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Name | Symbol | Market | Type |
---|---|---|---|
Valley National Bancorp | NASDAQ:VLYPP | NASDAQ | Preference Share |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.10 | 0.45% | 22.20 | 22.00 | 22.34 | 22.20 | 22.00 | 22.00 | 4,809 | 14:37:50 |
|
☒
|
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
|
New Jersey
|
|
|
22-2477875
|
||
(State or other jurisdiction of
Incorporation or Organization)
|
|
|
(I.R.S. Employer
Identification Number)
|
||
|
|
|
|
|
|
One Penn Plaza
|
|
|
|
||
New York,
|
NY
|
|
|
10119
|
|
(Address of principal executive office)
|
|
|
(Zip code)
|
|
Title of each class
|
Trading Symbols
|
Name of exchange on which registered
|
Common Stock, no par value
|
VLY
|
The Nasdaq Stock Market LLC
|
Non-Cumulative Perpetual Preferred Stock, Series A, no par value
|
VLYPP
|
The Nasdaq Stock Market LLC
|
Non-Cumulative Perpetual Preferred Stock, Series B, no par value
|
VLYPO
|
The Nasdaq Stock Market LLC
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
Non-accelerated filer
|
☐
|
Emerging growth company
|
☐
|
|
|
Page
Number
|
PART I
|
|
|
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
PART II
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
Assets
|
(Unaudited)
|
|
|
||||
Cash and due from banks
|
$
|
286,755
|
|
|
$
|
256,264
|
|
Interest bearing deposits with banks
|
718,260
|
|
|
178,423
|
|
||
Investment securities:
|
|
|
|
||||
Equity securities
|
49,701
|
|
|
41,410
|
|
||
Available for sale debt securities
|
1,749,842
|
|
|
1,566,801
|
|
||
Held to maturity debt securities (net of allowance for credit losses of $1,552 at March 31, 2020)
|
2,315,481
|
|
|
2,336,095
|
|
||
Total investment securities
|
4,115,024
|
|
|
3,944,306
|
|
||
Loans held for sale, at fair value
|
58,868
|
|
|
76,113
|
|
||
Loans
|
30,428,067
|
|
|
29,699,208
|
|
||
Less: Allowance for loan losses
|
(283,342
|
)
|
|
(161,759
|
)
|
||
Net loans
|
30,144,725
|
|
|
29,537,449
|
|
||
Premises and equipment, net
|
332,503
|
|
|
334,533
|
|
||
Lease right of use assets
|
278,080
|
|
|
285,129
|
|
||
Bank owned life insurance
|
542,127
|
|
|
540,169
|
|
||
Accrued interest receivable
|
107,353
|
|
|
105,637
|
|
||
Goodwill
|
1,375,409
|
|
|
1,373,625
|
|
||
Other intangible assets, net
|
82,686
|
|
|
86,772
|
|
||
Other assets
|
1,078,839
|
|
|
717,600
|
|
||
Total Assets
|
$
|
39,120,629
|
|
|
$
|
37,436,020
|
|
Liabilities
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest bearing
|
$
|
6,951,073
|
|
|
$
|
6,710,408
|
|
Interest bearing:
|
|
|
|
||||
Savings, NOW and money market
|
13,498,830
|
|
|
12,757,484
|
|
||
Time
|
8,567,085
|
|
|
9,717,945
|
|
||
Total deposits
|
29,016,988
|
|
|
29,185,837
|
|
||
Short-term borrowings
|
2,095,655
|
|
|
1,093,280
|
|
||
Long-term borrowings
|
2,805,639
|
|
|
2,122,426
|
|
||
Junior subordinated debentures issued to capital trusts
|
55,805
|
|
|
55,718
|
|
||
Lease liabilities
|
303,096
|
|
|
309,849
|
|
||
Accrued expenses and other liabilities
|
422,448
|
|
|
284,722
|
|
||
Total Liabilities
|
34,699,631
|
|
|
33,051,832
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preferred stock, no par value; 50,000,000 authorized shares:
|
|
|
|
||||
Series A (4,600,000 shares issued at March 31, 2020 and December 31, 2019)
|
111,590
|
|
|
111,590
|
|
||
Series B (4,000,000 shares issued at March 31, 2020 and December 31, 2019)
|
98,101
|
|
|
98,101
|
|
||
Common stock (no par value, authorized 650,000,000 shares; issued 403,765,978 shares at March 31, 2020 and 403,322,773 shares at December 31, 2019)
|
141,613
|
|
|
141,423
|
|
||
Surplus
|
3,624,036
|
|
|
3,622,208
|
|
||
Retained earnings
|
452,424
|
|
|
443,559
|
|
||
Accumulated other comprehensive loss
|
(6,566
|
)
|
|
(32,214
|
)
|
||
Treasury stock, at cost (21,830 common shares at March 31, 2020 and 44,383 common shares at December 31, 2019)
|
(200
|
)
|
|
(479
|
)
|
||
Total Shareholders’ Equity
|
4,420,998
|
|
|
4,384,188
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
39,120,629
|
|
|
$
|
37,436,020
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Interest Income
|
|
|
|
||||
Interest and fees on loans
|
$
|
333,068
|
|
|
$
|
288,277
|
|
Interest and dividends on investment securities:
|
|
|
|
||||
Taxable
|
21,933
|
|
|
22,876
|
|
||
Tax-exempt
|
3,926
|
|
|
4,804
|
|
||
Dividends
|
3,401
|
|
|
3,174
|
|
||
Interest on federal funds sold and other short-term investments
|
1,465
|
|
|
1,093
|
|
||
Total interest income
|
363,793
|
|
|
320,224
|
|
||
Interest Expense
|
|
|
|
||||
Interest on deposits:
|
|
|
|
||||
Savings, NOW and money market
|
34,513
|
|
|
36,283
|
|
||
Time
|
42,814
|
|
|
38,171
|
|
||
Interest on short-term borrowings
|
4,707
|
|
|
12,549
|
|
||
Interest on long-term borrowings and junior subordinated debentures
|
16,420
|
|
|
14,573
|
|
||
Total interest expense
|
98,454
|
|
|
101,576
|
|
||
Net Interest Income
|
265,339
|
|
|
218,648
|
|
||
Provision for credit losses for held to maturity securities
|
759
|
|
|
—
|
|
||
Provision for credit losses for loans
|
33,924
|
|
|
8,000
|
|
||
Net Interest Income After Provision for Credit Losses
|
230,656
|
|
|
210,648
|
|
||
Non-Interest Income
|
|
|
|
||||
Trust and investment services
|
3,413
|
|
|
2,904
|
|
||
Insurance commissions
|
1,951
|
|
|
2,525
|
|
||
Service charges on deposit accounts
|
5,680
|
|
|
5,903
|
|
||
Losses on securities transactions, net
|
(40
|
)
|
|
(32
|
)
|
||
Fees from loan servicing
|
2,748
|
|
|
2,430
|
|
||
Gains on sales of loans, net
|
4,550
|
|
|
4,576
|
|
||
Gains on sales of assets, net
|
121
|
|
|
77,720
|
|
||
Bank owned life insurance
|
3,142
|
|
|
1,887
|
|
||
Other
|
19,832
|
|
|
9,760
|
|
||
Total non-interest income
|
41,397
|
|
|
107,673
|
|
||
Non-Interest Expense
|
|
|
|
||||
Salary and employee benefits expense
|
85,728
|
|
|
83,105
|
|
||
Net occupancy and equipment expense
|
32,441
|
|
|
27,886
|
|
||
FDIC insurance assessment
|
3,876
|
|
|
6,121
|
|
||
Amortization of other intangible assets
|
5,470
|
|
|
4,311
|
|
||
Professional and legal fees
|
6,087
|
|
|
5,271
|
|
||
Amortization of tax credit investments
|
3,228
|
|
|
7,173
|
|
||
Telecommunication expense
|
2,287
|
|
|
2,268
|
|
||
Other
|
16,539
|
|
|
11,660
|
|
||
Total non-interest expense
|
155,656
|
|
|
147,795
|
|
||
Income Before Income Taxes
|
116,397
|
|
|
170,526
|
|
||
Income tax expense
|
29,129
|
|
|
57,196
|
|
||
Net Income
|
87,268
|
|
|
113,330
|
|
||
Dividends on preferred stock
|
3,172
|
|
|
3,172
|
|
||
Net Income Available to Common Shareholders
|
$
|
84,096
|
|
|
$
|
110,158
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Earnings Per Common Share:
|
|
|
|
||||
Basic
|
$
|
0.21
|
|
|
$
|
0.33
|
|
Diluted
|
0.21
|
|
|
0.33
|
|
||
Cash Dividends Declared per Common Share
|
0.11
|
|
|
0.11
|
|
||
Weighted Average Number of Common Shares Outstanding:
|
|
|
|
||||
Basic
|
403,519,088
|
|
|
331,601,260
|
|
||
Diluted
|
405,424,123
|
|
|
332,834,466
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Net income
|
$
|
87,268
|
|
|
$
|
113,330
|
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Unrealized gains and losses on available for sale securities
|
|
|
|
||||
Net gains arising during the period
|
26,068
|
|
|
16,267
|
|
||
Less reclassification adjustment for net losses included in net income
|
27
|
|
|
26
|
|
||
Total
|
26,095
|
|
|
16,293
|
|
||
Unrealized gains and losses on derivatives (cash flow hedges)
|
|
|
|
||||
Net losses on derivatives arising during the period
|
(1,057
|
)
|
|
(382
|
)
|
||
Less reclassification adjustment for net losses included in net income
|
438
|
|
|
208
|
|
||
Total
|
(619
|
)
|
|
(174
|
)
|
||
Defined benefit pension plan
|
|
|
|
||||
Amortization of actuarial net loss
|
172
|
|
|
55
|
|
||
Total other comprehensive income
|
25,648
|
|
|
16,174
|
|
||
Total comprehensive income
|
$
|
112,916
|
|
|
$
|
129,504
|
|
|
|
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|||||||||||||||||
|
Preferred Stock
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Retained
Earnings
|
|
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
Shareholders’
Equity
|
|||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||||
Balance - December 31, 2019
|
$
|
209,691
|
|
|
403,278
|
|
|
$
|
141,423
|
|
|
$
|
3,622,208
|
|
|
$
|
443,559
|
|
|
$
|
(32,214
|
)
|
|
$
|
(479
|
)
|
|
$
|
4,384,188
|
|
Adjustment due to the adoption of ASU No. 2016-13
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,187
|
)
|
|
—
|
|
|
—
|
|
|
(28,187
|
)
|
|||||||
Balance - January 1, 2020
|
209,691
|
|
|
403,278
|
|
|
141,423
|
|
|
3,622,208
|
|
|
415,372
|
|
|
(32,214
|
)
|
|
(479
|
)
|
|
4,356,001
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87,268
|
|
|
—
|
|
|
—
|
|
|
87,268
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,648
|
|
|
—
|
|
|
25,648
|
|
|||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock, Series A, $0.39 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|||||||
Preferred stock, Series B, $0.34 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|||||||
Common stock, $0.11 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44,979
|
)
|
|
—
|
|
|
—
|
|
|
(44,979
|
)
|
|||||||
Effect of stock incentive plan, net
|
—
|
|
|
466
|
|
|
190
|
|
|
1,828
|
|
|
(2,065
|
)
|
|
—
|
|
|
279
|
|
|
232
|
|
|||||||
Balance - March 31, 2020
|
$
|
209,691
|
|
|
403,744
|
|
|
$
|
141,613
|
|
|
$
|
3,624,036
|
|
|
$
|
452,424
|
|
|
$
|
(6,566
|
)
|
|
$
|
(200
|
)
|
|
$
|
4,420,998
|
|
|
|
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|||||||||||||||||
|
Preferred Stock
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Retained
Earnings
|
|
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
Shareholders’
Equity
|
|||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||||
Balance - December 31, 2018
|
$
|
209,691
|
|
|
331,431
|
|
|
$
|
116,240
|
|
|
$
|
2,796,499
|
|
|
$
|
299,642
|
|
|
$
|
(69,431
|
)
|
|
$
|
(2,187
|
)
|
|
$
|
3,350,454
|
|
Adjustment due to the adoption of ASU No. 2016-02
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,414
|
|
|
—
|
|
|
—
|
|
|
4,414
|
|
|||||||
Adjustment due to the adoption of ASU No. 2017-08
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,446
|
)
|
|
—
|
|
|
—
|
|
|
(1,446
|
)
|
|||||||
Balance - January 1, 2019
|
209,691
|
|
|
331,431
|
|
|
116,240
|
|
|
2,796,499
|
|
|
302,610
|
|
|
(69,431
|
)
|
|
(2,187
|
)
|
|
3,353,422
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113,330
|
|
|
—
|
|
|
—
|
|
|
113,330
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,174
|
|
|
—
|
|
|
16,174
|
|
|||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock, Series A, $0.39 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|||||||
Preferred stock, Series B, $0.34 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|||||||
Common stock, $0.11 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,686
|
)
|
|
—
|
|
|
—
|
|
|
(36,686
|
)
|
|||||||
Effect of stock incentive plan, net
|
—
|
|
|
302
|
|
|
226
|
|
|
2,935
|
|
|
(99
|
)
|
|
—
|
|
|
(1,251
|
)
|
|
1,811
|
|
|||||||
Balance - March 31, 2019
|
$
|
209,691
|
|
|
331,733
|
|
|
$
|
116,466
|
|
|
$
|
2,799,434
|
|
|
$
|
375,983
|
|
|
$
|
(53,257
|
)
|
|
$
|
(3,438
|
)
|
|
$
|
3,444,879
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
87,268
|
|
|
$
|
113,330
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
14,734
|
|
|
12,798
|
|
||
Stock-based compensation
|
3,684
|
|
|
4,033
|
|
||
Provision for credit losses
|
34,683
|
|
|
8,000
|
|
||
Net amortization of premiums and accretion of discounts on securities and borrowings
|
6,685
|
|
|
7,560
|
|
||
Amortization of other intangible assets
|
5,470
|
|
|
4,311
|
|
||
Losses on securities transactions, net
|
40
|
|
|
32
|
|
||
Proceeds from sales of loans held for sale
|
168,392
|
|
|
96,189
|
|
||
Gains on sales of loans, net
|
(4,550
|
)
|
|
(4,576
|
)
|
||
Originations of loans held for sale
|
(147,981
|
)
|
|
(89,564
|
)
|
||
Gains on sales of assets, net
|
(121
|
)
|
|
(77,720
|
)
|
||
Net change in:
|
|
|
|
||||
Cash surrender value of bank owned life insurance
|
(3,142
|
)
|
|
(1,887
|
)
|
||
Accrued interest receivable
|
(1,716
|
)
|
|
(5,426
|
)
|
||
Other assets
|
(401,849
|
)
|
|
(38,990
|
)
|
||
Accrued expenses and other liabilities
|
122,426
|
|
|
65,212
|
|
||
Net cash (used in) provided by operating activities
|
(115,977
|
)
|
|
93,302
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Net loan originations and purchases
|
(667,555
|
)
|
|
(493,689
|
)
|
||
Equity securities:
|
|
|
|
||||
Purchases
|
(5,214
|
)
|
|
—
|
|
||
Held to maturity debt securities:
|
|
|
|
||||
Purchases
|
(103,192
|
)
|
|
(77,670
|
)
|
||
Maturities, calls and principal repayments
|
118,541
|
|
|
68,165
|
|
||
Available for sale debt securities:
|
|
|
|
||||
Purchases
|
(238,488
|
)
|
|
—
|
|
||
Maturities, calls and principal repayments
|
88,688
|
|
|
45,351
|
|
||
Death benefit proceeds from bank owned life insurance
|
1,184
|
|
|
644
|
|
||
Proceeds from sales of real estate property and equipment
|
6,352
|
|
|
101,916
|
|
||
Proceeds from sales of loans held for investment
|
30,020
|
|
|
99,976
|
|
||
Purchases of real estate property and equipment
|
(9,235
|
)
|
|
(3,817
|
)
|
||
Net cash used in investing activities
|
(778,899
|
)
|
|
(259,124
|
)
|
||
|
|
|
|
VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in thousands)
|
||||||||
|
Three Months Ended March 31,
|
|||||||
|
2020
|
|
2019
|
|||||
Cash flows from financing activities:
|
|
|
|
|||||
Net change in deposits
|
(168,849
|
)
|
|
454,522
|
|
|||
Net change in short-term borrowings
|
1,002,375
|
|
|
(56,338
|
)
|
|||
Proceeds from issuance of long-term borrowings, net
|
725,242
|
|
|
—
|
|
|||
Repayments of long-term borrowings
|
(42,128
|
)
|
|
(155,000
|
)
|
|||
Cash dividends paid to preferred shareholders
|
(3,172
|
)
|
|
—
|
|
|||
Cash dividends paid to common shareholders
|
(44,682
|
)
|
|
(37,053
|
)
|
|||
Purchase of common shares to treasury
|
(2,094
|
)
|
|
(1,367
|
)
|
|||
Common stock issued, net
|
(1,358
|
)
|
|
(855
|
)
|
|||
Other, net
|
(130
|
)
|
|
(119
|
)
|
|||
Net cash provided by financing activities
|
1,465,204
|
|
|
203,790
|
|
|||
Net change in cash and cash equivalents
|
570,328
|
|
|
37,968
|
|
|||
Cash and cash equivalents at beginning of year
|
434,687
|
|
|
428,629
|
|
|||
Cash and cash equivalents at end of period
|
$
|
1,005,015
|
|
|
$
|
466,597
|
|
|
|
|
|
|
|||||
Supplemental disclosures of cash flow information:
|
|
|
|
|||||
Cash payments for:
|
|
|
|
|||||
Interest on deposits and borrowings
|
$
|
104,797
|
|
|
$
|
93,405
|
|
|
Federal and state income taxes
|
4,215
|
|
|
3,204
|
|
|||
Supplemental schedule of non-cash investing activities:
|
|
|
|
|||||
Transfer of loans to other real estate owned
|
$
|
2,750
|
|
|
$
|
730
|
|
|
Transfer of loans to loans held for sale
|
30,020
|
|
|
99,976
|
|
|||
Lease right of use assets obtained in exchange for operating lease liabilities
|
3,121
|
|
|
289,669
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands, except for share data)
|
||||||
Net income available to common shareholders
|
$
|
84,096
|
|
|
$
|
110,158
|
|
Basic weighted average number of common shares outstanding
|
403,519,088
|
|
|
331,601,260
|
|
||
Plus: Common stock equivalents
|
1,905,035
|
|
|
1,233,206
|
|
||
Diluted weighted average number of common shares outstanding
|
405,424,123
|
|
|
332,834,466
|
|
||
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
0.21
|
|
|
$
|
0.33
|
|
Diluted
|
0.21
|
|
|
0.33
|
|
|
Components of Accumulated Other Comprehensive Loss
|
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||||||||
|
Unrealized Gains
and Losses on
Available for Sale
(AFS) Securities
|
|
Unrealized Gains
and Losses on
Derivatives
|
|
Defined
Benefit
Pension Plan
|
|
|||||||||
|
(in thousands)
|
||||||||||||||
Balance at December 31, 2019
|
$
|
5,822
|
|
|
$
|
(3,729
|
)
|
|
$
|
(34,307
|
)
|
|
$
|
(32,214
|
)
|
Other comprehensive income (loss) before reclassification
|
26,068
|
|
|
(1,057
|
)
|
|
—
|
|
|
25,011
|
|
||||
Amounts reclassified from other comprehensive income
|
27
|
|
|
438
|
|
|
172
|
|
|
637
|
|
||||
Other comprehensive income (loss), net
|
26,095
|
|
|
(619
|
)
|
|
172
|
|
|
25,648
|
|
||||
Balance at March 31, 2020
|
$
|
31,917
|
|
|
$
|
(4,348
|
)
|
|
$
|
(34,135
|
)
|
|
$
|
(6,566
|
)
|
|
|
Amounts Reclassified from
Accumulated Other Comprehensive Loss
|
|
|
||||||
|
|
Three Months Ended
March 31, |
|
|
||||||
Components of Accumulated Other Comprehensive Loss
|
|
2020
|
|
2019
|
|
Income Statement Line Item
|
||||
|
|
(in thousands)
|
|
|
||||||
Unrealized losses on AFS securities before tax
|
|
$
|
(40
|
)
|
|
$
|
(32
|
)
|
|
Losses on securities transactions, net
|
Tax effect
|
|
13
|
|
|
6
|
|
|
|
||
Total net of tax
|
|
(27
|
)
|
|
(26
|
)
|
|
|
||
Unrealized losses on derivatives (cash flow hedges) before tax
|
|
(615
|
)
|
|
(290
|
)
|
|
Interest expense
|
||
Tax effect
|
|
177
|
|
|
82
|
|
|
|
||
Total net of tax
|
|
(438
|
)
|
|
(208
|
)
|
|
|
||
Defined benefit pension plan:
|
|
|
|
|
|
|
||||
Amortization of actuarial net loss
|
|
(236
|
)
|
|
(78
|
)
|
|
*
|
||
Tax effect
|
|
64
|
|
|
23
|
|
|
|
||
Total net of tax
|
|
(172
|
)
|
|
(55
|
)
|
|
|
||
Total reclassifications, net of tax
|
|
$
|
(637
|
)
|
|
$
|
(289
|
)
|
|
|
|
*
|
Amortization of net loss is included in the computation of net periodic pension cost recognized within other non-interest expense.
|
•
|
Level 1 - Unadjusted exchange quoted prices in active markets for identical assets or liabilities, or identical liabilities traded as assets that the reporting entity has the ability to access at the measurement date.
|
•
|
Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly (i.e., quoted prices on similar assets) for substantially the full term of the asset or liability.
|
•
|
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
|
|
(1)
|
Excludes equity securities measured at net asset value (NAV).
|
(2)
|
Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $56.4 million and $74.5 million at March 31, 2020 and December 31, 2019, respectively.
|
(3)
|
Derivative financial instruments are included in this category.
|
(4)
|
Excludes purchased credit-impaired loans.
|
|
Fair Value
Hierarchy
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||
|
|
|
(in thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
Level 1
|
|
$
|
286,755
|
|
|
$
|
286,755
|
|
|
$
|
256,264
|
|
|
$
|
256,264
|
|
Interest bearing deposits with banks
|
Level 1
|
|
718,260
|
|
|
718,260
|
|
|
178,423
|
|
|
178,423
|
|
||||
Equity securities (1)
|
N/A
|
|
3,000
|
|
|
3,000
|
|
|
—
|
|
|
—
|
|
||||
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
Level 1
|
|
138,311
|
|
|
148,124
|
|
|
138,352
|
|
|
144,113
|
|
||||
U.S. government agency securities
|
Level 2
|
|
6,794
|
|
|
6,920
|
|
|
7,345
|
|
|
7,362
|
|
||||
Obligations of states and political subdivisions
|
Level 2
|
|
480,698
|
|
|
492,221
|
|
|
500,705
|
|
|
513,607
|
|
||||
Residential mortgage-backed securities
|
Level 2
|
|
1,616,150
|
|
|
1,667,403
|
|
|
1,620,119
|
|
|
1,629,572
|
|
||||
Trust preferred securities
|
Level 2
|
|
37,330
|
|
|
30,133
|
|
|
37,324
|
|
|
31,382
|
|
||||
Corporate and other debt securities
|
Level 2
|
|
37,750
|
|
|
38,137
|
|
|
32,250
|
|
|
32,684
|
|
||||
Total investment securities held to maturity
|
|
|
2,317,033
|
|
|
2,382,938
|
|
|
2,336,095
|
|
|
2,358,720
|
|
||||
Net loans
|
Level 3
|
|
30,144,725
|
|
|
29,927,130
|
|
|
29,537,449
|
|
|
28,964,396
|
|
||||
Accrued interest receivable
|
Level 1
|
|
107,353
|
|
|
107,353
|
|
|
105,637
|
|
|
105,637
|
|
||||
Federal Reserve Bank and Federal Home Loan Bank stock (2)
|
Level 1
|
|
295,420
|
|
|
295,420
|
|
|
214,421
|
|
|
214,421
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits without stated maturities
|
Level 1
|
|
20,449,903
|
|
|
20,449,903
|
|
|
19,467,892
|
|
|
19,467,892
|
|
||||
Deposits with stated maturities
|
Level 2
|
|
8,567,085
|
|
|
8,623,519
|
|
|
9,717,945
|
|
|
9,747,867
|
|
||||
Short-term borrowings
|
Level 2
|
|
2,095,655
|
|
|
1,952,248
|
|
|
1,093,280
|
|
|
1,081,879
|
|
||||
Long-term borrowings
|
Level 2
|
|
2,805,639
|
|
|
3,060,203
|
|
|
2,122,426
|
|
|
2,181,401
|
|
||||
Junior subordinated debentures issued to capital trusts
|
Level 2
|
|
55,805
|
|
|
64,088
|
|
|
55,718
|
|
|
53,889
|
|
||||
Accrued interest payable (3)
|
Level 1
|
|
26,724
|
|
|
26,724
|
|
|
33,066
|
|
|
33,066
|
|
|
(1)
|
Equity securities that are presented at NAV. Valley uses NAV as a practical expedient to record its investment in certain non-publicly traded funds since the shares do not have a readily determinable fair value.
|
(2)
|
Included in other assets.
|
(3)
|
Included in accrued expenses and other liabilities.
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
50,946
|
|
|
$
|
1,732
|
|
|
$
|
—
|
|
|
$
|
52,678
|
|
U.S. government agency securities
|
26,994
|
|
|
545
|
|
|
(33
|
)
|
|
27,506
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
73,982
|
|
|
667
|
|
|
(194
|
)
|
|
74,455
|
|
||||
Municipal bonds
|
86,532
|
|
|
1,052
|
|
|
(84
|
)
|
|
87,500
|
|
||||
Total obligations of states and political subdivisions
|
160,514
|
|
|
1,719
|
|
|
(278
|
)
|
|
161,955
|
|
||||
Residential mortgage-backed securities
|
1,406,084
|
|
|
42,390
|
|
|
(837
|
)
|
|
1,447,637
|
|
||||
Corporate and other debt securities
|
61,243
|
|
|
740
|
|
|
(1,917
|
)
|
|
60,066
|
|
||||
Total investment securities available for sale
|
$
|
1,705,781
|
|
|
$
|
47,126
|
|
|
$
|
(3,065
|
)
|
|
$
|
1,749,842
|
|
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
50,952
|
|
|
$
|
12
|
|
|
$
|
(21
|
)
|
|
$
|
50,943
|
|
U.S. government agency securities
|
28,982
|
|
|
280
|
|
|
(19
|
)
|
|
29,243
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
78,116
|
|
|
540
|
|
|
(83
|
)
|
|
78,573
|
|
||||
Municipal bonds
|
90,662
|
|
|
902
|
|
|
(86
|
)
|
|
91,478
|
|
||||
Total obligations of states and political subdivisions
|
168,778
|
|
|
1,442
|
|
|
(169
|
)
|
|
170,051
|
|
||||
Residential mortgage-backed securities
|
1,248,814
|
|
|
11,234
|
|
|
(5,262
|
)
|
|
1,254,786
|
|
||||
Corporate and other debt securities
|
61,261
|
|
|
628
|
|
|
(111
|
)
|
|
61,778
|
|
||||
Total investment securities available for sale
|
$
|
1,558,787
|
|
|
$
|
13,596
|
|
|
$
|
(5,582
|
)
|
|
$
|
1,566,801
|
|
|
Less than
Twelve Months
|
|
More than
Twelve Months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,682
|
|
|
$
|
(33
|
)
|
|
$
|
1,682
|
|
|
$
|
(33
|
)
|
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and state agencies
|
3,582
|
|
|
(152
|
)
|
|
4,661
|
|
|
(42
|
)
|
|
8,243
|
|
|
(194
|
)
|
||||||
Municipal bonds
|
3,222
|
|
|
(13
|
)
|
|
8,616
|
|
|
(71
|
)
|
|
11,838
|
|
|
(84
|
)
|
||||||
Total obligations of states and political subdivisions
|
6,804
|
|
|
(165
|
)
|
|
13,277
|
|
|
(113
|
)
|
|
20,081
|
|
|
(278
|
)
|
||||||
Residential mortgage-backed securities
|
38,175
|
|
|
(243
|
)
|
|
59,573
|
|
|
(594
|
)
|
|
97,748
|
|
|
(837
|
)
|
||||||
Corporate and other debt securities
|
23,148
|
|
|
(1,917
|
)
|
|
—
|
|
|
—
|
|
|
23,148
|
|
|
(1,917
|
)
|
||||||
Total
|
$
|
68,127
|
|
|
$
|
(2,325
|
)
|
|
$
|
74,532
|
|
|
$
|
(740
|
)
|
|
$
|
142,659
|
|
|
$
|
(3,065
|
)
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
$
|
25,019
|
|
|
$
|
(21
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,019
|
|
|
$
|
(21
|
)
|
U.S. government agency securities
|
—
|
|
|
—
|
|
|
1,783
|
|
|
(19
|
)
|
|
1,783
|
|
|
(19
|
)
|
||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and state agencies
|
18,540
|
|
|
(21
|
)
|
|
8,755
|
|
|
(62
|
)
|
|
27,295
|
|
|
(83
|
)
|
||||||
Municipal bonds
|
—
|
|
|
—
|
|
|
13,177
|
|
|
(86
|
)
|
|
13,177
|
|
|
(86
|
)
|
||||||
Total obligations of states and political subdivisions
|
18,540
|
|
|
(21
|
)
|
|
21,932
|
|
|
(148
|
)
|
|
40,472
|
|
|
(169
|
)
|
||||||
Residential mortgage-backed securities
|
240,412
|
|
|
(1,194
|
)
|
|
282,798
|
|
|
(4,068
|
)
|
|
523,210
|
|
|
(5,262
|
)
|
||||||
Corporate and other debt securities
|
5,139
|
|
|
(111
|
)
|
|
—
|
|
|
—
|
|
|
5,139
|
|
|
(111
|
)
|
||||||
Total
|
$
|
289,110
|
|
|
$
|
(1,347
|
)
|
|
$
|
306,513
|
|
|
$
|
(4,235
|
)
|
|
$
|
595,623
|
|
|
$
|
(5,582
|
)
|
|
March 31, 2020
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
(in thousands)
|
||||||
Due in one year
|
$
|
19,711
|
|
|
$
|
19,754
|
|
Due after one year through five years
|
107,680
|
|
|
108,642
|
|
||
Due after five years through ten years
|
91,929
|
|
|
92,518
|
|
||
Due after ten years
|
80,377
|
|
|
81,291
|
|
||
Residential mortgage-backed securities
|
1,406,084
|
|
|
1,447,637
|
|
||
Total investment securities available for sale
|
$
|
1,705,781
|
|
|
$
|
1,749,842
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
138,311
|
|
|
$
|
9,813
|
|
|
$
|
—
|
|
|
$
|
148,124
|
|
U.S. government agency securities
|
6,794
|
|
|
126
|
|
|
—
|
|
|
6,920
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
289,701
|
|
|
7,189
|
|
|
(577
|
)
|
|
296,313
|
|
||||
Municipal bonds
|
190,997
|
|
|
4,914
|
|
|
(3
|
)
|
|
195,908
|
|
||||
Total obligations of states and political subdivisions
|
480,698
|
|
|
12,103
|
|
|
(580
|
)
|
|
492,221
|
|
||||
Residential mortgage-backed securities
|
1,616,150
|
|
|
51,333
|
|
|
(80
|
)
|
|
1,667,403
|
|
||||
Trust preferred securities
|
37,330
|
|
|
26
|
|
|
(7,223
|
)
|
|
30,133
|
|
||||
Corporate and other debt securities
|
37,750
|
|
|
388
|
|
|
(1
|
)
|
|
38,137
|
|
||||
Total investment securities held to maturity
|
$
|
2,317,033
|
|
|
$
|
73,789
|
|
|
$
|
(7,884
|
)
|
|
$
|
2,382,938
|
|
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
138,352
|
|
|
$
|
5,761
|
|
|
$
|
—
|
|
|
$
|
144,113
|
|
U.S. government agency securities
|
7,345
|
|
|
58
|
|
|
(41
|
)
|
|
7,362
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
297,454
|
|
|
7,745
|
|
|
(529
|
)
|
|
304,670
|
|
||||
Municipal bonds
|
203,251
|
|
|
5,696
|
|
|
(10
|
)
|
|
208,937
|
|
||||
Total obligations of states and political subdivisions
|
500,705
|
|
|
13,441
|
|
|
(539
|
)
|
|
513,607
|
|
||||
Residential mortgage-backed securities
|
1,620,119
|
|
|
14,803
|
|
|
(5,350
|
)
|
|
1,629,572
|
|
||||
Trust preferred securities
|
37,324
|
|
|
39
|
|
|
(5,981
|
)
|
|
31,382
|
|
||||
Corporate and other debt securities
|
32,250
|
|
|
454
|
|
|
(20
|
)
|
|
32,684
|
|
||||
Total investment securities held to maturity
|
$
|
2,336,095
|
|
|
$
|
34,556
|
|
|
$
|
(11,931
|
)
|
|
$
|
2,358,720
|
|
|
Less than
Twelve Months
|
|
More than
Twelve Months
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and state agencies
|
$
|
13,334
|
|
|
$
|
(312
|
)
|
|
$
|
23,323
|
|
|
$
|
(265
|
)
|
|
$
|
36,657
|
|
|
$
|
(577
|
)
|
Municipal bonds
|
814
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
814
|
|
|
(3
|
)
|
||||||
Total obligations of states and political subdivisions
|
14,148
|
|
|
(315
|
)
|
|
23,323
|
|
|
(265
|
)
|
|
37,471
|
|
|
(580
|
)
|
||||||
Residential mortgage-backed securities
|
14,010
|
|
|
(80
|
)
|
|
—
|
|
|
—
|
|
|
14,010
|
|
|
(80
|
)
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
28,753
|
|
|
(7,223
|
)
|
|
28,753
|
|
|
(7,223
|
)
|
||||||
Corporate and other debt securities
|
17,749
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
17,749
|
|
|
(1
|
)
|
||||||
Total
|
$
|
45,907
|
|
|
$
|
(396
|
)
|
|
$
|
52,076
|
|
|
$
|
(7,488
|
)
|
|
$
|
97,983
|
|
|
$
|
(7,884
|
)
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
$
|
5,183
|
|
|
$
|
(41
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,183
|
|
|
$
|
(41
|
)
|
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and state agencies
|
11,178
|
|
|
(55
|
)
|
|
32,397
|
|
|
(474
|
)
|
|
43,575
|
|
|
(529
|
)
|
||||||
Municipal bonds
|
—
|
|
|
—
|
|
|
798
|
|
|
(10
|
)
|
|
798
|
|
|
(10
|
)
|
||||||
Total obligations of states and political subdivisions
|
11,178
|
|
|
(55
|
)
|
|
33,195
|
|
|
(484
|
)
|
|
44,373
|
|
|
(539
|
)
|
||||||
Residential mortgage-backed securities
|
307,885
|
|
|
(1,387
|
)
|
|
254,915
|
|
|
(3,963
|
)
|
|
562,800
|
|
|
(5,350
|
)
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
29,990
|
|
|
(5,981
|
)
|
|
29,990
|
|
|
(5,981
|
)
|
||||||
Corporate and other debt securities
|
—
|
|
|
—
|
|
|
4,980
|
|
|
(20
|
)
|
|
4,980
|
|
|
(20
|
)
|
||||||
Total
|
$
|
324,246
|
|
|
$
|
(1,483
|
)
|
|
$
|
323,080
|
|
|
$
|
(10,448
|
)
|
|
$
|
647,326
|
|
|
$
|
(11,931
|
)
|
|
March 31, 2020
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
(in thousands)
|
||||||
Due in one year
|
$
|
94,100
|
|
|
$
|
95,561
|
|
Due after one year through five years
|
169,651
|
|
|
176,406
|
|
||
Due after five years through ten years
|
213,801
|
|
|
224,212
|
|
||
Due after ten years
|
223,331
|
|
|
219,356
|
|
||
Residential mortgage-backed securities
|
1,616,150
|
|
|
1,667,403
|
|
||
Total investment securities held to maturity
|
$
|
2,317,033
|
|
|
$
|
2,382,938
|
|
|
AAA/AA/A Rated
|
|
BBB rated
|
|
Non-rated
|
|
Total
|
||||||||
|
(in thousands)
|
||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
138,311
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
138,311
|
|
U.S. government agency securities
|
6,794
|
|
|
—
|
|
|
—
|
|
|
6,794
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
244,894
|
|
|
5,704
|
|
|
39,103
|
|
|
289,701
|
|
||||
Municipal bonds
|
190,388
|
|
|
—
|
|
|
609
|
|
|
190,997
|
|
||||
Total obligations of states and political subdivisions
|
435,282
|
|
|
5,704
|
|
|
39,712
|
|
|
480,698
|
|
||||
Residential mortgage-backed securities
|
1,616,150
|
|
|
—
|
|
|
—
|
|
|
1,616,150
|
|
||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
37,330
|
|
|
37,330
|
|
||||
Corporate and other debt securities
|
—
|
|
|
5,000
|
|
|
32,750
|
|
|
37,750
|
|
||||
Total investment securities held to maturity
|
$
|
2,196,537
|
|
|
$
|
10,704
|
|
|
$
|
109,792
|
|
|
$
|
2,317,033
|
|
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
138,352
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
138,352
|
|
U.S. government agency securities
|
7,345
|
|
|
—
|
|
|
—
|
|
|
7,345
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
248,533
|
|
|
5,722
|
|
|
43,199
|
|
|
297,454
|
|
||||
Municipal bonds
|
202,642
|
|
|
—
|
|
|
609
|
|
|
203,251
|
|
||||
Total obligations of states and political subdivisions
|
451,175
|
|
|
5,722
|
|
|
43,808
|
|
|
500,705
|
|
||||
Residential mortgage-backed securities
|
1,620,119
|
|
|
—
|
|
|
—
|
|
|
1,620,119
|
|
||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
37,324
|
|
|
37,324
|
|
||||
Corporate and other debt securities
|
—
|
|
|
5,000
|
|
|
27,250
|
|
|
32,250
|
|
||||
Total investment securities held to maturity
|
$
|
2,216,991
|
|
|
$
|
10,722
|
|
|
$
|
108,382
|
|
|
$
|
2,336,095
|
|
|
(in thousands)
|
||
Three Months Ended
March 31, 2020 |
|
||
Allowance for credit losses:
|
|
||
Beginning balance
|
$
|
—
|
|
Impact of ASU 2016-13 adoption
|
793
|
|
|
Provision for credit losses
|
759
|
|
|
Ending balance
|
$
|
1,552
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(in thousands)
|
||||||
Loans:
|
|
|
|
||||
Commercial and industrial
|
$
|
4,998,731
|
|
|
$
|
4,825,997
|
|
Commercial real estate:
|
|
|
|
||||
Commercial real estate
|
16,390,236
|
|
|
15,996,741
|
|
||
Construction
|
1,727,046
|
|
|
1,647,018
|
|
||
Total commercial real estate loans
|
18,117,282
|
|
|
17,643,759
|
|
||
Residential mortgage
|
4,478,982
|
|
|
4,377,111
|
|
||
Consumer:
|
|
|
|
||||
Home equity
|
481,751
|
|
|
487,272
|
|
||
Automobile
|
1,436,734
|
|
|
1,451,623
|
|
||
Other consumer
|
914,587
|
|
|
913,446
|
|
||
Total consumer loans
|
2,833,072
|
|
|
2,852,341
|
|
||
Total loans
|
$
|
30,428,067
|
|
|
$
|
29,699,208
|
|
|
Past Due and Non-Accrual Loans
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
30-59 Days or More
Past Due Loans
|
|
60-89 Days or More
Past Due Loans
|
|
90 Days or More
Past Due Loans
|
|
Non-Accrual Loans
|
|
Total Past Due Loans
|
|
Current Loans
|
|
Total Loans
|
|
Non-Accrual Loans Without Allowance for Credit Losses
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and industrial
|
$
|
9,780
|
|
|
$
|
7,624
|
|
|
$
|
4,049
|
|
|
$
|
132,622
|
|
|
$
|
154,075
|
|
|
$
|
4,844,656
|
|
|
$
|
4,998,731
|
|
|
$
|
17,149
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial real estate
|
41,664
|
|
|
15,963
|
|
|
161
|
|
|
41,616
|
|
|
99,404
|
|
|
16,290,832
|
|
|
16,390,236
|
|
|
37,865
|
|
||||||||
Construction
|
7,119
|
|
|
49
|
|
|
—
|
|
|
2,972
|
|
|
10,140
|
|
|
1,716,906
|
|
|
1,727,046
|
|
|
2,839
|
|
||||||||
Total commercial real estate loans
|
48,783
|
|
|
16,012
|
|
|
161
|
|
|
44,588
|
|
|
109,544
|
|
|
18,007,738
|
|
|
18,117,282
|
|
|
40,704
|
|
||||||||
Residential mortgage
|
38,965
|
|
|
9,307
|
|
|
1,798
|
|
|
24,625
|
|
|
74,695
|
|
|
4,404,287
|
|
|
4,478,982
|
|
|
9,834
|
|
||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Home equity
|
2,625
|
|
|
509
|
|
|
—
|
|
|
3,845
|
|
|
6,979
|
|
|
474,772
|
|
|
481,751
|
|
|
131
|
|
||||||||
Automobile
|
13,447
|
|
|
1,756
|
|
|
626
|
|
|
250
|
|
|
16,079
|
|
|
1,420,655
|
|
|
1,436,734
|
|
|
—
|
|
||||||||
Other consumer
|
3,436
|
|
|
44
|
|
|
466
|
|
|
—
|
|
|
3,946
|
|
|
910,641
|
|
|
914,587
|
|
|
—
|
|
||||||||
Total consumer loans
|
19,508
|
|
|
2,309
|
|
|
1,092
|
|
|
4,095
|
|
|
27,004
|
|
|
2,806,068
|
|
|
2,833,072
|
|
|
131
|
|
||||||||
Total
|
$
|
117,036
|
|
|
$
|
35,252
|
|
|
$
|
7,100
|
|
|
$
|
205,930
|
|
|
$
|
365,318
|
|
|
$
|
30,062,749
|
|
|
$
|
30,428,067
|
|
|
$
|
67,818
|
|
|
Past Due and Non-Accrual Loans
|
|
|
|
|
||||||||||||||||||||||
|
30-59
Days
Past Due Loans
|
|
60-89
Days or More
Past Due Loans
|
|
90 Days or More
Past Due Loans
|
|
Non-Accrual Loans
|
|
Total Past Due Loans
|
|
Current Non-PCI Loans
|
|
PCI Loans
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
11,700
|
|
|
$
|
2,227
|
|
|
$
|
3,986
|
|
|
$
|
68,636
|
|
|
$
|
86,549
|
|
|
$
|
4,057,434
|
|
|
$
|
682,014
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
2,560
|
|
|
4,026
|
|
|
579
|
|
|
9,004
|
|
|
16,169
|
|
|
10,886,724
|
|
|
5,093,848
|
|
|||||||
Construction
|
1,486
|
|
|
1,343
|
|
|
—
|
|
|
356
|
|
|
3,185
|
|
|
1,492,532
|
|
|
151,301
|
|
|||||||
Total commercial real estate loans
|
4,046
|
|
|
5,369
|
|
|
579
|
|
|
9,360
|
|
|
19,354
|
|
|
12,379,256
|
|
|
5,245,149
|
|
|||||||
Residential mortgage
|
17,143
|
|
|
4,192
|
|
|
2,042
|
|
|
12,858
|
|
|
36,235
|
|
|
3,760,707
|
|
|
580,169
|
|
|||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
1,051
|
|
|
80
|
|
|
—
|
|
|
1,646
|
|
|
2,777
|
|
|
373,243
|
|
|
111,252
|
|
|||||||
Automobile
|
11,482
|
|
|
1,581
|
|
|
681
|
|
|
334
|
|
|
14,078
|
|
|
1,437,274
|
|
|
271
|
|
|||||||
Other consumer
|
1,171
|
|
|
866
|
|
|
30
|
|
|
224
|
|
|
2,291
|
|
|
900,411
|
|
|
10,744
|
|
|||||||
Total consumer loans
|
13,704
|
|
|
2,527
|
|
|
711
|
|
|
2,204
|
|
|
19,146
|
|
|
2,710,928
|
|
|
122,267
|
|
|||||||
Total
|
$
|
46,593
|
|
|
$
|
14,315
|
|
|
$
|
7,318
|
|
|
$
|
93,058
|
|
|
$
|
161,284
|
|
|
$
|
22,908,325
|
|
|
$
|
6,629,599
|
|
|
|
Term Loans
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
Amortized Cost Basis by Origination Year
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
March 31, 2020
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior to 2016
|
|
Revolving Loans Amortized Cost Basis
|
|
Revolving Loans Converted to Term Loans
|
|
Total
|
||||||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
251,561
|
|
|
$
|
800,674
|
|
|
$
|
677,111
|
|
|
$
|
331,265
|
|
|
$
|
220,022
|
|
|
$
|
490,587
|
|
|
$
|
1,955,270
|
|
|
$
|
515
|
|
|
$
|
4,727,005
|
|
Special Mention
|
|
—
|
|
|
11,167
|
|
|
1,614
|
|
|
11,201
|
|
|
11,587
|
|
|
15,016
|
|
|
59,157
|
|
|
102
|
|
|
109,844
|
|
|||||||||
Substandard
|
|
3,320
|
|
|
10,870
|
|
|
3,325
|
|
|
1,786
|
|
|
4,832
|
|
|
6,252
|
|
|
18,684
|
|
|
87
|
|
|
49,156
|
|
|||||||||
Doubtful
|
|
—
|
|
|
5,219
|
|
|
705
|
|
|
17,953
|
|
|
2,637
|
|
|
86,212
|
|
|
—
|
|
|
—
|
|
|
112,726
|
|
|||||||||
Total commercial and industrial
|
|
$
|
254,881
|
|
|
$
|
827,930
|
|
|
$
|
682,755
|
|
|
$
|
362,205
|
|
|
$
|
239,078
|
|
|
$
|
598,067
|
|
|
$
|
2,033,111
|
|
|
$
|
704
|
|
|
$
|
4,998,731
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
1,037,404
|
|
|
$
|
3,269,940
|
|
|
$
|
2,611,108
|
|
|
$
|
2,133,369
|
|
|
$
|
2,041,513
|
|
|
$
|
4,794,614
|
|
|
$
|
217,403
|
|
|
$
|
12,237
|
|
|
$
|
16,117,588
|
|
Special Mention
|
|
872
|
|
|
22,694
|
|
|
1,748
|
|
|
25,324
|
|
|
23,603
|
|
|
75,769
|
|
|
3,250
|
|
|
—
|
|
|
153,260
|
|
|||||||||
Substandard
|
|
3,855
|
|
|
4,909
|
|
|
12,473
|
|
|
12,288
|
|
|
10,947
|
|
|
73,855
|
|
|
—
|
|
|
—
|
|
|
118,327
|
|
|||||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
838
|
|
|
—
|
|
|
223
|
|
|
—
|
|
|
—
|
|
|
1,061
|
|
|||||||||
Total commercial real estate
|
|
$
|
1,042,131
|
|
|
$
|
3,297,543
|
|
|
$
|
2,625,329
|
|
|
$
|
2,171,819
|
|
|
$
|
2,076,063
|
|
|
$
|
4,944,461
|
|
|
$
|
220,653
|
|
|
$
|
12,237
|
|
|
$
|
16,390,236
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
49,866
|
|
|
$
|
157,375
|
|
|
$
|
179,300
|
|
|
$
|
52,820
|
|
|
$
|
66,550
|
|
|
$
|
57,236
|
|
|
$
|
1,144,877
|
|
|
$
|
—
|
|
|
$
|
1,708,024
|
|
Special Mention
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,740
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
7,836
|
|
|||||||||
Substandard
|
|
—
|
|
|
42
|
|
|
—
|
|
|
8,359
|
|
|
2,422
|
|
|
363
|
|
|
—
|
|
|
—
|
|
|
11,186
|
|
|||||||||
Total construction
|
|
$
|
49,866
|
|
|
$
|
157,417
|
|
|
$
|
179,300
|
|
|
$
|
61,179
|
|
|
$
|
76,712
|
|
|
$
|
57,695
|
|
|
$
|
1,144,877
|
|
|
$
|
—
|
|
|
$
|
1,727,046
|
|
|
|
Term Loans
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
Amortized Cost Basis by Origination Year
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
March 31, 2020
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior to 2016
|
|
Revolving Loans Amortized Cost Basis
|
|
Revolving Loans Converted to Term Loans
|
|
Total
|
||||||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||||||||||
Residential mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Performing
|
|
$
|
233,209
|
|
|
$
|
877,519
|
|
|
$
|
942,127
|
|
|
$
|
752,209
|
|
|
$
|
450,980
|
|
|
$
|
1,160,244
|
|
|
$
|
46,312
|
|
|
$
|
—
|
|
|
$
|
4,462,600
|
|
90 days or more past due
|
|
—
|
|
|
519
|
|
|
201
|
|
|
2,612
|
|
|
3,908
|
|
|
9,142
|
|
|
—
|
|
|
—
|
|
|
16,382
|
|
|||||||||
Total residential mortgage
|
|
$
|
233,209
|
|
|
$
|
878,038
|
|
|
$
|
942,328
|
|
|
$
|
754,821
|
|
|
$
|
454,888
|
|
|
$
|
1,169,386
|
|
|
$
|
46,312
|
|
|
$
|
—
|
|
|
$
|
4,478,982
|
|
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Home equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Performing
|
|
$
|
1,017
|
|
|
$
|
1,851
|
|
|
$
|
3,621
|
|
|
$
|
9,999
|
|
|
$
|
2,492
|
|
|
$
|
21,668
|
|
|
$
|
384,208
|
|
|
$
|
55,710
|
|
|
$
|
480,566
|
|
90 days or more past due
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
297
|
|
|
816
|
|
|
1,185
|
|
|||||||||
Total home equity
|
|
1,017
|
|
|
1,851
|
|
|
3,621
|
|
|
9,999
|
|
|
2,492
|
|
|
21,740
|
|
|
384,505
|
|
|
56,526
|
|
|
481,751
|
|
|||||||||
Automobile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Performing
|
|
120,779
|
|
|
556,072
|
|
|
363,005
|
|
|
220,424
|
|
|
86,715
|
|
|
88,776
|
|
|
—
|
|
|
—
|
|
|
1,435,771
|
|
|||||||||
90 days or more past due
|
|
—
|
|
|
170
|
|
|
320
|
|
|
275
|
|
|
79
|
|
|
119
|
|
|
—
|
|
|
—
|
|
|
963
|
|
|||||||||
Total automobile
|
|
120,779
|
|
|
556,242
|
|
|
363,325
|
|
|
220,699
|
|
|
86,794
|
|
|
88,895
|
|
|
—
|
|
|
—
|
|
|
1,436,734
|
|
|||||||||
Other Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Performing
|
|
7,549
|
|
|
6,845
|
|
|
14,415
|
|
|
1,332
|
|
|
1,382
|
|
|
3,663
|
|
|
878,495
|
|
|
—
|
|
|
913,681
|
|
|||||||||
90 days or more past due
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
906
|
|
|
—
|
|
|
906
|
|
|||||||||
Total other consumer
|
|
7,549
|
|
|
6,845
|
|
|
14,415
|
|
|
1,332
|
|
|
1,382
|
|
|
3,663
|
|
|
879,401
|
|
|
—
|
|
|
914,587
|
|
|||||||||
Total Consumer
|
|
$
|
129,345
|
|
|
$
|
564,938
|
|
|
$
|
381,361
|
|
|
$
|
232,030
|
|
|
$
|
90,668
|
|
|
$
|
114,298
|
|
|
$
|
1,263,906
|
|
|
$
|
56,526
|
|
|
$
|
2,833,072
|
|
Credit exposure—
by internally assigned risk rating
|
|
|
|
Special
|
|
|
|
|
|
Total Non-PCI
|
||||||||||
|
Pass
|
|
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loans
|
|||||||||||
|
|
(in thousands)
|
||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
3,982,453
|
|
|
$
|
33,718
|
|
|
$
|
66,511
|
|
|
$
|
61,301
|
|
|
$
|
4,143,983
|
|
Commercial real estate
|
|
10,781,587
|
|
|
77,884
|
|
|
42,560
|
|
|
862
|
|
|
10,902,893
|
|
|||||
Construction
|
|
1,487,877
|
|
|
7,486
|
|
|
354
|
|
|
—
|
|
|
1,495,717
|
|
|||||
Total
|
|
$
|
16,251,917
|
|
|
$
|
119,088
|
|
|
$
|
109,425
|
|
|
$
|
62,163
|
|
|
$
|
16,542,593
|
|
Credit exposure—
by payment activity
|
|
Performing
Loans
|
|
Non-Performing
Loans
|
|
Total Non-PCI
Loans
|
||||||
|
|
(in thousands)
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
||||||
Residential mortgage
|
|
$
|
3,784,084
|
|
|
$
|
12,858
|
|
|
$
|
3,796,942
|
|
Home equity
|
|
374,374
|
|
|
$
|
1,646
|
|
|
376,020
|
|
||
Automobile
|
|
1,451,018
|
|
|
$
|
334
|
|
|
1,451,352
|
|
||
Other consumer
|
|
902,478
|
|
|
$
|
224
|
|
|
902,702
|
|
||
Total
|
|
$
|
6,511,954
|
|
|
$
|
15,062
|
|
|
$
|
6,527,016
|
|
Credit exposure—
|
|
Performing
|
|
Non-Performing
|
|
Total
|
||||||
by payment activity
|
|
Loans
|
|
Loans
|
|
PCI Loans
|
||||||
|
|
(in thousands)
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
653,997
|
|
|
$
|
28,017
|
|
|
$
|
682,014
|
|
Commercial real estate
|
|
5,065,388
|
|
|
28,460
|
|
|
5,093,848
|
|
|||
Construction
|
|
148,692
|
|
|
2,609
|
|
|
151,301
|
|
|||
Residential mortgage
|
|
571,006
|
|
|
9,163
|
|
|
580,169
|
|
|||
Consumer
|
|
120,356
|
|
|
1,911
|
|
|
122,267
|
|
|||
Total
|
|
$
|
6,559,439
|
|
|
$
|
70,160
|
|
|
$
|
6,629,599
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
|
2020
|
|
2019
|
||||||||||||||||||
Troubled Debt Restructurings
|
|
Number
of
Contracts
|
|
Pre-Modification
Amortized Carrying Amount
|
|
Post-Modification
Amortized Carrying Amount
|
|
Number
of
Contracts
|
|
Pre-Modification
Amortized Carrying Amount
|
|
Post-Modification
Amortized Carrying Amount
|
||||||||||
|
|
($ in thousands)
|
||||||||||||||||||||
Commercial and industrial
|
|
16
|
|
|
$
|
13,144
|
|
|
$
|
12,630
|
|
|
36
|
|
|
$
|
23,553
|
|
|
$
|
23,241
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
1
|
|
|
3,863
|
|
|
3,855
|
|
|
1
|
|
|
1,597
|
|
|
1,597
|
|
||||
Total commercial real estate
|
|
1
|
|
|
3,863
|
|
|
3,855
|
|
|
1
|
|
|
1,597
|
|
|
1,597
|
|
||||
Total
|
|
17
|
|
|
$
|
17,007
|
|
|
$
|
16,485
|
|
|
37
|
|
|
$
|
25,150
|
|
|
$
|
24,838
|
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2020
|
|
2019
|
||||||||||
Troubled Debt Restructurings Subsequently Defaulted
|
|
Number of
Contracts
|
|
Amortized Cost
|
|
Number of
Contracts
|
|
Recorded
Investment
|
||||||
|
|
($ in thousands)
|
||||||||||||
Commercial and industrial
|
|
—
|
|
|
$
|
—
|
|
|
10
|
|
|
$
|
8,626
|
|
Residential mortgage
|
|
1
|
|
|
154
|
|
|
5
|
|
|
702
|
|
||
Consumer
|
|
—
|
|
|
—
|
|
|
1
|
|
|
18
|
|
||
Total
|
|
1
|
|
|
$
|
154
|
|
|
16
|
|
|
$
|
9,346
|
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
|
(in thousands)
|
||||||
Components of allowance for credit losses for loans:
|
|
|
|
||||
Allowance for loan losses
|
$
|
283,342
|
|
|
$
|
161,759
|
|
Allowance for unfunded credit commitments
|
10,019
|
|
|
2,845
|
|
||
Total allowance for credit losses for loans
|
$
|
293,361
|
|
|
$
|
164,604
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Components of provision for credit losses for loans:
|
|
|
|
||||
Provision for loan losses
|
$
|
33,851
|
|
|
$
|
7,856
|
|
Provision for unfunded credit commitments
|
73
|
|
|
144
|
|
||
Total provision for credit losses for loans
|
$
|
33,924
|
|
|
$
|
8,000
|
|
|
March 31,
2020 |
||
|
(in thousands)
|
||
Commercial and industrial
|
$
|
118,988
|
|
Commercial real estate:
|
|
||
Commercial real estate
|
49,225
|
|
|
Construction
|
2,839
|
|
|
Total commercial real estate loans
|
52,064
|
|
|
Residential mortgage
|
9,941
|
|
|
Home equity
|
1,013
|
|
|
Total
|
$
|
182,006
|
|
|
Commercial
and Industrial
|
|
Commercial
Real Estate
|
|
Residential
Mortgage
|
|
Consumer
|
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Three Months Ended
March 31, 2020 |
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
104,059
|
|
|
$
|
45,673
|
|
|
$
|
5,060
|
|
|
$
|
6,967
|
|
|
$
|
161,759
|
|
Impact of ASU 2016-13 adoption*
|
15,169
|
|
|
49,797
|
|
|
20,575
|
|
|
6,990
|
|
|
92,531
|
|
|||||
Loans charged-off
|
(3,360
|
)
|
|
(44
|
)
|
|
(336
|
)
|
|
(2,565
|
)
|
|
(6,305
|
)
|
|||||
Charged-off loans recovered
|
569
|
|
|
93
|
|
|
50
|
|
|
794
|
|
|
1,506
|
|
|||||
Net (charge-offs) recoveries
|
(2,791
|
)
|
|
49
|
|
|
(286
|
)
|
|
(1,771
|
)
|
|
(4,799
|
)
|
|||||
Provision for loan losses
|
11,000
|
|
|
16,066
|
|
|
4,107
|
|
|
2,678
|
|
|
33,851
|
|
|||||
Ending balance
|
$
|
127,437
|
|
|
$
|
111,585
|
|
|
$
|
29,456
|
|
|
$
|
14,864
|
|
|
$
|
283,342
|
|
Three Months Ended
March 31, 2019 |
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
90,956
|
|
|
$
|
49,650
|
|
|
$
|
5,041
|
|
|
$
|
6,212
|
|
|
$
|
151,859
|
|
Loans charged-off
|
(4,282
|
)
|
|
—
|
|
|
(2,028
|
)
|
|
(15
|
)
|
|
(6,325
|
)
|
|||||
Charged-off loans recovered
|
483
|
|
|
21
|
|
|
1
|
|
|
486
|
|
|
991
|
|
|||||
Net (charge-offs) recoveries
|
(3,799
|
)
|
|
21
|
|
|
(2,027
|
)
|
|
471
|
|
|
(5,334
|
)
|
|||||
Provision for loan losses
|
7,473
|
|
|
(1,909
|
)
|
|
2,125
|
|
|
167
|
|
|
7,856
|
|
|||||
Ending balance
|
$
|
94,630
|
|
|
$
|
47,762
|
|
|
$
|
5,139
|
|
|
$
|
6,850
|
|
|
$
|
154,381
|
|
|
*
|
Includes a $61.6 million reclassification adjustment representing the estimated expected credit losses for PCD loans.
|
|
Commercial
and Industrial
|
|
Commercial
Real Estate
|
|
Residential
Mortgage
|
|
Consumer
|
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for credit losses
|
$
|
58,209
|
|
|
$
|
1,383
|
|
|
$
|
427
|
|
|
$
|
413
|
|
|
$
|
60,432
|
|
Collectively evaluated for credit losses
|
69,228
|
|
|
110,202
|
|
|
29,029
|
|
|
14,451
|
|
|
222,910
|
|
|||||
Total
|
$
|
127,437
|
|
|
$
|
111,585
|
|
|
$
|
29,456
|
|
|
$
|
14,864
|
|
|
$
|
283,342
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for credit losses
|
$
|
127,776
|
|
|
$
|
76,239
|
|
|
$
|
16,798
|
|
|
$
|
3,315
|
|
|
$
|
224,128
|
|
Collectively evaluated for credit losses
|
4,870,955
|
|
|
18,041,043
|
|
|
4,462,184
|
|
|
2,829,757
|
|
|
30,203,939
|
|
|||||
Total
|
$
|
4,998,731
|
|
|
$
|
18,117,282
|
|
|
$
|
4,478,982
|
|
|
$
|
2,833,072
|
|
|
$
|
30,428,067
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for credit losses
|
$
|
36,662
|
|
|
$
|
1,338
|
|
|
$
|
518
|
|
|
$
|
58
|
|
|
$
|
38,576
|
|
Collectively evaluated for credit losses
|
67,397
|
|
|
44,335
|
|
|
4,542
|
|
|
6,909
|
|
|
123,183
|
|
|||||
Total
|
$
|
104,059
|
|
|
$
|
45,673
|
|
|
$
|
5,060
|
|
|
$
|
6,967
|
|
|
$
|
161,759
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for credit losses
|
$
|
100,860
|
|
|
$
|
51,242
|
|
|
$
|
10,689
|
|
|
$
|
853
|
|
|
$
|
163,644
|
|
Collectively evaluated for credit losses
|
4,043,123
|
|
|
12,347,368
|
|
|
3,786,253
|
|
|
2,729,221
|
|
|
22,905,965
|
|
|||||
Loans acquired with discounts related to credit quality
|
682,014
|
|
|
5,245,149
|
|
|
580,169
|
|
|
122,267
|
|
|
6,629,599
|
|
|||||
Total
|
$
|
4,825,997
|
|
|
$
|
17,643,759
|
|
|
$
|
4,377,111
|
|
|
$
|
2,852,341
|
|
|
$
|
29,699,208
|
|
|
Recorded
Investment
With No
Related
Allowance
|
|
Recorded
Investment
With
Related
Allowance
|
|
Total
Recorded
Investment
|
|
Unpaid
Contractual
Principal
Balance
|
|
Related
Allowance
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
14,617
|
|
|
$
|
86,243
|
|
|
$
|
100,860
|
|
|
$
|
114,875
|
|
|
$
|
36,662
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
26,046
|
|
|
24,842
|
|
|
50,888
|
|
|
51,258
|
|
|
1,338
|
|
|||||
Construction
|
354
|
|
|
—
|
|
|
354
|
|
|
354
|
|
|
—
|
|
|||||
Total commercial real estate loans
|
26,400
|
|
|
24,842
|
|
|
51,242
|
|
|
51,612
|
|
|
1,338
|
|
|||||
Residential mortgage
|
5,836
|
|
|
4,853
|
|
|
10,689
|
|
|
11,800
|
|
|
518
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
366
|
|
|
487
|
|
|
853
|
|
|
956
|
|
|
58
|
|
|||||
Total consumer loans
|
366
|
|
|
487
|
|
|
853
|
|
|
956
|
|
|
58
|
|
|||||
Total
|
$
|
47,219
|
|
|
$
|
116,425
|
|
|
$
|
163,644
|
|
|
$
|
179,243
|
|
|
$
|
38,576
|
|
|
Three Months Ended March 31, 2019
|
||
|
(in thousands)
|
||
Balance, beginning of period
|
$
|
875,958
|
|
Accretion
|
(53,492
|
)
|
|
Net increase in expected cash flows
|
68,305
|
|
|
Balance, end of period
|
$
|
890,771
|
|
|
Business Segment / Reporting Unit*
|
||||||||||||||||||
|
Wealth
Management |
|
Consumer
Lending |
|
Commercial
Lending |
|
Investment
Management |
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Balance at December 31, 2019
|
$
|
21,218
|
|
|
$
|
306,572
|
|
|
$
|
825,767
|
|
|
$
|
220,068
|
|
|
$
|
1,373,625
|
|
Goodwill from business combinations
|
—
|
|
|
121
|
|
|
1,654
|
|
|
9
|
|
|
1,784
|
|
|||||
Balance at March 31, 2020
|
$
|
21,218
|
|
|
$
|
306,693
|
|
|
$
|
827,421
|
|
|
$
|
220,077
|
|
|
$
|
1,375,409
|
|
|
*
|
Valley’s Wealth Management Division is comprised of trust, asset management and insurance services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes.
|
|
Gross
Intangible
Assets
|
|
Accumulated
Amortization
|
|
Valuation
Allowance
|
|
Net
Intangible
Assets
|
||||||||
|
(in thousands)
|
||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
||||||||
Loan servicing rights
|
$
|
96,211
|
|
|
$
|
(72,021
|
)
|
|
$
|
(156
|
)
|
|
$
|
24,034
|
|
Core deposits
|
101,160
|
|
|
(43,764
|
)
|
|
—
|
|
|
57,396
|
|
||||
Other
|
3,945
|
|
|
(2,689
|
)
|
|
—
|
|
|
1,256
|
|
||||
Total other intangible assets
|
$
|
201,316
|
|
|
$
|
(118,474
|
)
|
|
$
|
(156
|
)
|
|
$
|
82,686
|
|
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Loan servicing rights
|
$
|
94,827
|
|
|
$
|
(70,095
|
)
|
|
$
|
(47
|
)
|
|
$
|
24,685
|
|
Core deposits
|
101,160
|
|
|
(40,384
|
)
|
|
—
|
|
|
60,776
|
|
||||
Other
|
3,945
|
|
|
(2,634
|
)
|
|
—
|
|
|
1,311
|
|
||||
Total other intangible assets
|
$
|
199,932
|
|
|
$
|
(113,113
|
)
|
|
$
|
(47
|
)
|
|
$
|
86,772
|
|
|
Loan Servicing
Rights
|
|
Core
Deposits
|
|
Other
|
||||||
|
(in thousands)
|
||||||||||
2020
|
$
|
3,558
|
|
|
$
|
9,983
|
|
|
$
|
165
|
|
2021
|
3,935
|
|
|
11,607
|
|
|
206
|
|
|||
2022
|
3,180
|
|
|
9,876
|
|
|
191
|
|
|||
2023
|
2,575
|
|
|
8,146
|
|
|
131
|
|
|||
2024
|
2,083
|
|
|
6,537
|
|
|
117
|
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
|
(in thousands)
|
||||||
FHLB advances
|
$
|
1,510,000
|
|
|
$
|
940,000
|
|
Federal funds purchased
|
457,000
|
|
|
—
|
|
||
Securities sold under agreements to repurchase
|
128,655
|
|
|
153,280
|
|
||
Total short-term borrowings
|
$
|
2,095,655
|
|
|
$
|
1,093,280
|
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
|
(in thousands)
|
||||||
FHLB advances, net (1)
|
$
|
2,163,754
|
|
|
$
|
1,480,012
|
|
Securities sold under agreements to repurchase
|
350,000
|
|
|
350,000
|
|
||
Subordinated debt, net (2)
|
291,857
|
|
|
292,414
|
|
||
Other
|
28
|
|
|
—
|
|
||
Total long-term borrowings
|
$
|
2,805,639
|
|
|
$
|
2,122,426
|
|
|
(1)
|
FHLB advances are presented net of unamortized prepayment penalties and other purchase accounting adjustments totaling $2.0 million and $2.8 million at March 31, 2020 and December 31, 2019, respectively.
|
(2)
|
Subordinated debt is presented net of unamortized debt issuance costs totaling $1.1 million and $1.2 million at March 31, 2020 and December 31, 2019, respectively.
|
Year
|
|
Amount
|
||
|
|
(in thousands)
|
||
2020
|
|
$
|
41,290
|
|
2021
|
|
994,769
|
|
|
2022
|
|
121,420
|
|
|
2023
|
|
428,164
|
|
|
2024
|
|
300,000
|
|
|
Thereafter
|
|
280,078
|
|
|
Total long-term FHLB advances
|
|
$
|
2,165,721
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
Fair Value
|
|
|
|
Fair Value
|
|
|
||||||||||||||||
|
Other Assets
|
|
Other Liabilities
|
|
Notional Amount
|
|
Other Assets
|
|
Other Liabilities
|
|
Notional Amount
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedge interest rate swaps
|
$
|
—
|
|
|
$
|
2,493
|
|
|
$
|
730,000
|
|
|
$
|
—
|
|
|
$
|
1,484
|
|
|
$
|
180,000
|
|
Fair value hedge interest rate swaps
|
—
|
|
|
218
|
|
|
7,215
|
|
|
—
|
|
|
229
|
|
|
7,281
|
|
||||||
Total derivatives designated as hedging instruments
|
$
|
—
|
|
|
$
|
2,711
|
|
|
$
|
737,215
|
|
|
$
|
—
|
|
|
$
|
1,713
|
|
|
$
|
187,281
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps and embedded derivatives
|
$
|
436,497
|
|
|
$
|
157,683
|
|
|
$
|
5,226,704
|
|
|
$
|
158,382
|
|
|
$
|
42,020
|
|
|
$
|
4,113,106
|
|
Mortgage banking derivatives
|
1,686
|
|
|
2,976
|
|
|
380,116
|
|
|
150
|
|
|
193
|
|
|
142,760
|
|
||||||
Total derivatives not designated as hedging instruments
|
$
|
438,183
|
|
|
$
|
160,659
|
|
|
$
|
5,606,820
|
|
|
$
|
158,532
|
|
|
$
|
42,213
|
|
|
$
|
4,255,866
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense
|
$
|
(615
|
)
|
|
$
|
(290
|
)
|
Amount of loss recognized in other comprehensive income
|
(1,480
|
)
|
|
(550
|
)
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Derivative - interest rate swaps:
|
|
|
|
||||
Interest income
|
$
|
11
|
|
|
$
|
24
|
|
Hedged item - loans:
|
|
|
|
||||
Interest income
|
$
|
(11
|
)
|
|
$
|
(24
|
)
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Non-designated hedge interest rate swaps and credit derivatives
|
|
|
|
||||
Other non-interest expense
|
$
|
89
|
|
|
$
|
410
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset
|
|
|
||||||||||||||
|
Gross Amounts
Recognized
|
|
Gross Amounts
Offset
|
|
Net Amounts
Presented
|
|
Financial
Instruments
|
|
Cash
Collateral
|
|
Net
Amount
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
436,497
|
|
|
$
|
—
|
|
|
$
|
436,497
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
436,497
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
160,394
|
|
|
$
|
—
|
|
|
$
|
160,394
|
|
|
$
|
—
|
|
|
$
|
(42,831
|
)
|
|
$
|
117,563
|
|
Repurchase agreements
|
350,000
|
|
|
—
|
|
|
350,000
|
|
|
—
|
|
|
(350,000
|
)
|
*
|
—
|
|
||||||
Total
|
$
|
510,394
|
|
|
$
|
—
|
|
|
$
|
510,394
|
|
|
$
|
—
|
|
|
$
|
(392,831
|
)
|
|
$
|
117,563
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
158,382
|
|
|
$
|
—
|
|
|
$
|
158,382
|
|
|
$
|
(118
|
)
|
|
$
|
—
|
|
|
$
|
158,264
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
43,733
|
|
|
$
|
—
|
|
|
$
|
43,733
|
|
|
$
|
(118
|
)
|
|
$
|
(16,881
|
)
|
|
$
|
26,734
|
|
Repurchase agreements
|
350,000
|
|
|
—
|
|
|
350,000
|
|
|
—
|
|
|
(350,000
|
)
|
*
|
—
|
|
||||||
Total
|
$
|
393,733
|
|
|
$
|
—
|
|
|
$
|
393,733
|
|
|
$
|
(118
|
)
|
|
$
|
(366,881
|
)
|
|
$
|
26,734
|
|
|
*
|
Represents the fair value of non-cash pledged investment securities.
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
|
(in thousands)
|
||||||
Other Assets:
|
|
|
|
||||
Affordable housing tax credit investments, net
|
$
|
24,077
|
|
|
$
|
25,049
|
|
Other tax credit investments, net
|
53,912
|
|
|
59,081
|
|
||
Total tax credit investments, net
|
$
|
77,989
|
|
|
$
|
84,130
|
|
Other Liabilities:
|
|
|
|
||||
Unfunded affordable housing tax credit commitments
|
$
|
1,440
|
|
|
$
|
1,539
|
|
Unfunded other tax credit commitments
|
1,139
|
|
|
1,139
|
|
||
Total unfunded tax credit commitments
|
$
|
2,579
|
|
|
$
|
2,678
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Components of Income Tax Expense:
|
|
|
|
||||
Affordable housing tax credits and other tax benefits
|
$
|
1,234
|
|
|
$
|
1,713
|
|
Other tax credit investment credits and tax benefits
|
1,300
|
|
|
2,803
|
|
||
Total reduction in income tax expense
|
$
|
2,534
|
|
|
$
|
4,516
|
|
Amortization of Tax Credit Investments:
|
|
|
|
||||
Affordable housing tax credit investment losses
|
$
|
554
|
|
|
$
|
673
|
|
Affordable housing tax credit investment impairment losses
|
418
|
|
|
730
|
|
||
Other tax credit investment losses
|
544
|
|
|
987
|
|
||
Other tax credit investment impairment losses
|
1,712
|
|
|
4,783
|
|
||
Total amortization of tax credit investments recorded in non-interest expense
|
$
|
3,228
|
|
|
$
|
7,173
|
|
•
|
the impact of COVID-19 on the U.S. and the global economies, including business disruptions, reductions in employment and an increase in business failures, specifically among our clients;
|
•
|
the impact of COVID-19 on our employees and our ability to provide services to our clients and respond to their needs;
|
•
|
potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions, including as a result of our participation in and execution of government programs related to the COVID-19 pandemic or as a result of our action in response to, or failure to implement or effectively implement, federal, state and local laws, rules or executive orders requiring that we grant forbearances or not act to collect our loans;
|
•
|
the impact of forbearances or deferrals we are required or agree to as a result of customer requests and/or government actions, including, but not limited to our potential inability to recover fully deferred payments from the borrower or the collateral;
|
•
|
damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment related claims, and other matters;
|
•
|
a prolonged downturn in the economy, mainly in New Jersey, New York, Florida and Alabama, as well as an unexpected decline in commercial real estate values within our market areas;
|
•
|
the inability to realize expected cost savings and synergies from the Oritani merger in amounts or in the timeframe anticipated;
|
•
|
the inability to retain Oritani customers;
|
•
|
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law;
|
•
|
the inability to grow customer deposits to keep pace with loan growth;
|
•
|
a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
|
•
|
the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
|
•
|
greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
|
•
|
the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy;
|
•
|
cyber-attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;
|
•
|
results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
|
•
|
our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;
|
•
|
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, the COVID-19 pandemic or other external events;
|
•
|
unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors; and
|
•
|
the failure of other financial institutions with whom we have trading, clearing, counterparty and other financial relationships.
|
•
|
Changes in the provision for credit losses can materially affect our financial results;
|
•
|
Estimates relating to the allowance for credit losses require us to project future borrower performance, delinquencies and charge-offs, along with, when applicable, collateral values, based on a reasonable and supportable forecast period utilizing forward-looking economic scenarios in order to estimate probability of default and loss given default;
|
•
|
The allowance for credit losses is influenced by factors outside of our control such as industry and business trends, geopolitical events and the effects of laws and regulations as well as economic conditions such as trends in housing prices, interest rates, gross domestic product (GDP), inflation, energy prices and unemployment; and
|
•
|
Judgment is required to determine whether the models used to generate the allowance for credit losses produce an estimate that is sufficient to encompass the current view of lifetime expected credit losses.
|
|
Three Months Ended
March 31, |
||||
|
2020
|
|
2019
|
||
Return on average assets
|
0.92
|
%
|
|
1.40
|
%
|
Return on average assets, as adjusted
|
0.93
|
|
|
0.93
|
|
|
|
|
|
||
Return on average shareholders’ equity
|
7.92
|
|
|
13.35
|
|
Return on average shareholders’ equity, as adjusted
|
8.01
|
|
|
8.83
|
|
|
|
|
|
||
Return on average tangible shareholders’ equity (ROATE)
|
11.84
|
|
|
20.29
|
|
ROATE, as adjusted
|
11.97
|
|
|
13.42
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Net income, as reported
|
$
|
87,268
|
|
|
$
|
113,330
|
|
Add: Losses on securities transactions (net of tax)
|
29
|
|
|
23
|
|
||
Add: Severance expense (net of tax) (1)
|
—
|
|
|
3,433
|
|
||
Add: Tax credit investment impairment (net of tax) (2)
|
—
|
|
|
1,757
|
|
||
Add: Merger related expenses (net of tax) (3)
|
936
|
|
|
—
|
|
||
Add: Income Tax Expense (4)
|
—
|
|
|
12,100
|
|
||
Less: Gain on sale-leaseback transaction (net of tax) (5)
|
—
|
|
|
(55,707
|
)
|
||
Net income, as adjusted
|
$
|
88,233
|
|
|
$
|
74,936
|
|
|
(3)
|
Merger related expenses are primarily within professional and legal fees, and other non-interest expenses..
|
(4)
|
Income tax expense related to reserves for uncertain tax positions.
|
(5)
|
The gain on sale leaseback transactions is included in net gains on the sales of assets within other non-interest income.
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
($ in thousands)
|
||||||
Net income, as adjusted
|
$
|
88,233
|
|
|
$
|
74,936
|
|
Average assets
|
$
|
38,097,364
|
|
|
$
|
32,296,070
|
|
Annualized return on average assets, as adjusted
|
0.93
|
%
|
|
0.93
|
%
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
($ in thousands)
|
||||||
Net income, as adjusted
|
$
|
88,233
|
|
|
$
|
74,936
|
|
Average shareholders' equity
|
$
|
4,408,585
|
|
|
$
|
3,394,688
|
|
Annualized return on average shareholders' equity, as adjusted
|
8.01
|
%
|
|
8.83
|
%
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
($ in thousands)
|
||||||
Net income
|
$
|
87,268
|
|
|
$
|
113,330
|
|
Net income, as adjusted
|
$
|
88,233
|
|
|
$
|
74,936
|
|
Average shareholders’ equity
|
$
|
4,408,585
|
|
|
$
|
3,394,688
|
|
Less: Average goodwill and other intangible assets
|
1,460,988
|
|
|
1,160,510
|
|
||
Average tangible shareholders’ equity
|
$
|
2,947,597
|
|
|
$
|
2,234,178
|
|
Annualized ROATE
|
11.84
|
%
|
|
20.29
|
%
|
||
Annualized ROATE, as adjusted
|
11.97
|
%
|
|
13.42
|
%
|
|
Three Months Ended
|
|||||||||||||||||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans (1)(2)
|
$
|
29,999,428
|
|
|
$
|
333,068
|
|
|
4.44
|
%
|
|
$
|
27,968,383
|
|
|
$
|
315,313
|
|
|
4.51
|
%
|
|
$
|
25,254,733
|
|
|
$
|
288,277
|
|
|
4.57
|
%
|
Taxable investments (3)
|
3,557,913
|
|
|
25,334
|
|
|
2.85
|
|
|
3,322,536
|
|
|
22,643
|
|
|
2.73
|
|
|
3,390,609
|
|
|
26,050
|
|
|
3.07
|
|
||||||
Tax-exempt investments (1)(3)
|
585,987
|
|
|
4,970
|
|
|
3.39
|
|
|
608,651
|
|
|
5,115
|
|
|
3.36
|
|
|
689,675
|
|
|
6,081
|
|
|
3.53
|
|
||||||
Interest bearing deposits with banks
|
530,747
|
|
|
1,465
|
|
|
1.10
|
|
|
438,090
|
|
|
1,776
|
|
|
1.62
|
|
|
227,890
|
|
|
1,093
|
|
|
1.92
|
|
||||||
Total interest earning assets
|
34,674,075
|
|
|
364,837
|
|
|
4.21
|
|
|
32,337,660
|
|
|
344,847
|
|
|
4.27
|
|
|
29,562,907
|
|
|
321,501
|
|
|
4.35
|
|
||||||
Allowance for loan losses
|
(256,675
|
)
|
|
|
|
|
|
(163,254
|
)
|
|
|
|
|
|
(152,961
|
)
|
|
|
|
|
||||||||||||
Cash and due from banks
|
293,276
|
|
|
|
|
|
|
282,824
|
|
|
|
|
|
|
287,449
|
|
|
|
|
|
||||||||||||
Other assets
|
3,378,372
|
|
|
|
|
|
|
2,846,084
|
|
|
|
|
|
|
2,643,727
|
|
|
|
|
|
||||||||||||
Unrealized gains (losses) on securities available for sale, net
|
8,316
|
|
|
|
|
|
|
12,368
|
|
|
|
|
|
|
(45,052
|
)
|
|
|
|
|
||||||||||||
Total assets
|
$
|
38,097,364
|
|
|
|
|
|
|
$
|
35,315,682
|
|
|
|
|
|
|
$
|
32,296,070
|
|
|
|
|
|
|||||||||
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings, NOW and money market deposits
|
$
|
13,219,896
|
|
|
$
|
34,513
|
|
|
1.04
|
%
|
|
$
|
11,813,261
|
|
|
$
|
34,930
|
|
|
1.18
|
%
|
|
$
|
11,450,943
|
|
|
$
|
36,283
|
|
|
1.27
|
%
|
Time deposits
|
8,897,934
|
|
|
42,814
|
|
|
1.92
|
|
|
8,428,153
|
|
|
45,343
|
|
|
2.15
|
|
|
7,214,863
|
|
|
38,171
|
|
|
2.12
|
|
||||||
Total interest bearing deposits
|
22,117,830
|
|
|
77,327
|
|
|
1.40
|
|
|
20,241,414
|
|
|
80,273
|
|
|
1.59
|
|
|
18,665,806
|
|
|
74,454
|
|
|
1.60
|
|
||||||
Short-term borrowings
|
1,322,699
|
|
|
4,707
|
|
|
1.42
|
|
|
1,625,873
|
|
|
7,500
|
|
|
1.85
|
|
|
2,011,428
|
|
|
12,549
|
|
|
2.50
|
|
||||||
Long-term borrowings (4)
|
2,775,049
|
|
|
16,420
|
|
|
2.37
|
|
|
2,377,615
|
|
|
17,459
|
|
|
2.94
|
|
|
1,666,794
|
|
|
14,573
|
|
|
3.50
|
|
||||||
Total interest bearing liabilities
|
26,215,578
|
|
|
98,454
|
|
|
1.50
|
|
|
24,244,902
|
|
|
105,232
|
|
|
1.74
|
|
|
22,344,028
|
|
|
101,576
|
|
|
1.82
|
|
||||||
Non-interest bearing deposits
|
6,694,102
|
|
|
|
|
|
|
6,592,300
|
|
|
|
|
|
|
6,116,953
|
|
|
|
|
|
||||||||||||
Other liabilities
|
779,099
|
|
|
|
|
|
|
673,578
|
|
|
|
|
|
|
440,401
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
4,408,585
|
|
|
|
|
|
|
3,804,902
|
|
|
|
|
|
|
3,394,688
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
38,097,364
|
|
|
|
|
|
|
$
|
35,315,682
|
|
|
|
|
|
|
$
|
32,296,070
|
|
|
|
|
|
|||||||||
Net interest income/interest rate spread (5)
|
|
|
$
|
266,383
|
|
|
2.71
|
%
|
|
|
|
$
|
239,615
|
|
|
2.53
|
%
|
|
|
|
$
|
219,925
|
|
|
2.53
|
%
|
||||||
Tax equivalent adjustment
|
|
|
(1,044
|
)
|
|
|
|
|
|
(1,074
|
)
|
|
|
|
|
|
(1,277
|
)
|
|
|
||||||||||||
Net interest income, as reported
|
|
|
$
|
265,339
|
|
|
|
|
|
|
$
|
238,541
|
|
|
|
|
|
|
$
|
218,648
|
|
|
|
|||||||||
Net interest margin (6)
|
|
|
|
|
3.06
|
%
|
|
|
|
|
|
2.95
|
%
|
|
|
|
|
|
2.96
|
%
|
||||||||||||
Tax equivalent effect
|
|
|
|
|
0.01
|
%
|
|
|
|
|
|
0.01
|
%
|
|
|
|
|
|
0.02
|
%
|
||||||||||||
Net interest margin on a fully tax equivalent basis (6)
|
|
|
|
|
3.07
|
%
|
|
|
|
|
|
2.96
|
%
|
|
|
|
|
|
2.98
|
%
|
|
(1)
|
Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
|
(2)
|
Loans are stated net of unearned income and include non-accrual loans.
|
(3)
|
The yield for securities that are classified as available for sale is based on the average historical amortized cost.
|
(4)
|
Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated
|
(5)
|
Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
|
(6)
|
Net interest income as a percentage of total average interest earning assets.
|
|
Three Months Ended March 31, 2020 Compared to March 31, 2019
|
||||||||||
|
Change
Due to
Volume
|
|
Change
Due to
Rate
|
|
Total
Change
|
||||||
|
(in thousands)
|
||||||||||
Interest Income:
|
|
|
|
|
|
||||||
Loans*
|
$
|
52,866
|
|
|
$
|
(8,075
|
)
|
|
$
|
44,791
|
|
Taxable investments
|
1,248
|
|
|
(1,964
|
)
|
|
(716
|
)
|
|||
Tax-exempt investments*
|
(886
|
)
|
|
(225
|
)
|
|
(1,111
|
)
|
|||
Interest bearing deposits with banks
|
985
|
|
|
(613
|
)
|
|
372
|
|
|||
Total increase (decrease) in interest income
|
54,213
|
|
|
(10,877
|
)
|
|
43,336
|
|
|||
Interest Expense:
|
|
|
|
|
|
||||||
Savings, NOW and money market deposits
|
5,144
|
|
|
(6,914
|
)
|
|
(1,770
|
)
|
|||
Time deposits
|
8,324
|
|
|
(3,681
|
)
|
|
4,643
|
|
|||
Short-term borrowings
|
(3,478
|
)
|
|
(4,364
|
)
|
|
(7,842
|
)
|
|||
Long-term borrowings and junior subordinated debentures
|
7,582
|
|
|
(5,735
|
)
|
|
1,847
|
|
|||
Total increase (decrease) in interest expense
|
17,572
|
|
|
(20,694
|
)
|
|
(3,122
|
)
|
|||
Total increase in net interest income
|
$
|
36,641
|
|
|
$
|
9,817
|
|
|
$
|
46,458
|
|
|
*
|
Interest income is presented on a tax equivalent basis using 21 percent as the federal tax rate.
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Trust and investment services
|
$
|
3,413
|
|
|
$
|
2,904
|
|
Insurance commissions
|
1,951
|
|
|
2,525
|
|
||
Service charges on deposit accounts
|
5,680
|
|
|
5,903
|
|
||
Losses on securities transactions, net
|
(40
|
)
|
|
(32
|
)
|
||
Fees from loan servicing
|
2,748
|
|
|
2,430
|
|
||
Gains on sales of loans, net
|
4,550
|
|
|
4,576
|
|
||
Gains on sales of assets, net
|
121
|
|
|
77,720
|
|
||
Bank owned life insurance
|
3,142
|
|
|
1,887
|
|
||
Other
|
19,832
|
|
|
9,760
|
|
||
Total non-interest income
|
$
|
41,397
|
|
|
$
|
107,673
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Salary and employee benefits expense
|
$
|
85,728
|
|
|
$
|
83,105
|
|
Net occupancy and equipment expense
|
32,441
|
|
|
27,886
|
|
||
FDIC insurance assessment
|
3,876
|
|
|
6,121
|
|
||
Amortization of other intangible assets
|
5,470
|
|
|
4,311
|
|
||
Professional and legal fees
|
6,087
|
|
|
5,271
|
|
||
Amortization of tax credit investments
|
3,228
|
|
|
7,173
|
|
||
Telecommunications expense
|
2,287
|
|
|
2,268
|
|
||
Other
|
16,539
|
|
|
11,660
|
|
||
Total non-interest expense
|
$
|
155,656
|
|
|
$
|
147,795
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
($ in thousands)
|
||||||
Total non-interest expense
|
$
|
155,656
|
|
|
$
|
147,795
|
|
Less: Severance expense (pre-tax)
|
—
|
|
|
4,838
|
|
||
Less: Amortization of tax credit investments (pre-tax)
|
3,228
|
|
|
7,173
|
|
||
Less: Merger related expenses (pre-tax)
|
1,302
|
|
|
—
|
|
||
Total non-interest expense, adjusted
|
$
|
151,126
|
|
|
$
|
135,784
|
|
Net interest income
|
$
|
265,339
|
|
|
$
|
218,648
|
|
Total non-interest income
|
41,397
|
|
|
107,673
|
|
||
Less: Gain on sale-leaseback transaction (pre-tax)
|
—
|
|
|
78,505
|
|
||
Add: Losses on securities transactions, net (pre-tax)
|
40
|
|
|
32
|
|
||
Total net interest income and non-interest income
|
$
|
306,776
|
|
|
$
|
247,848
|
|
Efficiency ratio
|
50.75
|
%
|
|
45.29
|
%
|
||
Efficiency ratio, adjusted
|
49.26
|
%
|
|
54.79
|
%
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||
|
Consumer
Lending
|
|
Commercial
Lending
|
|
Investment
Management
|
|
Corporate
and Other
Adjustments
|
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Average interest earning assets
|
$
|
7,217,144
|
|
|
$
|
22,782,284
|
|
|
$
|
4,674,647
|
|
|
$
|
—
|
|
|
$
|
34,674,075
|
|
Income (loss) before income taxes
|
16,241
|
|
|
102,795
|
|
|
7,830
|
|
|
(10,469
|
)
|
|
116,397
|
|
|||||
Annualized return on average interest earning assets (before tax)
|
0.90
|
%
|
|
1.80
|
%
|
|
0.67
|
%
|
|
N/A
|
|
|
1.34
|
%
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Consumer
Lending
|
|
Commercial
Lending
|
|
Investment
Management
|
|
Corporate
and Other
Adjustments
|
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Average interest earning assets
|
$
|
6,821,057
|
|
|
$
|
18,433,676
|
|
|
$
|
4,308,174
|
|
|
$
|
—
|
|
|
$
|
29,562,907
|
|
Income before income taxes
|
19,055
|
|
|
82,512
|
|
|
8,742
|
|
|
60,217
|
|
|
170,526
|
|
|||||
Annualized return on average interest earning assets (before tax)
|
1.12
|
%
|
|
1.79
|
%
|
|
0.81
|
%
|
|
N/A
|
|
|
2.31
|
%
|
|
Estimated Change in
Future Net Interest Income
|
|||||
Changes in Interest Rates
|
Dollar
Change
|
|
Percentage
Change
|
|||
(in basis points)
|
($ in thousands)
|
|||||
+200
|
$
|
50,758
|
|
|
5.01
|
%
|
+100
|
33,434
|
|
|
3.30
|
|
|
–100
|
(53,735
|
)
|
|
(5.30
|
)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
|
($ in thousands)
|
||||||
FHLB advances:
|
|
|
|
||||
Average balance outstanding
|
$
|
937,253
|
|
|
$
|
1,681,844
|
|
Maximum outstanding at any month-end during the period
|
1,510,000
|
|
|
2,510,000
|
|
||
Balance outstanding at end of period
|
1,510,000
|
|
|
940,000
|
|
||
Weighted average interest rate during the period
|
0.28
|
%
|
|
1.88
|
%
|
||
Weighted average interest rate at the end of the period
|
0.65
|
|
|
1.85
|
|
|
March 31, 2020
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
Held to maturity investment grades: *
|
|
|
|
|
|
|
|
||||||||
AAA Rated
|
$
|
1,971,954
|
|
|
$
|
67,584
|
|
|
$
|
(82
|
)
|
|
$
|
2,039,456
|
|
AA Rated
|
208,522
|
|
|
5,280
|
|
|
(30
|
)
|
|
213,772
|
|
||||
A Rated
|
16,062
|
|
|
364
|
|
|
—
|
|
|
16,426
|
|
||||
BBB Rated
|
10,704
|
|
|
112
|
|
|
(262
|
)
|
|
10,554
|
|
||||
Not rated
|
109,791
|
|
|
449
|
|
|
(7,510
|
)
|
|
102,730
|
|
||||
Total investment securities held to maturity
|
$
|
2,317,033
|
|
|
$
|
73,789
|
|
|
$
|
(7,884
|
)
|
|
$
|
2,382,938
|
|
Available for sale investment grades: *
|
|
|
|
|
|
|
|
||||||||
AAA Rated
|
$
|
1,540,946
|
|
|
$
|
45,394
|
|
|
$
|
(898
|
)
|
|
$
|
1,585,442
|
|
AA Rated
|
61,268
|
|
|
743
|
|
|
(15
|
)
|
|
61,996
|
|
||||
A Rated
|
19,729
|
|
|
239
|
|
|
(39
|
)
|
|
19,929
|
|
||||
BBB Rated
|
28,062
|
|
|
238
|
|
|
(1,536
|
)
|
|
26,764
|
|
||||
Non-investment grade
|
6,831
|
|
|
—
|
|
|
(53
|
)
|
|
6,778
|
|
||||
Not rated
|
48,945
|
|
|
512
|
|
|
(524
|
)
|
|
48,933
|
|
||||
Total investment securities available for sale
|
$
|
1,705,781
|
|
|
$
|
47,126
|
|
|
$
|
(3,065
|
)
|
|
$
|
1,749,842
|
|
|
*
|
Rated using external rating agencies. Ratings categories include the entire range. For example, “A rated” includes A+, A, and A-. Split rated securities with two ratings are categorized at the higher of the rating levels.
|
|
March 31,
2020 |
|
December 31,
2019 |
|
September 30,
2019 |
|
June 30,
2019 |
|
March 31,
2019 |
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
4,998,731
|
|
|
$
|
4,825,997
|
|
|
$
|
4,695,608
|
|
|
$
|
4,615,765
|
|
|
$
|
4,504,927
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
16,390,236
|
|
|
15,996,741
|
|
|
13,365,454
|
|
|
12,798,017
|
|
|
12,665,425
|
|
|||||
Construction
|
1,727,046
|
|
|
1,647,018
|
|
|
1,537,590
|
|
|
1,528,968
|
|
|
1,454,199
|
|
|||||
Total commercial real estate
|
18,117,282
|
|
|
17,643,759
|
|
|
14,903,044
|
|
|
14,326,985
|
|
|
14,119,624
|
|
|||||
Residential mortgage
|
4,478,982
|
|
|
4,377,111
|
|
|
4,133,331
|
|
|
4,072,450
|
|
|
4,071,237
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
481,751
|
|
|
487,272
|
|
|
489,808
|
|
|
501,646
|
|
|
513,066
|
|
|||||
Automobile
|
1,436,734
|
|
|
1,451,623
|
|
|
1,436,608
|
|
|
1,362,466
|
|
|
1,347,759
|
|
|||||
Other consumer
|
914,587
|
|
|
913,446
|
|
|
908,760
|
|
|
922,850
|
|
|
866,505
|
|
|||||
Total consumer loans
|
2,833,072
|
|
|
2,852,341
|
|
|
2,835,176
|
|
|
2,786,962
|
|
|
2,727,330
|
|
|||||
Total loans*
|
$
|
30,428,067
|
|
|
$
|
29,699,208
|
|
|
$
|
26,567,159
|
|
|
$
|
25,802,162
|
|
|
$
|
25,423,118
|
|
As a percent of total loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
16.5
|
%
|
|
16.2
|
%
|
|
17.7
|
%
|
|
17.9
|
%
|
|
17.7
|
%
|
|||||
Commercial real estate
|
59.5
|
|
|
59.5
|
|
|
56.1
|
|
|
55.5
|
|
|
55.6
|
|
|||||
Residential mortgage
|
14.6
|
|
|
14.7
|
|
|
15.5
|
|
|
15.8
|
|
|
16.0
|
|
|||||
Consumer loans
|
9.4
|
|
|
9.6
|
|
|
10.7
|
|
|
10.8
|
|
|
10.7
|
|
|||||
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
*
|
Includes net unearned discount and deferred loan fees of $76.4 million at March 31, 2020 and unearned premiums and deferred loan fees of $12.6 million, $18.3 million, $19.6 million and $20.5 million at March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively. Net unearned discounts and deferred loan fees at March 31, 2020 include the non-credit discount on PCD loans.
|
|
March 31,
2020 |
|
December 31,
2019 |
|
September 30,
2019 |
|
June 30,
2019 |
|
March 31,
2019 |
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Accruing past due loans: *
|
|
||||||||||||||||||
30 to 59 days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
9,780
|
|
|
$
|
11,700
|
|
|
$
|
5,702
|
|
|
$
|
14,119
|
|
|
$
|
5,120
|
|
Commercial real estate
|
41,664
|
|
|
2,560
|
|
|
20,851
|
|
|
6,202
|
|
|
39,362
|
|
|||||
Construction
|
7,119
|
|
|
1,486
|
|
|
11,523
|
|
|
—
|
|
|
1,911
|
|
|||||
Residential mortgage
|
38,965
|
|
|
17,143
|
|
|
12,945
|
|
|
19,131
|
|
|
15,856
|
|
|||||
Total Consumer
|
19,508
|
|
|
13,704
|
|
|
13,079
|
|
|
11,932
|
|
|
6,647
|
|
|||||
Total 30 to 59 days past due
|
117,036
|
|
|
46,593
|
|
|
64,100
|
|
|
51,384
|
|
|
68,896
|
|
|||||
60 to 89 days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
7,624
|
|
|
2,227
|
|
|
3,158
|
|
|
4,135
|
|
|
1,756
|
|
|||||
Commercial real estate
|
15,963
|
|
|
4,026
|
|
|
735
|
|
|
354
|
|
|
2,156
|
|
|||||
Construction
|
49
|
|
|
1,343
|
|
|
7,129
|
|
|
1,342
|
|
|
—
|
|
|||||
Residential mortgage
|
9,307
|
|
|
4,192
|
|
|
4,417
|
|
|
3,635
|
|
|
3,635
|
|
|||||
Total Consumer
|
2,309
|
|
|
2,527
|
|
|
1,577
|
|
|
1,484
|
|
|
990
|
|
|||||
Total 60 to 89 days past due
|
35,252
|
|
|
14,315
|
|
|
17,016
|
|
|
10,950
|
|
|
8,537
|
|
|||||
90 or more days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
4,049
|
|
|
3,986
|
|
|
4,133
|
|
|
3,298
|
|
|
2,670
|
|
|||||
Commercial real estate
|
161
|
|
|
579
|
|
|
1,125
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
1,798
|
|
|
2,042
|
|
|
1,347
|
|
|
1,054
|
|
|
1,402
|
|
|||||
Total Consumer
|
1,092
|
|
|
711
|
|
|
756
|
|
|
359
|
|
|
523
|
|
|||||
Total 90 or more days past due
|
7,100
|
|
|
7,318
|
|
|
7,361
|
|
|
4,711
|
|
|
4,595
|
|
|||||
Total accruing past due loans
|
$
|
159,388
|
|
|
$
|
68,226
|
|
|
$
|
88,477
|
|
|
$
|
67,045
|
|
|
$
|
82,028
|
|
Non-accrual loans: *
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
132,622
|
|
|
$
|
68,636
|
|
|
$
|
75,311
|
|
|
$
|
76,216
|
|
|
$
|
76,270
|
|
Commercial real estate
|
41,616
|
|
|
9,004
|
|
|
9,560
|
|
|
6,231
|
|
|
2,663
|
|
|||||
Construction
|
2,972
|
|
|
356
|
|
|
356
|
|
|
—
|
|
|
378
|
|
|||||
Residential mortgage
|
24,625
|
|
|
12,858
|
|
|
13,772
|
|
|
12,069
|
|
|
11,921
|
|
|||||
Total Consumer
|
4,095
|
|
|
2,204
|
|
|
2,050
|
|
|
1,999
|
|
|
2,178
|
|
|||||
Total non-accrual loans
|
205,930
|
|
|
93,058
|
|
|
101,049
|
|
|
96,515
|
|
|
93,410
|
|
|||||
Other real estate owned (OREO)
|
10,198
|
|
|
9,414
|
|
|
6,415
|
|
|
7,161
|
|
|
7,317
|
|
|||||
Other repossessed assets
|
3,842
|
|
|
1,276
|
|
|
2,568
|
|
|
2,358
|
|
|
2,628
|
|
|||||
Non-accrual debt securities
|
531
|
|
|
680
|
|
|
680
|
|
|
680
|
|
|
—
|
|
|||||
Total non-performing assets (NPAs)
|
$
|
220,501
|
|
|
$
|
104,428
|
|
|
$
|
110,712
|
|
|
$
|
106,714
|
|
|
$
|
103,355
|
|
Performing troubled debt restructured loans
|
$
|
48,024
|
|
|
$
|
73,012
|
|
|
$
|
79,364
|
|
|
$
|
74,385
|
|
|
$
|
73,081
|
|
Total non-accrual loans as a % of loans
|
0.68
|
%
|
|
0.31
|
%
|
|
0.38
|
%
|
|
0.37
|
%
|
|
0.37
|
%
|
|||||
Total NPAs as a % of loans and NPAs
|
0.72
|
|
|
0.35
|
|
|
0.41
|
|
|
0.41
|
|
|
0.40
|
|
|||||
Total accruing past due and non-accrual loans as a % of loans
|
1.20
|
|
|
0.54
|
|
|
0.71
|
|
|
0.63
|
|
|
0.69
|
|
|||||
Allowance for loan losses as a % of non-accrual loans
|
137.59
|
|
|
173.83
|
|
|
160.17
|
|
|
160.71
|
|
|
165.27
|
|
|
*
|
Past due loans and non-accrual loans presented in periods prior to March 31, 2020 exclude PCI loans. PCI loans were accounted for on a pool basis and are were not subject to delinquency classification.
|
•
|
Assumes that the COVID-19 crisis will persist and continue to meaningfully impact the economy
|
•
|
National unemployment rate peaks at 16.9 percent in the second quarter of 2020 and will remain elevated throughout the remainder of the year.
|
•
|
Federal funds interest rates will remain at or near zero for foreseeable future.
|
•
|
A prolonged downturn in the economy until the fourth quarter of 2021.
|
|
Three Months Ended
|
||||||||||
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
|
($ in thousands)
|
||||||||||
Average loans outstanding
|
$
|
29,999,428
|
|
|
$
|
27,968,383
|
|
|
$
|
25,254,733
|
|
Beginning balance - Allowance for credit losses for loans
|
164,604
|
|
|
164,770
|
|
|
156,295
|
|
|||
Impact of ASU No. 2016-13 adoption on January 1, 2020 (1)
|
37,989
|
|
|
—
|
|
|
—
|
|
|||
Allowance for purchased credit deteriorated (PCD) loans (1)
|
61,643
|
|
|
—
|
|
|
—
|
|
|||
Beginning balance, adjusted
|
264,236
|
|
|
164,770
|
|
|
156,295
|
|
|||
Loans charged-off: (2)
|
|
|
|
|
|
||||||
Commercial and industrial
|
(3,360
|
)
|
|
(5,378
|
)
|
|
(4,282
|
)
|
|||
Commercial real estate
|
(44
|
)
|
|
—
|
|
|
—
|
|
|||
Residential mortgage
|
(336
|
)
|
|
—
|
|
|
(15
|
)
|
|||
Total Consumer
|
(2,565
|
)
|
|
(2,700
|
)
|
|
(2,028
|
)
|
|||
Total charge-offs
|
(6,305
|
)
|
|
(8,078
|
)
|
|
(6,325
|
)
|
|||
Charged-off loans recovered:
|
|
|
|
|
|
||||||
Commercial and industrial
|
569
|
|
|
389
|
|
|
483
|
|
|||
Commercial real estate
|
73
|
|
|
1,166
|
|
|
21
|
|
|||
Construction
|
20
|
|
|
—
|
|
|
—
|
|
|||
Residential mortgage
|
50
|
|
|
53
|
|
|
1
|
|
|||
Total Consumer
|
794
|
|
|
886
|
|
|
486
|
|
|||
Total recoveries
|
1,506
|
|
|
2,494
|
|
|
991
|
|
|||
Net charge-offs
|
(4,799
|
)
|
|
(5,584
|
)
|
|
(5,334
|
)
|
|||
Provision charged for credit losses
|
33,924
|
|
|
5,418
|
|
|
8,000
|
|
|||
Ending balance - Allowance for credit for losses
|
$
|
293,361
|
|
|
$
|
164,604
|
|
|
$
|
158,961
|
|
Components of allowance for credit losses for loans:
|
|
|
|
|
|
||||||
Allowance for loan losses
|
$
|
283,342
|
|
|
$
|
161,759
|
|
|
$
|
154,381
|
|
Allowance for unfunded credit commitments
|
10,019
|
|
|
2,845
|
|
|
4,580
|
|
|||
Allowance for credit losses for loans
|
$
|
293,361
|
|
|
$
|
164,604
|
|
|
$
|
158,961
|
|
Components of provision for credit losses for loans:
|
|
|
|
|
|
||||||
Provision for credit losses for loans
|
$
|
33,851
|
|
|
$
|
5,490
|
|
|
$
|
7,856
|
|
Provision for unfunded credit commitments (3)
|
73
|
|
|
(72
|
)
|
|
144
|
|
|||
Total provision for credit losses for loans
|
$
|
33,924
|
|
|
$
|
5,418
|
|
|
$
|
8,000
|
|
|
|
|
|
|
|
||||||
Annualized ratio of net charge-offs to average loans outstanding
|
0.06
|
%
|
|
0.08
|
%
|
|
0.08
|
%
|
|||
Allowance for credit losses for loans as a % of total loans
|
0.96
|
|
|
0.55
|
|
|
0.63
|
|
|
(1)
|
The adjustment represents an increase in the allowance for credit losses for loans as a result of the adoption of ASU 2016-13 effective January 1, 2020.
|
(2)
|
Charge-offs and recoveries presented for periods prior to March 31, 2020 exclude loans formerly accounting for as PCI loans.
|
(3)
|
Periods prior to March 31, 2020 represent the allowance and provision for unfunded letters of credit only.
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|||||||||||||||
|
Allowance
Allocation *
|
|
Allocation
as a % of
Loan
Category
|
|
Allowance
Allocation*
|
|
Allocation
as a % of
Loan
Category
|
|
Allowance
Allocation*
|
|
Allocation
as a % of
Loan
Category
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
Loan Category:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and Industrial loans
|
$
|
127,437
|
|
|
2.55
|
%
|
|
$
|
104,059
|
|
|
2.22
|
%
|
|
$
|
94,630
|
|
|
2.20
|
%
|
Commercial real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial real estate
|
97,876
|
|
|
0.60
|
%
|
|
20,019
|
|
|
0.13
|
%
|
|
24,261
|
|
|
0.19
|
%
|
|||
Construction
|
13,709
|
|
|
0.79
|
%
|
|
25,654
|
|
|
1.56
|
%
|
|
23,501
|
|
|
1.62
|
%
|
|||
Total commercial real estate loans
|
111,585
|
|
|
0.62
|
%
|
|
45,673
|
|
|
0.26
|
%
|
|
47,762
|
|
|
0.34
|
%
|
|||
Residential mortgage loans
|
29,456
|
|
|
0.66
|
%
|
|
5,060
|
|
|
0.12
|
%
|
|
5,139
|
|
|
0.13
|
%
|
|||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Home equity
|
4,463
|
|
|
0.93
|
%
|
|
459
|
|
|
0.09
|
%
|
|
523
|
|
|
0.10
|
%
|
|||
Auto and other consumer
|
10,401
|
|
|
0.44
|
%
|
|
6,508
|
|
|
0.28
|
%
|
|
6,327
|
|
|
0.29
|
%
|
|||
Total consumer loans
|
14,864
|
|
|
0.52
|
%
|
|
6,967
|
|
|
0.24
|
%
|
|
6,850
|
|
|
0.25
|
%
|
|||
Total allowance for credit losses
|
283,342
|
|
|
0.93
|
%
|
|
161,759
|
|
|
0.55
|
%
|
|
154,381
|
|
|
0.63
|
%
|
|||
Allowance for unfunded credit commitments
|
10,019
|
|
|
|
|
2,845
|
|
|
|
|
4,580
|
|
|
|
||||||
Total allowance for credit losses for loans
|
$
|
293,361
|
|
|
|
|
$
|
164,604
|
|
|
|
|
$
|
158,961
|
|
|
|
|||
Allowance for credit losses for loans as a % loans
|
|
|
0.96
|
%
|
|
|
|
0.55
|
%
|
|
|
|
0.63
|
%
|
|
*
|
CECL was adopted January 1, 2020. Prior periods reflect the allowance for credit losses for loans under the incurred loss model.
|
|
Actual
|
|
Minimum Capital
Requirements
|
|
To Be Well Capitalized
Under Prompt Corrective
Action Provision
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
As of March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-based Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
$
|
3,498,885
|
|
|
11.53
|
%
|
|
$
|
3,186,873
|
|
|
10.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Valley National Bank
|
3,488,963
|
|
|
11.50
|
|
|
3,186,126
|
|
|
10.50
|
|
|
$
|
3,034,406
|
|
|
10.00
|
%
|
||
Common Equity Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,804,579
|
|
|
9.24
|
|
|
2,124,582
|
|
|
7.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
3,203,498
|
|
|
10.56
|
|
|
2,124,084
|
|
|
7.00
|
|
|
1,972,364
|
|
|
6.50
|
|
|||
Tier 1 Risk-based Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
3,019,420
|
|
|
9.95
|
|
|
2,579,849
|
|
|
8.50
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
3,203,498
|
|
|
10.56
|
|
|
2,579,245
|
|
|
8.50
|
|
|
2,427,525
|
|
|
8.00
|
|
|||
Tier 1 Leverage Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
3,019,420
|
|
|
8.24
|
|
|
1,465,195
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
3,203,498
|
|
|
8.75
|
|
|
1,464,864
|
|
|
4.00
|
|
|
1,831,080
|
|
|
5.00
|
|
|||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-based Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
$
|
3,427,134
|
|
|
11.72
|
%
|
|
$
|
3,070,687
|
|
|
10.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Valley National Bank
|
3,416,674
|
|
|
11.69
|
|
|
3,069,894
|
|
|
10.50
|
|
|
$
|
2,923,709
|
|
|
10.00
|
%
|
||
Common Equity Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,754,524
|
|
|
9.42
|
|
|
2,047,125
|
|
|
7.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
3,152,070
|
|
|
10.78
|
|
|
2,046,596
|
|
|
7.00
|
|
|
1,900,411
|
|
|
6.50
|
|
|||
Tier 1 Risk-based Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,968,530
|
|
|
10.15
|
|
|
2,485,795
|
|
|
8.50
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
3,152,070
|
|
|
10.78
|
|
|
2,485,153
|
|
|
8.50
|
|
|
2,338,967
|
|
|
8.00
|
|
|||
Tier 1 Leverage Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,968,530
|
|
|
8.76
|
|
|
1,355,378
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
3,152,070
|
|
|
9.31
|
|
|
1,354,693
|
|
|
4.00
|
|
|
1,693,366
|
|
|
5.00
|
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
|
($ in thousands, except for share data)
|
||||||
Common shares outstanding
|
403,744,148
|
|
|
403,278,390
|
|
||
Shareholders’ equity
|
$
|
4,420,998
|
|
|
$
|
4,384,188
|
|
Less: Preferred stock
|
209,691
|
|
|
209,691
|
|
||
Less: Goodwill and other intangible assets
|
1,458,095
|
|
|
1,460,397
|
|
||
Tangible common shareholders’ equity
|
$
|
2,753,212
|
|
|
$
|
2,714,100
|
|
Tangible book value per common share
|
$
|
6.82
|
|
|
$
|
6.73
|
|
Book value per common share
|
$
|
10.43
|
|
|
$
|
10.35
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
Total Number of
Shares Purchased (1)
|
|
Average
Price Paid
Per Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans (2)
|
|
Maximum Number of
Shares that May Yet Be
Purchased Under the Plans (2)
|
|||||
January 1, 2020 to January 31, 2020
|
|
88,454
|
|
|
$
|
11.44
|
|
|
—
|
|
|
4,112,465
|
|
February 1, 2020 to February 29, 2020
|
|
345,102
|
|
|
10.77
|
|
|
—
|
|
|
4,112,465
|
|
|
March 1, 2020 to March 31, 2020
|
|
15,329
|
|
|
9.44
|
|
|
—
|
|
|
4,112,465
|
|
|
Total
|
|
448,885
|
|
|
$
|
10.86
|
|
|
—
|
|
|
|
|
(1)
|
Represents repurchases made in connection with the vesting of employee restricted stock awards.
|
(2)
|
On January 17, 2007, Valley publicly announced its intention to repurchase up to 4.7 million outstanding common shares in the open market or in privately negotiated transactions. The repurchase plan has no stated expiration date. No repurchase plans or programs expired or terminated during the three months ended March 31, 2020.
|
Item 6.
|
Exhibits
|
|
*
|
Filed herewith.
|
**
|
Furnished herewith
|
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL BANCORP
|
|
|
|
|
(Registrant)
|
|
|
|
||
Date:
|
|
|
|
/s/ Ira Robbins
|
May 8, 2020
|
|
|
|
Ira Robbins
|
|
|
|
|
Chairman of the Board, President
|
|
|
|
|
and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
||
Date:
|
|
|
|
/s/ Michael D. Hagedorn
|
May 8, 2020
|
|
|
|
Michael D. Hagedorn
|
|
|
|
|
Senior Executive Vice President and
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer)
|
1 Year Valley National Bancorp Chart |
1 Month Valley National Bancorp Chart |
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