(Mark One) | |
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
SECURITIES EXCHANGE ACT OF 1934 |
COMMERCE BANCSHARES, INC. | ||
(Exact name of registrant as specified in its charter) |
Missouri | 43-0889454 | |
(State of Incorporation) | (IRS Employer Identification No.) | |
1000 Walnut, Kansas City, MO | 64106 | |
(Address of principal executive offices) | (Zip Code) | |
(816) 234-2000 | ||
(Registrant’s telephone number, including area code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company £ |
Page | |||
INDEX | |||
June 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
(In thousands) | |||||||
ASSETS | |||||||
Loans | $ | 13,091,888 | $ | 12,436,692 | |||
Allowance for loan losses | (153,832 | ) | (151,532 | ) | |||
Net loans | 12,938,056 | 12,285,160 | |||||
Loans held for sale (including $7,094,000 of residential mortgage loans carried at fair value at June 30, 2016 and $4,981,000 at December 31, 2015) | 33,254 | 7,607 | |||||
Investment securities: | |||||||
Available for sale ($583,208,000 pledged at June 30, 2016 and $568,257,000 at | |||||||
December 31, 2015 to secure swap and repurchase agreements) | 9,221,346 | 9,777,004 | |||||
Trading | 30,512 | 11,890 | |||||
Non-marketable | 111,931 | 112,786 | |||||
Total investment securities | 9,363,789 | 9,901,680 | |||||
Federal funds sold and short-term securities purchased under agreements to resell | 13,725 | 14,505 | |||||
Long-term securities purchased under agreements to resell | 825,000 | 875,000 | |||||
Interest earning deposits with banks | 183,223 | 23,803 | |||||
Cash and due from banks | 428,300 | 464,411 | |||||
Land, buildings and equipment, net | 342,237 | 352,581 | |||||
Goodwill | 138,921 | 138,921 | |||||
Other intangible assets, net | 6,561 | 6,669 | |||||
Other assets | 436,627 | 534,625 | |||||
Total assets | $ | 24,709,693 | $ | 24,604,962 | |||
LIABILITIES AND EQUITY | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 6,906,265 | $ | 7,146,398 | |||
Savings, interest checking and money market | 10,978,734 | 10,834,746 | |||||
Time open and C.D.'s of less than $100,000 | 749,160 | 785,191 | |||||
Time open and C.D.'s of $100,000 and over | 1,515,888 | 1,212,518 | |||||
Total deposits | 20,150,047 | 19,978,853 | |||||
Federal funds purchased and securities sold under agreements to repurchase | 1,632,272 | 1,963,552 | |||||
Other borrowings | 103,878 | 103,818 | |||||
Other liabilities | 296,675 | 191,321 | |||||
Total liabilities | 22,182,872 | 22,237,544 | |||||
Commerce Bancshares, Inc. stockholders’ equity: | |||||||
Preferred stock, $1 par value | |||||||
Authorized 2,000,000 shares; issued 6,000 shares | 144,784 | 144,784 | |||||
Common stock, $5 par value | |||||||
Authorized 120,000,000 shares; | |||||||
issued 97,972,433 shares | 489,862 | 489,862 | |||||
Capital surplus | 1,333,995 | 1,337,677 | |||||
Retained earnings | 470,558 | 383,313 | |||||
Treasury stock of 1,244,063 shares at June 30, 2016 | |||||||
and 603,003 shares at December 31, 2015, at cost | (51,707 | ) | (26,116 | ) | |||
Accumulated other comprehensive income | 134,424 | 32,470 | |||||
Total Commerce Bancshares, Inc. stockholders' equity | 2,521,916 | 2,361,990 | |||||
Non-controlling interest | 4,905 | 5,428 | |||||
Total equity | 2,526,821 | 2,367,418 | |||||
Total liabilities and equity | $ | 24,709,693 | $ | 24,604,962 |
For the Three Months Ended June 30 | For the Six Months Ended June 30 | ||||||||||||
(In thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | |||||||||
(Unaudited) | |||||||||||||
INTEREST INCOME | |||||||||||||
Interest and fees on loans | $ | 121,151 | $ | 113,467 | $ | 240,484 | $ | 224,753 | |||||
Interest and fees on loans held for sale | 692 | 39 | 827 | 60 | |||||||||
Interest on investment securities | 54,698 | 53,264 | 103,589 | 91,700 | |||||||||
Interest on federal funds sold and short-term securities purchased under | |||||||||||||
agreements to resell | 19 | 15 | 43 | 24 | |||||||||
Interest on long-term securities purchased under agreements to resell | 3,354 | 3,670 | 6,829 | 6,721 | |||||||||
Interest on deposits with banks | 151 | 122 | 421 | 301 | |||||||||
Total interest income | 180,065 | 170,577 | 352,193 | 323,559 | |||||||||
INTEREST EXPENSE | |||||||||||||
Interest on deposits: | |||||||||||||
Savings, interest checking and money market | 3,548 | 3,287 | 7,032 | 6,595 | |||||||||
Time open and C.D.'s of less than $100,000 | 709 | 818 | 1,451 | 1,698 | |||||||||
Time open and C.D.'s of $100,000 and over | 2,347 | 1,504 | 4,333 | 2,914 | |||||||||
Interest on federal funds purchased and securities sold under | |||||||||||||
agreements to repurchase | 725 | 421 | 1,613 | 788 | |||||||||
Interest on other borrowings | 907 | 890 | 2,160 | 1,769 | |||||||||
Total interest expense | 8,236 | 6,920 | 16,589 | 13,764 | |||||||||
Net interest income | 171,829 | 163,657 | 335,604 | 309,795 | |||||||||
Provision for loan losses | 9,216 | 6,757 | 18,655 | 11,177 | |||||||||
Net interest income after provision for loan losses | 162,613 | 156,900 | 316,949 | 298,618 | |||||||||
NON-INTEREST INCOME | |||||||||||||
Bank card transaction fees | 45,065 | 45,672 | 89,535 | 87,971 | |||||||||
Trust fees | 31,464 | 30,531 | 61,834 | 60,117 | |||||||||
Deposit account charges and other fees | 21,328 | 19,637 | 42,019 | 38,136 | |||||||||
Capital market fees | 2,500 | 2,738 | 5,225 | 5,740 | |||||||||
Consumer brokerage services | 3,491 | 3,507 | 7,000 | 6,843 | |||||||||
Loan fees and sales | 3,196 | 2,183 | 5,706 | 4,272 | |||||||||
Other | 9,526 | 9,967 | 24,275 | 17,730 | |||||||||
Total non-interest income | 116,570 | 114,235 | 235,594 | 220,809 | |||||||||
INVESTMENT SECURITIES GAINS (LOSSES), NET | (744 | ) | 2,143 | (1,739 | ) | 8,178 | |||||||
NON-INTEREST EXPENSE | |||||||||||||
Salaries and employee benefits | 104,808 | 99,655 | 211,667 | 197,729 | |||||||||
Net occupancy | 11,092 | 10,999 | 22,395 | 22,560 | |||||||||
Equipment | 4,781 | 4,679 | 9,415 | 9,382 | |||||||||
Supplies and communication | 5,693 | 5,226 | 12,522 | 10,807 | |||||||||
Data processing and software | 22,770 | 21,045 | 45,669 | 40,551 | |||||||||
Marketing | 4,389 | 4,307 | 8,202 | 8,225 | |||||||||
Deposit insurance | 3,143 | 3,019 | 6,308 | 6,020 | |||||||||
Other | 20,413 | 16,533 | 38,384 | 34,034 | |||||||||
Total non-interest expense | 177,089 | 165,463 | 354,562 | 329,308 | |||||||||
Income before income taxes | 101,350 | 107,815 | 196,242 | 198,297 | |||||||||
Less income taxes | 31,542 | 32,492 | 60,912 | 60,960 | |||||||||
Net income | 69,808 | 75,323 | 135,330 | 137,337 | |||||||||
Less non-controlling interest expense (income) | (85 | ) | 970 | 63 | 1,929 | ||||||||
Net income attributable to Commerce Bancshares, Inc. | 69,893 | 74,353 | 135,267 | 135,408 | |||||||||
Less preferred stock dividends | 2,250 | 2,250 | 4,500 | 4,500 | |||||||||
Net income available to common shareholders | $ | 67,643 | $ | 72,103 | $ | 130,767 | $ | 130,908 | |||||
Net income per common share — basic | $ | .70 | $ | .72 | $ | 1.35 | $ | 1.30 | |||||
Net income per common share — diluted | $ | .70 | $ | .72 | $ | 1.35 | $ | 1.30 |
For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||||||||||||
(In thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||
(Unaudited) | ||||||||||||||
Net income | $ | 69,808 | $ | 75,323 | $ | 135,330 | $ | 137,337 | ||||||
Other comprehensive income (loss): | ||||||||||||||
Net unrealized gains (losses) on securities for which a portion of an other-than-temporary impairment has been recorded in earnings | — | 149 | (398 | ) | 21 | |||||||||
Net unrealized gains (losses) on other securities | 31,139 | (43,483 | ) | 101,634 | (14,137 | ) | ||||||||
Pension loss amortization | 356 | 406 | 718 | 812 | ||||||||||
Other comprehensive income (loss) | 31,495 | (42,928 | ) | 101,954 | (13,304 | ) | ||||||||
Comprehensive income | 101,303 | 32,395 | 237,284 | 124,033 | ||||||||||
Less non-controlling interest expense (income) | (85 | ) | 970 | 63 | 1,929 | |||||||||
Comprehensive income attributable to Commerce Bancshares, Inc. | $ | 101,388 | $ | 31,425 | $ | 237,221 | $ | 122,104 |
Commerce Bancshares, Inc. Shareholders | ||||||||||||||||||||||||
(In thousands, except per share data) | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest | Total | ||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Balance January 1, 2016 | $ | 144,784 | $ | 489,862 | $ | 1,337,677 | $ | 383,313 | $ | (26,116 | ) | $ | 32,470 | $ | 5,428 | $ | 2,367,418 | |||||||
Net income | 135,267 | 63 | 135,330 | |||||||||||||||||||||
Other comprehensive income | 101,954 | 101,954 | ||||||||||||||||||||||
Distributions to non-controlling interest | (586 | ) | (586 | ) | ||||||||||||||||||||
Purchases of treasury stock | (37,462 | ) | (37,462 | ) | ||||||||||||||||||||
Issuance of stock under purchase and equity compensation plans | (11,873 | ) | 11,871 | (2 | ) | |||||||||||||||||||
Excess tax benefit related to equity compensation plans | 1,904 | 1,904 | ||||||||||||||||||||||
Stock-based compensation | 6,287 | 6,287 | ||||||||||||||||||||||
Cash dividends on common stock ($.450 per share) | (43,522 | ) | (43,522 | ) | ||||||||||||||||||||
Cash dividends on preferred stock ($.750 per depositary share) | (4,500 | ) | (4,500 | ) | ||||||||||||||||||||
Balance June 30, 2016 | $ | 144,784 | $ | 489,862 | $ | 1,333,995 | $ | 470,558 | $ | (51,707 | ) | $ | 134,424 | $ | 4,905 | $ | 2,526,821 | |||||||
Balance January 1, 2015 | $ | 144,784 | $ | 484,155 | $ | 1,229,075 | $ | 426,648 | $ | (16,562 | ) | $ | 62,093 | $ | 4,053 | $ | 2,334,246 | |||||||
Net income | 135,408 | 1,929 | 137,337 | |||||||||||||||||||||
Other comprehensive income | (13,304 | ) | (13,304 | ) | ||||||||||||||||||||
Distributions to non-controlling interest | (543 | ) | (543 | ) | ||||||||||||||||||||
Purchases of treasury stock | (3,575 | ) | (3,575 | ) | ||||||||||||||||||||
Accelerated share repurchase agreements | 40,000 | (140,000 | ) | (100,000 | ) | |||||||||||||||||||
Issuance of stock under purchase and equity compensation plans | (14,682 | ) | 16,572 | 1,890 | ||||||||||||||||||||
Excess tax benefit related to equity compensation plans | 1,662 | 1,662 | ||||||||||||||||||||||
Stock-based compensation | 5,252 | 5,252 | ||||||||||||||||||||||
Cash dividends on common stock ($.429 per share) | (43,105 | ) | (43,105 | ) | ||||||||||||||||||||
Cash dividends on preferred stock ($.750 per depositary share) | (4,500 | ) | (4,500 | ) | ||||||||||||||||||||
Balance June 30, 2015 | $ | 144,784 | $ | 484,155 | $ | 1,261,307 | $ | 514,451 | $ | (143,565 | ) | $ | 48,789 | $ | 5,439 | $ | 2,315,360 |
For the Six Months Ended June 30 | ||||||||
(In thousands) | 2016 | 2015 | ||||||
(Unaudited) | ||||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 135,330 | $ | 137,337 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 18,655 | 11,177 | ||||||
Provision for depreciation and amortization | 20,689 | 21,287 | ||||||
Amortization of investment security premiums, net | 16,014 | 17,797 | ||||||
Investment securities (gains) losses, net (A) | 1,739 | (8,178 | ) | |||||
Net gains on sales of loans held for sale | (2,994 | ) | (1,234 | ) | ||||
Originations of loans held for sale | (70,880 | ) | (50,143 | ) | ||||
Proceeds from sales and repayments of loans held for sale | 96,352 | 43,593 | ||||||
Net (increase) decrease in trading securities, excluding unsettled transactions | 81,184 | (1,310 | ) | |||||
Stock-based compensation | 6,287 | 5,252 | ||||||
(Increase) decrease in interest receivable | 60 | (618 | ) | |||||
Increase (decrease) in interest payable | 57 | (201 | ) | |||||
Increase in income taxes payable | 73 | 17,622 | ||||||
Excess tax benefit related to equity compensation plans | (1,904 | ) | (1,662 | ) | ||||
Other changes, net | (9,785 | ) | 2,842 | |||||
Net cash provided by operating activities | 290,877 | 193,561 | ||||||
INVESTING ACTIVITIES: | ||||||||
Proceeds from sales of investment securities (A) | 2,071 | 683,202 | ||||||
Proceeds from maturities/pay downs of investment securities (A) | 1,109,707 | 1,323,921 | ||||||
Purchases of investment securities (A) | (414,154 | ) | (1,710,977 | ) | ||||
Net increase in loans | (721,274 | ) | (477,902 | ) | ||||
Repayments of long-term securities purchased under agreements to resell | 50,000 | — | ||||||
Purchases of land, buildings and equipment | (13,649 | ) | (15,523 | ) | ||||
Sales of land, buildings and equipment | 5,399 | 3,430 | ||||||
Net cash provided by (used in) investing activities | 18,100 | (193,849 | ) | |||||
FINANCING ACTIVITIES: | ||||||||
Net increase (decrease) in non-interest bearing, savings, interest checking and money market deposits | (38,985 | ) | 34,287 | |||||
Net increase (decrease) in time open and C.D.'s | 267,339 | (89,049 | ) | |||||
Net decrease in federal funds purchased and short-term securities sold under agreements to repurchase | (331,280 | ) | (196,475 | ) | ||||
Repayment of long-term borrowings | (840 | ) | (215 | ) | ||||
Additional long-term borrowings | 900 | — | — | |||||
Purchases of treasury stock | (37,462 | ) | (3,575 | ) | ||||
Accelerated share repurchase agreements | — | (100,000 | ) | |||||
Issuance of stock under equity compensation plans | (2 | ) | 1,890 | |||||
Excess tax benefit related to equity compensation plans | 1,904 | 1,662 | ||||||
Cash dividends paid on common stock | (43,522 | ) | (43,105 | ) | ||||
Cash dividends paid on preferred stock | (4,500 | ) | (4,500 | ) | ||||
Net cash used in financing activities | (186,448 | ) | (399,080 | ) | ||||
Increase (decrease) in cash and cash equivalents | 122,529 | (399,368 | ) | |||||
Cash and cash equivalents at beginning of year | 502,719 | 1,100,717 | ||||||
Cash and cash equivalents at June 30 | $ | 625,248 | $ | 701,349 | ||||
(A) Available for sale and non-marketable securities | ||||||||
Income tax payments, net | $ | 59,886 | $ | 42,077 | ||||
Interest paid on deposits and borrowings | $ | 16,532 | $ | 13,964 | ||||
Loans transferred to foreclosed real estate | $ | 861 | $ | 2,133 | ||||
Loans transferred from held for investment to held for sale | $ | 50,360 | $ | — | ||||
Settlement of accelerated stock repurchase agreement and receipt of treasury stock | $ | — | $ | 60,000 |
(In thousands) | June 30, 2016 | December 31, 2015 | ||||||
Commercial: | ||||||||
Business | $ | 4,840,248 | $ | 4,397,893 | ||||
Real estate – construction and land | 819,896 | 624,070 | ||||||
Real estate – business | 2,399,271 | 2,355,544 | ||||||
Personal Banking: | ||||||||
Real estate – personal | 1,927,340 | 1,915,953 | ||||||
Consumer | 1,939,486 | 1,924,365 | ||||||
Revolving home equity | 408,301 | 432,981 | ||||||
Consumer credit card | 753,166 | 779,744 | ||||||
Overdrafts | 4,180 | 6,142 | ||||||
Total loans | $ | 13,091,888 | $ | 12,436,692 |
For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||||||||||||||||||
(In thousands) | Commercial | Personal Banking | Total | Commercial | Personal Banking | Total | ||||||||||||||
Balance at beginning of period | $ | 86,027 | $ | 66,105 | $ | 152,132 | $ | 82,086 | $ | 69,446 | $ | 151,532 | ||||||||
Provision | 1,569 | 7,647 | 9,216 | 5,720 | 12,935 | 18,655 | ||||||||||||||
Deductions: | ||||||||||||||||||||
Loans charged off | 661 | 11,984 | 12,645 | 2,174 | 23,761 | 25,935 | ||||||||||||||
Less recoveries on loans | 2,263 | 2,866 | 5,129 | 3,566 | 6,014 | 9,580 | ||||||||||||||
Net loan charge-offs (recoveries) | (1,602 | ) | 9,118 | 7,516 | (1,392 | ) | 17,747 | 16,355 | ||||||||||||
Balance June 30, 2016 | $ | 89,198 | $ | 64,634 | $ | 153,832 | $ | 89,198 | $ | 64,634 | $ | 153,832 | ||||||||
Balance at beginning of period | $ | 88,906 | $ | 64,626 | $ | 153,532 | $ | 89,622 | $ | 66,910 | $ | 156,532 | ||||||||
Provision | (2,361 | ) | 9,118 | 6,757 | (4,113 | ) | 15,290 | 11,177 | ||||||||||||
Deductions: | ||||||||||||||||||||
Loans charged off | 1,408 | 11,297 | 12,705 | 2,132 | 22,873 | 25,005 | ||||||||||||||
Less recoveries on loans | 1,192 | 2,756 | 3,948 | 2,952 | 5,876 | 8,828 | ||||||||||||||
Net loan charge-offs (recoveries) | 216 | 8,541 | 8,757 | (820 | ) | 16,997 | 16,177 | |||||||||||||
Balance June 30, 2015 | $ | 86,329 | $ | 65,203 | $ | 151,532 | $ | 86,329 | $ | 65,203 | $ | 151,532 |
Impaired Loans | All Other Loans | ||||||||||||
(In thousands) | Allowance for Loan Losses | Loans Outstanding | Allowance for Loan Losses | Loans Outstanding | |||||||||
June 30, 2016 | |||||||||||||
Commercial | $ | 1,571 | $ | 49,695 | $ | 87,627 | $ | 8,009,720 | |||||
Personal Banking | 1,333 | 21,498 | 63,301 | 5,010,975 | |||||||||
Total | $ | 2,904 | $ | 71,193 | $ | 150,928 | $ | 13,020,695 | |||||
December 31, 2015 | |||||||||||||
Commercial | $ | 1,927 | $ | 43,027 | $ | 80,159 | $ | 7,334,480 | |||||
Personal Banking | 1,557 | 22,287 | 67,889 | 5,036,898 | |||||||||
Total | $ | 3,484 | $ | 65,314 | $ | 148,048 | $ | 12,371,378 |
(In thousands) | June 30, 2016 | Dec. 31, 2015 | ||||||
Non-accrual loans | $ | 24,524 | $ | 26,575 | ||||
Restructured loans (accruing) | 46,669 | 38,739 | ||||||
Total impaired loans | $ | 71,193 | $ | 65,314 |
(In thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||
June 30, 2016 | |||||||||
With no related allowance recorded: | |||||||||
Business | $ | 11,777 | $ | 15,217 | $ | — | |||
Real estate – construction and land | 2,160 | 3,462 | — | ||||||
Real estate – business | 3,072 | 3,261 | — | ||||||
Real estate – personal | 352 | 373 | — | ||||||
$ | 17,361 | $ | 22,313 | $ | — | ||||
With an allowance recorded: | |||||||||
Business | $ | 24,905 | $ | 25,639 | $ | 1,059 | |||
Real estate – construction and land | 160 | 162 | 7 | ||||||
Real estate – business | 7,621 | 9,145 | 505 | ||||||
Real estate – personal | 7,419 | 10,310 | 694 | ||||||
Consumer | 5,596 | 5,596 | 68 | ||||||
Revolving home equity | 400 | 447 | 21 | ||||||
Consumer credit card | 7,731 | 7,731 | 550 | ||||||
$ | 53,832 | $ | 59,030 | $ | 2,904 | ||||
Total | $ | 71,193 | $ | 81,343 | $ | 2,904 | |||
December 31, 2015 | |||||||||
With no related allowance recorded: | |||||||||
Business | $ | 9,330 | $ | 11,777 | $ | — | |||
Real estate – construction and land | 2,961 | 8,956 | — | ||||||
Real estate – business | 4,793 | 6,264 | — | ||||||
Real estate – personal | 373 | 373 | — | ||||||
$ | 17,457 | $ | 27,370 | $ | — | ||||
With an allowance recorded: | |||||||||
Business | $ | 18,227 | $ | 20,031 | $ | 1,119 | |||
Real estate – construction and land | 1,227 | 2,804 | 63 | ||||||
Real estate – business | 6,489 | 9,008 | 745 | ||||||
Real estate – personal | 7,667 | 10,530 | 831 | ||||||
Consumer | 5,599 | 5,599 | 63 | ||||||
Revolving home equity | 704 | 852 | 67 | ||||||
Consumer credit card | 7,944 | 7,944 | 596 | ||||||
$ | 47,857 | $ | 56,768 | $ | 3,484 | ||||
Total | $ | 65,314 | $ | 84,138 | $ | 3,484 |
(In thousands) | Commercial | Personal Banking | Total | ||||||
Average Impaired Loans: | |||||||||
For the three months ended June 30, 2016 | |||||||||
Non-accrual loans | $ | 22,098 | $ | 4,461 | $ | 26,559 | |||
Restructured loans (accruing) | 28,775 | 17,297 | 46,072 | ||||||
Total | $ | 50,873 | $ | 21,758 | $ | 72,631 | |||
For the six months ended June 30, 2016 | |||||||||
Non-accrual loans | $ | 21,551 | $ | 4,542 | $ | 26,093 | |||
Restructured loans (accruing) | 27,977 | 17,499 | 45,476 | ||||||
Total | $ | 49,528 | $ | 22,041 | $ | 71,569 | |||
For the three months ended June 30, 2015 | |||||||||
Non-accrual loans | $ | 25,063 | $ | 5,948 | $ | 31,011 | |||
Restructured loans (accruing) | 14,254 | 18,968 | 33,222 | ||||||
Total | $ | 39,317 | $ | 24,916 | $ | 64,233 | |||
For the six months ended June 30, 2015 | |||||||||
Non-accrual loans | $ | 28,155 | $ | 6,102 | $ | 34,257 | |||
Restructured loans (accruing) | 18,245 | 19,176 | 37,421 | ||||||
Total | $ | 46,400 | $ | 25,278 | $ | 71,678 |
For the Three Months Ended June 30 | For the Six Months Ended June 30 | ||||||||||||
(In thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||
Interest income recognized on impaired loans: | |||||||||||||
Business | $ | 236 | $ | 42 | $ | 472 | $ | 84 | |||||
Real estate – construction and land | 3 | 42 | 5 | 84 | |||||||||
Real estate – business | 56 | 15 | 112 | 30 | |||||||||
Real estate – personal | 42 | 48 | 84 | 96 | |||||||||
Consumer | 89 | 85 | 177 | 169 | |||||||||
Revolving home equity | 4 | 6 | 7 | 11 | |||||||||
Consumer credit card | 159 | 179 | 318 | 357 | |||||||||
Total | $ | 589 | $ | 417 | $ | 1,175 | $ | 831 |
(In thousands) | Current or Less Than 30 Days Past Due | 30 – 89 Days Past Due | 90 Days Past Due and Still Accruing | Non-accrual | Total | ||||||||||
June 30, 2016 | |||||||||||||||
Commercial: | |||||||||||||||
Business | $ | 4,815,328 | $ | 11,924 | $ | 280 | $ | 12,716 | $ | 4,840,248 | |||||
Real estate – construction and land | 815,890 | 1,836 | — | 2,170 | 819,896 | ||||||||||
Real estate – business | 2,388,292 | 3,743 | 2,000 | 5,236 | 2,399,271 | ||||||||||
Personal Banking: | |||||||||||||||
Real estate – personal | 1,913,469 | 7,083 | 2,495 | 4,293 | 1,927,340 | ||||||||||
Consumer | 1,919,044 | 17,896 | 2,546 | — | 1,939,486 | ||||||||||
Revolving home equity | 403,831 | 2,993 | 1,368 | 109 | 408,301 | ||||||||||
Consumer credit card | 737,946 | 8,017 | 7,203 | — | 753,166 | ||||||||||
Overdrafts | 3,917 | 263 | — | — | 4,180 | ||||||||||
Total | $ | 12,997,717 | $ | 53,755 | $ | 15,892 | $ | 24,524 | $ | 13,091,888 | |||||
December 31, 2015 | |||||||||||||||
Commercial: | |||||||||||||||
Business | $ | 4,384,149 | $ | 2,306 | $ | 564 | $ | 10,874 | $ | 4,397,893 | |||||
Real estate – construction and land | 617,838 | 3,142 | — | 3,090 | 624,070 | ||||||||||
Real estate – business | 2,340,919 | 6,762 | — | 7,863 | 2,355,544 | ||||||||||
Personal Banking: | |||||||||||||||
Real estate – personal | 1,901,330 | 7,117 | 3,081 | 4,425 | 1,915,953 | ||||||||||
Consumer | 1,903,389 | 18,273 | 2,703 | — | 1,924,365 | ||||||||||
Revolving home equity | 427,998 | 2,641 | 2,019 | 323 | 432,981 | ||||||||||
Consumer credit card | 762,750 | 8,894 | 8,100 | — | 779,744 | ||||||||||
Overdrafts | 5,834 | 308 | — | — | 6,142 | ||||||||||
Total | $ | 12,344,207 | $ | 49,443 | $ | 16,467 | $ | 26,575 | $ | 12,436,692 |
Commercial Loans | ||||||||||||
(In thousands) | Business | Real Estate-Construction | Real Estate- Business | Total | ||||||||
June 30, 2016 | ||||||||||||
Pass | $ | 4,702,346 | $ | 808,815 | $ | 2,318,106 | $ | 7,829,267 | ||||
Special mention | 66,786 | 8,561 | 24,770 | 100,117 | ||||||||
Substandard | 58,400 | 350 | 51,159 | 109,909 | ||||||||
Non-accrual | 12,716 | 2,170 | 5,236 | 20,122 | ||||||||
Total | $ | 4,840,248 | $ | 819,896 | $ | 2,399,271 | $ | 8,059,415 | ||||
December 31, 2015 | ||||||||||||
Pass | $ | 4,278,857 | $ | 618,788 | $ | 2,281,565 | $ | 7,179,210 | ||||
Special mention | 49,302 | 1,033 | 15,009 | 65,344 | ||||||||
Substandard | 58,860 | 1,159 | 51,107 | 111,126 | ||||||||
Non-accrual | 10,874 | 3,090 | 7,863 | 21,827 | ||||||||
Total | $ | 4,397,893 | $ | 624,070 | $ | 2,355,544 | $ | 7,377,507 |
Personal Banking Loans | ||||||||
% of Loan Category | ||||||||
Real Estate - Personal | Consumer | Revolving Home Equity | Consumer Credit Card | |||||
June 30, 2016 | ||||||||
FICO score: | ||||||||
Under 600 | 1.5 | % | 4.3 | % | 1.3 | % | 4.0 | % |
600 - 659 | 2.8 | 8.9 | 3.9 | 11.8 | ||||
660 - 719 | 9.6 | 21.6 | 13.4 | 31.4 | ||||
720 - 779 | 24.4 | 26.2 | 28.4 | 28.0 | ||||
780 and over | 61.7 | 39.0 | 53.0 | 24.8 | ||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
December 31, 2015 | ||||||||
FICO score: | ||||||||
Under 600 | 1.5 | % | 4.5 | % | 1.5 | % | 3.9 | % |
600 - 659 | 3.0 | 9.7 | 3.9 | 12.0 | ||||
660 - 719 | 9.1 | 21.8 | 13.6 | 31.7 | ||||
720 - 779 | 25.0 | 26.4 | 28.4 | 27.9 | ||||
780 and over | 61.4 | 37.6 | 52.6 | 24.5 | ||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(In thousands) | June 30, 2016 | Balance 90 days past due at any time during previous 12 months | ||||
Commercial: | ||||||
Business | $ | 35,833 | $ | — | ||
Real estate - construction and land | 1,736 | — | ||||
Real estate - business | 5,457 | — | ||||
Personal Banking: | ||||||
Real estate - personal | 4,823 | 683 | ||||
Consumer | 5,619 | 57 | ||||
Revolving home equity | 291 | 33 | ||||
Consumer credit card | 7,731 | 504 | ||||
Total restructured loans | $ | 61,490 | $ | 1,277 |
(In thousands) | June 30, 2016 | Dec. 31, 2015 | ||||
Available for sale | $ | 9,221,346 | $ | 9,777,004 | ||
Trading | 30,512 | 11,890 | ||||
Non-marketable | 111,931 | 112,786 | ||||
Total investment securities | $ | 9,363,789 | $ | 9,901,680 |
(In thousands) | Amortized Cost | Fair Value | ||||
U.S. government and federal agency obligations: | ||||||
Within 1 year | $ | 59,365 | $ | 59,898 | ||
After 1 but within 5 years | 499,992 | 517,665 | ||||
After 5 but within 10 years | 105,802 | 109,977 | ||||
After 10 years | 35,642 | 33,379 | ||||
Total U.S. government and federal agency obligations | 700,801 | 720,919 | ||||
Government-sponsored enterprise obligations: | ||||||
Within 1 year | 81,208 | 81,302 | ||||
After 1 but within 5 years | 452,204 | 459,978 | ||||
After 5 but within 10 years | 14,988 | 15,260 | ||||
After 10 years | 5,630 | 5,637 | ||||
Total government-sponsored enterprise obligations | 554,030 | 562,177 | ||||
State and municipal obligations: | ||||||
Within 1 year | 135,577 | 136,305 | ||||
After 1 but within 5 years | 642,897 | 662,010 | ||||
After 5 but within 10 years | 923,727 | 971,348 | ||||
After 10 years | 61,917 | 64,198 | ||||
Total state and municipal obligations | 1,764,118 | 1,833,861 | ||||
Mortgage and asset-backed securities: | ||||||
Agency mortgage-backed securities | 2,509,991 | 2,589,915 | ||||
Non-agency mortgage-backed securities | 814,917 | 831,616 | ||||
Asset-backed securities | 2,293,845 | 2,298,725 | ||||
Total mortgage and asset-backed securities | 5,618,753 | 5,720,256 | ||||
Other debt securities: | ||||||
Within 1 year | 5,996 | 6,052 | ||||
After 1 but within 5 years | 88,771 | 90,755 | ||||
After 5 but within 10 years | 222,737 | 231,176 | ||||
After 10 years | 11,588 | 11,281 | ||||
Total other debt securities | 329,092 | 339,264 | ||||
Equity securities | 5,678 | 44,869 | ||||
Total available for sale investment securities | $ | 8,972,472 | $ | 9,221,346 |
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
June 30, 2016 | ||||||||||||
U.S. government and federal agency obligations | $ | 700,801 | $ | 22,381 | $ | (2,263 | ) | $ | 720,919 | |||
Government-sponsored enterprise obligations | 554,030 | 8,147 | — | 562,177 | ||||||||
State and municipal obligations | 1,764,118 | 70,435 | (692 | ) | 1,833,861 | |||||||
Mortgage and asset-backed securities: | ||||||||||||
Agency mortgage-backed securities | 2,509,991 | 79,952 | (28 | ) | 2,589,915 | |||||||
Non-agency mortgage-backed securities | 814,917 | 16,803 | (104 | ) | 831,616 | |||||||
Asset-backed securities | 2,293,845 | 15,664 | (10,784 | ) | 2,298,725 | |||||||
Total mortgage and asset-backed securities | 5,618,753 | 112,419 | (10,916 | ) | 5,720,256 | |||||||
Other debt securities | 329,092 | 10,546 | (374 | ) | 339,264 | |||||||
Equity securities | 5,678 | 39,191 | — | 44,869 | ||||||||
Total | $ | 8,972,472 | $ | 263,119 | $ | (14,245 | ) | $ | 9,221,346 | |||
December 31, 2015 | ||||||||||||
U.S. government and federal agency obligations | $ | 729,846 | $ | 5,051 | $ | (7,821 | ) | $ | 727,076 | |||
Government-sponsored enterprise obligations | 794,912 | 2,657 | (4,546 | ) | 793,023 | |||||||
State and municipal obligations | 1,706,635 | 37,061 | (1,739 | ) | 1,741,957 | |||||||
Mortgage and asset-backed securities: | ||||||||||||
Agency mortgage-backed securities | 2,579,031 | 47,856 | (8,606 | ) | 2,618,281 | |||||||
Non-agency mortgage-backed securities | 879,186 | 8,596 | (7,819 | ) | 879,963 | |||||||
Asset-backed securities | 2,660,201 | 1,287 | (17,107 | ) | 2,644,381 | |||||||
Total mortgage and asset-backed securities | 6,118,418 | 57,739 | (33,532 | ) | 6,142,625 | |||||||
Other debt securities | 335,925 | 377 | (4,982 | ) | 331,320 | |||||||
Equity securities | 5,678 | 35,325 | — | 41,003 | ||||||||
Total | $ | 9,691,414 | $ | 138,210 | $ | (52,620 | ) | $ | 9,777,004 |
Significant Inputs | Range | ||
Prepayment CPR | 0% | - | 25% |
Projected cumulative default | 17% | - | 52% |
Credit support | 0% | - | 27% |
Loss severity | 18% | - | 63% |
For the Six Months Ended June 30 | ||||||
(In thousands) | 2016 | 2015 | ||||
Cumulative OTTI credit losses at January 1 | $ | 14,129 | $ | 13,734 | ||
Credit losses on debt securities for which impairment was not previously recognized | — | 76 | ||||
Credit losses on debt securities for which impairment was previously recognized | 270 | 407 | ||||
Increase in expected cash flows that are recognized over remaining life of security | (37 | ) | (51 | ) | ||
Cumulative OTTI credit losses at June 30 | $ | 14,362 | $ | 14,166 |
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
(In thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||
June 30, 2016 | ||||||||||||||||||||
U.S. government and federal agency obligations | $ | — | $ | — | $ | 33,379 | $ | 2,263 | $ | 33,379 | $ | 2,263 | ||||||||
State and municipal obligations | 17,375 | 334 | 9,478 | 358 | 26,853 | 692 | ||||||||||||||
Mortgage and asset-backed securities: | ||||||||||||||||||||
Agency mortgage-backed securities | 14,257 | 22 | 2,611 | 6 | 16,868 | 28 | ||||||||||||||
Non-agency mortgage-backed securities | 3,790 | 2 | 57,411 | 102 | 61,201 | 104 | ||||||||||||||
Asset-backed securities | 529,895 | 6,782 | 189,558 | 4,002 | 719,453 | 10,784 | ||||||||||||||
Total mortgage and asset-backed securities | 547,942 | 6,806 | 249,580 | 4,110 | 797,522 | 10,916 | ||||||||||||||
Other debt securities | — | — | 19,685 | 374 | 19,685 | 374 | ||||||||||||||
Total | $ | 565,317 | $ | 7,140 | $ | 312,122 | $ | 7,105 | $ | 877,439 | $ | 14,245 | ||||||||
December 31, 2015 | ||||||||||||||||||||
U.S. government and federal agency obligations | $ | 491,998 | $ | 3,098 | $ | 31,012 | $ | 4,723 | $ | 523,010 | $ | 7,821 | ||||||||
Government-sponsored enterprise obligations | 157,830 | 1,975 | 110,250 | 2,571 | 268,080 | 4,546 | ||||||||||||||
State and municipal obligations | 66,998 | 544 | 31,120 | 1,195 | 98,118 | 1,739 | ||||||||||||||
Mortgage and asset-backed securities: | ||||||||||||||||||||
Agency mortgage-backed securities | 530,035 | 2,989 | 291,902 | 5,617 | 821,937 | 8,606 | ||||||||||||||
Non-agency mortgage-backed securities | 653,603 | 7,059 | 54,536 | 760 | 708,139 | 7,819 | ||||||||||||||
Asset-backed securities | 2,207,922 | 12,492 | 223,311 | 4,615 | 2,431,233 | 17,107 | ||||||||||||||
Total mortgage and asset-backed securities | 3,391,560 | 22,540 | 569,749 | 10,992 | 3,961,309 | 33,532 | ||||||||||||||
Other debt securities | 244,452 | 3,687 | 25,218 | 1,295 | 269,670 | 4,982 | ||||||||||||||
Total | $ | 4,352,838 | $ | 31,844 | $ | 767,349 | $ | 20,776 | $ | 5,120,187 | $ | 52,620 |
For the Six Months Ended June 30 | ||||||
(In thousands) | 2016 | 2015 | ||||
Proceeds from sales of available for sale securities | $ | — | $ | 675,870 | ||