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, 2016 and 2015 | |
(d) | Consolidated Statements of Shareholders’ Equity - Six months ended June 30, 2016 and 2015 | |
(e) | Consolidated Statements of Cash Flows - Six months ended June 30, 2016 and 2015 | |
(f) | ||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 4. Mine Safety Disclosures | ||
June 30, 2016 | December 31, 2015 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 84,647 | $ | 101,120 | |||
Interest-bearing deposits with other banks | 348,232 | 230,300 | |||||
Federal Reserve Bank and Federal Home Loan Bank stock | 59,854 | 62,216 | |||||
Loans held for sale | 34,330 | 16,886 | |||||
Available for sale investment securities | 2,529,724 | 2,484,773 | |||||
Loans, net of unearned income | 14,155,159 | 13,838,602 | |||||
Less: Allowance for loan losses | (162,546 | ) | (169,054 | ) | |||
Net Loans | 13,992,613 | 13,669,548 | |||||
Premises and equipment | 228,861 | 225,535 | |||||
Accrued interest receivable | 43,316 | 42,767 | |||||
Goodwill and intangible assets | 531,556 | 531,556 | |||||
Other assets | 626,902 | 550,017 | |||||
Total Assets | $ | 18,480,035 | $ | 17,914,718 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 4,125,375 | $ | 3,948,114 | |||
Interest-bearing | 10,167,189 | 10,184,203 | |||||
Total Deposits | 14,292,564 | 14,132,317 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 449,184 | 197,235 | |||||
Other short-term borrowings | 273,030 | 300,428 | |||||
Total Short-Term Borrowings | 722,214 | 497,663 | |||||
Accrued interest payable | 8,336 | 10,724 | |||||
Other liabilities | 384,372 | 282,578 | |||||
Federal Home Loan Bank advances and long-term debt | 965,552 | 949,542 | |||||
Total Liabilities | 16,373,038 | 15,872,824 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 219.0 million shares issued in 2016 and 218.9 million shares issued in 2015 | 547,530 | 547,141 | |||||
Additional paid-in capital | 1,455,351 | 1,450,690 | |||||
Retained earnings | 686,635 | 641,588 | |||||
Accumulated other comprehensive income (loss) | 7,689 | (22,017 | ) | ||||
Treasury stock, at cost, 45.9 million shares in 2016 and 44.7 million shares in 2015 | (590,208 | ) | (575,508 | ) | |||
Total Shareholders’ Equity | 2,106,997 | 2,041,894 | |||||
Total Liabilities and Shareholders’ Equity | $ | 18,480,035 | $ | 17,914,718 | |||
See Notes to Consolidated Financial Statements |
(in thousands, except per-share data) | Three months ended June 30 | Six months ended June 30 | |||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 134,643 | $ | 129,910 | $ | 268,722 | $ | 259,687 | |||||||
Investment securities: | |||||||||||||||
Taxable | 11,159 | 10,944 | 23,162 | 22,226 | |||||||||||
Tax-exempt | 2,320 | 1,881 | 4,360 | 3,968 | |||||||||||
Dividends | 135 | 296 | 295 | 644 | |||||||||||
Loans held for sale | 188 | 265 | 319 | 438 | |||||||||||
Other interest income | 864 | 933 | 1,762 | 3,038 | |||||||||||
Total Interest Income | 149,309 | 144,229 | 298,620 | 290,001 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 10,887 | 10,053 | 21,614 | 19,876 | |||||||||||
Short-term borrowings | 217 | 103 | 485 | 180 | |||||||||||
Long-term debt | 9,289 | 11,153 | 18,551 | 23,444 | |||||||||||
Total Interest Expense | 20,393 | 21,309 | 40,650 | 43,500 | |||||||||||
Net Interest Income | 128,916 | 122,920 | 257,970 | 246,501 | |||||||||||
Provision for credit losses | 2,511 | 2,200 | 4,041 | (1,500 | ) | ||||||||||
Net Interest Income After Provision for Credit Losses | 126,405 | 120,720 | 253,929 | 248,001 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Other service charges and fees | 12,983 | 10,988 | 23,733 | 20,351 | |||||||||||
Service charges on deposit accounts | 12,896 | 12,637 | 25,454 | 24,206 | |||||||||||
Investment management and trust services | 11,247 | 11,011 | 22,235 | 21,900 | |||||||||||
Mortgage banking income | 3,897 | 5,339 | 7,927 | 10,027 | |||||||||||
Investment securities gains, net | 76 | 2,415 | 1,023 | 6,560 | |||||||||||
Other | 5,038 | 4,099 | 8,902 | 8,182 | |||||||||||
Total Non-Interest Income | 46,137 | 46,489 | 89,274 | 91,226 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 70,029 | 65,067 | 139,401 | 130,057 | |||||||||||
Net occupancy expense | 11,811 | 11,809 | 24,031 | 25,501 | |||||||||||
Other outside services | 5,508 | 8,125 | 11,564 | 13,875 | |||||||||||
Data processing | 5,476 | 4,894 | 10,876 | 9,662 | |||||||||||
Software | 3,953 | 3,376 | 7,874 | 6,694 | |||||||||||
Professional fees | 3,353 | 2,731 | 5,686 | 5,602 | |||||||||||
FDIC insurance expense | 2,960 | 2,885 | 5,909 | 5,707 | |||||||||||
Equipment expense | 2,872 | 3,335 | 6,243 | 7,293 | |||||||||||
Supplies and postage | 2,706 | 2,726 | 5,285 | 5,095 | |||||||||||
Marketing | 1,916 | 2,235 | 3,540 | 3,468 | |||||||||||
Telecommunications | 1,459 | 1,617 | 2,947 | 3,333 | |||||||||||
Operating risk loss | 986 | 674 | 1,526 | 1,501 | |||||||||||
Other real estate owned and repossession expense | 365 | 129 | 1,003 | 1,491 | |||||||||||
Intangible amortization | — | 106 | — | 236 | |||||||||||
Other | 8,243 | 8,645 | 16,165 | 17,317 | |||||||||||
Total Non-Interest Expense | 121,637 | 118,354 | 242,050 | 236,832 | |||||||||||
Income Before Income Taxes | 50,905 | 48,855 | 101,153 | 102,395 | |||||||||||
Income taxes | 11,155 | 12,175 | 23,146 | 25,679 | |||||||||||
Net Income | $ | 39,750 | $ | 36,680 | $ | 78,007 | $ | 76,716 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.23 | $ | 0.21 | $ | 0.45 | $ | 0.43 | |||||||
Net Income (Diluted) | 0.23 | 0.21 | 0.45 | 0.43 | |||||||||||
Cash Dividends | 0.10 | 0.09 | 0.19 | 0.18 | |||||||||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Income | $ | 39,750 | $ | 36,680 | $ | 78,007 | $ | 76,716 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on securities | 12,839 | (12,008 | ) | 29,865 | (2,016 | ) | |||||||||
Reclassification adjustment for securities gains included in net income | (49 | ) | (1,569 | ) | (665 | ) | (4,264 | ) | |||||||
Non-credit related unrealized gain on other-than-temporarily impaired debt securities | — | — | — | 125 | |||||||||||
Amortization of unrealized loss on derivative financial instruments | 4 | 34 | 8 | 68 | |||||||||||
Amortization of net unrecognized pension and postretirement items | 32 | 466 | 498 | 932 | |||||||||||
Other Comprehensive Income (Loss) | 12,826 | (13,077 | ) | 29,706 | (5,155 | ) | |||||||||
Total Comprehensive Income | $ | 52,576 | $ | 23,603 | $ | 107,713 | $ | 71,561 | |||||||
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 | 78,007 | 78,007 | |||||||||||||||||||||||||
Other comprehensive income | 29,706 | 29,706 | |||||||||||||||||||||||||
Stock issued, including related tax benefits | 273 | 389 | 1,405 | 1,554 | 3,348 | ||||||||||||||||||||||
Stock-based compensation awards | 3,256 | 3,256 | |||||||||||||||||||||||||
Acquisition of treasury stock | (1,310 | ) | (16,254 | ) | (16,254 | ) | |||||||||||||||||||||
Common stock cash dividends - $0.19 per share | (32,960 | ) | (32,960 | ) | |||||||||||||||||||||||
Balance at June 30, 2016 | 173,139 | $ | 547,530 | $ | 1,455,351 | $ | 686,635 | $ | 7,689 | $ | (590,208 | ) | $ | 2,106,997 | |||||||||||||
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 | ||||||||||||
See Notes to Consolidated Financial Statements |
Six months ended June 30 | |||||||
2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 78,007 | $ | 76,716 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 4,041 | (1,500 | ) | ||||
Depreciation and amortization of premises and equipment | 13,804 | 13,920 | |||||
Net amortization of investment securities premiums | 4,647 | 3,288 | |||||
Investment securities gains, net | (1,023 | ) | (6,560 | ) | |||
Gain on sales of mortgage loans held for sale | (7,110 | ) | (7,961 | ) | |||
Proceeds from sales of mortgage loans held for sale | 304,516 | 406,703 | |||||
Originations of mortgage loans held for sale | (314,850 | ) | (415,200 | ) | |||
Amortization of intangible assets | — | 236 | |||||
Amortization of issuance costs on long-term debt | 193 | 279 | |||||
Stock-based compensation | 3,256 | 2,838 | |||||
Excess tax benefits from stock-based compensation | (28 | ) | (63 | ) | |||
(Increase) decrease in accrued interest receivable | (549 | ) | 625 | ||||
(Increase) decrease in other assets | (18,268 | ) | 10,181 | ||||
Decrease in accrued interest payable | (2,388 | ) | (2,873 | ) | |||
Increase (decrease) in other liabilities | 9,866 | (3,322 | ) | ||||
Total adjustments | (3,893 | ) | 591 | ||||
Net cash provided by operating activities | 74,114 | 77,307 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 84,972 | 18,815 | |||||
Proceeds from maturities of securities available for sale | 282,832 | 205,620 | |||||
Purchase of securities available for sale | (355,220 | ) | (346,322 | ) | |||
(Increase) decrease in short-term investments | (115,570 | ) | 35,759 | ||||
Net increase in loans | (326,902 | ) | (147,492 | ) | |||
Net purchases of premises and equipment | (17,130 | ) | (14,687 | ) | |||
Net cash used in investing activities | (447,018 | ) | (248,307 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings deposits | 202,552 | 205,901 | |||||
Net decrease in time deposits | (42,305 | ) | (67,698 | ) | |||
Increase in short-term borrowings | 224,551 | 79,316 | |||||
Additions to long-term debt | 16,000 | 148,099 | |||||
Repayments of long-term debt | (183 | ) | (155,150 | ) | |||
Net proceeds from issuance of common stock | 3,320 | 4,632 | |||||
Excess tax benefits from stock-based compensation | 28 | 63 | |||||
Dividends paid | (31,278 | ) | (30,397 | ) | |||
Acquisition of treasury stock | (16,254 | ) | (19,013 | ) | |||
Net cash provided by financing activities | 356,431 | 165,753 | |||||
Net Decrease in Cash and Due From Banks | (16,473 | ) | (5,247 | ) | |||
Cash and Due From Banks at Beginning of Period | 101,120 | 105,702 | |||||
Cash and Due From Banks at End of Period | $ | 84,647 | $ | 100,455 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 43,038 | $ | 46,373 | |||
Income taxes | 9,087 | 11,051 | |||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 173,394 | 176,433 | 173,363 | 177,446 | |||||||
Impact of common stock equivalents | 924 | 1,098 | 1,004 | 1,042 | |||||||
Weighted average shares outstanding (diluted) | 174,318 | 177,531 | 174,367 | 178,488 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three months ended June 30, 2016 | |||||||||||
Unrealized gain on securities | $ | 19,753 | $ | (6,914 | ) | $ | 12,839 | ||||
Reclassification adjustment for securities gains included in net income (1) | (76 | ) | 27 | (49 | ) | ||||||
Amortization of unrealized loss on derivative financial instruments (2) | 6 | (2 | ) | 4 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 49 | (17 | ) | 32 | |||||||
Total Other Comprehensive Income | $ | 19,732 | $ | (6,906 | ) | $ | 12,826 | ||||
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 | ) | ||||||
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 Loss | $ | (20,118 | ) | $ | 7,041 | $ | (13,077 | ) | |||
Six months ended June 30, 2016 | |||||||||||
Unrealized gain on securities | $ | 45,946 | $ | (16,081 | ) | $ | 29,865 | ||||
Reclassification adjustment for securities gains included in net income (1) | (1,023 | ) | 358 | (665 | ) | ||||||
Amortization of unrealized loss on derivative financial instruments (2) | 12 | (4 | ) | 8 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 766 | (268 | ) | 498 | |||||||
Total Other Comprehensive Income | $ | 45,701 | $ | (15,995 | ) | $ | 29,706 | ||||
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 on other-than-temporarily impaired debt securities | 192 | (67 | ) | 125 | |||||||
Amortization of unrealized loss on derivative financial instruments (2) | 104 | (36 | ) | 68 | |||||||
Amortization of net unrecognized pension and postretirement items (3) | 1,434 | (502 | ) | 932 | |||||||
Total Other Comprehensive Loss | $ | (7,931 | ) | $ | 2,776 | $ | (5,155 | ) |
(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 June 30, 2016 | |||||||||||||||||||
Balance at March 31, 2016 | $ | 9,911 | $ | 458 | $ | (11 | ) | $ | (15,495 | ) | $ | (5,137 | ) | ||||||
Other comprehensive income before reclassifications | 12,839 | — | — | — | 12,839 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (49 | ) | — | 4 | 32 | (13 | ) | ||||||||||||
Balance at June 30, 2016 | $ | 22,701 | $ | 458 | $ | (7 | ) | $ | (15,463 | ) | $ | 7,689 | |||||||
Three months ended June 30, 2015 | |||||||||||||||||||
Balance at March 31, 2015 | $ | 14,311 | $ | 440 | $ | (2,512 | ) | $ | (22,039 | ) | $ | (9,800 | ) | ||||||
Other comprehensive income 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 | ) | ||||||
Six months ended June 30, 2016 | |||||||||||||||||||
Balance at December 31, 2015 | $ | (6,499 | ) | $ | 458 | $ | (15 | ) | $ | (15,961 | ) | $ | (22,017 | ) | |||||
Other comprehensive income before reclassifications | 29,865 | — | — | — | 29,865 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (665 | ) | — | 8 | 498 | (159 | ) | ||||||||||||
Balance at June 30, 2016 | $ | 22,701 | $ | 458 | $ | (7 | ) | $ | (15,463 | ) | $ | 7,689 | |||||||
Six months ended June 30, 2015 | |||||||||||||||||||
Balance at December 31, 2014 | $ | 5,980 | $ | 1,349 | $ | (2,546 | ) | $ | (22,505 | ) | $ | (17,722 | ) | ||||||
Other comprehensive income 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 | ) |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
June 30, 2016 | |||||||||||||||
U.S. Government sponsored agency securities | $ | 143 | $ | 3 | $ | — | $ | 146 | |||||||
State and municipal securities | 333,246 | 12,101 | — | 345,347 | |||||||||||
Corporate debt securities | 95,419 | 3,001 | (6,873 | ) | 91,547 | ||||||||||
Collateralized mortgage obligations | 701,853 | 5,951 | (1,458 | ) | 706,346 | ||||||||||
Mortgage-backed securities | 1,242,267 | 25,501 | (5 | ) | 1,267,763 | ||||||||||
Auction rate securities | 106,949 | — | (9,063 | ) | 97,886 | ||||||||||
Total debt securities | 2,479,877 | 46,557 | (17,399 | ) | 2,509,035 | ||||||||||
Equity securities | 14,210 | 6,493 | (14 | ) | 20,689 | ||||||||||
Total | $ | 2,494,087 | $ | 53,050 | $ | (17,413 | ) | $ | 2,529,724 |
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 | $ | 55,965 | $ | 56,628 | ||||
Due from one year to five years | 44,833 | 46,408 | ||||||
Due from five years to ten years | 94,787 | 97,933 | ||||||
Due after ten years | 340,172 | 333,957 | ||||||
535,757 | 534,926 | |||||||
Collateralized mortgage obligations | 701,853 | 706,346 | ||||||
Mortgage-backed securities | 1,242,267 | 1,267,763 | ||||||
Total debt securities | $ | 2,479,877 | $ | 2,509,035 |
Gross Realized Gains | Gross Realized Losses | Net Gains (Losses) | |||||||||
Three months ended June 30, 2016 | (in thousands) | ||||||||||
Equity securities | $ | 4 | $ | (10 | ) | $ | (6 | ) | |||
Debt securities | 108 | (26 | ) | 82 | |||||||
Total | $ | 112 | $ | (36 | ) | $ | 76 | ||||
Three months ended June 30, 2015 | |||||||||||
Equity securities | $ | 2,290 | $ | — | $ | 2,290 | |||||
Debt securities | 125 | — | 125 | ||||||||
Total | $ | 2,415 | $ | — | $ | 2,415 | |||||
Six months ended June 30, 2016 | |||||||||||
Equity securities | $ | 737 | $ | (10 | ) | $ | 727 | ||||
Debt securities | 322 | (26 | ) | 296 | |||||||
Total | $ | 1,059 | $ | (36 | ) | $ | 1,023 | ||||
Six months ended June 30, 2015 | |||||||||||
Equity securities | $ | 4,260 | $ | — | $ | 4,260 | |||||
Debt securities | 2,300 | — | 2,300 | ||||||||
Total | $ | 6,560 | $ | — | $ | 6,560 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (11,510 | ) | $ | (12,302 | ) | $ | (11,510 | ) | $ | (16,242 | ) | |||
Reductions for securities sold during the period | — | 792 | — | 4,730 | |||||||||||
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 | ) | $ | (11,510 | ) | $ | (11,510 | ) | $ | (11,510 | ) |
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) | |||||||||||||||||||||||
Corporate debt securities | $ | — | $ | — | $ | 32,186 | $ | (6,873 | ) | $ | 32,186 | $ | (6,873 | ) | |||||||||
Collateralized mortgage obligations | 21,695 | (17 | ) | 292,954 | (1,441 | ) | 314,649 | (1,458 | ) | ||||||||||||||
Mortgage-backed securities | — | — | 11,569 | (5 | ) | 11,569 | (5 | ) | |||||||||||||||
Auction rate securities | — | — | 97,886 | (9,063 | ) | 97,886 | (9,063 | ) | |||||||||||||||
Total debt securities | 21,695 | (17 | ) | 434,595 | (17,382 | ) | 456,290 | (17,399 | ) | ||||||||||||||
Equity securities | 681 | (14 | ) | — | — | 681 | (14 | ) | |||||||||||||||
$ | 22,376 | $ | (31 | ) | $ | 434,595 | $ | (17,382 | ) | $ | 456,971 | $ | (17,413 | ) |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 43,697 | $ | 37,461 | $ | 44,648 | $ | 39,106 | |||||||
Subordinated debt | 29,662 | 30,708 | 39,610 | 40,779 | |||||||||||
Senior debt | 18,040 | 18,652 | 12,043 | 12,329 | |||||||||||
Pooled trust preferred securities | — | 706 | — | 706 | |||||||||||
Corporate debt securities issued by financial institutions | 91,399 | 87,527 | 96,301 | 92,920 | |||||||||||
Other corporate debt securities | 4,020 | 4,020 | 4,035 | 4,035 | |||||||||||
Available for sale corporate debt securities | $ | 95,419 | $ | 91,547 | $ | 100,336 | $ | 96,955 |
June 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 5,635,347 | $ | 5,462,330 | |||
Commercial - industrial, financial and agricultural | 4,099,177 | 4,088,962 | |||||
Real-estate - home equity | 1,647,319 | 1,684,439 | |||||
Real-estate - residential mortgage | 1,447,292 | 1,376,160 | |||||
Real-estate - construction | 853,699 | 799,988 | |||||
Consumer | 278,071 | 268,588 | |||||
Leasing and other | 208,602 | 170,914 | |||||
Overdrafts | 3,214 | 2,737 | |||||
Loans, gross of unearned income | 14,172,721 | 13,854,118 | |||||
Unearned income | (17,562 | ) | (15,516 | ) | |||
Loans, net of unearned income | $ | 14,155,159 | $ | 13,838,602 |
June 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 162,546 | $ | 169,054 | |||
Reserve for unfunded lending commitments | 2,562 | 2,358 | |||||
Allowance for credit losses | $ | 165,108 | $ | 171,412 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 166,065 | $ | 179,658 | $ | 171,412 | $ | 185,931 | |||||||
Loans charged off | (10,746 | ) | (15,372 | ) | (21,901 | ) | (21,136 | ) | |||||||
Recoveries of loans previously charged off | 7,278 | 2,967 | 11,556 | 6,158 | |||||||||||
Net loans charged off | (3,468 | ) | (12,405 | ) | (10,345 | ) | (14,978 | ) | |||||||
Provision for credit losses | 2,511 | 2,200 | 4,041 | (1,500 | ) | ||||||||||
Balance at end of period | $ | 165,108 | $ | 169,453 | $ | 165,108 | $ | 169,453 |
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 June 30, 2016 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2016 | $ | 48,311 | $ | 54,333 | $ | 22,524 | $ | 19,928 | $ | 6,282 | $ | 2,324 | $ | 2,974 | $ | 7,165 | $ | 163,841 | |||||||||||||||||
Loans charged off | (1,474 | ) | (4,625 | ) | (1,045 | ) | (340 | ) | (742 | ) | (569 | ) | (1,951 | ) | — | (10,746 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,367 | 2,931 | 350 | 420 | 1,563 | 539 | 108 | — | 7,278 | ||||||||||||||||||||||||||
Net loans charged off | (107 | ) | (1,694 | ) | (695 | ) | 80 | 821 | (30 | ) | (1,843 | ) | — | (3,468 | ) | ||||||||||||||||||||
Provision for loan losses (1) | (4,464 | ) | (884 | ) | 4,341 | 1,218 | (1,331 | ) | 690 | 1,387 | 1,216 | 2,173 | |||||||||||||||||||||||
Balance at June 30, 2016 | $ | 43,740 | $ | 51,755 | $ | 26,170 | $ | 21,226 | $ | 5,772 | $ | 2,984 | $ | 2,518 | $ | 8,381 | $ | 162,546 | |||||||||||||||||
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 | |||||||||||||||||
Six months ended June 30, 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 | (2,056 | ) | (10,813 | ) | (2,586 | ) | (1,408 | ) | (1,068 | ) | (1,576 | ) | (2,394 | ) | — | (21,901 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 2,192 | 5,250 | 688 | 556 | 1,946 | 735 | 189 | — | 11,556 | ||||||||||||||||||||||||||
Net loans charged off | 136 | (5,563 | ) | (1,898 | ) | (852 | ) | 878 | (841 | ) | (2,205 | ) | — | (10,345 | ) | ||||||||||||||||||||
Provision for loan losses (1) | (4,262 | ) | 220 | 5,663 | 703 | (1,635 | ) | 1,240 | 2,255 | (347 | ) | 3,837 | |||||||||||||||||||||||
Balance at June 30, 2016 | $ | 43,740 | $ | 51,755 | $ | 26,170 | $ | 21,226 | $ | 5,772 | $ | 2,984 | $ | 2,518 | $ | 8,381 | $ | 162,546 | |||||||||||||||||
Six months ended June 30, 2015 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 53,493 | $ | 51,378 | $ | 28,271 | $ | 29,072 |