Attached files
file | filename |
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EX-12 - EXHIBIT 12 - PRIVATEBANCORP, INC | pvtb0331201610-qex12.htm |
EX-31.1 - EXHIBIT 31.1 - PRIVATEBANCORP, INC | pvtb0331201610-qex311.htm |
EX-31.2 - EXHIBIT 31.2 - PRIVATEBANCORP, INC | pvtb0331201610-qex312.htm |
EX-32 - EXHIBIT 32 - PRIVATEBANCORP, INC | pvtb0331201610-qex32.htm |
EX-99 - EXHIBIT 99 - PRIVATEBANCORP, INC | pvtb0331201610-qex99.htm |
EX-15 - EXHIBIT 15 - PRIVATEBANCORP, INC | pvtb0331201610-qex15.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________
FORM 10-Q
______________________________________________
(Mark One)
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2016
OR
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to .
Commission File Number 001-34066
______________________________________________
PRIVATEBANCORP, INC.
(Exact name of Registrant as specified in its charter)
______________________________________________
Delaware | 36-3681151 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
120 South LaSalle Street Chicago, Illinois | 60603 | |
(Address of principal executive offices) | (zip code) |
(312) 564-2000
Registrant’s telephone number, including area code
______________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ý | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ý
As of May 4, 2016, there were 79,385,364 shares of the issuer’s voting common stock, no par value, outstanding.
1
PRIVATEBANCORP, INC.
FORM 10-Q
TABLE OF CONTENTS
Page | |
2
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Amounts in thousands, except shares and per share data)
March 31, 2016 | December 31, 2015 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Cash and due from banks | $ | 133,001 | $ | 145,147 | |||
Federal funds sold and interest-bearing deposits in banks | 337,465 | 238,511 | |||||
Loans held-for-sale | 64,029 | 108,798 | |||||
Securities available-for-sale, at fair value (pledged as collateral to creditors: $104.7 million - 2016; $100.2 million - 2015) | 1,831,848 | 1,765,366 | |||||
Securities held-to-maturity, at amortized cost (fair value: $1.5 billion - 2016; $1.4 billion - 2015) | 1,456,760 | 1,355,283 | |||||
Federal Home Loan Bank ("FHLB") stock | 38,113 | 26,613 | |||||
Loans – excluding covered assets, net of unearned fees | 13,457,665 | 13,266,475 | |||||
Allowance for loan losses | (165,356 | ) | (160,736 | ) | |||
Loans, net of allowance for loan losses and unearned fees | 13,292,309 | 13,105,739 | |||||
Covered assets | 25,769 | 26,954 | |||||
Allowance for covered loan losses | (5,526 | ) | (5,712 | ) | |||
Covered assets, net of allowance for covered loan losses | 20,243 | 21,242 | |||||
Other real estate owned, excluding covered assets | 14,806 | 7,273 | |||||
Premises, furniture, and equipment, net | 41,717 | 42,405 | |||||
Accrued interest receivable | 47,349 | 45,482 | |||||
Investment in bank owned life insurance | 57,011 | 56,653 | |||||
Goodwill | 94,041 | 94,041 | |||||
Other intangible assets | 2,890 | 3,430 | |||||
Derivative assets | 66,406 | 40,615 | |||||
Other assets (1) | 169,384 | 196,250 | |||||
Total assets (1) | $ | 17,667,372 | $ | 17,252,848 | |||
Liabilities | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 4,338,177 | $ | 4,355,700 | |||
Interest-bearing | 10,126,692 | 9,989,892 | |||||
Total deposits | 14,464,869 | 14,345,592 | |||||
Short-term borrowings | 602,365 | 372,467 | |||||
Long-term debt (1) | 688,238 | 688,215 | |||||
Accrued interest payable | 6,630 | 7,080 | |||||
Derivative liabilities | 22,498 | 18,229 | |||||
Other liabilities | 114,781 | 122,314 | |||||
Total liabilities (1) | 15,899,381 | 15,553,897 | |||||
Equity | |||||||
Common stock (no par value, $1 stated value; authorized shares: 174 million; issued shares: 79,442,549 - 2016 and 79,099,157 - 2015) | 78,894 | 78,439 | |||||
Treasury stock, at cost (120,239 - 2016 and 2,574 - 2015) | (4,389 | ) | (103 | ) | |||
Additional paid-in capital | 1,078,470 | 1,071,674 | |||||
Retained earnings | 580,418 | 531,682 | |||||
Accumulated other comprehensive income, net of tax | 34,598 | 17,259 | |||||
Total equity | 1,767,991 | 1,698,951 | |||||
Total liabilities and equity (1) | $ | 17,667,372 | $ | 17,252,848 |
See accompanying notes to consolidated financial statements.
(1) | Prior period amounts have been updated to reflect the first quarter 2016 adoption of Accounting Standard Update ("ASU") 2015-03 and ASU 2015-15 related to debt issuance costs. |
3
PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Interest Income | |||||||
Loans, including fees | $ | 140,067 | $ | 122,702 | |||
Federal funds sold and interest-bearing deposits in banks | 340 | 261 | |||||
Securities: | |||||||
Taxable | 15,210 | 13,556 | |||||
Exempt from Federal income taxes | 2,333 | 1,806 | |||||
Other interest income | 150 | 48 | |||||
Total interest income | 158,100 | 138,373 | |||||
Interest Expense | |||||||
Deposits | 13,141 | 11,255 | |||||
Short-term borrowings | 230 | 197 | |||||
Long-term debt | 5,211 | 4,928 | |||||
Total interest expense | 18,582 | 16,380 | |||||
Net interest income | 139,518 | 121,993 | |||||
Provision for loan and covered loan losses | 6,402 | 5,646 | |||||
Net interest income after provision for loan and covered loan losses | 133,116 | 116,347 | |||||
Non-interest Income | |||||||
Asset management | 4,725 | 4,363 | |||||
Mortgage banking | 2,969 | 3,775 | |||||
Capital markets products | 5,199 | 4,172 | |||||
Treasury management | 8,174 | 7,327 | |||||
Loan, letter of credit and commitment fees | 5,200 | 5,106 | |||||
Syndication fees | 5,434 | 2,622 | |||||
Deposit service charges and fees and other income | 1,370 | 5,617 | |||||
Net securities gains | 531 | 534 | |||||
Total non-interest income | 33,602 | 33,516 | |||||
Non-interest Expense | |||||||
Salaries and employee benefits | 58,339 | 52,361 | |||||
Net occupancy and equipment expense | 7,215 | 6,934 | |||||
Technology and related costs | 5,293 | 4,351 | |||||
Marketing | 4,404 | 3,578 | |||||
Professional services | 2,994 | 2,310 | |||||
Outsourced servicing costs | 1,840 | 1,680 | |||||
Net foreclosed property expenses | 566 | 1,328 | |||||
Postage, telephone, and delivery | 840 | 862 | |||||
Insurance | 3,820 | 3,211 | |||||
Loan and collection expense | 1,532 | 2,268 | |||||
Other expenses | 3,650 | 4,262 | |||||
Total non-interest expense | 90,493 | 83,145 | |||||
Income before income taxes | 76,225 | 66,718 | |||||
Income tax provision | 26,673 | 25,234 | |||||
Net income available to common stockholders | $ | 49,552 | $ | 41,484 | |||
Per Common Share Data | |||||||
Basic earnings per share | $ | 0.63 | $ | 0.53 | |||
Diluted earnings per share | $ | 0.62 | $ | 0.52 | |||
Cash dividends declared | $ | 0.01 | $ | 0.01 | |||
Weighted-average common shares outstanding | 78,550 | 77,407 | |||||
Weighted-average diluted common shares outstanding | 79,856 | 78,512 |
See accompanying notes to consolidated financial statements.
Note: Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
4
PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
(Unaudited)
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net income | $ | 49,552 | $ | 41,484 | |||
Other comprehensive income: | |||||||
Available-for-sale securities: | |||||||
Net unrealized gains | 18,930 | 8,590 | |||||
Reclassification of net gains included in net income | (531 | ) | (534 | ) | |||
Income tax expense | (7,079 | ) | (3,148 | ) | |||
Net unrealized gains on available-for-sale securities | 11,320 | 4,908 | |||||
Cash flow hedges: | |||||||
Net unrealized gains | 12,008 | 8,630 | |||||
Reclassification of net gains included in net income | (2,190 | ) | (2,538 | ) | |||
Income tax expense | (3,799 | ) | (2,370 | ) | |||
Net unrealized gains on cash flow hedges | 6,019 | 3,722 | |||||
Other comprehensive income | 17,339 | 8,630 | |||||
Comprehensive income | $ | 66,891 | $ | 50,114 |
See accompanying notes to consolidated financial statements.
5
PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Amounts in thousands, except per share data)
(Unaudited)
Common Shares Out- standing | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumu- lated Other Compre- hensive Income | Total | |||||||||||||||||||||
Balance at January 1, 2015 | 78,178 | $ | 77,211 | $ | (53 | ) | $ | 1,034,048 | $ | 349,556 | $ | 20,917 | $ | 1,481,679 | |||||||||||||
Comprehensive income (1) | — | — | — | — | 41,484 | 8,630 | 50,114 | ||||||||||||||||||||
Cash dividends declared ($0.01 per common share) | — | — | — | — | (793 | ) | — | (793 | ) | ||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||
Nonvested (restricted) stock grants | 248 | — | — | — | — | — | — | ||||||||||||||||||||
Exercise of stock options | 235 | 227 | 316 | 5,015 | — | — | 5,558 | ||||||||||||||||||||
Restricted stock activity | — | 530 | — | (530 | ) | — | — | — | |||||||||||||||||||
Deferred compensation plan | 1 | — | 22 | 124 | — | — | 146 | ||||||||||||||||||||
Excess tax benefit from share-based compensation plans | — | — | — | 3,427 | — | — | 3,427 | ||||||||||||||||||||
Stock repurchased in connection with benefit plans | (168 | ) | — | (5,845 | ) | — | — | — | (5,845 | ) | |||||||||||||||||
Share-based compensation expense | — | — | — | 5,143 | — | — | 5,143 | ||||||||||||||||||||
Balance at March 31, 2015 | 78,494 | $ | 77,968 | $ | (5,560 | ) | $ | 1,047,227 | $ | 390,247 | $ | 29,547 | $ | 1,539,429 | |||||||||||||
Balance at January 1, 2016 | 79,097 | $ | 78,439 | $ | (103 | ) | $ | 1,071,674 | $ | 531,682 | $ | 17,259 | $ | 1,698,951 | |||||||||||||
Comprehensive income (1) | — | — | — | — | 49,552 | 17,339 | 66,891 | ||||||||||||||||||||
Cash dividends declared ($0.01 per common share) | — | — | — | — | (816 | ) | — | (816 | ) | ||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||
Nonvested (restricted) stock grants | 263 | — | — | — | — | — | — | ||||||||||||||||||||
Exercise of stock options | 53 | 44 | 311 | 625 | — | — | 980 | ||||||||||||||||||||
Restricted stock activity | 32 | 408 | — | (408 | ) | — | — | — | |||||||||||||||||||
Deferred compensation plan | 5 | 3 | 66 | 222 | — | — | 291 | ||||||||||||||||||||
Stock repurchased in connection with benefit plans | (128 | ) | — | (4,663 | ) | — | — | — | (4,663 | ) | |||||||||||||||||
Share-based compensation expense | — | — | — | 6,357 | — | — | 6,357 | ||||||||||||||||||||
Balance at March 31, 2016 | 79,322 | $ | 78,894 | $ | (4,389 | ) | $ | 1,078,470 | $ | 580,418 | $ | 34,598 | $ | 1,767,991 |
(1) | Net of taxes and reclassification adjustments. |
See accompanying notes to consolidated financial statements.
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PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Operating Activities | |||||||
Net income | $ | 49,552 | $ | 41,484 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan and covered loan losses | 6,402 | 5,646 | |||||
Provision for unfunded commitments | 595 | 376 | |||||
Depreciation of premises, furniture, and equipment | 2,348 | 2,163 | |||||
Net amortization of premium on securities | 5,099 | 4,044 | |||||
Net securities gains | (531 | ) | (534 | ) | |||
Valuation adjustments on other real estate owned | 588 | 935 | |||||
Net losses on sale of other real estate owned | 24 | 227 | |||||
Net amortization of discount on covered assets | (51 | ) | 141 | ||||
Bank owned life insurance income | (358 | ) | (354 | ) | |||
Net increase (decrease) in deferred loan fees and unamortized discounts and premiums on loans | 3,415 | 1,025 | |||||
Share-based compensation expense | 6,357 | 5,143 | |||||
Excess tax benefit from exercise of stock options and vesting of restricted shares | (2,081 | ) | (3,772 | ) | |||
Provision for deferred income tax expense | 1,300 | 3,694 | |||||
Amortization of other intangibles | 540 | 655 | |||||
Originations and purchases of loans held-for-sale | (101,612 | ) | (166,002 | ) | |||
Proceeds from sales of loans held-for-sale | 149,001 | 195,010 | |||||
Net gains from sales of loans held-for-sale | (2,604 | ) | (3,268 | ) | |||
Gain on sale of branch | — | (4,092 | ) | ||||
Net increase in derivative assets and liabilities | (21,522 | ) | (13,345 | ) | |||
Net increase in accrued interest receivable | (1,867 | ) | (671 | ) | |||
Net (decrease) increase in accrued interest payable | (450 | ) | 56 | ||||
Net decrease in other assets | 24,490 | 49,691 | |||||
Net decrease in other liabilities | (6,031 | ) | (12,285 | ) | |||
Net cash provided by operating activities | 112,604 | 105,967 | |||||
Investing Activities | |||||||
Available-for-sale securities: | |||||||
Proceeds from maturities, prepayments, and calls | 49,584 | 48,884 | |||||
Proceeds from sales | 26,682 | 28,931 | |||||
Purchases | (126,833 | ) | (57,733 | ) | |||
Held-to-maturity securities: | |||||||
Proceeds from maturities, prepayments, and calls | 41,308 | 34,460 | |||||
Purchases | (144,869 | ) | (66,457 | ) | |||
Net (purchase) redemption of FHLB stock | (11,500 | ) | 110 | ||||
Net increase in loans | (205,715 | ) | (282,821 | ) | |||
Net decrease in covered assets | 1,084 | 2,475 | |||||
Proceeds from sale of other real estate owned | 1,149 | 2,781 | |||||
Net purchases of premises, furniture, and equipment | (1,660 | ) | (1,564 | ) | |||
Net cash used in investing activities | (370,770 | ) | (290,934 | ) | |||
Financing Activities | |||||||
Net increase in deposit accounts | 119,277 | 889,544 | |||||
Net (decrease) increase in short-term borrowings, excluding FHLB advances | (102 | ) | 1,403 | ||||
Net increase (decrease) in FHLB advances | 230,000 | (175,000 | ) | ||||
Stock repurchased in connection with benefit plans | (4,663 | ) | (5,845 | ) | |||
Cash dividends paid | (809 | ) | (779 | ) | |||
Proceeds from exercise of stock options and issuance of common stock under benefit plans | 1,271 | 5,704 | |||||
Excess tax benefit from exercise of stock options and vesting of restricted shares | — | 3,772 | |||||
Net cash provided by financing activities | 344,974 | 718,799 | |||||
Net increase in cash and cash equivalents | 86,808 | 533,832 | |||||
Cash and cash equivalents at beginning of year | 383,658 | 424,552 | |||||
Cash and cash equivalents at end of period | $ | 470,466 | $ | 958,384 |
7
PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)
(Amounts in thousands)
(Unaudited)
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid for interest | $ | 19,032 | $ | 16,324 | |||
Cash paid for income taxes | 3,272 | 1,863 | |||||
Non-cash transfers of loans to loans held-for-sale | 28,335 | 50,263 | |||||
Non-cash transfers of loans to other real estate | 9,294 | 2,152 |
See accompanying notes to consolidated financial statements.
8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited consolidated interim financial statements of PrivateBancorp, Inc. (“PrivateBancorp” or the “Company”), a Delaware corporation, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports on Form 10-Q and do not include certain information and footnote disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete annual financial statements. Accordingly, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. GAAP, and (where applicable) in accordance with accounting and reporting guidelines prescribed by bank regulation and authority, and reflect all adjustments that are, in the opinion of management, necessary for the fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other period.
The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiary, The PrivateBank and Trust Company (the “Bank”), after elimination of all significant intercompany accounts and transactions. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates.
In preparing the consolidated financial statements, we have considered the impact of events occurring subsequent to March 31, 2016, for potential recognition or disclosure.
2. RECENT ACCOUNTING PRONOUNCEMENTS
Recently Adopted Accounting Pronouncements
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period - On January 1, 2016, we adopted new accounting guidance issued by the Financial Accounting Standards Board (“FASB”) that clarifies the accounting for a performance target that affects vesting of a share-based payment award and that could be achieved after the requisite service period. The guidance indicates that such a performance target would not be reflected in the estimation of the award’s grant date fair value. Rather, compensation cost for such an award would be recognized over the requisite service period, if it is probable that the performance target will be achieved. The total amount of compensation cost recognized during and after the requisite service period would reflect the number of awards that are expected to vest and would be adjusted to reflect those awards that ultimately vest. The guidance is applied prospectively to awards that are granted or modified after the effective date. The adoption of this guidance did not impact our consolidated financial position or consolidated results of operations.
Amendments to the Consolidation Analysis - On January 1, 2016, we adopted new accounting guidance issued by the FASB that changes certain aspects of the variable interest and voting interest consolidation models. The amendments modify existing guidance on (1) the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, (2) when fee arrangements represent variable interests in a VIE, and (3) the primary beneficiary determination for VIEs. Additionally, the guidance eliminates the presumption that a general partner controls a limited partnership under the voting interest model and exempts reporting entities from consolidating money market funds that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940. The Company elected to apply the guidance through a cumulative effect adjustment as of January 1, 2016. The adoption of this guidance did not impact our consolidated financial position or consolidated results of operations.
Debt Issuance Costs - On January 1, 2016, we adopted new accounting guidance issued by the FASB that clarifies the presentation of debt issuance costs within the balance sheet. This guidance requires that an entity present debt issuance costs related to a recognized debt liability on the balance sheet as a direct deduction from the carrying amount of that debt liability, not as a separate asset. The standard does not affect the current guidance for the recognition and measurement for debt issuance costs. This guidance was applied retrospectively. The adoption of this guidance did not materially impact our consolidated financial position or consolidated results of operations.
9
Improvements to Employee Share-Based Payment Accounting - In March 2016, the FASB issued guidance that amends certain aspects of share-based payment accounting. The new guidance (1) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, and eliminates the accounting for additional paid-in-capital (“APIC”) pools; (2) allows the Company to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting; (3) requires the Company to make an accounting policy election to either recognize forfeitures as they occur or estimate the number of awards expected to be forfeited; (4) requires the Company to present excess tax benefits as an operating activity on the statement of cash flows; and (5) clarifies that the Company must classify cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. Regarding the accounting policy election related to the accounting for forfeitures, the Company has elected to estimate the number of awards expected to be forfeited, consistent with our past practice of estimating forfeitures. As permitted under the new guidance, the Company has elected to early adopt the guidance for the Company’s financial statements that include periods beginning on January 1, 2016. The Company has applied the guidance related to items (1) and (4) prospectively; the guidance related to item (5) retrospectively; and the guidance related to items (2) and (3) using a modified retrospective transition method with a cumulative-effect adjustment to retained earnings. In the first quarter 2016, the Company recognized a $2.1 million tax benefit in the consolidated statements of income within the income tax provision, representing the prospective application of the accounting change described in (1) above. Adoption of all other changes did not have an impact on our consolidated financial position or consolidated results of operations.
Accounting Pronouncements Pending Adoption
Revenue from Contracts with Customers - In May 2014, August 2015 and March 2016, the FASB issued new revenue recognition guidance that will replace most of the existing revenue recognition guidance in U.S. GAAP. All arrangements involving the transfer of goods or services to customers are within the scope of the guidance, except for certain contracts subject to other U.S. GAAP guidance, including lease contracts and rights and obligations related to financial instruments. The standard’s core principle is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also includes new disclosure requirements related to the nature, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for the Company’s financial statements beginning January 1, 2018. The Company may choose to apply the new standard either retrospectively or through a cumulative effect adjustment as of January 1, 2018. The Company is in the process of determining the effect of the new guidance on our financial position and consolidated results of operations, as well as which transition method to use.
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern - In August 2014, the FASB issued guidance that requires management to evaluate whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern. The guidance requires new disclosures to the extent management concludes there is substantial doubt about an entity’s ability to continue as a going concern. The guidance will be effective for the Company’s annual financial statements dated December 31, 2016, as well as interim periods thereafter. The adoption of this guidance is not expected to have a material impact on our financial position or consolidated results of operations.
Recognition and Measurement of Financial Assets and Financial Liabilities - In January 2016, the FASB issued guidance that amends the accounting for certain financial asset and financial liabilities. The guidance will require the Company to (1) measure certain equity investments at fair value with changes in fair value recognized in earnings, (2) record changes in instrument-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income, and (3) assess the realizability of deferred tax assets related to available-for-sale debt securities in combination with the Company’s other deferred tax assets. The standard does not change the guidance for classifying and measuring investments in debt securities and loans. The guidance amends certain disclosure requirements related to financial assets and financial liabilities. The guidance will be effective for the Company’s financial statements that include periods beginning January 1, 2018. Certain provisions of the standard will be applied through a cumulative-effect adjustment as of January 1, 2018, and other provisions will be applied prospectively. The Company is in the process of determining the effect of the new guidance on our financial position and consolidated results of operations.
Leases - In February 2016, the FASB issued guidance that amends the accounting for leases. Under the new guidance, lessees will need to recognize a right-of-use asset and a lease liability for the vast majority of leases. Operating leases will result in straight-line expense, while finance leases will result in a front-loaded expense pattern. Classification will be based on criteria that are largely similar to those applied in current lease accounting. Lessor accounting will remain similar to the current model. Lessors will classify leases as operating, direct financing, or sales-type, consistent with the current model. The new guidance will also require extensive quantitative and qualitative disclosures related to the revenue and expense recognized and expected to be recognized over the lease term, as well as significant judgments made by management. The guidance will be effective for the Company’s financial statements that include periods beginning January 1, 2018, and early adoption is permitted. The new standard
10
must be applied using a modified retrospective transition. The Company is in the process of determining the effect of the new guidance on our financial position and consolidated results of operations.
3. SECURITIES
Securities Portfolio
(Amounts in thousands)
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | Amortized Cost | Gross Unrealized | Fair Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||||||
U.S. Treasury | $ | 347,700 | $ | 3,223 | $ | (18 | ) | $ | 350,905 | $ | 322,922 | $ | 30 | $ | (1,301 | ) | $ | 321,651 | |||||||||||||
U.S. Agencies | 46,390 | 397 | — | 46,787 | 46,504 | — | (406 | ) | 46,098 | ||||||||||||||||||||||
Collateralized mortgage obligations | 90,496 | 3,099 | (10 | ) | 93,585 | 97,260 | 2,784 | (72 | ) | 99,972 | |||||||||||||||||||||
Residential mortgage-backed securities | 856,515 | 21,822 | (272 | ) | 878,065 | 817,006 | 15,870 | (3,021 | ) | 829,855 | |||||||||||||||||||||
State and municipal securities | 449,076 | 13,569 | (139 | ) | 462,506 | 458,402 | 9,779 | (391 | ) | 467,790 | |||||||||||||||||||||
Total | $ | 1,790,177 | $ | 42,110 | $ | (439 | ) | $ | 1,831,848 | $ | 1,742,094 | $ | 28,463 | $ | (5,191 | ) | $ | 1,765,366 | |||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 49,013 | $ | — | $ | (784 | ) | $ | 48,229 | $ | 50,708 | $ | — | $ | (1,729 | ) | $ | 48,979 | |||||||||||||
Residential mortgage-backed securities | 1,154,838 | 14,799 | (315 | ) | 1,169,322 | 1,069,746 | 4,809 | (4,983 | ) | 1,069,572 | |||||||||||||||||||||
Commercial mortgage-backed securities | 247,980 | 4,470 | (215 | ) | 252,235 | 229,722 | 499 | (2,158 | ) | 228,063 | |||||||||||||||||||||
State and municipal securities | 254 | — | — | 254 | 254 | — | — | 254 | |||||||||||||||||||||||
Foreign sovereign debt | 500 | — | — | 500 | 500 | — | — | 500 | |||||||||||||||||||||||
Other securities | 4,175 | — | (72 | ) | 4,103 | 4,353 | — | (480 | ) | 3,873 | |||||||||||||||||||||
Total | $ | 1,456,760 | $ | 19,269 | $ | (1,386 | ) | $ | 1,474,643 | $ | 1,355,283 | $ | 5,308 | $ | (9,350 | ) | $ | 1,351,241 |
The carrying value of securities pledged to secure public deposits, FHLB advances, trust deposits, Federal Reserve Bank (“FRB”) discount window borrowing availability, derivative transactions, and standby letters of credit with counterparty banks and for other purposes as permitted or required by law totaled $437.9 million and $421.9 million at March 31, 2016 and December 31, 2015, respectively. Of total pledged securities, securities pledged to creditors under agreements pursuant to which the collateral may be sold or re-pledged by the secured parties totaled $104.7 million and $100.2 million at March 31, 2016 and December 31, 2015, respectively.
Excluding securities issued or backed by the U.S. Government, its agencies and U.S. Government-sponsored enterprises, there were no investments in securities from one issuer that exceeded 10% of consolidated equity at March 31, 2016 or December 31, 2015.
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The following table presents the fair values of securities with unrealized losses as of March 31, 2016 and December 31, 2015. The securities presented are grouped according to the time periods during which the securities have been in a continuous unrealized loss position.
Securities in Unrealized Loss Position
(Amounts in thousands)
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||
Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||
As of March 31, 2016 | |||||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||||
U.S. Treasury | — | $ | — | $ | — | 1 | $ | 25,856 | $ | (18 | ) | $ | 25,856 | $ | (18 | ) | |||||||||||||
Collateralized mortgage obligations | 2 | 1,249 | (4 | ) | 1 | 1,801 | (6 | ) | 3,050 | (10 | ) | ||||||||||||||||||
Residential mortgage-backed securities | 3 | 70,815 | (51 | ) | 5 | 57,848 | (221 | ) | 128,663 | (272 | ) | ||||||||||||||||||
State and municipal securities | 30 | 17,451 | (128 | ) | 9 | 2,715 | (11 | ) | 20,166 | (139 | ) | ||||||||||||||||||
Total | $ | 89,515 | $ | (183 | ) | $ | 88,220 | $ | (256 | ) | $ | 177,735 | $ | (439 | ) | ||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||||||
Collateralized mortgage obligations | — | $ | — | $ | — | 4 | $ | 48,229 | $ | (784 | ) | $ | 48,229 | $ | (784 | ) | |||||||||||||
Residential mortgage-backed securities | 7 | 70,469 | (48 | ) | 9 | 32,497 | (267 | ) | 102,966 | (315 | ) | ||||||||||||||||||
Commercial mortgage-backed securities | 3 | 10,447 | (119 | ) | 8 | 23,256 | (96 | ) | 33,703 | (215 | ) | ||||||||||||||||||
Other securities | 1 | 4,103 | (72 | ) | — | — | — | 4,103 | (72 | ) | |||||||||||||||||||
Total | $ | 85,019 | $ | (239 | ) | $ | 103,982 | $ | (1,147 | ) | $ | 189,001 | $ | (1,386 | ) | ||||||||||||||
As of December 31, 2015 | |||||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||||
U.S. Treasury | 11 | $ | 271,006 | $ | (1,081 | ) | 1 | $ | 25,773 | $ | (220 | ) | $ | 296,779 | $ | (1,301 | ) | ||||||||||||
U.S. Agencies | 3 | 46,098 | (406 | ) | — | — | — | 46,098 | (406 | ) | |||||||||||||||||||
Collateralized mortgage obligations | 6 | 7,528 | (72 | ) | — | — | — | 7,528 | (72 | ) | |||||||||||||||||||
Residential mortgage-backed securities | 28 | 243,862 | (1,148 | ) | 5 | 75,533 | (1,873 | ) | 319,395 | (3,021 | ) | ||||||||||||||||||
State and municipal securities | 95 | 48,974 | (353 | ) | 12 | 3,485 | (38 | ) | 52,459 | (391 | ) | ||||||||||||||||||
Total | $ | 617,468 | $ | (3,060 | ) | $ | 104,791 | $ | (2,131 | ) | $ | 722,259 | $ | (5,191 | ) | ||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||||||
Collateralized mortgage obligations | — | $ | — | $ | — | 4 | $ | 48,979 | $ | (1,729 | ) | $ | 48,979 | $ | (1,729 | ) | |||||||||||||
Residential mortgage-backed securities | 48 | 512,395 | (3,680 | ) | 10 | 57,340 | (1,303 | ) | 569,735 | (4,983 | ) | ||||||||||||||||||
Commercial mortgage-backed securities | 35 | 128,434 | (1,502 | ) | 12 | 37,350 | (656 | ) | 165,784 | (2,158 | ) | ||||||||||||||||||
Other securities | 1 | 3,873 | (480 | ) | — | — | — | 3,873 | (480 | ) | |||||||||||||||||||
Total | $ | 644,702 | $ | (5,662 | ) | $ | 143,669 | $ | (3,688 | ) | $ | 788,371 | $ | (9,350 | ) |
There were $192.2 million of securities with $1.4 million in an unrealized loss position for greater than 12 months at March 31, 2016. At December 31, 2015, there were $248.5 million of securities with $5.8 million in an unrealized loss position for greater than 12 months. The Company does not consider these unrealized losses to be credit-related. These unrealized losses relate to
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changes in interest rates and market spreads. We do not intend to sell the securities and we do not believe it is more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.
We conduct a quarterly assessment of our investment portfolio to determine whether any securities are other-than-temporarily impaired. During the year ended December 31, 2015, we identified three municipal debt securities from the same issuer totaling $1.1 million, which had credit rating downgrades during the period. We determined that the difference between amortized cost and fair value was other-than-temporary and accordingly, recognized the $466,000 difference as a component of net securities gains in the consolidated statement of income. The securities were sold in January 2016 with no further losses recognized. No other securities were considered other-than-temporary impaired during the first quarter 2016.
The following table presents the remaining contractual maturity of securities as of March 31, 2016, by amortized cost and fair value.
Remaining Contractual Maturity of Securities
(Amounts in thousands)
March 31, 2016 | |||||||||||||||
Available-For-Sale | Held-To-Maturity | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
U.S. Treasury, U.S. Agencies, state and municipal and foreign sovereign debt and other securities: | |||||||||||||||
One year or less | $ | 14,462 | $ | 14,582 | $ | 132 | $ | 132 | |||||||
One year to five years | 564,970 | 572,917 | 622 | 622 | |||||||||||
Five years to ten years | 234,094 | 242,280 | 4,175 | 4,103 | |||||||||||
After ten years | 29,640 | 30,419 | — | — | |||||||||||
All other securities: | |||||||||||||||
Collateralized mortgage obligations | 90,496 | 93,585 | 49,013 | 48,229 | |||||||||||
Residential mortgage-backed securities | 856,515 | 878,065 | 1,154,838 | 1,169,322 | |||||||||||
Commercial mortgage-backed securities | — | — | 247,980 | 252,235 | |||||||||||
Total | $ | 1,790,177 | $ | 1,831,848 | $ | 1,456,760 | $ | 1,474,643 |
The following table presents gains on securities for the three months ended March 31, 2016 and 2015.
Securities Gains
(Amounts in thousands)
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Proceeds from sales | $ | 26,682 | $ | 28,931 | |||
Gross realized gains | $ | 553 | $ | 538 | |||
Gross realized losses | (22 | ) | (4 | ) | |||
Net realized gains | $ | 531 | $ | 534 | |||
Income tax provision on net realized gains | $ | 205 | $ | 210 |
Refer to Note 11 for additional details of the securities available-for-sale portfolio and the related impact of unrealized gains (losses) on other comprehensive income.
All non-marketable Community Reinvestment Act (“CRA”) qualified investments, totaling $53.9 million and $54.2 million at March 31, 2016 and December 31, 2015, respectively, are recorded in other assets on the consolidated statements of financial condition.
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4. LOANS AND CREDIT QUALITY
The following loan portfolio and credit quality disclosures exclude covered loans. Covered loans represent loans acquired through a Federal Deposit Insurance Corporation (“FDIC”) assisted transaction that are subject to a loss share agreement and are presented separately in the consolidated statements of financial condition. Refer to the “Covered Assets” section in this footnote for further information regarding covered loans.
Loan Portfolio
(Amounts in thousands)
March 31, 2016 | December 31, 2015 | ||||||
Commercial and industrial | $ | 6,812,596 | $ | 6,747,389 | |||
Commercial - owner-occupied commercial real estate | 1,865,242 | 1,888,238 | |||||
Total commercial | 8,677,838 | 8,635,627 | |||||
Commercial real estate | 2,705,694 | 2,629,873 | |||||
Commercial real estate - multi-family | 764,292 | 722,637 | |||||
Total commercial real estate | 3,469,986 | 3,352,510 | |||||
Construction | 537,304 | 522,263 | |||||
Residential real estate | 477,263 | 461,412 | |||||
Home equity | 126,096 | 129,317 | |||||
Personal | 169,178 | 165,346 | |||||
Total loans | $ | 13,457,665 | $ | 13,266,475 | |||
Net deferred loan fees and unamortized discount and premium on loans, included as a reduction in total loans | $ | 51,424 | $ | 48,009 | |||
Overdrawn demand deposits included in total loans | $ | 4,299 | $ | 2,654 |
We primarily lend to businesses and consumers in the market areas in which we have physical locations. We seek to diversify our loan portfolio by loan type, industry, and borrower.
Loans Held-For-Sale
(Amounts in thousands)
March 31, 2016 | December 31, 2015 | ||||||
Mortgage loans held-for-sale (1) | $ | 15,568 | $ | 35,704 | |||
Other loans held-for-sale (2) | 48,461 | 73,094 | |||||
Total loans held-for-sale | $ | 64,029 | $ | 108,798 |
(1) | Comprised of residential mortgage loan originations intended to be sold in the secondary market. The Company accounts for these loans under the fair value option. Refer to Note 17 for additional information regarding mortgage loans held-for-sale. |
(2) | Amounts at March 31, 2016 and December 31, 2015, represent commercial, commercial real estate and construction loans carried at the lower of aggregate cost or fair value, including one nonaccrual loan totaling $583,000 and $667,000 at March 31, 2016 and December 31, 2015, respectively. Generally, the Company intends to sell these loans within 30-60 days from the date the intent to sell was established. |
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Carrying Value of Loans Pledged
(Amounts in thousands)
March 31, 2016 | December 31, 2015 | ||||||
Loans pledged to secure outstanding borrowings or availability: | |||||||
FRB discount window borrowings (1) | $ | 430,934 | $ | 440,023 | |||
FHLB advances (2) | 4,096,673 | 4,133,942 | |||||
Total | $ | 4,527,607 | $ | 4,573,965 |
(1) | No borrowings were outstanding at March 31, 2016 and December 31, 2015. |
(2) | Refer to Notes 8 and 9 for additional information regarding FHLB advances. |
Loan Portfolio Aging
(Amounts in thousands)
Delinquent | |||||||||||||||||||||||||||
Current | 30 – 59 Days Past Due | 60 – 89 Days Past Due | 90 Days Past Due and Accruing | Total Accruing Loans | Nonaccrual | Total Loans | |||||||||||||||||||||
As of March 31, 2016 | |||||||||||||||||||||||||||
Commercial | $ | 8,624,851 | $ | 11,496 | $ | 117 | $ | — | $ | 8,636,464 | $ | 41,374 | $ | 8,677,838 | |||||||||||||
Commercial real estate | 3,459,778 | 1,508 | 458 | — | 3,461,744 | 8,242 | 3,469,986 | ||||||||||||||||||||
Construction | 537,304 | — | — | — | 537,304 | — | 537,304 | ||||||||||||||||||||
Residential real estate | 471,645 | 1,718 | — | — | 473,363 | 3,900 | 477,263 | ||||||||||||||||||||
Home equity | 120,136 | 40 | 377 | — | 120,553 | 5,543 | 126,096 | ||||||||||||||||||||
Personal | 169,149 | 10 | 8 | — | 169,167 | 11 | 169,178 | ||||||||||||||||||||
Total loans | $ | 13,382,863 | $ | 14,772 | $ | 960 | $ | — | $ | 13,398,595 | $ | 59,070 | $ | 13,457,665 | |||||||||||||
As of December 31, 2015 | |||||||||||||||||||||||||||
Commercial | $ | 8,595,150 | $ | 6,641 | $ | 1,042 | $ | — | $ | 8,602,833 | $ | 32,794 | $ | 8,635,627 | |||||||||||||
Commercial real estate | 3,343,714 | — | 295 | — | 3,344,009 | 8,501 | 3,352,510 | ||||||||||||||||||||
Construction | 522,263 | — | — | — | 522,263 | — | 522,263 | ||||||||||||||||||||
Residential real estate | 455,764 | 613 | 273 | — | 456,650 | 4,762 | 461,412 | ||||||||||||||||||||
Home equity | 121,580 | 66 | — | — | 121,646 | 7,671 | 129,317 | ||||||||||||||||||||
Personal | 165,188 | 132 | 5 | — | 165,325 | 21 | 165,346 | ||||||||||||||||||||
Total loans | $ | 13,203,659 | $ | 7,452 | $ | 1,615 | $ | — | $ | 13,212,726 | $ | 53,749 | $ | 13,266,475 |
Impaired Loans
Impaired loans consist of nonaccrual loans (which include nonaccrual troubled debt restructurings (“TDRs”)) and loans classified as accruing TDRs. A loan is considered impaired when, based on current information and events, either (i) management believes that it is probable that we will be unable to collect all amounts due (both principal and interest) according to the original contractual terms of the loan agreement, or (ii) it has been classified as a TDR due to providing a concession to a borrower that is inconsistent with the risk profile.
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The following two tables present our recorded investment in impaired loans outstanding by product segment, including our recorded investment in impaired loans, which represents the principal amount outstanding, net of unearned income, deferred loan fees and costs, and any direct principal charge-offs.
Impaired Loans
(Amounts in thousands)
Unpaid Contractual Principal Balance | Recorded Investment With No Specific Reserve | Recorded Investment With Specific Reserve | Total Recorded Investment | Specific Reserve | |||||||||||||||
As of March 31, 2016 | |||||||||||||||||||
Commercial | $ | 70,925 | $ | 43,043 | $ | 25,161 | $ | 68,204 | $ | 4,671 | |||||||||
Commercial real estate | 9,891 | 1,855 | 6,387 | 8,242 | 1,062 | ||||||||||||||
Residential real estate | 4,088 | — | 3,900 | 3,900 | 243 | ||||||||||||||
Home equity | 7,680 | 2,597 | 4,951 | 7,548 | 775 | ||||||||||||||
Personal | 11 | — | 11 | 11 | — | ||||||||||||||
Total impaired loans | $ | 92,595 | $ | 47,495 | $ | 40,410 | $ | 87,905 | $ | 6,751 | |||||||||
As of December 31, 2015 | |||||||||||||||||||
Commercial | $ | 49,912 | $ | 27,300 | $ | 20,020 | $ | 47,320 | $ | 4,458 | |||||||||
Commercial real estate | 14,150 | 2,085 | 6,416 | 8,501 | 1,156 | ||||||||||||||
Residential real estate | 4,950 | — | 4,762 | 4,762 | 539 | ||||||||||||||
Home equity | 10,071 | 2,626 | 7,065 | 9,691 | 1,106 | ||||||||||||||
Personal | 21 | — | 21 | 21 | 3 | ||||||||||||||
Total impaired loans | $ | 79,104 | $ | 32,011 | $ | 38,284 | $ | 70,295 | $ | 7,262 |
Average Recorded Investment and Interest Income Recognized on Impaired Loans (1)
(Amounts in thousands)
Three Months Ended March 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
Commercial | $ | 51,994 | $ | 320 | $ | 53,048 | $ | 184 | |||||||
Commercial real estate | 8,495 | — | 17,897 | 3 | |||||||||||
Residential real estate | 4,129 | — | 4,979 | — | |||||||||||
Home equity | 8,429 | 27 | 13,332 | 22 | |||||||||||
Personal | 45 | — | 356 | — | |||||||||||
Total | $ | 73,092 | $ | 347 | $ | 89,612 | $ | 209 |
(1) | Represents amounts while classified as impaired for the periods presented. |
Credit Quality Indicators
We attempt to mitigate risk through loan structure, collateral, monitoring, and other credit risk management controls. We have adopted an internal risk rating policy in which each loan is rated for credit quality with a numerical rating of 1 through 8. Loans rated 5 and better (1-5 ratings, inclusive) are considered “pass” rated credits that we believe exhibit acceptable financial performance, cash flow, and leverage. Credits rated 6 are performing in accordance with contractual terms but are considered “special mention” as they demonstrate potential weakness that, if left unresolved, may result in deterioration in our credit position and/or the repayment prospects for the credit. Borrowers rated special mention may exhibit adverse operating trends, high leverage, tight liquidity or other credit concerns. Loans rated 7 may be classified as either accruing (“potential problem”) or nonaccrual (“nonperforming”). Potential problem loans, like special mention, are loans that are performing in accordance with contractual
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terms, but for which management has some level of concern (greater than that of special mention loans) about the ability of the borrowers to meet existing repayment terms in future periods. Potential problem loans continue to accrue interest but the ultimate collection of these loans in full is a risk due to the same conditions that characterize a 6-rated credit. These credits may also have somewhat increased risk profiles as a result of the current net worth and/or paying capacity of the obligor or guarantors or a declining value of the collateral pledged. These loans generally have a well-defined weakness that may jeopardize collection of the debt and are characterized by the distinct possibility that we may sustain some loss if the deficiencies are not resolved. Although these loans are generally identified as potential problem loans and require additional attention by management, they may never become nonperforming. Nonperforming loans include nonaccrual loans risk-rated 7 or 8 and have all the weaknesses inherent in a 7-rated potential problem loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently-existing facts, conditions and values, highly questionable and improbable. Special mention, potential problem and nonperforming loans are reviewed, at a minimum, on a quarterly basis, while all other rated credits over a certain dollar threshold, depending on loan type, are reviewed annually or more frequently as the circumstances warrant.
Credit Quality Indicators
(Dollars in thousands)
Special Mention | % of Portfolio Loan Type | Potential Problem Loans | % of Portfolio Loan Type | Non- Performing Loans | % of Portfolio Loan Type | Total Loans | ||||||||||||||||||
As of March 31, 2016 | ||||||||||||||||||||||||
Commercial | $ | 111,224 | 1.3 | $ | 129,776 | 1.5 | $ | 41,374 | 0.5 | $ | 8,677,838 | |||||||||||||
Commercial real estate | 2,600 | 0.1 | 119 | * | 8,242 | 0.2 | 3,469,986 | |||||||||||||||||
Construction | — | — | — | — | — | — | 537,304 | |||||||||||||||||
Residential real estate | 6,275 | 1.3 | 5,621 | 1.2 | 3,900 | 0.8 | 477,263 | |||||||||||||||||
Home equity | 555 | 0.4 | 789 | 0.6 | 5,543 | 4.4 | 126,096 | |||||||||||||||||
Personal | 585 | 0.3 | 17 | * | 11 | * | 169,178 | |||||||||||||||||
Total | $ | 121,239 | 0.9 | $ | 136,322 | 1.0 | $ | 59,070 | 0.4 | $ | 13,457,665 | |||||||||||||
As of December 31, 2015 | ||||||||||||||||||||||||
Commercial | $ | 85,217 | 1.0 | $ | 124,654 | 1.4 | $ | 32,794 | 0.4 | $ | 8,635,627 | |||||||||||||
Commercial real estate | 27,580 | 0.8 | 121 | * | 8,501 | 0.3 | 3,352,510 | |||||||||||||||||
Construction | — | — | — | — | — | — | 522,263 | |||||||||||||||||
Residential real estate | 5,988 |