Maryland | 31-0724920 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | ||||
Smaller reporting company | ¨ | ||||
Emerging growth company | ¨ |
ABS | Asset-Backed Securities | |
ACL | Allowance for Credit Losses | |
AFS | Available-for-Sale | |
ALCO | Asset-Liability Management Committee | |
ALLL | Allowance for Loan and Lease Losses | |
ANPR | Advance Notice of Proposed Rulemaking | |
ASC | Accounting Standards Codification | |
ATM | Automated Teller Machine | |
AULC | Allowance for Unfunded Loan Commitments | |
Basel III | Refers to the final rule issued by the FRB and OCC and published in the Federal Register on October 11, 2013 | |
BHC | Bank Holding Companies | |
BHC Act | Bank Holding Company Act of 1956 | |
C&I | Commercial and Industrial | |
Camco Financial | Camco Financial Corp. | |
CCAR | Comprehensive Capital Analysis and Review | |
CDO | Collateralized Debt Obligations | |
CDs | Certificate of Deposit | |
CET1 | Common equity tier 1 on a transitional Basel III basis | |
CFPB | Bureau of Consumer Financial Protection | |
CISA | Cybersecurity Information Sharing Act | |
CMO | Collateralized Mortgage Obligations | |
CRA | Community Reinvestment Act | |
CRE | Commercial Real Estate | |
CREVF | Commercial Real Estate and Vehicle Finance | |
DIF | Deposit Insurance Fund | |
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | |
EFT | Electronic Fund Transfer | |
EPS | Earnings Per Share | |
EVE | Economic Value of Equity | |
FASB | Financial Accounting Standards Board | |
FDIC | Federal Deposit Insurance Corporation | |
FDICIA | Federal Deposit Insurance Corporation Improvement Act of 1991 | |
FHA | Federal Housing Administration | |
FHC | Financial Holding Company | |
FHLB | Federal Home Loan Bank |
FICO | Fair Isaac Corporation | |
FIRSTMERIT | FirstMerit Corporation | |
FRB | Federal Reserve Bank | |
FTE | Fully-Taxable Equivalent | |
FTP | Funds Transfer Pricing | |
GAAP | Generally Accepted Accounting Principles in the United States of America | |
HAA | Huntington Asset Advisors, Inc. | |
HASI | Huntington Asset Services, Inc. | |
HQLA | High Quality Liquid Asset | |
HTM | Held-to-Maturity | |
IRS | Internal Revenue Service | |
LCR | Liquidity Coverage Ratio | |
LGD | Loss-Given-Default | |
LIBOR | London Interbank Offered Rate | |
LIHTC | Low Income Housing Tax Credit | |
LTV | Loan to Value | |
Macquarie | Macquarie Equipment Finance, Inc. (U.S. operations) | |
MBS | Mortgage-Backed Securities | |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
MSA | Metropolitan Statistical Area | |
MSR | Mortgage Servicing Rights | |
NAICS | North American Industry Classification System | |
NALs | Nonaccrual Loans | |
NCO | Net Charge-off | |
NII | Net Interest Income | |
NIM | Net Interest Margin | |
NPAs | Nonperforming Assets | |
N.R. | Not relevant. Denominator of calculation is a gain in the current period compared with a loss in the prior period, or vice-versa | |
OCC | Office of the Comptroller of the Currency | |
OCI | Other Comprehensive Income (Loss) | |
OCR | Optimal Customer Relationship | |
OLEM | Other Loans Especially Mentioned | |
OREO | Other Real Estate Owned | |
OTTI | Other-Than-Temporary Impairment | |
PD | Probability-Of-Default | |
Plan | Huntington Bancshares Retirement Plan | |
RBHPCG | Regional Banking and The Huntington Private Client Group | |
REIT | Real Estate Investment Trust | |
ROC | Risk Oversight Committee | |
RWA | Risk-Weighted Assets | |
SAD | Special Assets Division | |
SBA | Small Business Administration | |
SEC | Securities and Exchange Commission | |
SERP | Supplemental Executive Retirement Plan | |
SRIP | Supplemental Retirement Income Plan | |
TCE | Tangible Common Equity | |
TDR | Troubled Debt Restructured Loan | |
U.S. Treasury | U.S. Department of the Treasury | |
UCS | Uniform Classification System | |
Unified | Unified Financial Securities, Inc. | |
UPB | Unpaid Principal Balance | |
USDA | U.S. Department of Agriculture | |
VIE | Variable Interest Entity | |
XBRL | eXtensible Business Reporting Language | |
Table 1 - Selected Quarterly Income Statement Data (1) | |||||||||||||||||||
(dollar amounts in thousands, except per share amounts) | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
Interest income | $ | 820,360 | $ | 814,858 | $ | 694,346 | $ | 565,658 | $ | 557,251 | |||||||||
Interest expense | 90,385 | 79,877 | 68,956 | 59,777 | 54,185 | ||||||||||||||
Net interest income | 729,975 | 734,981 | 625,390 | 505,881 | 503,066 | ||||||||||||||
Provision for credit losses | 67,638 | 74,906 | 63,805 | 24,509 | 27,582 | ||||||||||||||
Net interest income after provision for credit losses | 662,337 | 660,075 | 561,585 | 481,372 | 475,484 | ||||||||||||||
Service charges on deposit accounts | 83,420 | 91,577 | 86,847 | 75,613 | 70,262 | ||||||||||||||
Cards and payment processing income | 47,169 | 49,113 | 44,320 | 39,184 | 36,447 | ||||||||||||||
Mortgage banking income | 31,692 | 37,520 | 40,603 | 31,591 | 18,543 | ||||||||||||||
Trust and investment management services | 33,869 | 34,016 | 28,923 | 22,497 | 22,838 | ||||||||||||||
Insurance income | 15,264 | 16,486 | 15,865 | 15,947 | 16,225 | ||||||||||||||
Brokerage income | 15,758 | 17,014 | 14,719 | 14,599 | 15,502 | ||||||||||||||
Capital markets fees | 14,200 | 18,730 | 14,750 | 13,037 | 13,010 | ||||||||||||||
Bank owned life insurance income | 17,542 | 17,067 | 14,452 | 12,536 | 13,513 | ||||||||||||||
Gain on sale of loans | 12,822 | 24,987 | 7,506 | 9,265 | 5,395 | ||||||||||||||
Securities gains (losses) | (8 | ) | (1,771 | ) | 1,031 | 656 | — | ||||||||||||
Other income | 40,735 | 29,598 | 33,399 | 36,187 | 30,132 | ||||||||||||||
Total noninterest income | 312,463 | 334,337 | 302,415 | 271,112 | 241,867 | ||||||||||||||
Personnel costs | 382,000 | 359,755 | 405,024 | 298,949 | 285,397 | ||||||||||||||
Outside data processing and other services | 87,202 | 88,695 | 91,133 | 63,037 | 61,878 | ||||||||||||||
Equipment | 46,700 | 59,666 | 40,792 | 31,805 | 32,576 | ||||||||||||||
Net occupancy | 67,700 | 49,450 | 41,460 | 30,704 | 31,476 | ||||||||||||||
Professional services | 18,295 | 23,165 | 47,075 | 21,488 | 13,538 | ||||||||||||||
Marketing | 13,923 | 21,478 | 14,438 | 14,773 | 12,268 | ||||||||||||||
Deposit and other insurance expense | 20,099 | 15,772 | 14,940 | 12,187 | 11,208 | ||||||||||||||
Amortization of intangibles | 14,355 | 14,099 | 9,046 | 3,600 | 3,712 | ||||||||||||||
Other expense | 57,148 | 49,417 | 48,339 | 47,118 | 39,027 | ||||||||||||||
Total noninterest expense | 707,422 | 681,497 | 712,247 | 523,661 | 491,080 | ||||||||||||||
Income before income taxes | 267,378 | 312,915 | 151,753 | 228,823 | 226,271 | ||||||||||||||
Provision for income taxes | 59,284 | 73,952 | 24,749 | 54,283 | 54,957 | ||||||||||||||
Net income | 208,094 | 238,963 | 127,004 | 174,540 | 171,314 | ||||||||||||||
Dividends on preferred shares | 18,878 | 18,865 | 18,537 | 19,874 | 7,998 | ||||||||||||||
Net income applicable to common shares | $ | 189,216 | $ | 220,098 | $ | 108,467 | $ | 154,666 | $ | 163,316 | |||||||||
Average common shares—basic | 1,086,374 | 1,085,253 | 938,578 | 798,167 | 795,755 | ||||||||||||||
Average common shares—diluted | 1,108,617 | 1,104,358 | 952,081 | 810,371 | 808,349 | ||||||||||||||
Net income per common share—basic | $ | 0.17 | $ | 0.20 | $ | 0.12 | $ | 0.19 | $ | 0.21 | |||||||||
Net income per common share—diluted | 0.17 | 0.20 | 0.11 | 0.19 | 0.20 | ||||||||||||||
Cash dividends declared per common share | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 | ||||||||||||||
Return on average total assets | 0.84 | % | 0.95 | % | 0.58 | % | 0.96 | % | 0.96 | % | |||||||||
Return on average common shareholders’ equity | 8.2 | 9.4 | 5.4 | 9.6 | 10.4 | ||||||||||||||
Return on average tangible common shareholders’ equity (2) | 11.3 | 12.9 | 7.0 | 11.0 | 11.9 | ||||||||||||||
Net interest margin (3) | 3.30 | 3.25 | 3.18 | 3.06 | 3.11 | ||||||||||||||
Efficiency ratio (4) | 65.7 | 61.6 | 75.0 | 66.1 | 64.6 | ||||||||||||||
Effective tax rate | 22.2 | 23.6 | 16.3 | 23.7 | 24.3 | ||||||||||||||
Revenue—FTE | |||||||||||||||||||
Net interest income | $ | 729,975 | $ | 734,981 | $ | 625,390 | $ | 505,881 | $ | 503,066 | |||||||||
FTE adjustment | 12,058 | 12,560 | 10,598 | 10,091 | 9,159 | ||||||||||||||
Net interest income (3) | 742,033 | 747,541 | 635,988 | 515,972 | 512,225 | ||||||||||||||
Noninterest income | 312,463 | 334,337 | 302,415 | 271,112 | 241,867 | ||||||||||||||
Total revenue (3) | $ | 1,054,496 | $ | 1,081,878 | $ | 938,403 | $ | 787,084 | $ | 754,092 |
(1) | Comparisons for presented periods are impacted by a number of factors. Refer to the “Significant Items” for additional discussion regarding these key factors. |
(2) | Net income excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate. |
(3) | On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate. |
(4) | Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains. |
• | During the 2017 first quarter, $73 million of noninterest expense and $2 million of noninterest income was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.04 per common share. |
• | During the 2016 fourth quarter, $95 million of noninterest expense and a decrease of $1 million of noninterest income was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.06 per common share. |
• | During the 2016 first quarter, $6 million of noninterest expense was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.01 per common share. |
Table 2 - Significant Items Influencing Earnings Performance Comparison | |||||||||||||||||||||||
(dollar amounts in thousands, except per share amounts) | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||||||||||||||||
Amount | EPS (1) | Amount | EPS (1) | Amount | EPS (1) | ||||||||||||||||||
Net income | $ | 208,094 | $ | 238,963 | $ | 171,314 | |||||||||||||||||
Earnings per share, after-tax | $ | 0.17 | $ | 0.20 | $ | 0.20 | |||||||||||||||||
Significant Items—favorable (unfavorable) impact: | Earnings | EPS | Earnings | EPS | Earnings | EPS | |||||||||||||||||
Mergers and acquisitions, net expenses | $ | (71,145 | ) | $ | (96,142 | ) | $ | (6,406 | ) | ||||||||||||||
Tax impact | 24,901 | 33,457 | 2,006 | ||||||||||||||||||||
Mergers and acquisitions, after-tax | $ | (46,244 | ) | $ | (0.04 | ) | $ | (62,685 | ) | $ | (0.06 | ) | $ | (4,400 | ) | $ | (0.01 | ) | |||||
Litigation reserves | $ | — | $ | 41,587 | $ | — | |||||||||||||||||
Tax impact | — | (14,888 | ) | — | |||||||||||||||||||
Litigation reserves, after-tax | $ | — | $ | — | $ | 26,699 | $ | 0.02 | $ | — | $ | — |
(1) | Based upon the quarterly average outstanding diluted common shares. |
Table 3 - Consolidated Average Balance Sheet and Net Interest Margin Analysis | ||||||||||||||||||||||||||
(dollar amounts in millions) | ||||||||||||||||||||||||||
Average Balances | ||||||||||||||||||||||||||
Three Months Ended | Change | |||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | 1Q17 vs. 1Q16 | |||||||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | Amount | Percent | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Interest-bearing deposits in banks | $ | 100 | $ | 110 | $ | 95 | $ | 99 | $ | 98 | $ | 2 | 2 | % | ||||||||||||
Loans held for sale | 415 | 2,507 | 695 | 571 | 433 | (18 | ) | (4 | ) | |||||||||||||||||
Securities: | ||||||||||||||||||||||||||
Available-for-sale and other securities: | ||||||||||||||||||||||||||
Taxable | 12,800 | 13,734 | 9,785 | 6,904 | 6,633 | 6,167 | 93 | |||||||||||||||||||
Tax-exempt | 3,049 | 3,136 | 2,854 | 2,510 | 2,358 | 691 | 29 | |||||||||||||||||||
Total available-for-sale and other securities | 15,849 | 16,870 | 12,639 | 9,414 | 8,991 | 6,858 | 76 | |||||||||||||||||||
Trading account securities | 137 | 139 | 49 | 41 | 40 | 97 | 245 | |||||||||||||||||||
Held-to-maturity securities—taxable | 7,656 | 5,432 | 5,487 | 5,806 | 6,054 | 1,602 | 26 | |||||||||||||||||||
Total securities | 23,643 | 22,441 | 18,175 | 15,261 | 15,085 | 8,558 | 57 | |||||||||||||||||||
Loans and leases: (1) | ||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial and industrial | 27,922 | 27,727 | 24,957 | 21,344 | 20,649 | 7,273 | 35 | |||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Construction | 1,314 | 1,413 | 1,132 | 881 | 923 | 391 | 42 | |||||||||||||||||||
Commercial | 6,039 | 5,805 | 5,227 | 4,345 | 4,283 | 1,756 | 41 | |||||||||||||||||||
Commercial real estate | 7,353 | 7,218 | 6,359 | 5,226 | 5,206 | 2,147 | 41 | |||||||||||||||||||
Total commercial | 35,276 | 34,945 | 31,316 | 26,570 | 25,855 | 9,421 | 36 | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Automobile | 11,063 | 10,866 | 11,402 | 10,146 | 9,730 | 1,333 | 14 | |||||||||||||||||||
Home equity | 10,072 | 10,101 | 9,260 | 8,416 | 8,441 | 1,631 | 19 | |||||||||||||||||||
Residential mortgage | 7,777 | 7,690 | 7,012 | 6,187 | 6,018 | 1,759 | 29 | |||||||||||||||||||
RV and marine finance | 1,874 | 1,844 | 915 | — | — | N.R. | N.R. | |||||||||||||||||||
Other consumer | 919 | 959 | 817 | 613 | 574 | 345 | 60 | |||||||||||||||||||
Total consumer | 31,705 | 31,460 | 29,406 | 25,362 | 24,763 | 6,942 | 28 | |||||||||||||||||||
Total loans and leases | 66,981 | 66,405 | 60,722 | 51,932 | 50,618 | 16,363 | 32 | |||||||||||||||||||
Allowance for loan and lease losses | (636 | ) | (614 | ) | (623 | ) | (616 | ) | (604 | ) | (32 | ) | 5 | |||||||||||||
Net loans and leases | 66,345 | 65,791 | 60,099 | 51,316 | 50,014 | 16,331 | 33 | |||||||||||||||||||
Total earning assets | 91,139 | 91,463 | 79,687 | 67,863 | 66,234 | 24,905 | 38 | |||||||||||||||||||
Cash and due from banks | 2,011 | 1,538 | 1,325 | 1,001 | 1,013 | 998 | 99 | |||||||||||||||||||
Intangible assets | 2,387 | 2,421 | 1,547 | 726 | 730 | 1,657 | 227 | |||||||||||||||||||
All other assets | 5,442 | 5,559 | 4,962 | 4,149 | 4,223 | 1,219 | 29 | |||||||||||||||||||
Total assets | $ | 100,343 | $ | 100,367 | $ | 86,898 | $ | 73,123 | $ | 71,596 | $ | 28,747 | 40 | % | ||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Demand deposits—noninterest-bearing | $ | 21,730 | $ | 23,250 | $ | 20,033 | $ | 16,507 | $ | 16,334 | $ | 5,396 | 33 | % | ||||||||||||
Demand deposits—interest-bearing | 16,805 | 15,294 | 12,362 | 8,445 | 7,776 | 9,029 | 116 | |||||||||||||||||||
Total demand deposits | 38,535 | 38,544 | 32,395 | 24,952 | 24,110 | 14,425 | 60 | |||||||||||||||||||
Money market deposits | 18,653 | 18,618 | 18,453 | 19,534 | 19,682 | (1,029 | ) | (5 | ) | |||||||||||||||||
Savings and other domestic deposits | 11,970 | 12,272 | 8,889 | 5,402 | 5,306 | 6,664 | 126 | |||||||||||||||||||
Core certificates of deposit | 2,342 | 2,636 | 2,285 | 2,007 | 2,265 | 77 | 3 | |||||||||||||||||||
Total core deposits | 71,500 | 72,070 | 62,022 | 51,895 | 51,363 | 20,137 | 39 | |||||||||||||||||||
Other domestic time deposits of $250,000 or more | 470 | 391 | 382 | 402 | 455 | 15 | 3 | |||||||||||||||||||
Brokered deposits and negotiable CDs | 3,969 | 4,273 | 3,904 | 2,909 | 2,897 | 1,072 | 37 | |||||||||||||||||||
Deposits in foreign offices | — | 152 | 194 | 208 | 264 | (264 | ) | — |
Total deposits | 75,939 | 76,886 | 66,502 | 55,414 | 54,979 | 20,960 | 38 | |||||||||||||||||||
Short-term borrowings | 3,792 | 2,628 | 1,306 | 1,032 | 1,145 | 2,647 | 231 | |||||||||||||||||||
Long-term debt | 8,529 | 8,594 | 8,488 | 7,899 | 7,202 | 1,327 | 18 | |||||||||||||||||||
Total interest-bearing liabilities | 66,530 | 64,858 | 56,263 | 47,838 | 46,992 | 19,538 | 42 | |||||||||||||||||||
All other liabilities | 1,661 | 1,833 | 1,608 | 1,416 | 1,515 | 146 | 10 | |||||||||||||||||||
Shareholders’ equity | 10,422 | 10,426 | 8,994 | 7,362 | 6,755 | 3,667 | 54 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 100,343 | $ | 100,367 | $ | 86,898 | $ | 73,123 | $ | 71,596 | $ | 28,747 | 40 | % |
Table 3 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued) | ||||||||||||||
Average Yield Rates (2) | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
Fully-taxable equivalent basis (3) | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||
Assets: | ||||||||||||||
Interest-bearing deposits in banks | 1.09 | % | 0.64 | % | 0.64 | % | 0.25 | % | 0.21 | % | ||||
Loans held for sale | 3.82 | 2.95 | 3.53 | 3.89 | 3.99 | |||||||||
Securities: | ||||||||||||||
Available-for-sale and other securities: | ||||||||||||||
Taxable | 2.38 | 2.43 | 2.35 | 2.37 | 2.39 | |||||||||
Tax-exempt | 3.79 | 3.60 | 3.01 | 3.38 | 3.40 | |||||||||
Total available-for-sale and other securities | 2.65 | 2.65 | 2.50 | 2.64 | 2.65 | |||||||||
Trading account securities | 0.11 | 0.18 | 0.58 | 0.98 | 0.50 | |||||||||
Held-to-maturity securities—taxable | 2.36 | 2.43 | 2.41 | 2.44 | 2.43 | |||||||||
Total securities | 2.54 | 2.58 | 2.47 | 2.56 | 2.56 | |||||||||
Loans and leases: (1) | ||||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | 3.98 | 3.83 | 3.68 | 3.49 | 3.52 | |||||||||
Commercial real estate: | ||||||||||||||
Construction | 3.95 | 3.65 | 3.76 | 3.70 | 3.51 | |||||||||
Commercial | 3.69 | 3.54 | 3.54 | 3.35 | 3.59 | |||||||||
Commercial real estate | 3.74 | 3.56 | 3.58 | 3.41 | 3.57 | |||||||||
Total commercial | 3.93 | 3.78 | 3.66 | 3.47 | 3.53 | |||||||||
Consumer: | ||||||||||||||
Automobile | 3.55 | 3.57 | 3.37 | 3.15 | 3.17 | |||||||||
Home equity | 4.45 | 4.24 | 4.21 | 4.17 | 4.20 | |||||||||
Residential mortgage | 3.63 | 3.58 | 3.61 | 3.65 | 3.69 | |||||||||
RV and marine finance | 5.63 | 5.64 | 5.70 | — | — | |||||||||
Other consumer | 12.05 | 10.91 | 10.93 | 10.28 | 10.02 | |||||||||
Total consumer | 4.23 | 4.13 | 3.97 | 3.79 | 3.81 | |||||||||
Total loans and leases | 4.07 | 3.95 | 3.81 | 3.63 | 3.67 | |||||||||
Total earning assets | 3.70 | 3.60 | 3.52 | 3.41 | 3.44 | |||||||||
Liabilities: | ||||||||||||||
Deposits: | ||||||||||||||
Demand deposits—noninterest-bearing | — | — | — | — | — | |||||||||
Demand deposits—interest-bearing | 0.15 | 0.11 | 0.11 | 0.09 | 0.09 | |||||||||
Total demand deposits | 0.07 | 0.04 | 0.04 | 0.03 | 0.03 | |||||||||
Money market deposits | 0.26 | 0.24 | 0.24 | 0.24 | 0.24 | |||||||||
Savings and other domestic deposits | 0.22 | 0.25 | 0.21 | 0.11 | 0.13 | |||||||||
Core certificates of deposit | 0.39 | 0.29 | 0.43 | 0.79 | 0.82 | |||||||||
Total core deposits | 0.22 | 0.20 | 0.20 | 0.22 | 0.23 | |||||||||
Other domestic time deposits of $250,000 or more | 0.45 | 0.39 | 0.40 | 0.40 | 0.41 | |||||||||
Brokered deposits and negotiable CDs | 0.72 | 0.48 | 0.44 | 0.40 | 0.38 |
Deposits in foreign offices | — | 0.13 | 0.13 | 0.13 | 0.13 | |||||||||
Total deposits | 0.26 | 0.23 | 0.22 | 0.23 | 0.24 | |||||||||
Short-term borrowings | 0.63 | 0.36 | 0.29 | 0.36 | 0.32 | |||||||||
Long-term debt | 2.33 | 2.19 | 1.97 | 1.85 | 1.68 | |||||||||
Total interest-bearing liabilities | 0.54 | 0.48 | 0.49 | 0.50 | 0.46 | |||||||||
Net interest rate spread | 3.16 | 3.12 | 3.03 | 2.91 | 2.98 | |||||||||
Impact of noninterest-bearing funds on margin | 0.14 | 0.13 | 0.15 | 0.15 | 0.13 | |||||||||
Net interest margin | 3.30 | % | 3.25 | % | 3.18 | % | 3.06 | % | 3.11 | % |
(1) | For purposes of this analysis, NALs are reflected in the average balances of loans. |
(2) | Loan and lease, and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees. |
(3) | FTE yields are calculated assuming a 35% tax rate. |
Table 4 - Noninterest Income | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | |||||||||||||||||||||||||||||||||
Three Months Ended | 1Q17 vs. 1Q16 | 1Q17 vs. 4Q16 | |||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | Change | Change | |||||||||||||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||
Service charges on deposit accounts | $ | 83,420 | $ | 91,577 | $ | 86,847 | $ | 75,613 | $ | 70,262 | $ | 13,158 | 19 | % | $ | (8,157 | ) | (9 | )% | ||||||||||||||
Cards and payment processing income | 47,169 | 49,113 | 44,320 | 39,184 | 36,447 | 10,722 | 29 | (1,944 | ) | (4 | ) | ||||||||||||||||||||||
Mortgage banking income | 31,692 | 37,520 | 40,603 | 31,591 | 18,543 | 13,149 | 71 | (5,828 | ) | (16 | ) | ||||||||||||||||||||||
Trust and investment management services | 33,869 | 34,016 | 28,923 | 22,497 | 22,838 | 11,031 | 48 | (147 | ) | — | |||||||||||||||||||||||
Insurance income | 15,264 | 16,486 | 15,865 | 15,947 | 16,225 | (961 | ) | (6 | ) | (1,222 | ) | (7 | ) | ||||||||||||||||||||
Brokerage income | 15,758 | 17,014 | 14,719 | 14,599 | 15,502 | 256 | 2 | (1,256 | ) | (7 | ) | ||||||||||||||||||||||
Capital markets fees | 14,200 | 18,730 | 14,750 | 13,037 | 13,010 | 1,190 | 9 | (4,530 | ) | (24 | ) | ||||||||||||||||||||||
Bank owned life insurance income | 17,542 | 17,067 | 14,452 | 12,536 | 13,513 | 4,029 | 30 | 475 | 3 | ||||||||||||||||||||||||
Gain on sale of loans | 12,822 | 24,987 | 7,506 | 9,265 | 5,395 | 7,427 | 138 | (12,165 | ) | (49 | ) | ||||||||||||||||||||||
Securities gains (losses) | (8 | ) | (1,771 | ) | 1,031 | 656 | — | (8 | ) | — | 1,763 | (100 | ) | ||||||||||||||||||||
Other income | 40,735 | 29,598 | 33,399 | 36,187 | 30,132 | 10,603 | 35 | 11,137 | 38 | ||||||||||||||||||||||||
Total noninterest income | $ | 312,463 | $ | 334,337 | $ | 302,415 | $ | 271,112 | $ | 241,867 | $ | 70,596 | 29 | % | $ | (21,874 | ) | (7 | )% |
Table 5 - Noninterest Expense | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | |||||||||||||||||||||||||||||||||
Three Months Ended | 1Q17 vs. 1Q16 | 1Q17 vs. 4Q16 | |||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | Change | Change | |||||||||||||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||
Personnel costs | $ | 382,000 | $ | 359,755 | $ | 405,024 | $ | 298,949 | $ | 285,397 | $ | 96,603 | 34 | % | $ | 22,245 | 6 | % | |||||||||||||||
Outside data processing and other services | 87,202 | 88,695 | 91,133 | 63,037 | 61,878 | 25,324 | 41 | (1,493 | ) | (2 | ) | ||||||||||||||||||||||
Equipment | 46,700 | 59,666 | 40,792 | 31,805 | 32,576 | 14,124 | 43 | (12,966 | ) | (22 | ) | ||||||||||||||||||||||
Net occupancy | 67,700 | 49,450 | 41,460 | 30,704 | 31,476 | 36,224 | 115 | 18,250 | 37 | ||||||||||||||||||||||||
Professional services | 18,295 | 23,165 | 47,075 | 21,488 | 13,538 | 4,757 | 35 | (4,870 | ) | (21 | ) | ||||||||||||||||||||||
Marketing | 13,923 | 21,478 | 14,438 | 14,773 | 12,268 | 1,655 | 13 | (7,555 | ) | (35 | ) | ||||||||||||||||||||||
Deposit and other insurance expense | 20,099 | 15,772 | 14,940 | 12,187 | 11,208 | 8,891 | 79 | 4,327 | 27 | ||||||||||||||||||||||||
Amortization of intangibles | 14,355 | 14,099 | 9,046 | 3,600 | 3,712 | 10,643 | 287 | 256 | 2 | ||||||||||||||||||||||||
Other expense | 57,148 | 49,417 | 48,339 | 47,118 | 39,027 | 18,121 | 46 | 7,731 | 16 | ||||||||||||||||||||||||
Total noninterest expense | $ | 707,422 | $ | 681,497 | $ | 712,247 | $ | 523,661 | $ | 491,080 | $ | 216,342 | 44 | % | $ | 25,925 | 4 | % | |||||||||||||||
Number of employees (average full-time equivalent) | 16,331 | 15,993 | 14,511 | 12,363 | 12,386 | 3,945 | 32 | % | 338 | 2 | % |
Three Months Ended | |||||||||||
March 31, | December 31, | March 31, | |||||||||
(dollar amounts in thousands) | 2017 | 2016 | 2016 | ||||||||
Personnel costs | $ | 19,555 | $ | (5,385 | ) | $ | 474 | ||||
Outside data processing and other services | 14,475 | 15,420 | 363 | ||||||||
Equipment | 5,763 | 20,000 | — | ||||||||
Net occupancy | 23,342 | 7,146 | 20 | ||||||||
Professional services | 4,218 | 9,141 | 4,288 | ||||||||
Marketing | 816 | 4,340 | 13 | ||||||||
Other expense | 5,126 | 2,742 | 1,248 | ||||||||
Total noninterest expense adjustments | $ | 73,295 | $ | 53,404 | $ | 6,406 |
Three Months Ended |