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Delaware
(State or other jurisdiction of incorporation or organization)
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95-4703316
(I.R.S. Employer Identification No.)
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135 North Los Robles Ave., 7th Floor, Pasadena, California
(Address of principal executive offices)
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91101
(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $0.001 Par Value
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NASDAQ “Global Select Market”
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Large accelerated filer
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x
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Non-accelerated filer
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¨
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Accelerated filer
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¨
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Smaller reporting company
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¨
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•
|
the Company’s ability to compete effectively against other financial institutions in its banking markets;
|
•
|
changes in the commercial and consumer real estate markets;
|
•
|
changes in the Company’s costs of operation, compliance and expansion;
|
•
|
changes in the United States (“U.S.”) economy, including inflation, employment levels, rate of growth and general business conditions;
|
•
|
changes in government interest rate policies;
|
•
|
changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board (“Federal Reserve”) System, the Federal Deposit Insurance Corporation (“FDIC”), the U.S. Securities and Exchange Commission (“SEC”), the Consumer Financial Protection Bureau (“CFPB”) and the California Department of Business Oversight (“DBO”) — Division of Financial Institutions;
|
•
|
heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with retail customers;
|
•
|
changes in the economy of and monetary policy in the People’s Republic of China;
|
•
|
changes in income tax laws and regulations;
|
•
|
changes in accounting standards as may be required by the Financial Accounting Standards Board (“FASB”) or other regulatory agencies and their impact on critical accounting policies and assumptions;
|
•
|
changes in the equity and debt securities markets;
|
•
|
future credit quality and performance, including the Company’s expectations regarding future credit losses and allowance levels;
|
•
|
fluctuations of the Company’s stock price;
|
•
|
fluctuations in foreign currency exchange rates;
|
•
|
success and timing of the Company’s business strategies;
|
•
|
ability of the Company to adopt and successfully integrate new technologies into its business in a strategic manner;
|
•
|
impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions;
|
•
|
impact of potential federal tax increases and spending cuts;
|
•
|
impact of adverse judgments or settlements in litigation;
|
•
|
impact of regulatory enforcement actions;
|
•
|
changes in the Company’s ability to receive dividends from its subsidiaries;
|
•
|
impact of political developments, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions;
|
•
|
impact of natural or man-made disasters or calamities or conflicts;
|
•
|
continuing consolidation in the financial services industry;
|
•
|
the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms;
|
•
|
impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) on the Company’s business, business practices and cost of operations;
|
•
|
impact of adverse changes to the Company’s credit ratings from the major credit rating agencies;
|
•
|
impact of failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused;
|
•
|
adequacy of the Company’s risk management framework, disclosure controls and procedures and internal control over financial reporting;
|
•
|
the effect of the current low interest rate environment or changes in interest rates on the Company’s net interest income and net interest margin;
|
•
|
the effect of changes in the level of checking or saving account deposits on the Company’s funding costs and net interest margin; and
|
•
|
a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increased funding costs, reduced investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment on securities held in the Company’s available-for-sale investment securities portfolio.
|
•
|
require periodic reports and such additional information as the Federal Reserve may require;
|
•
|
require the Company to maintain certain levels of capital and, under the Dodd-Frank Act, limit the ability of bank holding companies to pay dividends or bonuses unless their capital levels exceed the capital conservation buffer (see
Item 1. Business — Supervision and Regulation — Capital Requirements
);
|
•
|
require bank holding companies to serve as a source of financial and managerial strength to subsidiary banks and commit resources, as necessary, to support each subsidiary bank. A bank holding company’s failure to meet its obligations to serve as a source of strength to its subsidiary banks will generally be considered by the Federal Reserve to be an unsafe and unsound banking practice or a violation of Federal Reserve regulations or both;
|
•
|
restrict the receipt and the payment of dividends;
|
•
|
terminate an activity or terminate control of or liquidate or divest certain nonbank subsidiaries, affiliates or investments if the Federal Reserve believes that the activity or the control of the nonbank subsidiary or affiliate constitutes a significant risk to the financial safety, soundness or stability of the bank holding company;
|
•
|
regulate provisions of certain bank holding company debt, including the authority to impose interest ceilings and reserve requirements on such debt and require prior approval to purchase or redeem the Company’s securities in certain situations;
|
•
|
require the prior approval of senior executive officer or director changes and prohibit golden parachute payments, including change in control agreements, or new employment agreements with such payment terms, which are contingent upon termination, under certain circumstances;
|
•
|
approve acquisitions and mergers with banks and consider certain competitive, management, financial and other factors in granting these approvals. DBO approvals may also be required for certain mergers and acquisitions.
|
•
|
risks to consumers and compliance with federal consumer financial laws, when it evaluates the policies and practices of a financial institution;
|
•
|
unfair, deceptive, or abusive practices, which the Dodd-Frank Act empowers CFPB to prevent through rulemaking, enforcement and examination;
|
•
|
rulemaking to implement various federal consumer statutes such as the Home Mortgage Disclosure Act, Truth in Lending Act, Real Estate Settlement Procedures Act and Electronic Fund Transfer Act;
|
•
|
the markets in which firms operate, and risks to consumers posed by activities in those markets; and
|
•
|
holding lenders accountable for discriminatory dealer markups with respect to the indirect auto business.
|
•
|
4.5% CET1 to risk-weighted assets;
|
•
|
6.0% Tier I capital (that is, CET1 plus Additional Tier I capital) to risk-weighted assets;
|
•
|
8.0% total capital (that is, Tier I capital plus Tier II capital) to risk-weighted assets; and
|
•
|
4.0% Tier I leverage ratio.
|
•
|
4.5% CET1 to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7%;
|
•
|
6.0% Tier I capital to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum Tier I capital ratio of at least 8.5%;
|
•
|
8.0% total capital to risk-weighted assets, plus the capital conservation buffer, effectively resulting in a minimum total capital ratio of at least 10.5%; and
|
•
|
4.0% Tier I leverage ratio.
|
•
|
consistent with the Basel I risk-based capital rules, assigning exposures secured by single-family residential properties to either a 50% risk weight for first-lien mortgages that meet prudent underwriting standards or a 100% risk weight category for all other mortgages;
|
•
|
providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (set at 0% under the Basel I risk-based capital rules);
|
•
|
assigning a 150% risk weight to all exposures that are nonaccrual or 90 days or more past due (set at 100% under the Basel I risk-based capital rules), except for those secured by single-family residential properties, which will be assigned a 100% risk weight, consistent with the Basel I risk-based capital rules;
|
•
|
applying a 150% risk weight instead of a 100% risk weight for certain high volatility CRE acquisition, development and construction loans; and
|
•
|
applying a 250% risk weight to the portion of mortgage servicing rights and deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks that are not deducted from CET1 capital (set at 100% under the Basel I risk-based capital rules).
|
•
|
The process the Company uses to estimate losses inherent in the Company’s credit exposure requires difficult, subjective and complex judgments, including forecasts of economic conditions and how these economic conditions might impair the ability of the borrowers to repay their loans. The level of uncertainty concerning economic conditions may adversely affect the accuracy of the Company’s estimates which may, in turn, impact the reliability of the process.
|
•
|
The Company’s commercial and residential borrowers may not be able to make timely repayments of their loans, or the decrease in value of real estate collateral securing the payment of such loans could result in credit losses, delinquencies, foreclosures and customer bankruptcies, any of which could have a material adverse effect on the Company’s operating results.
|
•
|
A decrease in the demand for loans and other products and services offered by us.
|
•
|
A decrease in deposit balances due to overall reductions in customers’ accounts.
|
•
|
The value of the available-for-sale investment securities portfolio that the Company holds may be adversely affected by defaults by debtors.
|
•
|
Future disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations, may result in an inability to borrow on favorable terms or at all from other financial institutions.
|
•
|
actual or anticipated quarterly fluctuations in the Company’s operating results and financial condition;
|
•
|
changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts;
|
•
|
failure to meet analysts’ revenue or earnings estimates;
|
•
|
speculation in the press or investment community;
|
•
|
strategic actions by the Company or its competitors, such as acquisitions or restructurings;
|
•
|
actions by institutional stockholders;
|
•
|
fluctuations in the stock price and operating results of the Company’s competitors;
|
•
|
general market conditions and, in particular, developments related to market conditions for the financial services industry;
|
•
|
proposed or adopted regulatory changes or developments;
|
•
|
anticipated or pending investigations, proceedings or litigation that involve or affect the Company; and
|
•
|
domestic and international economic factors unrelated to the Company’s performance.
|
|
||||||
|
|
2016
|
||||
|
|
High
|
|
Low
|
|
Cash
Dividends
|
First quarter
|
|
$41.07
|
|
$27.25
|
|
$0.20
|
Second quarter
|
|
$40.00
|
|
$31.34
|
|
$0.20
|
Third quarter
|
|
$37.59
|
|
$31.34
|
|
$0.20
|
Fourth quarter
|
|
$51.73
|
|
$36.31
|
|
$0.20
|
|
|
||||||
|
|
2015
|
||||
|
|
High
|
|
Low
|
|
Cash
Dividends
|
First quarter
|
|
$41.48
|
|
$35.68
|
|
$0.20
|
Second quarter
|
|
$46.50
|
|
$39.88
|
|
$0.20
|
Third quarter
|
|
$45.91
|
|
$37.19
|
|
$0.20
|
Fourth quarter
|
|
$43.94
|
|
$36.40
|
|
$0.20
|
|
•
|
Net income totaled
$431.7 million
for the year ended
December 31, 2016
, which reflected an
increase
of
$47.0 million
or
12%
, compared to the same period in
2015
.
|
•
|
Diluted earnings per share was
$2.97
for the year ended
December 31, 2016
, which reflected an
increase
of
$0.31
or
12%
, compared to the same period in
2015
.
|
•
|
Revenue, the sum of net interest income and noninterest income (loss), before provision for credit losses,
increase
d
$81.7 million
or
7%
to
$1.22 billion
for the year ended
December 31, 2016
, compared to the same period in
2015
.
|
•
|
Noninterest expense increased
$75.0 million
or
14%
to
$615.9 million
for the year ended
December 31, 2016
, compared to the same period in
2015
.
|
•
|
The Company’s effective tax rate for the year ended
December 31, 2016
was
24.6%
, compared to
33.5%
for the same period in
2015
. The decrease in the effective tax rate was primarily attributable to additional tax credit investments in
2016
, compared to
2015
.
|
•
|
Return on average assets increased
three
basis points to
1.30%
for the year ended
December 31, 2016
, compared to the same period in
2015
. Return on average equity increased
32
basis points to
13.06%
for the year ended
December 31, 2016
, compared to the same period in
2015
.
|
•
|
Cost of funds improved
three
basis points to
0.36%
for the year ended
December 31, 2016
, compared to the same period in
2015
.
|
|
||||||||||||||||||||
($ and shares in thousands, except per share data)
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Summary of Operations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
|
$
|
1,137,481
|
|
|
$
|
1,053,815
|
|
|
$
|
1,153,698
|
|
|
$
|
1,068,685
|
|
|
$
|
1,051,095
|
|
Interest expense
|
|
104,843
|
|
|
103,376
|
|
|
112,820
|
|
|
112,492
|
|
|
132,168
|
|
|||||
Net interest income before provision for credit losses
|
|
1,032,638
|
|
|
950,439
|
|
|
1,040,878
|
|
|
956,193
|
|
|
918,927
|
|
|||||
Provision for credit losses
|
|
27,479
|
|
|
14,217
|
|
|
49,158
|
|
|
22,364
|
|
|
65,184
|
|
|||||
Net interest income after provision for credit losses
|
|
1,005,159
|
|
|
936,222
|
|
|
991,720
|
|
|
933,829
|
|
|
853,743
|
|
|||||
Noninterest income (loss)
(1)
|
|
182,918
|
|
|
183,383
|
|
|
(11,714
|
)
|
|
(92,468
|
)
|
|
(5,618
|
)
|
|||||
Noninterest expense
|
|
615,889
|
|
|
540,884
|
|
|
532,983
|
|
|
394,215
|
|
|
406,837
|
|
|||||
Income before income taxes
|
|
572,188
|
|
|
578,721
|
|
|
447,023
|
|
|
447,146
|
|
|
441,288
|
|
|||||
Income tax expense
|
|
140,511
|
|
|
194,044
|
|
|
101,145
|
|
|
153,822
|
|
|
163,552
|
|
|||||
Net income
|
|
431,677
|
|
|
384,677
|
|
|
345,878
|
|
|
293,324
|
|
|
277,736
|
|
|||||
Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,428
|
|
|
6,857
|
|
|||||
Net income available to common stockholders
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
|
$
|
345,878
|
|
|
$
|
289,896
|
|
|
$
|
270,879
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings
|
|
$
|
3.00
|
|
|
$
|
2.67
|
|
|
$
|
2.42
|
|
|
$
|
2.10
|
|
|
$
|
1.89
|
|
Diluted earnings
|
|
$
|
2.97
|
|
|
$
|
2.66
|
|
|
$
|
2.41
|
|
|
$
|
2.09
|
|
|
$
|
1.87
|
|
Dividends declared
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
0.72
|
|
|
$
|
0.60
|
|
|
$
|
0.40
|
|
Book value
|
|
$
|
23.78
|
|
|
$
|
21.70
|
|
|
$
|
19.89
|
|
|
$
|
17.19
|
|
|
$
|
17.01
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted Average Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
144,087
|
|
|
143,818
|
|
|
142,952
|
|
|
137,342
|
|
|
141,457
|
|
|||||
Diluted
|
|
145,172
|
|
|
144,512
|
|
|
143,563
|
|
|
139,574
|
|
|
147,175
|
|
|||||
Common shares outstanding at period-end
|
|
144,167
|
|
|
143,909
|
|
|
143,582
|
|
|
137,631
|
|
|
140,294
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At Year End:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
34,788,840
|
|
|
$
|
32,350,922
|
|
|
$
|
28,743,592
|
|
|
$
|
24,732,216
|
|
|
$
|
22,539,744
|
|
Loans held-for-investment, net
|
|
$
|
25,242,619
|
|
|
$
|
23,378,789
|
|
|
$
|
21,468,270
|
|
|
$
|
17,600,613
|
|
|
$
|
14,645,785
|
|
Available-for-sale investment securities
|
|
$
|
3,335,795
|
|
|
$
|
3,773,226
|
|
|
$
|
2,626,617
|
|
|
$
|
2,733,797
|
|
|
$
|
2,607,029
|
|
Customer deposits
|
|
$
|
29,890,983
|
|
|
$
|
27,475,981
|
|
|
$
|
24,008,774
|
|
|
$
|
20,412,918
|
|
|
$
|
18,309,354
|
|
Long-term debt
|
|
$
|
186,327
|
|
|
$
|
206,084
|
|
|
$
|
225,848
|
|
|
$
|
226,868
|
|
|
$
|
137,178
|
|
FHLB
|
|
$
|
321,643
|
|
|
$
|
1,019,424
|
|
|
$
|
317,241
|
|
|
$
|
315,092
|
|
|
$
|
312,975
|
|
Stockholders’ equity
|
|
$
|
3,427,741
|
|
|
$
|
3,122,950
|
|
|
$
|
2,856,111
|
|
|
$
|
2,366,373
|
|
|
$
|
2,385,991
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
1.30
|
%
|
|
1.27
|
%
|
|
1.25
|
%
|
|
1.24
|
%
|
|
1.27
|
%
|
|||||
Return on average stockholders’ equity
|
|
13.06
|
%
|
|
12.74
|
%
|
|
12.72
|
%
|
|
12.50
|
%
|
|
11.94
|
%
|
|||||
Total average stockholders’ equity to total average assets
|
|
9.97
|
%
|
|
9.95
|
%
|
|
9.83
|
%
|
|
9.95
|
%
|
|
10.62
|
%
|
|||||
Common dividend payout ratio
|
|
27.01
|
%
|
|
30.21
|
%
|
|
30.07
|
%
|
|
28.74
|
%
|
|
21.26
|
%
|
|||||
Net interest margin
|
|
3.30
|
%
|
|
3.35
|
%
|
|
4.03
|
%
|
|
4.38
|
%
|
|
4.63
|
%
|
|||||
|
(1)
|
Includes changes in FDIC indemnification asset and receivable/payable charges of
$38.0 million
,
$201.4 million
,
$228.6 million
and
$122.3 million
for the years ended December 31,
2015
,
2014
,
2013
and
2012
, respectively. During the year ended
December 31, 2015
, the Company terminated the UCB and WFIB shared-loss agreements. There was
no
balance of FDIC indemnification asset and receivable/payable during the year ended
December 31, 2016
.
|
|
|||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|
Average
Balance |
|
Interest
|
|
Average
Yield/
Rate
|
|
Average
Balance |
|
Interest
|
|
Average
Yield/
Rate
|
||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
1,893,064
|
|
|
$
|
14,731
|
|
|
0.78
|
%
|
|
$
|
1,851,604
|
|
|
$
|
17,939
|
|
|
0.97
|
%
|
|
$
|
1,469,200
|
|
|
$
|
23,214
|
|
|
1.58
|
%
|
Resale agreements
(1)
|
|
1,708,470
|
|
|
30,547
|
|
|
1.79
|
%
|
|
1,337,274
|
|
|
19,799
|
|
|
1.48
|
%
|
|
1,340,411
|
|
|
20,323
|
|
|
1.52
|
%
|
||||||
Investment securities
(2)(3)
|
|
3,355,086
|
|
|
53,399
|
|
|
1.59
|
%
|
|
2,847,655
|
|
|
41,375
|
|
|
1.45
|
%
|
|
2,540,228
|
|
|
44,684
|
|
|
1.76
|
%
|
||||||
Loans
(4)(5)
|
|
24,264,895
|
|
|
1,035,377
|
|
|
4.27
|
%
|
|
22,276,589
|
|
|
968,625
|
|
|
4.35
|
%
|
|
20,351,818
|
|
|
1,059,205
|
|
|
5.20
|
%
|
||||||
Investments in FHLB and Federal Reserve Bank stock
|
|
75,260
|
|
|
3,427
|
|
|
4.55
|
%
|
|
77,460
|
|
|
6,077
|
|
|
7.85
|
%
|
|
96,921
|
|
|
6,272
|
|
|
6.47
|
%
|
||||||
Total interest-earning assets
|
|
$
|
31,296,775
|
|
|
$
|
1,137,481
|
|
|
3.63
|
%
|
|
$
|
28,390,582
|
|
|
$
|
1,053,815
|
|
|
3.71
|
%
|
|
$
|
25,798,578
|
|
|
$
|
1,153,698
|
|
|
4.47
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and due from banks
|
|
365,104
|
|
|
|
|
|
|
342,606
|
|
|
|
|
|
|
322,581
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
(262,804
|
)
|
|
|
|
|
|
(263,143
|
)
|
|
|
|
|
|
(254,616
|
)
|
|
|
|
|
||||||||||||
Other assets
|
|
1,770,298
|
|
|
|
|
|
|
1,858,412
|
|
|
|
|
|
|
1,786,427
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
33,169,373
|
|
|
|
|
|
|
$
|
30,328,457
|
|
|
|
|
|
|
$
|
27,652,970
|
|
|
|
|
|
|||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Checking deposits
|
|
$
|
3,495,094
|
|
|
$
|
12,640
|
|
|
0.36
|
%
|
|
$
|
2,795,379
|
|
|
$
|
8,453
|
|
|
0.30
|
%
|
|
$
|
2,179,428
|
|
|
$
|
5,431
|
|
|
0.25
|
%
|
Money market deposits
|
|
7,679,695
|
|
|
27,094
|
|
|
0.35
|
%
|
|
6,763,979
|
|
|
18,988
|
|
|
0.28
|
%
|
|
5,958,461
|
|
|
16,001
|
|
|
0.27
|
%
|
||||||
Saving deposits
|
|
2,104,060
|
|
|
4,719
|
|
|
0.22
|
%
|
|
1,785,085
|
|
|
3,468
|
|
|
0.19
|
%
|
|
1,748,465
|
|
|
2,971
|
|
|
0.17
|
%
|
||||||
Time deposits
|
|
5,852,042
|
|
|
39,771
|
|
|
0.68
|
%
|
|
6,482,697
|
|
|
42,596
|
|
|
0.66
|
%
|
|
6,218,745
|
|
|
41,083
|
|
|
0.66
|
%
|
||||||
Federal funds purchased and other short-term borrowings
|
|
25,591
|
|
|
713
|
|
|
2.79
|
%
|
|
4,797
|
|
|
58
|
|
|
1.21
|
%
|
|
888
|
|
|
—
|
|
|
—
|
%
|
||||||
FHLB advances
|
|
380,868
|
|
|
5,585
|
|
|
1.47
|
%
|
|
327,080
|
|
|
4,270
|
|
|
1.31
|
%
|
|
349,767
|
|
|
4,116
|
|
|
1.18
|
%
|
||||||
Repurchase agreements
(1)
|
|
211,475
|
|
|
9,304
|
|
|
4.40
|
%
|
|
404,096
|
|
|
20,907
|
|
|
5.17
|
%
|
|
955,147
|
|
|
38,395
|
|
|
4.02
|
%
|
||||||
Long-term debt
|
|
198,589
|
|
|
5,017
|
|
|
2.53
|
%
|
|
218,353
|
|
|
4,636
|
|
|
2.12
|
%
|
|
237,738
|
|
|
4,823
|
|
|
2.03
|
%
|
||||||
Total interest-bearing liabilities
|
|
$
|
19,947,414
|
|
|
$
|
104,843
|
|
|
0.53
|
%
|
|
$
|
18,781,466
|
|
|
$
|
103,376
|
|
|
0.55
|
%
|
|
$
|
17,648,639
|
|
|
$
|
112,820
|
|
|
0.64
|
%
|
Noninterest-bearing liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
|
9,371,481
|
|
|
|
|
|
|
7,928,460
|
|
|
|
|
|
|
6,834,871
|
|
|
|
|
|
||||||||||||
Accrued expenses and other liabilities
|
|
544,549
|
|
|
|
|
|
|
599,436
|
|
|
|
|
|
|
451,287
|
|
|
|
|
|
||||||||||||
Stockholders’ equity
|
|
3,305,929
|
|
|
|
|
|
|
3,019,095
|
|
|
|
|
|
|
2,718,173
|
|
|
|
|
|
||||||||||||
Total liabilities and stockholders’ equity
|
|
$
|
33,169,373
|
|
|
|
|
|
|
$
|
30,328,457
|
|
|
|
|
|
|
$
|
27,652,970
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest rate spread
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.16
|
%
|
|
|
|
|
|
3.83
|
%
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income and net interest margin
|
|
|
|
$
|
1,032,638
|
|
|
3.30
|
%
|
|
|
|
$
|
950,439
|
|
|
3.35
|
%
|
|
|
|
$
|
1,040,878
|
|
|
4.03
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Average balances of resale and repurchase agreements are reported net pursuant to ASC 210-20-45,
Balance Sheet Offsetting
.
|
(2)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
(3)
|
Includes the amortization of net premiums on investment securities of
$26.2 million
,
$18.7 million
and
$24.2 million
for the years ended
December 31, 2016
,
2015
and
2014
, respectively.
|
(4)
|
Average balance includes nonperforming loans.
|
(5)
|
Includes the accretion of ASC 310-30 discount,net deferred loan fees, unearned income and amortization of premiums, which totaled
$53.5 million
,
$66.2 million
and
$185.8 million
for the years ended
December 31, 2016
,
2015
and
2014
, respectively.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2016 vs. 2015
|
|
2015 vs. 2014
|
|||||||||||||||||||||
|
Total
Change
|
|
Changes Due to
|
|
Total
Change
|
|
Changes Due to
|
|||||||||||||||||
|
|
Volume
|
|
Yield/Rate
|
|
|
Volume
|
|
Yield/Rate
|
|||||||||||||||
Interest-bearing assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing cash and deposits with banks
|
|
$
|
(3,208
|
)
|
|
$
|
394
|
|
|
$
|
(3,602
|
)
|
|
$
|
(5,275
|
)
|
|
$
|
5,102
|
|
|
$
|
(10,377
|
)
|
Resale agreements
|
|
10,748
|
|
|
6,149
|
|
|
4,599
|
|
|
(524
|
)
|
|
(47
|
)
|
|
(477
|
)
|
||||||
Investment securities
|
|
12,024
|
|
|
7,831
|
|
|
4,193
|
|
|
(3,309
|
)
|
|
5,022
|
|
|
(8,331
|
)
|
||||||
Loans
|
|
66,752
|
|
|
85,120
|
|
|
(18,368
|
)
|
|
(90,580
|
)
|
|
94,158
|
|
|
(184,738
|
)
|
||||||
Investments in FHLB and Federal Reserve Bank stock
|
|
(2,650
|
)
|
|
(168
|
)
|
|
(2,482
|
)
|
|
(195
|
)
|
|
(1,389
|
)
|
|
1,194
|
|
||||||
Total interest and dividend income
|
|
$
|
83,666
|
|
|
$
|
99,326
|
|
|
$
|
(15,660
|
)
|
|
$
|
(99,883
|
)
|
|
$
|
102,846
|
|
|
$
|
(202,729
|
)
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking deposits
|
|
$
|
4,187
|
|
|
$
|
2,348
|
|
|
$
|
1,839
|
|
|
$
|
3,022
|
|
|
$
|
1,722
|
|
|
$
|
1,300
|
|
Money market deposits
|
|
8,106
|
|
|
2,798
|
|
|
5,308
|
|
|
2,987
|
|
|
2,237
|
|
|
750
|
|
||||||
Saving deposits
|
|
1,251
|
|
|
671
|
|
|
580
|
|
|
497
|
|
|
63
|
|
|
434
|
|
||||||
Time deposits
|
|
(2,825
|
)
|
|
(4,249
|
)
|
|
1,424
|
|
|
1,513
|
|
|
1,735
|
|
|
(222
|
)
|
||||||
Federal funds purchased and other short-term borrowings
|
|
655
|
|
|
503
|
|
|
152
|
|
|
58
|
|
|
—
|
|
|
58
|
|
||||||
FHLB advances
|
|
1,315
|
|
|
752
|
|
|
563
|
|
|
154
|
|
|
(278
|
)
|
|
432
|
|
||||||
Repurchase agreements
|
|
(11,603
|
)
|
|
(8,831
|
)
|
|
(2,772
|
)
|
|
(17,488
|
)
|
|
(26,397
|
)
|
|
8,909
|
|
||||||
Long-term debt
|
|
381
|
|
|
(445
|
)
|
|
826
|
|
|
(187
|
)
|
|
(405
|
)
|
|
218
|
|
||||||
Total interest expense
|
|
$
|
1,467
|
|
|
$
|
(6,453
|
)
|
|
$
|
7,920
|
|
|
$
|
(9,444
|
)
|
|
$
|
(21,323
|
)
|
|
$
|
11,879
|
|
Change in net interest income
|
|
$
|
82,199
|
|
|
$
|
105,779
|
|
|
$
|
(23,580
|
)
|
|
$
|
(90,439
|
)
|
|
$
|
124,169
|
|
|
$
|
(214,608
|
)
|
|
|
||||||||||||
($ in millions)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Branch fees
|
|
$
|
41.2
|
|
|
$
|
39.5
|
|
|
$
|
37.9
|
|
Letters of credit fees and foreign exchange income
|
|
45.8
|
|
|
39.0
|
|
|
37.3
|
|
|||
Ancillary loan fees
|
|
19.4
|
|
|
15.0
|
|
|
10.6
|
|
|||
Wealth management fees
|
|
13.2
|
|
|
18.3
|
|
|
16.2
|
|
|||
Derivative fees and other income
|
|
16.8
|
|
|
16.5
|
|
|
11.0
|
|
|||
Net gains on sales of loans
|
|
6.1
|
|
|
24.9
|
|
|
39.1
|
|
|||
Net gains on sales of available-for-sale investment securities
|
|
10.4
|
|
|
40.4
|
|
|
10.7
|
|
|||
Changes in FDIC indemnification asset and receivable/payable
|
|
—
|
|
|
(38.0
|
)
|
|
(201.4
|
)
|
|||
Other fees and other operating income
|
|
30.0
|
|
|
27.8
|
|
|
26.9
|
|
|||
Total noninterest income (loss)
|
|
$
|
182.9
|
|
|
$
|
183.4
|
|
|
$
|
(11.7
|
)
|
|
|
|
|
|
|
|
|
||||||
|
|
Year Ended December 31,
|
||||||||||
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Compensation and employee benefits
|
|
$
|
300.1
|
|
|
$
|
262.2
|
|
|
$
|
231.8
|
|
Occupancy and equipment expense
|
|
61.5
|
|
|
61.3
|
|
|
63.8
|
|
|||
Deposit insurance premiums and regulatory assessments
|
|
23.3
|
|
|
18.8
|
|
|
21.9
|
|
|||
OREO expense (income)
|
|
1.5
|
|
|
(8.9
|
)
|
|
(3.6
|
)
|
|||
Legal expense
|
|
2.8
|
|
|
16.4
|
|
|
53.0
|
|
|||
Data processing
|
|
11.7
|
|
|
10.2
|
|
|
15.9
|
|
|||
Consulting expense
|
|
22.7
|
|
|
17.2
|
|
|
8.5
|
|
|||
Deposit related expenses
|
|
10.4
|
|
|
10.4
|
|
|
8.5
|
|
|||
Computer software expense
|
|
12.9
|
|
|
8.7
|
|
|
7.5
|
|
|||
Other operating expense
|
|
77.5
|
|
|
77.5
|
|
|
71.4
|
|
|||
Amortization of tax credit and other investments
|
|
83.4
|
|
|
36.1
|
|
|
44.1
|
|
|||
Amortization of core deposit intangibles
|
|
8.1
|
|
|
9.2
|
|
|
10.2
|
|
|||
Repurchase agreements’ extinguishment costs
|
|
—
|
|
|
21.8
|
|
|
—
|
|
|||
Total noninterest expense
|
|
$
|
615.9
|
|
|
$
|
540.9
|
|
|
$
|
533.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
($ in millions)
|
|
Year ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||
|
Retail Banking
|
|
Commercial Banking
|
|
Other
|
|||||||||||||||||||||||||||||||
Net interest income (loss)
|
|
$
|
459.4
|
|
|
$
|
453.0
|
|
|
$
|
462.1
|
|
|
$
|
530.9
|
|
|
$
|
509.6
|
|
|
$
|
596.4
|
|
|
$
|
42.3
|
|
|
$
|
(12.2
|
)
|
|
$
|
(17.6
|
)
|
Noninterest income (loss)
|
|
$
|
51.4
|
|
|
$
|
46.3
|
|
|
$
|
14.5
|
|
|
$
|
96.0
|
|
|
$
|
71.8
|
|
|
$
|
(63.9
|
)
|
|
$
|
35.5
|
|
|
$
|
65.3
|
|
|
$
|
37.7
|
|
Noninterest expense
|
|
$
|
230.5
|
|
|
$
|
199.6
|
|
|
$
|
197.8
|
|
|
$
|
178.1
|
|
|
$
|
164.5
|
|
|
$
|
189.4
|
|
|
$
|
207.3
|
|
|
$
|
176.8
|
|
|
$
|
145.8
|
|
Pretax income (loss)
|
|
$
|
170.1
|
|
|
$
|
212.0
|
|
|
$
|
181.3
|
|
|
$
|
377.9
|
|
|
$
|
382.2
|
|
|
$
|
293.4
|
|
|
$
|
24.2
|
|
|
$
|
(15.5
|
)
|
|
$
|
(27.7
|
)
|
|
|
|
•
|
interest income for earnings and yield enhancement;
|
•
|
availability for funding needs arising during the normal course of business;
|
•
|
the ability to execute interest rate risk management strategies due to changes in economic or market conditions which influence loan origination demand, prepayment speeds, or deposit balances and mix; and
|
•
|
collateral to support pledging agreements as required and/or to enhance the Company’s borrowing capacity.
|
|
||||||||||||||||||||||||
|
|
December 31,
|
||||||||||||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
730,287
|
|
|
$
|
720,479
|
|
|
$
|
1,002,874
|
|
|
$
|
998,515
|
|
|
$
|
873,101
|
|
|
$
|
873,435
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
277,891
|
|
|
274,866
|
|
|
771,288
|
|
|
768,849
|
|
|
311,927
|
|
|
311,024
|
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
1,539,044
|
|
|
1,525,546
|
|
|
1,350,673
|
|
|
1,349,058
|
|
|
926,369
|
|
|
932,508
|
|
||||||
Municipal securities
|
|
148,302
|
|
|
147,654
|
|
|
173,785
|
|
|
175,649
|
|
|
245,408
|
|
|
250,448
|
|
||||||
Non-agency residential mortgage-backed securities
|
|
11,592
|
|
|
11,477
|
|
|
62,133
|
|
|
62,393
|
|
|
52,694
|
|
|
53,918
|
|
||||||
Non-agency commercial mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,000
|
|
|
34,053
|
|
||||||
Corporate debt securities
|
|
232,381
|
|
|
231,550
|
|
|
292,341
|
|
|
289,074
|
|
|
99,117
|
|
|
95,056
|
|
||||||
Foreign bonds
|
|
405,443
|
|
|
383,894
|
|
|
90,586
|
|
|
89,795
|
|
|
39,510
|
|
|
39,318
|
|
||||||
Other securities
|
|
40,501
|
|
|
40,329
|
|
|
40,149
|
|
|
39,893
|
|
|
37,181
|
|
|
36,857
|
|
||||||
Total available-for-sale investment securities
|
|
$
|
3,385,441
|
|
|
$
|
3,335,795
|
|
|
$
|
3,783,829
|
|
|
$
|
3,773,226
|
|
|
$
|
2,619,307
|
|
|
$
|
2,626,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
$278.0 million
decrease in U.S. Treasury securities primarily due to $820.9 million of sales and $110.0 million of maturities, partially offset by $661.8 million of purchases;
|
•
|
$494.0 million
decrease in U.S. government agency and U.S. government sponsored enterprise debt securities primarily due to $618.9 million of securities called and $57.0 million of maturities, partially offset by $190.3 million of purchases; and
|
•
|
$294.1 million
increase in foreign bonds primarily due to purchases of multilateral development bank bonds of $374.9 million. These purchases were partially offset by calls of $50.0 million.
|
|
||||||||||||||||||||||
|
|
December 31,
|
||||||||||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
||||||||||||||||||
|
Amortized
Cost
|
|
Fair Value
|
|
Yield
(1)
|
|
Amortized
Cost
|
|
Fair Value
|
|
Yield
(1)
|
|||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
$
|
100,707
|
|
|
$
|
100,653
|
|
|
0.65
|
%
|
|
$
|
110,513
|
|
|
$
|
110,439
|
|
|
0.50
|
%
|
Maturing after one year through five years
|
|
376,580
|
|
|
371,917
|
|
|
1.27
|
%
|
|
790,117
|
|
|
785,929
|
|
|
1.17
|
%
|
||||
Maturing after five years through ten years
|
|
253,000
|
|
|
247,909
|
|
|
1.59
|
%
|
|
102,244
|
|
|
102,147
|
|
|
1.78
|
%
|
||||
Total
|
|
730,287
|
|
|
720,479
|
|
|
1.29
|
%
|
|
1,002,874
|
|
|
998,515
|
|
|
1.16
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
118,966
|
|
|
118,982
|
|
|
0.94
|
%
|
|
538,737
|
|
|
537,393
|
|
|
1.03
|
%
|
||||
Maturing after one year through five years
|
|
52,622
|
|
|
52,630
|
|
|
1.38
|
%
|
|
143,448
|
|
|
143,057
|
|
|
1.02
|
%
|
||||
Maturing after five years through ten years
|
|
81,829
|
|
|
78,977
|
|
|
2.07
|
%
|
|
89,103
|
|
|
88,399
|
|
|
1.91
|
%
|
||||
Maturing after ten years
|
|
24,474
|
|
|
24,277
|
|
|
2.50
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Total
|
|
277,891
|
|
|
274,866
|
|
|
1.49
|
%
|
|
771,288
|
|
|
768,849
|
|
|
1.13
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after one year through five years
|
|
47,278
|
|
|
46,950
|
|
|
1.74
|
%
|
|
45,635
|
|
|
45,379
|
|
|
1.09
|
%
|
||||
Maturing after five years through ten years
|
|
79,379
|
|
|
78,903
|
|
|
3.11
|
%
|
|
257,707
|
|
|
256,086
|
|
|
2.10
|
%
|
||||
Maturing after ten years
|
|
1,412,387
|
|
|
1,399,693
|
|
|
2.34
|
%
|
|
1,047,331
|
|
|
1,047,593
|
|
|
1.74
|
%
|
||||
Total
|
|
1,539,044
|
|
|
1,525,546
|
|
|
2.36
|
%
|
|
1,350,673
|
|
|
1,349,058
|
|
|
1.78
|
%
|
||||
Municipal securities
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
6,404
|
|
|
6,317
|
|
|
2.56
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Maturing after one year through five years
|
|
127,178
|
|
|
127,080
|
|
|
2.31
|
%
|
|
140,602
|
|
|
142,781
|
|
|
2.32
|
%
|
||||
Maturing after five years through ten years
|
|
9,785
|
|
|
9,515
|
|
|
2.50
|
%
|
|
25,515
|
|
|
25,252
|
|
|
2.48
|
%
|
||||
Maturing after ten years
|
|
4,935
|
|
|
4,742
|
|
|
3.95
|
%
|
|
7,668
|
|
|
7,616
|
|
|
3.94
|
%
|
||||
Total
|
|
148,302
|
|
|
147,654
|
|
|
2.40
|
%
|
|
173,785
|
|
|
175,649
|
|
|
2.42
|
%
|
||||
Non-agency residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
11,592
|
|
|
11,477
|
|
|
2.52
|
%
|
|
62,133
|
|
|
62,393
|
|
|
3.20
|
%
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
12,671
|
|
|
11,347
|
|
|
1.80
|
%
|
|
12,741
|
|
|
10,822
|
|
|
1.29
|
%
|
||||
Maturing after five years through ten years
|
|
40,479
|
|
|
40,500
|
|
|
2.40
|
%
|
|
79,890
|
|
|
79,096
|
|
|
1.68
|
%
|
||||
Maturing after ten years
|
|
179,231
|
|
|
179,703
|
|
|
2.26
|
%
|
|
199,710
|
|
|
199,156
|
|
|
1.89
|
%
|
||||
Total
|
|
232,381
|
|
|
231,550
|
|
|
2.26
|
%
|
|
292,341
|
|
|
289,074
|
|
|
1.81
|
%
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
304,427
|
|
|
287,695
|
|
|
2.09
|
%
|
|
54,515
|
|
|
54,189
|
|
|
1.04
|
%
|
||||
Maturing after one year through five years
|
|
101,016
|
|
|
96,199
|
|
|
2.11
|
%
|
|
36,071
|
|
|
35,606
|
|
|
2.22
|
%
|
||||
Total
|
|
405,443
|
|
|
383,894
|
|
|
2.09
|
%
|
|
90,586
|
|
|
89,795
|
|
|
1.51
|
%
|
||||
Other securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
40,501
|
|
|
40,329
|
|
|
2.72
|
%
|
|
40,149
|
|
|
39,893
|
|
|
2.71
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
583,676
|
|
|
565,323
|
|
|
|
|
756,655
|
|
|
752,736
|
|
|
|
||||||
Maturing after one year through five years
|
|
704,674
|
|
|
694,776
|
|
|
|
|
1,155,873
|
|
|
1,152,752
|
|
|
|
||||||
Maturing after five years through ten years
|
|
464,472
|
|
|
455,804
|
|
|
|
|
554,459
|
|
|
550,980
|
|
|
|
||||||
Maturing after ten years
|
|
1,632,619
|
|
|
1,619,892
|
|
|
|
|
1,316,842
|
|
|
1,316,758
|
|
|
|
||||||
Total available-for-sale investment securities
|
|
$
|
3,385,441
|
|
|
$
|
3,335,795
|
|
|
|
|
$
|
3,783,829
|
|
|
$
|
3,773,226
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity investment security:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-agency commercial mortgage-backed security:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
$
|
143,971
|
|
|
$
|
144,593
|
|
|
3.91
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
(1)
|
Weighted average yields are computed based on amortized cost balances.
|
(2)
|
Yields on tax exempt securities are not presented on a tax-equivalent basis.
|
|
|||||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||||||||||
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
||||||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income producing
|
|
$
|
8,016,109
|
|
|
31
|
%
|
|
$
|
7,471,812
|
|
|
32
|
%
|
|
$
|
6,253,195
|
|
|
29
|
%
|
|
$
|
5,265,861
|
|
|
30
|
%
|
|
$
|
4,742,418
|
|
|
33
|
%
|
Construction
|
|
551,560
|
|
|
2
|
%
|
|
434,623
|
|
|
2
|
%
|
|
332,135
|
|
|
1
|
%
|
|
225,098
|
|
|
1
|
%
|
|
394,517
|
|
|
2
|
%
|
|||||
Land
|
|
123,194
|
|
|
1
|
%
|
|
193,637
|
|
|
1
|
%
|
|
231,061
|
|
|
1
|
%
|
|
182,937
|
|
|
1
|
%
|
|
180,094
|
|
|
1
|
%
|
|||||
Total CRE
|
|
8,690,863
|
|
|
34
|
%
|
|
8,100,072
|
|
|
35
|
%
|
|
6,816,391
|
|
|
31
|
%
|
|
5,673,896
|
|
|
32
|
%
|
|
5,317,029
|
|
|
36
|
%
|
|||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial business
|
|
8,959,633
|
|
|
35
|
%
|
|
8,201,764
|
|
|
35
|
%
|
|
7,180,848
|
|
|
33
|
%
|
|
4,884,737
|
|
|
27
|
%
|
|
3,924,096
|
|
|
26
|
%
|
|||||
Trade finance
|
|
680,930
|
|
|
3
|
%
|
|
789,771
|
|
|
3
|
%
|
|
895,602
|
|
|
4
|
%
|
|
875,911
|
|
|
5
|
%
|
|
843,683
|
|
|
6
|
%
|
|||||
Total C&I
|
|
9,640,563
|
|
|
38
|
%
|
|
8,991,535
|
|
|
38
|
%
|
|
8,076,450
|
|
|
37
|
%
|
|
5,760,648
|
|
|
32
|
%
|
|
4,767,779
|
|
|
32
|
%
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Single-family
|
|
3,509,779
|
|
|
14
|
%
|
|
3,069,969
|
|
|
13
|
%
|
|
3,872,141
|
|
|
18
|
%
|
|
3,474,701
|
|
|
19
|
%
|
|
2,522,889
|
|
|
17
|
%
|
|||||
Multifamily
|
|
1,585,939
|
|
|
6
|
%
|
|
1,524,367
|
|
|
6
|
%
|
|
1,451,918
|
|
|
7
|
%
|
|
1,369,051
|
|
|
8
|
%
|
|
1,484,253
|
|
|
10
|
%
|
|||||
Total residential
|
|
5,095,718
|
|
|
20
|
%
|
|
4,594,336
|
|
|
19
|
%
|
|
5,324,059
|
|
|
25
|
%
|
|
4,843,752
|
|
|
27
|
%
|
|
4,007,142
|
|
|
27
|
%
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Student loans
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
637,241
|
|
|
4
|
%
|
|
442,963
|
|
|
3
|
%
|
|||||
Other consumer
|
|
2,075,995
|
|
|
8
|
%
|
|
1,957,805
|
|
|
8
|
%
|
|
1,513,049
|
|
|
7
|
%
|
|
934,751
|
|
|
5
|
%
|
|
345,407
|
|
|
2
|
%
|
|||||
Total consumer
|
|
2,075,995
|
|
|
8
|
%
|
|
1,957,805
|
|
|
8
|
%
|
|
1,513,049
|
|
|
7
|
%
|
|
1,571,992
|
|
|
9
|
%
|
|
788,370
|
|
|
5
|
%
|
|||||
Total loans held-for-investment
(2)
|
|
$
|
25,503,139
|
|
|
100
|
%
|
|
$
|
23,643,748
|
|
|
100
|
%
|
|
$
|
21,729,949
|
|
|
100
|
%
|
|
$
|
17,850,288
|
|
|
100
|
%
|
|
$
|
14,880,320
|
|
|
100
|
%
|
Allowance for loan losses
|
|
(260,520
|
)
|
|
|
|
(264,959
|
)
|
|
|
|
(261,679
|
)
|
|
|
|
(249,675
|
)
|
|
|
|
(234,535
|
)
|
|
|
||||||||||
Loans held-for-sale
|
|
23,076
|
|
|
|
|
31,958
|
|
|
|
|
45,950
|
|
|
|
|
204,970
|
|
|
|
|
174,317
|
|
|
|
||||||||||
Total loans, net
|
|
$
|
25,265,695
|
|
|
|
|
$
|
23,410,747
|
|
|
|
|
$
|
21,514,220
|
|
|
|
|
$
|
17,805,583
|
|
|
|
|
$
|
14,820,102
|
|
|
|
|||||
|
(1)
|
Includes
$1.2 million
,
$(16.0) million
,
$2.8 million
,
$(23.7) million
and
$(19.3) million
as of
December 31, 2016
,
2015
,
2014
,
2013
and
2012
, respectively, of unearned fees, net deferred loan fees, and unamortized premiums and unaccreted discounts.
|
(2)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||
($ in thousands)
|
|
Within
One Year
|
|
After One
But Within
Five Years
|
|
More Than
Five Years
|
|
Total
|
||||||||
CRE
|
|
$
|
1,031,625
|
|
|
$
|
3,084,306
|
|
|
$
|
4,574,932
|
|
|
$
|
8,690,863
|
|
C&I
|
|
3,402,510
|
|
|
4,569,628
|
|
|
1,668,425
|
|
|
9,640,563
|
|
||||
Residential
|
|
73,965
|
|
|
307,548
|
|
|
4,714,205
|
|
|
5,095,718
|
|
||||
Consumer
|
|
56,341
|
|
|
203,963
|
|
|
1,815,691
|
|
|
2,075,995
|
|
||||
Total loans
(1)
|
|
$
|
4,564,441
|
|
|
$
|
8,165,445
|
|
|
$
|
12,773,253
|
|
|
$
|
25,503,139
|
|
|
|
|
|
|
|
|
|
|
||||||||
Distribution of loans to changes in interest rates:
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate loans
|
|
$
|
541,958
|
|
|
$
|
592,646
|
|
|
$
|
1,149,020
|
|
|
$
|
2,283,624
|
|
Variable rate loans
|
|
3,957,753
|
|
|
7,374,838
|
|
|
8,059,541
|
|
|
19,392,132
|
|
||||
Hybrid adjustable-rate loans
|
|
64,730
|
|
|
197,961
|
|
|
3,564,692
|
|
|
3,827,383
|
|
||||
Total loans
(1)
|
|
$
|
4,564,441
|
|
|
$
|
8,165,445
|
|
|
$
|
12,773,253
|
|
|
$
|
25,503,139
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||
Nonaccrual loans
|
|
$
|
122,817
|
|
|
$
|
121,698
|
|
|
$
|
100,262
|
|
|
$
|
129,315
|
|
|
$
|
135,490
|
|
OREO, net
|
|
6,745
|
|
|
7,034
|
|
|
32,111
|
|
|
40,273
|
|
|
59,719
|
|
|||||
Total nonperforming assets
|
|
$
|
129,562
|
|
|
$
|
128,732
|
|
|
$
|
132,373
|
|
|
$
|
169,588
|
|
|
$
|
195,209
|
|
Performing TDRs
|
|
$
|
83,238
|
|
|
$
|
43,743
|
|
|
$
|
68,338
|
|
|
$
|
71,826
|
|
|
$
|
94,580
|
|
Non-PCI nonperforming assets to total assets
|
|
0.37
|
%
|
|
0.40
|
%
|
|
0.46
|
%
|
|
0.69
|
%
|
|
0.87
|
%
|
|||||
Non-PCI nonaccrual loans to loans held-for-investment
|
|
0.48
|
%
|
|
0.51
|
%
|
|
0.46
|
%
|
|
0.72
|
%
|
|
0.91
|
%
|
|||||
Allowance for loan losses to non-PCI nonaccrual loans
|
|
212.12
|
%
|
|
217.72
|
%
|
|
261.00
|
%
|
|
193.08
|
%
|
|
173.10
|
%
|
|||||
|
|
||||||||||||||||
($ in thousands) |
|
December 31,
|
||||||||||||||
|
2016
|
|
2015
|
|||||||||||||
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|||||||||
CRE
|
|
$
|
20,145
|
|
|
$
|
14,446
|
|
|
$
|
11,530
|
|
|
$
|
8,333
|
|
C&I
|
|
44,363
|
|
|
23,771
|
|
|
17,205
|
|
|
34,240
|
|
||||
Residential
|
|
17,178
|
|
|
717
|
|
|
13,766
|
|
|
10,522
|
|
||||
Consumer
|
|
1,552
|
|
|
49
|
|
|
1,242
|
|
|
—
|
|
||||
Total TDRs
|
|
$
|
83,238
|
|
|
$
|
38,983
|
|
|
$
|
43,743
|
|
|
$
|
53,095
|
|
|
|
||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||
CRE:
|
|
|
|
|
|
|
|
|
||||||
Income producing
|
|
$
|
46,508
|
|
|
23
|
%
|
|
$
|
40,216
|
|
|
24
|
%
|
Construction
|
|
—
|
|
|
—
|
%
|
|
14
|
|
|
—
|
%
|
||
Land
|
|
5,870
|
|
|
3
|
%
|
|
1,345
|
|
|
1
|
%
|
||
Total CRE impaired loans
|
|
52,378
|
|
|
26
|
%
|
|
41,575
|
|
|
25
|
%
|
||
C&I:
|
|
|
|
|
|
|
|
|
||||||
Commercial business
|
|
120,453
|
|
|
58
|
%
|
|
71,399
|
|
|
43
|
%
|
||
Trade finance
|
|
5,166
|
|
|
2
|
%
|
|
10,689
|
|
|
7
|
%
|
||
Total C&I impaired loans
|
|
125,619
|
|
|
60
|
%
|
|
82,088
|
|
|
50
|
%
|
||
Residential:
|
|
|
|
|
|
|
|
|
||||||
Single-family
|
|
14,335
|
|
|
7
|
%
|
|
15,042
|
|
|
9
|
%
|
||
Multifamily
|
|
10,041
|
|
|
5
|
%
|
|
23,751
|
|
|
15
|
%
|
||
Total residential impaired loans
|
|
24,376
|
|
|
12
|
%
|
|
38,793
|
|
|
24
|
%
|
||
Consumer
|
|
3,682
|
|
|
2
|
%
|
|
1,242
|
|
|
1
|
%
|
||
Total impaired loans
|
|
$
|
206,055
|
|
|
100
|
%
|
|
$
|
163,698
|
|
|
100
|
%
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||
Allowance for loan losses, beginning of period
|
|
$
|
264,959
|
|
|
$
|
261,679
|
|
|
$
|
249,675
|
|
|
$
|
234,535
|
|
|
$
|
216,523
|
|
Provision for loan losses
|
|
31,718
|
|
|
6,569
|
|
|
47,583
|
|
|
20,207
|
|
|
66,747
|
|
|||||
Gross charge-offs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
(581
|
)
|
|
(1,545
|
)
|
|
(3,660
|
)
|
|
(3,737
|
)
|
|
(28,595
|
)
|
|||||
C&I
|
|
(47,739
|
)
|
|
(20,423
|
)
|
|
(39,984
|
)
|
|
(8,461
|
)
|
|
(26,792
|
)
|
|||||
Residential
|
|
(166
|
)
|
|
(1,686
|
)
|
|
(1,103
|
)
|
|
(3,197
|
)
|
|
(7,700
|
)
|
|||||
Consumer
|
|
(22
|
)
|
|
(600
|
)
|
|
(5,871
|
)
|
|
(2,385
|
)
|
|
(1,825
|
)
|
|||||
Total gross charge-offs
|
|
(48,508
|
)
|
|
(24,254
|
)
|
|
(50,618
|
)
|
|
(17,780
|
)
|
|
(64,912
|
)
|
|||||
Gross recoveries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
1,691
|
|
|
7,135
|
|
|
1,982
|
|
|
4,793
|
|
|
9,482
|
|
|||||
C&I
|
|
8,453
|
|
|
8,782
|
|
|
10,198
|
|
|
4,392
|
|
|
4,970
|
|
|||||
Residential
|
|
1,877
|
|
|
4,621
|
|
|
2,410
|
|
|
2,004
|
|
|
1,614
|
|
|||||
Consumer
|
|
330
|
|
|
427
|
|
|
449
|
|
|
1,524
|
|
|
111
|
|
|||||
Total gross recoveries
|
|
12,351
|
|
|
20,965
|
|
|
15,039
|
|
|
12,713
|
|
|
16,177
|
|
|||||
Net charge-offs
|
|
(36,157
|
)
|
|
(3,289
|
)
|
|
(35,579
|
)
|
|
(5,067
|
)
|
|
(48,735
|
)
|
|||||
Allowance for loan losses, end of period
|
|
260,520
|
|
|
264,959
|
|
|
261,679
|
|
|
249,675
|
|
|
234,535
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for unfunded credit reserves, beginning of period
|
|
20,360
|
|
|
12,712
|
|
|
11,282
|
|
|
9,437
|
|
|
11,000
|
|
|||||
(Reversal of) provision for unfunded credit reserves
|
|
(4,239
|
)
|
|
7,648
|
|
|
1,575
|
|
|
2,157
|
|
|
(1,563
|
)
|
|||||
Recoveries
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
(312
|
)
|
|
—
|
|
|||||
Allowance for unfunded credit reserves, end of period
|
|
$
|
16,121
|
|
|
$
|
20,360
|
|
|
$
|
12,712
|
|
|
$
|
11,282
|
|
|
$
|
9,437
|
|
Allowance for credit losses
|
|
$
|
276,641
|
|
|
$
|
285,319
|
|
|
$
|
274,391
|
|
|
$
|
260,957
|
|
|
$
|
243,972
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average loans held-for-investment
|
|
$
|
24,223,535
|
|
|
$
|
22,140,443
|
|
|
$
|
20,093,921
|
|
|
$
|
16,030,030
|
|
|
$
|
14,260,797
|
|
Loans held-for-investment
|
|
$
|
25,503,139
|
|
|
$
|
23,643,748
|
|
|
$
|
21,729,949
|
|
|
$
|
17,850,288
|
|
|
$
|
14,880,320
|
|
Net charge-offs to average loans held-for-investment
|
|
0.15
|
%
|
|
0.01
|
%
|
|
0.18
|
%
|
|
0.03
|
%
|
|
0.34
|
%
|
|||||
Allowance for loan losses to loans held-for-investment
|
|
1.02
|
%
|
|
1.12
|
%
|
|
1.20
|
%
|
|
1.40
|
%
|
|
1.58
|
%
|
|||||
Allowance for credit losses to loans held-for-investment
|
|
1.08
|
%
|
|
1.21
|
%
|
|
1.26
|
%
|
|
1.46
|
%
|
|
1.64
|
%
|
|||||
|
|
|||||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||||||||||
|
Allowance
Allocation
|
|
% of
Total
Loans
|
|
Allowance
Allocation |
|
% of
Total Loans |
|
Allowance
Allocation |
|
% of
Total Loans |
|
Allowance
Allocation |
|
% of
Total Loans |
|
Allowance
Allocation |
|
% of
Total Loans |
||||||||||||||||
CRE
|
|
$
|
72,916
|
|
|
34
|
%
|
|
$
|
81,538
|
|
|
35
|
%
|
|
$
|
72,977
|
|
|
31
|
%
|
|
$
|
72,111
|
|
|
32
|
%
|
|
$
|
72,385
|
|
|
36
|
%
|
C&I
|
|
142,167
|
|
|
38
|
%
|
|
134,606
|
|
|
38
|
%
|
|
134,598
|
|
|
37
|
%
|
|
115,496
|
|
|
32
|
%
|
|
107,719
|
|
|
32
|
%
|
|||||
Residential
|
|
37,338
|
|
|
20
|
%
|
|
39,295
|
|
|
19
|
%
|
|
43,856
|
|
|
25
|
%
|
|
50,716
|
|
|
27
|
%
|
|
49,436
|
|
|
27
|
%
|
|||||
Consumer
|
|
8,099
|
|
|
8
|
%
|
|
9,520
|
|
|
8
|
%
|
|
10,248
|
|
|
7
|
%
|
|
11,352
|
|
|
9
|
%
|
|
4,995
|
|
|
5
|
%
|
|||||
Total
|
|
$
|
260,520
|
|
|
100
|
%
|
|
$
|
264,959
|
|
|
100
|
%
|
|
$
|
261,679
|
|
|
100
|
%
|
|
$
|
249,675
|
|
|
100
|
%
|
|
$
|
234,535
|
|
|
100
|
%
|
|
|
||||
($ in thousands)
|
|
December 31, 2016
|
||
3 months or less
|
|
$
|
1,240,380
|
|
Over 3 months through 6 months
|
|
695,096
|
|
|
Over 6 months through 12 months
|
|
1,104,441
|
|
|
Over 12 months
|
|
725,634
|
|
|
Total
|
|
$
|
3,765,551
|
|
|
|
|
|
|
|
||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Year-end balance
|
|
$
|
60,050
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Weighted average rate on outstandings at year-end
|
|
3.01
|
%
|
|
—
|
%
|
|
—
|
%
|
|||
Highest month-end balance
|
|
$
|
60,050
|
|
|
$
|
23,269
|
|
|
$
|
—
|
|
Average amount outstanding
|
|
$
|
25,560
|
|
|
$
|
4,776
|
|
|
$
|
—
|
|
Weighted average rate
|
|
2.84
|
%
|
|
2.37
|
%
|
|
—
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Basel III Capital Rules
|
|||||||||||||||||||
|
|
December 31, 2016
|
|
December 31, 2015
|
|
Minimum
Regulatory
Requirements
|
|
Well
Capitalized
Requirements
|
|
Fully Phased-
in Minimum
Regulatory
Requirements
|
|||||||||||
|
|
Company
|
|
East
West
Bank |
|
Company
|
|
East
West
Bank |
|
|
|
||||||||||
CET1 risk-based capital
|
|
10.9
|
%
|
|
11.3
|
%
|
|
10.5
|
%
|
|
11.0
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
|
7.0
|
%
|
Tier I risk-based capital
|
|
10.9
|
%
|
|
11.3
|
%
|
|
10.7
|
%
|
|
11.0
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
|
8.5
|
%
|
Total risk-based capital
|
|
12.4
|
%
|
|
12.3
|
%
|
|
12.2
|
%
|
|
12.1
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
|
10.5
|
%
|
Tier I leverage capital
|
|
8.7
|
%
|
|
9.1
|
%
|
|
8.5
|
%
|
|
8.8
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
4.0
|
%
|
|
|
|
•
|
within 60 days of the Written Agreement, submit a written plan to strengthen the Board’s oversight of the Bank’s compliance with the applicable laws, rules and regulations relating to AML, including compliance with the BSA, the rules and regulations issued thereunder by the U.S. Department of Treasury, and the AML requirements of Regulation H of the Board of Governors (collectively, “BSA/AML Requirements”);
|
•
|
within 60 days of the Written Agreement, submit a written revised program for compliance with all applicable BSA/AML Requirements, which, at a minimum, will include, among other things, a system of internal controls to ensure compliance with all applicable BSA/AML Requirements and controls designed to ensure compliance with all applicable requirements relating to correspondent accounts for foreign financial institutions;
|
•
|
within 60 days of the Written Agreement, submit a written revised program for conducting appropriate levels of customer due diligence, including policies, procedures, and controls to ensure that the Bank collects, analyzes, and retains complete and accurate customer information for all account holders, including customers of the Bank’s foreign operations;
|
•
|
within 60 days of the Written Agreement, submit an enhanced written program to reasonably ensure the identification and timely, accurate and complete reporting by the Bank of all known or suspected violations of law or suspicious transactions to law enforcement and supervisory authorities as required by applicable suspicious activity reporting laws and regulations;
|
•
|
within 60 days of the Written Agreement, submit a written plan to the FRB for the full installation, testing, and activation of an effective automated transaction monitoring system to reasonably ensure the identification and timely, accurate, and complete reporting by the Bank of all known or suspected violations of law or suspicious transactions to law enforcement and supervisory authorities;
|
•
|
within 30 days following completion of the customer account remediation required by the Written Agreement, engage an independent consultant to conduct a review of, and prepare a report detailing findings relating to, account and transaction activity associated with any high risk customer accounts during a six-month period in 2014 to determine whether suspicious activity involving high risk customer accounts or transactions was properly identified and reported; and
|
•
|
within 60 days of the Written Agreement, submit a plan to enhance the Bank’s compliance with OFAC Regulations, including enhanced OFAC screening procedures and an improved methodology for assessing OFAC risks.
|
|
||||
($ in thousands)
|
|
Commitments
Outstanding |
||
Loan commitments
|
|
$
|
5,077,869
|
|
Commercial letters of credit and SBLCs
|
|
$
|
1,525,613
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Payment Due by Period
|
||||||||||||||||||||||
|
Less than
1 year |
|
1-3 years
|
|
3-5 years
|
|
After
5 years |
|
Indeterminate
Maturity (1) |
|
Total
|
|||||||||||||
Deposits
(2)
|
|
$
|
4,665,713
|
|
|
$
|
721,440
|
|
|
$
|
183,209
|
|
|
$
|
44,907
|
|
|
$
|
24,275,714
|
|
|
$
|
29,890,983
|
|
FHLB advances
(2)
|
|
—
|
|
|
80,657
|
|
|
—
|
|
|
240,986
|
|
|
—
|
|
|
321,643
|
|
||||||
Gross repurchase agreements
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
450,000
|
|
|
—
|
|
|
450,000
|
|
||||||
Affordable housing partnership and other tax credit investment commitments
|
|
96,390
|
|
|
52,103
|
|
|
20,674
|
|
|
5,089
|
|
|
—
|
|
|
174,256
|
|
||||||
Short-term borrowings
(2)
|
|
60,050
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,050
|
|
||||||
Long-term debt
(2)
|
|
20,000
|
|
|
20,000
|
|
|
—
|
|
|
146,327
|
|
|
—
|
|
|
186,327
|
|
||||||
Operating lease obligations
(3)
|
|
25,334
|
|
|
40,936
|
|
|
26,316
|
|
|
31,571
|
|
|
—
|
|
|
124,157
|
|
||||||
Unrecognized tax liabilities
(4)
|
|
—
|
|
|
—
|
|
|
18,346
|
|
|
—
|
|
|
—
|
|
|
18,346
|
|
||||||
Projected cash payments for postretirement benefit plan
|
|
310
|
|
|
648
|
|
|
688
|
|
|
8,214
|
|
|
—
|
|
|
9,860
|
|
||||||
Total contractual obligations
|
|
$
|
4,867,797
|
|
|
$
|
915,784
|
|
|
$
|
249,233
|
|
|
$
|
927,094
|
|
|
$
|
24,275,714
|
|
|
$
|
31,235,622
|
|
|
(1)
|
Includes deposits with no defined maturity, such as noninterest-bearing demand, interest-bearing checking, money-market and saving accounts.
|
(2)
|
Balances exclude contractual interest.
|
(3)
|
Represents the Company’s lease obligations for all rental properties.
|
(4)
|
Balance includes interest and penalties.
|
|
||||||||||||
Change in Interest Rates
(Basis Points)
|
|
Net Interest
Income
Volatility
(1)
|
|
EVE
Volatility
(2)
|
||||||||
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2016
|
|
December 31, 2015
|
|||||
+200
|
|
22.4
|
%
|
|
18.5
|
%
|
|
12.3
|
%
|
|
9.8
|
%
|
+100
|
|
12.0
|
%
|
|
9.6
|
%
|
|
7.5
|
%
|
|
5.3
|
%
|
-100
|
|
(6.8
|
)%
|
|
(4.0
|
)%
|
|
(5.0
|
)%
|
|
(4.2
|
)%
|
-200
|
|
(7.5
|
)%
|
|
(4.6
|
)%
|
|
(9.3
|
)%
|
|
(6.9
|
)%
|
|
(1)
|
The percentage change represents net interest income over 12 months in a stable interest rate environment versus net interest income in the various rate scenarios.
|
(2)
|
The percentage change represents net portfolio value of the Company in a stable interest rate environment versus net portfolio value in the various rate scenarios.
|
|
||||||
Change in Interest Rates
(Basis Points) |
|
Net Interest Income Volatility
|
||||
|
December 31, 2016
|
|||||
|
$1.00 Billion
Migration
12 Months
|
|
$2.00 Billion
Migration
12 Months |
|
$3.00 Billion
Migration 12 Months |
|
+200
|
|
19.7%
|
|
17.0%
|
|
14.2%
|
+100
|
|
10.3%
|
|
8.5%
|
|
6.8%
|
|
|
||||||||
|
|
December 31,
|
||||||
|
|
2016
|
|
2015
|
||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
460,559
|
|
|
$
|
340,717
|
|
Interest-bearing cash with banks
|
|
1,417,944
|
|
|
1,020,170
|
|
||
Cash and cash equivalents
|
|
1,878,503
|
|
|
1,360,887
|
|
||
Interest-bearing deposits with banks
|
|
323,148
|
|
|
299,916
|
|
||
Securities purchased under resale agreements (“resale agreements”)
|
|
2,000,000
|
|
|
1,600,000
|
|
||
Available-for-sale investment securities, at fair value (includes assets pledged as collateral of $767,437 in 2016 and $872,971 in 2015)
|
|
3,335,795
|
|
|
3,773,226
|
|
||
Held-to-maturity investment security, at cost (fair value of $144,593 in 2016)
|
|
143,971
|
|
|
—
|
|
||
Loans held-for-sale
|
|
23,076
|
|
|
31,958
|
|
||
Loans held-for-investment (net of allowance for loan losses of $260,520 in 2016 and $264,959 in 2015;
includes assets pledged as collateral of $16,441,068 in 2016 and $15,911,933 in 2015)
|
|
25,242,619
|
|
|
23,378,789
|
|
||
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost
|
|
17,250
|
|
|
28,770
|
|
||
Investment in Federal Reserve Bank stock, at cost
|
|
55,525
|
|
|
54,932
|
|
||
Investments in qualified affordable housing partnerships, net
|
|
183,917
|
|
|
193,978
|
|
||
Investments in tax credit and other investments, net
|
|
173,260
|
|
|
187,456
|
|
||
Premises and equipment (net of accumulated depreciation of $114,890 in 2016 and $100,060 in 2015)
|
|
159,923
|
|
|
166,993
|
|
||
Goodwill
|
|
469,433
|
|
|
469,433
|
|
||
Other assets
|
|
782,420
|
|
|
804,584
|
|
||
TOTAL
|
|
$
|
34,788,840
|
|
|
$
|
32,350,922
|
|
LIABILITIES
|
|
|
|
|
|
|
||
Customer deposits:
|
|
|
|
|
|
|
||
Noninterest-bearing
|
|
$
|
10,183,946
|
|
|
$
|
8,656,805
|
|
Interest-bearing
|
|
19,707,037
|
|
|
18,819,176
|
|
||
Total deposits
|
|
29,890,983
|
|
|
27,475,981
|
|
||
Short-term borrowings
|
|
60,050
|
|
|
—
|
|
||
FHLB advances
|
|
321,643
|
|
|
1,019,424
|
|
||
Securities sold under repurchase agreements (“repurchase agreements”)
|
|
350,000
|
|
|
—
|
|
||
Long-term debt
|
|
186,327
|
|
|
206,084
|
|
||
Accrued expenses and other liabilities
|
|
552,096
|
|
|
526,483
|
|
||
Total liabilities
|
|
31,361,099
|
|
|
29,227,972
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 14)
|
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 164,604,072 and 164,246,517 shares issued in 2016 and 2015, respectively.
|
|
164
|
|
|
164
|
|
||
Additional paid-in capital
|
|
1,727,434
|
|
|
1,701,295
|
|
||
Retained earnings
|
|
2,187,676
|
|
|
1,872,594
|
|
||
Treasury stock at cost — 20,436,621 shares in 2016 and 20,337,284 shares in 2015.
|
|
(439,387
|
)
|
|
(436,162
|
)
|
||
Accumulated other comprehensive loss (“AOCI”), net of tax
|
|
(48,146
|
)
|
|
(14,941
|
)
|
||
Total stockholders’ equity
|
|
3,427,741
|
|
|
3,122,950
|
|
||
TOTAL
|
|
$
|
34,788,840
|
|
|
$
|
32,350,922
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
|
|
|
|
|
|
|||
Loans receivable, including fees
|
|
$
|
1,035,377
|
|
|
$
|
968,625
|
|
|
$
|
1,059,205
|
|
Investment securities
|
|
53,399
|
|
|
41,375
|
|
|
44,684
|
|
|||
Resale agreements
|
|
30,547
|
|
|
19,799
|
|
|
20,323
|
|
|||
Investments in FHLB and Federal Reserve Bank stock
|
|
3,427
|
|
|
6,077
|
|
|
6,272
|
|
|||
Interest-bearing cash and deposits with banks
|
|
14,731
|
|
|
17,939
|
|
|
23,214
|
|
|||
Total interest and dividend income
|
|
1,137,481
|
|
|
1,053,815
|
|
|
1,153,698
|
|
|||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|||
Customer deposits
|
|
84,224
|
|
|
73,505
|
|
|
65,486
|
|
|||
Federal funds purchased and other short-term borrowings
|
|
713
|
|
|
58
|
|
|
—
|
|
|||
FHLB advances
|
|
5,585
|
|
|
4,270
|
|
|
4,116
|
|
|||
Repurchase agreements
|
|
9,304
|
|
|
20,907
|
|
|
38,395
|
|
|||
Long-term debt
|
|
5,017
|
|
|
4,636
|
|
|
4,823
|
|
|||
Total interest expense
|
|
104,843
|
|
|
103,376
|
|
|
112,820
|
|
|||
Net interest income before provision for credit losses
|
|
1,032,638
|
|
|
950,439
|
|
|
1,040,878
|
|
|||
Provision for credit losses
|
|
27,479
|
|
|
14,217
|
|
|
49,158
|
|
|||
Net interest income after provision for credit losses
|
|
1,005,159
|
|
|
936,222
|
|
|
991,720
|
|
|||
NONINTEREST INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|||
Branch fees
|
|
41,178
|
|
|
39,495
|
|
|
37,866
|
|
|||
Letters of credit fees and foreign exchange income
|
|
45,760
|
|
|
38,985
|
|
|
37,323
|
|
|||
Ancillary loan fees
|
|
19,352
|
|
|
15,029
|
|
|
10,616
|
|
|||
Wealth management fees
|
|
13,240
|
|
|
18,268
|
|
|
16,162
|
|
|||
Derivative fees and other income
|
|
16,781
|
|
|
16,493
|
|
|
10,991
|
|
|||
Net gains on sales of loans
|
|
6,087
|
|
|
24,874
|
|
|
39,132
|
|
|||
Net gains on sales of available-for-sale investment securities
|
|
10,362
|
|
|
40,367
|
|
|
10,715
|
|
|||
Changes in Federal Deposit Insurance Corporation (“FDIC”)
indemnification asset and receivable/payable
|
|
—
|
|
|
(37,980
|
)
|
|
(201,417
|
)
|
|||
Other fees and operating income
|
|
30,158
|
|
|
27,852
|
|
|
26,898
|
|
|||
Total noninterest income (loss)
|
|
182,918
|
|
|
183,383
|
|
|
(11,714
|
)
|
|||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|||
Compensation and employee benefits
|
|
300,115
|
|
|
262,193
|
|
|
231,838
|
|
|||
Occupancy and equipment expense
|
|
61,453
|
|
|
61,292
|
|
|
63,815
|
|
|||
Deposit insurance premiums and regulatory assessments
|
|
23,279
|
|
|
18,772
|
|
|
21,922
|
|
|||
Other real estate owned (“OREO”) expense (income)
|
|
1,474
|
|
|
(8,914
|
)
|
|
(3,591
|
)
|
|||
Legal expense
|
|
2,841
|
|
|
16,373
|
|
|
53,018
|
|
|||
Data processing
|
|
11,683
|
|
|
10,185
|
|
|
15,888
|
|
|||
Consulting expense
|
|
22,742
|
|
|
17,234
|
|
|
8,511
|
|
|||
Deposit related expenses
|
|
10,394
|
|
|
10,379
|
|
|
8,452
|
|
|||
Computer software expense
|
|
12,914
|
|
|
8,660
|
|
|
7,493
|
|
|||
Other operating expense
|
|
77,462
|
|
|
77,538
|
|
|
71,341
|
|
|||
Amortization of tax credit and other investments
|
|
83,446
|
|
|
36,120
|
|
|
44,092
|
|
|||
Amortization of core deposit intangibles
|
|
8,086
|
|
|
9,234
|
|
|
10,204
|
|
|||
Repurchase agreements’ extinguishment costs
|
|
—
|
|
|
21,818
|
|
|
—
|
|
|||
Total noninterest expense
|
|
615,889
|
|
|
540,884
|
|
|
532,983
|
|
|||
INCOME BEFORE INCOME TAXES
|
|
572,188
|
|
|
578,721
|
|
|
447,023
|
|
|||
INCOME TAX EXPENSE
|
|
140,511
|
|
|
194,044
|
|
|
101,145
|
|
|||
NET INCOME
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
|
$
|
345,878
|
|
EARNINGS PER SHARE (“EPS”)
|
|
|
|
|
|
|
||||||
BASIC
|
|
$
|
3.00
|
|
|
$
|
2.67
|
|
|
$
|
2.42
|
|
DILUTED
|
|
$
|
2.97
|
|
|
$
|
2.66
|
|
|
$
|
2.41
|
|
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
||||||
BASIC
|
|
144,087
|
|
|
143,818
|
|
|
142,952
|
|
|||
DILUTED
|
|
145,172
|
|
|
144,512
|
|
|
143,563
|
|
|||
DIVIDENDS DECLARED PER COMMON SHARE
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
0.72
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
|
$
|
345,878
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
||||||
Net change in unrealized (losses) gains on available-for-sale investment securities
|
|
(22,628
|
)
|
|
(10,381
|
)
|
|
34,696
|
|
|||
Foreign currency translation adjustments
|
|
(10,577
|
)
|
|
(8,797
|
)
|
|
—
|
|
|||
Other comprehensive (loss) income
|
|
(33,205
|
)
|
|
(19,178
|
)
|
|
34,696
|
|
|||
COMPREHENSIVE INCOME
|
|
$
|
398,472
|
|
|
$
|
365,499
|
|
|
$
|
380,574
|
|
|
|
|||||||||||||||||||||||
|
|
Common Stock and Additional Paid-in Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
AOCI,
net of tax
|
|
Total
Stockholders’
Equity
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
BALANCE, JANUARY 1, 2014
|
|
137,630,896
|
|
|
$
|
1,571,833
|
|
|
$
|
1,362,278
|
|
|
$
|
(537,279
|
)
|
|
$
|
(30,459
|
)
|
|
$
|
2,366,373
|
|
Net income
|
|
—
|
|
|
—
|
|
|
345,878
|
|
|
—
|
|
|
—
|
|
|
345,878
|
|
|||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,696
|
|
|
34,696
|
|
|||||
Stock compensation costs
|
|
—
|
|
|
13,883
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,883
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements, and related tax benefits
|
|
368,240
|
|
|
14,316
|
|
|
—
|
|
|
(10,705
|
)
|
|
—
|
|
|
3,611
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(104,015
|
)
|
|
—
|
|
|
—
|
|
|
(104,015
|
)
|
|||||
Issuance of common stock pursuant to MetroCorp Bancshares, Inc. (“MetroCorp”) acquisition
|
|
5,583,093
|
|
|
73,044
|
|
|
—
|
|
|
117,786
|
|
|
—
|
|
|
190,830
|
|
|||||
Warrant acquired pursuant to MetroCorp acquisition
|
|
—
|
|
|
4,855
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,855
|
|
|||||
BALANCE, DECEMBER 31, 2014
|
|
143,582,229
|
|
|
$
|
1,677,931
|
|
|
$
|
1,604,141
|
|
|
$
|
(430,198
|
)
|
|
$
|
4,237
|
|
|
$
|
2,856,111
|
|
Net income
|
|
—
|
|
|
—
|
|
|
384,677
|
|
|
—
|
|
|
—
|
|
|
384,677
|
|
|||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,178
|
)
|
|
(19,178
|
)
|
|||||
Stock compensation costs
|
|
—
|
|
|
16,502
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,502
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements, and related tax benefits
|
|
327,004
|
|
|
7,026
|
|
|
—
|
|
|
(5,964
|
)
|
|
—
|
|
|
1,062
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(116,224
|
)
|
|
—
|
|
|
—
|
|
|
(116,224
|
)
|
|||||
BALANCE, DECEMBER 31, 2015
|
|
143,909,233
|
|
|
$
|
1,701,459
|
|
|
$
|
1,872,594
|
|
|
$
|
(436,162
|
)
|
|
$
|
(14,941
|
)
|
|
$
|
3,122,950
|
|
Net income
|
|
—
|
|
|
—
|
|
|
431,677
|
|
|
—
|
|
|
—
|
|
|
431,677
|
|
|||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,205
|
)
|
|
(33,205
|
)
|
|||||
Stock compensation costs
|
|
—
|
|
|
22,102
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,102
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements, and related tax benefits
|
|
258,218
|
|
|
4,037
|
|
|
—
|
|
|
(3,225
|
)
|
|
—
|
|
|
812
|
|
|||||
Common stock dividends
|
|
—
|
|
|
—
|
|
|
(116,595
|
)
|
|
—
|
|
|
—
|
|
|
(116,595
|
)
|
|||||
BALANCE, DECEMBER 31, 2016
|
|
144,167,451
|
|
|
$
|
1,727,598
|
|
|
$
|
2,187,676
|
|
|
$
|
(439,387
|
)
|
|
$
|
(48,146
|
)
|
|
$
|
3,427,741
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
|
$
|
345,878
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
|
162,596
|
|
|
107,397
|
|
|
117,485
|
|
|||
Accretion of discount and amortization of premiums, net
|
|
(51,042
|
)
|
|
(63,770
|
)
|
|
(184,318
|
)
|
|||
Changes in FDIC indemnification asset and receivable/payable
|
|
—
|
|
|
37,980
|
|
|
201,417
|
|
|||
Stock compensation costs
|
|
22,102
|
|
|
16,502
|
|
|
13,883
|
|
|||
Deferred tax expenses (benefit)
|
|
26,966
|
|
|
261,214
|
|
|
(147,868
|
)
|
|||
Provision for credit losses
|
|
27,479
|
|
|
14,217
|
|
|
49,158
|
|
|||
Net gains on sales of loans
|
|
(6,087
|
)
|
|
(24,874
|
)
|
|
(39,132
|
)
|
|||
Net gains on sales of available-for-sale investment securities
|
|
(10,362
|
)
|
|
(40,367
|
)
|
|
(10,715
|
)
|
|||
Net gains on sales of premises and equipment and OREO
|
|
(4,129
|
)
|
|
(14,646
|
)
|
|
(14,056
|
)
|
|||
Originations and purchases of loans held-for-sale
|
|
(18,804
|
)
|
|
(623
|
)
|
|
(92,475
|
)
|
|||
Proceeds from sales and paydowns/payoffs in loans held-for-sale
|
|
23,749
|
|
|
3,174
|
|
|
288,706
|
|
|||
Repurchase agreements’ extinguishment costs
|
|
—
|
|
|
21,818
|
|
|
—
|
|
|||
Net payments to FDIC shared-loss agreements
|
|
—
|
|
|
(132,999
|
)
|
|
(1,343
|
)
|
|||
Net change in accrued interest receivable and other assets
|
|
24,837
|
|
|
(113,457
|
)
|
|
(89,036
|
)
|
|||
Net change in accrued expenses and other liabilities
|
|
15,353
|
|
|
16,785
|
|
|
(38,586
|
)
|
|||
Other net operating activities
|
|
(2,479
|
)
|
|
(3,404
|
)
|
|
(6,100
|
)
|
|||
Total adjustments
|
|
210,179
|
|
|
84,947
|
|
|
47,020
|
|
|||
Net cash provided by operating activities
|
|
641,856
|
|
|
469,624
|
|
|
392,898
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Acquisitions, net of cash paid
|
|
—
|
|
|
—
|
|
|
138,465
|
|
|||
Net (increase) decrease in:
|
|
|
|
|
|
|
|
|
|
|||
Loans held-for-investment
|
|
(1,549,736
|
)
|
|
(3,285,436
|
)
|
|
(2,552,244
|
)
|
|||
Interest-bearing deposits with banks
|
|
(38,249
|
)
|
|
30,140
|
|
|
(81,241
|
)
|
|||
Investments in qualified affordable housing partnerships, tax credit and other investments
|
|
(87,860
|
)
|
|
(95,074
|
)
|
|
(87,925
|
)
|
|||
Purchases of:
|
|
|
|
|
|
|
|
|
|
|||
Resale agreements
|
|
(1,550,000
|
)
|
|
(1,675,000
|
)
|
|
(925,000
|
)
|
|||
Available-for-sale investment securities
|
|
(2,396,199
|
)
|
|
(3,547,193
|
)
|
|
(960,135
|
)
|
|||
Loans held-for-investment
|
|
(1,142,054
|
)
|
|
(282,548
|
)
|
|
(865,267
|
)
|
|||
Proceeds from sale of:
|
|
|
|
|
|
|
|
|
|
|||
Available-for-sale investment securities
|
|
1,275,645
|
|
|
1,669,334
|
|
|
623,689
|
|
|||
Loans held-for-investment
|
|
661,025
|
|
|
1,729,187
|
|
|
856,434
|
|
|||
OREO
|
|
7,408
|
|
|
41,050
|
|
|
70,936
|
|
|||
Paydowns and maturities of resale agreements
|
|
1,500,000
|
|
|
1,050,000
|
|
|
800,000
|
|
|||
Repayments, maturities and redemptions of available-for-sale investment securities
|
|
1,503,127
|
|
|
734,934
|
|
|
554,742
|
|
|||
Other net investing activities
|
|
24,233
|
|
|
2,725
|
|
|
67,653
|
|
|||
Net cash used in investing activities
|
|
(1,792,660
|
)
|
|
(3,627,881
|
)
|
|
(2,359,893
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Net increase in:
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
2,452,870
|
|
|
3,492,603
|
|
|
2,277,007
|
|
|||
Short-term borrowings
|
|
62,506
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from:
|
|
|
|
|
|
|
|
|
|
|||
FHLB advances
|
|
—
|
|
|
700,000
|
|
|
—
|
|
|||
Issuance of common stock pursuant to various stock compensation plans and agreements
|
|
2,982
|
|
|
2,835
|
|
|
6,794
|
|
|||
Payments for:
|
|
|
|
|
|
|
|
|
|
|||
Repayment of FHLB advances
|
|
(700,000
|
)
|
|
—
|
|
|
(10,000
|
)
|
|||
Repayment of long-term debt
|
|
(20,000
|
)
|
|
(20,000
|
)
|
|
(30,310
|
)
|
|||
Extinguishment of repurchase agreements
|
|
—
|
|
|
(566,818
|
)
|
|
(25,000
|
)
|
|||
Repurchase of vested shares due to employee tax liability
|
|
(3,225
|
)
|
|
(5,964
|
)
|
|
(10,326
|
)
|
|||
Cash dividends on common stocks
|
|
(115,828
|
)
|
|
(115,641
|
)
|
|
(103,618
|
)
|
|||
Other net financing activities
|
|
1,055
|
|
|
3,291
|
|
|
6,513
|
|
|||
Net cash provided by financing activities
|
|
1,680,360
|
|
|
3,490,306
|
|
|
2,111,060
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(11,940
|
)
|
|
(11,047
|
)
|
|
—
|
|
|||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
517,616
|
|
|
321,002
|
|
|
144,065
|
|
|||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
1,360,887
|
|
|
1,039,885
|
|
|
895,820
|
|
|||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
1,878,503
|
|
|
$
|
1,360,887
|
|
|
$
|
1,039,885
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
||||||
Cash paid (received) during the year for:
|
|
|
|
|
|
|
|
|
|
|||
Interest
|
|
$
|
104,251
|
|
|
$
|
105,831
|
|
|
$
|
112,695
|
|
Income tax payments (refunds), net
|
|
$
|
39,478
|
|
|
$
|
(18,601
|
)
|
|
$
|
321,177
|
|
Noncash investing and financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Loans held-for-investment transferred to loans held-for-sale, net
|
|
$
|
814,157
|
|
|
$
|
1,694,245
|
|
|
$
|
837,389
|
|
Transfers to OREO
|
|
$
|
8,083
|
|
|
$
|
9,296
|
|
|
$
|
47,547
|
|
Loans to facilitate sale of OREO
|
|
$
|
—
|
|
|
$
|
1,750
|
|
|
$
|
2,000
|
|
Held-to-maturity investment security retained from securitization of loans
|
|
$
|
160,135
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Dividends payable
|
|
$
|
767
|
|
|
$
|
583
|
|
|
$
|
397
|
|
Issuance of common stock related to acquisition
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
190,830
|
|
|
|
|
Buildings and building improvements
|
25 years
|
Furniture, fixtures and equipment
|
3 to 7 years
|
Leasehold improvements
|
Term of lease or useful life, whichever is shorter
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Assets (Liabilities) Measured at Fair Value on a Recurring Basis
as of December 31, 2016 |
||||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
|
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury securities
|
|
$
|
720,479
|
|
|
$
|
720,479
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
274,866
|
|
|
—
|
|
|
274,866
|
|
|
—
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial mortgage-backed securities
|
|
266,799
|
|
|
—
|
|
|
266,799
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
1,258,747
|
|
|
—
|
|
|
1,258,747
|
|
|
—
|
|
||||
Municipal securities
|
|
147,654
|
|
|
—
|
|
|
147,654
|
|
|
—
|
|
||||
Non-agency residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment grade
|
|
11,477
|
|
|
—
|
|
|
11,477
|
|
|
—
|
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment grade
|
|
222,377
|
|
|
—
|
|
|
222,377
|
|
|
—
|
|
||||
Non-investment grade
|
|
9,173
|
|
|
—
|
|
|
9,173
|
|
|
—
|
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
383,894
|
|
|
—
|
|
|
383,894
|
|
|
—
|
|
||||
Other securities
|
|
40,329
|
|
|
30,991
|
|
|
9,338
|
|
|
—
|
|
||||
Total available-for-sale investment securities
|
|
$
|
3,335,795
|
|
|
$
|
751,470
|
|
|
$
|
2,584,325
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts
|
|
$
|
4,325
|
|
|
$
|
—
|
|
|
$
|
4,325
|
|
|
$
|
—
|
|
Interest rate swaps and options
|
|
$
|
67,578
|
|
|
$
|
—
|
|
|
$
|
67,578
|
|
|
$
|
—
|
|
Foreign exchange contracts
|
|
$
|
11,874
|
|
|
$
|
—
|
|
|
$
|
11,874
|
|
|
$
|
—
|
|
Credit risk participation agreements (“RPAs”)
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps on certificates of deposit
|
|
$
|
(5,976
|
)
|
|
$
|
—
|
|
|
$
|
(5,976
|
)
|
|
$
|
—
|
|
Interest rate swaps and options
|
|
$
|
(65,131
|
)
|
|
$
|
—
|
|
|
$
|
(65,131
|
)
|
|
$
|
—
|
|
Foreign exchange contracts
|
|
$
|
(11,213
|
)
|
|
$
|
—
|
|
|
$
|
(11,213
|
)
|
|
$
|
—
|
|
RPAs
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Assets (Liabilities) Measured at Fair Value on a Recurring Basis
as of December 31, 2015 |
||||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury securities
|
|
$
|
998,515
|
|
|
$
|
998,515
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
768,849
|
|
|
—
|
|
|
768,849
|
|
|
—
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial mortgage-backed securities
|
|
351,662
|
|
|
—
|
|
|
351,662
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
997,396
|
|
|
—
|
|
|
997,396
|
|
|
—
|
|
||||
Municipal securities
|
|
175,649
|
|
|
—
|
|
|
175,649
|
|
|
—
|
|
||||
Non-agency residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment grade
|
|
62,393
|
|
|
—
|
|
|
62,393
|
|
|
—
|
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment grade
|
|
279,432
|
|
|
—
|
|
|
279,432
|
|
|
—
|
|
||||
Non-investment grade
|
|
9,642
|
|
|
—
|
|
|
9,642
|
|
|
—
|
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
89,795
|
|
|
4,514
|
|
|
85,281
|
|
|
—
|
|
||||
Other securities
|
|
39,893
|
|
|
31,121
|
|
|
8,772
|
|
|
—
|
|
||||
Total available-for-sale investment securities
|
|
$
|
3,773,226
|
|
|
$
|
1,034,150
|
|
|
$
|
2,739,076
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts
|
|
$
|
2,365
|
|
|
$
|
—
|
|
|
$
|
2,365
|
|
|
$
|
—
|
|
Interest rate swaps and options
|
|
$
|
67,215
|
|
|
$
|
—
|
|
|
$
|
67,215
|
|
|
$
|
—
|
|
Foreign exchange contracts
|
|
$
|
10,254
|
|
|
$
|
—
|
|
|
$
|
10,254
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps on certificates of deposit
|
|
$
|
(5,213
|
)
|
|
$
|
—
|
|
|
$
|
(5,213
|
)
|
|
$
|
—
|
|
Interest rate swaps and options
|
|
$
|
(67,325
|
)
|
|
$
|
—
|
|
|
$
|
(67,325
|
)
|
|
$
|
—
|
|
Foreign exchange contracts
|
|
$
|
(9,350
|
)
|
|
$
|
—
|
|
|
$
|
(9,350
|
)
|
|
$
|
—
|
|
RPAs
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||
|
2015
|
|
2014
|
|||||||||||||
|
Corporate
Debt Securities: Non-Investment Grade |
|
Embedded
Derivative Liabilities |
|
Corporate
Debt Securities: Non-Investment Grade |
|
Embedded
Derivative Liabilities |
|||||||||
Beginning balance
|
|
$
|
6,528
|
|
|
$
|
(3,392
|
)
|
|
$
|
6,371
|
|
|
$
|
(3,655
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Included in earnings
(1)
|
|
960
|
|
|
(20
|
)
|
|
802
|
|
|
263
|
|
||||
Included in other comprehensive (loss) income
(2)
|
|
922
|
|
|
—
|
|
|
2,326
|
|
|
—
|
|
||||
Sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales
|
|
(7,219
|
)
|
|
—
|
|
|
(2,595
|
)
|
|
—
|
|
||||
Settlements
|
|
(98
|
)
|
|
3,412
|
|
|
(376
|
)
|
|
—
|
|
||||
Transfers out of Level 3
|
|
(1,093
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Ending balance
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,528
|
|
|
$
|
(3,392
|
)
|
Changes in unrealized gains included in earnings relating to assets and liabilities held for the period
(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
263
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Net gains or losses (realized and unrealized) of corporate debt securities and embedded derivative liabilities are included in
Net gains on sales of available-for-sale investment securities
and
Other operating expense
, respectively, on the Consolidated Statements of Income.
|
(2)
|
Unrealized gains or losses on available-for-sale investment securities are reported in
Other comprehensive (loss) income, net of tax
, on the Consolidated Statements of Comprehensive Income.
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 2016 |
||||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
CRE
|
|
$
|
14,908
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,908
|
|
C&I
|
|
52,172
|
|
|
—
|
|
|
—
|
|
|
52,172
|
|
||||
Residential
|
|
2,464
|
|
|
—
|
|
|
—
|
|
|
2,464
|
|
||||
Consumer
|
|
610
|
|
|
—
|
|
|
—
|
|
|
610
|
|
||||
Total non-PCI impaired loans
|
|
$
|
70,154
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,154
|
|
OREO
|
|
$
|
345
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
345
|
|
Loans held-for-sale
|
|
$
|
22,703
|
|
|
$
|
—
|
|
|
$
|
22,703
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 2015 |
||||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
CRE
|
|
$
|
17,252
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,252
|
|
C&I
|
|
35,558
|
|
|
—
|
|
|
—
|
|
|
35,558
|
|
||||
Residential
|
|
16,472
|
|
|
—
|
|
|
—
|
|
|
16,472
|
|
||||
Consumer
|
|
1,180
|
|
|
—
|
|
|
—
|
|
|
1,180
|
|
||||
Total non-PCI impaired loans
|
|
$
|
70,462
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,462
|
|
OREO
|
|
$
|
4,929
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,929
|
|
Loans held-for-sale
|
|
$
|
29,238
|
|
|
$
|
—
|
|
|
$
|
29,238
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
|
|
|
|||
CRE
|
|
$
|
1,084
|
|
|
$
|
(2,747
|
)
|
|
$
|
2,196
|
|
C&I
|
|
(27,106
|
)
|
|
(5,612
|
)
|
|
(9,169
|
)
|
|||
Residential
|
|
(224
|
)
|
|
(611
|
)
|
|
(61
|
)
|
|||
Consumer
|
|
34
|
|
|
(59
|
)
|
|
(1
|
)
|
|||
Total non-PCI impaired loans
|
|
$
|
(26,212
|
)
|
|
$
|
(9,029
|
)
|
|
$
|
(7,035
|
)
|
OREO
|
|
$
|
(23
|
)
|
|
$
|
(233
|
)
|
|
$
|
(2,600
|
)
|
Loans held-for-sale
|
|
$
|
(5,565
|
)
|
|
$
|
(1,991
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements (Level 3) |
|
Valuation
Technique(s) |
|
Unobservable
Input(s) |
|
Range
of
Inputs
|
|
Weighted
Average |
||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-PCI impaired loans
|
|
$
|
31,835
|
|
|
Discounted cash flow
|
|
Discount
|
|
0% — 62%
|
|
7%
|
|
|
$
|
38,319
|
|
|
Market comparables
|
|
Discount
(1)
|
|
0% — 100%
|
|
18%
|
OREO
|
|
$
|
345
|
|
|
Appraisal
|
|
Selling cost
|
|
8%
|
|
8%
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
||
Non-PCI impaired loans
|
|
$
|
27,522
|
|
|
Discounted cash flow
|
|
Discount
|
|
0%
—
87%
|
|
30%
|
|
|
$
|
42,940
|
|
|
Market comparables
|
|
Discount
(1)
|
|
0%
—
100%
|
|
17%
|
OREO
|
|
$
|
4,929
|
|
|
Appraisal
|
|
Selling cost
|
|
8%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Discount is adjusted for factors such as liquidation cost of collateral and selling cost.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
||||||||||||||||||
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
1,878,503
|
|
|
$
|
1,878,503
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,878,503
|
|
Interest-bearing deposits with banks
|
|
$
|
323,148
|
|
|
$
|
—
|
|
|
$
|
323,148
|
|
|
$
|
—
|
|
|
$
|
323,148
|
|
Resale agreements
(1)
|
|
$
|
2,000,000
|
|
|
$
|
—
|
|
|
$
|
1,980,457
|
|
|
$
|
—
|
|
|
$
|
1,980,457
|
|
Held-to-maturity investment security
|
|
$
|
143,971
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
144,593
|
|
|
$
|
144,593
|
|
Loans held-for-sale
|
|
$
|
23,076
|
|
|
$
|
—
|
|
|
$
|
23,076
|
|
|
$
|
—
|
|
|
$
|
23,076
|
|
Loans held-for-investment, net
|
|
$
|
25,242,619
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,915,143
|
|
|
$
|
24,915,143
|
|
Investment in FHLB stock
|
|
$
|
17,250
|
|
|
$
|
—
|
|
|
$
|
17,250
|
|
|
$
|
—
|
|
|
$
|
17,250
|
|
Investment in Federal Reserve Bank stock
|
|
$
|
55,525
|
|
|
$
|
—
|
|
|
$
|
55,525
|
|
|
$
|
—
|
|
|
$
|
55,525
|
|
Accrued interest receivable
|
|
$
|
100,524
|
|
|
$
|
—
|
|
|
$
|
100,524
|
|
|
$
|
—
|
|
|
$
|
100,524
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Customer deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand, interest checking, saving and money market deposits
|
|
$
|
24,275,714
|
|
|
$
|
—
|
|
|
$
|
24,275,714
|
|
|
$
|
—
|
|
|
$
|
24,275,714
|
|
Time deposits
|
|
$
|
5,615,269
|
|
|
$
|
—
|
|
|
$
|
5,611,746
|
|
|
$
|
—
|
|
|
$
|
5,611,746
|
|
Short-term borrowings
|
|
$
|
60,050
|
|
|
$
|
—
|
|
|
$
|
60,050
|
|
|
$
|
—
|
|
|
$
|
60,050
|
|
FHLB advances
|
|
$
|
321,643
|
|
|
$
|
—
|
|
|
$
|
334,859
|
|
|
$
|
—
|
|
|
$
|
334,859
|
|
Repurchase agreements
(1)
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
411,368
|
|
|
$
|
—
|
|
|
$
|
411,368
|
|
Long-term debt
|
|
$
|
186,327
|
|
|
$
|
—
|
|
|
$
|
186,670
|
|
|
$
|
—
|
|
|
$
|
186,670
|
|
Accrued interest payable
|
|
$
|
9,440
|
|
|
$
|
—
|
|
|
$
|
9,440
|
|
|
$
|
—
|
|
|
$
|
9,440
|
|
|
(1)
|
Resale and repurchase agreements are reported net pursuant to ASC 210-20-45,
Balance Sheet Offsetting
. As of
December 31, 2016
,
$100.0 million
out of
$450.0 million
of repurchase agreements was eligible for netting against resale agreements.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2015
|
||||||||||||||||||
|
Carrying
Amount |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value |
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
1,360,887
|
|
|
$
|
1,360,887
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,360,887
|
|
Interest-bearing deposits with banks
|
|
$
|
299,916
|
|
|
$
|
—
|
|
|
$
|
299,916
|
|
|
$
|
—
|
|
|
$
|
299,916
|
|
Resale agreements
(1)
|
|
$
|
1,600,000
|
|
|
$
|
—
|
|
|
$
|
1,533,961
|
|
|
$
|
—
|
|
|
$
|
1,533,961
|
|
Loans held-for-sale
|
|
$
|
31,958
|
|
|
$
|
—
|
|
|
$
|
31,958
|
|
|
$
|
—
|
|
|
$
|
31,958
|
|
Loans held-for-investment, net
|
|
$
|
23,378,789
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,000,817
|
|
|
$
|
23,000,817
|
|
Investment in FHLB stock
|
|
$
|
28,770
|
|
|
$
|
—
|
|
|
$
|
28,770
|
|
|
$
|
—
|
|
|
$
|
28,770
|
|
Investment in Federal Reserve Bank stock
|
|
$
|
54,932
|
|
|
$
|
—
|
|
|
$
|
54,932
|
|
|
$
|
—
|
|
|
$
|
54,932
|
|
Accrued interest receivable
|
|
$
|
89,243
|
|
|
$
|
—
|
|
|
$
|
89,243
|
|
|
$
|
—
|
|
|
$
|
89,243
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Customer deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand, interest checking, savings and
money market deposits
|
|
$
|
20,859,086
|
|
|
$
|
—
|
|
|
$
|
20,859,086
|
|
|
$
|
—
|
|
|
$
|
20,859,086
|
|
Time deposits
|
|
$
|
6,616,895
|
|
|
$
|
—
|
|
|
$
|
6,606,942
|
|
|
$
|
—
|
|
|
$
|
6,606,942
|
|
FHLB advances
|
|
$
|
1,019,424
|
|
|
$
|
—
|
|
|
$
|
1,032,000
|
|
|
$
|
—
|
|
|
$
|
1,032,000
|
|
Long-term debt
|
|
$
|
206,084
|
|
|
$
|
—
|
|
|
$
|
186,593
|
|
|
$
|
—
|
|
|
$
|
186,593
|
|
Accrued interest payable
|
|
$
|
8,848
|
|
|
$
|
—
|
|
|
$
|
8,848
|
|
|
$
|
—
|
|
|
$
|
8,848
|
|
|
(1)
|
Resale and repurchase agreements are reported net pursuant to ASC 210-20-45,
Balance Sheet Offsetting
.
As of December 31, 2015
, the carrying amount of
$450.0 million
of repurchase agreements was eligible for netting against resale agreements, resulting in no repurchase agreements’ balances being reported.
|
NOTE 4
|
—
|
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
As of December 31, 2016
|
||||||||||||||||||||||
|
|
Gross Amounts
of Recognized Assets |
|
Gross Amounts
Offset on the Consolidated Balance Sheets |
|
Net Amounts of
Assets Presented on the Consolidated Balance Sheets |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheets |
|
Net
Amount |
||||||||||||||
Assets
|
|
|
|
|
Financial
Instruments |
|
Collateral
Received |
|
||||||||||||||||
Resale agreements
|
|
$
|
2,100,000
|
|
|
$
|
(100,000
|
)
|
|
$
|
2,000,000
|
|
|
$
|
(150,000
|
)
|
(1)
|
$
|
(1,839,120
|
)
|
(2)
|
$
|
10,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
Gross Amounts
of Recognized Liabilities |
|
Gross Amounts
Offset on the Consolidated Balance Sheets |
|
Net Amounts of
Liabilities Presented on the Consolidated Balance Sheets |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheets |
|
Net
Amount |
||||||||||||||
|
|
|
|
Financial
Instruments |
|
Collateral
Pledged |
|
|||||||||||||||||
Repurchase agreements
|
|
$
|
450,000
|
|
|
$
|
(100,000
|
)
|
|
$
|
350,000
|
|
|
$
|
(150,000
|
)
|
(1)
|
$
|
(200,000
|
)
|
(3)
|
$
|
—
|
|
|
|
||||||||||||||||||||||||
($ In thousands)
|
|
As of December 31, 2015
|
||||||||||||||||||||||
|
|
Gross Amounts
of Recognized Assets |
|
Gross Amounts
Offset on the Consolidated Balance Sheets |
|
Net Amounts of
Assets Presented on the Consolidated Balance Sheets |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheets |
|
Net
Amount
|
||||||||||||||
Assets
|
|
|
|
|
Financial
Instruments |
|
Collateral
Received |
|
||||||||||||||||
Resale agreements
|
|
$
|
2,050,000
|
|
|
$
|
(450,000
|
)
|
|
$
|
1,600,000
|
|
|
$
|
—
|
|
|
$
|
(1,593,503
|
)
|
(2)
|
$
|
6,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
Gross Amounts
of Recognized Liabilities |
|
Gross Amounts
Offset on the Consolidated Balance Sheets |
|
Net Amounts of
Liabilities Presented on the Consolidated Balance Sheets |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheets |
|
Net
Amount
|
||||||||||||||
|
|
|
|
Financial
Instruments |
|
Collateral
Pledged |
|
|||||||||||||||||
Repurchase agreements
|
|
$
|
450,000
|
|
|
$
|
(450,000
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(3)
|
$
|
—
|
|
|
(1)
|
Represents financial instruments subject to enforceable master netting arrangements that are not eligible to be offset under ASC 210-20-45 but would be eligible for offsetting to the extent that an event of default has occurred.
|
(2)
|
Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty.
|
(3)
|
Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability owed to each counterparty.
|
NOTE 5
|
—
|
INVESTMENT SECURITIES
|
|
||||||||||||||||
($ in thousands)
|
|
As of December 31, 2016
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
730,287
|
|
|
$
|
21
|
|
|
$
|
(9,829
|
)
|
|
$
|
720,479
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
277,891
|
|
|
224
|
|
|
(3,249
|
)
|
|
274,866
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
272,672
|
|
|
345
|
|
|
(6,218
|
)
|
|
266,799
|
|
||||
Residential mortgage-backed securities
|
|
1,266,372
|
|
|
3,924
|
|
|
(11,549
|
)
|
|
1,258,747
|
|
||||
Municipal securities
|
|
148,302
|
|
|
1,252
|
|
|
(1,900
|
)
|
|
147,654
|
|
||||
Non-agency residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
11,592
|
|
|
—
|
|
|
(115
|
)
|
|
11,477
|
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
222,190
|
|
|
562
|
|
|
(375
|
)
|
|
222,377
|
|
||||
Non-investment grade
(1)
|
|
10,191
|
|
|
—
|
|
|
(1,018
|
)
|
|
9,173
|
|
||||
Foreign bonds
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1) (2)
|
|
405,443
|
|
|
30
|
|
|
(21,579
|
)
|
|
383,894
|
|
||||
Other securities
|
|
40,501
|
|
|
337
|
|
|
(509
|
)
|
|
40,329
|
|
||||
Total available-for-sale investment securities
|
|
$
|
3,385,441
|
|
|
$
|
6,695
|
|
|
$
|
(56,341
|
)
|
|
$
|
3,335,795
|
|
Held-to-maturity investment security:
|
|
|
|
|
|
|
|
|
||||||||
Non-agency commercial mortgage-backed security
|
|
$
|
143,971
|
|
|
$
|
622
|
|
|
$
|
—
|
|
|
$
|
144,593
|
|
Total investment securities
|
|
$
|
3,529,412
|
|
|
$
|
7,317
|
|
|
$
|
(56,341
|
)
|
|
$
|
3,480,388
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
As of December 31, 2015
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
1,002,874
|
|
|
$
|
33
|
|
|
$
|
(4,392
|
)
|
|
$
|
998,515
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
771,288
|
|
|
555
|
|
|
(2,994
|
)
|
|
768,849
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
354,418
|
|
|
268
|
|
|
(3,024
|
)
|
|
351,662
|
|
||||
Residential mortgage-backed securities
|
|
996,255
|
|
|
7,542
|
|
|
(6,401
|
)
|
|
997,396
|
|
||||
Municipal securities
|
|
173,785
|
|
|
2,657
|
|
|
(793
|
)
|
|
175,649
|
|
||||
Non-agency residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
62,133
|
|
|
433
|
|
|
(173
|
)
|
|
62,393
|
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
280,850
|
|
|
129
|
|
|
(1,547
|
)
|
|
279,432
|
|
||||
Non-investment grade
(1)
|
|
11,491
|
|
|
—
|
|
|
(1,849
|
)
|
|
9,642
|
|
||||
Foreign Bonds
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1) (2)
|
|
90,586
|
|
|
3
|
|
|
(794
|
)
|
|
89,795
|
|
||||
Other securities
|
|
40,149
|
|
|
124
|
|
|
(380
|
)
|
|
39,893
|
|
||||
Total available-for-sale investment securities
|
|
$
|
3,783,829
|
|
|
$
|
11,744
|
|
|
$
|
(22,347
|
)
|
|
$
|
3,773,226
|
|
|
(1)
|
Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade. Classifications are based on the lower of the credit ratings by S&P or Moody’s.
|
(2)
|
Fair values of foreign bonds include
$353.6 million
and
$49.7 million
of multilateral development bank bonds as of
December 31, 2016
and
2015
, respectively.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
As of December 31, 2016
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
670,268
|
|
|
$
|
(9,829
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
670,268
|
|
|
$
|
(9,829
|
)
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
203,901
|
|
|
(3,249
|
)
|
|
—
|
|
|
—
|
|
|
203,901
|
|
|
(3,249
|
)
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
202,106
|
|
|
(5,452
|
)
|
|
29,201
|
|
|
(766
|
)
|
|
231,307
|
|
|
(6,218
|
)
|
||||||
Residential mortgage-backed securities
|
|
629,324
|
|
|
(9,594
|
)
|
|
119,603
|
|
|
(1,955
|
)
|
|
748,927
|
|
|
(11,549
|
)
|
||||||
Municipal securities
|
|
57,655
|
|
|
(1,699
|
)
|
|
2,692
|
|
|
(201
|
)
|
|
60,347
|
|
|
(1,900
|
)
|
||||||
Non-agency residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
5,033
|
|
|
(101
|
)
|
|
6,444
|
|
|
(14
|
)
|
|
11,477
|
|
|
(115
|
)
|
||||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
—
|
|
|
—
|
|
|
71,667
|
|
|
(375
|
)
|
|
71,667
|
|
|
(375
|
)
|
||||||
Non-investment grade
|
|
—
|
|
|
—
|
|
|
9,173
|
|
|
(1,018
|
)
|
|
9,173
|
|
|
(1,018
|
)
|
||||||
Foreign bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
|
363,618
|
|
|
(21,327
|
)
|
|
14,258
|
|
|
(252
|
)
|
|
377,876
|
|
|
(21,579
|
)
|
||||||
Other securities
|
|
30,991
|
|
|
(509
|
)
|
|
—
|
|
|
—
|
|
|
30,991
|
|
|
(509
|
)
|
||||||
Total available-for-sale investment securities
|
|
$
|
2,162,896
|
|
|
$
|
(51,760
|
)
|
|
$
|
253,038
|
|
|
$
|
(4,581
|
)
|
|
$
|
2,415,934
|
|
|
$
|
(56,341
|
)
|
Held-to-maturity investment security:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-agency commercial mortgage-backed security
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total investment securities
|
|
$
|
2,162,896
|
|
|
$
|
(51,760
|
)
|
|
$
|
253,038
|
|
|
$
|
(4,581
|
)
|
|
$
|
2,415,934
|
|
|
$
|
(56,341
|
)
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
As of December 31, 2015
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
907,400
|
|
|
$
|
(4,250
|
)
|
|
$
|
20,282
|
|
|
$
|
(142
|
)
|
|
$
|
927,682
|
|
|
$
|
(4,392
|
)
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
541,385
|
|
|
(2,994
|
)
|
|
—
|
|
|
—
|
|
|
541,385
|
|
|
(2,994
|
)
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
252,340
|
|
|
(2,562
|
)
|
|
20,793
|
|
|
(462
|
)
|
|
273,133
|
|
|
(3,024
|
)
|
||||||
Residential mortgage-backed securities
|
|
535,842
|
|
|
(4,530
|
)
|
|
58,315
|
|
|
(1,871
|
)
|
|
594,157
|
|
|
(6,401
|
)
|
||||||
Municipal securities
|
|
48,495
|
|
|
(437
|
)
|
|
14,739
|
|
|
(356
|
)
|
|
63,234
|
|
|
(793
|
)
|
||||||
Non-agency residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
5,123
|
|
|
(1
|
)
|
|
6,242
|
|
|
(172
|
)
|
|
11,365
|
|
|
(173
|
)
|
||||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
149,358
|
|
|
(683
|
)
|
|
80,276
|
|
|
(864
|
)
|
|
229,634
|
|
|
(1,547
|
)
|
||||||
Non-investment grade
|
|
—
|
|
|
—
|
|
|
9,642
|
|
|
(1,849
|
)
|
|
9,642
|
|
|
(1,849
|
)
|
||||||
Foreign bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
74,101
|
|
|
(506
|
)
|
|
9,713
|
|
|
(288
|
)
|
|
83,814
|
|
|
(794
|
)
|
||||||
Other securities
|
|
13,475
|
|
|
(112
|
)
|
|
8,731
|
|
|
(268
|
)
|
|
22,206
|
|
|
(380
|
)
|
||||||
Total available-for-sale investment securities
|
|
$
|
2,527,519
|
|
|
$
|
(16,075
|
)
|
|
$
|
228,733
|
|
|
$
|
(6,272
|
)
|
|
$
|
2,756,252
|
|
|
$
|
(22,347
|
)
|
|
|
||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balance
|
|
$
|
—
|
|
|
$
|
112,338
|
|
|
$
|
115,511
|
|
Addition of OTTI previously not recognized
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Additional increase to the amount related to the credit
loss for which an OTTI was previously recognized
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reduction for securities sold
|
|
—
|
|
|
(112,338
|
)
|
|
(3,173
|
)
|
|||
Ending balance
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
112,338
|
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
|
||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2014
|
|
||||||
Proceeds from sales
|
|
$
|
1,275,645
|
|
|
$
|
1,669,334
|
|
|
$
|
623,689
|
|
|
Gross realized gains
|
|
$
|
10,487
|
|
|
$
|
40,367
|
|
|
$
|
10,978
|
|
|
Gross realized losses
|
|
$
|
125
|
|
|
$
|
—
|
|
|
$
|
127
|
|
(1)
|
Related tax expense
|
|
$
|
4,357
|
|
|
$
|
16,974
|
|
|
$
|
4,500
|
|
|
|
|
(1)
|
The gross realized losses of
$127 thousand
resulted from available-for-sale investment securities acquired from MetroCorp which were sold immediately after the acquisition closed.
|
|
||||||||
($ in thousands)
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
Due within one year
|
|
$
|
583,676
|
|
|
$
|
565,323
|
|
Due after one year through five years
|
|
704,674
|
|
|
694,776
|
|
||
Due after five years through ten years
|
|
464,472
|
|
|
455,804
|
|
||
Due after ten years
|
|
1,632,619
|
|
|
1,619,892
|
|
||
Total available-for-sale investment securities
|
|
$
|
3,385,441
|
|
|
$
|
3,335,795
|
|
|
|
||||||||
($ in thousands)
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
Due after ten years
|
|
$
|
143,971
|
|
|
$
|
144,593
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
Notional
Amount
|
|
Fair Value
|
|||||||||||||||||
|
|
Derivative
Assets
(1)
|
|
Derivative
Liabilities
(1)
|
|
|
Derivative
Assets
(1)
|
|
Derivative
Liabilities
(1)
|
|||||||||||||||
Derivatives designated as hedging
instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps on certificates of deposit
|
|
$
|
48,365
|
|
|
$
|
—
|
|
|
$
|
5,976
|
|
|
$
|
112,913
|
|
|
$
|
—
|
|
|
$
|
5,213
|
|
Foreign currency forward contracts
|
|
83,026
|
|
|
4,325
|
|
|
—
|
|
|
86,590
|
|
|
2,365
|
|
|
—
|
|
||||||
Total derivatives designated as hedging instruments
|
|
$
|
131,391
|
|
|
$
|
4,325
|
|
|
$
|
5,976
|
|
|
$
|
199,503
|
|
|
$
|
2,365
|
|
|
$
|
5,213
|
|
Derivatives not designated as hedging
instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps and options
|
|
$
|
7,668,482
|
|
|
$
|
67,578
|
|
|
$
|
65,131
|
|
|
$
|
6,494,900
|
|
|
$
|
67,215
|
|
|
$
|
67,325
|
|
Foreign exchange contracts
|
|
767,764
|
|
|
11,874
|
|
|
11,213
|
|
|
652,993
|
|
|
10,254
|
|
|
9,350
|
|
||||||
RPAs
|
|
71,414
|
|
|
3
|
|
|
3
|
|
|
43,033
|
|
|
—
|
|
|
4
|
|
||||||
Total derivatives not designated as hedging instruments
|
|
$
|
8,507,660
|
|
|
$
|
79,455
|
|
|
$
|
76,347
|
|
|
$
|
7,190,926
|
|
|
$
|
77,469
|
|
|
$
|
76,679
|
|
|
(1)
|
Derivative assets and derivative liabilities are included in
Other Assets
and
Accrued expenses and other liabilities, respectively,
on the Consolidated Balance Sheets.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
(Losses) gains recorded in interest expense:
|
|
|
|
|
|
|
||||||
Recognized on interest rate swaps
|
|
$
|
(794
|
)
|
|
$
|
3,452
|
|
|
$
|
6,885
|
|
Recognized on certificates of deposit
|
|
157
|
|
|
(3,190
|
)
|
|
(6,784
|
)
|
|||
Net amount recognized on fair value hedges (ineffective portion)
|
|
$
|
(637
|
)
|
|
$
|
262
|
|
|
$
|
101
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Gains recognized in AOCI on net investment hedges (effective portion)
|
|
$
|
2,908
|
|
|
$
|
1,485
|
|
|
$
|
—
|
|
Gains recognized in foreign exchange income (ineffective portion)
|
|
$
|
1,124
|
|
|
$
|
880
|
|
|
$
|
—
|
|
|
|
||||||||||||||
($ in thousands)
|
|
Location in
Consolidated
Statements of Income
|
|
Year Ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps and options
|
|
Derivative fees and other income
|
|
$
|
2,557
|
|
|
$
|
65
|
|
|
$
|
(1,865
|
)
|
Foreign exchange contracts
|
|
Foreign exchange income
|
|
12,632
|
|
|
4,235
|
|
|
(3,880
|
)
|
|||
Foreign exchange options
|
|
Foreign exchange income
|
|
—
|
|
|
236
|
|
|
103
|
|
|||
Embedded derivative liabilities
|
|
Other operating expense
|
|
—
|
|
|
(136
|
)
|
|
5
|
|
|||
Total net gains (losses)
|
|
|
|
$
|
15,189
|
|
|
$
|
4,400
|
|
|
$
|
(5,637
|
)
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
As of December 31, 2016
|
||||||||||||||||||||||||||||||
|
|
Total
|
|
Contracts Not Subject to Master Netting Arrangements
|
|
Contracts Subject to Master Netting Arrangements
|
||||||||||||||||||||||||||
|
|
Gross Amounts of Recognized
|
|
Gross Amounts of Recognized
|
|
Gross Amounts of Recognized
|
|
Gross Amounts
Offset on the Consolidated Balance Sheets |
|
Net Amounts
Presented on the Consolidated Balance Sheets |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheets |
|
Net
Amount |
||||||||||||||||||
|
|
|
|
|
|
Derivative
Amounts |
|
Collateral
Received |
|
|||||||||||||||||||||||
Derivative Assets
|
|
$
|
83,780
|
|
|
$
|
51,218
|
|
|
$
|
32,562
|
|
|
$
|
—
|
|
|
$
|
32,562
|
|
|
$
|
(20,991
|
)
|
(1)
|
$
|
(10,687
|
)
|
(2)
|
$
|
884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Gross Amounts of Recognized
|
|
Gross Amounts of Recognized
|
|
Gross Amounts of Recognized
|
|
Gross Amounts
Offset on the Consolidated Balance Sheets |
|
Net Amounts
Presented on the Consolidated Balance Sheets |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheets |
|
Net
Amount |
||||||||||||||||||
|
|
|
|
|
|
Derivative
Amounts |
|
Collateral
Posted |
|
|||||||||||||||||||||||
Derivative Liabilities
|
|
$
|
82,323
|
|
|
$
|
24,097
|
|
|
$
|
58,226
|
|
|
$
|
—
|
|
|
$
|
58,226
|
|
|
$
|
(20,991
|
)
|
(1)
|
$
|
(36,349
|
)
|
(3)
|
$
|
886
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
As of December 31, 2015
|
||||||||||||||||||||||||||||||
|
|
Total
|
|
Contracts Not Subject to Master Netting Arrangements
|
|
Contracts Subject to Master Netting Arrangements
|
||||||||||||||||||||||||||
|
|
Gross Amounts of Recognized
|
|
Gross Amounts of Recognized
|
|
Gross Amounts of Recognized
|
|
Gross Amounts
Offset on the Consolidated Balance Sheets |
|
Net Amounts
Presented on the Consolidated Balance Sheets |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheets |
|
Net
Amount |
||||||||||||||||||
|
|
|
|
|
|
Derivative
Amounts |
|
Collateral
Received |
|
|||||||||||||||||||||||
Derivative Assets
|
|
$
|
79,834
|
|
|
$
|
71,101
|
|
|
$
|
8,733
|
|
|
$
|
—
|
|
|
$
|
8,733
|
|
|
$
|
(5,293
|
)
|
(1)
|
$
|
(3,068
|
)
|
(2)
|
$
|
372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Gross Amounts of Recognized
|
|
Gross Amounts of Recognized
|
|
Gross Amounts of Recognized
|
|
Gross Amounts
Offset on the Consolidated Balance Sheets |
|
Net Amounts
Presented on the Consolidated Balance Sheets |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheets |
|
Net
Amount |
||||||||||||||||||
|
|
|
|
|
|
Derivative
Amounts |
|
Collateral
Received |
|
|||||||||||||||||||||||
Derivative Liabilities
|
|
$
|
81,892
|
|
|
$
|
3,113
|
|
|
$
|
78,779
|
|
|
$
|
—
|
|
|
$
|
78,779
|
|
|
$
|
(5,293
|
)
|
(1)
|
$
|
(73,109
|
)
|
(3)
|
$
|
377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable master netting arrangements if the Company has elected to net.
|
(2)
|
Represents
$8.1 million
and
$3.1 million
of cash collateral received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements as of
December 31, 2016
and
2015
, respectively.
|
(3)
|
Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements. Includes approximately
$170 thousand
and
$21.1 million
of cash collateral posted as of
December 31, 2016
and
2015
, respectively.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Non-PCI
Loans (1) |
|
PCI
Loans
(2)
|
|
Total
(1)(2)
|
|
Non-PCI
Loans
(1)
|
|
PCI
Loans (2) |
|
Total
(1)(2)
|
|||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income producing
|
|
$
|
7,667,661
|
|
|
$
|
348,448
|
|
|
$
|
8,016,109
|
|
|
$
|
6,930,537
|
|
|
$
|
541,275
|
|
|
$
|
7,471,812
|
|
Construction
|
|
551,560
|
|
|
—
|
|
|
551,560
|
|
|
432,728
|
|
|
1,895
|
|
|
434,623
|
|
||||||
Land
|
|
121,276
|
|
|
1,918
|
|
|
123,194
|
|
|
187,442
|
|
|
6,195
|
|
|
193,637
|
|
||||||
Total CRE
|
|
8,340,497
|
|
|
350,366
|
|
|
8,690,863
|
|
|
7,550,707
|
|
|
549,365
|
|
|
8,100,072
|
|
||||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial business
|
|
8,921,246
|
|
|
38,387
|
|
|
8,959,633
|
|
|
8,143,858
|
|
|
57,906
|
|
|
8,201,764
|
|
||||||
Trade finance
|
|
680,930
|
|
|
—
|
|
|
680,930
|
|
|
788,461
|
|
|
1,310
|
|
|
789,771
|
|
||||||
Total C&I
|
|
9,602,176
|
|
|
38,387
|
|
|
9,640,563
|
|
|
8,932,319
|
|
|
59,216
|
|
|
8,991,535
|
|
||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family
|
|
3,370,669
|
|
|
139,110
|
|
|
3,509,779
|
|
|
2,880,336
|
|
|
189,633
|
|
|
3,069,969
|
|
||||||
Multifamily
|
|
1,490,285
|
|
|
95,654
|
|
|
1,585,939
|
|
|
1,376,090
|
|
|
148,277
|
|
|
1,524,367
|
|
||||||
Total residential
|
|
4,860,954
|
|
|
234,764
|
|
|
5,095,718
|
|
|
4,256,426
|
|
|
337,910
|
|
|
4,594,336
|
|
||||||
Consumer
|
|
2,057,067
|
|
|
18,928
|
|
|
2,075,995
|
|
|
1,933,542
|
|
|
24,263
|
|
|
1,957,805
|
|
||||||
Total loans
|
|
$
|
24,860,694
|
|
|
$
|
642,445
|
|
|
$
|
25,503,139
|
|
|
$
|
22,672,994
|
|
|
$
|
970,754
|
|
|
$
|
23,643,748
|
|
Allowance for loan losses
|
|
(260,402
|
)
|
|
(118
|
)
|
|
(260,520
|
)
|
|
(264,600
|
)
|
|
(359
|
)
|
|
(264,959
|
)
|
||||||
Loans, net
|
|
$
|
24,600,292
|
|
|
$
|
642,327
|
|
|
$
|
25,242,619
|
|
|
$
|
22,408,394
|
|
|
$
|
970,395
|
|
|
$
|
23,378,789
|
|
|
(1)
|
Includes
$1.2 million
and
$(16.0) million
as of
December 31, 2016
and
2015
, respectively, of unearned fees, net deferred loan fees and unamortized premiums and unaccreted discounts.
|
(2)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total Non-
PCI Loans
|
|||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income producing
|
|
$
|
7,476,804
|
|
|
$
|
29,005
|
|
|
$
|
161,852
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,667,661
|
|
Construction
|
|
551,560
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
551,560
|
|
||||||
Land
|
|
107,976
|
|
|
—
|
|
|
13,290
|
|
|
10
|
|
|
—
|
|
|
121,276
|
|
||||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial business
|
|
8,559,674
|
|
|
155,276
|
|
|
201,139
|
|
|
5,157
|
|
|
—
|
|
|
8,921,246
|
|
||||||
Trade finance
|
|
635,027
|
|
|
9,435
|
|
|
36,460
|
|
|
—
|
|
|
8
|
|
|
680,930
|
|
||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family
|
|
3,341,015
|
|
|
10,179
|
|
|
19,475
|
|
|
—
|
|
|
—
|
|
|
3,370,669
|
|
||||||
Multifamily
|
|
1,462,522
|
|
|
2,268
|
|
|
25,495
|
|
|
—
|
|
|
—
|
|
|
1,490,285
|
|
||||||
Consumer
|
|
2,043,405
|
|
|
6,764
|
|
|
6,898
|
|
|
—
|
|
|
—
|
|
|
2,057,067
|
|
||||||
Total
|
|
$
|
24,177,983
|
|
|
$
|
212,927
|
|
|
$
|
464,609
|
|
|
$
|
5,167
|
|
|
$
|
8
|
|
|
$
|
24,860,694
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total Non-
PCI Loans |
|||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income producing
|
|
$
|
6,665,994
|
|
|
$
|
59,290
|
|
|
$
|
205,238
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
6,930,537
|
|
Construction
|
|
431,100
|
|
|
1,158
|
|
|
470
|
|
|
—
|
|
|
—
|
|
|
432,728
|
|
||||||
Land
|
|
172,093
|
|
|
—
|
|
|
15,349
|
|
|
—
|
|
|
—
|
|
|
187,442
|
|
||||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial business
|
|
7,780,686
|
|
|
201,016
|
|
|
137,740
|
|
|
24,416
|
|
|
—
|
|
|
8,143,858
|
|
||||||
Trade finance
|
|
750,770
|
|
|
13,836
|
|
|
23,847
|
|
|
—
|
|
|
8
|
|
|
788,461
|
|
||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family
|
|
2,844,758
|
|
|
8,092
|
|
|
27,486
|
|
|
—
|
|
|
—
|
|
|
2,880,336
|
|
||||||
Multifamily
|
|
1,318,896
|
|
|
2,928
|
|
|
54,266
|
|
|
—
|
|
|
—
|
|
|
1,376,090
|
|
||||||
Consumer
|
|
1,927,755
|
|
|
1,246
|
|
|
4,541
|
|
|
—
|
|
|
—
|
|
|
1,933,542
|
|
||||||
Total
|
|
$
|
21,892,052
|
|
|
$
|
287,566
|
|
|
$
|
468,937
|
|
|
$
|
24,416
|
|
|
$
|
23
|
|
|
$
|
22,672,994
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total PCI
Loans
|
|||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income producing
|
|
$
|
293,529
|
|
|
$
|
3,239
|
|
|
$
|
51,680
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
348,448
|
|
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Land
|
|
1,562
|
|
|
—
|
|
|
356
|
|
|
—
|
|
|
—
|
|
|
1,918
|
|
||||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial business
|
|
33,885
|
|
|
772
|
|
|
3,730
|
|
|
—
|
|
|
—
|
|
|
38,387
|
|
||||||
Trade finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family
|
|
136,245
|
|
|
1,239
|
|
|
1,626
|
|
|
—
|
|
|
—
|
|
|
139,110
|
|
||||||
Multifamily
|
|
86,190
|
|
|
—
|
|
|
9,464
|
|
|
—
|
|
|
—
|
|
|
95,654
|
|
||||||
Consumer
|
|
17,433
|
|
|
316
|
|
|
1,179
|
|
|
—
|
|
|
—
|
|
|
18,928
|
|
||||||
Total
(1)
|
|
$
|
568,844
|
|
|
$
|
5,566
|
|
|
$
|
68,035
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
642,445
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total PCI
Loans |
|||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income producing
|
|
$
|
440,100
|
|
|
$
|
4,987
|
|
|
$
|
96,188
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
541,275
|
|
Construction
|
|
—
|
|
|
—
|
|
|
1,895
|
|
|
—
|
|
|
—
|
|
|
1,895
|
|
||||||
Land
|
|
4,285
|
|
|
—
|
|
|
1,910
|
|
|
—
|
|
|
—
|
|
|
6,195
|
|
||||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial business
|
|
52,212
|
|
|
819
|
|
|
4,875
|
|
|
—
|
|
|
—
|
|
|
57,906
|
|
||||||
Trade finance
|
|
1,310
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,310
|
|
||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family
|
|
184,092
|
|
|
1,293
|
|
|
4,248
|
|
|
—
|
|
|
—
|
|
|
189,633
|
|
||||||
Multifamily
|
|
130,770
|
|
|
—
|
|
|
17,507
|
|
|
—
|
|
|
—
|
|
|
148,277
|
|
||||||
Consumer
|
|
23,121
|
|
|
452
|
|
|
690
|
|
|
—
|
|
|
—
|
|
|
24,263
|
|
||||||
Total
(1)
|
|
$
|
835,890
|
|
|
$
|
7,551
|
|
|
$
|
127,313
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
970,754
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||
|
Accruing
Loans
30-59 Days
Past Due
|
|
Accruing
Loans
60-89 Days
Past Due
|
|
Total
Accruing
Past Due
Loans
|
|
Nonaccrual
Loans Less
Than 90
Days
Past Due
|
|
Nonaccrual
Loans
90 or More
Days
Past Due
|
|
Total
Nonaccrual
Loans
|
|
Current
Accruing
Loans
|
|
Total Non-
PCI Loans
|
|||||||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Income producing
|
|
$
|
6,233
|
|
|
$
|
14,080
|
|
|
$
|
20,313
|
|
|
$
|
14,872
|
|
|
$
|
12,035
|
|
|
$
|
26,907
|
|
|
$
|
7,620,441
|
|
|
$
|
7,667,661
|
|
Construction
|
|
4,994
|
|
|
—
|
|
|
4,994
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
546,566
|
|
|
551,560
|
|
||||||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
433
|
|
|
4,893
|
|
|
5,326
|
|
|
115,950
|
|
|
121,276
|
|
||||||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial business
|
|
45,052
|
|
|
2,279
|
|
|
47,331
|
|
|
60,511
|
|
|
20,737
|
|
|
81,248
|
|
|
8,792,667
|
|
|
8,921,246
|
|
||||||||
Trade finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
680,922
|
|
|
680,930
|
|
||||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Single-family
|
|
9,595
|
|
|
8,076
|
|
|
17,671
|
|
|
—
|
|
|
4,214
|
|
|
4,214
|
|
|
3,348,784
|
|
|
3,370,669
|
|
||||||||
Multifamily
|
|
3,951
|
|
|
374
|
|
|
4,325
|
|
|
2,790
|
|
|
194
|
|
|
2,984
|
|
|
1,482,976
|
|
|
1,490,285
|
|
||||||||
Consumer
|
|
3,327
|
|
|
3,228
|
|
|
6,555
|
|
|
165
|
|
|
1,965
|
|
|
2,130
|
|
|
2,048,382
|
|
|
2,057,067
|
|
||||||||
Total
|
|
$
|
73,152
|
|
|
$
|
28,037
|
|
|
$
|
101,189
|
|
|
$
|
78,779
|
|
|
$
|
44,038
|
|
|
$
|
122,817
|
|
|
$
|
24,636,688
|
|
|
$
|
24,860,694
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||
|
Accruing
Loans
30-59 Days
Past Due
|
|
Accruing
Loans
60-89 Days
Past Due
|
|
Total
Accruing
Past Due
Loans
|
|
Nonaccrual
Loans Less
Than 90
Days
Past Due
|
|
Nonaccrual
Loans
90 or More
Days
Past Due
|
|
Total
Nonaccrual
Loans
|
|
Current
Accruing
Loans
|
|
Total Non-
PCI Loans |
|||||||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Income producing
|
|
$
|
3,481
|
|
|
$
|
25,254
|
|
|
$
|
28,735
|
|
|
$
|
11,393
|
|
|
$
|
17,952
|
|
|
$
|
29,345
|
|
|
$
|
6,872,457
|
|
|
$
|
6,930,537
|
|
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
|
432,714
|
|
|
432,728
|
|
||||||||
Land
|
|
1,124
|
|
|
—
|
|
|
1,124
|
|
|
280
|
|
|
406
|
|
|
686
|
|
|
185,632
|
|
|
187,442
|
|
||||||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial business
|
|
2,029
|
|
|
1,203
|
|
|
3,232
|
|
|
50,747
|
|
|
14,128
|
|
|
64,875
|
|
|
8,075,751
|
|
|
8,143,858
|
|
||||||||
Trade finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
788,453
|
|
|
788,461
|
|
||||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family
|
|
7,649
|
|
|
2,919
|
|
|
10,568
|
|
|
104
|
|
|
8,655
|
|
|
8,759
|
|
|
2,861,009
|
|
|
2,880,336
|
|
||||||||
Multifamily
|
|
6,339
|
|
|
983
|
|
|
7,322
|
|
|
6,473
|
|
|
9,795
|
|
|
16,268
|
|
|
1,352,500
|
|
|
1,376,090
|
|
||||||||
Consumer
|
|
2,174
|
|
|
268
|
|
|
2,442
|
|
|
232
|
|
|
1,511
|
|
|
1,743
|
|
|
1,929,357
|
|
|
1,933,542
|
|
||||||||
Total
|
|
$
|
22,796
|
|
|
$
|
30,627
|
|
|
$
|
53,423
|
|
|
$
|
69,251
|
|
|
$
|
52,447
|
|
|
$
|
121,698
|
|
|
$
|
22,497,873
|
|
|
$
|
22,672,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Year Ended December 31, 2016
|
|||||||||||||
|
Number
of Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||||
CRE:
|
|
|
|
|
|
|
|
|
|||||||
Income producing
|
|
6
|
|
|
$
|
19,275
|
|
|
$
|
18,824
|
|
|
$
|
701
|
|
Land
|
|
1
|
|
|
$
|
5,522
|
|
|
$
|
4,883
|
|
|
$
|
—
|
|
C&I:
|
|
|
|
|
|
|
|
|
|||||||
Commercial business
|
|
17
|
|
|
$
|
62,024
|
|
|
$
|
35,278
|
|
|
$
|
20,549
|
|
Trade finance
|
|
1
|
|
|
$
|
3,967
|
|
|
$
|
5,127
|
|
|
$
|
25
|
|
Residential:
|
|
|
|
|
|
|
|
|
|||||||
Single-family
|
|
3
|
|
|
$
|
1,291
|
|
|
$
|
1,268
|
|
|
$
|
—
|
|
Consumer
|
|
3
|
|
|
$
|
491
|
|
|
$
|
382
|
|
|
$
|
1
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Year Ended December 31, 2015
|
|||||||||||||
|
Number
of Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||||
CRE:
|
|
|
|
|
|
|
|
|
|||||||
Income producing
|
|
3
|
|
|
$
|
1,802
|
|
|
$
|
1,727
|
|
|
$
|
—
|
|
Land
|
|
2
|
|
|
$
|
2,227
|
|
|
$
|
83
|
|
|
$
|
102
|
|
C&I:
|
|
|
|
|
|
|
|
|
|||||||
Commercial business
|
|
18
|
|
|
$
|
42,816
|
|
|
$
|
34,165
|
|
|
$
|
6,726
|
|
Residential:
|
|
|
|
|
|
|
|
|
|||||||
Single-family
|
|
1
|
|
|
$
|
281
|
|
|
$
|
279
|
|
|
$
|
2
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Year Ended December 31, 2014
|
|||||||||||||
|
Number
of Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||||
CRE:
|
|
|
|
|
|
|
|
|
|||||||
Income producing
|
|
6
|
|
|
$
|
8,829
|
|
|
$
|
8,624
|
|
|
$
|
43
|
|
C&I:
|
|
|
|
|
|
|
|
|
|||||||
Commercial business
|
|
13
|
|
|
$
|
4,379
|
|
|
$
|
3,089
|
|
|
$
|
2,205
|
|
Trade finance
|
|
1
|
|
|
$
|
190
|
|
|
$
|
73
|
|
|
$
|
14
|
|
Residential:
|
|
|
|
|
|
|
|
|
|||||||
Single-family
|
|
9
|
|
|
$
|
11,454
|
|
|
$
|
8,269
|
|
|
$
|
—
|
|
Multifamily
|
|
6
|
|
|
$
|
5,471
|
|
|
$
|
3,705
|
|
|
$
|
7
|
|
Consumer
|
|
1
|
|
|
$
|
509
|
|
|
$
|
504
|
|
|
$
|
—
|
|
|
(1)
|
Includes subsequent payments after modification and reflects the balance as of
December 31, 2016
,
2015
and
2014
.
|
(2)
|
The financial impact includes charge-offs and specific reserves recorded at the modification date.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2016
|
||||||||||||||||||||||
|
Principal
(1)
|
|
Principal
and
Interest
(2)
|
|
Interest
Rate
Reduction
|
|
Interest
Deferments |
|
Other
|
|
Total
|
|||||||||||||
CRE
|
|
$
|
22,633
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,074
|
|
|
$
|
23,707
|
|
C&I
|
|
34,499
|
|
|
—
|
|
|
5,876
|
|
|
30
|
|
|
—
|
|
|
40,405
|
|
||||||
Residential
|
|
264
|
|
|
—
|
|
|
797
|
|
|
207
|
|
|
—
|
|
|
1,268
|
|
||||||
Consumer
|
|
333
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
382
|
|
||||||
Total
|
|
$
|
57,729
|
|
|
$
|
—
|
|
|
$
|
6,722
|
|
|
$
|
237
|
|
|
$
|
1,074
|
|
|
$
|
65,762
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2015
|
||||||||||||||||||||||
|
Principal
(1)
|
|
Principal
and
Interest
(2)
|
|
Interest
Rate
Reduction
|
|
Interest
Deferments
|
|
Other
|
|
Total
|
|||||||||||||
CRE
|
|
$
|
548
|
|
|
$
|
787
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
475
|
|
|
$
|
1,810
|
|
C&I
|
|
16,364
|
|
|
17,801
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,165
|
|
||||||
Residential
|
|
279
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
279
|
|
||||||
Total
|
|
$
|
17,191
|
|
|
$
|
18,588
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
475
|
|
|
$
|
36,254
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2014
|
||||||||||||||||||||||
|
Principal
(1)
|
|
Principal
and
Interest
(2)
|
|
Interest
Rate
Reduction
|
|
Interest
Deferments |
|
Other
|
|
Total
|
|||||||||||||
CRE
|
|
$
|
691
|
|
|
$
|
5,100
|
|
|
$
|
2,165
|
|
|
$
|
—
|
|
|
$
|
668
|
|
|
$
|
8,624
|
|
C&I
|
|
2,677
|
|
|
73
|
|
|
94
|
|
|
—
|
|
|
318
|
|
|
3,162
|
|
||||||
Residential
|
|
9,756
|
|
|
1,471
|
|
|
—
|
|
|
—
|
|
|
747
|
|
|
11,974
|
|
||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
504
|
|
|
504
|
|
||||||
Total
|
|
$
|
13,124
|
|
|
$
|
6,644
|
|
|
$
|
2,259
|
|
|
$
|
—
|
|
|
$
|
2,237
|
|
|
$
|
24,264
|
|
|
(1)
|
Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.
|
(2)
|
Includes principal and interest deferments or reductions.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs that Subsequently Defaulted
During the Year Ended December 31, |
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income producing
|
|
2
|
|
|
$
|
3,150
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Land
|
|
1
|
|
|
$
|
4,883
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial business
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
957
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Single-family
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
279
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
With No
Allowance
|
|
Recorded
Investment
With
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income producing
|
|
$
|
50,718
|
|
|
$
|
32,507
|
|
|
$
|
14,001
|
|
|
$
|
46,508
|
|
|
$
|
1,263
|
|
Land
|
|
6,457
|
|
|
5,427
|
|
|
443
|
|
|
5,870
|
|
|
63
|
|
|||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial business
|
|
162,239
|
|
|
78,316
|
|
|
42,137
|
|
|
120,453
|
|
|
10,443
|
|
|||||
Trade finance
|
|
5,227
|
|
|
—
|
|
|
5,166
|
|
|
5,166
|
|
|
34
|
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family
|
|
15,435
|
|
|
—
|
|
|
14,335
|
|
|
14,335
|
|
|
687
|
|
|||||
Multifamily
|
|
11,181
|
|
|
5,684
|
|
|
4,357
|
|
|
10,041
|
|
|
180
|
|
|||||
Consumer
|
|
4,016
|
|
|
—
|
|
|
3,682
|
|
|
3,682
|
|
|
31
|
|
|||||
Total
|
|
$
|
255,273
|
|
|
$
|
121,934
|
|
|
$
|
84,121
|
|
|
$
|
206,055
|
|
|
$
|
12,701
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2015
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
With No
Allowance
|
|
Recorded
Investment
With
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income producing
|
|
$
|
47,043
|
|
|
$
|
24,416
|
|
|
$
|
15,800
|
|
|
$
|
40,216
|
|
|
$
|
3,197
|
|
Construction
|
|
66
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
1
|
|
|||||
Land
|
|
1,537
|
|
|
660
|
|
|
685
|
|
|
1,345
|
|
|
118
|
|
|||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial business
|
|
81,720
|
|
|
31,071
|
|
|
40,328
|
|
|
71,399
|
|
|
16,005
|
|
|||||
Trade finance
|
|
10,675
|
|
|
8
|
|
|
10,681
|
|
|
10,689
|
|
|
95
|
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family
|
|
16,486
|
|
|
4,406
|
|
|
10,636
|
|
|
15,042
|
|
|
584
|
|
|||||
Multifamily
|
|
25,634
|
|
|
16,946
|
|
|
6,805
|
|
|
23,751
|
|
|
339
|
|
|||||
Consumer
|
|
1,240
|
|
|
—
|
|
|
1,242
|
|
|
1,242
|
|
|
60
|
|
|||||
Total
|
|
$
|
184,401
|
|
|
$
|
77,507
|
|
|
$
|
86,191
|
|
|
$
|
163,698
|
|
|
$
|
20,399
|
|
|
|
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||
|
Average
Recorded
Investment
|
|
Recognized
Interest
Income
(1)
|
|
Average
Recorded Investment |
|
Recognized
Interest Income (1) |
|
Average
Recorded Investment |
|
Recognized
Interest
Income
(1)
|
|||||||||||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income producing
|
|
$
|
47,064
|
|
|
$
|
1,253
|
|
|
$
|
43,598
|
|
|
$
|
536
|
|
|
$
|
54,509
|
|
|
$
|
1,249
|
|
Construction
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
6,884
|
|
|
—
|
|
||||||
Land
|
|
6,388
|
|
|
34
|
|
|
2,726
|
|
|
39
|
|
|
8,627
|
|
|
298
|
|
||||||
C&I:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial business
|
|
144,807
|
|
|
2,464
|
|
|
73,886
|
|
|
315
|
|
|
36,504
|
|
|
833
|
|
||||||
Trade finance
|
|
4,179
|
|
|
148
|
|
|
11,404
|
|
|
223
|
|
|
336
|
|
|
15
|
|
||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family
|
|
14,323
|
|
|
447
|
|
|
15,365
|
|
|
242
|
|
|
16,402
|
|
|
342
|
|
||||||
Multifamily
|
|
15,763
|
|
|
302
|
|
|
24,024
|
|
|
312
|
|
|
37,104
|
|
|
830
|
|
||||||
Consumer
|
|
3,703
|
|
|
63
|
|
|
1,252
|
|
|
47
|
|
|
1,258
|
|
|
47
|
|
||||||
Total non-PCI impaired loans
|
|
$
|
236,227
|
|
|
$
|
4,711
|
|
|
$
|
172,269
|
|
|
$
|
1,714
|
|
|
$
|
161,624
|
|
|
$
|
3,614
|
|
|
|
|
|
|
(1)
|
Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal and not as interest income.
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||||||
|
Non-PCI Loans
|
|
PCI
Loans
|
|
Total
|
|||||||||||||||||||||||
|
CRE
|
|
C&I
|
|
Residential
|
|
Consumer
|
|
Total
|
|
|
|||||||||||||||||
Beginning balance
|
|
$
|
81,191
|
|
|
$
|
134,597
|
|
|
$
|
39,292
|
|
|
$
|
9,520
|
|
|
$
|
264,600
|
|
|
$
|
359
|
|
|
$
|
264,959
|
|
(Reversal of) provision for loan losses
|
|
(9,497
|
)
|
|
46,855
|
|
|
(3,670
|
)
|
|
(1,729
|
)
|
|
31,959
|
|
|
(241
|
)
|
|
31,718
|
|
|||||||
Charge-offs
|
|
(581
|
)
|
|
(47,739
|
)
|
|
(166
|
)
|
|
(22
|
)
|
|
(48,508
|
)
|
|
—
|
|
|
(48,508
|
)
|
|||||||
Recoveries
|
|
1,691
|
|
|
8,453
|
|
|
1,877
|
|
|
330
|
|
|
12,351
|
|
|
—
|
|
|
12,351
|
|
|||||||
Net recoveries (charge-offs)
|
|
1,110
|
|
|
(39,286
|
)
|
|
1,711
|
|
|
308
|
|
|
(36,157
|
)
|
|
—
|
|
|
(36,157
|
)
|
|||||||
Ending balance
|
|
$
|
72,804
|
|
|
$
|
142,166
|
|
|
$
|
37,333
|
|
|
$
|
8,099
|
|
|
$
|
260,402
|
|
|
$
|
118
|
|
|
$
|
260,520
|
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||||||
|
Non-PCI Loans
|
|
PCI
Loans
|
|
Total
|
|||||||||||||||||||||||
|
CRE
|
|
C&I
|
|
Residential
|
|
Consumer
|
|
Total
|
|
|
|||||||||||||||||
Beginning balance
|
|
$
|
72,263
|
|
|
$
|
134,598
|
|
|
$
|
43,856
|
|
|
$
|
10,248
|
|
|
$
|
260,965
|
|
|
$
|
714
|
|
|
$
|
261,679
|
|
Provision for (reversal of) loan losses
|
|
3,338
|
|
|
11,640
|
|
|
(7,499
|
)
|
|
(555
|
)
|
|
6,924
|
|
|
(355
|
)
|
|
6,569
|
|
|||||||
Charge-offs
|
|
(1,545
|
)
|
|
(20,423
|
)
|
|
(1,686
|
)
|
|
(600
|
)
|
|
(24,254
|
)
|
|
—
|
|
|
(24,254
|
)
|
|||||||
Recoveries
|
|
7,135
|
|
|
8,782
|
|
|
4,621
|
|
|
427
|
|
|
20,965
|
|
|
—
|
|
|
20,965
|
|
|||||||
Net recoveries (charge-offs)
|
|
5,590
|
|
|
(11,641
|
)
|
|
2,935
|
|
|
(173
|
)
|
|
(3,289
|
)
|
|
—
|
|
|
(3,289
|
)
|
|||||||
Ending balance
|
|
$
|
81,191
|
|
|
$
|
134,597
|
|
|
$
|
39,292
|
|
|
$
|
9,520
|
|
|
$
|
264,600
|
|
|
$
|
359
|
|
|
$
|
264,959
|
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2014
|
||||||||||||||||||||||||||
|
Non-PCI Loans
|
|
PCI
Loans
|
|
Total
|
|||||||||||||||||||||||
|
CRE
|
|
C&I
|
|
Residential
|
|
Consumer
|
|
Total
|
|
|
|||||||||||||||||
Beginning balance
|
|
$
|
70,154
|
|
|
$
|
115,184
|
|
|
$
|
50,716
|
|
|
$
|
11,352
|
|
|
$
|
247,406
|
|
|
$
|
2,269
|
|
|
$
|
249,675
|
|
Provision for (reversal of) loan losses
|
|
3,264
|
|
|
49,200
|
|
|
(8,167
|
)
|
|
4,318
|
|
|
48,615
|
|
|
(1,032
|
)
|
|
47,583
|
|
|||||||
Charge-offs
|
|
(3,137
|
)
|
|
(39,984
|
)
|
|
(1,103
|
)
|
|
(5,871
|
)
|
|
(50,095
|
)
|
|
(523
|
)
|
|
(50,618
|
)
|
|||||||
Recoveries
|
|
1,982
|
|
|
10,198
|
|
|
2,410
|
|
|
449
|
|
|
15,039
|
|
|
—
|
|
|
15,039
|
|
|||||||
Net (charge-offs) recoveries
|
|
(1,155
|
)
|
|
(29,786
|
)
|
|
1,307
|
|
|
(5,422
|
)
|
|
(35,056
|
)
|
|
(523
|
)
|
|
(35,579
|
)
|
|||||||
Ending balance
|
|
$
|
72,263
|
|
|
$
|
134,598
|
|
|
$
|
43,856
|
|
|
$
|
10,248
|
|
|
$
|
260,965
|
|
|
$
|
714
|
|
|
$
|
261,679
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Beginning balance
|
|
$
|
20,360
|
|
|
$
|
12,712
|
|
|
$
|
11,282
|
|
(Reversal of) provision for unfunded credit reserves
|
|
(4,239
|
)
|
|
7,648
|
|
|
1,575
|
|
|||
Charge-offs
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|||
Ending balance
|
|
$
|
16,121
|
|
|
$
|
20,360
|
|
|
$
|
12,712
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2016
|
||||||||||||||||||
|
CRE
|
|
C&I
|
|
Residential
|
|
Consumer
|
|
Total
|
|||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
|
$
|
1,326
|
|
|
$
|
10,477
|
|
|
$
|
867
|
|
|
$
|
31
|
|
|
$
|
12,701
|
|
Collectively evaluated for impairment
|
|
71,478
|
|
|
131,689
|
|
|
36,466
|
|
|
8,068
|
|
|
247,701
|
|
|||||
Acquired with deteriorated credit quality
|
|
112
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
118
|
|
|||||
Ending balance
|
|
$
|
72,916
|
|
|
$
|
142,167
|
|
|
$
|
37,338
|
|
|
$
|
8,099
|
|
|
$
|
260,520
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
|
$
|
52,378
|
|
|
$
|
125,619
|
|
|
$
|
24,376
|
|
|
$
|
3,682
|
|
|
$
|
206,055
|
|
Collectively evaluated for impairment
|
|
8,288,119
|
|
|
9,476,557
|
|
|
4,836,578
|
|
|
2,053,385
|
|
|
24,654,639
|
|
|||||
Acquired with deteriorated credit quality
(1)
|
|
350,366
|
|
|
38,387
|
|
|
234,764
|
|
|
18,928
|
|
|
642,445
|
|
|||||
Ending balance
(1)
|
|
$
|
8,690,863
|
|
|
$
|
9,640,563
|
|
|
$
|
5,095,718
|
|
|
$
|
2,075,995
|
|
|
$
|
25,503,139
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2015
|
||||||||||||||||||
|
CRE
|
|
C&I
|
|
Residential
|
|
Consumer
|
|
Total
|
|||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
|
$
|
3,316
|
|
|
$
|
16,100
|
|
|
$
|
923
|
|
|
$
|
60
|
|
|
$
|
20,399
|
|
Collectively evaluated for impairment
|
|
77,875
|
|
|
118,497
|
|
|
38,369
|
|
|
9,460
|
|
|
244,201
|
|
|||||
Acquired with deteriorated credit quality
|
|
347
|
|
|
9
|
|
|
3
|
|
|
—
|
|
|
359
|
|
|||||
Ending balance
|
|
$
|
81,538
|
|
|
$
|
134,606
|
|
|
$
|
39,295
|
|
|
$
|
9,520
|
|
|
$
|
264,959
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
|
$
|
41,575
|
|
|
$
|
82,088
|
|
|
$
|
38,793
|
|
|
$
|
1,242
|
|
|
$
|
163,698
|
|
Collectively evaluated for impairment
|
|
7,509,132
|
|
|
8,850,231
|
|
|
4,217,633
|
|
|
1,932,300
|
|
|
22,509,296
|
|
|||||
Acquired with deteriorated credit quality
(1)
|
|
549,365
|
|
|
59,216
|
|
|
337,910
|
|
|
24,263
|
|
|
970,754
|
|
|||||
Ending balance
(1)
|
|
$
|
8,100,072
|
|
|
$
|
8,991,535
|
|
|
$
|
4,594,336
|
|
|
$
|
1,957,805
|
|
|
$
|
23,643,748
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Beginning balance
|
|
$
|
214,907
|
|
|
$
|
311,688
|
|
|
$
|
461,545
|
|
Addition
|
|
—
|
|
|
—
|
|
|
6,745
|
|
|||
Accretion
|
|
(68,708
|
)
|
|
(107,442
|
)
|
|
(219,169
|
)
|
|||
Changes in expected cash flows
|
|
(9,952
|
)
|
|
10,661
|
|
|
62,567
|
|
|||
Ending balance
|
|
$
|
136,247
|
|
|
$
|
214,907
|
|
|
$
|
311,688
|
|
|
NOTE 8
|
—
|
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
|||||
Investments in qualified affordable housing partnerships, net
|
|
$
|
183,917
|
|
|
$
|
193,978
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
57,243
|
|
|
$
|
61,525
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Tax credits and other tax benefits recognized
|
|
$
|
37,252
|
|
|
$
|
38,271
|
|
|
$
|
32,613
|
|
Amortization expense included in income tax expense
|
|
$
|
28,206
|
|
|
$
|
26,814
|
|
|
$
|
21,428
|
|
|
|
|
|
||
Estimates for the Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2017
|
|
$
|
96,390
|
|
2018
|
|
34,849
|
|
|
2019
|
|
17,254
|
|
|
2020
|
|
12,502
|
|
|
2021
|
|
8,172
|
|
|
Thereafter
|
|
5,089
|
|
|
Total
|
|
$
|
174,256
|
|
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
|||||
Gross balance
|
|
$
|
108,814
|
|
|
$
|
108,814
|
|
Accumulated amortization
|
|
80,825
|
|
|
72,739
|
|
||
Net carrying balance
|
|
$
|
27,989
|
|
|
$
|
36,075
|
|
|
|
||||
Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2017
|
|
$
|
6,935
|
|
2018
|
|
5,883
|
|
|
2019
|
|
4,864
|
|
|
2020
|
|
3,846
|
|
|
2021
|
|
2,833
|
|
|
Thereafter
|
|
3,628
|
|
|
Total
|
|
$
|
27,989
|
|
|
|
||||||||
|
|
December 31,
|
||||||
($ in thousands)
|
|
2016
|
|
2015
|
||||
Core deposits:
|
|
|
|
|
||||
Noninterest-bearing demand
|
|
$
|
10,183,946
|
|
|
$
|
8,656,805
|
|
Interest-bearing checking
|
|
3,674,417
|
|
|
3,336,293
|
|
||
Money market
|
|
8,174,854
|
|
|
6,932,962
|
|
||
Savings
|
|
2,242,497
|
|
|
1,933,026
|
|
||
Total core deposits
|
|
24,275,714
|
|
|
20,859,086
|
|
||
Time deposits:
|
|
|
|
|
|
|
||
Less than $100,000
|
|
1,300,091
|
|
|
1,570,353
|
|
||
$100,000 or greater
|
|
4,315,178
|
|
|
5,046,542
|
|
||
Total time deposits
|
|
5,615,269
|
|
|
6,616,895
|
|
||
Total deposits
|
|
$
|
29,890,983
|
|
|
$
|
27,475,981
|
|
|
|
||||
Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2017
|
|
$
|
4,665,713
|
|
2018
|
|
529,030
|
|
|
2019
|
|
192,410
|
|
|
2020
|
|
91,171
|
|
|
2021
|
|
92,038
|
|
|
Thereafter
|
|
44,907
|
|
|
Total
|
|
$
|
5,615,269
|
|
|
|
|
|
|
|
||||
($ in thousands)
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
|||||
Junior subordinated debt
|
|
$
|
146,327
|
|
|
$
|
146,084
|
|
Term loan
|
|
40,000
|
|
|
60,000
|
|
||
Total long-term debt
|
|
$
|
186,327
|
|
|
$
|
206,084
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Issuer
|
|
Stated
Maturity (1) |
|
Stated
Interest Rate |
|
Current Rate
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
|
|
|
Aggregate
Principal
Amount of
Trust
Securities
|
|
Aggregate
Principal
Amount of
the Junior
Subordinated
Debts
|
|
Aggregate
Principal Amount of Trust Securities |
|
Aggregate
Principal Amount of the Junior Subordinated Debts |
||||||||||||
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
East West Capital Trust V
|
|
November 2034
|
|
3-month LIBOR + 1.80%
|
|
2.72%
|
|
$
|
464
|
|
|
$
|
15,000
|
|
|
$
|
464
|
|
|
$
|
15,000
|
|
East West Capital Trust VI
|
|
September 2035
|
|
3-month LIBOR + 1.50%
|
|
2.46%
|
|
619
|
|
|
20,000
|
|
|
619
|
|
|
20,000
|
|
||||
East West Capital Trust VII
|
|
June 2036
|
|
3-month LIBOR + 1.35%
|
|
2.31%
|
|
928
|
|
|
30,000
|
|
|
928
|
|
|
30,000
|
|
||||
East West Capital Trust VIII
|
|
June 2037
|
|
3-month LIBOR + 1.40%
|
|
2.35%
|
|
619
|
|
|
18,000
|
|
|
619
|
|
|
18,000
|
|
||||
East West Capital Trust IX
|
|
September 2037
|
|
3-month LIBOR + 1.90%
|
|
2.86%
|
|
928
|
|
|
30,000
|
|
|
928
|
|
|
30,000
|
|
||||
MCBI Statutory Trust I
|
|
December 2035
|
|
3-month LIBOR + 1.55%
|
|
2.51%
|
|
1,083
|
|
|
35,000
|
|
|
1,083
|
|
|
35,000
|
|
||||
Total
|
|
|
|
|
|
|
|
$
|
4,641
|
|
|
$
|
148,000
|
|
|
$
|
4,641
|
|
|
$
|
148,000
|
|
|
(1)
|
All the above debt instruments are subject to call options where early redemption requires appropriate notice.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Current income tax expense (benefit):
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
63,642
|
|
|
$
|
(62,829
|
)
|
|
$
|
174,640
|
|
State
|
|
48,558
|
|
|
(4,750
|
)
|
|
70,527
|
|
|||
Foreign
|
|
1,345
|
|
|
409
|
|
|
3,846
|
|
|||
Total current income tax expense (benefit)
|
|
113,545
|
|
|
(67,170
|
)
|
|
249,013
|
|
|||
Deferred income tax expense (benefit):
|
|
|
|
|
|
|
||||||
Federal
|
|
25,296
|
|
|
199,858
|
|
|
(111,122
|
)
|
|||
State
|
|
1,883
|
|
|
60,437
|
|
|
(36,040
|
)
|
|||
Foreign
|
|
(213
|
)
|
|
919
|
|
|
(706
|
)
|
|||
Total deferred income tax expense (benefit)
|
|
26,966
|
|
|
261,214
|
|
|
(147,868
|
)
|
|||
Income tax expense
|
|
$
|
140,511
|
|
|
$
|
194,044
|
|
|
$
|
101,145
|
|
|
|
|||||||||
|
|
Year Ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
||||
Federal income tax provision at statutory rate
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State franchise taxes, net of federal tax effect
|
|
6.1
|
|
|
6.3
|
|
|
5.0
|
|
Tax credits, net of amortization
|
|
(18.3
|
)
|
|
(8.7
|
)
|
|
(16.7
|
)
|
Other, net
|
|
1.8
|
|
|
0.9
|
|
|
(0.7
|
)
|
Effective income tax rate
|
|
24.6
|
%
|
|
33.5
|
%
|
|
22.6
|
%
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|||||||||||||||||||||||||||||
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
|||||||||||||||||
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses and OREO reserves
|
|
$
|
97,921
|
|
|
$
|
27,792
|
|
|
$
|
1,365
|
|
|
$
|
127,078
|
|
|
$
|
102,382
|
|
|
$
|
28,686
|
|
|
$
|
1,153
|
|
|
$
|
132,221
|
|
Investments in partnerships, tax credit and other investments, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,250
|
)
|
|
3,894
|
|
|
—
|
|
|
2,644
|
|
||||||||
Net operating loss (“NOL”) carryforwards
|
|
—
|
|
|
283
|
|
|
—
|
|
|
283
|
|
|
—
|
|
|
282
|
|
|
—
|
|
|
282
|
|
||||||||
Deferred compensation
|
|
20,093
|
|
|
5,731
|
|
|
—
|
|
|
25,824
|
|
|
21,484
|
|
|
6,028
|
|
|
—
|
|
|
27,512
|
|
||||||||
Mortgage servicing assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
875
|
|
|
243
|
|
|
—
|
|
|
1,118
|
|
||||||||
Purchased loan premiums
|
|
170
|
|
|
48
|
|
|
—
|
|
|
218
|
|
|
172
|
|
|
48
|
|
|
—
|
|
|
220
|
|
||||||||
Unrealized losses on securities
|
|
16,253
|
|
|
5,315
|
|
|
—
|
|
|
21,568
|
|
|
4,070
|
|
|
1,083
|
|
|
—
|
|
|
5,153
|
|
||||||||
State taxes
|
|
1,333
|
|
|
—
|
|
|
—
|
|
|
1,333
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Interest income on nonaccrual loans
|
|
4,461
|
|
|
1,258
|
|
|
—
|
|
|
5,719
|
|
|
4,124
|
|
|
1,144
|
|
|
—
|
|
|
5,268
|
|
||||||||
Other, net
|
|
1,883
|
|
|
4,938
|
|
|
97
|
|
|
6,918
|
|
|
13,520
|
|
|
3,769
|
|
|
96
|
|
|
17,385
|
|
||||||||
Total gross deferred tax assets
|
|
142,114
|
|
|
45,365
|
|
|
1,462
|
|
|
188,941
|
|
|
145,377
|
|
|
45,177
|
|
|
1,249
|
|
|
191,803
|
|
||||||||
Valuation allowance
|
|
—
|
|
|
(283
|
)
|
|
—
|
|
|
(283
|
)
|
|
—
|
|
|
(282
|
)
|
|
—
|
|
|
(282
|
)
|
||||||||
Total deferred tax assets, net of valuation allowance
|
|
$
|
142,114
|
|
|
$
|
45,082
|
|
|
$
|
1,462
|
|
|
$
|
188,658
|
|
|
$
|
145,377
|
|
|
$
|
44,895
|
|
|
$
|
1,249
|
|
|
$
|
191,521
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Core deposit intangibles
|
|
$
|
(9,768
|
)
|
|
$
|
(2,874
|
)
|
|
$
|
—
|
|
|
$
|
(12,642
|
)
|
|
$
|
(12,588
|
)
|
|
$
|
(3,616
|
)
|
|
$
|
—
|
|
|
$
|
(16,204
|
)
|
Investments in partnerships, tax credit and other investments, net
|
|
(7,012
|
)
|
|
5,318
|
|
|
—
|
|
|
(1,694
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Property, plant and equipment
|
|
(26,406
|
)
|
|
(5,226
|
)
|
|
—
|
|
|
(31,632
|
)
|
|
(15,167
|
)
|
|
(4,093
|
)
|
|
—
|
|
|
(19,260
|
)
|
||||||||
FHLB stock dividends
|
|
(1,189
|
)
|
|
(335
|
)
|
|
—
|
|
|
(1,524
|
)
|
|
(2,229
|
)
|
|
(618
|
)
|
|
—
|
|
|
(2,847
|
)
|
||||||||
Deferred loan fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,198
|
)
|
|
(332
|
)
|
|
—
|
|
|
(1,530
|
)
|
||||||||
State taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(912
|
)
|
|
—
|
|
|
—
|
|
|
(912
|
)
|
||||||||
Mortgage servicing assets
|
|
(184
|
)
|
|
(52
|
)
|
|
—
|
|
|
(236
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Acquired debt
|
|
(2,210
|
)
|
|
(623
|
)
|
|
—
|
|
|
(2,833
|
)
|
|
(2,295
|
)
|
|
(637
|
)
|
|
—
|
|
|
(2,932
|
)
|
||||||||
Acquired loans and OREO
|
|
(5,407
|
)
|
|
(1,242
|
)
|
|
(406
|
)
|
|
(7,055
|
)
|
|
(7,222
|
)
|
|
(1,714
|
)
|
|
(406
|
)
|
|
(9,342
|
)
|
||||||||
Other, net
|
|
(1,025
|
)
|
|
(319
|
)
|
|
—
|
|
|
(1,344
|
)
|
|
(1,740
|
)
|
|
(883
|
)
|
|
—
|
|
|
(2,623
|
)
|
||||||||
Total gross deferred tax liabilities
|
|
(53,201
|
)
|
|
(5,353
|
)
|
|
(406
|
)
|
|
(58,960
|
)
|
|
(43,351
|
)
|
|
(11,893
|
)
|
|
(406
|
)
|
|
(55,650
|
)
|
||||||||
Net deferred tax assets
|
|
$
|
88,913
|
|
|
$
|
39,729
|
|
|
$
|
1,056
|
|
|
$
|
129,698
|
|
|
$
|
102,026
|
|
|
$
|
33,002
|
|
|
$
|
843
|
|
|
$
|
135,871
|
|
|
|
||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||
|
2016
|
|
2015
|
|||||
Beginning Balance
|
|
$
|
7,125
|
|
|
$
|
5,020
|
|
Additions for tax positions of prior years
|
|
5,819
|
|
|
2,105
|
|
||
Settlements
|
|
(2,525
|
)
|
|
—
|
|
||
Ending Balance
|
|
$
|
10,419
|
|
|
$
|
7,125
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
|||||
Loan commitments
|
|
$
|
5,077,869
|
|
|
$
|
3,370,271
|
|
Commercial letters of credit and SBLCs
|
|
$
|
1,525,613
|
|
|
$
|
1,293,547
|
|
|
|
||||
Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2017
|
|
$
|
25,334
|
|
2018
|
|
22,083
|
|
|
2019
|
|
18,853
|
|
|
2020
|
|
14,699
|
|
|
2021
|
|
11,617
|
|
|
Thereafter
|
|
31,571
|
|
|
Total
|
|
$
|
124,157
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Stock compensation costs
|
|
$
|
22,102
|
|
|
$
|
16,502
|
|
|
$
|
13,883
|
|
Net tax benefit recognized in equity for stock compensation plans
|
|
$
|
1,055
|
|
|
$
|
3,291
|
|
|
$
|
6,513
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Cash proceeds from options exercised
|
|
$
|
—
|
|
|
$
|
874
|
|
|
$
|
4,937
|
|
Net tax benefit recognized from options exercised
|
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
1,398
|
|
Total intrinsic value of options exercised
|
|
$
|
—
|
|
|
$
|
760
|
|
|
$
|
3,546
|
|
|
|
||||||||||||||
|
|
2016
|
||||||||||||
|
Time-Based RSUs
|
|
Performance-Based RSUs
|
|||||||||||
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted
Average Grant Date Fair Value |
|||||||
Outstanding at beginning of year
|
|
933,312
|
|
|
$
|
36.83
|
|
|
389,358
|
|
|
$
|
34.21
|
|
Granted
|
|
529,385
|
|
|
31.86
|
|
|
159,407
|
|
|
29.18
|
|
||
Vested
|
|
(125,608
|
)
|
|
25.78
|
|
|
(138,019
|
)
|
|
25.25
|
|
||
Forfeited
|
|
(118,375
|
)
|
|
35.80
|
|
|
—
|
|
|
—
|
|
||
Outstanding at end of year
|
|
1,218,714
|
|
|
$
|
35.92
|
|
|
410,746
|
|
|
$
|
35.27
|
|
|
|
|
|
||
Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2017
|
|
$
|
310
|
|
2018
|
|
319
|
|
|
2019
|
|
329
|
|
|
2020
|
|
339
|
|
|
2021
|
|
349
|
|
|
Thereafter
|
|
8,214
|
|
|
Total
|
|
$
|
9,860
|
|
|
|
|
|
||||||||||||
($ and shares in thousands, except per share data)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Basic
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
|
$
|
345,878
|
|
Less: Earnings allocated to participating securities
|
|
—
|
|
|
3
|
|
|
506
|
|
|||
Net income allocated to common stockholders
|
|
$
|
431,677
|
|
|
$
|
384,674
|
|
|
$
|
345,372
|
|
|
|
|
|
|
|
|
||||||
Basic weighted average common shares outstanding
|
|
144,087
|
|
|
143,818
|
|
|
142,952
|
|
|||
Basic EPS
|
|
$
|
3.00
|
|
|
$
|
2.67
|
|
|
$
|
2.42
|
|
|
|
|
|
|
|
|
||||||
Diluted
|
|
|
|
|
|
|
||||||
Net income allocated to common stockholders
|
|
$
|
431,677
|
|
|
$
|
384,674
|
|
|
$
|
345,372
|
|
|
|
|
|
|
|
|
||||||
Basic weighted average common shares outstanding
|
|
144,087
|
|
|
143,818
|
|
|
142,952
|
|
|||
Diluted potential common shares
(1)
|
|
1,085
|
|
|
694
|
|
|
611
|
|
|||
Diluted weighted average common shares outstanding
|
|
145,172
|
|
|
144,512
|
|
|
143,563
|
|
|||
Diluted EPS
|
|
$
|
2.97
|
|
|
$
|
2.66
|
|
|
$
|
2.41
|
|
|
(1)
|
Includes dilutive shares from RSUs and warrants for the
years ended December 31,
2016
,
2015
and
2014
. Also includes dilutive shares from stock options for the
years ended December 31,
2015
and
2014
.
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||||
|
Available-
for-Sale
Investment
Securities
|
|
Foreign
Currency
Translation
Adjustments
(1)
|
|
Total
|
|
Available-
for-Sale Investment Securities |
|
Foreign
Currency
Translation
Adjustments
(1)
|
|
Total
|
|
Available-
for-Sale Investment Securities |
|
Total
|
|||||||||||||||||
Beginning balance
|
|
$
|
(6,144
|
)
|
|
$
|
(8,797
|
)
|
|
$
|
(14,941
|
)
|
|
$
|
4,237
|
|
|
$
|
—
|
|
|
$
|
4,237
|
|
|
$
|
(30,459
|
)
|
|
$
|
(30,459
|
)
|
Net unrealized (losses) gains arising during the period
|
|
(16,623
|
)
|
|
(10,577
|
)
|
|
(27,200
|
)
|
|
13,012
|
|
|
(8,797
|
)
|
|
4,215
|
|
|
40,911
|
|
|
40,911
|
|
||||||||
Amounts reclassified from AOCI
|
|
(6,005
|
)
|
|
—
|
|
|
(6,005
|
)
|
|
(23,393
|
)
|
|
—
|
|
|
(23,393
|
)
|
|
(6,215
|
)
|
|
(6,215
|
)
|
||||||||
Changes, net of taxes
|
|
(22,628
|
)
|
|
(10,577
|
)
|
|
(33,205
|
)
|
|
(10,381
|
)
|
|
(8,797
|
)
|
|
(19,178
|
)
|
|
34,696
|
|
|
34,696
|
|
||||||||
Ending balance
|
|
$
|
(28,772
|
)
|
|
$
|
(19,374
|
)
|
|
$
|
(48,146
|
)
|
|
$
|
(6,144
|
)
|
|
$
|
(8,797
|
)
|
|
$
|
(14,941
|
)
|
|
$
|
4,237
|
|
|
$
|
4,237
|
|
|
(1)
|
Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. In the third quarter of 2015, there was a change in functional currency from USD to the local currency of the Company’s foreign subsidiary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||||||||
|
Before -
Tax
|
|
Tax
Effect |
|
Net-of-
Tax
|
|
Before -
Tax |
|
Tax
Effect |
|
Net-of-
Tax |
|
Before -
Tax |
|
Tax
Effect |
|
Net-of-
Tax |
|||||||||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net unrealized (losses) gains arising during the period
|
|
$
|
(28,681
|
)
|
|
$
|
12,058
|
|
|
$
|
(16,623
|
)
|
|
$
|
22,454
|
|
|
$
|
(9,442
|
)
|
|
$
|
13,012
|
|
|
$
|
70,537
|
|
|
$
|
(29,626
|
)
|
|
$
|
40,911
|
|
Net realized gains reclassified into net income
(1)
|
|
(10,362
|
)
|
|
4,357
|
|
|
(6,005
|
)
|
|
(40,367
|
)
|
|
16,974
|
|
|
(23,393
|
)
|
|
(10,715
|
)
|
|
4,500
|
|
|
(6,215
|
)
|
|||||||||
Net change
|
|
(39,043
|
)
|
|
16,415
|
|
|
(22,628
|
)
|
|
(17,913
|
)
|
|
7,532
|
|
|
(10,381
|
)
|
|
59,822
|
|
|
(25,126
|
)
|
|
34,696
|
|
|||||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net unrealized losses arising during period
|
|
(10,577
|
)
|
|
—
|
|
|
(10,577
|
)
|
|
(8,797
|
)
|
|
—
|
|
|
(8,797
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net change
|
|
(10,577
|
)
|
|
—
|
|
|
(10,577
|
)
|
|
(8,797
|
)
|
|
—
|
|
|
(8,797
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other comprehensive (loss)income
|
|
$
|
(49,620
|
)
|
|
$
|
16,415
|
|
|
$
|
(33,205
|
)
|
|
$
|
(26,710
|
)
|
|
$
|
7,532
|
|
|
$
|
(19,178
|
)
|
|
$
|
59,822
|
|
|
$
|
(25,126
|
)
|
|
$
|
34,696
|
|
|
(1)
|
For the years ended
December 31, 2016
,
2015
and 2014, the pretax amounts were reported in
Net gains on sales of available-for-sale investment securities
on the Consolidated Statements of Income.
|
|
||||||||||||||||||||||||||
|
|
Basel III
|
||||||||||||||||||||||||
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||
($ in thousands)
|
|
Actual
|
|
Minimum Requirement
|
|
Well Capitalized Requirement
|
|
Actual
|
|
Minimum Requirement
|
|
Well Capitalized Requirement
|
||||||||||||||
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
3,400,642
|
|
|
12.4
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
|
$
|
3,082,945
|
|
|
12.2
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
East West Bank
|
|
$
|
3,371,885
|
|
|
12.3
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
|
$
|
3,039,524
|
|
|
12.1
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
Tier I capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
2,976,002
|
|
|
10.9
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
|
$
|
2,686,627
|
|
|
10.7
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
East West Bank
|
|
$
|
3,095,245
|
|
|
11.3
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
|
$
|
2,754,201
|
|
|
11.0
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
CET1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
2,976,002
|
|
|
10.9
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
|
$
|
2,650,413
|
|
|
10.5
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
East West Bank
|
|
$
|
3,095,245
|
|
|
11.3
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
|
$
|
2,754,201
|
|
|
11.0
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
Tier I leverage capital (to adjusted average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
2,976,002
|
|
|
8.7
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
$
|
2,686,627
|
|
|
8.5
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
East West Bank
|
|
$
|
3,095,245
|
|
|
9.1
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
$
|
2,754,201
|
|
|
8.8
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
Risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
27,357,753
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
25,232,575
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
East West Bank
|
|
$
|
27,310,540
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
25,129,885
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Adjusted quarterly average total assets
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
34,209,827
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
31,458,517
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
East West Bank
|
|
$
|
34,163,667
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
31,385,333
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
(1)
|
Reflects adjusted average total assets for the three months ended December 31, 2016 and 2015.
|
•
|
within 60 days of the Written Agreement, submit a written plan to strengthen the Board’s oversight of the Bank’s compliance with the applicable laws, rules and regulations relating to AML, including compliance with the BSA, the rules and regulations issued thereunder by the U.S. Department of Treasury, and the AML requirements of Regulation H of the Board of Governors (collectively, “BSA/AML Requirements”);
|
•
|
within 60 days of the Written Agreement, submit a written revised program for compliance with all applicable BSA/AML Requirements, which, at a minimum, will include, among other things, a system of internal controls to ensure compliance with all applicable BSA/AML Requirements and controls designed to ensure compliance with all applicable requirements relating to correspondent accounts for foreign financial institutions;
|
•
|
within 60 days of the Written Agreement, submit a written revised program for conducting appropriate levels of customer due diligence, including policies, procedures, and controls to ensure that the Bank collects, analyzes, and retains complete and accurate customer information for all account holders, including customers of the Bank’s foreign operations;
|
•
|
within 60 days of the Written Agreement, submit an enhanced written program to reasonably ensure the identification and timely, accurate and complete reporting by the Bank of all known or suspected violations of law or suspicious transactions to law enforcement and supervisory authorities as required by applicable suspicious activity reporting laws and regulations;
|
•
|
within 60 days of the Written Agreement, submit a written plan to the FRB for the full installation, testing, and activation of an effective automated transaction monitoring system to reasonably ensure the identification and timely, accurate, and complete reporting by the Bank of all known or suspected violations of law or suspicious transactions to law enforcement and supervisory authorities;
|
•
|
within 30 days following completion of the customer account remediation required by the Written Agreement, engage an independent consultant to conduct a review of, and prepare a report detailing findings relating to, account and transaction activity associated with any high risk customer accounts during a six-month period in 2014 to determine whether suspicious activity involving high risk customer accounts or transactions was properly identified and reported; and
|
•
|
within 60 days of the Written Agreement, submit a plan to enhance the Bank’s compliance with Office of Foreign Assets Control
(“
OFAC
”)
Regulations, including enhanced OFAC screening procedures and an improved methodology for assessing OFAC risks.
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2016
|
||||||||||||||
|
Retail
Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Interest income
|
|
$
|
315,146
|
|
|
$
|
726,013
|
|
|
$
|
96,322
|
|
|
$
|
1,137,481
|
|
Charge for funds used
|
|
(95,970
|
)
|
|
(216,849
|
)
|
|
(47,646
|
)
|
|
(360,465
|
)
|
||||
Interest spread on funds used
|
|
219,176
|
|
|
509,164
|
|
|
48,676
|
|
|
777,016
|
|
||||
Interest expense
|
|
(60,180
|
)
|
|
(16,892
|
)
|
|
(27,771
|
)
|
|
(104,843
|
)
|
||||
Credit on funds provided
|
|
300,446
|
|
|
38,636
|
|
|
21,383
|
|
|
360,465
|
|
||||
Interest spread on funds provided
|
|
240,266
|
|
|
21,744
|
|
|
(6,388
|
)
|
|
255,622
|
|
||||
Net interest income before provision for credit losses
|
|
$
|
459,442
|
|
|
$
|
530,908
|
|
|
$
|
42,288
|
|
|
$
|
1,032,638
|
|
(Reversal of) provision for credit losses
|
|
$
|
(4,356
|
)
|
|
$
|
31,835
|
|
|
$
|
—
|
|
|
$
|
27,479
|
|
Depreciation, amortization and (accretion), net
|
|
$
|
601
|
|
|
$
|
(35,534
|
)
|
|
$
|
118,281
|
|
|
$
|
83,348
|
|
Segment income before income taxes
|
|
$
|
170,129
|
|
|
$
|
377,913
|
|
|
$
|
24,146
|
|
|
$
|
572,188
|
|
As of December 31, 2016:
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
$
|
357,207
|
|
|
$
|
112,226
|
|
|
$
|
—
|
|
|
$
|
469,433
|
|
Segment assets
|
|
$
|
7,821,610
|
|
|
$
|
19,128,510
|
|
|
$
|
7,838,720
|
|
|
$
|
34,788,840
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2015
|
||||||||||||||
|
Retail
Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Interest income
|
|
$
|
331,755
|
|
|
$
|
654,966
|
|
|
$
|
67,094
|
|
|
$
|
1,053,815
|
|
Charge for funds used
|
|
(86,769
|
)
|
|
(163,601
|
)
|
|
(66,773
|
)
|
|
(317,143
|
)
|
||||
Interest spread on funds used
|
|
244,986
|
|
|
491,365
|
|
|
321
|
|
|
736,672
|
|
||||
Interest expense
|
|
(53,088
|
)
|
|
(18,025
|
)
|
|
(32,263
|
)
|
|
(103,376
|
)
|
||||
Credit on funds provided
|
|
261,117
|
|
|
36,251
|
|
|
19,775
|
|
|
317,143
|
|
||||
Interest spread on funds provided
|
|
208,029
|
|
|
18,226
|
|
|
(12,488
|
)
|
|
213,767
|
|
||||
Net interest income (loss) before provision for credit losses
|
|
$
|
453,015
|
|
|
$
|
509,591
|
|
|
$
|
(12,167
|
)
|
|
$
|
950,439
|
|
(Reversal of) provision for credit losses
|
|
$
|
(5,835
|
)
|
|
$
|
20,052
|
|
|
$
|
—
|
|
|
$
|
14,217
|
|
Depreciation, amortization and (accretion), net
(1)
|
|
$
|
10,051
|
|
|
$
|
(28,096
|
)
|
|
$
|
64,247
|
|
|
$
|
46,202
|
|
Segment income (loss) before income taxes
|
|
$
|
212,036
|
|
|
$
|
382,233
|
|
|
$
|
(15,548
|
)
|
|
$
|
578,721
|
|
As of December 31, 2015:
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
$
|
357,207
|
|
|
$
|
112,226
|
|
|
$
|
—
|
|
|
$
|
469,433
|
|
Segment assets
|
|
$
|
7,095,737
|
|
|
$
|
17,923,319
|
|
|
$
|
7,331,866
|
|
|
$
|
32,350,922
|
|
|
(1)
|
Includes amortization and (accretion) related to the FDIC indemnification asset/net payable to the FDIC.
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2014
|
||||||||||||||
|
Retail
Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Interest income
|
|
$
|
378,445
|
|
|
$
|
715,075
|
|
|
$
|
60,178
|
|
|
$
|
1,153,698
|
|
Charge for funds used
|
|
(94,162
|
)
|
|
(141,652
|
)
|
|
(47,570
|
)
|
|
(283,384
|
)
|
||||
Interest spread on funds used
|
|
284,283
|
|
|
573,423
|
|
|
12,608
|
|
|
870,314
|
|
||||
Interest expense
|
|
(48,020
|
)
|
|
(15,650
|
)
|
|
(49,150
|
)
|
|
(112,820
|
)
|
||||
Credit on funds provided
|
|
225,873
|
|
|
38,592
|
|
|
18,919
|
|
|
283,384
|
|
||||
Interest spread on funds provided
|
|
177,853
|
|
|
22,942
|
|
|
(30,231
|
)
|
|
170,564
|
|
||||
Net interest income (loss) before provision for credit losses
|
|
$
|
462,136
|
|
|
$
|
596,365
|
|
|
$
|
(17,623
|
)
|
|
$
|
1,040,878
|
|
Provision for credit losses
|
|
$
|
14,979
|
|
|
$
|
34,179
|
|
|
$
|
—
|
|
|
$
|
49,158
|
|
Depreciation, amortization and (accretion), net
(1)
|
|
$
|
14,376
|
|
|
$
|
(8,372
|
)
|
|
$
|
76,549
|
|
|
$
|
82,553
|
|
Segment income (loss) before income taxes
|
|
$
|
181,286
|
|
|
$
|
293,425
|
|
|
$
|
(27,688
|
)
|
|
$
|
447,023
|
|
As of December 31, 2014:
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
$
|
357,207
|
|
|
$
|
112,226
|
|
|
$
|
—
|
|
|
$
|
469,433
|
|
Segment assets
|
|
$
|
7,621,808
|
|
|
$
|
15,595,862
|
|
|
$
|
5,525,922
|
|
|
$
|
28,743,592
|
|
|
(1)
|
Includes amortization and (accretion) related to the FDIC indemnification asset/net payable to the FDIC.
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
|||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
38,699
|
|
|
$
|
18,334
|
|
Interest-bearing cash with banks
|
|
565
|
|
|
564
|
|
||
Cash and cash equivalents
|
|
39,264
|
|
|
18,898
|
|
||
Available-for-sale investment securities, at fair value
|
|
9,338
|
|
|
8,731
|
|
||
Investment in subsidiaries
|
|
3,552,659
|
|
|
3,233,206
|
|
||
Tax credit investments, net
|
|
32,245
|
|
|
47,488
|
|
||
Other assets
|
|
4,812
|
|
|
46,894
|
|
||
TOTAL
|
|
$
|
3,638,318
|
|
|
$
|
3,355,217
|
|
LIABILITIES
|
|
|
|
|
|
|
||
Long-term debt
|
|
$
|
186,327
|
|
|
$
|
206,084
|
|
Other liabilities
|
|
24,250
|
|
|
26,183
|
|
||
Total liabilities
|
|
210,577
|
|
|
232,267
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 164,604,072 and 164,246,517 shares issued in 2016 and 2015, respectively.
|
|
164
|
|
|
164
|
|
||
Additional paid-in capital
|
|
1,727,434
|
|
|
1,701,295
|
|
||
Retained earnings
|
|
2,187,676
|
|
|
1,872,594
|
|
||
Treasury stock at cost — 20,436,621 shares in 2016 and 20,337,284 shares in 2015.
|
|
(439,387
|
)
|
|
(436,162
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
|
(48,146
|
)
|
|
(14,941
|
)
|
||
Total stockholders’ equity
|
|
3,427,741
|
|
|
3,122,950
|
|
||
TOTAL
|
|
$
|
3,638,318
|
|
|
$
|
3,355,217
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
Dividends from subsidiaries
|
|
$
|
100,107
|
|
|
$
|
88
|
|
|
$
|
111,701
|
|
Other income
|
|
610
|
|
|
625
|
|
|
7,414
|
|
|||
Total income
|
|
100,717
|
|
|
713
|
|
|
119,115
|
|
|||
Interest expense
|
|
5,017
|
|
|
4,636
|
|
|
4,823
|
|
|||
Compensation and net occupancy reimbursement to subsidiary
|
|
5,001
|
|
|
5,386
|
|
|
4,039
|
|
|||
Other expense
|
|
15,069
|
|
|
24,829
|
|
|
50,280
|
|
|||
Total expense
|
|
25,087
|
|
|
34,851
|
|
|
59,142
|
|
|||
Income (loss) before income tax benefit and equity in undistributed income of subsidiaries
|
|
75,630
|
|
|
(34,138
|
)
|
|
59,973
|
|
|||
Income tax benefit
|
|
26,041
|
|
|
30,849
|
|
|
80,674
|
|
|||
Equity in undistributed income of subsidiaries
|
|
330,006
|
|
|
387,966
|
|
|
205,231
|
|
|||
Net income
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
|
$
|
345,878
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
|
$
|
345,878
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Equity in undistributed income of subsidiaries
|
|
(330,006
|
)
|
|
(387,966
|
)
|
|
(317,620
|
)
|
|||
Depreciation and amortization
|
|
14,094
|
|
|
22,870
|
|
|
46,365
|
|
|||
Gains on sales of available-for-sale investment securities and other investments
|
|
—
|
|
|
(20
|
)
|
|
(4,357
|
)
|
|||
Net change in other assets and other liabilities
|
|
47,072
|
|
|
(40,624
|
)
|
|
179,869
|
|
|||
Net cash provided (used in) by operating activities
|
|
162,837
|
|
|
(21,063
|
)
|
|
250,135
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net increase in tax credit investments
|
|
(6,554
|
)
|
|
(35,633
|
)
|
|
(53,071
|
)
|
|||
Purchases of:
|
|
|
|
|
|
|
||||||
Available-for-sale investment securities
|
|
—
|
|
|
—
|
|
|
(9,000
|
)
|
|||
Proceeds from sale of:
|
|
|
|
|
|
|
||||||
Available-for-sale investment securities
|
|
—
|
|
|
20
|
|
|
74,002
|
|
|||
Net cash (used in) provided by investing activities
|
|
(6,554
|
)
|
|
(35,613
|
)
|
|
11,931
|
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Proceeds from:
|
|
|
|
|
|
|
||||||
Issuance of common stock pursuant to various stock plans and agreements
|
|
2,081
|
|
|
2,835
|
|
|
6,794
|
|
|||
Payments for:
|
|
|
|
|
|
|
||||||
Repayment of long-term debt
|
|
(20,000
|
)
|
|
(20,000
|
)
|
|
(30,310
|
)
|
|||
Repurchase of vested shares due to employee tax liability
|
|
(3,225
|
)
|
|
(5,964
|
)
|
|
(10,326
|
)
|
|||
Cash dividends on common stock
|
|
(115,828
|
)
|
|
(115,641
|
)
|
|
(103,618
|
)
|
|||
Other net financing activities
|
|
1,055
|
|
|
3,291
|
|
|
6,513
|
|
|||
Net cash used in financing activities
|
|
(135,917
|
)
|
|
(135,479
|
)
|
|
(130,947
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
20,366
|
|
|
(192,155
|
)
|
|
131,119
|
|
|||
Cash and cash equivalents, beginning of year
|
|
18,898
|
|
|
211,053
|
|
|
79,934
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
39,264
|
|
|
$
|
18,898
|
|
|
$
|
211,053
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
|
||||||
Interest
|
|
$
|
4,691
|
|
|
$
|
4,254
|
|
|
$
|
4,462
|
|
Noncash financing activities:
|
|
|
|
|
|
|
||||||
Issuance of common stock related to acquisition
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
190,830
|
|
|
|
||||||||||||||||
|
|
Quarters Ended
|
||||||||||||||
($ in thousands, except per share data)
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and dividend income
|
|
$
|
302,127
|
|
|
$
|
280,317
|
|
|
$
|
278,865
|
|
|
$
|
276,172
|
|
Interest expense
|
|
29,425
|
|
|
26,169
|
|
|
25,281
|
|
|
23,968
|
|
||||
Net interest income before provision for credit losses
|
|
272,702
|
|
|
254,148
|
|
|
253,584
|
|
|
252,204
|
|
||||
Provision for credit losses
|
|
10,461
|
|
|
9,525
|
|
|
6,053
|
|
|
1,440
|
|
||||
Net interest income after provision for credit losses
|
|
262,241
|
|
|
244,623
|
|
|
247,531
|
|
|
250,764
|
|
||||
Noninterest income
|
|
48,800
|
|
|
49,341
|
|
|
44,264
|
|
|
40,513
|
|
||||
Noninterest expense
|
|
149,904
|
|
|
170,500
|
|
|
148,879
|
|
|
146,606
|
|
||||
Income before income taxes
|
|
161,137
|
|
|
123,464
|
|
|
142,916
|
|
|
144,671
|
|
||||
Income tax expense
|
|
50,403
|
|
|
13,321
|
|
|
39,632
|
|
|
37,155
|
|
||||
Net income
|
|
$
|
110,734
|
|
|
$
|
110,143
|
|
|
$
|
103,284
|
|
|
$
|
107,516
|
|
|
|
|
|
|
|
|
|
|
||||||||
EPS
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.77
|
|
|
$
|
0.76
|
|
|
$
|
0.72
|
|
|
$
|
0.75
|
|
Diluted
|
|
$
|
0.76
|
|
|
$
|
0.76
|
|
|
$
|
0.71
|
|
|
$
|
0.74
|
|
Weighted average number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
144,166
|
|
|
144,122
|
|
|
144,101
|
|
|
143,958
|
|
||||
Diluted
|
|
145,428
|
|
|
145,238
|
|
|
145,078
|
|
|
144,803
|
|
||||
Dividends declared per common share
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
|
||||||||||||||||
|
|
Quarters Ended
|
||||||||||||||
($ in thousands, except per share data)
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
2015
|
|
|
|
|
|
|
|
|
||||||||
Interest and dividend income
|
|
$
|
270,477
|
|
|
$
|
264,632
|
|
|
$
|
255,445
|
|
|
$
|
263,261
|
|
Interest expense
|
|
23,536
|
|
|
24,343
|
|
|
27,953
|
|
|
27,544
|
|
||||
Net interest income before (reversal of) provision
for credit losses
|
|
246,941
|
|
|
240,289
|
|
|
227,492
|
|
|
235,717
|
|
||||
(Reversal of) provision for credit losses
|
|
(2,000
|
)
|
|
7,736
|
|
|
3,494
|
|
|
4,987
|
|
||||
Net interest income after (reversal of) provision
for credit losses
|
|
248,941
|
|
|
232,553
|
|
|
223,998
|
|
|
230,730
|
|
||||
Noninterest income
|
|
44,483
|
|
|
54,181
|
|
|
40,593
|
|
|
44,126
|
|
||||
Noninterest expense
|
|
144,939
|
|
|
147,745
|
|
|
120,170
|
|
|
128,030
|
|
||||
Income before income taxes
|
|
148,485
|
|
|
138,989
|
|
|
144,421
|
|
|
146,826
|
|
||||
Income tax expense
|
|
56,680
|
|
|
44,892
|
|
|
45,673
|
|
|
46,799
|
|
||||
Net income
|
|
$
|
91,805
|
|
|
$
|
94,097
|
|
|
$
|
98,748
|
|
|
$
|
100,027
|
|
|
|
|
|
|
|
|
|
|
||||||||
EPS
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.64
|
|
|
$
|
0.65
|
|
|
$
|
0.69
|
|
|
$
|
0.70
|
|
Diluted
|
|
$
|
0.63
|
|
|
$
|
0.65
|
|
|
$
|
0.68
|
|
|
$
|
0.69
|
|
Weighted average number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
143,900
|
|
|
143,861
|
|
|
143,846
|
|
|
143,655
|
|
||||
Diluted
|
|
144,686
|
|
|
144,590
|
|
|
144,480
|
|
|
144,349
|
|
||||
Dividends declared per common share
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
|
|
|
|
|
Name
|
|
Age
(1)
|
|
Position with Company or Bank and Prior Positions
|
Dominic Ng
|
|
58
|
|
Chairman and Chief Executive Officer of the Company and the Bank since 1992.
|
Gregory L. Guyett
|
|
53
|
|
President and Chief Operating Officer of the Company and the Bank since October 2016; 2015 - 2016: Executive Vice President of Corporate Development at Johnson Controls; 2014 - 2015: Co-Head of Banking and Head of Investment Banking, Asia Pacific; 2013 - 2014: Chief Executive Officer for Greater China; 2009-2012: Chief Executive Officer of the Global Corporate Bank, J.P. Morgan.
|
Douglas P. Krause
|
|
60
|
|
Executive Vice President, Chief Risk Officer, General Counsel, and Secretary of the Company and the Bank since 1996.
|
Irene H. Oh
|
|
39
|
|
Executive Vice President and Chief Financial Officer of the Company and the Bank since 2010.
|
Gary Teo
|
|
44
|
|
Senior Vice President and Head of Human Resources of the Company and the Bank since 2015; 2014 - 2015: Senior Vice President and Director of Human Resources U.S. and Greater China of the Company and the Bank; 2013 - 2014: Senior Vice President and Director of Recruiting/Greater China Human Resources of the Company and the Bank; 2010 - 2013: First Vice President and Recruiting Manager of the Company and the Bank.
|
Andy Yen
|
|
59
|
|
Executive Vice President and Head of International and Commercial Banking since 2013; 2005 - 2013: Executive Vice President and Director of the Business Banking Division of the Bank.
|
|
(1)
|
As of
February 27, 2017
.
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
|
|
||||||||||
Plan Category
|
|
Number of Securities
to be Issued upon
Exercise
of Outstanding
Options
|
|
Weighted Average
Exercise Price of
Outstanding Options
|
|
Number of Securities
Remaining Available
for
Future Issuance under
Equity Compensation
Plans
|
|
||||
Equity compensation plans approved by security holders
|
|
—
|
|
|
$
|
—
|
|
|
5,419,177
|
|
(1)
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
5,419,177
|
|
|
|
|
(1)
|
Represents future shares available under the shareholder-approved 2016 Stock Incentive Plan effective May 24, 2016.
|
(1)
|
Financial Statements
|
|
Page
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits
|
ALCO
|
Asset/Liability Committee
|
AML
|
Anti-money laundering
|
AOCI
|
Accumulated other comprehensive loss
|
ARM
|
Adjustable rate mortgage
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
BHCA
|
Bank Holding Company Act of 1956, as amended
|
BSA
|
Bank Secrecy Act
|
C&I
|
Commercial and Industrial
|
CAP
|
Compliance Assurance Process
|
CAMELS
|
Capital adequacy, asset quality, management, earnings, liquidity and sensitivity
|
CET1
|
Common equity tier I
|
CFPB
|
Consumer Financial Protection Bureau
|
CRA
|
Community Reinvestment Act
|
CRE
|
Commercial real estate
|
DBO
|
California Department of Business Oversight
|
DIF
|
Deposit Insurance Fund
|
EPS
|
Earnings per share
|
EVE
|
Economic value of equity
|
FASB
|
Financial Accounting Standards Board
|
FDIA
|
Federal Deposit Insurance Act, as amended
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FinCEN
|
Financial Crimes Enforcement Network
|
FRB
|
Federal Reserve Bank of San Francisco
|
HELOCs
|
Home equity lines of credit
|
IRS
|
Internal Revenue Service
|
KRX
|
KBW Regional Bank Index
|
LIBOR
|
London Interbank Offered Rate
|
MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
MOU
|
Memorandum of Understanding
|
NAICS
|
North American Industry Classification System
|
NASDAQ
|
NASDAQ Global Select Market
|
NOL
|
Net operating loss
|
Non-PCI
|
Non-purchased credit impaired
|
OFAC
|
Office of Foreign Assets Control
|
OREO
|
Other real estate owned
|
OTTI
|
Other-than-temporary impairment
|
PCA
|
Prompt corrective action
|
PCI
|
Purchased credit impaired
|
RMB
|
Chinese Renminbi
|
ROC
|
Risk Oversight Committee
|
RPAs
|
Credit risk participation agreements
|
RSAs
|
Restricted stock awards
|
RSUs
|
Restricted stock units
|
S&P 500
|
Standard & Poor’s 500
|
SBLCs
|
Standby letters of credit
|
SEC
|
U.S. Securities and Exchange Commission
|
SERP
|
Supplemental Executive Retirement Plan
|
TDRs
|
Troubled debt restructurings
|
UCB
|
United Commercial Bank
|
U.S.
|
United States
|
U.S. GAAP
|
United States Generally Accepted Accounting Principles
|
USD
|
U.S. Dollar
|
VIEs
|
Variable interest entities
|
WFIB
|
Washington First International Bank
|
Dated:
|
February 27, 2017
|
|
||
|
|
|
||
|
|
EAST WEST BANCORP INC.
(Registrant)
|
||
|
|
|
||
|
|
By
|
/s/ DOMINIC NG
|
|
|
|
|
Dominic Ng
|
|
|
|
|
Chairman and Chief Executive Officer
|
|
||||
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ DOMINIC NG
|
|
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
|
February 27, 2017
|
Dominic Ng
|
|
|
|
|
|
|
|
|
|
/s/ IRENE H. OH
|
|
Executive Vice President and
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
|
February 27, 2017
|
Irene H. Oh
|
|
|
|
|
|
|
|
|
|
/s/ MOLLY CAMPBELL
|
|
Director
|
|
February 27, 2017
|
Molly Campbell
|
|
|
|
|
|
|
|
|
|
/s/ IRIS CHAN
|
|
Director
|
|
February 27, 2017
|
Iris Chan
|
|
|
|
|
|
|
|
|
|
/s/ RUDOLPH I. ESTRADA
|
|
Lead Director
|
|
February 27, 2017
|
Rudolph I. Estrada
|
|
|
|
|
|
|
|
|
|
/s/ PAUL H. IRVING
|
|
Director
|
|
February 27, 2017
|
Paul H. Irving
|
|
|
|
|
|
|
|
|
|
/s/ JOHN LEE
|
|
Vice-Chairman and Director
|
|
February 27, 2017
|
John Lee
|
|
|
|
|
|
|
|
|
|
/s/ HERMAN Y. LI
|
|
Director
|
|
February 27, 2017
|
Herman Y. Li
|
|
|
|
|
|
|
|
|
|
/s/ JACK C. LIU
|
|
Director
|
|
February 27, 2017
|
Jack C. Liu
|
|
|
|
|
|
|
|
|
|
/s/ KEITH W. RENKEN
|
|
Director
|
|
February 27, 2017
|
Keith W. Renken
|
|
|
|
|
|
|
|
|
|
/s/ LESTER M. SUSSMAN
|
|
Director
|
|
February 27, 2017
|
Lester M. Sussman
|
|
|
|
|
|
Exhibit No.
|
|
Exhibit Description
|
3.1
|
|
Certificate of Incorporation of the Registrant [Incorporated by reference to Exhibit 3(i) from Registrant’s Registration Statement on Form S-4/A filed with the Commission on November 13, 1998 (File No. 333-63605).]
|
|
|
|
3.1.1
|
|
Certificate of Amendment to Certificate of Incorporation of the Registrant [Incorporated by reference to Exhibit 3(i).1 from Registrant’s Annual Report on Form 10-K for the year ended December 31, 2002 filed with the Commission on March 28, 2003 (File No. 000-24939).]
|
|
|
|
3.1.2
|
|
Amendment to Certification of Incorporation to Increase Authorized Shares of the Registrant [Incorporated by reference from Registrant’s Definitive Proxy Statement on Schedule 14A filed with the Commission on April 15, 2005 (File No. 000-24939).]
|
|
|
|
3.1.3
|
|
Certificate of Amendment to Certificate of Incorporation of the Registrant [Incorporated by reference to Exhibit A from the Registrant’s Definitive Proxy Statement on Schedule 14A filed with the Commission on April 24, 2008 (File No. 000-24939).]
|
|
|
|
3.2
|
|
Amended and Restated Bylaws of the Registrant dated January 29, 2013 [Incorporated by reference to Exhibit 3.10 from Registrant’s Current Report on Form 8-K, filed with the Commission on January 30, 2013 (File No. 000-24939).]
|
|
|
|
3.3
|
|
Certificate of Designations of 8.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series A, including Form of Series A Preferred Stock Certificate. [Incorporated by reference to Exhibit 3.1 from Registrant’s Current Report on Form 8-K, filed with the Commission on April 30, 2008 (File No. 000-24939).]
|
|
|
|
4.1
|
|
Specimen Common Stock Certificate of Registrant [Incorporated by reference to Exhibit 4.1 from Registrant’s Registration Statement on Form S-4/A filed with the Commission on November 13, 1998 (File No. 333-63605).]
|
|
|
|
4.2
|
|
Form of Certificate of the Registrant’s 8.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series A [Incorporated by reference to Exhibit 4.1 from Registrant’s Current report on Form 8-K, filed with the Commission on April 30, 2008 (File No. 000-24939).]
|
|
|
|
10.1.1
|
|
Form of Employment Agreement- Mr. Ng* [Incorporated by reference to Exhibit 10.1 from Registrant’s Registration Statement on Form S-4/A filed with the Commission on November 13, 1998 (File No. 333-63605).]
|
|
|
|
10.1.2
|
|
Form of Amendment to Employment Agreement – Mr. Ng* Filed herewith.
|
|
|
|
10.2.1
|
|
Form of Employment Agreement- Mr. Krause* [Incorporated by reference to Exhibit 10.5 from Registrant’s Registration Statement on Form S-4/A filed with the Commission on November 13, 1998 (File No. 333-63605).]
|
|
|
|
10.2.2
|
|
Form of Amendment to Employment Agreement – Mr. Krause* Filed herewith.
|
|
|
|
10.3
|
|
Form of Employment Agreement – Mr. Yen* [Incorporated by reference to Exhibit 10.3 from Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Commission on February 26, 2016 (File No. 000-24939).]
|
|
|
|
10.4
|
|
Form of Employment Agreement – Mr. Guyett* [Incorporated by reference to Exhibit 10.1 from Registrant’s Current Report on Form 8-K filed with the Commission on October 5, 2016 (File No. 000-24939).]
|
|
|
|
10.5
|
|
Form of Employment Agreement – Ms. Oh* [Incorporated by reference to Exhibit 10.1 from Registrant’s Current Report on Form 8-K filed with the Commission on December 22, 2016 (File No. 000-24939).]
|
|
|
|
10.6.1
|
|
Form of Agreement Regarding Grants of Incentive Shares and Clawbacks – Mr. Ng* [Incorporated by reference to Exhibit 10.3 from Registrant’s Current Report on Form 8-K filed with the Commission on April 10, 2012 (File No. 000-24939).]
|
|
|
|
10.6.2
|
|
Form of Agreement Regarding Grants of Incentive Shares and Clawbacks – Mr. Krause* [Incorporated by reference to Exhibit 10.3.2 from Registrant’s Current Report on Form 8-K filed with the Commission on April 10, 2012 (File No. 000-24939).]
|
|
|
|
10.6.3
|
|
Form of Agreement Regarding Grants of Incentive Shares and Clawbacks – Ms. Oh* [Incorporated by reference to Exhibit 10.3.3 from Registrant’s Current Report on Form 8-K filed with the Commission on April 10, 2012 (File No. 000-24939).]
|
|
|
|
10.7.1
|
|
East West Bancorp, Inc. 1998 Stock Incentive Plan and Forms of Agreements* [Incorporated by reference to Exhibit 10.6 from Registrant’s Registration Statement on Form S-4/A filed with the Commission on November 13, 1998 (File No. 333-63605).]
|
|
|
|
1.
|
Section 3.1 (Term) of the Agreement is hereby modified in its entirety to read as follows: This Agreement and employment under this Agreement shall terminate on March 1, 2019 unless extended by Company.
|
2.
|
Except as expressly agreed to herein, the Employment Agreement between the parties shall remain in force and effect.
|
|
EAST WEST BANCORP, INC.
|
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
|
|
|
/s/ DOMINIC NG
|
|
Employee: Dominic Ng
|
1.
|
Section 3.1 (Term) of the Agreement is hereby modified in its entirety to read as follows: This Agreement and employment under this Agreement shall terminate on March 1, 2019 unless extended by Company.
|
2.
|
Except as expressly agreed to herein, the Employment Agreement between the parties shall remain in force and effect.
|
|
EAST WEST BANCORP, INC.
|
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
|
|
|
/s/ DOUGLAS P. KRAUSE
|
|
Employee: Douglas P. Krause
|
|
|
Year Ending December 31,
|
||||||||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
($ in thousands)
|
|
|
||||||||||||||||||
Including interest on deposits
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
|
$
|
572,188
|
|
|
$
|
578,721
|
|
|
$
|
447,023
|
|
|
$
|
447,146
|
|
|
$
|
441,288
|
|
Fixed charges and preferred dividends
|
|
112,873
|
|
|
111,590
|
|
|
121,562
|
|
|
126,170
|
|
|
151,123
|
|
|||||
Total earnings
|
|
$
|
685,061
|
|
|
$
|
690,311
|
|
|
$
|
568,585
|
|
|
$
|
573,316
|
|
|
$
|
592,411
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
|
$
|
104,843
|
|
|
$
|
103,376
|
|
|
$
|
112,820
|
|
|
$
|
112,492
|
|
|
$
|
132,168
|
|
Estimate of interest within rental expense
|
|
8,030
|
|
|
8,214
|
|
|
8,742
|
|
|
8,731
|
|
|
8,594
|
|
|||||
Total fixed charges
|
|
$
|
112,873
|
|
|
$
|
111,590
|
|
|
$
|
121,562
|
|
|
$
|
121,223
|
|
|
$
|
140,762
|
|
Preferred dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,947
|
|
|
10,361
|
|
|||||
Total fixed charges and preferred dividends
|
|
$
|
112,873
|
|
|
$
|
111,590
|
|
|
$
|
121,562
|
|
|
$
|
126,170
|
|
|
$
|
151,123
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
|
6.07
|
|
|
6.19
|
|
|
4.68
|
|
|
4.73
|
|
|
4.21
|
|
|||||
Ratio of earnings to fixed charges and preferred dividends
|
|
6.07
|
|
|
6.19
|
|
|
4.68
|
|
|
4.54
|
|
|
3.92
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Excluding interest on deposits
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
|
$
|
572,188
|
|
|
$
|
578,721
|
|
|
$
|
447,023
|
|
|
$
|
447,146
|
|
|
$
|
441,288
|
|
Fixed charges and preferred dividends
|
|
28,649
|
|
|
38,085
|
|
|
56,076
|
|
|
62,674
|
|
|
75,228
|
|
|||||
Total earnings
|
|
$
|
600,837
|
|
|
$
|
616,806
|
|
|
$
|
503,099
|
|
|
$
|
509,820
|
|
|
$
|
516,516
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
|
$
|
104,843
|
|
|
$
|
103,376
|
|
|
$
|
112,820
|
|
|
$
|
112,492
|
|
|
$
|
132,168
|
|
Less: Interest on deposits
|
|
84,224
|
|
|
73,505
|
|
|
65,486
|
|
|
63,496
|
|
|
75,895
|
|
|||||
Estimate of interest within rental expense
|
|
8,030
|
|
|
8,214
|
|
|
8,742
|
|
|
8,731
|
|
|
8,594
|
|
|||||
Total fixed charges
|
|
$
|
28,649
|
|
|
$
|
38,085
|
|
|
$
|
56,076
|
|
|
$
|
57,727
|
|
|
$
|
64,867
|
|
Preferred dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,947
|
|
|
10,361
|
|
|||||
Total fixed charges and preferred dividends
|
|
$
|
28,649
|
|
|
$
|
38,085
|
|
|
$
|
56,076
|
|
|
$
|
62,674
|
|
|
$
|
75,228
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
|
20.97
|
|
|
16.20
|
|
|
8.97
|
|
|
8.83
|
|
|
7.96
|
|
|||||
Ratio of earnings to fixed charges and preferred dividends
|
|
20.97
|
|
|
16.20
|
|
|
8.97
|
|
|
8.13
|
|
|
6.87
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Subsidiary
|
Jurisdiction of Incorporation or Organization
|
East West Bank
|
California
|
E-W Services, Inc.
|
California
|
East West Bank (China) Limited
|
China
|
East-West Investment, Inc.
|
California
|
East West Capital Trust V
|
Delaware
|
East West Capital Trust VI
|
Delaware
|
East West Capital Trust VII
|
Delaware
|
East West Capital Trust VIII
|
Delaware
|
East West Capital Trust IX
|
Delaware
|
East West Insurance Services, Inc.
|
California
|
MCBI Statutory Trust I
|
Delaware
|
|
|
|
/s/ KPMG LLP
|
|
Los Angeles, California
|
|
February 27, 2017
|
|
|
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of East West Bancorp, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ DOMINIC NG
|
|
Dominic Ng
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of East West Bancorp, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ IRENE H. OH
|
|
Irene H. Oh
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
a.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
b.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ DOMINIC NG
|
|
Dominic Ng
|
|
Chairman and Chief Executive Officer
|
a.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
b.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ IRENE H. OH
|
|
Irene H. Oh
|
|
Executive Vice President and Chief Financial Officer
|