,567 | |||||
Proceeds from maturities of securities available for sale | 117,221 | 105,647 | |||||
Purchase of securities available for sale | (169,436 | ) | (37,142 | ) | |||
Increase in short-term investments | (115,544 | ) | (280,584 | ) | |||
Net increase in loans | (38,976 | ) | (6,362 | ) | |||
Net purchases of premises and equipment | (9,471 | ) | (7,575 | ) | |||
Net cash used in investing activities | (169,665 | ) | (214,449 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings deposits | 269,899 | 171,022 | |||||
Net increase (decrease) in time deposits | 2,064 | (24,031 | ) | ||||
(Decrease) increase in short-term borrowings | (144,780 | ) | 80,386 | ||||
Additions to long-term debt | 16,000 | — | |||||
Repayments of long-term debt | (42 | ) | (45,043 | ) | |||
Net proceeds from issuance of common stock | 1,637 | 1,926 | |||||
Excess tax benefits from stock-based compensation | 10 | 15 | |||||
Dividends paid | (15,676 | ) | (14,314 | ) | |||
Acquisition of treasury stock | (11,196 | ) | — | ||||
Net cash provided by financing activities | 117,916 | 169,961 | |||||
Net Decrease in Cash and Due From Banks | (17,641 | ) | (13,832 | ) | |||
Cash and Due From Banks at Beginning of Period | 101,120 | 105,702 | |||||
Cash and Due From Banks at End of Period | $ | 83,479 | $ | 91,870 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 17,414 | $ | 21,879 | |||
Income taxes | 3,972 | 146 | |||||
See Notes to Consolidated Financial Statements |
Three months ended March 31 | |||||
2016 | 2015 | ||||
(in thousands) | |||||
Weighted average shares outstanding (basic) | 173,331 | 178,471 | |||
Impact of common stock equivalents | 1,085 | 986 | |||
Weighted average shares outstanding (diluted) | 174,416 | 179,457 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three months ended March 31, 2016 | |||||||||||
Unrealized gain on securities | $ | 26,193 | $ | (9,167 | ) | $ | 17,026 | ||||
Reclassification adjustment for securities gains included in net income (1) | (947 | ) | 331 | (616 | ) | ||||||
Amortization of unrealized loss on derivative financial instruments (2) | 6 | (2 | ) | 4 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 717 | (251 | ) | 466 | |||||||
Total Other Comprehensive Income | $ | 25,969 | $ | (9,089 | ) | $ | 16,880 | ||||
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 | |||||||
Amortization of unrealized loss on derivative financial instruments(2) | 52 | (18 | ) | 34 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 717 | (251 | ) | 466 | |||||||
Total Other Comprehensive Income | $ | 12,187 | $ | (4,265 | ) | $ | 7,922 | ||||
(1) | Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "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 in "Interest expense" on the consolidated statements of income. |
(3) | Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "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 March 31, 2016 | |||||||||||||||||||
Balance at December 31, 2015 | $ | (6,499 | ) | $ | 458 | $ | (15 | ) | $ | (15,961 | ) | $ | (22,017 | ) | |||||
Other comprehensive income before reclassifications | 17,026 | — | — | — | 17,026 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (616 | ) | — | 4 | 466 | (146 | ) | ||||||||||||
Balance at March 31, 2016 | $ | 9,911 | $ | 458 | $ | (11 | ) | $ | (15,495 | ) | $ | (5,137 | ) | ||||||
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 | ) |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
March 31, 2016 | |||||||||||||||
U.S. Government sponsored agency securities | $ | 25,149 | $ | 24 | $ | — | $ | 25,173 | |||||||
State and municipal securities | 307,038 | 7,025 | (53 | ) | 314,010 | ||||||||||
Corporate debt securities | 95,389 | 2,773 | (8,276 | ) | 89,886 | ||||||||||
Collateralized mortgage obligations | 782,018 | 5,322 | (5,265 | ) | 782,075 | ||||||||||
Mortgage-backed securities | 1,169,552 | 19,454 | (338 | ) | 1,188,668 | ||||||||||
Auction rate securities | 106,871 | — | (9,545 | ) | 97,326 | ||||||||||
Total debt securities | 2,486,017 | 34,598 | (23,477 | ) | 2,497,138 | ||||||||||
Equity securities | 14,228 | 4,852 | (13 | ) | 19,067 | ||||||||||
Total | $ | 2,500,245 | $ | 39,450 | $ | (23,490 | ) | $ | 2,516,205 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
December 31, 2015 | |||||||||||||||
U.S. Government sponsored agency securities | $ | 25,154 | $ | 35 | $ | (53 | ) | $ | 25,136 | ||||||
State and municipal securities | 256,746 | 6,019 | — | 262,765 | |||||||||||
Corporate debt securities | 100,336 | 2,695 | (6,076 | ) | 96,955 | ||||||||||
Collateralized mortgage obligations | 835,439 | 3,042 | (16,972 | ) | 821,509 | ||||||||||
Mortgage-backed securities | 1,154,935 | 10,104 | (6,204 | ) | 1,158,835 | ||||||||||
Auction rate securities | 106,772 | — | (8,713 | ) | 98,059 | ||||||||||
Total debt securities | 2,479,382 | 21,895 | (38,018 | ) | 2,463,259 | ||||||||||
Equity securities | $ | 14,677 | $ | 6,845 | $ | (8 | ) | $ | 21,514 | ||||||
Total | 2,494,059 | 28,740 | (38,026 | ) | 2,484,773 |
Amortized Cost | Estimated Fair Value | |||||||
(in thousands) | ||||||||
Due in one year or less | $ | 64,096 | $ | 64,475 | ||||
Due from one year to five years | 89,237 | 91,302 | ||||||
Due from five years to ten years | 92,154 | 95,021 | ||||||
Due after ten years | 288,960 | 275,597 | ||||||
534,447 | 526,395 | |||||||
Collateralized mortgage obligations | 782,018 | 782,075 | ||||||
Mortgage-backed securities | 1,169,552 | 1,188,668 | ||||||
Total debt securities | $ | 2,486,017 | $ | 2,497,138 |
Gross Realized Gains | Gross Realized Losses | Net Gains (Losses) | |||||||||
Three months ended March 31, 2016 | (in thousands) | ||||||||||
Equity securities | $ | 733 | $ | — | $ | 733 | |||||
Debt securities | 214 | — | 214 | ||||||||
Total | $ | 947 | $ | — | $ | 947 | |||||
Three months ended March 31, 2015 | |||||||||||
Equity securities | $ | 1,970 | $ | — | $ | 1,970 | |||||
Debt securities | 2,175 | — | 2,175 | ||||||||
Total | $ | 4,145 | $ | — | $ | 4,145 |
Three months ended March 31 | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (11,510 | ) | $ | (16,242 | ) | |
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 | |||||
Balance of cumulative credit losses on debt securities, end of period | $ | (11,510 | ) | $ | (12,302 | ) |
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 | $ | 17,961 | $ | (53 | ) | $ | — | $ | — | $ | 17,961 | $ | (53 | ) | |||||||||
Corporate debt securities | — | — | 30,762 | (8,276 | ) | 30,762 | (8,276 | ) | |||||||||||||||
Collateralized mortgage obligations | 21,078 | (87 | ) | 461,807 | (5,178 | ) | 482,885 | (5,265 | ) | ||||||||||||||
Mortgage-backed securities | 98,180 | (175 | ) | 30,243 | (163 | ) | 128,423 | (338 | ) | ||||||||||||||
Auction rate securities | — | — | 97,326 | (9,545 | ) | 97,326 | (9,545 | ) | |||||||||||||||
Total debt securities | 137,219 | (315 | ) | 620,138 | (23,162 | ) | 757,357 | (23,477 | ) | ||||||||||||||
Equity securities | 50 | (3 | ) | 12 | (10 | ) | 62 | (13 | ) | ||||||||||||||
$ | 137,269 | $ | (318 | ) | $ | 620,150 | $ | (23,172 | ) | $ | 757,419 | $ | (23,490 | ) |
March 31, 2016 | December 31, 2015 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 43,673 | $ | 35,851 | $ | 44,648 | $ | 39,106 | |||||||
Subordinated debt | 47,681 | 49,294 | 51,653 | 53,108 | |||||||||||
Pooled trust preferred securities | — | 706 | — | 706 | |||||||||||
Corporate debt securities issued by financial institutions | 91,354 | 85,851 | 96,301 | 92,920 | |||||||||||
Other corporate debt securities | 4,035 | 4,035 | 4,035 | 4,035 | |||||||||||
Available for sale corporate debt securities | $ | 95,389 | $ | 89,886 | $ | 100,336 | $ | 96,955 |
March 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 5,558,108 | $ | 5,462,330 | |||
Commercial - industrial, financial and agricultural | 4,035,333 | 4,088,962 | |||||
Real-estate - home equity | 1,659,481 | 1,684,439 | |||||
Real-estate - residential mortgage | 1,377,459 | 1,376,160 | |||||
Real-estate - construction | 810,872 | 799,988 | |||||
Consumer | 263,221 | 268,588 | |||||
Leasing and other | 179,765 | 170,914 | |||||
Overdrafts | 2,379 | 2,737 | |||||
Loans, gross of unearned income | 13,886,618 | 13,854,118 | |||||
Unearned income | (15,917 | ) | (15,516 | ) | |||
Loans, net of unearned income | $ | 13,870,701 | $ | 13,838,602 |
March 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 163,841 | $ | 169,054 | |||
Reserve for unfunded lending commitments | 2,224 | 2,358 | |||||
Allowance for credit losses | $ | 166,065 | $ | 171,412 |
Three months ended March 31 | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Balance at beginning of period | $ | 171,412 | $ | 185,931 | |||
Loans charged off | (11,155 | ) | (5,764 | ) | |||
Recoveries of loans previously charged off | 4,278 | 3,191 | |||||
Net loans charged off | (6,877 | ) | (2,573 | ) | |||
Provision for credit losses | 1,530 | (3,700 | ) | ||||
Balance at end of period | $ | 166,065 | $ | 179,658 |
Real Estate - Commercial Mortgage | Commercial - Industrial, Financial and Agricultural | Real Estate - Home Equity | Real Estate - Residential Mortgage | Real Estate - Construction | Consumer | Leasing, other and overdrafts | Unallocated | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Three months ended March 31, 2016 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2015 | $ | 47,866 | $ | 57,098 | $ | 22,405 | $ | 21,375 | $ | 6,529 | $ | 2,585 | $ | 2,468 | $ | 8,728 | $ | 169,054 | |||||||||||||||||
Loans charged off | (582 | ) | (6,188 | ) | (1,541 | ) | (1,068 | ) | (326 | ) | (1,007 | ) | (443 | ) | — | (11,155 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 825 | 2,319 | 338 | 136 | 383 | 196 | 81 | — | 4,278 | ||||||||||||||||||||||||||
Net loans charged off | 243 | (3,869 | ) | (1,203 | ) | (932 | ) | 57 | (811 | ) | (362 | ) | — | (6,877 | ) | ||||||||||||||||||||
Provision for loan losses (1) | 202 | 1,104 | 1,322 | (515 | ) | (304 | ) | 550 | 868 | (1,563 | ) | 1,664 | |||||||||||||||||||||||
Balance at March 31, 2016 | $ | 48,311 | $ | 54,333 | $ | 22,524 | $ | 19,928 | $ | 6,282 | $ | 2,324 | $ | 2,974 | $ | 7,165 | $ | 163,841 | |||||||||||||||||
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 |
(1) | The provision for loan losses excluded a $134,000 decrease and a $170,000 increase, respectively, in the reserve for unfunded lending commitments for the three months ended March 31, 2016 and 2015. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $1.5 million and negative $3.7 million for the three months ended March 31, 2016 and 2015, respectively. |
Real Estate - Commercial Mortgage | Commercial - Industrial, Financial and Agricultural | Real Estate - Home Equity | Real Estate - Residential Mortgage | Real Estate - Construction | Consumer | Leasing, other and overdrafts | Unallocated (1) | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Allowance for loan losses at March 31, 2016: | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 35,914 | $ | 40,969 | $ | 13,541 | $ | 7,599 | $ | 4,004 | $ | 2,302 | $ | 1,756 | $ | 7,165 | $ | 113,250 | |||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 12,397 | 13,364 | 8,983 | 12,329 | 2,278 | 22 | 1,218 | N/A | 50,591 | ||||||||||||||||||||||||||
$ | 48,311 | $ | 54,333 | $ | 22,524 | $ | 19,928 | $ | 6,282 | $ | 2,324 | $ | 2,974 | $ | 7,165 | $ | 163,841 | ||||||||||||||||||
Loans, net of unearned income at March 31, 2016: | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 5,499,820 | $ | 3,992,567 | $ | 1,641,457 | $ | 1,329,114 | $ | 797,282 | $ | 263,189 | $ | 164,806 | N/A | $ | 13,688,235 | ||||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 58,288 | 42,766 | 18,024 | 48,345 | 13,590 | 32 | 1,421 | N/A | 182,466 | ||||||||||||||||||||||||||
$ | 5,558,108 | $ | 4,035,333 | $ | 1,659,481 | $ | 1,377,459 | $ | 810,872 | $ | 263,221 | $ | 166,227 | N/A | $ | 13,870,701 | |||||||||||||||||||
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 |
(1) | The unallocated allowance, which was approximately 4% and 5% of the total allowance for credit losses, respectively, as of March 31, 2016 and March 31, 2015, was, in the opinion of management, reasonable and appropriate given that the estimates used in the allocation process are inherently imprecise. |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
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 | $ | 26,361 | $ | 23,023 | $ | — | $ | 27,872 | $ | 22,596 | $ | — | |||||||||||
Commercial - secured | 14,638 | 12,227 | — | 18,012 | 13,702 | — | |||||||||||||||||
Real estate - residential mortgage | 6,395 | 6,211 | — | 4,790 | 4,790 | — | |||||||||||||||||
Construction - commercial residential | 6,916 | 6,298 | — | 9,916 | 8,865 | — | |||||||||||||||||
54,310 | 47,759 | 60,590 | 49,953 | ||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||
Real estate - commercial mortgage | 44,849 | 35,265 | 12,397 | 45,189 | 35,698 | 12,471 | |||||||||||||||||
Commercial - secured | 34,752 | 29,655 | 12,850 | 39,659 | 33,629 | 14,085 | |||||||||||||||||
Commercial - unsecured | 1,039 | 884 | 514 | 971 | 821 | 498 | |||||||||||||||||
Real estate - home equity | 23,115 | 18,024 | 8,983 | 20,347 | 15,766 | 7,993 | |||||||||||||||||
Real estate - residential mortgage | 50,803 | 42,134 | 12,329 | 55,242 | 45,635 | 13,422 | |||||||||||||||||
Construction - commercial residential | 9,774 | 6,088 | 1,851 | 9,949 | 6,290 | 2,110 | |||||||||||||||||
Construction - commercial | 815 | 594 | 201 | 820 | 638 | 217 | |||||||||||||||||
Construction - other | 747 | 610 | 226 | 331 | 193 | 68 | |||||||||||||||||
Consumer - direct | 20 | 20 | 14 | 19 | 19 | 14 | |||||||||||||||||
Consumer - indirect | 12 | 12 | 8 | 14 | 14 | 8 | |||||||||||||||||
Leasing, other and overdrafts | 1,421 | 1,421 | 1,218 | 1,658 | 1,425 | 704 | |||||||||||||||||
167,347 | 134,707 | 50,591 | 174,199 | 140,128 | 51,590 | ||||||||||||||||||
Total | $ | 221,657 | $ | 182,466 | $ | 50,591 | $ | 234,789 | $ | 190,081 | $ | 51,590 |
Three months ended March 31 | |||||||||||||||
2016 | 2015 | ||||||||||||||
Average Recorded Investment | Interest Income (1) | Average Recorded Investment | Interest Income (1) | ||||||||||||
(in thousands) | |||||||||||||||
With no related allowance recorded: | |||||||||||||||
Real estate - commercial mortgage | $ | 22,810 | $ | 69 | $ | 26,849 | $ | 91 | |||||||
Commercial - secured | 12,964 | 16 | 14,676 | 21 | |||||||||||
Real estate - residential mortgage | 5,501 | 30 | 4,866 | 28 | |||||||||||
Construction - commercial residential | 7,582 | 19 | 14,222 | 55 | |||||||||||
Construction - commercial | — | — | 1,138 | — | |||||||||||
48,857 | 134 | 61,751 | 195 | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Real estate - commercial mortgage | 35,482 | 108 | 39,660 | 133 | |||||||||||
Commercial - secured | 31,642 | 38 | 24,950 | 36 | |||||||||||
Commercial - unsecured | 853 | 1 | 1,175 | 1 | |||||||||||
Real estate - home equity | 16,896 | 57 | 13,106 | 31 | |||||||||||
Real estate - residential mortgage |