WTFC-2015.03.31-10Q
Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _________________________________________
FORM 10-Q
_________________________________________
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2015
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to
Commission File Number 001-35077
_____________________________________ 
WINTRUST FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter) 
Illinois
36-3873352
(State of incorporation or organization)
(I.R.S. Employer Identification No.)
9700 W. Higgins Road, Suite 800
Rosemont, Illinois 60018
(Address of principal executive offices)

(847) 939-9000
(Registrant’s telephone number, including area code)
______________________________________ 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer
 
þ
 
 
Accelerated filer
 
¨
Non-accelerated filer
 
¨
(Do not check if a smaller reporting company)
 
Smaller reporting company
 
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common Stock — no par value, 47,420,182 shares, as of April 30, 2015
 


Table of Contents

TABLE OF CONTENTS
 
 
 
Page
 
PART I. — FINANCIAL INFORMATION
 
ITEM 1.
ITEM 2.
ITEM 3.
ITEM 4.
 
PART II. — OTHER INFORMATION
 
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
Defaults Upon Senior Securities
NA
ITEM 4.
Mine Safety Disclosures
NA
ITEM 5.
Other Information
NA
ITEM 6.
 


Table of Contents

PART I
ITEM 1. FINANCIAL STATEMENTS
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
 
(Unaudited)
 
 
 
(Unaudited)
(In thousands, except share data)
March 31,
2015
 
December 31,
2014
 
March 31,
2014
Assets
 
 
 
 
 
Cash and due from banks
$
286,743

 
$
225,136

 
$
330,262

Federal funds sold and securities purchased under resale agreements
4,129

 
5,571

 
12,476

Interest bearing deposits with banks
697,799

 
998,437

 
540,964

Available-for-sale securities, at fair value
1,721,030

 
1,792,078

 
1,949,697

Trading account securities
7,811

 
1,206

 
1,068

Federal Home Loan Bank and Federal Reserve Bank stock
92,948

 
91,582

 
78,524

Brokerage customer receivables
25,287

 
24,221

 
26,884

Mortgage loans held-for-sale, at fair value
446,355

 
351,290

 
215,231

Loans, net of unearned income, excluding covered loans
14,953,059

 
14,409,398

 
13,133,160

Covered loans
209,694

 
226,709

 
312,478

Total loans
15,162,753

 
14,636,107

 
13,445,638

Less: Allowance for loan losses
94,446

 
91,705

 
92,275

Less: Allowance for covered loan losses
1,878

 
2,131

 
3,447

Net loans
15,066,429

 
14,542,271

 
13,349,916

Premises and equipment, net
559,281

 
555,228

 
531,763

FDIC indemnification asset
10,224

 
11,846

 
60,298

Accrued interest receivable and other assets
537,117

 
501,882

 
549,705

Trade date securities receivable
488,063

 
485,534

 
182,600

Goodwill
420,197

 
405,634

 
373,725

Other intangible assets
18,858

 
18,811

 
18,050

Total assets
$
20,382,271

 
$
20,010,727

 
$
18,221,163

Liabilities and Shareholders’ Equity
 
 
 
 
 
Deposits:
 
 
 
 
 
Non-interest bearing
$
3,779,609

 
$
3,518,685

 
$
2,773,922

Interest bearing
13,159,160

 
12,763,159

 
12,355,123

Total deposits
16,938,769

 
16,281,844

 
15,129,045

Federal Home Loan Bank advances
416,036

 
733,050

 
387,672

Other borrowings
187,006

 
196,465

 
231,086

Subordinated notes
140,000

 
140,000

 

Junior subordinated debentures
249,493

 
249,493

 
249,493

Trade date securities payable
2,929

 
3,828

 

Accrued interest payable and other liabilities
316,964

 
336,225

 
283,724

Total liabilities
18,251,197

 
17,940,905

 
16,281,020

Shareholders’ Equity:
 
 
 
 
 
Preferred stock, no par value; 20,000,000 shares authorized:
 
 
 
 
 
Series C - $1,000 liquidation value; 126,427 shares issued and outstanding at March 31, 2015, 126,467 shares issued and outstanding at December 31, 2014, and 126,477 shares issued and outstanding at March, 31, 2014
126,427

 
126,467

 
126,477

Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at March 31, 2015, December 31, 2014, and March 31, 2014; 47,474,721 shares issued at March 31, 2015, 46,881,108 shares issued at December 31, 2014, and 46,332,213 shares issued at March 31, 2014
47,475

 
46,881

 
46,332

Surplus
1,156,542

 
1,133,955

 
1,122,233

Treasury stock, at cost, 85,113 shares at March 31, 2015, 76,053 shares at December 31, 2014, and 73,253 shares at March 31, 2014
(3,948
)
 
(3,549
)
 
(3,380
)
Retained earnings
835,669

 
803,400

 
705,234

Accumulated other comprehensive loss
(31,091
)
 
(37,332
)
 
(56,753
)
Total shareholders’ equity
2,131,074

 
2,069,822

 
1,940,143

Total liabilities and shareholders’ equity
$
20,382,271

 
$
20,010,727

 
$
18,221,163

See accompanying notes to unaudited consolidated financial statements.

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Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
Three Months Ended
(In thousands, except per share data)
March 31,
2015
 
March 31,
2014
Interest income
 
 
 
Interest and fees on loans
$
154,676

 
$
147,030

Interest bearing deposits with banks
316

 
249

Federal funds sold and securities purchased under resale agreements
2

 
4

Available-for-sale securities
14,400

 
13,114

Trading account securities
13

 
9

Federal Home Loan Bank and Federal Reserve Bank stock
769

 
711

Brokerage customer receivables
181

 
209

Total interest income
170,357

 
161,326

Interest expense
 
 
 
Interest on deposits
11,814

 
11,923

Interest on Federal Home Loan Bank advances
2,156

 
2,643

Interest on other borrowings
788

 
750

Interest on subordinated notes
1,775

 

Interest on junior subordinated debentures
1,933

 
2,004

Total interest expense
18,466

 
17,320

Net interest income
151,891

 
144,006

Provision for credit losses
6,079

 
1,880

Net interest income after provision for credit losses
145,812

 
142,126

Non-interest income
 
 
 
Wealth management
18,100

 
16,813

Mortgage banking
27,800

 
16,428

Service charges on deposit accounts
6,297

 
5,346

Gains (losses) on available-for-sale securities, net
524

 
(33
)
Fees from covered call options
4,360

 
1,542

Trading losses, net
(477
)
 
(652
)
Other
7,937

 
6,085

Total non-interest income
64,541

 
45,529

Non-interest expense
 
 
 
Salaries and employee benefits
90,130

 
79,934

Equipment
7,836

 
7,403

Occupancy, net
12,351

 
10,993

Data processing
5,448

 
4,715

Advertising and marketing
3,907

 
2,816

Professional fees
4,664

 
3,454

Amortization of other intangible assets
1,013

 
1,163

FDIC insurance
2,987

 
2,951

OREO expense, net
1,411

 
3,976

Other
17,571

 
13,910

Total non-interest expense
147,318

 
131,315

Income before taxes
63,035

 
56,340

Income tax expense
23,983

 
21,840

Net income
$
39,052

 
$
34,500

Preferred stock dividends and discount accretion
1,581

 
1,581

Net income applicable to common shares
$
37,471

 
$
32,919

Net income per common share—Basic
$
0.79

 
$
0.71

Net income per common share—Diluted
$
0.76

 
$
0.68

Cash dividends declared per common share
$
0.11

 
$
0.10

Weighted average common shares outstanding
47,239

 
46,195

Dilutive potential common shares
4,233

 
4,509

Average common shares and dilutive common shares
51,472

 
50,704

See accompanying notes to unaudited consolidated financial statements.

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WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
 
 
Three Months Ended
(In thousands)
March 31,
2015
 
March 31,
2014
Net income
$
39,052

 
$
34,500

Unrealized gains on securities
 
 
 
Before tax
26,276

 
22,526

Tax effect
(10,331
)
 
(8,804
)
Net of tax
15,945

 
13,722

Less: Reclassification of net gains (losses) included in net income
 
 
 
Before tax
524

 
(33
)
Tax effect
(206
)
 
13

Net of tax
318

 
(20
)
Net unrealized gains on securities
15,627

 
13,742

Unrealized losses on derivative instruments
 
 
 
Before tax
(561
)
 
(98
)
Tax effect
220

 
39

Net unrealized losses on derivative instruments
(341
)
 
(59
)
Foreign currency translation adjustment
 
 
 
Before tax
(12,290
)
 
(9,959
)
Tax effect
3,245

 
2,559

Net foreign currency translation adjustment
(9,045
)
 
(7,400
)
Total other comprehensive income
6,241

 
6,283

Comprehensive income
$
45,293

 
$
40,783

See accompanying notes to unaudited consolidated financial statements.

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WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(In thousands)
Preferred
stock
 
Common
stock
 
Surplus
 
Treasury
stock
 
Retained
earnings
 
Accumulated
other
comprehensive
loss
 
Total
shareholders’
equity
Balance at December 31, 2013
$
126,477

 
$
46,181

 
$
1,117,032

 
$
(3,000
)
 
$
676,935

 
$
(63,036
)
 
$
1,900,589

Net income

 

 

 

 
34,500

 

 
34,500

Other comprehensive income, net of tax

 

 

 

 

 
6,283

 
6,283

Cash dividends declared on common stock

 

 

 

 
(4,620
)
 

 
(4,620
)
Dividends on preferred stock

 

 

 

 
(1,581
)
 

 
(1,581
)
Stock-based compensation

 

 
1,681

 

 

 

 
1,681

Common stock issued for:
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise of stock options and warrants

 
77

 
2,464

 
(271
)
 

 

 
2,270

Restricted stock awards

 
41

 
111

 
(109
)
 

 

 
43

Employee stock purchase plan

 
13

 
587

 

 

 

 
600

Director compensation plan

 
20

 
358

 

 

 

 
378

Balance at March 31, 2014
$
126,477

 
$
46,332

 
$
1,122,233

 
$
(3,380
)
 
$
705,234

 
$
(56,753
)
 
$
1,940,143

Balance at December 31, 2014
$
126,467

 
$
46,881

 
$
1,133,955

 
$
(3,549
)
 
$
803,400

 
$
(37,332
)
 
$
2,069,822

Net income

 

 

 

 
39,052

 

 
39,052

Other comprehensive income, net of tax

 

 

 

 

 
6,241

 
6,241

Cash dividends declared on common stock

 

 

 

 
(5,202
)
 

 
(5,202
)
Dividends on preferred stock

 

 

 

 
(1,581
)
 

 
(1,581
)
Stock-based compensation

 

 
2,271

 

 

 

 
2,271

Conversion of Series C preferred stock to common stock
(40
)
 
1

 
39

 

 

 

 

Common stock issued for:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions

 
422

 
18,582

 

 

 

 
19,004

Exercise of stock options and warrants

 
52

 
535

 
(130
)
 

 

 
457

Restricted stock awards

 
84

 
329

 
(269
)
 

 

 
144

Employee stock purchase plan

 
15

 
666

 

 

 

 
681

Director compensation plan

 
20

 
165

 

 

 

 
185

Balance at March 31, 2015
$
126,427

 
$
47,475

 
$
1,156,542

 
$
(3,948
)
 
$
835,669

 
$
(31,091
)
 
$
2,131,074

See accompanying notes to unaudited consolidated financial statements.

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WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
Three Months Ended
(In thousands)
March 31,
2015
 
March 31,
2014
Operating Activities:
 
 
 
Net income
$
39,052

 
$
34,500

Adjustments to reconcile net income to net cash (used for) provided by operating activities
 
 
 
Provision for credit losses
6,079

 
1,880

Depreciation and amortization
7,895

 
7,753

Stock-based compensation expense
2,271

 
1,681

Tax (expense) benefit from stock-based compensation arrangements
(623
)
 
3

Excess tax benefits from stock-based compensation arrangements
(471
)
 
(156
)
Net amortization of premium on securities
845

 
233

Mortgage servicing rights fair value change, net
514

 
253

Originations and purchases of mortgage loans held-for-sale
(941,651
)
 
(527,272
)
Proceeds from sales of mortgage loans held-for-sale
867,194

 
658,588

Increase in trading securities, net
(6,605
)
 
(571
)
Net (increase) decrease in brokerage customer receivables
(1,066
)
 
4,069

Gains on mortgage loans sold
(20,608
)
 
(12,220
)
(Gains) losses on available-for-sale securities, net
(524
)
 
33

Losses on sales of premises and equipment, net
81

 
795

Net (gains) losses on sales and fair value adjustments of other real estate owned
(549
)
 
2,460

(Increase) decrease in accrued interest receivable and other assets, net
(21,291
)
 
27,584

Decrease in accrued interest payable and other liabilities, net
(48,874
)
 
(37,348
)
Net Cash (Used for) Provided by Operating Activities
(118,331
)
 
162,265

Investing Activities:
 
 
 
Proceeds from maturities of available-for-sale securities
122,163

 
98,007

Proceeds from sales of available-for-sale securities
635,532

 
14,800

Purchases of available-for-sale securities
(629,008
)
 
(349,979
)
Net cash received for acquisitions
12,004

 

Proceeds from sales of other real estate owned
11,733

 
20,362

(Payments provided to) proceeds received from the FDIC related to reimbursements on covered assets
(2,056
)
 
9,669

Net decrease (increase) in interest bearing deposits with banks
300,706

 
(45,390
)
Net increase in loans
(407,522
)
 
(227,040
)
Purchases of premises and equipment, net
(5,902
)
 
(7,596
)
Net Cash Provided by (Used for) Investing Activities
37,650

 
(487,167
)
Financing Activities:
 
 
 
Increase in deposit accounts
486,960

 
460,551

Decrease in other borrowings, net
(20,327
)
 
(24,018
)
Decrease in Federal Home Loan Bank advances, net
(321,565
)
 
(30,000
)
Excess tax benefits from stock-based compensation arrangements
471

 
156

Issuance of common shares resulting from exercise of stock options, employee stock purchase plan and conversion of common stock warrants
2,489

 
3,668

Common stock repurchases
(399
)
 
(380
)
Dividends paid
(6,783
)
 
(6,201
)
Net Cash Provided by Financing Activities
140,846

 
403,776

Net Increase in Cash and Cash Equivalents
60,165

 
78,874

Cash and Cash Equivalents at Beginning of Period
230,707

 
263,864

Cash and Cash Equivalents at End of Period
$
290,872

 
$
342,738

See accompanying notes to unaudited consolidated financial statements.

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WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) Basis of Presentation
The consolidated financial statements of Wintrust Financial Corporation and Subsidiaries (“Wintrust” or “the Company”) presented herein are unaudited, but in the opinion of management reflect all necessary adjustments of a normal or recurring nature for a fair presentation of results as of the dates and for the periods covered by the consolidated financial statements.
The accompanying consolidated financial statements are unaudited and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations or cash flows in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (“2014 Form 10-K”). Operating results reported for the three-month periods are not necessarily indicative of the results which may be expected for the entire year. Reclassifications of certain prior period amounts have been made to conform to the current period presentation.
The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities. Management believes that the estimates made are reasonable, however, changes in estimates may be required if economic or other conditions develop differently from management’s expectations. Certain policies and accounting principles inherently have a greater reliance on the use of estimates, assumptions and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Management views critical accounting policies to be those which are highly dependent on subjective or complex judgments, estimates and assumptions, and where changes in those estimates and assumptions could have a significant impact on the financial statements. Management currently views the determination of the allowance for loan losses, allowance for covered loan losses and the allowance for losses on lending-related commitments, loans acquired with evidence of credit quality deterioration since origination, estimations of fair value, the valuations required for impairment testing of goodwill, the valuation and accounting for derivative instruments and income taxes as the accounting areas that require the most subjective and complex judgments, and as such could be the most subject to revision as new information becomes available. Descriptions of our significant accounting policies are included in Note 1 - “Summary of Significant Accounting Policies” of the Company’s 2014 Form 10-K.
(2) Recent Accounting Developments

Accounting for Investments in Qualified Affordable Housing Projects

In January 2014, the FASB issued ASU No. 2014-01, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects,” to provide guidance on accounting for investments by a reporting entity in flow-through limited liability entities that invest in affordable housing projects that qualify for the low-income housing tax credit. This ASU permits a new accounting treatment, if certain conditions are met, which allows the Company to amortize the initial cost of an investment in proportion to the amount of tax credits and other tax benefits received with recognition of the investment performance in income tax expense. The Company adopted this new guidance beginning January 1, 2015. The guidance did not have a material impact on the Company's consolidated financial statements.

Repossession of Residential Real Estate Collateral

In January 2014, the FASB issued ASU No. 2014-04, “Receivables - Troubled Debt Restructurings by Creditors (Topic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to address diversity in practice and clarify guidance regarding the accounting for an in-substance repossession or foreclosure of residential real estate collateral. This ASU clarifies that an in-substance repossession or foreclosure occurs upon either the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or the borrower conveying all interest in the residential real estate property to the creditor. Additionally, this ASU requires disclosure of both the amount of foreclosed residential real estate property held by the Company and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. The Company adopted this new guidance beginning January 1, 2015. The guidance did not have a material impact on the Company's consolidated financial statements.

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, which created "Revenue from Contracts with Customers (Topic 606), to clarify the principles for recognizing revenue and develop a common revenue standard for customer contracts. This ASU provides guidance regarding how an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount

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that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also added a new subtopic to the codification, ASC 340-40, "Other Assets and Deferred Costs: Contracts with Customers" to provide guidance on costs related to obtaining and fulfilling a customer contract. Furthermore, the new standard requires disclosure of sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. At this time, the guidance is effective for fiscal years beginning after December 15, 2016. In April 2015, the FASB proposed to defer the effective date by one year, which would result in the guidance becoming effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements.

Extraordinary and Unusual Items

In January 2015, the FASB issued ASU No. 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” to eliminate the concept of extraordinary items related to separately classifying, presenting and disclosing certain events and transactions that meet the criteria for that concept. This guidance is effective for fiscal years beginning after December 15, 2015 and is to be applied either prospectively or retrospectively. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

Consolidation

In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for fiscal years beginning after December 15, 2015 and is to be applied retrospectively. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements.

Debt Issuance Costs

In April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," to clarify the the presentation of debt issuance costs within the balance sheet. This ASU requires that an entity present debt issuance costs related to a recognized debt liability on the balance sheet as a direct deduction from the carrying amount of that debt liability, not as a separate asset. The ASU does not affect the current guidance for the recognition and measurement for these debt issuance costs. This guidance is effective for fiscal years beginning after December 15, 2015 and is to be applied retrospectively. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

(3) Business Combinations

Non-FDIC Assisted Bank Acquisitions

On January 16, 2015 the Company acquired Delavan Bancshares, Inc. ("Delavan"). Delavan was the parent company of Community Bank CBD, which had four banking locations. Community Bank CBD was merged into the Company's wholly-owned subsidiary Town Bank. The Company acquired assets with a fair value of approximately $223.9 million, including approximately $128.0 million of loans, and assumed liabilities with a fair value of approximately $185.6 million, including approximately $170.2 million of deposits. Additionally the Company recorded goodwill of $16.7 million on the acquisition.

On August 8, 2014, the Company, through its wholly-owned subsidiary Town Bank, acquired eleven branch offices and deposits of Talmer Bank & Trust. Subsequent to this date, the Company acquired loans from these branches as well. In total, the Company acquired assets with a fair value of approximately $361.3 million, including approximately $41.5 million of loans, and assumed liabilities with a fair value of approximately $361.3 million, including approximately $354.9 million of deposits. Additionally, the Company recorded goodwill of $9.7 million on the acquisition.

On July 11, 2014 the Company, through its wholly-owned subsidiary Town Bank, acquired the Pewaukee, Wisconsin branch of THE National Bank. The Company acquired assets with a fair value of approximately $94.1 million, including approximately $75.0 million of loans, and assumed deposits with a fair value of approximately $36.2 million. Additionally, the Company recorded goodwill of $16.3 million on the acquisition.

On May 16, 2014, the Company, through its wholly-owned subsidiary Hinsdale Bank and Trust Company ("Hinsdale Bank") acquired the Stone Park branch office and certain related deposits of Urban Partnership Bank ("UPB"). The Company assumed

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liabilities with a fair value of approximately $5.5 million, including approximately $5.4 million of deposits. Additionally, the Company recorded goodwill of $678,000 on the acquisition.

See Note 17 - Subsequent Events for discussion regarding the Company's announced acquisitions of Community Financial Shares, Inc ("CFIS"), North Bank and Suburban Illinois Bancorp, Inc. ("Suburban").

FDIC-Assisted Transactions
Since 2010, the Company acquired the banking operations, including the acquisition of certain assets and the assumption of liabilities, of nine financial institutions in FDIC-assisted transactions. Loans comprise the majority of the assets acquired in nearly all of these FDIC-assisted transactions since 2010, most of which are subject to loss sharing agreements with the FDIC whereby the FDIC has agreed to reimburse the Company for 80% of losses incurred on the purchased loans, other real estate owned (“OREO”), and certain other assets. Additionally, the loss share agreements with the FDIC require the Company to reimburse the FDIC in the event that actual losses on covered assets are lower than the original loss estimates agreed upon with the FDIC with respect of such assets in the loss share agreements. The Company refers to the loans subject to these loss-sharing agreements as “covered loans” and uses the term “covered assets” to refer to covered loans, covered OREO and certain other covered assets. The agreements with the FDIC require that the Company follow certain servicing procedures or risk losing the FDIC reimbursement of covered asset losses.
The loans covered by the loss sharing agreements are classified and presented as covered loans and the estimated reimbursable losses are recorded as an FDIC indemnification asset in the Consolidated Statements of Condition. The Company recorded the acquired assets and liabilities at their estimated fair values at the acquisition date. The fair value for loans reflected expected credit losses at the acquisition date. Therefore, the Company will only recognize a provision for credit losses and charge-offs on the acquired loans for any further credit deterioration subsequent to the acquisition date. See Note 7 — Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans for further discussion of the allowance on covered loans.
The loss share agreements with the FDIC cover realized losses on loans, foreclosed real estate and certain other assets. These loss share assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition dates were estimated based on projected cash flows available for loss-share based on the credit adjustments estimated for each loan pool and the loss share percentages. The loss share assets are recorded as FDIC indemnification assets on the Consolidated Statements of Condition. Subsequent to the acquisition date, reimbursements received from the FDIC for actual incurred losses will reduce the FDIC indemnification assets. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will also reduce the FDIC indemnification assets. Although these assets are contractual receivables from the FDIC, there are no contractual interest rates. Additional expected losses, to the extent such expected losses result in recognition of an allowance for covered loan losses, will increase the FDIC indemnification asset. The corresponding accretion is recorded as a component of non-interest income on the Consolidated Statements of Income.
The following table summarizes the activity in the Company’s FDIC indemnification asset during the periods indicated:
 
Three Months Ended
(Dollars in thousands)
March 31,
2015
 
March 31,
2014
Balance at beginning of period
$
11,846

 
$
85,672

Additions from acquisitions

 

Additions from reimbursable expenses
1,575

 
1,282

Amortization
(1,260
)
 
(1,603
)
Changes in expected reimbursements from the FDIC for changes in expected credit losses
(3,993
)
 
(15,384
)
Payments provided to (received from) the FDIC
2,056

 
(9,669
)
Balance at end of period
$
10,224

 
$
60,298

Specialty Finance Acquisition
On April 28, 2014, the Company, through its wholly-owned subsidiary, First Insurance Funding of Canada, Inc., acquired Policy Billing Services Inc. and Equity Premium Finance Inc., two affiliated Canadian insurance premium funding and payment services companies. Through this transaction, the Company acquired approximately $7.4 million of premium finance receivables. The Company recorded goodwill of approximately $6.5 million on the acquisition.

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Table of Contents

Purchased Credit Impaired ("PCI") Loans
Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. Expected future cash flows at the purchase date in excess of the fair value of loans are recorded as interest income over the life of the loans if the timing and amount of the future cash flows is reasonably estimable (“accretable yield”). The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference and represents probable losses in the portfolio.
In determining the acquisition date fair value of PCI loans, and in subsequent accounting, the Company aggregates these purchased loans into pools of loans by common risk characteristics, such as credit risk rating and loan type. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses.
The Company purchased a portfolio of life insurance premium finance receivables in 2009. These purchased life insurance premium finance receivables are valued on an individual basis with the accretable component being recognized into interest income using the effective yield method over the estimated remaining life of the loans. The non-accretable portion is evaluated each quarter and if the loans’ credit related conditions improve, a portion is transferred to the accretable component and accreted over future periods. In the event a specific loan prepays in whole, any remaining accretable and non-accretable discount is recognized in income immediately. If credit related conditions deteriorate, an allowance related to these loans will be established as part of the provision for credit losses.
See Note 6—Loans, for more information on PCI loans.
(4) Cash and Cash Equivalents
For purposes of the Consolidated Statements of Cash Flows, the Company considers cash and cash equivalents to include cash on hand, cash items in the process of collection, non-interest bearing amounts due from correspondent banks, federal funds sold and securities purchased under resale agreements with original maturities of three months or less.

(5) Available-For-Sale Securities
The following tables are a summary of the available-for-sale securities portfolio as of the dates shown:
 
 
March 31, 2015
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury
$
273,173

 
$
148

 
$
(1,847
)
 
$
271,474

U.S. Government agencies
665,177

 
5,348

 
(8,732
)
 
661,793

Municipal
264,949

 
6,485

 
(1,522
)
 
269,912

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
129,360

 
1,965

 
(1,321
)
 
130,004

Other
3,759

 
52

 
(1
)
 
3,810

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
280,679

 
5,983

 
(2,529
)
 
284,133

Collateralized mortgage obligations
45,299

 
435

 
(276
)
 
45,458

Equity securities
48,717

 
5,979

 
(250
)
 
54,446

Total available-for-sale securities
$
1,711,113

 
$
26,395

 
$
(16,478
)
 
$
1,721,030

 

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Table of Contents

 
December 31, 2014
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
U.S. Treasury
$
388,713

 
$
84

 
$
(6,992
)
 
$
381,805

U.S. Government agencies
686,106

 
4,113

 
(21,903
)
 
668,316

Municipal
234,951

 
5,318

 
(1,740
)
 
238,529

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
129,309

 
2,006

 
(1,557
)
 
129,758

Other
3,766

 
55

 

 
3,821

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
271,129

 
5,448

 
(4,928
)
 
271,649

Collateralized mortgage obligations
47,347

 
249

 
(535
)
 
47,061

Equity securities
46,592

 
4,872

 
(325
)
 
51,139

Total available-for-sale securities
$
1,807,913

 
$
22,145

 
$
(37,980
)
 
$
1,792,078

 
 
March 31, 2014
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
U.S. Treasury
$
354,109

 
$
263

 
$
(14,194
)
 
$
340,178

U.S. Government agencies
874,845

 
3,286

 
(49,856
)
 
828,275

Municipal
175,028

 
3,439

 
(3,167
)
 
175,300

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
129,413

 
2,306

 
(1,735
)
 
129,984

Other
4,986

 
100

 
(3
)
 
5,083

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
371,825

 
3,919

 
(13,188
)
 
362,556

Collateralized mortgage obligations
55,190

 
356

 
(799
)
 
54,747

Equity securities
50,570

 
3,543

 
(539
)
 
53,574

Total available-for-sale securities
$
2,015,966

 
$
17,212

 
$
(83,481
)
 
$
1,949,697


(1)
Consisting entirely of residential mortgage-backed securities, none of which are subprime.
The following table presents the portion of the Company’s available-for-sale securities portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at March 31, 2015:
 
 
Continuous unrealized
losses existing for
less than 12 months
 
Continuous unrealized
losses existing for
greater than 12 months
 
Total
(Dollars in thousands)
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury
$
198,297

 
$
(1,847
)
 
$

 
$

 
$
198,297

 
$
(1,847
)
U.S. Government agencies
163,928

 
(2,158
)
 
259,346

 
(6,574
)
 
423,274

 
(8,732
)
Municipal
41,611

 
(500
)
 
37,899

 
(1,022
)
 
79,510

 
(1,522
)
Corporate notes:
 
 
 
 
 
 
 
 
 
 
 
Financial issuers
9,968

 
(31
)
 
44,667

 
(1,290
)
 
54,635

 
(1,321
)
Other
999

 
(1
)
 

 

 
999

 
(1
)
Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
16,725

 
(92
)
 
127,433

 
(2,437
)
 
144,158

 
(2,529
)
Collateralized mortgage obligations
1,015

 
(1
)
 
10,502

 
(275
)
 
11,517

 
(276
)
Equity securities

 

 
8,611

 
(250
)
 
8,611

 
(250
)
Total
$
432,543

 
$
(4,630
)
 
$
488,458

 
$
(11,848
)
 
$
921,001

 
$
(16,478
)

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Table of Contents


The Company conducts a regular assessment of its investment securities to determine whether securities are other-than-temporarily impaired considering, among other factors, the nature of the securities, credit ratings or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period.

The Company does not consider securities with unrealized losses at March 31, 2015 to be other-than-temporarily impaired. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost bases, which may be the maturity dates of the securities. The unrealized losses within each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. Securities with continuous unrealized losses existing for more than twelve months were primarily agency bonds, treasury notes and mortgage-backed securities. Unrealized losses recognized on agency bonds, treasury notes and mortgage-backed securities are the result of increases in yields for similar types of securities which also have a longer duration and maturity.

The following table provides information as to the amount of gross gains and gross losses realized and proceeds received through the sales of available-for-sale investment securities:
 
 
Three months ended March 31,
(Dollars in thousands)
2015
 
2014
Realized gains
$
553

 
$
55

Realized losses
(29
)
 
(88
)
Net realized gains (losses)
$
524

 
$
(33
)
Other than temporary impairment charges

 

Gains (losses) on available-for-sale securities, net
$
524

 
$
(33
)
Proceeds from sales of available-for-sale securities
$
635,532

 
$
14,800



The amortized cost and fair value of securities as of March 31, 2015, December 31, 2014 and March 31, 2014, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:
 
 
March 31, 2015
 
December 31, 2014
 
March 31, 2014
(Dollars in thousands)
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
Due in one year or less
$
151,585

 
$
151,854

 
$
285,596

 
$
285,889

 
$
203,749

 
$
203,942

Due in one to five years
249,861

 
250,483

 
172,647

 
172,885

 
338,130

 
338,980

Due in five to ten years
837,926

 
836,598

 
331,389

 
325,644

 
344,296

 
330,546

Due after ten years
97,046

 
98,058

 
653,213

 
637,811

 
652,206

 
605,352

Mortgage-backed
325,978

 
329,591

 
318,476

 
318,710

 
427,015

 
417,303

Equity securities
48,717

 
54,446

 
46,592

 
51,139

 
50,570

 
53,574

Total available-for-sale securities
$
1,711,113

 
$
1,721,030

 
$
1,807,913

 
$
1,792,078

 
$
2,015,966

 
$
1,949,697

Securities having a carrying value of $1.1 billion at March 31, 2015, $1.1 billion at December 31, 2014 and $1.2 billion at March 31, 2014, were pledged as collateral for public deposits, trust deposits, FHLB advances, securities sold under repurchase agreements and derivatives. At March 31, 2015, there were no securities of a single issuer, other than U.S. Government-sponsored agency securities, which exceeded 10% of shareholders’ equity.

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Table of Contents

(6) Loans
The following table shows the Company’s loan portfolio by category as of the dates shown:
 
March 31,
 
December 31,
 
March 31,
(Dollars in thousands)
2015
 
2014
 
2014
Balance:
 
 
 
 
 
Commercial
$
4,211,932

 
$
3,924,394

 
$
3,439,197

Commercial real-estate
4,710,486

 
4,505,753

 
4,262,255

Home equity
709,283

 
716,293

 
707,748

Residential real-estate
495,925

 
483,542

 
426,769

Premium finance receivables—commercial
2,319,623

 
2,350,833

 
2,208,361

Premium finance receivables—life insurance
2,375,654

 
2,277,571

 
1,929,334

Consumer and other
130,156

 
151,012

 
159,496

Total loans, net of unearned income, excluding covered loans
$
14,953,059

 
$
14,409,398

 
$
13,133,160

Covered loans
209,694

 
226,709

 
312,478

Total loans
$
15,162,753

 
$
14,636,107

 
$
13,445,638

Mix:
 
 
 
 
 
Commercial
28
%
 
26
%
 
26
%
Commercial real-estate
31

 
31

 
32

Home equity
5

 
5

 
5

Residential real-estate
3

 
3

 
3

Premium finance receivables—commercial
15

 
16

 
17

Premium finance receivables—life insurance
16

 
16

 
14

Consumer and other
1

 
1

 
1

Total loans, net of unearned income, excluding covered loans
99
%
 
98
%
 
98
%
Covered loans
1

 
2

 
2

Total loans
100
%
 
100
%
 
100
%
The Company’s loan portfolio is generally comprised of loans to consumers and small to medium-sized businesses located within the geographic market areas that the banks serve. The premium finance receivables portfolios are made to customers throughout the United States and Canada. The Company strives to maintain a loan portfolio that is diverse in terms of loan type, industry, borrower and geographic concentrations. Such diversification reduces the exposure to economic downturns that may occur in different segments of the economy or in different industries.
Certain premium finance receivables are recorded net of unearned income. The unearned income portions of such premium finance receivables were $48.1 million at March 31, 2015, $46.9 million at December 31, 2014 and $40.3 million at March 31, 2014, respectively. Certain life insurance premium finance receivables attributable to the life insurance premium finance loan acquisition in 2009 as well as PCI loans are recorded net of credit discounts. See “Acquired Loan Information at Acquisition” below.
Total loans, excluding PCI loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $(3.7) million at March 31, 2015, $330,000 at December 31, 2014 and $(6.2) million at March 31, 2014. The net credit balances at March 31, 2015 and March 31, 2014 are primarily the result of purchase accounting adjustments related to acquisitions in 2015 and 2014.
It is the policy of the Company to review each prospective credit in order to determine the appropriateness and, when required, the adequacy of security or collateral necessary to obtain when making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to ensure access to collateral, in the event of default, through adherence to state lending laws and the Company’s credit monitoring procedures.

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Table of Contents

Acquired Loan Information at Acquisition—PCI Loans
As part of our previous acquisitions, we acquired loans for which there was evidence of credit quality deterioration since origination (PCI loans) and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments. The following table presents the unpaid principal balance and carrying value for these acquired loans:
 
March 31, 2015
 
December 31, 2014
 
Unpaid
Principal
 
Carrying
 
Unpaid
Principal
 
Carrying
(Dollars in thousands)
Balance
 
Value
 
Balance
 
Value
Bank acquisitions
$
277,163

 
$
222,837

 
$
285,809

 
$
227,229

Life insurance premium finance loans acquisition
394,632

 
389,048

 
399,665

 
393,479


The following table provides estimated details as of the date of acquisition on loans acquired in 2015 with evidence of credit quality deterioration since origination:
(Dollars in thousands)
Delavan
Contractually required payments including interest
$
15,791

Less: Nonaccretable difference
1,442

   Cash flows expected to be collected (1)  
14,349

Less: Accretable yield
898

    Fair value of PCI loans acquired
13,451


(1) Represents undiscounted expected principal and interest cash at acquisition.
See Note 7—Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans for further discussion regarding the allowance for loan losses associated with PCI loans at March 31, 2015.
Accretable Yield Activity - PCI Loans
Changes in expected cash flows may vary from period to period as the Company periodically updates its cash flow model assumptions for PCI loans. The factors that most significantly affect the estimates of gross cash flows expected to be collected, and accordingly the accretable yield, include changes in the benchmark interest rate indices for variable-rate products and changes in prepayment assumptions and loss estimates. The following table provides activity for the accretable yield of PCI loans:

Three Months Ended
March 31, 2015
 
Three Months Ended
March 31, 2014
(Dollars in thousands)
Bank Acquisitions

Life Insurance
Premium Finance Loans

Bank
Acquisitions

Life Insurance
Premium
Finance Loans
Accretable yield, beginning balance
$
77,485


$
1,617


$
107,655


$
8,254

Acquisitions
898







Accretable yield amortized to interest income
(5,504
)

(601
)

(7,770
)

(1,771
)
Accretable yield amortized to indemnification asset (1)
(3,576
)



(5,648
)


Reclassification from non-accretable difference (2)
1,103




8,580



Increases (decreases) in interest cash flows due to payments and changes in interest rates
(1,224
)



(5,143
)

78

Accretable yield, ending balance (3)
$
69,182


$
1,016


$
97,674


$
6,561


(1)
Represents the portion of the current period accreted yield, resulting from lower expected losses, applied to reduce the loss share indemnification asset.
(2)
Reclassification is the result of subsequent increases in expected principal cash flows.
(3)
As of March 31, 2015, the Company estimates that the remaining accretable yield balance to be amortized to the indemnification asset for the bank acquisitions is $15.8 million. The remainder of the accretable yield related to bank acquisitions is expected to be amortized to interest income.


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Table of Contents

Accretion to interest income from loans acquired in bank acquisitions totaled $5.5 million and $7.8 million in the first quarter of 2015 and 2014, respectively. These amounts include accretion from both covered and non-covered loans, and are included together within interest and fees on loans in the Consolidated Statements of Income.

(7) Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans
The tables below show the aging of the Company’s loan portfolio at March 31, 2015December 31, 2014 and March 31, 2014:
As of March 31, 2015
 
 
90+ days and still accruing
 
60-89 days past due
 
30-59 days past due
 
 
 
 
(Dollars in thousands)
Nonaccrual
 
 
 
 
Current
 
Total Loans
Loan Balances:
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
5,586

 
$

 
$
4,756

 
$
16,949

 
$
2,457,174

 
$
2,484,465

Franchise

 

 

 
457

 
225,305

 
225,762

Mortgage warehouse lines of credit

 

 

 

 
186,372

 
186,372

Community Advantage—homeowners association

 

 

 

 
108,382

 
108,382

Aircraft

 

 
291

 
389

 
6,295

 
6,975

Asset-based lending

 

 

 
4,819

 
805,866

 
810,685

Tax exempt

 

 

 

 
205,195

 
205,195

Leases

 

 
65

 
517

 
171,432

 
172,014

Other

 

 

 

 
2,735

 
2,735

PCI - commercial (1)

 
612

 

 

 
8,735

 
9,347

Total commercial
5,586

 
612

 
5,112

 
23,131

 
4,177,491

 
4,211,932

Commercial real-estate:
 
 
 
 
 
 
 
 
 
 
 
Residential construction

 

 

 

 
46,796

 
46,796

Commercial construction

 

 

 
992

 
209,039

 
210,031

Land
2,646

 

 

 
1,942

 
84,454

 
89,042

Office
8,243

 

 
171

 
3,144

 
731,568

 
743,126

Industrial
3,496

 

 
61

 
1,719

 
599,050

 
604,326

Retail
4,975

 

 

 
2,562

 
734,990

 
742,527

Multi-family
1,750

 

 
393

 
3,671

 
649,589

 
655,403

Mixed use and other
8,872

 

 
808

 
10,847

 
1,532,036

 
1,552,563

PCI - commercial real-estate (1)

 
18,120

 
4,639

 
3,242

 
40,671

 
66,672

Total commercial real-estate
29,982

 
18,120

 
6,072

 
28,119

 
4,628,193

 
4,710,486

Home equity
7,665

 

 
693

 
2,825

 
698,100

 
709,283

Residential real estate
14,248

 

 
753

 
8,735

 
469,826

 
493,562

PCI - residential real estate (1)

 
266

 

 
84

 
2,013

 
2,363

Premium finance receivables
 
 
 
 
 
 
 
 
 
 
 
Commercial insurance loans
15,902

 
8,062

 
4,476

 
19,392

 
2,271,791

 
2,319,623

Life insurance loans

 

 
8,994

 
5,415

 
1,972,197

 
1,986,606

PCI - life insurance loans (1)

 

 

 

 
389,048

 
389,048

Consumer and other
236

 
91

 
111

 
634

 
129,084

 
130,156

Total loans, net of unearned income, excluding covered loans
$
73,619

 
$
27,151

 
$
26,211

 
$
88,335

 
$
14,737,743

 
$
14,953,059

Covered loans
7,079

 
16,434

 
558

 
6,128

 
179,495

 
209,694

Total loans, net of unearned income
$
80,698

 
$
43,585

 
$
26,769

 
$
94,463

 
$
14,917,238

 
$
15,162,753


(1)
PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.

14

Table of Contents

As of December 31, 2014
 
 
90+ days and still accruing
 
60-89 days past due
 
30-59 days past due
 
 
 
 
(Dollars in thousands)
Nonaccrual
 
 
 
 
Current
 
Total Loans
Loan Balances:
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
9,132

 
$
474

 
$
3,161

 
$
7,492

 
$
2,213,105

 
$
2,233,364

Franchise

 

 
308

 
1,219

 
231,789

 
233,316

Mortgage warehouse lines of credit

 

 

 

 
139,003

 
139,003

Community Advantage—homeowners association

 

 

 

 
106,364

 
106,364

Aircraft

 

 

 

 
8,065

 
8,065

Asset-based lending
25

 

 
1,375

 
2,394

 
802,608

 
806,402

Tax exempt

 

 

 

 
217,487

 
217,487

Leases

 

 
77

 
315

 
159,744

 
160,136

Other

 

 

 

 
11,034

 
11,034

PCI - commercial (1)

 
365

 
202

 
138

 
8,518

 
9,223

Total commercial
9,157

 
839

 
5,123

 
11,558

 
3,897,717

 
3,924,394

Commercial real-estate
 
 
 
 
 
 
 
 
 
 
 
Residential construction

 

 
250

 
76

 
38,370

 
38,696

Commercial construction
230

 

 

 
2,023

 
185,513

 
187,766

Land
2,656

 

 

 
2,395

 
86,779

 
91,830

Office
7,288

 

 
2,621

 
1,374

 
694,149

 
705,432

Industrial
2,392

 

 

 
3,758

 
617,820

 
623,970

Retail
4,152

 

 
116

 
3,301

 
723,919

 
731,488

Multi-family
249

 

 
249

 
1,921

 
603,323

 
605,742

Mixed use and other
9,638

 

 
2,603

 
9,023

 
1,443,853

 
1,465,117

PCI - commercial real-estate (1)

 
10,976

 
6,393

 
4,016

 
34,327

 
55,712

Total commercial real-estate
26,605

 
10,976

 
12,232

 
27,887

 
4,428,053

 
4,505,753

Home equity
6,174

 

 
983

 
3,513

 
705,623

 
716,293

Residential real-estate
15,502

 

 
267

 
6,315

 
459,224

 
481,308

PCI - residential real-estate (1)