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Delaware
(State or other jurisdiction of incorporation or organization)
|
|
95-4703316
(I.R.S. Employer Identification No.)
|
135 North Los Robles Ave., 7th Floor, Pasadena, California
(Address of principal executive offices)
|
|
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
|
x
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Accelerated filer
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¨
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Emerging growth company
|
¨
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Non-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;
|
•
|
success and timing of the Company’s business strategies;
|
•
|
the Company’s ability to retain key officers and employees;
|
•
|
impact on the Company’s funding costs, net interest income and net interest margin due to changes in key variable market interest rates, competition, regulatory requirements and the Company’s product mix;
|
•
|
changes in the Company’s costs of operation, compliance and expansion;
|
•
|
the Company’s ability to adopt and successfully integrate new technologies into its business in a strategic manner;
|
•
|
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;
|
•
|
future credit quality and performance, including the Company’s expectations regarding future credit losses and allowance levels;
|
•
|
impact of adverse changes to the Company’s credit ratings from major credit rating agencies;
|
•
|
impact of adverse judgments or settlements in litigation;
|
•
|
changes in the commercial and consumer real estate markets;
|
•
|
changes in consumer spending and savings habits;
|
•
|
changes in the United States (“U.S.”) economy, including inflation, deflation, employment levels, rate of growth and general business conditions;
|
•
|
changes in government interest rate policies;
|
•
|
impact of benchmark interest rate reform in the U.S. that resulted in the Secured Overnight Financing Rate (“SOFR”) selected as the preferred alternative reference rate to the London Interbank Offered Rate (“LIBOR”);
|
•
|
impact of political developments, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions;
|
•
|
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 System (“Federal Reserve”), the Federal Deposit Insurance Corporation (“FDIC”), the Office of the Comptroller of the Currency (the “OCC”), 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;
|
•
|
impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) on the Company’s business, business practices, cost of operations and executive compensation;
|
•
|
heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers;
|
•
|
impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from the Company’s interactions with business partners, counterparties, service providers and other third parties;
|
•
|
impact of regulatory enforcement actions;
|
•
|
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 income tax laws and regulations and the impact of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”);
|
•
|
impact of other potential federal tax changes and spending cuts;
|
•
|
the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms;
|
•
|
changes in the Company’s ability to receive dividends from its subsidiaries;
|
•
|
any future strategic acquisitions or divestitures;
|
•
|
continuing consolidation in the financial services industry;
|
•
|
changes in the equity and debt securities markets;
|
•
|
fluctuations in the Company’s stock price;
|
•
|
fluctuations in foreign currency exchange rates;
|
•
|
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 increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment (“OTTI”) on securities held in the Company’s available-for-sale investment securities portfolio;
|
•
|
changes in the economy of and monetary policy in the People’s Republic of China; and
|
•
|
impact of natural or man-made disasters or calamities or conflicts or other events that may directly or indirectly result in a negative impact on the Company’s financial performance.
|
•
|
require periodic reports and such additional information as the Federal Reserve may require in its discretion;
|
•
|
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, including at times when bank holding companies may not be inclined to do so. 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 payment to and receipt of dividends or other distributions from its subsidiary banks;
|
•
|
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 serious risk to the financial safety, soundness or stability of the bank holding company; and if the activity, ownership, or control is inconsistent with the purposes of the BHC Act;
|
•
|
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; and
|
•
|
require the approval of acquisitions and mergers with banks and other financial companies, and consider certain competitive, management, financial, financial stability and other factors in granting these approvals. DBO approvals may also be required for certain acquisitions and mergers.
|
1.
|
Regulatory relief for bank holding companies with assets between $10 billion and $50 billion. We are among the bank holding companies in this range. The EGRRCPA lifts the current statutory requirement that these companies conduct various risk management activities, but the Federal Reserve will still examine our risk management for consistency with safety and soundness and prudent practices. The Dodd-Frank Act required us to conduct an annual prescribed scenario stress test to be submitted to the Federal Reserve. The EGRRCPA eliminated this required prescribed scenario stress test for companies between $10 billion and $50 billion in assets. This stress testing requirement also applied to the Bank. The EGRRCPA does not formally repeal this requirement for the Bank, but the Federal Reserve has indicated that it is likely to do so through regulation.
|
2.
|
Regulatory relief for community banks. Although this relief does not apply to the Bank, because of its asset size, it may improve the competitiveness of smaller banks. Banks with under $10 billion in assets are exempt from the Volcker Rule, and certain banks that meet a new Community Bank Leverage Ratio are exempt from other risk-based capital ratio and leverage ratio requirements.
|
3.
|
Regulatory relief for large banks. Our larger competitors also receive a degree of regulatory relief. Banks designated as global systemically important banks and banks with more than $250 billion in assets are still automatically subject to enhanced regulation. However, banks with between $100 billion and $250 billion in assets are automatically subject only to supervisory stress tests, while the Federal Reserve has discretion to apply other individual enhanced prudential provisions to these banks. Banks with assets between $50 billion and $100 billion will no longer be subject to enhanced regulation, except for the mandatory risk committee requirement. In addition, EGRRCPA relaxes leverage requirements for large custody banks and allows certain municipal bonds to be counted toward large banks’ liquidity requirements.
|
•
|
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 acts or practices, which the Dodd-Frank Act empowers the 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; and
|
•
|
the markets in which firms operate and risks to consumers posed by activities in those markets.
|
•
|
the process the Company uses to estimate losses inherent in the Company’s credit exposure requires difficult, subjective and complex judgments, including consideration of 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 of losses inherent in the Company’s credit exposure which may, in turn, adversely impact the Company’s operating results and financial conditions;
|
•
|
the Company’s commercial and residential borrowers may not be able to make timely repayments of their loans, or a decrease in the 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;
|
•
|
a decrease in deposit balances;
|
•
|
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;
|
•
|
the value of the available-for-sale investment securities portfolio that the Company holds may be adversely affected by defaults by debtors; and
|
•
|
a loss of confidence in the financial services industry, our market sector and the equity markets by investors, placing pressure on the Company’s stock price.
|
•
|
actual or anticipated quarterly fluctuations in the Company’s results of operations 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;
|
•
|
addition or departure of key personnel;
|
•
|
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;
|
•
|
cyclical fluctuations;
|
•
|
trading volume of the Company’s common stock; and
|
•
|
anticipated or pending investigations, proceedings or litigation that involve or affect the Company.
|
|
||||||||||||
|
|
December 31,
|
||||||||||
Index
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
East West Bancorp, Inc.
|
|
$100.00
|
|
$112.90
|
|
$123.60
|
|
$154.40
|
|
$187.40
|
|
$136.20
|
KRX
|
|
$100.00
|
|
$102.40
|
|
$108.50
|
|
$150.80
|
|
$153.40
|
|
$126.60
|
S&P 500 Index
|
|
$100.00
|
|
$113.70
|
|
$115.30
|
|
$129.00
|
|
$157.20
|
|
$150.30
|
|
|
|
|
Page
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|
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|
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|
||||||||||||||||||||
($ and shares in thousands, except per share data)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Summary of operations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
|
$
|
1,651,703
|
|
|
$
|
1,325,119
|
|
|
$
|
1,137,481
|
|
|
$
|
1,053,815
|
|
|
$
|
1,153,698
|
|
Interest expense
|
|
265,195
|
|
|
140,050
|
|
|
104,843
|
|
|
103,376
|
|
|
112,820
|
|
|||||
Net interest income before provision for credit losses
|
|
1,386,508
|
|
|
1,185,069
|
|
|
1,032,638
|
|
|
950,439
|
|
|
1,040,878
|
|
|||||
Provision for credit losses
|
|
64,255
|
|
|
46,266
|
|
|
27,479
|
|
|
14,217
|
|
|
49,158
|
|
|||||
Net interest income after provision for credit losses
|
|
1,322,253
|
|
|
1,138,803
|
|
|
1,005,159
|
|
|
936,222
|
|
|
991,720
|
|
|||||
Noninterest income (loss)
(1)
|
|
210,909
|
|
|
257,748
|
|
|
182,278
|
|
|
182,779
|
|
|
(12,183
|
)
|
|||||
Noninterest expense
|
|
714,466
|
|
|
661,451
|
|
|
615,249
|
|
|
540,280
|
|
|
532,514
|
|
|||||
Income before income taxes
|
|
818,696
|
|
|
735,100
|
|
|
572,188
|
|
|
578,721
|
|
|
447,023
|
|
|||||
Income tax expense
(2)
|
|
114,995
|
|
|
229,476
|
|
|
140,511
|
|
|
194,044
|
|
|
101,145
|
|
|||||
Net income
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
|
$
|
345,878
|
|
Per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings
|
|
$
|
4.86
|
|
|
$
|
3.50
|
|
|
$
|
3.00
|
|
|
$
|
2.67
|
|
|
$
|
2.42
|
|
Diluted earnings
|
|
$
|
4.81
|
|
|
$
|
3.47
|
|
|
$
|
2.97
|
|
|
$
|
2.66
|
|
|
$
|
2.41
|
|
Dividends declared
|
|
$
|
0.86
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
0.72
|
|
Book value
|
|
$
|
30.52
|
|
|
$
|
26.58
|
|
|
$
|
23.78
|
|
|
$
|
21.70
|
|
|
$
|
19.89
|
|
Weighted-average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
144,862
|
|
|
144,444
|
|
|
144,087
|
|
|
143,818
|
|
|
142,952
|
|
|||||
Diluted
|
|
146,169
|
|
|
145,913
|
|
|
145,172
|
|
|
144,512
|
|
|
143,563
|
|
|||||
Common shares outstanding at period-end
|
|
144,961
|
|
|
144,543
|
|
|
144,167
|
|
|
143,909
|
|
|
143,582
|
|
|||||
At year end:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
41,042,356
|
|
|
$
|
37,121,563
|
|
|
$
|
34,788,840
|
|
|
$
|
32,350,922
|
|
|
$
|
28,743,592
|
|
Total loans
|
|
$
|
32,385,464
|
|
|
$
|
29,053,935
|
|
|
$
|
25,526,215
|
|
|
$
|
23,675,706
|
|
|
$
|
21,775,899
|
|
Available-for-sale investment securities
|
|
$
|
2,741,847
|
|
|
$
|
3,016,752
|
|
|
$
|
3,335,795
|
|
|
$
|
3,773,226
|
|
|
$
|
2,626,617
|
|
Total deposits, excluding held-for-sale deposits
|
|
$
|
35,439,628
|
|
|
$
|
31,615,063
|
|
|
$
|
29,890,983
|
|
|
$
|
27,475,981
|
|
|
$
|
24,008,774
|
|
Long-term debt
|
|
$
|
146,835
|
|
|
$
|
171,577
|
|
|
$
|
186,327
|
|
|
$
|
206,084
|
|
|
$
|
225,848
|
|
FHLB advances
|
|
$
|
326,172
|
|
|
$
|
323,891
|
|
|
$
|
321,643
|
|
|
$
|
1,019,424
|
|
|
$
|
317,241
|
|
Stockholders’ equity
|
|
$
|
4,423,974
|
|
|
$
|
3,841,951
|
|
|
$
|
3,427,741
|
|
|
$
|
3,122,950
|
|
|
$
|
2,856,111
|
|
Performance metrics:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
1.83
|
%
|
|
1.41
|
%
|
|
1.30
|
%
|
|
1.27
|
%
|
|
1.25
|
%
|
|||||
Return on average equity
|
|
17.04
|
%
|
|
13.71
|
%
|
|
13.06
|
%
|
|
12.74
|
%
|
|
12.72
|
%
|
|||||
Net interest margin
|
|
3.78
|
%
|
|
3.48
|
%
|
|
3.30
|
%
|
|
3.35
|
%
|
|
4.03
|
%
|
|||||
Efficiency ratio
|
|
44.73
|
%
|
|
45.84
|
%
|
|
50.64
|
%
|
|
47.68
|
%
|
|
51.77
|
%
|
|||||
Credit quality metrics:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
|
$
|
311,322
|
|
|
$
|
287,128
|
|
|
$
|
260,520
|
|
|
$
|
264,959
|
|
|
$
|
261,679
|
|
Allowance for loan losses to loans held-for-investment
(3)
|
|
0.96
|
%
|
|
0.99
|
%
|
|
1.02
|
%
|
|
1.12
|
%
|
|
1.20
|
%
|
|||||
Non-PCI nonperforming assets to total assets
(3)
|
|
0.23
|
%
|
|
0.31
|
%
|
|
0.37
|
%
|
|
0.40
|
%
|
|
0.46
|
%
|
|||||
Annual net charge-offs to average loans held-for-investment
|
|
0.13
|
%
|
|
0.08
|
%
|
|
0.15
|
%
|
|
0.01
|
%
|
|
0.18
|
%
|
|||||
Selected metrics:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total average equity to total average assets
|
|
10.72
|
%
|
|
10.30
|
%
|
|
9.97
|
%
|
|
9.95
|
%
|
|
9.83
|
%
|
|||||
Common dividend payout ratio
|
|
17.90
|
%
|
|
23.14
|
%
|
|
27.01
|
%
|
|
30.21
|
%
|
|
30.07
|
%
|
|||||
Loan-to-deposit ratio
|
|
91.38
|
%
|
|
90.17
|
%
|
|
85.40
|
%
|
|
86.17
|
%
|
|
90.70
|
%
|
|||||
Capital ratios of EWBC
(4)
:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total capital
|
|
13.7
|
%
|
|
12.9
|
%
|
|
12.4
|
%
|
|
12.2
|
%
|
|
12.6
|
%
|
|||||
Tier 1 capital
|
|
12.2
|
%
|
|
11.4
|
%
|
|
10.9
|
%
|
|
10.7
|
%
|
|
11.0
|
%
|
|||||
CET1 capital
|
|
12.2
|
%
|
|
11.4
|
%
|
|
10.9
|
%
|
|
10.5
|
%
|
|
N/A
|
|
|||||
Tier 1 leverage capital
|
|
9.9
|
%
|
|
9.2
|
%
|
|
8.7
|
%
|
|
8.5
|
%
|
|
8.4
|
%
|
|||||
|
(1)
|
Includes
$31.5 million
of pretax gain recognized from the sale of the DCB branches for
2018
. Includes
$71.7 million
and
$3.8 million
of pretax gains recognized from the sales of a commercial property in California and EWIS’s insurance brokerage business, respectively, for
2017
. Includes changes in FDIC indemnification asset and receivable/payable charges of
$38.0 million
and
$201.4 million
for
2015
and
2014
, respectively. The Company terminated the United Commercial Bank and Washington First International Bank shared-loss agreements during
2015
.
|
(2)
|
Includes an additional
$41.7 million
in income tax expense recognized during
2017
due to the enactment of the Tax Act.
|
(3)
|
Total assets and loans held-for-investment include purchased credit-impaired (“PCI”) loans of
$308.0 million
,
$482.3 million
,
$642.4 million
,
$970.8 million
and
$1.32 billion
as of
December 31, 2018
,
2017
,
2016
,
2015
and
2014
, respectively.
|
(4)
|
Capital ratios are calculated under the Basel III Capital Rules which became effective on January 1, 2015. Prior to this date, the ratios were calculated under the Basel I Capital Rules. The CET1 capital ratio was introduced under the Basel III Capital Rules.
|
•
|
Earnings
: Full year
2018
net income of
$703.7 million
and diluted EPS of
$4.81
both increased
39%
, compared to full year
2017
net income of
$505.6 million
and diluted EPS of
$3.47
. Strong returns on average assets and average equity during
2018
reflected our ability to expand profitability while growing the loan and deposit base. Return on average assets increased
42
basis points to
1.83%
in
2018
, compared to 1.41% in
2017
. Return on average equity increased
333
basis points to
17.04%
in
2018
, compared to 13.71% in
2017
.
|
•
|
Adjusted Earnings:
Excluding the impact of the after-tax gain on the sale of the DCB branches recognized in
2018
, and the impacts of the Tax Act and after-tax gains on the sales of the commercial property and EWIS insurance brokerage business recognized in
2017
, non-GAAP full year diluted EPS was $4.66 in 2018, an increase of $1.20 or 35% from $3.46 in
2017
. Non-GAAP return on average assets was
1.77%
in
2018
, a
36
basis point
increase
from 1.41% in
2017
, while non-GAAP return on average equity was
16.50%
in
2018
, a
284
basis point
increase
from 13.66% in
2017
. (See reconciliations of non-GAAP measures used below under
Item 7. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures
.)
|
•
|
Net Interest Income Growth and Net Interest Margin Expansion:
Full year
2018
net interest income was
$1.39 billion
, an increase of
$201.4 million
or
17%
year-over-year. Full year
2018
net interest margin of
3.78%
expanded by
30
basis points, compared to full year
2017
net interest margin of
3.48%
. Net interest income growth primarily reflected loan yield expansion and loan growth, partially offset by an increase in the cost of funds.
|
•
|
Record Loans:
Total loans were
$32.39 billion
as of
December 31, 2018
, an increase of
$3.33 billion
or
11%
from
$29.05 billion
as of
December 31, 2017
. The largest increase in loans was in single-family residential loans, followed by commercial and industrial (“C&I”) loans.
|
•
|
Record Deposits:
Total deposits were
$35.44 billion
as of
December 31, 2018
, an increase of
$3.82 billion
or
12%
from
$31.62 billion
(1)
as of
December 31, 2017
. The sequential growth was largely from an increase in time deposits, followed by noninterest-bearing demand deposits.
|
•
|
Asset Quality Metrics:
The allowance for loan losses was
$311.3 million
or
0.96%
of loans held-for-investment as of
December 31, 2018
, compared to
$287.1 million
or
0.99%
of loans held-for-investment as of
December 31, 2017
. Net charge-offs were
0.13%
and
0.08%
of average loans held-for-investment for
2018
and
2017
, respectively. Non-PCI performing assets decreased 19% to
$93.0 million
or
0.23%
of total assets as of
December 31, 2018
from
$115.1 million
or
0.31%
of total assets as of
December 31, 2017
.
|
•
|
Capital Levels:
Our capital levels remained strong in
2018
. As of
December 31, 2018
, stockholders’ equity of
$4.42 billion
increased
$582.0 million
or
15%
, compared to
$3.84 billion
as of
December 31, 2017
. We returned
$126.0 million
and
$116.8 million
in cash dividends to our stockholders during
2018
and
2017
, respectively. The CET1 capital ratio was
12.2%
as of
December 31, 2018
, compared to
11.4%
as of
December 31, 2017
. The total risk-based capital ratio was
13.7%
and
12.9%
as of
December 31, 2018
and
2017
, respectively. Our other regulatory capital ratios remained well above required minimum levels. See
Item 7. MD&A — Regulatory Capital and Ratios
for more information regarding our capital.
|
•
|
Cash Dividend:
We increased our quarterly common stock dividend by 15% to $0.23 per share from $0.20 per share in the third quarter of
2018
.
|
•
|
Operating Efficiency:
Efficiency ratio, calculated as noninterest expense divided by the sum of net interest income before provision for credit losses and noninterest income, was
44.73%
in
2018
, an improvement of 111 basis points compared to
45.84%
in
2017
. The improvement in the efficiency ratio reflects revenue growth, driven by net interest income growth, exceeding noninterest expense growth during
2018
.
|
•
|
Tax:
Our full year
2018
effective tax rate was
14.0%
, resulting in tax expense of
$115.0 million
, compared to an effective tax rate of
31.2%
and tax expense of
$229.5 million
for the full year
2017
. The income tax rate for
2018
was positively impacted by the decrease in the corporate federal income tax rate to 21% from 35%, effective January 1, 2018.
|
|
|
|
|
|
(1
|
)
|
|
Excludes $605.1 million of branch liability held-for-sale as of December 31, 2017.
|
|
|||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||||||||||||
|
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
|
|
$
|
2,609,463
|
|
|
$
|
54,804
|
|
|
2.10
|
%
|
|
$
|
2,242,256
|
|
|
$
|
33,390
|
|
|
1.49
|
%
|
|
$
|
1,893,064
|
|
|
$
|
14,731
|
|
|
0.78
|
%
|
Resale agreements
(1)
|
|
1,020,822
|
|
|
29,328
|
|
|
2.87
|
%
|
|
1,438,767
|
|
|
32,095
|
|
|
2.23
|
%
|
|
1,708,470
|
|
|
30,547
|
|
|
1.79
|
%
|
||||||
Investment securities
(2)(3)
|
|
2,773,152
|
|
|
60,911
|
|
|
2.20
|
%
|
|
3,026,693
|
|
|
58,670
|
|
|
1.94
|
%
|
|
3,355,086
|
|
|
53,399
|
|
|
1.59
|
%
|
||||||
Loans
(4)(5)
|
|
30,230,014
|
|
|
1,503,514
|
|
|
4.97
|
%
|
|
27,252,756
|
|
|
1,198,440
|
|
|
4.40
|
%
|
|
24,264,895
|
|
|
1,035,377
|
|
|
4.27
|
%
|
||||||
Restricted equity securities
|
|
73,691
|
|
|
3,146
|
|
|
4.27
|
%
|
|
73,593
|
|
|
2,524
|
|
|
3.43
|
%
|
|
75,260
|
|
|
3,427
|
|
|
4.55
|
%
|
||||||
Total interest-earning assets
|
|
$
|
36,707,142
|
|
|
$
|
1,651,703
|
|
|
4.50
|
%
|
|
$
|
34,034,065
|
|
|
$
|
1,325,119
|
|
|
3.89
|
%
|
|
$
|
31,296,775
|
|
|
$
|
1,137,481
|
|
|
3.63
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and due from banks
|
|
445,768
|
|
|
|
|
|
|
395,092
|
|
|
|
|
|
|
365,104
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
(298,600
|
)
|
|
|
|
|
|
(272,765
|
)
|
|
|
|
|
|
(262,804
|
)
|
|
|
|
|
||||||||||||
Other assets
|
|
1,688,259
|
|
|
|
|
|
|
1,631,221
|
|
|
|
|
|
|
1,770,298
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
38,542,569
|
|
|
|
|
|
|
$
|
35,787,613
|
|
|
|
|
|
|
$
|
33,169,373
|
|
|
|
|
|
|||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Checking deposits
(6)
|
|
$
|
4,477,793
|
|
|
$
|
34,657
|
|
|
0.77
|
%
|
|
$
|
3,951,930
|
|
|
$
|
18,305
|
|
|
0.46
|
%
|
|
$
|
3,495,094
|
|
|
$
|
12,640
|
|
|
0.36
|
%
|
Money market deposits
(6)
|
|
7,985,526
|
|
|
83,696
|
|
|
1.05
|
%
|
|
8,026,347
|
|
|
44,181
|
|
|
0.55
|
%
|
|
7,679,695
|
|
|
27,094
|
|
|
0.35
|
%
|
||||||
Saving deposits
(6)
|
|
2,245,644
|
|
|
8,621
|
|
|
0.38
|
%
|
|
2,369,398
|
|
|
6,431
|
|
|
0.27
|
%
|
|
2,104,060
|
|
|
4,719
|
|
|
0.22
|
%
|
||||||
Time deposits
(6)
|
|
7,431,749
|
|
|
107,778
|
|
|
1.45
|
%
|
|
5,838,382
|
|
|
47,474
|
|
|
0.81
|
%
|
|
5,852,042
|
|
|
39,771
|
|
|
0.68
|
%
|
||||||
Federal funds purchased and other short-term borrowings
|
|
32,222
|
|
|
1,398
|
|
|
4.34
|
%
|
|
34,546
|
|
|
1,003
|
|
|
2.90
|
%
|
|
25,591
|
|
|
713
|
|
|
2.79
|
%
|
||||||
FHLB advances
|
|
327,435
|
|
|
10,447
|
|
|
3.19
|
%
|
|
391,480
|
|
|
7,751
|
|
|
1.98
|
%
|
|
380,868
|
|
|
5,585
|
|
|
1.47
|
%
|
||||||
Repurchase agreements
(1)
|
|
50,000
|
|
|
12,110
|
|
|
24.22
|
%
|
|
140,000
|
|
|
9,476
|
|
|
6.77
|
%
|
|
211,475
|
|
|
9,304
|
|
|
4.40
|
%
|
||||||
Long-term debt
|
|
159,185
|
|
|
6,488
|
|
|
4.08
|
%
|
|
178,882
|
|
|
5,429
|
|
|
3.03
|
%
|
|
198,589
|
|
|
5,017
|
|
|
2.53
|
%
|
||||||
Total interest-bearing liabilities
|
|
$
|
22,709,554
|
|
|
$
|
265,195
|
|
|
1.17
|
%
|
|
$
|
20,930,965
|
|
|
$
|
140,050
|
|
|
0.67
|
%
|
|
$
|
19,947,414
|
|
|
$
|
104,843
|
|
|
0.53
|
%
|
Noninterest-bearing liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
(6)
|
|
11,089,537
|
|
|
|
|
|
|
10,627,718
|
|
|
|
|
|
|
9,371,481
|
|
|
|
|
|
||||||||||||
Accrued expenses and other liabilities
|
|
612,656
|
|
|
|
|
|
|
541,717
|
|
|
|
|
|
|
544,549
|
|
|
|
|
|
||||||||||||
Stockholders’ equity
|
|
4,130,822
|
|
|
|
|
|
|
3,687,213
|
|
|
|
|
|
|
3,305,929
|
|
|
|
|
|
||||||||||||
Total liabilities and stockholders’ equity
|
|
$
|
38,542,569
|
|
|
|
|
|
|
$
|
35,787,613
|
|
|
|
|
|
|
$
|
33,169,373
|
|
|
|
|
|
|||||||||
Interest rate spread
|
|
|
|
|
|
3.33
|
%
|
|
|
|
|
|
3.22
|
%
|
|
|
|
|
|
3.10
|
%
|
||||||||||||
Net interest income and net interest margin
|
|
|
|
$
|
1,386,508
|
|
|
3.78
|
%
|
|
|
|
$
|
1,185,069
|
|
|
3.48
|
%
|
|
|
|
$
|
1,032,638
|
|
|
3.30
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Average balances of resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11,
Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements
. The weighted-average yields of gross resale agreements were
2.63%
,
2.19%
and
1.78%
for
2018
,
2017
and
2016
, respectively. The weighted-average interest rates of gross repurchase agreements were
4.46%
,
3.48%
and
2.97%
for
2018
,
2017
and
2016
, respectively.
|
(2)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
(3)
|
Includes the amortization of premiums on investment securities of
$16.1 million
,
$21.2 million
and
$26.2 million
for
2018
,
2017
and
2016
, respectively.
|
(4)
|
Average balances include nonperforming loans and loans held-for-sale.
|
(5)
|
Includes the accretion of net deferred loan fees, unearned fees, ASC 310-30 discounts and amortization of premiums, which totaled
$39.2 million
,
$30.8 million
and
$53.5 million
for
2018
,
2017
and
2016
, respectively.
|
(6)
|
Average balance of deposits for
2018
and
2017
includes average deposits held-for-sale related to the sale of the DCB branches.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2018 vs. 2017
|
|
2017 vs. 2016
|
|||||||||||||||||||||
|
Total
Change
|
|
Changes Due to
|
|
Total
Change
|
|
Changes Due to
|
|||||||||||||||||
|
|
Volume
|
|
Yield/Rate
|
|
|
Volume
|
|
Yield/Rate
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
21,414
|
|
|
$
|
6,108
|
|
|
$
|
15,306
|
|
|
$
|
18,659
|
|
|
$
|
3,134
|
|
|
$
|
15,525
|
|
Resale agreements
|
|
(2,767
|
)
|
|
(10,671
|
)
|
|
7,904
|
|
|
1,548
|
|
|
(5,287
|
)
|
|
6,835
|
|
||||||
Investment securities
|
|
2,241
|
|
|
(5,167
|
)
|
|
7,408
|
|
|
5,271
|
|
|
(5,580
|
)
|
|
10,851
|
|
||||||
Loans
|
|
305,074
|
|
|
138,724
|
|
|
166,350
|
|
|
163,063
|
|
|
130,282
|
|
|
32,781
|
|
||||||
Restricted equity securities
|
|
622
|
|
|
3
|
|
|
619
|
|
|
(903
|
)
|
|
(74
|
)
|
|
(829
|
)
|
||||||
Total interest and dividend income
|
|
$
|
326,584
|
|
|
$
|
128,997
|
|
|
$
|
197,587
|
|
|
$
|
187,638
|
|
|
$
|
122,475
|
|
|
$
|
65,163
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Checking deposits
|
|
$
|
16,352
|
|
|
$
|
2,706
|
|
|
$
|
13,646
|
|
|
$
|
5,665
|
|
|
$
|
1,800
|
|
|
$
|
3,865
|
|
Money market deposits
|
|
39,515
|
|
|
(226
|
)
|
|
39,741
|
|
|
17,087
|
|
|
1,274
|
|
|
15,813
|
|
||||||
Saving deposits
|
|
2,190
|
|
|
(351
|
)
|
|
2,541
|
|
|
1,712
|
|
|
642
|
|
|
1,070
|
|
||||||
Time deposits
|
|
60,304
|
|
|
15,579
|
|
|
44,725
|
|
|
7,703
|
|
|
(93
|
)
|
|
7,796
|
|
||||||
Federal funds purchased and other short-term borrowings
|
|
395
|
|
|
(71
|
)
|
|
466
|
|
|
290
|
|
|
259
|
|
|
31
|
|
||||||
FHLB advances
|
|
2,696
|
|
|
(1,432
|
)
|
|
4,128
|
|
|
2,166
|
|
|
160
|
|
|
2,006
|
|
||||||
Repurchase agreements
|
|
2,634
|
|
|
(9,226
|
)
|
|
11,860
|
|
|
172
|
|
|
(3,796
|
)
|
|
3,968
|
|
||||||
Long-term debt
|
|
1,059
|
|
|
(648
|
)
|
|
1,707
|
|
|
412
|
|
|
(531
|
)
|
|
943
|
|
||||||
Total interest expense
|
|
$
|
125,145
|
|
|
$
|
6,331
|
|
|
$
|
118,814
|
|
|
$
|
35,207
|
|
|
$
|
(285
|
)
|
|
$
|
35,492
|
|
Change in net interest income
|
|
$
|
201,439
|
|
|
$
|
122,666
|
|
|
$
|
78,773
|
|
|
$
|
152,431
|
|
|
$
|
122,760
|
|
|
$
|
29,671
|
|
|
|
||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
% Change
|
|
2017 vs. 2016
% Change
|
|||||||||
Branch fees
|
|
$
|
39,859
|
|
|
$
|
40,925
|
|
|
$
|
39,654
|
|
|
(3
|
)%
|
|
3
|
%
|
Letters of credit fees and foreign exchange income
|
|
56,282
|
|
|
44,344
|
|
|
47,284
|
|
|
27
|
%
|
|
(6
|
)%
|
|||
Ancillary loan fees and other income
|
|
24,052
|
|
|
23,333
|
|
|
19,352
|
|
|
3
|
%
|
|
21
|
%
|
|||
Wealth management fees
|
|
13,785
|
|
|
13,974
|
|
|
12,600
|
|
|
(1
|
)%
|
|
11
|
%
|
|||
Derivative fees and other income
|
|
18,980
|
|
|
17,671
|
|
|
16,781
|
|
|
7
|
%
|
|
5
|
%
|
|||
Net gains on sales of loans
|
|
6,590
|
|
|
8,870
|
|
|
6,085
|
|
|
(26
|
)%
|
|
46
|
%
|
|||
Net gains on sales of available-for-sale investment securities
|
|
2,535
|
|
|
8,037
|
|
|
10,362
|
|
|
(68
|
)%
|
|
(22
|
)%
|
|||
Net gains on sales of fixed assets
|
|
6,683
|
|
|
77,388
|
|
|
3,178
|
|
|
(91
|
)%
|
|
NM
|
|
|||
Net gain on sale of business
|
|
31,470
|
|
|
3,807
|
|
|
—
|
|
|
NM
|
|
|
100
|
%
|
|||
Other fees and operating income
|
|
10,673
|
|
|
19,399
|
|
|
26,982
|
|
|
(45
|
)%
|
|
(28
|
)%
|
|||
Total noninterest income
|
|
$
|
210,909
|
|
|
$
|
257,748
|
|
|
$
|
182,278
|
|
|
(18
|
)%
|
|
41
|
%
|
|
|
||||||||||||||||||
|
|
Year Ended December 31,
|
||||||||||||||||
($ in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
% Change
|
|
2017 vs. 2016
% Change
|
||||||||
Compensation and employee benefits
|
|
$
|
379,622
|
|
|
$
|
335,291
|
|
|
$
|
300,115
|
|
|
13
|
%
|
|
12
|
%
|
Occupancy and equipment expense
|
|
68,896
|
|
|
64,921
|
|
|
61,453
|
|
|
6
|
%
|
|
6
|
%
|
|||
Deposit insurance premiums and regulatory assessments
|
|
21,211
|
|
|
23,735
|
|
|
23,279
|
|
|
(11
|
)%
|
|
2
|
%
|
|||
Legal expense
|
|
8,781
|
|
|
11,444
|
|
|
2,841
|
|
|
(23
|
)%
|
|
303
|
%
|
|||
Data processing
|
|
13,177
|
|
|
12,093
|
|
|
11,683
|
|
|
9
|
%
|
|
4
|
%
|
|||
Consulting expense
|
|
11,579
|
|
|
14,922
|
|
|
22,742
|
|
|
(22
|
)%
|
|
(34
|
)%
|
|||
Deposit related expense
|
|
11,244
|
|
|
9,938
|
|
|
10,394
|
|
|
13
|
%
|
|
(4
|
)%
|
|||
Computer software expense
|
|
22,286
|
|
|
18,183
|
|
|
12,914
|
|
|
23
|
%
|
|
41
|
%
|
|||
Other operating expense
|
|
88,042
|
|
|
82,974
|
|
|
86,382
|
|
|
6
|
%
|
|
(4
|
)%
|
|||
Amortization of tax credit and other investments
|
|
89,628
|
|
|
87,950
|
|
|
83,446
|
|
|
2
|
%
|
|
5
|
%
|
|||
Total noninterest expense
|
|
$
|
714,466
|
|
|
$
|
661,451
|
|
|
$
|
615,249
|
|
|
8
|
%
|
|
8
|
%
|
|
|
||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
% Change
|
|
2017 vs. 2016
% Change
|
|||||||||
Income before income taxes
|
|
$
|
818,696
|
|
|
$
|
735,100
|
|
|
$
|
572,188
|
|
|
11
|
%
|
|
28
|
%
|
Income tax expense
|
|
$
|
114,995
|
|
|
$
|
229,476
|
|
|
$
|
140,511
|
|
|
(50
|
)%
|
|
63
|
%
|
Effective tax rate
|
|
14.0
|
%
|
|
31.2
|
%
|
|
24.6
|
%
|
|
(17
|
)%
|
|
7
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income
|
|
$
|
727,215
|
|
|
$
|
605,650
|
|
|
$
|
53,643
|
|
|
$
|
1,386,508
|
|
Noninterest income
|
|
$
|
85,607
|
|
|
$
|
110,287
|
|
|
$
|
15,015
|
|
|
$
|
210,909
|
|
Noninterest expense
|
|
$
|
336,412
|
|
|
$
|
228,627
|
|
|
$
|
149,427
|
|
|
$
|
714,466
|
|
Segment income (loss) before income taxes
|
|
$
|
467,046
|
|
|
$
|
432,419
|
|
|
$
|
(80,769
|
)
|
|
$
|
818,696
|
|
Segment net income
|
|
$
|
334,255
|
|
|
$
|
309,926
|
|
|
$
|
59,520
|
|
|
$
|
703,701
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income
|
|
$
|
590,821
|
|
|
$
|
553,817
|
|
|
$
|
40,431
|
|
|
$
|
1,185,069
|
|
Noninterest income
|
|
$
|
54,451
|
|
|
$
|
110,089
|
|
|
$
|
93,208
|
|
|
$
|
257,748
|
|
Noninterest expense
|
|
$
|
319,645
|
|
|
$
|
193,161
|
|
|
$
|
148,645
|
|
|
$
|
661,451
|
|
Segment income (loss) before income taxes
|
|
$
|
323,815
|
|
|
$
|
426,291
|
|
|
$
|
(15,006
|
)
|
|
$
|
735,100
|
|
Segment net income
|
|
$
|
190,404
|
|
|
$
|
251,834
|
|
|
$
|
63,386
|
|
|
$
|
505,624
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2016
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income
|
|
$
|
459,442
|
|
|
$
|
530,908
|
|
|
$
|
42,288
|
|
|
$
|
1,032,638
|
|
Noninterest income
|
|
$
|
51,251
|
|
|
$
|
95,556
|
|
|
$
|
35,471
|
|
|
$
|
182,278
|
|
Noninterest expense
|
|
$
|
306,386
|
|
|
$
|
171,805
|
|
|
$
|
137,058
|
|
|
$
|
615,249
|
|
Segment income (loss) before income taxes
|
|
$
|
208,663
|
|
|
$
|
422,824
|
|
|
$
|
(59,299
|
)
|
|
$
|
572,188
|
|
Segment net income
|
|
$
|
122,256
|
|
|
$
|
248,474
|
|
|
$
|
60,947
|
|
|
$
|
431,677
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
December 31,
|
|
Change
|
|||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
|
$
|
3,001,377
|
|
|
$
|
2,174,592
|
|
|
$
|
826,785
|
|
|
38
|
%
|
Interest-bearing deposits with banks
|
|
371,000
|
|
|
398,422
|
|
|
(27,422
|
)
|
|
(7
|
)%
|
|||
Resale agreements
|
|
1,035,000
|
|
|
1,050,000
|
|
|
(15,000
|
)
|
|
(1
|
)%
|
|||
Available-for-sale investment securities, at fair value
|
|
2,741,847
|
|
|
3,016,752
|
|
|
(274,905
|
)
|
|
(9
|
)%
|
|||
Restricted equity securities, at cost
|
|
74,069
|
|
|
73,521
|
|
|
548
|
|
|
1
|
%
|
|||
Loans held-for-sale
|
|
275
|
|
|
85
|
|
|
190
|
|
|
224
|
%
|
|||
Loans held-for-investment (net of allowance for loan losses of $311,322 in 2018 and $287,128 in 2017)
|
|
32,073,867
|
|
|
28,688,590
|
|
|
3,385,277
|
|
|
12
|
%
|
|||
Investments in qualified affordable housing partnerships, net
|
|
184,873
|
|
|
162,824
|
|
|
22,049
|
|
|
14
|
%
|
|||
Investments in tax credit and other investments, net
|
|
231,635
|
|
|
224,551
|
|
|
7,084
|
|
|
3
|
%
|
|||
Premises and equipment
|
|
119,180
|
|
|
121,209
|
|
|
(2,029
|
)
|
|
(2
|
)%
|
|||
Goodwill
|
|
465,547
|
|
|
469,433
|
|
|
(3,886
|
)
|
|
(1
|
)%
|
|||
Branch assets held-for-sale
|
|
—
|
|
|
91,318
|
|
|
(91,318
|
)
|
|
(100
|
)%
|
|||
Other assets
|
|
743,686
|
|
|
650,266
|
|
|
93,420
|
|
|
14
|
%
|
|||
TOTAL
|
|
$
|
41,042,356
|
|
|
$
|
37,121,563
|
|
|
$
|
3,920,793
|
|
|
11
|
%
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing
|
|
$
|
11,377,009
|
|
|
$
|
10,887,306
|
|
|
$
|
489,703
|
|
|
4
|
%
|
Interest-bearing
|
|
24,062,619
|
|
|
20,727,757
|
|
|
3,334,862
|
|
|
16
|
%
|
|||
Total deposits
|
|
35,439,628
|
|
|
31,615,063
|
|
|
3,824,565
|
|
|
12
|
%
|
|||
Branch liability held-for-sale
|
|
—
|
|
|
605,111
|
|
|
(605,111
|
)
|
|
(100
|
)%
|
|||
Short-term borrowings
|
|
57,638
|
|
|
—
|
|
|
57,638
|
|
|
100
|
%
|
|||
FHLB advances
|
|
326,172
|
|
|
323,891
|
|
|
2,281
|
|
|
1
|
%
|
|||
Repurchase agreements
|
|
50,000
|
|
|
50,000
|
|
|
—
|
|
|
—
|
%
|
|||
Long-term debt
|
|
146,835
|
|
|
171,577
|
|
|
(24,742
|
)
|
|
(14
|
)%
|
|||
Accrued expenses and other liabilities
|
|
598,109
|
|
|
513,970
|
|
|
84,139
|
|
|
16
|
%
|
|||
Total liabilities
|
|
36,618,382
|
|
|
33,279,612
|
|
|
3,338,770
|
|
|
10
|
%
|
|||
STOCKHOLDERS’ EQUITY
|
|
4,423,974
|
|
|
3,841,951
|
|
|
582,023
|
|
|
15
|
%
|
|||
TOTAL
|
|
$
|
41,042,356
|
|
|
$
|
37,121,563
|
|
|
$
|
3,920,793
|
|
|
11
|
%
|
|
•
|
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, prepayment speeds, or deposit balances and mix; and
|
•
|
collateral to support pledging agreements as required and/or to enhance the Company’s borrowing capacity.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
577,561
|
|
|
$
|
564,815
|
|
|
$
|
651,395
|
|
|
$
|
640,280
|
|
|
$
|
730,287
|
|
|
$
|
720,479
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
219,485
|
|
|
217,173
|
|
|
206,815
|
|
|
203,392
|
|
|
277,891
|
|
|
274,866
|
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
1,377,705
|
|
|
1,355,296
|
|
|
1,528,217
|
|
|
1,509,228
|
|
|
1,539,044
|
|
|
1,525,546
|
|
||||||
Municipal securities
|
|
82,965
|
|
|
82,020
|
|
|
99,636
|
|
|
99,982
|
|
|
148,302
|
|
|
147,654
|
|
||||||
Non-agency mortgage-backed securities
|
|
35,935
|
|
|
35,983
|
|
|
9,136
|
|
|
9,117
|
|
|
11,592
|
|
|
11,477
|
|
||||||
Corporate debt securities
|
|
11,250
|
|
|
10,869
|
|
|
37,585
|
|
|
37,003
|
|
|
232,381
|
|
|
231,550
|
|
||||||
Foreign bonds
(1)
|
|
489,378
|
|
|
463,048
|
|
|
505,396
|
|
|
486,408
|
|
|
405,443
|
|
|
383,894
|
|
||||||
Asset-backed securities
|
|
12,621
|
|
|
12,643
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other securities
(2)
|
|
—
|
|
|
—
|
|
|
31,887
|
|
|
31,342
|
|
|
40,501
|
|
|
40,329
|
|
||||||
Total available-for-sale investment securities
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
$
|
3,070,067
|
|
|
$
|
3,016,752
|
|
|
$
|
3,385,441
|
|
|
$
|
3,335,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
There were no securities of a single issuer other than International Bank for Reconstruction and Development that exceeded 10% of stockholders’ equity, with an amortized cost of
$474.9 million
and a fair value of
$448.6 million
as of
December 31, 2018
.
|
(2)
|
Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01,
Financial Instruments — Overall
(Subtopic 825-10)
: Recognition and Measurement of Financial Assets and Financial Liabilities,
these securities were reported as available-for-sale investment securities with changes in fair value recorded in other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from
Available-for-sale investment securities, at fair value
to
Investments in tax credit and other investments, net
, on the Consolidated Balance Sheet with changes in fair value recorded in net income.
|
|
||||||||||||||||||||||
|
|
December 31,
|
||||||||||||||||||||
($ in thousands)
|
|
2018
|
|
2017
|
||||||||||||||||||
|
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
|
|
$
|
50,134
|
|
|
$
|
49,773
|
|
|
1.08
|
%
|
|
$
|
120,233
|
|
|
$
|
119,844
|
|
|
1.01
|
%
|
Maturing after one year through five years
|
|
527,427
|
|
|
515,042
|
|
|
1.69
|
%
|
|
531,162
|
|
|
520,436
|
|
|
1.55
|
%
|
||||
Total
|
|
577,561
|
|
|
564,815
|
|
|
1.64
|
%
|
|
651,395
|
|
|
640,280
|
|
|
1.45
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
26,955
|
|
|
26,909
|
|
|
3.51
|
%
|
|
24,999
|
|
|
24,882
|
|
|
1.02
|
%
|
||||
Maturing after one year through five years
|
|
10,181
|
|
|
10,037
|
|
|
2.18
|
%
|
|
9,720
|
|
|
9,743
|
|
|
2.36
|
%
|
||||
Maturing after five years through ten years
|
|
114,771
|
|
|
113,812
|
|
|
2.30
|
%
|
|
119,645
|
|
|
116,570
|
|
|
2.05
|
%
|
||||
Maturing after ten years
|
|
67,578
|
|
|
66,415
|
|
|
2.79
|
%
|
|
52,451
|
|
|
52,197
|
|
|
2.58
|
%
|
||||
Total
|
|
219,485
|
|
|
217,173
|
|
|
2.59
|
%
|
|
206,815
|
|
|
203,392
|
|
|
2.07
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
2,633
|
|
|
2,600
|
|
|
1.62
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Maturing after one year through five years
|
|
30,808
|
|
|
30,487
|
|
|
2.11
|
%
|
|
48,363
|
|
|
47,811
|
|
|
2.34
|
%
|
||||
Maturing after five years through ten years
|
|
96,822
|
|
|
95,365
|
|
|
2.68
|
%
|
|
71,562
|
|
|
70,507
|
|
|
2.48
|
%
|
||||
Maturing after ten years
|
|
1,247,442
|
|
|
1,226,844
|
|
|
2.74
|
%
|
|
1,408,292
|
|
|
1,390,910
|
|
|
2.31
|
%
|
||||
Total
|
|
1,377,705
|
|
|
1,355,296
|
|
|
2.72
|
%
|
|
1,528,217
|
|
|
1,509,228
|
|
|
2.32
|
%
|
||||
Municipal securities
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
29,167
|
|
|
28,974
|
|
|
2.60
|
%
|
|
7,395
|
|
|
7,424
|
|
|
2.69
|
%
|
||||
Maturing after one year through five years
|
|
48,398
|
|
|
47,681
|
|
|
2.39
|
%
|
|
83,104
|
|
|
83,301
|
|
|
2.31
|
%
|
||||
Maturing after five years through ten years
|
|
500
|
|
|
476
|
|
|
2.38
|
%
|
|
4,156
|
|
|
4,215
|
|
|
2.92
|
%
|
||||
Maturing after ten years
|
|
4,900
|
|
|
4,889
|
|
|
5.03
|
%
|
|
4,981
|
|
|
5,042
|
|
|
4.40
|
%
|
||||
Total
|
|
82,965
|
|
|
82,020
|
|
|
2.62
|
%
|
|
99,636
|
|
|
99,982
|
|
|
2.47
|
%
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
35,935
|
|
|
35,983
|
|
|
3.67
|
%
|
|
9,136
|
|
|
9,117
|
|
|
2.79
|
%
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
1,250
|
|
|
1,231
|
|
|
5.50
|
%
|
|
12,650
|
|
|
11,905
|
|
|
2.29
|
%
|
||||
Maturing after one year through five years
|
|
10,000
|
|
|
9,638
|
|
|
4.00
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Maturing after five years through ten years
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
24,935
|
|
|
25,098
|
|
|
2.90
|
%
|
||||
Total
|
|
11,250
|
|
|
10,869
|
|
|
4.17
|
%
|
|
37,585
|
|
|
37,003
|
|
|
2.70
|
%
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
439,378
|
|
|
414,065
|
|
|
2.19
|
%
|
|
405,396
|
|
|
387,729
|
|
|
2.13
|
%
|
||||
Maturing after one year through five years
|
|
50,000
|
|
|
48,983
|
|
|
3.12
|
%
|
|
100,000
|
|
|
98,679
|
|
|
2.71
|
%
|
||||
Total
|
|
489,378
|
|
|
463,048
|
|
|
2.28
|
%
|
|
505,396
|
|
|
486,408
|
|
|
2.24
|
%
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
12,621
|
|
|
12,643
|
|
|
3.22
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Other securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
31,887
|
|
|
31,342
|
|
|
2.71
|
%
|
||||
Total available-for-sale investment securities
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
2.43
|
%
|
|
$
|
3,070,067
|
|
|
$
|
3,016,752
|
|
|
2.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total aggregated by maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
$
|
549,517
|
|
|
$
|
523,552
|
|
|
2.18
|
%
|
|
$
|
602,560
|
|
|
$
|
583,126
|
|
|
1.90
|
%
|
Maturing after one year through five years
|
|
676,814
|
|
|
661,868
|
|
|
1.91
|
%
|
|
772,349
|
|
|
759,970
|
|
|
1.84
|
%
|
||||
Maturing after five years through ten years
|
|
212,093
|
|
|
209,653
|
|
|
2.47
|
%
|
|
220,298
|
|
|
216,390
|
|
|
2.37
|
%
|
||||
Maturing after ten years
|
|
1,368,476
|
|
|
1,346,774
|
|
|
2.78
|
%
|
|
1,474,860
|
|
|
1,457,266
|
|
|
2.38
|
%
|
||||
Total available-for-sale investment securities
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
2.43
|
%
|
|
$
|
3,070,067
|
|
|
$
|
3,016,752
|
|
|
2.15
|
%
|
|
(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,
|
|||||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
C&I
|
|
$
|
12,056,970
|
|
|
37
|
%
|
|
$
|
10,697,231
|
|
|
37
|
%
|
|
$
|
9,640,563
|
|
|
38
|
%
|
|
$
|
8,991,535
|
|
|
38
|
%
|
|
$
|
8,076,450
|
|
|
37
|
%
|
CRE
|
|
9,449,835
|
|
|
29
|
%
|
|
8,936,897
|
|
|
31
|
%
|
|
8,016,109
|
|
|
31
|
%
|
|
7,471,812
|
|
|
32
|
%
|
|
6,253,195
|
|
|
29
|
%
|
|||||
Multifamily residential
|
|
2,281,032
|
|
|
7
|
%
|
|
1,916,176
|
|
|
7
|
%
|
|
1,585,939
|
|
|
6
|
%
|
|
1,524,367
|
|
|
6
|
%
|
|
1,451,918
|
|
|
7
|
%
|
|||||
Construction and land
|
|
538,794
|
|
|
2
|
%
|
|
659,697
|
|
|
2
|
%
|
|
674,754
|
|
|
3
|
%
|
|
628,260
|
|
|
3
|
%
|
|
563,196
|
|
|
2
|
%
|
|||||
Total commercial
|
|
24,326,631
|
|
|
75
|
%
|
|
22,210,001
|
|
|
77
|
%
|
|
19,917,365
|
|
|
78
|
%
|
|
18,615,974
|
|
|
79
|
%
|
|
16,344,759
|
|
|
75
|
%
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Single-family residential
|
|
6,036,454
|
|
|
19
|
%
|
|
4,646,289
|
|
|
16
|
%
|
|
3,509,779
|
|
|
14
|
%
|
|
3,069,969
|
|
|
13
|
%
|
|
3,872,141
|
|
|
18
|
%
|
|||||
HELOCs
|
|
1,690,834
|
|
|
5
|
%
|
|
1,782,924
|
|
|
6
|
%
|
|
1,760,776
|
|
|
7
|
%
|
|
1,681,228
|
|
|
7
|
%
|
|
1,258,079
|
|
|
6
|
%
|
|||||
Other consumer
|
|
331,270
|
|
|
1
|
%
|
|
336,504
|
|
|
1
|
%
|
|
315,219
|
|
|
1
|
%
|
|
276,577
|
|
|
1
|
%
|
|
254,970
|
|
|
1
|
%
|
|||||
Total consumer
|
|
8,058,558
|
|
|
25
|
%
|
|
6,765,717
|
|
|
23
|
%
|
|
5,585,774
|
|
|
22
|
%
|
|
5,027,774
|
|
|
21
|
%
|
|
5,385,190
|
|
|
25
|
%
|
|||||
Total loans held-for-investment
(2)
|
|
32,385,189
|
|
|
100
|
%
|
|
28,975,718
|
|
|
100
|
%
|
|
25,503,139
|
|
|
100
|
%
|
|
23,643,748
|
|
|
100
|
%
|
|
21,729,949
|
|
|
100
|
%
|
|||||
Allowance for loan losses
|
|
(311,322
|
)
|
|
|
|
(287,128
|
)
|
|
|
|
(260,520
|
)
|
|
|
|
(264,959
|
)
|
|
|
|
(261,679
|
)
|
|
|
||||||||||
Loans held-for-sale
(3)
|
|
275
|
|
|
|
|
78,217
|
|
|
|
|
23,076
|
|
|
|
|
31,958
|
|
|
|
|
45,950
|
|
|
|
||||||||||
Total loans, net
|
|
$
|
32,074,142
|
|
|
|
|
$
|
28,766,807
|
|
|
|
|
$
|
25,265,695
|
|
|
|
|
$
|
23,410,747
|
|
|
|
|
$
|
21,514,220
|
|
|
|
|||||
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of
$(48.9) million
,
$(34.0) million
,
$1.2 million
,
$(16.0) million
and
$2.8 million
as of
December 31, 2018
,
2017
,
2016
,
2015
and
2014
, respectively.
|
(2)
|
Includes ASC 310-30 discount of
$22.2 million
,
$35.3 million
,
$49.4 million
,
$80.1 million
and
$133.6 million
as of
December 31, 2018
,
2017
,
2016
,
2015
and
2014
, respectively.
|
(3)
|
Includes
$78.1 million
of loans held-for-sale in
Branch assets held-for-sale
as of
December 31, 2017
.
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total
|
|
%
|
|||||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Southern California
|
|
$
|
5,228,305
|
|
|
|
|
$
|
1,390,546
|
|
|
|
|
$
|
215,370
|
|
|
|
|
$
|
6,834,221
|
|
|
|
||||
Northern California
|
|
2,168,055
|
|
|
|
|
545,300
|
|
|
|
|
133,828
|
|
|
|
|
2,847,183
|
|
|
|
||||||||
California
|
|
7,396,360
|
|
|
79
|
%
|
|
1,935,846
|
|
|
85
|
%
|
|
349,198
|
|
|
65
|
%
|
|
9,681,404
|
|
|
79
|
%
|
||||
New York
|
|
659,026
|
|
|
7
|
%
|
|
103,324
|
|
|
5
|
%
|
|
46,702
|
|
|
9
|
%
|
|
809,052
|
|
|
7
|
%
|
||||
Texas
|
|
509,375
|
|
|
5
|
%
|
|
71,683
|
|
|
3
|
%
|
|
12,055
|
|
|
2
|
%
|
|
593,113
|
|
|
5
|
%
|
||||
Washington
|
|
290,141
|
|
|
3
|
%
|
|
56,675
|
|
|
2
|
%
|
|
29,079
|
|
|
5
|
%
|
|
375,895
|
|
|
3
|
%
|
||||
Arizona
|
|
108,102
|
|
|
1
|
%
|
|
24,808
|
|
|
1
|
%
|
|
24,890
|
|
|
5
|
%
|
|
157,800
|
|
|
1
|
%
|
||||
Nevada
|
|
94,924
|
|
|
1
|
%
|
|
44,052
|
|
|
2
|
%
|
|
47,897
|
|
|
9
|
%
|
|
186,873
|
|
|
2
|
%
|
||||
Other markets
|
|
391,907
|
|
|
4
|
%
|
|
44,644
|
|
|
2
|
%
|
|
28,973
|
|
|
5
|
%
|
|
465,524
|
|
|
3
|
%
|
||||
Total loans
(1)
|
|
$
|
9,449,835
|
|
|
100
|
%
|
|
$
|
2,281,032
|
|
|
100
|
%
|
|
$
|
538,794
|
|
|
100
|
%
|
|
$
|
12,269,661
|
|
|
100
|
%
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total
|
|
%
|
|||||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Southern California
|
|
$
|
4,809,095
|
|
|
|
|
$
|
1,170,565
|
|
|
|
|
$
|
293,814
|
|
|
|
|
$
|
6,273,474
|
|
|
|
||||
Northern California
|
|
1,975,890
|
|
|
|
|
446,068
|
|
|
|
|
137,539
|
|
|
|
|
2,559,497
|
|
|
|
||||||||
California
|
|
6,784,985
|
|
|
76
|
%
|
|
1,616,633
|
|
|
84
|
%
|
|
431,353
|
|
|
65
|
%
|
|
8,832,971
|
|
|
77
|
%
|
||||
New York
|
|
707,910
|
|
|
8
|
%
|
|
98,391
|
|
|
5
|
%
|
|
132,866
|
|
|
20
|
%
|
|
939,167
|
|
|
8
|
%
|
||||
Texas
|
|
555,397
|
|
|
6
|
%
|
|
46,910
|
|
|
2
|
%
|
|
34,330
|
|
|
5
|
%
|
|
636,637
|
|
|
6
|
%
|
||||
Washington
|
|
328,570
|
|
|
4
|
%
|
|
61,779
|
|
|
3
|
%
|
|
25,377
|
|
|
4
|
%
|
|
415,726
|
|
|
4
|
%
|
||||
Arizona
|
|
76,685
|
|
|
1
|
%
|
|
—
|
|
|
—
|
%
|
|
20,757
|
|
|
3
|
%
|
|
97,442
|
|
|
1
|
%
|
||||
Nevada
|
|
152,451
|
|
|
2
|
%
|
|
50,143
|
|
|
3
|
%
|
|
—
|
|
|
—
|
%
|
|
202,594
|
|
|
2
|
%
|
||||
Other markets
|
|
330,899
|
|
|
3
|
%
|
|
42,320
|
|
|
3
|
%
|
|
15,014
|
|
|
3
|
%
|
|
388,233
|
|
|
2
|
%
|
||||
Total loans
(1)
|
|
$
|
8,936,897
|
|
|
100
|
%
|
|
$
|
1,916,176
|
|
|
100
|
%
|
|
$
|
659,697
|
|
|
100
|
%
|
|
$
|
11,512,770
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
|||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Retail
|
|
$
|
3,171,374
|
|
|
33
|
%
|
|
$
|
3,077,556
|
|
|
34
|
%
|
Offices
|
|
2,160,382
|
|
|
23
|
%
|
|
1,714,821
|
|
|
19
|
%
|
||
Industrial
|
|
1,883,444
|
|
|
20
|
%
|
|
1,696,253
|
|
|
19
|
%
|
||
Hotel/Motel
|
|
1,619,905
|
|
|
17
|
%
|
|
1,279,884
|
|
|
14
|
%
|
||
Other
|
|
614,730
|
|
|
7
|
%
|
|
1,168,383
|
|
|
14
|
%
|
||
Total CRE loans
(1)
|
|
$
|
9,449,835
|
|
|
100
|
%
|
|
$
|
8,936,897
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
|||||||||||||||||||
|
Single-
Family
Residential
|
|
%
|
|
HELOCs
|
|
%
|
|
Total
|
|
%
|
||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Southern California
|
|
$
|
2,768,725
|
|
|
|
|
$
|
839,790
|
|
|
|
|
$
|
3,608,515
|
|
|
|
|||
Northern California
|
|
954,835
|
|
|
|
|
350,008
|
|
|
|
|
1,304,843
|
|
|
|
||||||
California
|
|
3,723,560
|
|
|
62
|
%
|
|
1,189,798
|
|
|
70
|
%
|
|
4,913,358
|
|
|
64
|
%
|
|||
New York
|
|
1,165,135
|
|
|
19
|
%
|
|
279,792
|
|
|
17
|
%
|
|
1,444,927
|
|
|
19
|
%
|
|||
Washington
|
|
572,017
|
|
|
9
|
%
|
|
149,579
|
|
|
9
|
%
|
|
721,596
|
|
|
9
|
%
|
|||
Other markets
|
|
575,742
|
|
|
10
|
%
|
|
71,665
|
|
|
4
|
%
|
|
647,407
|
|
|
8
|
%
|
|||
Total
(1)
|
|
$
|
6,036,454
|
|
|
100
|
%
|
|
$
|
1,690,834
|
|
|
100
|
%
|
|
$
|
7,727,288
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
|||||||||||||||||||
|
Single-
Family Residential |
|
%
|
|
HELOCs
|
|
%
|
|
Total
|
|
%
|
||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Southern California
|
|
$
|
2,270,420
|
|
|
|
|
$
|
918,492
|
|
|
|
|
$
|
3,188,912
|
|
|
|
|||
Northern California
|
|
738,680
|
|
|
|
|
380,184
|
|
|
|
|
1,118,864
|
|
|
|
||||||
California
|
|
3,009,100
|
|
|
65
|
%
|
|
1,298,676
|
|
|
73
|
%
|
|
4,307,776
|
|
|
67
|
%
|
|||
New York
|
|
788,917
|
|
|
17
|
%
|
|
270,291
|
|
|
15
|
%
|
|
1,059,208
|
|
|
16
|
%
|
|||
Washington
|
|
408,497
|
|
|
9
|
%
|
|
144,950
|
|
|
8
|
%
|
|
553,447
|
|
|
9
|
%
|
|||
Other markets
|
|
439,775
|
|
|
9
|
%
|
|
69,007
|
|
|
4
|
%
|
|
508,782
|
|
|
8
|
%
|
|||
Total
(1)
|
|
$
|
4,646,289
|
|
|
100
|
%
|
|
$
|
1,782,924
|
|
|
100
|
%
|
|
$
|
6,429,213
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||
($ in thousands)
|
|
Due within
one year |
|
Due after one year through five years
|
|
Due after five years
|
|
Total
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
4,011,269
|
|
|
$
|
6,821,768
|
|
|
$
|
1,223,933
|
|
|
$
|
12,056,970
|
|
CRE
|
|
597,987
|
|
|
3,550,164
|
|
|
5,301,684
|
|
|
9,449,835
|
|
||||
Multifamily residential
|
|
191,104
|
|
|
323,538
|
|
|
1,766,390
|
|
|
2,281,032
|
|
||||
Construction and land
|
|
351,296
|
|
|
139,344
|
|
|
48,154
|
|
|
538,794
|
|
||||
Total commercial
|
|
5,151,656
|
|
|
10,834,814
|
|
|
8,340,161
|
|
|
24,326,631
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||||||
Single-family residential
|
|
1,035
|
|
|
9,797
|
|
|
6,025,622
|
|
|
6,036,454
|
|
||||
HELOCs
|
|
1
|
|
|
52
|
|
|
1,690,781
|
|
|
1,690,834
|
|
||||
Other consumer
|
|
92,476
|
|
|
222,055
|
|
|
16,739
|
|
|
331,270
|
|
||||
Total consumer
|
|
93,512
|
|
|
231,904
|
|
|
7,733,142
|
|
|
8,058,558
|
|
||||
Total loans held-for-investment
(1)
|
|
$
|
5,245,168
|
|
|
$
|
11,066,718
|
|
|
$
|
16,073,303
|
|
|
$
|
32,385,189
|
|
|
|
|
|
|
|
|
|
|
||||||||
Distribution of loans to changes in interest rates:
|
|
|
|
|
|
|
|
|
||||||||
Variable rate loans
|
|
$
|
4,247,953
|
|
|
$
|
9,772,877
|
|
|
$
|
7,837,990
|
|
|
$
|
21,858,820
|
|
Fixed rate loans
|
|
974,938
|
|
|
999,888
|
|
|
1,232,551
|
|
|
3,207,377
|
|
||||
Hybrid adjustable-rate loans
|
|
22,277
|
|
|
293,953
|
|
|
7,002,762
|
|
|
7,318,992
|
|
||||
Total loans held-for-investment
(1)
|
|
$
|
5,245,168
|
|
|
$
|
11,066,718
|
|
|
$
|
16,073,303
|
|
|
$
|
32,385,189
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
43,840
|
|
|
$
|
69,213
|
|
|
$
|
81,256
|
|
|
$
|
64,883
|
|
|
$
|
28,801
|
|
CRE
|
|
24,218
|
|
|
26,986
|
|
|
26,907
|
|
|
29,345
|
|
|
28,513
|
|
|||||
Multifamily residential
|
|
1,260
|
|
|
1,717
|
|
|
2,984
|
|
|
16,268
|
|
|
20,819
|
|
|||||
Construction and land
|
|
—
|
|
|
3,973
|
|
|
5,326
|
|
|
700
|
|
|
9,636
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
5,259
|
|
|
5,923
|
|
|
4,214
|
|
|
8,759
|
|
|
8,625
|
|
|||||
HELOCs
|
|
8,614
|
|
|
4,006
|
|
|
2,130
|
|
|
1,743
|
|
|
703
|
|
|||||
Other consumer
|
|
2,502
|
|
|
2,491
|
|
|
—
|
|
|
—
|
|
|
3,165
|
|
|||||
Total nonaccrual loans
|
|
85,693
|
|
|
114,309
|
|
|
122,817
|
|
|
121,698
|
|
|
100,262
|
|
|||||
OREO, net
|
|
133
|
|
|
830
|
|
|
6,745
|
|
|
7,034
|
|
|
32,111
|
|
|||||
Other nonperforming assets
|
|
7,167
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming assets
|
|
$
|
92,993
|
|
|
$
|
115,139
|
|
|
$
|
129,562
|
|
|
$
|
128,732
|
|
|
$
|
132,373
|
|
Non-PCI nonperforming assets to total assets
(1)
|
|
0.23
|
%
|
|
0.31
|
%
|
|
0.37
|
%
|
|
0.40
|
%
|
|
0.46
|
%
|
|||||
Non-PCI nonaccrual loans to loans held-for-investment
(1)
|
|
0.26
|
%
|
|
0.39
|
%
|
|
0.48
|
%
|
|
0.51
|
%
|
|
0.46
|
%
|
|||||
Allowance for loan losses to non-PCI nonaccrual loans
|
|
363.30
|
%
|
|
251.19
|
%
|
|
212.12
|
%
|
|
217.72
|
%
|
|
261.00
|
%
|
|||||
|
(1)
|
Total assets and loans held-for-investment include PCI loans of
$308.0 million
,
$482.3 million
,
$642.4 million
,
$970.8 million
and
$1.32 billion
as of
December 31, 2018
,
2017
,
2016
,
2015
and
2014
, respectively.
|
|
||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||
|
2018
|
|
2017
|
|||||||||||||
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
13,248
|
|
|
$
|
10,715
|
|
|
$
|
29,472
|
|
|
$
|
39,509
|
|
CRE
|
|
6,134
|
|
|
17,272
|
|
|
8,570
|
|
|
17,830
|
|
||||
Multifamily residential
|
|
4,300
|
|
|
260
|
|
|
8,919
|
|
|
289
|
|
||||
Construction and land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,973
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
8,201
|
|
|
325
|
|
|
8,415
|
|
|
778
|
|
||||
HELOCs
|
|
1,342
|
|
|
1,743
|
|
|
1,202
|
|
|
530
|
|
||||
Total TDRs
|
|
$
|
33,225
|
|
|
$
|
30,315
|
|
|
$
|
56,578
|
|
|
$
|
62,909
|
|
|
|
||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
|||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
57,088
|
|
|
48
|
%
|
|
$
|
98,685
|
|
|
58
|
%
|
CRE
|
|
30,352
|
|
|
26
|
%
|
|
35,556
|
|
|
21
|
%
|
||
Multifamily residential
|
|
5,560
|
|
|
5
|
%
|
|
10,636
|
|
|
6
|
%
|
||
Construction and land
|
|
—
|
|
|
—
|
%
|
|
3,973
|
|
|
2
|
%
|
||
Total commercial
|
|
93,000
|
|
|
79
|
%
|
|
148,850
|
|
|
87
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
13,460
|
|
|
11
|
%
|
|
14,338
|
|
|
8
|
%
|
||
HELOCs
|
|
9,956
|
|
|
8
|
%
|
|
5,208
|
|
|
3
|
%
|
||
Other consumer
|
|
2,502
|
|
|
2
|
%
|
|
2,491
|
|
|
2
|
%
|
||
Total consumer
|
|
25,918
|
|
|
21
|
%
|
|
22,037
|
|
|
13
|
%
|
||
Total non-PCI impaired loans
|
|
$
|
118,918
|
|
|
100
|
%
|
|
$
|
170,887
|
|
|
100
|
%
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||
Allowance for loan losses, beginning of period
|
|
$
|
287,128
|
|
|
$
|
260,520
|
|
|
$
|
264,959
|
|
|
$
|
261,679
|
|
|
$
|
249,675
|
|
Provision for loan losses
|
|
65,007
|
|
|
49,069
|
|
|
31,718
|
|
|
6,569
|
|
|
47,583
|
|
|||||
Gross charge-offs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
(59,244
|
)
|
|
(38,118
|
)
|
|
(47,739
|
)
|
|
(20,423
|
)
|
|
(39,984
|
)
|
|||||
CRE
|
|
—
|
|
|
—
|
|
|
(464
|
)
|
|
(1,052
|
)
|
|
(2,317
|
)
|
|||||
Multifamily residential
|
|
—
|
|
|
(635
|
)
|
|
(29
|
)
|
|
(1,650
|
)
|
|
(1,011
|
)
|
|||||
Construction and land
|
|
—
|
|
|
(149
|
)
|
|
(117
|
)
|
|
(493
|
)
|
|
(1,343
|
)
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
(1
|
)
|
|
(1
|
)
|
|
(137
|
)
|
|
(36
|
)
|
|
(92
|
)
|
|||||
HELOCs
|
|
—
|
|
|
(55
|
)
|
|
(9
|
)
|
|
(98
|
)
|
|
(125
|
)
|
|||||
Other consumer
|
|
(188
|
)
|
|
(17
|
)
|
|
(13
|
)
|
|
(502
|
)
|
|
(5,746
|
)
|
|||||
Total gross charge-offs
|
|
(59,433
|
)
|
|
(38,975
|
)
|
|
(48,508
|
)
|
|
(24,254
|
)
|
|
(50,618
|
)
|
|||||
Gross recoveries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
10,417
|
|
|
11,371
|
|
|
9,003
|
|
|
9,259
|
|
|
10,198
|
|
|||||
CRE
|
|
5,194
|
|
|
2,111
|
|
|
1,488
|
|
|
2,488
|
|
|
1,134
|
|
|||||
Multifamily residential
|
|
1,757
|
|
|
1,357
|
|
|
1,476
|
|
|
4,298
|
|
|
2,287
|
|
|||||
Construction and land
|
|
740
|
|
|
259
|
|
|
203
|
|
|
4,647
|
|
|
848
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
1,214
|
|
|
546
|
|
|
401
|
|
|
323
|
|
|
123
|
|
|||||
HELOCs
|
|
38
|
|
|
24
|
|
|
7
|
|
|
54
|
|
|
252
|
|
|||||
Other consumer
|
|
3
|
|
|
152
|
|
|
323
|
|
|
373
|
|
|
197
|
|
|||||
Total gross recoveries
|
|
19,363
|
|
|
15,820
|
|
|
12,901
|
|
|
21,442
|
|
|
15,039
|
|
|||||
Net charge-offs
|
|
(40,070
|
)
|
|
(23,155
|
)
|
|
(35,607
|
)
|
|
(2,812
|
)
|
|
(35,579
|
)
|
|||||
Foreign currency translation adjustments
|
|
(743
|
)
|
|
694
|
|
|
(550
|
)
|
|
(477
|
)
|
|
—
|
|
|||||
Allowance for loan losses, end of period
|
|
311,322
|
|
|
287,128
|
|
|
260,520
|
|
|
264,959
|
|
|
261,679
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for unfunded credit reserves, beginning of period
|
|
13,318
|
|
|
16,121
|
|
|
20,360
|
|
|
12,712
|
|
|
11,282
|
|
|||||
(Reversal of) provision for unfunded credit reserves
|
|
(752
|
)
|
|
(2,803
|
)
|
|
(4,239
|
)
|
|
7,648
|
|
|
1,575
|
|
|||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|||||
Allowance for unfunded credit reserves, end of period
|
|
12,566
|
|
|
13,318
|
|
|
16,121
|
|
|
20,360
|
|
|
12,712
|
|
|||||
Allowance for credit losses
|
|
$
|
323,888
|
|
|
$
|
300,446
|
|
|
$
|
276,641
|
|
|
$
|
285,319
|
|
|
$
|
274,391
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average loans held-for-investment
|
|
$
|
30,209,219
|
|
|
$
|
27,237,981
|
|
|
$
|
24,223,535
|
|
|
$
|
22,140,443
|
|
|
$
|
20,093,921
|
|
Loans held-for-investment
|
|
$
|
32,385,189
|
|
|
$
|
28,975,718
|
|
|
$
|
25,503,139
|
|
|
$
|
23,643,748
|
|
|
$
|
21,729,949
|
|
Allowance for loan losses to loans held-for-investment
|
|
0.96
|
%
|
|
0.99
|
%
|
|
1.02
|
%
|
|
1.12
|
%
|
|
1.20
|
%
|
|||||
Net charge-offs to average loans held-for-investment
|
|
0.13
|
%
|
|
0.08
|
%
|
|
0.15
|
%
|
|
0.01
|
%
|
|
0.18
|
%
|
|||||
|
|
|||||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||
|
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 |
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
C&I
|
|
$
|
191,340
|
|
|
37
|
%
|
|
$
|
163,058
|
|
|
37
|
%
|
|
$
|
142,167
|
|
|
38
|
%
|
|
$
|
134,606
|
|
|
38
|
%
|
|
$
|
134,598
|
|
|
37
|
%
|
CRE
|
|
39,053
|
|
|
29
|
%
|
|
41,237
|
|
|
31
|
%
|
|
47,927
|
|
|
31
|
%
|
|
58,623
|
|
|
32
|
%
|
|
53,989
|
|
|
29
|
%
|
|||||
Multifamily residential
|
|
19,283
|
|
|
7
|
%
|
|
19,109
|
|
|
7
|
%
|
|
17,543
|
|
|
6
|
%
|
|
19,630
|
|
|
6
|
%
|
|
14,043
|
|
|
7
|
%
|
|||||
Construction and land
|
|
20,282
|
|
|
2
|
%
|
|
26,881
|
|
|
2
|
%
|
|
24,989
|
|
|
3
|
%
|
|
22,915
|
|
|
3
|
%
|
|
18,988
|
|
|
2
|
%
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Single-family residential
|
|
31,340
|
|
|
19
|
%
|
|
26,362
|
|
|
16
|
%
|
|
19,795
|
|
|
14
|
%
|
|
19,665
|
|
|
13
|
%
|
|
29,813
|
|
|
18
|
%
|
|||||
HELOCs
|
|
5,774
|
|
|
5
|
%
|
|
7,354
|
|
|
6
|
%
|
|
7,506
|
|
|
7
|
%
|
|
8,745
|
|
|
7
|
%
|
|
10,538
|
|
|
6
|
%
|
|||||
Other consumer
|
|
4,250
|
|
|
1
|
%
|
|
3,127
|
|
|
1
|
%
|
|
593
|
|
|
1
|
%
|
|
775
|
|
|
1
|
%
|
|
(290
|
)
|
|
1
|
%
|
|||||
Total
|
|
$
|
311,322
|
|
|
100
|
%
|
|
$
|
287,128
|
|
|
100
|
%
|
|
$
|
260,520
|
|
|
100
|
%
|
|
$
|
264,959
|
|
|
100
|
%
|
|
$
|
261,679
|
|
|
100
|
%
|
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
|
% of Total
Deposits
|
|
December 31, 2017
|
|
% of Total
Deposits |
|
Change
|
|||||||||||
|
|
|
|
|
$
|
|
%
|
||||||||||||||
Core deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing demand
|
|
$
|
11,377,009
|
|
|
32
|
%
|
|
$
|
10,887,306
|
|
|
34
|
%
|
|
$
|
489,703
|
|
|
4
|
%
|
Interest-bearing checking
|
|
4,584,447
|
|
|
13
|
%
|
|
4,419,089
|
|
|
14
|
%
|
|
165,358
|
|
|
4
|
%
|
|||
Money market
|
|
8,262,677
|
|
|
23
|
%
|
|
8,359,425
|
|
|
26
|
%
|
|
(96,748
|
)
|
|
(1
|
)%
|
|||
Savings
|
|
2,146,429
|
|
|
6
|
%
|
|
2,308,494
|
|
|
7
|
%
|
|
(162,065
|
)
|
|
(7
|
)%
|
|||
Total core deposits
|
|
26,370,562
|
|
|
74
|
%
|
|
25,974,314
|
|
|
82
|
%
|
|
396,248
|
|
|
2
|
%
|
|||
Time deposits
|
|
9,069,066
|
|
|
26
|
%
|
|
5,640,749
|
|
|
18
|
%
|
|
3,428,317
|
|
|
61
|
%
|
|||
Total deposits
|
|
$
|
35,439,628
|
|
|
100
|
%
|
|
$
|
31,615,063
|
|
|
100
|
%
|
|
$
|
3,824,565
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
||||
($ in thousands)
|
|
December 31, 2018
|
||
3 months or less
|
|
$
|
1,502,563
|
|
Over 3 months through 6 months
|
|
1,907,673
|
|
|
Over 6 months through 12 months
|
|
2,107,738
|
|
|
Over 12 months
|
|
388,367
|
|
|
Total
|
|
$
|
5,906,341
|
|
|
|
||||||||||||
($ in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Year-end balance
|
|
$
|
57,638
|
|
|
$
|
—
|
|
|
$
|
60,050
|
|
Weighted-average rate on amount outstanding at year-end
|
|
4.21
|
%
|
|
—
|
%
|
|
3.01
|
%
|
|||
Maximum month-end balance
|
|
$
|
58,523
|
|
|
$
|
60,603
|
|
|
$
|
60,050
|
|
Average amount outstanding
|
|
$
|
31,612
|
|
|
$
|
31,725
|
|
|
$
|
25,560
|
|
Weighted-average rate
|
|
4.28
|
%
|
|
3.11
|
%
|
|
2.84
|
%
|
|||
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||
|
Amount
|
|
% of Total
Consolidated
Assets
|
|
Amount
|
|
% of Total
Consolidated
Assets
|
|
Amount
|
|
% of Total
Consolidated Assets |
||||||||||
Hong Kong Branch:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
$
|
360,786
|
|
|
1
|
%
|
|
$
|
151,631
|
|
|
0
|
%
|
|
$
|
46,895
|
|
|
0
|
%
|
Available-for-sale investment securities
(1)
|
|
$
|
221,932
|
|
|
1
|
%
|
|
$
|
242,107
|
|
|
1
|
%
|
|
$
|
251,680
|
|
|
1
|
%
|
Loans held-for-investment
(2)(3)
|
|
$
|
653,860
|
|
|
2
|
%
|
|
$
|
713,728
|
|
|
2
|
%
|
|
$
|
733,286
|
|
|
2
|
%
|
Total assets
|
|
$
|
1,244,532
|
|
|
3
|
%
|
|
$
|
1,100,471
|
|
|
3
|
%
|
|
$
|
1,040,465
|
|
|
3
|
%
|
Subsidiary Bank in China:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
$
|
695,527
|
|
|
2
|
%
|
|
$
|
626,658
|
|
|
2
|
%
|
|
$
|
387,354
|
|
|
1
|
%
|
Interest-bearing deposits with banks
|
|
$
|
221,000
|
|
|
1
|
%
|
|
$
|
188,422
|
|
|
1
|
%
|
|
$
|
173,148
|
|
|
0
|
%
|
Loans held-for-investment
(3)
|
|
$
|
777,412
|
|
|
2
|
%
|
|
$
|
484,214
|
|
|
1
|
%
|
|
$
|
425,336
|
|
|
1
|
%
|
Total assets
|
|
$
|
1,700,287
|
|
|
4
|
%
|
|
$
|
1,302,562
|
|
|
4
|
%
|
|
$
|
987,286
|
|
|
3
|
%
|
|
(1)
|
Comprised of U.S.Treasury securities and foreign bonds as of
December 31, 2018
. Comprised of U.S. Treasury securities, U.S. government agency and U.S. government sponsored enterprise debt securities, and foreign bonds as of each of
December 31, 2017
and
2016
.
|
(2)
|
Includes ASC 310-30 discount of
$103 thousand
,
$353 thousand
and
$747 thousand
as of
December 31, 2018
,
2017
and
2016
, respectively.
|
(3)
|
Primarily comprised of C&I loans.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||
|
Amount
|
|
% of Total
Consolidated Revenue |
|
Amount
|
|
% of Total
Consolidated Revenue |
|
Amount
|
|
% of Total
Consolidated Revenue |
||||||||||
Hong Kong Branch:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total revenue
|
|
$
|
31,122
|
|
|
2
|
%
|
|
$
|
28,096
|
|
|
2
|
%
|
|
$
|
26,754
|
|
|
2
|
%
|
Subsidiary Bank in China:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total revenue
|
|
$
|
34,143
|
|
|
2
|
%
|
|
$
|
24,235
|
|
|
2
|
%
|
|
$
|
21,055
|
|
|
2
|
%
|
|
|
|||||||||||||||||||||
|
|
Basel III Capital Rules
|
|||||||||||||||||||
|
December 31, 2018
|
|
December 31, 2017
|
|
Minimum
Regulatory
Requirements
|
|
Well-Capitalized
Requirements
|
|
Fully Phased-
in Minimum
Regulatory
Requirements
|
||||||||||||
|
Company
|
|
East West Bank
|
|
Company
|
|
East West Bank
|
|
|
|
|||||||||||
Total risk-based capital
|
|
13.7
|
%
|
|
13.1
|
%
|
|
12.9
|
%
|
|
12.4
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
|
10.5
|
%
|
Tier 1 risk-based capital
|
|
12.2
|
%
|
|
12.1
|
%
|
|
11.4
|
%
|
|
11.4
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
|
8.5
|
%
|
CET1 risk-based capital
|
|
12.2
|
%
|
|
12.1
|
%
|
|
11.4
|
%
|
|
11.4
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
|
7.0
|
%
|
Tier 1 leverage capital
(1)
|
|
9.9
|
%
|
|
9.8
|
%
|
|
9.2
|
%
|
|
9.2
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
4.0
|
%
|
|
(1)
|
The Tier 1 leverage capital well-capitalized requirement applies to the Bank only since there is no Tier 1 leverage ratio component in the definition of a well-capitalized bank-holding company.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Payment Due by Period
|
||||||||||||||||||||||
|
Less than
1 year |
|
1-3 years
|
|
3-5 years
|
|
After
5 years |
|
Indeterminate
Maturity (1) |
|
Total
|
|||||||||||||
On-balance sheet obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits
|
|
$
|
8,413,358
|
|
|
$
|
552,572
|
|
|
$
|
76,208
|
|
|
$
|
26,928
|
|
|
$
|
26,370,562
|
|
|
$
|
35,439,628
|
|
FHLB advances
|
|
81,924
|
|
|
—
|
|
|
244,248
|
|
|
—
|
|
|
—
|
|
|
326,172
|
|
||||||
Gross repurchase agreements
|
|
—
|
|
|
—
|
|
|
450,000
|
|
|
—
|
|
|
—
|
|
|
450,000
|
|
||||||
Affordable housing partnership and other tax credit investment commitments
|
|
108,602
|
|
|
39,015
|
|
|
11,625
|
|
|
1,750
|
|
|
—
|
|
|
160,992
|
|
||||||
Short-term borrowings
|
|
57,638
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,638
|
|
||||||
Long-term debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
146,835
|
|
|
—
|
|
|
146,835
|
|
||||||
Unrecognized tax liabilities
(2)
|
|
10,719
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,719
|
|
||||||
Projected cash payments for post-retirement benefit plan
|
|
329
|
|
|
688
|
|
|
729
|
|
|
7,484
|
|
|
—
|
|
|
9,230
|
|
||||||
Total on-balance sheet obligations
|
|
8,672,570
|
|
|
592,275
|
|
|
782,810
|
|
|
182,997
|
|
|
26,370,562
|
|
|
36,601,214
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Off-balance sheet obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating lease obligations
(3)
|
|
42,008
|
|
|
66,904
|
|
|
36,381
|
|
|
40,357
|
|
|
—
|
|
|
185,650
|
|
||||||
Contractual interest payments
(4)
|
|
176,824
|
|
|
99,349
|
|
|
49,972
|
|
|
83,955
|
|
|
—
|
|
|
410,100
|
|
||||||
Total off-balance sheet obligations
|
|
218,832
|
|
|
166,253
|
|
|
86,353
|
|
|
124,312
|
|
|
—
|
|
|
595,750
|
|
||||||
Total contractual obligations
|
|
$
|
8,891,402
|
|
|
$
|
758,528
|
|
|
$
|
869,163
|
|
|
$
|
307,309
|
|
|
$
|
26,370,562
|
|
|
$
|
37,196,964
|
|
|
(1)
|
Includes deposits with no defined maturity, such as noninterest-bearing demand, interest-bearing checking, money-market and savings accounts.
|
(2)
|
Balance includes interest and penalties.
|
(3)
|
Represents the Company’s lease obligations for rental properties.
|
(4)
|
Represents the future interest obligations related to interest-bearing time deposits, FHLB, gross repurchase agreements, short-term borrowings and long-term debt in the normal course of business, net of derivative hedges. These interest obligations assume no early debt redemption. The Company estimated variable interest rate payments using December 31, 2018 rates, which the company held constant until maturity.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Net cash provided by operating activities
|
|
$
|
883,172
|
|
|
$
|
703,275
|
|
|
$
|
650,183
|
|
Net cash used in investing activities
|
|
(3,832,412
|
)
|
|
(2,506,824
|
)
|
|
(1,800,086
|
)
|
|||
Net cash provided by financing activities
|
|
3,800,808
|
|
|
2,068,460
|
|
|
1,679,459
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(24,783
|
)
|
|
31,178
|
|
|
(11,940
|
)
|
|||
Net increase in cash and cash equivalents
|
|
826,785
|
|
|
296,089
|
|
|
517,616
|
|
|||
Cash and cash equivalents, beginning of year
|
|
2,174,592
|
|
|
1,878,503
|
|
|
1,360,887
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
3,001,377
|
|
|
$
|
2,174,592
|
|
|
$
|
1,878,503
|
|
|
|
|
|
|
|
|
|
||||||
Change in Interest Rates
(Basis Points)
|
|
Net Interest Income Volatility
(1)
|
||||
|
December 31,
|
|||||
|
2018
|
|
2017
|
|||
+200
|
|
16.6
|
%
|
|
18.9
|
%
|
+100
|
|
8.4
|
%
|
|
10.7
|
%
|
-100
|
|
(8.3
|
)%
|
|
(7.4
|
)%
|
-200
|
|
(16.7
|
)%
|
|
(12.6
|
)%
|
|
(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.
|
|
|
|
|
Change in Interest Rates
(Basis Points) |
|
Net Interest Income Volatility
(1)
|
|
|
December 31, 2018
|
||
+200 Rate Ramp
|
|
6.3
|
%
|
+100 Rate Ramp
|
|
3.0
|
%
|
-100 Rate Ramp
|
|
(3.0
|
)%
|
-200 Rate Ramp
|
|
(6.3
|
)%
|
|
|
|
(1)
|
The percentage change represents net interest income under a gradual non-parallel shift in even quarterly increments over 12 months.
|
|
||||||
Change in Interest Rates
(Basis Points)
|
|
EVE Volatility
(1)
|
||||
|
December 31,
|
|||||
|
2018
|
|
2017
|
|||
+200
|
|
6.3
|
%
|
|
7.1
|
%
|
+100
|
|
1.2
|
%
|
|
3.2
|
%
|
-100
|
|
(3.1
|
)%
|
|
(3.5
|
)%
|
-200
|
|
(11.9
|
)%
|
|
(8.8
|
)%
|
|
(1)
|
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.
|
|
|||||||||||||
($ and shares in thousands, except per share data)
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||
Net income
|
(a)
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
Add: Impact of the Tax Act
|
|
|
—
|
|
|
41,689
|
|
|
—
|
|
|||
Less: Gain on sale of the commercial property
|
|
|
—
|
|
|
(71,654
|
)
|
|
—
|
|
|||
Gain on sale of business
|
|
|
(31,470
|
)
|
|
(3,807
|
)
|
|
—
|
|
|||
Add: Tax effect of adjustments
(1)
|
|
|
9,303
|
|
|
31,729
|
|
|
—
|
|
|||
Non-GAAP net income
|
(b)
|
|
$
|
681,534
|
|
|
$
|
503,581
|
|
|
$
|
431,677
|
|
|
|
|
|
|
|
|
|
||||||
Diluted weighted-average number of shares outstanding
|
|
|
146,169
|
|
|
145,913
|
|
|
145,172
|
|
|||
|
|
|
|
|
|
|
|
||||||
Diluted EPS
|
|
|
$
|
4.81
|
|
|
$
|
3.47
|
|
|
$
|
2.97
|
|
Diluted EPS impact of the Tax Cuts and Jobs Act
|
|
|
—
|
|
|
0.29
|
|
|
—
|
|
|||
Diluted EPS impact of gain on sale of the commercial property, net of tax
|
|
|
—
|
|
|
(0.28
|
)
|
|
—
|
|
|||
Diluted EPS impact of gain on sale of business, net of tax
|
|
|
(0.15
|
)
|
|
(0.02
|
)
|
|
—
|
|
|||
Non-GAAP diluted EPS
|
|
|
$
|
4.66
|
|
|
$
|
3.46
|
|
|
$
|
2.97
|
|
|
|
|
|
|
|
|
|
||||||
Average total assets
|
(c)
|
|
$
|
38,542,569
|
|
|
$
|
35,787,613
|
|
|
$
|
33,169,373
|
|
Average stockholders’ equity
|
(d)
|
|
$
|
4,130,822
|
|
|
$
|
3,687,213
|
|
|
$
|
3,305,929
|
|
Return on average assets
|
(a)/(c)
|
|
1.83
|
%
|
|
1.41
|
%
|
|
1.30
|
%
|
|||
Non-GAAP return on average assets
|
(b)/(c)
|
|
1.77
|
%
|
|
1.41
|
%
|
|
1.30
|
%
|
|||
Return on average equity
|
(a)/(d)
|
|
17.04
|
%
|
|
13.71
|
%
|
|
13.06
|
%
|
|||
Non-GAAP return on average equity
|
(b)/(d)
|
|
16.50
|
%
|
|
13.66
|
%
|
|
13.06
|
%
|
|||
|
(1)
|
Statutory rates of 29.56% and 42.05% were applied for
2018
and
2017
, respectively.
|
|
||||||||
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
516,291
|
|
|
$
|
457,181
|
|
Interest-bearing cash with banks
|
|
2,485,086
|
|
|
1,717,411
|
|
||
Cash and cash equivalents
|
|
3,001,377
|
|
|
2,174,592
|
|
||
Interest-bearing deposits with banks
|
|
371,000
|
|
|
398,422
|
|
||
Securities purchased under resale agreements (“resale agreements”)
|
|
1,035,000
|
|
|
1,050,000
|
|
||
Securities:
|
|
|
|
|
||||
Available-for-sale investment securities, at fair value (includes assets pledged as collateral of $435,833 in 2018 and $534,327 in 2017)
|
|
2,741,847
|
|
|
3,016,752
|
|
||
Restricted equity securities, at cost
|
|
74,069
|
|
|
73,521
|
|
||
Loans held-for-sale
|
|
275
|
|
|
85
|
|
||
Loans held-for-investment (net of allowance for loan losses of $311,322 in 2018 and $287,128 in 2017;
includes assets pledged as collateral of $20,590,035 in 2018 and $18,880,598 in 2017)
|
|
32,073,867
|
|
|
28,688,590
|
|
||
Investments in qualified affordable housing partnerships, net
|
|
184,873
|
|
|
162,824
|
|
||
Investments in tax credit and other investments, net
|
|
231,635
|
|
|
224,551
|
|
||
Premises and equipment (net of accumulated depreciation of $118,547 in 2018 and $111,898 in 2017)
|
|
119,180
|
|
|
121,209
|
|
||
Goodwill
|
|
465,547
|
|
|
469,433
|
|
||
Branch assets held-for-sale
|
|
—
|
|
|
91,318
|
|
||
Other assets
|
|
743,686
|
|
|
650,266
|
|
||
TOTAL
|
|
$
|
41,042,356
|
|
|
$
|
37,121,563
|
|
LIABILITIES
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
11,377,009
|
|
|
$
|
10,887,306
|
|
Interest-bearing
|
|
24,062,619
|
|
|
20,727,757
|
|
||
Total deposits
|
|
35,439,628
|
|
|
31,615,063
|
|
||
Branch liability held-for-sale
|
|
—
|
|
|
605,111
|
|
||
Short-term borrowings
|
|
57,638
|
|
|
—
|
|
||
Federal Home Loan Bank (“FHLB”) advances
|
|
326,172
|
|
|
323,891
|
|
||
Securities sold under repurchase agreements (“repurchase agreements”)
|
|
50,000
|
|
|
50,000
|
|
||
Long-term debt
|
|
146,835
|
|
|
171,577
|
|
||
Accrued expenses and other liabilities
|
|
598,109
|
|
|
513,970
|
|
||
Total liabilities
|
|
36,618,382
|
|
|
33,279,612
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 14)
|
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,867,587 and 165,214,770 shares issued in 2018 and 2017, respectively
|
|
166
|
|
|
165
|
|
||
Additional paid-in capital
|
|
1,789,811
|
|
|
1,755,330
|
|
||
Retained earnings
|
|
3,160,132
|
|
|
2,576,302
|
|
||
Treasury stock, at cost — 20,906,224 shares in 2018 and 20,671,710 shares in 2017
|
|
(467,961
|
)
|
|
(452,327
|
)
|
||
Accumulated other comprehensive loss (“AOCI”), net of tax
|
|
(58,174
|
)
|
|
(37,519
|
)
|
||
Total stockholders’ equity
|
|
4,423,974
|
|
|
3,841,951
|
|
||
TOTAL
|
|
$
|
41,042,356
|
|
|
$
|
37,121,563
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
|
|
|
|
|
|
|||
Loans receivable, including fees
|
|
$
|
1,503,514
|
|
|
$
|
1,198,440
|
|
|
$
|
1,035,377
|
|
Investment securities
|
|
60,911
|
|
|
58,670
|
|
|
53,399
|
|
|||
Resale agreements
|
|
29,328
|
|
|
32,095
|
|
|
30,547
|
|
|||
Restricted equity securities
|
|
3,146
|
|
|
2,524
|
|
|
3,427
|
|
|||
Interest-bearing cash and deposits with banks
|
|
54,804
|
|
|
33,390
|
|
|
14,731
|
|
|||
Total interest and dividend income
|
|
1,651,703
|
|
|
1,325,119
|
|
|
1,137,481
|
|
|||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
234,752
|
|
|
116,391
|
|
|
84,224
|
|
|||
Federal funds purchased and other short-term borrowings
|
|
1,398
|
|
|
1,003
|
|
|
713
|
|
|||
FHLB advances
|
|
10,447
|
|
|
7,751
|
|
|
5,585
|
|
|||
Repurchase agreements
|
|
12,110
|
|
|
9,476
|
|
|
9,304
|
|
|||
Long-term debt
|
|
6,488
|
|
|
5,429
|
|
|
5,017
|
|
|||
Total interest expense
|
|
265,195
|
|
|
140,050
|
|
|
104,843
|
|
|||
Net interest income before provision for credit losses
|
|
1,386,508
|
|
|
1,185,069
|
|
|
1,032,638
|
|
|||
Provision for credit losses
|
|
64,255
|
|
|
46,266
|
|
|
27,479
|
|
|||
Net interest income after provision for credit losses
|
|
1,322,253
|
|
|
1,138,803
|
|
|
1,005,159
|
|
|||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|||
Branch fees
|
|
39,859
|
|
|
40,925
|
|
|
39,654
|
|
|||
Letters of credit fees and foreign exchange income
|
|
56,282
|
|
|
44,344
|
|
|
47,284
|
|
|||
Ancillary loan fees and other income
|
|
24,052
|
|
|
23,333
|
|
|
19,352
|
|
|||
Wealth management fees
|
|
13,785
|
|
|
13,974
|
|
|
12,600
|
|
|||
Derivative fees and other income
|
|
18,980
|
|
|
17,671
|
|
|
16,781
|
|
|||
Net gains on sales of loans
|
|
6,590
|
|
|
8,870
|
|
|
6,085
|
|
|||
Net gains on sales of available-for-sale investment securities
|
|
2,535
|
|
|
8,037
|
|
|
10,362
|
|
|||
Net gains on sales of fixed assets
|
|
6,683
|
|
|
77,388
|
|
|
3,178
|
|
|||
Net gain on sale of business
|
|
31,470
|
|
|
3,807
|
|
|
—
|
|
|||
Other fees and operating income
|
|
10,673
|
|
|
19,399
|
|
|
26,982
|
|
|||
Total noninterest income
|
|
210,909
|
|
|
257,748
|
|
|
182,278
|
|
|||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|||
Compensation and employee benefits
|
|
379,622
|
|
|
335,291
|
|
|
300,115
|
|
|||
Occupancy and equipment expense
|
|
68,896
|
|
|
64,921
|
|
|
61,453
|
|
|||
Deposit insurance premiums and regulatory assessments
|
|
21,211
|
|
|
23,735
|
|
|
23,279
|
|
|||
Legal expense
|
|
8,781
|
|
|
11,444
|
|
|
2,841
|
|
|||
Data processing
|
|
13,177
|
|
|
12,093
|
|
|
11,683
|
|
|||
Consulting expense
|
|
11,579
|
|
|
14,922
|
|
|
22,742
|
|
|||
Deposit related expense
|
|
11,244
|
|
|
9,938
|
|
|
10,394
|
|
|||
Computer software expense
|
|
22,286
|
|
|
18,183
|
|
|
12,914
|
|
|||
Other operating expense
|
|
88,042
|
|
|
82,974
|
|
|
86,382
|
|
|||
Amortization of tax credit and other investments
|
|
89,628
|
|
|
87,950
|
|
|
83,446
|
|
|||
Total noninterest expense
|
|
714,466
|
|
|
661,451
|
|
|
615,249
|
|
|||
INCOME BEFORE INCOME TAXES
|
|
818,696
|
|
|
735,100
|
|
|
572,188
|
|
|||
INCOME TAX EXPENSE
|
|
114,995
|
|
|
229,476
|
|
|
140,511
|
|
|||
NET INCOME
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
EARNINGS PER SHARE (“EPS”)
|
|
|
|
|
|
|
||||||
BASIC
|
|
$
|
4.86
|
|
|
$
|
3.50
|
|
|
$
|
3.00
|
|
DILUTED
|
|
$
|
4.81
|
|
|
$
|
3.47
|
|
|
$
|
2.97
|
|
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
||||||
BASIC
|
|
144,862
|
|
|
144,444
|
|
|
144,087
|
|
|||
DILUTED
|
|
146,169
|
|
|
145,913
|
|
|
145,172
|
|
|||
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
||||||
Net changes in unrealized losses on available-for-sale investment securities
|
|
(8,652
|
)
|
|
(2,126
|
)
|
|
(22,628
|
)
|
|||
Foreign currency translation adjustments
|
|
(5,732
|
)
|
|
12,753
|
|
|
(10,577
|
)
|
|||
Other comprehensive (loss) income
|
|
(14,384
|
)
|
|
10,627
|
|
|
(33,205
|
)
|
|||
COMPREHENSIVE INCOME
|
|
$
|
689,317
|
|
|
$
|
516,251
|
|
|
$
|
398,472
|
|
|
|
|||||||||||||||||||||||
|
|
Common Stock and
Additional Paid-in Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
AOCI,
Net of Tax |
|
Total
Stockholders’ Equity |
|||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
||||||||||||||||
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
|
)
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
258,218
|
|
|
26,139
|
|
|
—
|
|
|
(3,225
|
)
|
|
—
|
|
|
22,914
|
|
|||||
Cash dividends on common stock ($0.80 per share)
|
|
—
|
|
|
—
|
|
|
(116,595
|
)
|
|
—
|
|
|
—
|
|
|
(116,595
|
)
|
|||||
BALANCE, DECEMBER 31, 2016
|
|
144,167,451
|
|
|
$
|
1,727,598
|
|
|
$
|
2,187,676
|
|
|
$
|
(439,387
|
)
|
|
$
|
(48,146
|
)
|
|
$
|
3,427,741
|
|
Net income
|
|
—
|
|
|
—
|
|
|
505,624
|
|
|
—
|
|
|
—
|
|
|
505,624
|
|
|||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,627
|
|
|
10,627
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
375,609
|
|
|
27,897
|
|
|
—
|
|
|
(12,940
|
)
|
|
—
|
|
|
14,957
|
|
|||||
Cash dividends on common stock ($0.80 per share)
|
|
—
|
|
|
—
|
|
|
(116,998
|
)
|
|
—
|
|
|
—
|
|
|
(116,998
|
)
|
|||||
BALANCE, DECEMBER 31, 2017
|
|
144,543,060
|
|
|
$
|
1,755,495
|
|
|
$
|
2,576,302
|
|
|
$
|
(452,327
|
)
|
|
$
|
(37,519
|
)
|
|
$
|
3,841,951
|
|
Cumulative effect of change in accounting principle related to marketable equity securities
(1)
|
|
—
|
|
|
—
|
|
|
(545
|
)
|
|
—
|
|
|
385
|
|
|
(160
|
)
|
|||||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate
(2)
|
|
—
|
|
|
—
|
|
|
6,656
|
|
|
—
|
|
|
(6,656
|
)
|
|
—
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
703,701
|
|
|
—
|
|
|
—
|
|
|
703,701
|
|
|||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,384
|
)
|
|
(14,384
|
)
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
418,303
|
|
|
34,482
|
|
|
—
|
|
|
(15,634
|
)
|
|
—
|
|
|
18,848
|
|
|||||
Cash dividends on common stock ($0.86 per share)
|
|
—
|
|
|
—
|
|
|
(125,982
|
)
|
|
—
|
|
|
—
|
|
|
(125,982
|
)
|
|||||
BALANCE, DECEMBER 31, 2018
|
|
144,961,363
|
|
|
$
|
1,789,977
|
|
|
$
|
3,160,132
|
|
|
$
|
(467,961
|
)
|
|
$
|
(58,174
|
)
|
|
$
|
4,423,974
|
|
|
(1)
|
Represents the impact of the adoption of Accounting Standards Update (“ASU”) 2016-01,
Financial Instruments — Overall
(Subtopic 825-10)
: Recognition and Measurement of Financial Assets and Financial Liabilities
in the first quarter of 2018. Refer to
Note 1
—
Summary of Significant Accounting Policies
to the Consolidated Financial Statements for additional information.
|
(2)
|
Represents amounts reclassified from AOCI to retained earnings due to the early adoption of ASU 2018-02,
Income Statement — Reporting Comprehensive Income
(Topic 220)
: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
in the first quarter of 2018. Refer to
Note 1
—
Summary of Significant Accounting Policies
to the Consolidated Financial Statements for additional information.
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
|
139,499
|
|
|
149,822
|
|
|
137,578
|
|
|||
Accretion of discount and amortization of premiums, net
|
|
(20,572
|
)
|
|
(7,260
|
)
|
|
(26,024
|
)
|
|||
Stock compensation costs
|
|
30,937
|
|
|
24,657
|
|
|
22,102
|
|
|||
Deferred income tax (benefit) expense
|
|
(16,470
|
)
|
|
33,856
|
|
|
26,966
|
|
|||
Provision for credit losses
|
|
64,255
|
|
|
46,266
|
|
|
27,479
|
|
|||
Net gains on sales of loans
|
|
(6,590
|
)
|
|
(8,870
|
)
|
|
(6,085
|
)
|
|||
Net gains on sales of available-for-sale investment securities
|
|
(2,535
|
)
|
|
(8,037
|
)
|
|
(10,362
|
)
|
|||
Net gains on sales of fixed assets
|
|
(6,683
|
)
|
|
(77,388
|
)
|
|
(3,178
|
)
|
|||
Net gain on sale of business
|
|
(31,470
|
)
|
|
(3,807
|
)
|
|
—
|
|
|||
Loans held-for-sale:
|
|
|
|
|
|
|
||||||
Originations and purchases
|
|
(20,176
|
)
|
|
(20,521
|
)
|
|
(18,804
|
)
|
|||
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale
|
|
20,068
|
|
|
21,363
|
|
|
23,749
|
|
|||
Proceeds from distributions received from equity method investees
|
|
3,761
|
|
|
3,582
|
|
|
4,690
|
|
|||
Net change in accrued interest receivable and other assets
|
|
(60,791
|
)
|
|
45,354
|
|
|
23,205
|
|
|||
Net change in accrued expenses and other liabilities
|
|
88,070
|
|
|
(1,965
|
)
|
|
15,354
|
|
|||
Other net operating activities
|
|
(1,832
|
)
|
|
599
|
|
|
1,836
|
|
|||
Total adjustments
|
|
179,471
|
|
|
197,651
|
|
|
218,506
|
|
|||
Net cash provided by operating activities
|
|
883,172
|
|
|
703,275
|
|
|
650,183
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Net (increase) decrease in:
|
|
|
|
|
|
|
|
|
|
|||
Investments in qualified affordable housing partnerships, tax credit and other investments
|
|
(132,605
|
)
|
|
(173,630
|
)
|
|
(100,514
|
)
|
|||
Interest-bearing deposits with banks
|
|
4,212
|
|
|
(63,096
|
)
|
|
(38,249
|
)
|
|||
Resale agreements:
|
|
|
|
|
|
|
||||||
Proceeds from paydowns and maturities
|
|
175,000
|
|
|
1,250,000
|
|
|
1,500,000
|
|
|||
Purchases
|
|
(160,000
|
)
|
|
(600,000
|
)
|
|
(1,550,000
|
)
|
|||
Available-for-sale investment securities:
|
|
|
|
|
|
|
||||||
Proceeds from sales
|
|
364,270
|
|
|
832,844
|
|
|
1,275,645
|
|
|||
Proceeds from repayments, maturities and redemptions
|
|
742,132
|
|
|
413,593
|
|
|
1,503,127
|
|
|||
Purchases
|
|
(888,673
|
)
|
|
(828,604
|
)
|
|
(2,396,199
|
)
|
|||
Loans held-for-investment:
|
|
|
|
|
|
|
||||||
Proceeds from sales of loans originally classified as held-for-investment
|
|
483,948
|
|
|
566,688
|
|
|
661,025
|
|
|||
Purchases
|
|
(597,112
|
)
|
|
(534,816
|
)
|
|
(1,142,054
|
)
|
|||
Other changes in loans held-for-investment, net
|
|
(3,313,382
|
)
|
|
(3,514,786
|
)
|
|
(1,549,736
|
)
|
|||
Premises and equipment:
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales
|
|
1,638
|
|
|
119,749
|
|
|
8,163
|
|
|||
Purchases
|
|
(13,787
|
)
|
|
(13,754
|
)
|
|
(12,181
|
)
|
|||
Sales of businesses, net of cash transferred:
|
|
|
|
|
|
|
||||||
Proceeds
|
|
—
|
|
|
3,633
|
|
|
—
|
|
|||
Payments
|
|
(503,687
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from sales of other real estate owned (“OREO”)
|
|
4,484
|
|
|
6,999
|
|
|
7,408
|
|
|||
Proceeds from distributions received from equity method investees
|
|
5,185
|
|
|
8,387
|
|
|
7,964
|
|
|||
Other net investing activities
|
|
(4,035
|
)
|
|
19,969
|
|
|
25,515
|
|
|||
Net cash used in investing activities
|
|
(3,832,412
|
)
|
|
(2,506,824
|
)
|
|
(1,800,086
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Net increase in deposits
|
|
3,903,192
|
|
|
2,272,500
|
|
|
2,452,870
|
|
|||
Net increase (decrease) in short-term borrowings
|
|
61,392
|
|
|
(61,560
|
)
|
|
62,506
|
|
|||
Repayment of FHLB advances
|
|
—
|
|
|
—
|
|
|
(700,000
|
)
|
|||
Repayment of long-term debt
|
|
(25,000
|
)
|
|
(15,000
|
)
|
|
(20,000
|
)
|
|||
Common stock:
|
|
|
|
|
|
|
||||||
Proceeds from issuance pursuant to various stock compensation plans and agreements
|
|
2,846
|
|
|
2,280
|
|
|
2,081
|
|
|||
Stocks tendered for payment of withholding taxes
|
|
(15,634
|
)
|
|
(12,940
|
)
|
|
(3,225
|
)
|
|||
Cash dividends paid
|
|
(125,988
|
)
|
|
(116,820
|
)
|
|
(115,828
|
)
|
|||
Other net financing activities
|
|
—
|
|
|
—
|
|
|
1,055
|
|
|||
Net cash provided by financing activities
|
|
3,800,808
|
|
|
2,068,460
|
|
|
1,679,459
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(24,783
|
)
|
|
31,178
|
|
|
(11,940
|
)
|
|||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
826,785
|
|
|
296,089
|
|
|
517,616
|
|
|||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
2,174,592
|
|
|
1,878,503
|
|
|
1,360,887
|
|
|||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
3,001,377
|
|
|
$
|
2,174,592
|
|
|
$
|
1,878,503
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
|
|
|
|
|||
Interest
|
|
$
|
253,026
|
|
|
$
|
138,766
|
|
|
$
|
104,251
|
|
Income taxes, net
|
|
$
|
85,872
|
|
|
$
|
98,126
|
|
|
$
|
39,478
|
|
Noncash investing and financing activities:
|
|
|
|
|
|
|
||||||
Loans transferred from held-for-investment to held-for-sale
(1)
|
|
$
|
481,593
|
|
|
$
|
613,088
|
|
|
$
|
819,100
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
2,306
|
|
|
$
|
—
|
|
|
$
|
4,943
|
|
Deposits transferred to branch liability held-for-sale
|
|
$
|
—
|
|
|
$
|
605,111
|
|
|
$
|
—
|
|
Investment security transferred from held-to-maturity to available-for-sale
|
|
$
|
—
|
|
|
$
|
115,615
|
|
|
$
|
—
|
|
Held-to-maturity investment security retained from securitization of loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
160,135
|
|
Premises and equipment transferred to branch assets held-for-sale
|
|
$
|
—
|
|
|
$
|
8,043
|
|
|
$
|
—
|
|
Loans transferred to OREO
|
|
$
|
1,206
|
|
|
$
|
777
|
|
|
$
|
8,083
|
|
|
(1)
|
December 31, 2017
amount includes loans transferred from held-for-investment to branch assets held-for-sale.
|
|
||
Premises and Equipment
|
|
Useful Lives
|
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
|
|
Standard
|
Required Date of Adoption
|
Description
|
Effects on Financial Statements
|
Standards Adopted in 2018
|
|||
ASU 2014-09,
Revenue from Contracts with Customers
(Topic 606) and subsequent related ASUs
|
January 1, 2018
Early adoption is permitted on January 1, 2017. |
These ASUs supersede the revenue recognition guidance in ASC Topic 605,
Revenue Recognition
, and most industry-specific guidance. The core principle of these ASUs is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires new quantitative and qualitative disclosures including the disaggregation of revenues and descriptions of performance obligations.
|
The Company adopted this guidance as of January 1, 2018 using the modified retrospective method. There was no cumulative effect adjustment to retained earnings as a result of this adoption. The scope of this new guidance explicitly excludes net interest income, as well as other revenues from financial instruments including loans, leases, securities and derivatives. Since the Company’s revenue is comprised of net interest income and noninterest income, the majority of the Company’s revenues are not affected. In addition, the new guidance does not materially impact the timing or measurement of the Company’s revenue recognition as it is consistent with the Company’s previously existing accounting for contracts within the scope of the new standard. The Company has provided a disaggregation of the significant categories of revenues within the scope of this guidance and expanded the qualitative disclosures of the Company’s noninterest income. See
Note 12 — Revenue from Contracts with Customers
to the Consolidated Financial Statements for additional information.
|
Standard
|
Required Date of Adoption
|
Description
|
Effects on Financial Statements
|
Standards Adopted in 2018 (continued)
|
|||
ASU 2016-01,
Financial Instruments — Overall
(Subtopic 825-10)
: Recognition and Measurement of Financial Assets and Financial Liabilities
|
January 1, 2018
Early adoption is not permitted, except for certain provisions discussed in the “Description” column.
|
The guidance amends ASC Topic 825,
Financial Instruments—Overall,
and requires investments in marketable equity securities, except for those accounted for under the equity method of accounting or consolidated, to be accounted for at fair value through net income. The guidance also provides a measurement alternative for equity securities without readily determinable fair values to be measured at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Such price changes (if any) are reflected in earnings beginning in the period of adoption. The guidance also requires fair value changes arising from changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option to be recognized in other comprehensive income in which early adoption is permitted for this requirement, and the use of exit price to measure the fair value of financial instruments for disclosure purposes. In addition, the guidance eliminates the requirement to disclose methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the Consolidated Balance Sheet.
|
On January 1, 2018, with the exception of the amendments related to equity investments without readily determinable fair values and the use of exit price to measure the fair value of financial instruments for disclosure purposes that were adopted prospectively, the Company adopted all other amendments of the standard on a modified retrospective basis. As of the date of adoption, the Company reclassified approximately $31.9 million of marketable equity securities that were previously classified as
Available-for-sale investment securities
,
at fair value
to
Investments in tax credits and other investments, net
. In addition, the Company recorded a cumulative-effect adjustment that reduced retained earnings by $545 thousand and increased AOCI by $385 thousand as of January 1, 2018. The Company elected the measurement alternative for its privately held cost method investments, which was not a material amount. The Company’s investments in the Federal Reserve Bank of San Francisco ("FRB") and FHLB stock are not subject to this guidance and continue to be accounted for at cost. Furthermore, for purposes of disclosing the fair value of financial instruments carried at amortized cost, the Company has updated its valuation methods as necessary to conform to an exit price concept as required by the guidance as of January 1, 2018. The remaining provisions and disclosure requirements of this ASU did not have a material impact on the Company’s Consolidated Financial Statements or related disclosures.
|
ASU 2016-15,
Statement of Cash Flows
(Topic 230):
Classification of Certain Cash Receipts and Cash Payments
|
January 1, 2018
Early adoption is permitted
|
This ASU amends ASC Topic 230,
Statement of Cash Flows
, and provides guidance on eight specific issues related to classification on the Consolidated Statement of Cash Flows. The specific issues cover cash payments for debt prepayment or debt extinguishment costs; cash outflows for settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowings; contingent consideration payments that are not made soon after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; and beneficial interests received in securitization transactions. The guidance also clarifies that in instances of cash flows with multiple aspects that cannot be separately identified, the classification should be based on the activity that is likely to be the predominant source or use of the cash flows.
|
The Company adopted this guidance on a retrospective basis on January 1, 2018. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements.
|
•
|
Level 1
|
—
|
Valuation is based on quoted prices for identical instruments traded in active markets.
|
•
|
Level 2
|
—
|
Valuation is based on quoted prices for similar instruments traded in active markets; quoted prices for identical or similar instruments traded in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data.
|
•
|
Level 3
|
—
|
Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 2018 |
||||||||||||||
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
Fair Value
|
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
564,815
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
564,815
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
—
|
|
|
217,173
|
|
|
—
|
|
|
217,173
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
408,603
|
|
|
—
|
|
|
408,603
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
946,693
|
|
|
—
|
|
|
946,693
|
|
||||
Municipal securities
|
|
—
|
|
|
82,020
|
|
|
—
|
|
|
82,020
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
—
|
|
|
26,052
|
|
|
—
|
|
|
26,052
|
|
||||
Residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
—
|
|
|
9,931
|
|
|
—
|
|
|
9,931
|
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
—
|
|
|
10,869
|
|
|
—
|
|
|
10,869
|
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
—
|
|
|
463,048
|
|
|
—
|
|
|
463,048
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
—
|
|
|
12,643
|
|
|
—
|
|
|
12,643
|
|
||||
Total available-for-sale investment securities
|
|
$
|
564,815
|
|
|
$
|
2,177,032
|
|
|
$
|
—
|
|
|
$
|
2,741,847
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments in tax credit and other investments:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities with readily determinable fair value
(1)
|
|
$
|
20,678
|
|
|
$
|
10,531
|
|
|
$
|
—
|
|
|
$
|
31,209
|
|
Total investments in tax credit and other investments
|
|
$
|
20,678
|
|
|
$
|
10,531
|
|
|
$
|
—
|
|
|
$
|
31,209
|
|
|
(1)
|
Equity securities with readily determinable fair value were comprised of mutual funds as of
December 31, 2018
.
|
|
||||||||||||||||
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 2018 |
||||||||||||||
($ in thousands)
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
Fair Value
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
69,818
|
|
|
$
|
—
|
|
|
$
|
69,818
|
|
Foreign exchange contracts
|
|
—
|
|
|
21,624
|
|
|
—
|
|
|
21,624
|
|
||||
Credit contracts
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Equity contracts
|
|
—
|
|
|
1,278
|
|
|
673
|
|
|
1,951
|
|
||||
Commodity contracts
|
|
—
|
|
|
14,422
|
|
|
—
|
|
|
14,422
|
|
||||
Gross derivative assets
|
|
$
|
—
|
|
|
$
|
107,143
|
|
|
$
|
673
|
|
|
$
|
107,816
|
|
Netting adjustments
(2)
|
|
$
|
—
|
|
|
$
|
(45,146
|
)
|
|
$
|
—
|
|
|
$
|
(45,146
|
)
|
Net derivative assets
|
|
$
|
—
|
|
|
$
|
61,997
|
|
|
$
|
673
|
|
|
$
|
62,670
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
75,133
|
|
|
$
|
—
|
|
|
$
|
75,133
|
|
Foreign exchange contracts
|
|
—
|
|
|
19,940
|
|
|
—
|
|
|
19,940
|
|
||||
Credit contracts
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
||||
Commodity contracts
|
|
—
|
|
|
23,068
|
|
|
—
|
|
|
23,068
|
|
||||
Gross derivative liabilities
|
|
$
|
—
|
|
|
$
|
118,305
|
|
|
$
|
—
|
|
|
$
|
118,305
|
|
Netting adjustments
(2)
|
|
$
|
—
|
|
|
$
|
(38,402
|
)
|
|
$
|
—
|
|
|
$
|
(38,402
|
)
|
Net derivative liabilities
|
|
$
|
—
|
|
|
$
|
79,903
|
|
|
$
|
—
|
|
|
$
|
79,903
|
|
|
(2)
|
Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See
Note 6
—
Derivatives
to the Consolidated Financial Statements for additional information.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 2017 |
||||||||||||||
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
Fair Value
|
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
640,280
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
640,280
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
—
|
|
|
203,392
|
|
|
—
|
|
|
203,392
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
318,957
|
|
|
—
|
|
|
318,957
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
1,190,271
|
|
|
—
|
|
|
1,190,271
|
|
||||
Municipal securities
|
|
—
|
|
|
99,982
|
|
|
—
|
|
|
99,982
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
—
|
|
|
9,117
|
|
|
—
|
|
|
9,117
|
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
—
|
|
|
37,003
|
|
|
—
|
|
|
37,003
|
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
|
|
—
|
|
|
486,408
|
|
|
—
|
|
|
486,408
|
|
||||
Other securities
|
|
20,735
|
|
|
10,607
|
|
|
—
|
|
|
31,342
|
|
||||
Total available-for-sale investment securities
|
|
$
|
661,015
|
|
|
$
|
2,355,737
|
|
|
$
|
—
|
|
|
$
|
3,016,752
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
59,564
|
|
|
$
|
—
|
|
|
$
|
59,564
|
|
Foreign exchange contracts
|
|
—
|
|
|
5,840
|
|
|
—
|
|
|
5,840
|
|
||||
Credit contracts
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Equity contracts
|
|
—
|
|
|
993
|
|
|
679
|
|
|
1,672
|
|
||||
Gross derivative assets
|
|
$
|
—
|
|
|
$
|
66,398
|
|
|
$
|
679
|
|
|
$
|
67,077
|
|
Netting adjustments
(1)
|
|
$
|
—
|
|
|
$
|
(28,686
|
)
|
|
$
|
—
|
|
|
$
|
(28,686
|
)
|
Net derivative assets
|
|
$
|
—
|
|
|
$
|
37,712
|
|
|
$
|
679
|
|
|
$
|
38,391
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
65,660
|
|
|
$
|
—
|
|
|
$
|
65,660
|
|
Foreign exchange contracts
|
|
—
|
|
|
10,170
|
|
|
—
|
|
|
10,170
|
|
||||
Credit contracts
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||
Gross derivative liabilities
|
|
$
|
—
|
|
|
$
|
75,838
|
|
|
$
|
—
|
|
|
$
|
75,838
|
|
Netting adjustments
(1)
|
|
$
|
—
|
|
|
$
|
(31,342
|
)
|
|
$
|
—
|
|
|
$
|
(31,342
|
)
|
Net derivative liabilities
|
|
$
|
—
|
|
|
$
|
44,496
|
|
|
$
|
—
|
|
|
$
|
44,496
|
|
|
(1)
|
Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See
Note 6
—
Derivatives
to the Consolidated Financial Statements for additional information.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|||||||||
|
Equity
Warrants
|
|
Other
Securities
|
|
Equity
Warrants
|
|||||||
Beginning balance
|
|
$
|
679
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Transfer of investment security from held-to-maturity to available-for-sale
|
|
—
|
|
|
115,615
|
|
|
—
|
|
|||
Total gains included in earnings
(1)
|
|
162
|
|
|
1,156
|
|
|
—
|
|
|||
Issuances, sales and settlements:
|
|
|
|
|
|
|
||||||
Issuances
|
|
65
|
|
|
—
|
|
|
679
|
|
|||
Sales
|
|
—
|
|
|
(116,771
|
)
|
|
—
|
|
|||
Settlements
|
|
(233
|
)
|
|
—
|
|
|
—
|
|
|||
Ending balance
|
|
$
|
673
|
|
|
$
|
—
|
|
|
$
|
679
|
|
|
(1)
|
Includes unrealized gains of
$225 thousand
for the year ended
December 31,
2018
. There were
no
unrealized gains (losses) for the year ended December 31, 2017. Net realized/unrealized gains of equity warrants are included in
Ancillary loan fees and other income
on the Consolidated Statement of Income. Net realized gains of other securities are included in
Net gains on sales of available-for-sale investment securities
on the Consolidated Statement of Income.
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
(Level 3)
|
|
Valuation
Technique
|
|
Unobservable
Inputs
|
|
Range of
Inputs |
|
Weighted-
Average
(1)
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||
Equity warrants
|
|
$
|
673
|
|
|
Black-Scholes option pricing model
|
|
Volatility
|
|
49% — 52%
|
|
51%
|
|
|
|
|
|
|
Liquidity discount
|
|
47%
|
|
47%
|
||
|
(1)
|
Weighted-average is calculated based on fair value of equity warrants as of
December 31, 2018
.
|
•
|
Discounted cash flows valuation techniques generally consist of developing an expected stream of cash flows over the life of the loans and then valuing the loans at the present value by discounting the expected cash flows at a designated discount rate.
|
•
|
A specific reserve is established for an impaired loan based on the fair value of the underlying collateral, which may take the form of real estate, inventory, equipment, contracts or guarantees. The fair value of the underlying collateral is generally based on third-party appraisals, or an internal evaluation if a third-party appraisal is not required by regulations, which utilize one or more valuation techniques such as income, market and/or cost approaches.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 2018 |
||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
26,873
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,873
|
|
CRE
|
|
3,434
|
|
|
—
|
|
|
—
|
|
|
3,434
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||||||
Single-family residential
|
|
2,551
|
|
|
—
|
|
|
—
|
|
|
2,551
|
|
||||
Total non-PCI impaired loans
|
|
$
|
32,858
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,858
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 2017 |
||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
31,404
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,404
|
|
CRE
|
|
2,667
|
|
|
—
|
|
|
—
|
|
|
2,667
|
|
||||
Construction and land
|
|
3,973
|
|
|
—
|
|
|
—
|
|
|
3,973
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||||||
Single-family residential
|
|
144
|
|
|
—
|
|
|
—
|
|
|
144
|
|
||||
Total non-PCI impaired loans
|
|
$
|
38,188
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,188
|
|
OREO
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
(9,341
|
)
|
|
$
|
(19,703
|
)
|
|
$
|
(27,106
|
)
|
CRE
|
|
270
|
|
|
(272
|
)
|
|
1,084
|
|
|||
Construction and land
|
|
—
|
|
|
(147
|
)
|
|
—
|
|
|||
Consumer:
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
15
|
|
|
(11
|
)
|
|
(224
|
)
|
|||
HELOCs
|
|
—
|
|
|
—
|
|
|
34
|
|
|||
Other consumer
|
|
—
|
|
|
(2,491
|
)
|
|
—
|
|
|||
Total non-PCI impaired loans nonrecurring fair value losses
|
|
$
|
(9,056
|
)
|
|
$
|
(22,624
|
)
|
|
$
|
(26,212
|
)
|
OREO nonrecurring fair value losses
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(23
|
)
|
Loans held-for-sale lower of cost or fair value adjustments
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5,565
|
)
|
|
|
|||||||||||||
($ in thousands)
|
|
Fair Value
Measurements (Level 3) |
|
Valuation
Technique(s) |
|
Unobservable
Input(s) |
|
Range
of
Input(s)
|
|
Weighted-
Average (1) |
|||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||
Non-PCI impaired loans
|
|
$
|
16,921
|
|
|
Discounted cash flows
|
|
Discount
|
|
4% — 7%
|
|
6
|
%
|
|
|
$
|
1,687
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8
|
%
|
|
|
$
|
2,751
|
|
|
Fair value of collateral
|
|
Discount
|
|
15% — 50%
|
|
21
|
%
|
|
|
$
|
11,499
|
|
|
Fair value of collateral
|
|
Contract value
|
|
NM
|
|
NM
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||
Non-PCI impaired loans
|
|
$
|
22,802
|
|
|
Discounted cash flows
|
|
Discount
|
|
4% — 10%
|
|
6
|
%
|
|
|
$
|
9,773
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8
|
%
|
|
|
$
|
3,207
|
|
|
Fair value of collateral
|
|
Discount
|
|
20% — 32%
|
|
29
|
%
|
|
|
$
|
2,406
|
|
|
Fair value of collateral
|
|
Contract value
|
|
NM
|
|
NM
|
|
OREO
|
|
$
|
9
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Weighted-average is based on the relative fair value of the respective assets as of
December 31, 2018
and
2017
.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
3,001,377
|
|
|
$
|
3,001,377
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,001,377
|
|
Interest-bearing deposits with banks
|
|
$
|
371,000
|
|
|
$
|
—
|
|
|
$
|
371,000
|
|
|
$
|
—
|
|
|
$
|
371,000
|
|
Resale agreements
(1)
|
|
$
|
1,035,000
|
|
|
$
|
—
|
|
|
$
|
1,016,724
|
|
|
$
|
—
|
|
|
$
|
1,016,724
|
|
Restricted equity securities, at cost
|
|
$
|
74,069
|
|
|
$
|
—
|
|
|
$
|
74,069
|
|
|
$
|
—
|
|
|
$
|
74,069
|
|
Loans held-for-sale
|
|
$
|
275
|
|
|
$
|
—
|
|
|
$
|
275
|
|
|
$
|
—
|
|
|
$
|
275
|
|
Loans held-for-investment, net
|
|
$
|
32,073,867
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,273,157
|
|
|
$
|
32,273,157
|
|
Mortgage servicing rights
|
|
$
|
7,836
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,427
|
|
|
$
|
11,427
|
|
Accrued interest receivable
|
|
$
|
146,262
|
|
|
$
|
—
|
|
|
$
|
146,262
|
|
|
$
|
—
|
|
|
$
|
146,262
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, checking, savings and money market deposits
|
|
$
|
26,370,562
|
|
|
$
|
—
|
|
|
$
|
26,370,562
|
|
|
$
|
—
|
|
|
$
|
26,370,562
|
|
Time deposits
|
|
$
|
9,069,066
|
|
|
$
|
—
|
|
|
$
|
9,084,597
|
|
|
$
|
—
|
|
|
$
|
9,084,597
|
|
Short-term borrowings
|
|
$
|
57,638
|
|
|
$
|
—
|
|
|
$
|
57,638
|
|
|
$
|
—
|
|
|
$
|
57,638
|
|
FHLB advances
|
|
$
|
326,172
|
|
|
$
|
—
|
|
|
$
|
334,793
|
|
|
$
|
—
|
|
|
$
|
334,793
|
|
Repurchase agreements
(1)
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
87,668
|
|
|
$
|
—
|
|
|
$
|
87,668
|
|
Long-term debt
|
|
$
|
146,835
|
|
|
$
|
—
|
|
|
$
|
152,556
|
|
|
$
|
—
|
|
|
$
|
152,556
|
|
Accrued interest payable
|
|
$
|
22,893
|
|
|
$
|
—
|
|
|
$
|
22,893
|
|
|
$
|
—
|
|
|
$
|
22,893
|
|
|
(1)
|
Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11,
Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements
. As of
December 31, 2018
,
$400.0 million
out of
$450.0 million
of repurchase agreements were eligible for netting against resale agreements.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||
|
Carrying
Amount |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value |
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
2,174,592
|
|
|
$
|
2,174,592
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,174,592
|
|
Interest-bearing deposits with banks
|
|
$
|
398,422
|
|
|
$
|
—
|
|
|
$
|
398,422
|
|
|
$
|
—
|
|
|
$
|
398,422
|
|
Resale agreements
(1)
|
|
$
|
1,050,000
|
|
|
$
|
—
|
|
|
$
|
1,035,158
|
|
|
$
|
—
|
|
|
$
|
1,035,158
|
|
Restricted equity securities, at cost
|
|
$
|
73,521
|
|
|
$
|
—
|
|
|
$
|
73,521
|
|
|
$
|
—
|
|
|
$
|
73,521
|
|
Loans held-for-sale
|
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
85
|
|
Loans held-for-investment, net
|
|
$
|
28,688,590
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,956,349
|
|
|
$
|
28,956,349
|
|
Branch assets held-for-sale
|
|
$
|
91,318
|
|
|
$
|
5,143
|
|
|
$
|
10,970
|
|
|
$
|
78,132
|
|
|
$
|
94,245
|
|
Mortgage servicing rights
|
|
$
|
7,771
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,324
|
|
|
$
|
11,324
|
|
Accrued interest receivable
|
|
$
|
121,719
|
|
|
$
|
—
|
|
|
$
|
121,719
|
|
|
$
|
—
|
|
|
$
|
121,719
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, checking, savings and money market deposits
|
|
$
|
25,974,314
|
|
|
$
|
—
|
|
|
$
|
25,974,314
|
|
|
$
|
—
|
|
|
$
|
25,974,314
|
|
Time deposits
|
|
$
|
5,640,749
|
|
|
$
|
—
|
|
|
$
|
5,626,855
|
|
|
$
|
—
|
|
|
$
|
5,626,855
|
|
Branch liability held-for-sale
|
|
$
|
605,111
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
643,937
|
|
|
$
|
643,937
|
|
FHLB advances
|
|
$
|
323,891
|
|
|
$
|
—
|
|
|
$
|
335,901
|
|
|
$
|
—
|
|
|
$
|
335,901
|
|
Repurchase agreements
(1)
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
104,830
|
|
|
$
|
—
|
|
|
$
|
104,830
|
|
Long-term debt
|
|
$
|
171,577
|
|
|
$
|
—
|
|
|
$
|
171,673
|
|
|
$
|
—
|
|
|
$
|
171,673
|
|
Accrued interest payable
|
|
$
|
10,724
|
|
|
$
|
—
|
|
|
$
|
10,724
|
|
|
$
|
—
|
|
|
$
|
10,724
|
|
|
(1)
|
Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11,
Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements
. As of December 31, 2017,
$400.0 million
out of
$450.0 million
of repurchase agreements were eligible for netting against resale agreements.
|
|
|
|
||
($ in thousands)
|
|
Repurchase
Agreements
|
||
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
—
|
|
|
2022
|
|
150,000
|
|
|
2023
|
|
300,000
|
|
|
Thereafter
|
|
—
|
|
|
Total
|
|
$
|
450,000
|
|
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||
Assets
|
|
Gross Amounts
of Recognized Assets |
|
Gross Amounts
Offset on the Consolidated Balance Sheet |
|
Net Amounts of
Assets Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
|
Net
Amount |
||||||||||||||
|
|
|
|
Financial
Instruments |
|
Collateral
Received |
|
|||||||||||||||||
Resale agreements
|
|
$
|
1,435,000
|
|
|
$
|
(400,000
|
)
|
|
$
|
1,035,000
|
|
|
$
|
—
|
|
|
$
|
(1,025,066
|
)
|
(1)
|
$
|
9,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
Gross Amounts
of Recognized Liabilities |
|
Gross Amounts
Offset on the Consolidated Balance Sheet |
|
Net Amounts of
Liabilities Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
|
Net
Amount |
||||||||||||||
|
|
|
|
Financial
Instruments |
|
Collateral
Pledged |
|
|||||||||||||||||
Repurchase agreements
|
|
$
|
450,000
|
|
|
$
|
(400,000
|
)
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
(50,000
|
)
|
(2)
|
$
|
—
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||||||
Assets
|
|
Gross Amounts
of Recognized Assets |
|
Gross Amounts
Offset on the Consolidated Balance Sheet |
|
Net Amounts of
Assets Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
|
Net
Amount
|
||||||||||||||
|
|
|
|
Financial
Instruments |
|
Collateral
Received |
|
|||||||||||||||||
Resale agreements
|
|
$
|
1,450,000
|
|
|
$
|
(400,000
|
)
|
|
$
|
1,050,000
|
|
|
$
|
—
|
|
|
$
|
(1,045,696
|
)
|
(1)
|
$
|
4,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
Gross Amounts
of Recognized Liabilities |
|
Gross Amounts
Offset on the Consolidated Balance Sheet |
|
Net Amounts of
Liabilities Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
|
Net
Amount
|
||||||||||||||
|
|
|
|
Financial
Instruments |
|
Collateral
Pledged |
|
|||||||||||||||||
Repurchase agreements
|
|
$
|
450,000
|
|
|
$
|
(400,000
|
)
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
(50,000
|
)
|
(2)
|
$
|
—
|
|
|
(1)
|
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.
|
(2)
|
Represents the fair value of securities the Company has pledged under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty.
|
|
||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
577,561
|
|
|
$
|
153
|
|
|
$
|
(12,899
|
)
|
|
$
|
564,815
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
219,485
|
|
|
382
|
|
|
(2,694
|
)
|
|
217,173
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
420,486
|
|
|
811
|
|
|
(12,694
|
)
|
|
408,603
|
|
||||
Residential mortgage-backed securities
|
|
957,219
|
|
|
4,026
|
|
|
(14,552
|
)
|
|
946,693
|
|
||||
Municipal securities
|
|
82,965
|
|
|
87
|
|
|
(1,032
|
)
|
|
82,020
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
25,826
|
|
|
226
|
|
|
—
|
|
|
26,052
|
|
||||
Residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|||||||
Investment grade
(1)
|
|
10,109
|
|
|
7
|
|
|
(185
|
)
|
|
9,931
|
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
11,250
|
|
|
—
|
|
|
(381
|
)
|
|
10,869
|
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1) (2)
|
|
489,378
|
|
|
—
|
|
|
(26,330
|
)
|
|
463,048
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
12,621
|
|
|
22
|
|
|
—
|
|
|
12,643
|
|
||||
Total available-for-sale investment securities
|
|
$
|
2,806,900
|
|
|
$
|
5,714
|
|
|
$
|
(70,767
|
)
|
|
$
|
2,741,847
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
651,395
|
|
|
$
|
—
|
|
|
$
|
(11,115
|
)
|
|
$
|
640,280
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
206,815
|
|
|
62
|
|
|
(3,485
|
)
|
|
203,392
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
328,348
|
|
|
141
|
|
|
(9,532
|
)
|
|
318,957
|
|
||||
Residential mortgage-backed securities
|
|
1,199,869
|
|
|
3,964
|
|
|
(13,562
|
)
|
|
1,190,271
|
|
||||
Municipal securities
|
|
99,636
|
|
|
655
|
|
|
(309
|
)
|
|
99,982
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
9,136
|
|
|
3
|
|
|
(22
|
)
|
|
9,117
|
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
37,585
|
|
|
164
|
|
|
(746
|
)
|
|
37,003
|
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
||||||||
Investment grade
(1)
|
|
505,396
|
|
|
24
|
|
|
(19,012
|
)
|
|
486,408
|
|
||||
Other securities
(2)
|
|
31,887
|
|
|
—
|
|
|
(545
|
)
|
|
31,342
|
|
||||
Total available-for-sale investment securities
|
|
$
|
3,070,067
|
|
|
$
|
5,013
|
|
|
$
|
(58,328
|
)
|
|
$
|
3,016,752
|
|
|
(1)
|
Available-for-sale investment securities rated BBB- or higher by Standard and Poor’s (“S&P”) or Baa3 or higher by Moody’s 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)
|
Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01,
Financial Instruments — Overall
(Subtopic 825-10):
Recognition and Measurement of Financial Assets and Financial Liabilities
, these securities were reported as available-for-sale investment securities with changes in fair value recorded in other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from
Available-for-sale investment securities, at fair value
to
Investments in tax credit and other investments, net
, on the Consolidated Balance Sheet with changes in fair value recorded in net income.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
516,520
|
|
|
$
|
(12,899
|
)
|
|
$
|
516,520
|
|
|
$
|
(12,899
|
)
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
22,755
|
|
|
(238
|
)
|
|
159,814
|
|
|
(2,456
|
)
|
|
182,569
|
|
|
(2,694
|
)
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
26,886
|
|
|
(245
|
)
|
|
274,666
|
|
|
(12,449
|
)
|
|
301,552
|
|
|
(12,694
|
)
|
||||||
Residential mortgage-backed securities
|
|
75,675
|
|
|
(491
|
)
|
|
653,660
|
|
|
(14,061
|
)
|
|
729,335
|
|
|
(14,552
|
)
|
||||||
Municipal securities
|
|
9,458
|
|
|
(104
|
)
|
|
30,295
|
|
|
(928
|
)
|
|
39,753
|
|
|
(1,032
|
)
|
||||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
3,067
|
|
|
(19
|
)
|
|
3,949
|
|
|
(166
|
)
|
|
7,016
|
|
|
(185
|
)
|
||||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
10,869
|
|
|
(381
|
)
|
|
—
|
|
|
—
|
|
|
10,869
|
|
|
(381
|
)
|
||||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
|
14,418
|
|
|
(40
|
)
|
|
448,630
|
|
|
(26,290
|
)
|
|
463,048
|
|
|
(26,330
|
)
|
||||||
Total available-for-sale investment securities
|
|
$
|
163,128
|
|
|
$
|
(1,518
|
)
|
|
$
|
2,087,534
|
|
|
$
|
(69,249
|
)
|
|
$
|
2,250,662
|
|
|
$
|
(70,767
|
)
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
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
|
|
$
|
168,061
|
|
|
$
|
(1,005
|
)
|
|
$
|
472,219
|
|
|
$
|
(10,110
|
)
|
|
$
|
640,280
|
|
|
$
|
(11,115
|
)
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
99,935
|
|
|
(623
|
)
|
|
85,281
|
|
|
(2,862
|
)
|
|
185,216
|
|
|
(3,485
|
)
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
113,775
|
|
|
(2,071
|
)
|
|
191,827
|
|
|
(7,461
|
)
|
|
305,602
|
|
|
(9,532
|
)
|
||||||
Residential mortgage-backed securities
|
|
413,621
|
|
|
(4,205
|
)
|
|
361,809
|
|
|
(9,357
|
)
|
|
775,430
|
|
|
(13,562
|
)
|
||||||
Municipal securities
|
|
8,490
|
|
|
(123
|
)
|
|
8,588
|
|
|
(186
|
)
|
|
17,078
|
|
|
(309
|
)
|
||||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
4,599
|
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
4,599
|
|
|
(22
|
)
|
||||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
—
|
|
|
—
|
|
|
11,905
|
|
|
(746
|
)
|
|
11,905
|
|
|
(746
|
)
|
||||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment grade
|
|
103,149
|
|
|
(1,325
|
)
|
|
352,239
|
|
|
(17,687
|
)
|
|
455,388
|
|
|
(19,012
|
)
|
||||||
Other securities
(1)
|
|
31,215
|
|
|
(545
|
)
|
|
—
|
|
|
—
|
|
|
31,215
|
|
|
(545
|
)
|
||||||
Total available-for-sale investment securities
|
|
$
|
942,845
|
|
|
$
|
(9,919
|
)
|
|
$
|
1,483,868
|
|
|
$
|
(48,409
|
)
|
|
$
|
2,426,713
|
|
|
$
|
(58,328
|
)
|
|
(1)
|
Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01,
Financial Instruments — Overall
(Subtopic 825-10)
: Recognition and Measurement of Financial Assets and Financial Liabilities
, these securities were reported as available-for-sale investment securities with changes in fair value recorded in other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from
Available-for-sale investment securities, at fair value
to
Investments in tax credit and other investments, net
, on the Consolidated Balance Sheet with changes in fair value recorded in net income.
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Proceeds from sales
|
|
$
|
364,270
|
|
|
$
|
832,844
|
|
|
$
|
1,275,645
|
|
Gross realized gains
|
|
$
|
2,535
|
|
|
$
|
8,037
|
|
|
$
|
10,487
|
|
Gross realized losses
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
125
|
|
Related tax expense
|
|
$
|
749
|
|
|
$
|
3,380
|
|
|
$
|
4,357
|
|
|
|
||||||||
($ in thousands)
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
Due within one year
|
|
$
|
549,517
|
|
|
$
|
523,552
|
|
Due after one year through five years
|
|
676,814
|
|
|
661,868
|
|
||
Due after five years through ten years
|
|
212,093
|
|
|
209,653
|
|
||
Due after ten years
|
|
1,368,476
|
|
|
1,346,774
|
|
||
Total available-for-sale investment securities
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
|||||
FRB stock
|
|
$
|
56,819
|
|
|
$
|
56,271
|
|
FHLB stock
|
|
17,250
|
|
|
17,250
|
|
||
Total restricted equity securities
|
|
$
|
74,069
|
|
|
$
|
73,521
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
Notional
Amount
|
|
Fair Value
|
|||||||||||||||||
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
$
|
35,811
|
|
|
$
|
—
|
|
|
$
|
5,866
|
|
|
$
|
35,811
|
|
|
$
|
—
|
|
|
$
|
6,770
|
|
Net investment hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
90,245
|
|
|
—
|
|
|
611
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total derivatives designated as hedging instruments
|
|
$
|
126,056
|
|
|
$
|
—
|
|
|
$
|
6,477
|
|
|
$
|
35,811
|
|
|
$
|
—
|
|
|
$
|
6,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
$
|
11,695,499
|
|
|
$
|
69,818
|
|
|
$
|
69,267
|
|
|
$
|
9,333,860
|
|
|
$
|
59,564
|
|
|
$
|
58,890
|
|
Foreign exchange contracts
|
|
3,407,522
|
|
|
21,624
|
|
|
19,329
|
|
|
770,215
|
|
|
5,840
|
|
|
10,170
|
|
||||||
Credit contracts
|
|
119,320
|
|
|
1
|
|
|
164
|
|
|
49,033
|
|
|
1
|
|
|
8
|
|
||||||
Equity contracts
|
|
—
|
|
(1)
|
1,951
|
|
|
—
|
|
|
—
|
|
(1)
|
1,672
|
|
|
—
|
|
||||||
Commodity contracts
|
|
—
|
|
(2)
|
14,422
|
|
|
23,068
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total derivatives not designated as hedging instruments
|
|
$
|
15,222,341
|
|
|
$
|
107,816
|
|
|
$
|
111,828
|
|
|
$
|
10,153,108
|
|
|
$
|
67,077
|
|
|
$
|
69,068
|
|
Gross derivative assets/liabilities
|
|
|
|
$
|
107,816
|
|
|
$
|
118,305
|
|
|
|
|
|
$
|
67,077
|
|
|
$
|
75,838
|
|
|||
Less: Master netting agreements
|
|
|
|
(31,569
|
)
|
|
(31,569
|
)
|
|
|
|
(20,662
|
)
|
|
(20,662
|
)
|
||||||||
Less: Cash collateral received/paid
|
|
|
|
(13,577
|
)
|
|
(6,833
|
)
|
|
|
|
(8,024
|
)
|
|
(10,680
|
)
|
||||||||
Net derivative assets/liabilities
|
|
|
|
$
|
62,670
|
|
|
$
|
79,903
|
|
|
|
|
$
|
38,391
|
|
|
$
|
44,496
|
|
||||
|
(1)
|
The Company held equity contracts in
four
public companies and
18
private companies as of
December 31, 2018
. In comparison, the Company held equity contracts in
four
public companies and
12
private companies as of
December 31, 2017
.
|
(2)
|
The notional amount of the Company’s commodity contracts entered with its customers totaled
2,507 thousand
barrels of oil and
14,722 thousand
units of natural gas, measured in million British thermal units (“MMBTUs”) as of
December 31, 2018
. The Company entered into the same notional amounts of commodity contracts with mirrored terms with third-party financial institutions to mitigate its exposure. The Company did not have any commodity contracts as of
December 31, 2017
.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
(Losses) gains recorded in interest expense:
|
|
|
|
|
|
|
||||||
Recognized on interest rate swaps
|
|
$
|
(93
|
)
|
|
$
|
(2,734
|
)
|
|
$
|
(794
|
)
|
Recognized on certificates of deposit
|
|
$
|
278
|
|
|
$
|
2,271
|
|
|
$
|
157
|
|
|
(1)
|
Represents the full carrying amount of the hedged certificates of deposit.
|
(2)
|
For liabilities, (increase) decrease to carrying value.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Gains (losses) recognized in AOCI
|
|
$
|
6,072
|
|
|
$
|
(648
|
)
|
|
$
|
2,908
|
|
Gains (losses) recognized in
Letters of credit fees and foreign exchange income
(1)
|
|
$
|
—
|
|
|
$
|
(1,953
|
)
|
|
$
|
1,124
|
|
|
(1)
|
Represents the gains (losses) recorded in the Consolidated Statement of Income related to the ineffective portion of the net investment hedges prior to the adoption of ASU 2017-12, effective January 1, 2018. After the adoption, the fair value gains (losses) are recorded in
Foreign Currency Translation Adjustments
within AOCI.
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount |
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Written options
|
|
$
|
931,601
|
|
|
$
|
—
|
|
|
$
|
492
|
|
|
Purchased options
|
|
$
|
931,601
|
|
|
$
|
503
|
|
|
$
|
—
|
|
Sold collars and corridors
|
|
429,879
|
|
|
1,121
|
|
|
305
|
|
|
Collars and corridors
|
|
429,879
|
|
|
308
|
|
|
1,140
|
|
||||||
Swaps
|
|
4,482,881
|
|
|
41,457
|
|
|
41,545
|
|
|
Swaps
|
|
4,489,658
|
|
|
26,429
|
|
|
25,785
|
|
||||||
Total
|
|
$
|
5,844,361
|
|
|
$
|
42,578
|
|
|
$
|
42,342
|
|
|
Total
|
|
$
|
5,851,138
|
|
|
$
|
27,240
|
|
|
$
|
26,925
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount |
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Written options
|
|
$
|
691,548
|
|
|
$
|
—
|
|
|
$
|
223
|
|
|
Purchased options
|
|
$
|
691,548
|
|
|
$
|
233
|
|
|
$
|
—
|
|
Sold collars and corridors
|
|
247,542
|
|
|
204
|
|
|
267
|
|
|
Collars and corridors
|
|
247,542
|
|
|
271
|
|
|
211
|
|
||||||
Swaps
|
|
3,724,295
|
|
|
33,417
|
|
|
24,636
|
|
|
Swaps
|
|
3,731,385
|
|
|
25,439
|
|
|
33,553
|
|
||||||
Total
|
|
$
|
4,663,385
|
|
|
$
|
33,621
|
|
|
$
|
25,126
|
|
|
Total
|
|
$
|
4,670,475
|
|
|
$
|
25,943
|
|
|
$
|
33,764
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
Financial Counterparty
|
|||||||||||||||||||||||
|
Notional
Amount |
|
Fair Value
|
|
|
|
Notional
Amount |
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
($ in thousands)
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
Forwards and spot
|
|
$
|
2,023,425
|
|
|
$
|
11,719
|
|
|
$
|
13,079
|
|
|
Forwards and spot
|
|
$
|
506,342
|
|
|
$
|
3,407
|
|
|
$
|
2,285
|
|
Swaps
|
|
21,108
|
|
|
348
|
|
|
243
|
|
|
Swaps
|
|
687,845
|
|
|
5,764
|
|
|
3,336
|
|
||||||
Written options
|
|
537
|
|
|
16
|
|
|
—
|
|
|
Purchased options
|
|
537
|
|
|
—
|
|
|
16
|
|
||||||
Collars
|
|
83,864
|
|
|
—
|
|
|
370
|
|
|
Collars
|
|
83,864
|
|
|
370
|
|
|
—
|
|
||||||
Total
|
|
$
|
2,128,934
|
|
|
$
|
12,083
|
|
|
$
|
13,692
|
|
|
Total
|
|
$
|
1,278,588
|
|
|
$
|
9,541
|
|
|
$
|
5,637
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Customer Counterparty
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount |
|
Fair Value
|
|
Notional
Amount |
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
Forwards and spot
|
|
$
|
163,389
|
|
|
$
|
2,189
|
|
|
$
|
752
|
|
|
$
|
155,872
|
|
|
$
|
662
|
|
|
$
|
7,800
|
|
Swaps
|
|
4,318
|
|
|
—
|
|
|
98
|
|
|
446,636
|
|
|
2,989
|
|
|
1,520
|
|
||||||
Total
|
|
$
|
167,707
|
|
|
$
|
2,189
|
|
|
$
|
850
|
|
|
$
|
602,508
|
|
|
$
|
3,651
|
|
|
$
|
9,320
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
RPAs - protection sold
|
|
$
|
108,606
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
$
|
35,208
|
|
|
$
|
—
|
|
|
$
|
8
|
|
RPAs - protection purchased
|
|
10,714
|
|
|
1
|
|
|
—
|
|
|
13,825
|
|
|
1
|
|
|
—
|
|
||||||
Total RPAs
|
|
$
|
119,320
|
|
|
$
|
1
|
|
|
$
|
164
|
|
|
$
|
49,033
|
|
|
$
|
1
|
|
|
$
|
8
|
|
|
|
||||||||||||||||||||||||||||
|
|
December 31, 2018
|
||||||||||||||||||||||||||
($ and units
in thousands) |
|
Customer Counterparty
|
|
($ and units
in thousands) |
|
Financial Counterparty
|
||||||||||||||||||||||
|
Notional
|
|
Fair Value
|
|
|
Notional
|
|
Fair Value
|
||||||||||||||||||||
|
Unit
|
|
Amount
|
|
Assets
|
|
Liabilities
|
|
|
Unit
|
|
Amount
|
|
Assets
|
|
Liabilities
|
||||||||||||
Crude oil:
|
|
|
|
|
|
|
|
|
|
Crude oil:
|
|
|
|
|
|
|
|
|
||||||||||
Written options
|
|
Barrels
|
|
524
|
|
|
$
|
—
|
|
|
$
|
2,628
|
|
|
Purchased options
|
|
Barrels
|
|
524
|
|
|
$
|
2,251
|
|
|
$
|
—
|
|
Collars
|
|
Barrels
|
|
872
|
|
|
—
|
|
|
3,772
|
|
|
Collars
|
|
Barrels
|
|
872
|
|
|
3,225
|
|
|
—
|
|
||||
Swaps
|
|
Barrels
|
|
1,111
|
|
|
—
|
|
|
14,278
|
|
|
Swaps
|
|
Barrels
|
|
1,111
|
|
|
5,799
|
|
|
—
|
|
||||
Total
|
|
|
|
2,507
|
|
|
$
|
—
|
|
|
$
|
20,678
|
|
|
Total
|
|
|
|
2,507
|
|
|
$
|
11,275
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas:
|
|
|
|
|
|
|
|
|
|
Natural gas:
|
|
|
|
|
|
|
|
|
||||||||||
Collars
|
|
MMBTUs
|
|
3,063
|
|
|
$
|
78
|
|
|
$
|
152
|
|
|
Collars
|
|
MMBTUs
|
|
3,063
|
|
|
$
|
151
|
|
|
$
|
64
|
|
Swaps
|
|
MMBTUs
|
|
11,659
|
|
|
1,049
|
|
|
1,857
|
|
|
Swaps
|
|
MMBTUs
|
|
11,659
|
|
|
1,869
|
|
|
317
|
|
||||
Total
|
|
|
|
14,722
|
|
|
$
|
1,127
|
|
|
$
|
2,009
|
|
|
Total
|
|
|
|
14,722
|
|
|
$
|
2,020
|
|
|
$
|
381
|
|
Total
|
|
|
|
|
|
$
|
1,127
|
|
|
$
|
22,687
|
|
|
Total
|
|
|
|
|
|
$
|
13,295
|
|
|
$
|
381
|
|
||
|
|
||||||||||||||
($ in thousands)
|
|
Location in
Consolidated
Statement of Income
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
Derivative fees and other income
|
|
$
|
280
|
|
|
$
|
(1,772
|
)
|
|
$
|
2,557
|
|
Foreign exchange contracts
|
|
Letters of credit fees and foreign exchange income
|
|
16,784
|
|
|
22,076
|
|
|
12,632
|
|
|||
Credit contracts
|
|
Derivative fees and other income
|
|
(156
|
)
|
|
(7
|
)
|
|
—
|
|
|||
Equity contracts
|
|
Ancillary loan fees and other income
|
|
512
|
|
|
1,672
|
|
|
—
|
|
|||
Commodity contracts
|
|
Derivative fees and other income
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|||
Net gains
|
|
|
|
$
|
17,409
|
|
|
$
|
21,969
|
|
|
$
|
15,189
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
As of December 31, 2018
|
||||||||||||||||||||||
|
|
Gross
Amounts Recognized (1) |
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net
Amount |
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Received
(3)
|
|
|
Security Collateral
Received
(5)
|
|
||||||||||||||||
Derivative assets
|
|
$
|
107,816
|
|
|
$
|
(31,569
|
)
|
|
$
|
(13,577
|
)
|
|
$
|
62,670
|
|
|
$
|
(13,975
|
)
|
|
$
|
48,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Gross
Amounts Recognized (2) |
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net
Amount |
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Pledged
(4)
|
|
|
Security Collateral
Pledged
(5)
|
|
||||||||||||||||
Derivative liabilities
|
|
$
|
118,305
|
|
|
$
|
(31,569
|
)
|
|
$
|
(6,833
|
)
|
|
$
|
79,903
|
|
|
$
|
(11,231
|
)
|
|
$
|
68,672
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
As of December 31, 2017
|
||||||||||||||||||||||
|
|
Gross
Amounts Recognized (1) |
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net
Amount |
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Received
(3)
|
|
|
Security Collateral
Received (5) |
|
||||||||||||||||
Derivative assets
|
|
$
|
67,077
|
|
|
$
|
(20,662
|
)
|
|
$
|
(8,024
|
)
|
|
$
|
38,391
|
|
|
$
|
(1,153
|
)
|
|
$
|
37,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Gross
Amounts Recognized (2) |
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net
Amount |
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Pledged
(4)
|
|
|
Security Collateral
Pledged
(5)
|
|
||||||||||||||||
Derivative liabilities
|
|
$
|
75,838
|
|
|
$
|
(20,662
|
)
|
|
$
|
(10,680
|
)
|
|
$
|
44,496
|
|
|
$
|
(18,610
|
)
|
|
$
|
25,886
|
|
|
(1)
|
Gross amounts recognized for derivative assets include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of
$105.9 million
and
$64.8 million
, respectively, as of
December 31, 2018
and
2017
, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of
$2.0 million
and
$2.3 million
, respectively, as of
December 31, 2018
and
2017
.
|
(2)
|
Gross amounts recognized for derivative liabilities include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of
$118.2 million
and
$75.3 million
, respectively, as of
December 31, 2018
and
2017
, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of
$102 thousand
and
$523 thousand
, respectively, as of
December 31, 2018
and
2017
.
|
(3)
|
Gross cash collateral received under master netting arrangements or similar agreements were
$15.8 million
and
$9.2 million
, respectively, as of
December 31, 2018
and
2017
. Of the gross cash collateral received,
$13.6 million
and
$8.0 million
were used to offset against derivative assets, respectively, as of
December 31, 2018
and
2017
.
|
(4)
|
Gross cash collateral pledged under master netting arrangements or similar agreements were
$8.4 million
and
$10.7 million
, respectively, as of
December 31, 2018
and
2017
. Of the gross cash collateral pledged,
$6.8 million
and
$10.7 million
were used to offset against derivative liabilities, respectively, as of
December 31, 2018
and
2017
.
|
(5)
|
Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of non-cash collateral on the consolidated balance sheet but requires disclosure of such amounts.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
Non-PCI
Loans (1) |
|
PCI
Loans
(2)
|
|
Total
(1)(2)
|
|
Non-PCI
Loans
(1)
|
|
PCI
Loans (2) |
|
Total
(1)(2)
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
12,054,818
|
|
|
$
|
2,152
|
|
|
$
|
12,056,970
|
|
|
$
|
10,685,436
|
|
|
$
|
11,795
|
|
|
$
|
10,697,231
|
|
CRE
|
|
9,284,583
|
|
|
165,252
|
|
|
9,449,835
|
|
|
8,659,209
|
|
|
277,688
|
|
|
8,936,897
|
|
||||||
Multifamily residential
|
|
2,246,506
|
|
|
34,526
|
|
|
2,281,032
|
|
|
1,855,128
|
|
|
61,048
|
|
|
1,916,176
|
|
||||||
Construction and land
|
|
538,752
|
|
|
42
|
|
|
538,794
|
|
|
659,326
|
|
|
371
|
|
|
659,697
|
|
||||||
Total commercial
|
|
24,124,659
|
|
|
201,972
|
|
|
24,326,631
|
|
|
21,859,099
|
|
|
350,902
|
|
|
22,210,001
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
5,939,258
|
|
|
97,196
|
|
|
6,036,454
|
|
|
4,528,911
|
|
|
117,378
|
|
|
4,646,289
|
|
||||||
HELOCs
|
|
1,681,979
|
|
|
8,855
|
|
|
1,690,834
|
|
|
1,768,917
|
|
|
14,007
|
|
|
1,782,924
|
|
||||||
Other consumer
|
|
331,270
|
|
|
—
|
|
|
331,270
|
|
|
336,504
|
|
|
—
|
|
|
336,504
|
|
||||||
Total consumer
|
|
7,952,507
|
|
|
106,051
|
|
|
8,058,558
|
|
|
6,634,332
|
|
|
131,385
|
|
|
6,765,717
|
|
||||||
Total loans held-for-investment
|
|
$
|
32,077,166
|
|
|
$
|
308,023
|
|
|
$
|
32,385,189
|
|
|
$
|
28,493,431
|
|
|
$
|
482,287
|
|
|
$
|
28,975,718
|
|
Allowance for loan losses
|
|
(311,300
|
)
|
|
(22
|
)
|
|
(311,322
|
)
|
|
(287,070
|
)
|
|
(58
|
)
|
|
(287,128
|
)
|
||||||
Loans held-for-investment, net
|
|
$
|
31,765,866
|
|
|
$
|
308,001
|
|
|
$
|
32,073,867
|
|
|
$
|
28,206,361
|
|
|
$
|
482,229
|
|
|
$
|
28,688,590
|
|
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of
$(48.9) million
and
$(34.0) million
as of
December 31, 2018
and
2017
, respectively.
|
(2)
|
Includes ASC 310-30 discount of
$22.2 million
and
$35.3 million
as of
December 31, 2018
and
2017
, respectively.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total Non-
PCI Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
11,644,470
|
|
|
$
|
260,089
|
|
|
$
|
139,844
|
|
|
$
|
10,415
|
|
|
$
|
12,054,818
|
|
CRE
|
|
9,144,646
|
|
|
49,705
|
|
|
90,232
|
|
|
—
|
|
|
9,284,583
|
|
|||||
Multifamily residential
|
|
2,215,573
|
|
|
20,551
|
|
|
10,382
|
|
|
—
|
|
|
2,246,506
|
|
|||||
Construction and land
|
|
485,217
|
|
|
19,838
|
|
|
33,697
|
|
|
—
|
|
|
538,752
|
|
|||||
Total commercial
|
|
23,489,906
|
|
|
350,183
|
|
|
274,155
|
|
|
10,415
|
|
|
24,124,659
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
5,925,584
|
|
|
6,376
|
|
|
7,298
|
|
|
—
|
|
|
5,939,258
|
|
|||||
HELOCs
|
|
1,669,300
|
|
|
1,576
|
|
|
11,103
|
|
|
—
|
|
|
1,681,979
|
|
|||||
Other consumer
|
|
328,767
|
|
|
1
|
|
|
2,502
|
|
|
—
|
|
|
331,270
|
|
|||||
Total consumer
|
|
7,923,651
|
|
|
7,953
|
|
|
20,903
|
|
|
—
|
|
|
7,952,507
|
|
|||||
Total
|
|
$
|
31,413,557
|
|
|
$
|
358,136
|
|
|
$
|
295,058
|
|
|
$
|
10,415
|
|
|
$
|
32,077,166
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total Non-
PCI Loans |
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
10,369,516
|
|
|
$
|
114,769
|
|
|
$
|
180,269
|
|
|
$
|
20,882
|
|
|
$
|
10,685,436
|
|
CRE
|
|
8,484,635
|
|
|
65,616
|
|
|
108,958
|
|
|
—
|
|
|
8,659,209
|
|
|||||
Multifamily residential
|
|
1,839,958
|
|
|
—
|
|
|
15,170
|
|
|
—
|
|
|
1,855,128
|
|
|||||
Construction and land
|
|
614,441
|
|
|
4,590
|
|
|
40,295
|
|
|
—
|
|
|
659,326
|
|
|||||
Total commercial
|
|
21,308,550
|
|
|
184,975
|
|
|
344,692
|
|
|
20,882
|
|
|
21,859,099
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
4,490,672
|
|
|
16,504
|
|
|
21,735
|
|
|
—
|
|
|
4,528,911
|
|
|||||
HELOCs
|
|
1,744,903
|
|
|
11,900
|
|
|
12,114
|
|
|
—
|
|
|
1,768,917
|
|
|||||
Other consumer
|
|
333,895
|
|
|
111
|
|
|
2,498
|
|
|
—
|
|
|
336,504
|
|
|||||
Total consumer
|
|
6,569,470
|
|
|
28,515
|
|
|
36,347
|
|
|
—
|
|
|
6,634,332
|
|
|||||
Total
|
|
$
|
27,878,020
|
|
|
$
|
213,490
|
|
|
$
|
381,039
|
|
|
$
|
20,882
|
|
|
$
|
28,493,431
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total PCI
Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
1,996
|
|
|
$
|
—
|
|
|
$
|
156
|
|
|
$
|
—
|
|
|
$
|
2,152
|
|
CRE
|
|
146,057
|
|
|
—
|
|
|
19,195
|
|
|
—
|
|
|
165,252
|
|
|||||
Multifamily residential
|
|
33,003
|
|
|
—
|
|
|
1,523
|
|
|
—
|
|
|
34,526
|
|
|||||
Construction and land
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Total commercial
|
|
181,098
|
|
|
—
|
|
|
20,874
|
|
|
—
|
|
|
201,972
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
95,789
|
|
|
1,021
|
|
|
386
|
|
|
—
|
|
|
97,196
|
|
|||||
HELOCs
|
|
8,314
|
|
|
256
|
|
|
285
|
|
|
—
|
|
|
8,855
|
|
|||||
Total consumer
|
|
104,103
|
|
|
1,277
|
|
|
671
|
|
|
—
|
|
|
106,051
|
|
|||||
Total
(1)
|
|
$
|
285,201
|
|
|
$
|
1,277
|
|
|
$
|
21,545
|
|
|
$
|
—
|
|
|
$
|
308,023
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total PCI
Loans |
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
10,712
|
|
|
$
|
57
|
|
|
$
|
1,026
|
|
|
$
|
—
|
|
|
$
|
11,795
|
|
CRE
|
|
238,605
|
|
|
531
|
|
|
38,552
|
|
|
—
|
|
|
277,688
|
|
|||||
Multifamily residential
|
|
56,720
|
|
|
—
|
|
|
4,328
|
|
|
—
|
|
|
61,048
|
|
|||||
Construction and land
|
|
44
|
|
|
—
|
|
|
327
|
|
|
—
|
|
|
371
|
|
|||||
Total commercial
|
|
306,081
|
|
|
588
|
|
|
44,233
|
|
|
—
|
|
|
350,902
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
113,905
|
|
|
1,543
|
|
|
1,930
|
|
|
—
|
|
|
117,378
|
|
|||||
HELOCs
|
|
12,642
|
|
|
—
|
|
|
1,365
|
|
|
—
|
|
|
14,007
|
|
|||||
Total consumer
|
|
126,547
|
|
|
1,543
|
|
|
3,295
|
|
|
—
|
|
|
131,385
|
|
|||||
Total
(1)
|
|
$
|
432,628
|
|
|
$
|
2,131
|
|
|
$
|
47,528
|
|
|
$
|
—
|
|
|
$
|
482,287
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
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
|
|||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
C&I
|
|
$
|
21,032
|
|
|
$
|
19,170
|
|
|
$
|
40,202
|
|
|
$
|
17,097
|
|
|
$
|
26,743
|
|
|
$
|
43,840
|
|
|
$
|
11,970,776
|
|
|
$
|
12,054,818
|
|
CRE
|
|
7,740
|
|
|
—
|
|
|
7,740
|
|
|
3,704
|
|
|
20,514
|
|
|
24,218
|
|
|
9,252,625
|
|
|
9,284,583
|
|
||||||||
Multifamily residential
|
|
4,174
|
|
|
—
|
|
|
4,174
|
|
|
1,067
|
|
|
193
|
|
|
1,260
|
|
|
2,241,072
|
|
|
2,246,506
|
|
||||||||
Construction and land
|
|
207
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
538,545
|
|
|
538,752
|
|
||||||||
Total commercial
|
|
33,153
|
|
|
19,170
|
|
|
52,323
|
|
|
21,868
|
|
|
47,450
|
|
|
69,318
|
|
|
24,003,018
|
|
|
24,124,659
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family residential
|
|
14,645
|
|
|
7,850
|
|
|
22,495
|
|
|
509
|
|
|
4,750
|
|
|
5,259
|
|
|
5,911,504
|
|
|
5,939,258
|
|
||||||||
HELOCs
|
|
2,573
|
|
|
1,816
|
|
|
4,389
|
|
|
1,423
|
|
|
7,191
|
|
|
8,614
|
|
|
1,668,976
|
|
|
1,681,979
|
|
||||||||
Other consumer
|
|
11
|
|
|
12
|
|
|
23
|
|
|
—
|
|
|
2,502
|
|
|
2,502
|
|
|
328,745
|
|
|
331,270
|
|
||||||||
Total consumer
|
|
17,229
|
|
|
9,678
|
|
|
26,907
|
|
|
1,932
|
|
|
14,443
|
|
|
16,375
|
|
|
7,909,225
|
|
|
7,952,507
|
|
||||||||
Total
|
|
$
|
50,382
|
|
|
$
|
28,848
|
|
|
$
|
79,230
|
|
|
$
|
23,800
|
|
|
$
|
61,893
|
|
|
$
|
85,693
|
|
|
$
|
31,912,243
|
|
|
$
|
32,077,166
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
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 |
|||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
C&I
|
|
$
|
30,964
|
|
|
$
|
82
|
|
|
$
|
31,046
|
|
|
$
|
27,408
|
|
|
$
|
41,805
|
|
|
$
|
69,213
|
|
|
$
|
10,585,177
|
|
|
$
|
10,685,436
|
|
CRE
|
|
3,414
|
|
|
466
|
|
|
3,880
|
|
|
5,430
|
|
|
21,556
|
|
|
26,986
|
|
|
8,628,343
|
|
|
8,659,209
|
|
||||||||
Multifamily residential
|
|
4,846
|
|
|
14
|
|
|
4,860
|
|
|
1,418
|
|
|
299
|
|
|
1,717
|
|
|
1,848,551
|
|
|
1,855,128
|
|
||||||||
Construction and land
|
|
758
|
|
|
—
|
|
|
758
|
|
|
—
|
|
|
3,973
|
|
|
3,973
|
|
|
654,595
|
|
|
659,326
|
|
||||||||
Total commercial
|
|
39,982
|
|
|
562
|
|
|
40,544
|
|
|
34,256
|
|
|
67,633
|
|
|
101,889
|
|
|
21,716,666
|
|
|
21,859,099
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family residential
|
|
13,269
|
|
|
5,355
|
|
|
18,624
|
|
|
6
|
|
|
5,917
|
|
|
5,923
|
|
|
4,504,364
|
|
|
4,528,911
|
|
||||||||
HELOCs
|
|
4,286
|
|
|
4,186
|
|
|
8,472
|
|
|
89
|
|
|
3,917
|
|
|
4,006
|
|
|
1,756,439
|
|
|
1,768,917
|
|
||||||||
Other consumer
|
|
14
|
|
|
23
|
|
|
37
|
|
|
—
|
|
|
2,491
|
|
|
2,491
|
|
|
333,976
|
|
|
336,504
|
|
||||||||
Total consumer
|
|
17,569
|
|
|
9,564
|
|
|
27,133
|
|
|
95
|
|
|
12,325
|
|
|
12,420
|
|
|
6,594,779
|
|
|
6,634,332
|
|
||||||||
Total
|
|
$
|
57,551
|
|
|
$
|
10,126
|
|
|
$
|
67,677
|
|
|
$
|
34,351
|
|
|
$
|
79,958
|
|
|
$
|
114,309
|
|
|
$
|
28,311,445
|
|
|
$
|
28,493,431
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Year Ended December 31, 2018
|
|||||||||||||
|
Number
of Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
C&I
|
|
8
|
|
|
$
|
11,366
|
|
|
$
|
9,520
|
|
|
$
|
699
|
|
CRE
|
|
1
|
|
|
$
|
750
|
|
|
$
|
752
|
|
|
$
|
—
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|||||||
Single-family residential
|
|
2
|
|
|
$
|
405
|
|
|
$
|
391
|
|
|
$
|
(28
|
)
|
HELOCs
|
|
2
|
|
|
$
|
1,546
|
|
|
$
|
1,418
|
|
|
$
|
—
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Year Ended December 31, 2017
|
|||||||||||||
|
Number
of Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
C&I
|
|
16
|
|
|
$
|
43,884
|
|
|
$
|
37,900
|
|
|
$
|
11,520
|
|
CRE
|
|
4
|
|
|
$
|
2,675
|
|
|
$
|
2,627
|
|
|
$
|
157
|
|
Multifamily residential
|
|
1
|
|
|
$
|
3,655
|
|
|
$
|
2,969
|
|
|
$
|
—
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|||||||
HELOCs
|
|
1
|
|
|
$
|
152
|
|
|
$
|
155
|
|
|
$
|
—
|
|
|
|
|||||||||||||||
($ 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) |
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
C&I
|
|
18
|
|
|
$
|
65,991
|
|
|
$
|
40,405
|
|
|
$
|
20,574
|
|
CRE
|
|
6
|
|
|
$
|
19,275
|
|
|
$
|
18,824
|
|
|
$
|
701
|
|
Construction and land
|
|
1
|
|
|
$
|
5,522
|
|
|
$
|
4,883
|
|
|
$
|
—
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|||||||
Single-family residential
|
|
3
|
|
|
$
|
1,291
|
|
|
$
|
1,268
|
|
|
$
|
—
|
|
HELOCs
|
|
3
|
|
|
$
|
491
|
|
|
$
|
382
|
|
|
$
|
1
|
|
|
(1)
|
Includes subsequent payments after modification and reflects the balance as of
December 31, 2018
,
2017
and
2016
.
|
(2)
|
The financial impact includes increases (decreases) in charge-offs and specific reserves recorded at the modification date.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2018
|
||||||||||||||||||||||
|
Principal
(1)
|
|
Principal
and
Interest
(2)
|
|
Interest
Rate
Reduction
|
|
Interest
Deferments |
|
Other
|
|
Total
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
5,472
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,048
|
|
|
$
|
9,520
|
|
CRE
|
|
—
|
|
|
—
|
|
|
752
|
|
|
—
|
|
|
—
|
|
|
752
|
|
||||||
Total commercial
|
|
5,472
|
|
|
—
|
|
|
752
|
|
|
—
|
|
|
4,048
|
|
|
10,272
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
325
|
|
|
391
|
|
||||||
HELOCs
|
|
1,353
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
1,418
|
|
||||||
Total consumer
|
|
1,419
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
390
|
|
|
1,809
|
|
||||||
Total
|
|
$
|
6,891
|
|
|
$
|
—
|
|
|
$
|
752
|
|
|
$
|
—
|
|
|
$
|
4,438
|
|
|
$
|
12,081
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2017
|
||||||||||||||||||||||
|
Principal
(1)
|
|
Principal
and
Interest
(2)
|
|
Interest
Rate
Reduction
|
|
Interest
Deferments
|
|
Other
|
|
Total
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
13,568
|
|
|
$
|
7,848
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,484
|
|
|
$
|
37,900
|
|
CRE
|
|
2,627
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,627
|
|
||||||
Multifamily residential
|
|
2,969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,969
|
|
||||||
Total commercial
|
|
19,164
|
|
|
7,848
|
|
|
—
|
|
|
—
|
|
|
16,484
|
|
|
43,496
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
HELOCs
|
|
—
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||||
Total consumer
|
|
—
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||||
Total
|
|
$
|
19,164
|
|
|
$
|
8,003
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,484
|
|
|
$
|
43,651
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2016
|
||||||||||||||||||||||
|
Principal
(1)
|
|
Principal
and Interest (2) |
|
Interest
Rate Reduction |
|
Interest
Deferments |
|
Other
|
|
Total
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
34,499
|
|
|
$
|
—
|
|
|
$
|
5,876
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
40,405
|
|
CRE
|
|
17,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,074
|
|
|
18,824
|
|
||||||
Construction and land
|
|
4,883
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,883
|
|
||||||
Total commercial
|
|
57,132
|
|
|
—
|
|
|
5,876
|
|
|
30
|
|
|
1,074
|
|
|
64,112
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
264
|
|
|
—
|
|
|
797
|
|
|
207
|
|
|
—
|
|
|
1,268
|
|
||||||
HELOCs
|
|
333
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
382
|
|
||||||
Total consumer
|
|
597
|
|
|
—
|
|
|
846
|
|
|
207
|
|
|
—
|
|
|
1,650
|
|
||||||
Total
|
|
$
|
57,729
|
|
|
$
|
—
|
|
|
$
|
6,722
|
|
|
$
|
237
|
|
|
$
|
1,074
|
|
|
$
|
65,762
|
|
|
(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, |
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
C&I
|
|
4
|
|
|
$
|
1,890
|
|
|
3
|
|
|
$
|
8,659
|
|
|
—
|
|
|
$
|
—
|
|
CRE
|
|
1
|
|
|
$
|
186
|
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
3,150
|
|
Construction and land
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
4,883
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
HELOCs
|
|
1
|
|
|
$
|
150
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
With No
Allowance
|
|
Recorded
Investment
With
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
82,963
|
|
|
$
|
48,479
|
|
|
$
|
8,609
|
|
|
$
|
57,088
|
|
|
$
|
1,219
|
|
CRE
|
|
36,426
|
|
|
28,285
|
|
|
2,067
|
|
|
30,352
|
|
|
208
|
|
|||||
Multifamily residential
|
|
6,031
|
|
|
2,949
|
|
|
2,611
|
|
|
5,560
|
|
|
75
|
|
|||||
Total commercial
|
|
125,420
|
|
|
79,713
|
|
|
13,287
|
|
|
93,000
|
|
|
1,502
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
14,670
|
|
|
2,552
|
|
|
10,908
|
|
|
13,460
|
|
|
34
|
|
|||||
HELOCs
|
|
10,035
|
|
|
5,547
|
|
|
4,409
|
|
|
9,956
|
|
|
5
|
|
|||||
Other consumer
|
|
2,502
|
|
|
—
|
|
|
2,502
|
|
|
2,502
|
|
|
2,491
|
|
|||||
Total consumer
|
|
27,207
|
|
|
8,099
|
|
|
17,819
|
|
|
25,918
|
|
|
2,530
|
|
|||||
Total non-PCI impaired loans
|
|
$
|
152,627
|
|
|
$
|
87,812
|
|
|
$
|
31,106
|
|
|
$
|
118,918
|
|
|
$
|
4,032
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
With No
Allowance
|
|
Recorded
Investment
With
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
130,773
|
|
|
$
|
36,086
|
|
|
$
|
62,599
|
|
|
$
|
98,685
|
|
|
$
|
16,094
|
|
CRE
|
|
41,248
|
|
|
28,699
|
|
|
6,857
|
|
|
35,556
|
|
|
684
|
|
|||||
Multifamily residential
|
|
11,164
|
|
|
8,019
|
|
|
2,617
|
|
|
10,636
|
|
|
88
|
|
|||||
Construction and land
|
|
4,781
|
|
|
3,973
|
|
|
—
|
|
|
3,973
|
|
|
—
|
|
|||||
Total commercial
|
|
187,966
|
|
|
76,777
|
|
|
72,073
|
|
|
148,850
|
|
|
16,866
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
15,501
|
|
|
—
|
|
|
14,338
|
|
|
14,338
|
|
|
534
|
|
|||||
HELOCs
|
|
5,484
|
|
|
2,287
|
|
|
2,921
|
|
|
5,208
|
|
|
4
|
|
|||||
Other consumer
|
|
2,491
|
|
|
—
|
|
|
2,491
|
|
|
2,491
|
|
|
2,491
|
|
|||||
Total consumer
|
|
23,476
|
|
|
2,287
|
|
|
19,750
|
|
|
22,037
|
|
|
3,029
|
|
|||||
Total non-PCI impaired loans
|
|
$
|
211,442
|
|
|
$
|
79,064
|
|
|
$
|
91,823
|
|
|
$
|
170,887
|
|
|
$
|
19,895
|
|
|
|
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||
|
Average
Recorded
Investment
|
|
Recognized
Interest
Income
(1)
|
|
Average
Recorded Investment |
|
Recognized
Interest Income (1) |
|
Average
Recorded Investment |
|
Recognized
Interest
Income
(1)
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
143,430
|
|
|
$
|
1,046
|
|
|
$
|
110,662
|
|
|
$
|
1,517
|
|
|
$
|
148,986
|
|
|
$
|
2,612
|
|
CRE
|
|
35,049
|
|
|
491
|
|
|
36,003
|
|
|
578
|
|
|
47,064
|
|
|
1,253
|
|
||||||
Multifamily residential
|
|
11,742
|
|
|
249
|
|
|
11,455
|
|
|
422
|
|
|
15,763
|
|
|
302
|
|
||||||
Construction and land
|
|
3,973
|
|
|
—
|
|
|
4,382
|
|
|
—
|
|
|
6,388
|
|
|
34
|
|
||||||
Total commercial
|
|
194,194
|
|
|
1,786
|
|
|
162,502
|
|
|
2,517
|
|
|
218,201
|
|
|
4,201
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
22,350
|
|
|
474
|
|
|
14,994
|
|
|
417
|
|
|
14,323
|
|
|
447
|
|
||||||
HELOCs
|
|
14,134
|
|
|
70
|
|
|
5,494
|
|
|
55
|
|
|
3,703
|
|
|
63
|
|
||||||
Other consumer
|
|
2,502
|
|
|
—
|
|
|
2,142
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer
|
|
38,986
|
|
|
544
|
|
|
22,630
|
|
|
472
|
|
|
18,026
|
|
|
510
|
|
||||||
Total non-PCI impaired loans
|
|
$
|
233,180
|
|
|
$
|
2,330
|
|
|
$
|
185,132
|
|
|
$
|
2,989
|
|
|
$
|
236,227
|
|
|
$
|
4,711
|
|
|
|
|
|
|
(1)
|
Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal, not as interest income.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Non-PCI Loans
|
|
|
|
|
|
|
||||||
Allowance for non-PCI loans, beginning of period
|
|
$
|
287,070
|
|
|
$
|
260,402
|
|
|
$
|
264,600
|
|
Provision for loan losses on non-PCI loans
|
|
65,043
|
|
|
49,129
|
|
|
31,959
|
|
|||
Gross charge-offs:
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
||||||
C&I
|
|
(59,244
|
)
|
|
(38,118
|
)
|
|
(47,739
|
)
|
|||
CRE
|
|
—
|
|
|
—
|
|
|
(464
|
)
|
|||
Multifamily residential
|
|
—
|
|
|
(635
|
)
|
|
(29
|
)
|
|||
Construction and land
|
|
—
|
|
|
(149
|
)
|
|
(117
|
)
|
|||
Consumer:
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
(1
|
)
|
|
(1
|
)
|
|
(137
|
)
|
|||
HELOCs
|
|
—
|
|
|
(55
|
)
|
|
(9
|
)
|
|||
Other consumer
|
|
(188
|
)
|
|
(17
|
)
|
|
(13
|
)
|
|||
Total gross charge-offs
|
|
(59,433
|
)
|
|
(38,975
|
)
|
|
(48,508
|
)
|
|||
Gross recoveries:
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
||||||
C&I
|
|
10,417
|
|
|
11,371
|
|
|
9,003
|
|
|||
CRE
|
|
5,194
|
|
|
2,111
|
|
|
1,488
|
|
|||
Multifamily residential
|
|
1,757
|
|
|
1,357
|
|
|
1,476
|
|
|||
Construction and land
|
|
740
|
|
|
259
|
|
|
203
|
|
|||
Consumer:
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
1,214
|
|
|
546
|
|
|
401
|
|
|||
HELOCs
|
|
38
|
|
|
24
|
|
|
7
|
|
|||
Other consumer
|
|
3
|
|
|
152
|
|
|
323
|
|
|||
Total gross recoveries
|
|
19,363
|
|
|
15,820
|
|
|
12,901
|
|
|||
Net charge-offs
|
|
(40,070
|
)
|
|
(23,155
|
)
|
|
(35,607
|
)
|
|||
Foreign currency translation adjustments
|
|
(743
|
)
|
|
694
|
|
|
(550
|
)
|
|||
Allowance for non-PCI loans, end of period
|
|
311,300
|
|
|
287,070
|
|
|
260,402
|
|
|||
PCI Loans
|
|
|
|
|
|
|
||||||
Allowance for PCI loans, beginning of period
|
|
58
|
|
|
118
|
|
|
359
|
|
|||
Reversal of loan losses on PCI loans
|
|
(36
|
)
|
|
(60
|
)
|
|
(241
|
)
|
|||
Allowance for PCI loans, end of period
|
|
22
|
|
|
58
|
|
|
118
|
|
|||
Allowance for loan losses
|
|
$
|
311,322
|
|
|
$
|
287,128
|
|
|
$
|
260,520
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Allowance for unfunded credit reserves, beginning of period
|
|
$
|
13,318
|
|
|
$
|
16,121
|
|
|
$
|
20,360
|
|
Reversal of unfunded credit reserves
|
|
(752
|
)
|
|
(2,803
|
)
|
|
(4,239
|
)
|
|||
Allowance for unfunded credit reserves, end of period
|
|
$
|
12,566
|
|
|
$
|
13,318
|
|
|
$
|
16,121
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer |
|
||||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
1,219
|
|
|
$
|
208
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
5
|
|
|
$
|
2,491
|
|
|
$
|
4,032
|
|
Collectively evaluated for impairment
|
|
190,121
|
|
|
38,823
|
|
|
19,208
|
|
|
20,282
|
|
|
31,306
|
|
|
5,769
|
|
|
1,759
|
|
|
307,268
|
|
||||||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||||||||
Total
|
|
$
|
191,340
|
|
|
$
|
39,053
|
|
|
$
|
19,283
|
|
|
$
|
20,282
|
|
|
$
|
31,340
|
|
|
$
|
5,774
|
|
|
$
|
4,250
|
|
|
$
|
311,322
|
|
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
57,088
|
|
|
$
|
30,352
|
|
|
$
|
5,560
|
|
|
$
|
—
|
|
|
$
|
13,460
|
|
|
$
|
9,956
|
|
|
$
|
2,502
|
|
|
$
|
118,918
|
|
Collectively evaluated for impairment
|
|
11,997,730
|
|
|
9,254,231
|
|
|
2,240,946
|
|
|
538,752
|
|
|
5,925,798
|
|
|
1,672,023
|
|
|
328,768
|
|
|
31,958,248
|
|
||||||||
Acquired with deteriorated credit quality
(1)
|
|
2,152
|
|
|
165,252
|
|
|
34,526
|
|
|
42
|
|
|
97,196
|
|
|
8,855
|
|
|
—
|
|
|
308,023
|
|
||||||||
Total
(1)
|
|
$
|
12,056,970
|
|
|
$
|
9,449,835
|
|
|
$
|
2,281,032
|
|
|
$
|
538,794
|
|
|
$
|
6,036,454
|
|
|
$
|
1,690,834
|
|
|
$
|
331,270
|
|
|
$
|
32,385,189
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer |
|
||||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
16,094
|
|
|
$
|
684
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
534
|
|
|
$
|
4
|
|
|
$
|
2,491
|
|
|
$
|
19,895
|
|
Collectively evaluated for impairment
|
|
146,964
|
|
|
40,495
|
|
|
19,021
|
|
|
26,881
|
|
|
25,828
|
|
|
7,350
|
|
|
636
|
|
|
267,175
|
|
||||||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
||||||||
Total
|
|
$
|
163,058
|
|
|
$
|
41,237
|
|
|
$
|
19,109
|
|
|
$
|
26,881
|
|
|
$
|
26,362
|
|
|
$
|
7,354
|
|
|
$
|
3,127
|
|
|
$
|
287,128
|
|
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
98,685
|
|
|
$
|
35,556
|
|
|
$
|
10,636
|
|
|
$
|
3,973
|
|
|
$
|
14,338
|
|
|
$
|
5,208
|
|
|
$
|
2,491
|
|
|
$
|
170,887
|
|
Collectively evaluated for impairment
|
|
10,586,751
|
|
|
8,623,653
|
|
|
1,844,492
|
|
|
655,353
|
|
|
4,514,573
|
|
|
1,763,709
|
|
|
334,013
|
|
|
28,322,544
|
|
||||||||
Acquired with deteriorated credit quality
(1)
|
|
11,795
|
|
|
277,688
|
|
|
61,048
|
|
|
371
|
|
|
117,378
|
|
|
14,007
|
|
|
—
|
|
|
482,287
|
|
||||||||
Total
(1)
|
|
$
|
10,697,231
|
|
|
$
|
8,936,897
|
|
|
$
|
1,916,176
|
|
|
$
|
659,697
|
|
|
$
|
4,646,289
|
|
|
$
|
1,782,924
|
|
|
$
|
336,504
|
|
|
$
|
28,975,718
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Accretable yield for PCI loans, beginning of period
|
|
$
|
101,977
|
|
|
$
|
136,247
|
|
|
$
|
214,907
|
|
Accretion
|
|
(34,662
|
)
|
|
(42,487
|
)
|
|
(68,708
|
)
|
|||
Changes in expected cash flows
|
|
7,555
|
|
|
8,217
|
|
|
(9,952
|
)
|
|||
Accretable yield for PCI loans, end of period
|
|
$
|
74,870
|
|
|
$
|
101,977
|
|
|
$
|
136,247
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential
|
|
Construction
and Land
|
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer
|
|
Total
|
|||||||||||||||||
Loans transferred from held-for-investment to held-for-sale
(1)
|
|
$
|
404,321
|
|
|
$
|
62,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,981
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
481,593
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
2,306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,306
|
|
Sales
(2)(3)(4)
|
|
$
|
413,844
|
|
|
$
|
62,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,966
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
511,101
|
|
Purchases
(6)
|
|
$
|
525,767
|
|
|
$
|
—
|
|
|
$
|
7,389
|
|
|
$
|
—
|
|
|
$
|
63,781
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
596,937
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer |
|
Total
|
|||||||||||||||||
Loans transferred from held-for-investment to held-for-sale
(1)
|
|
$
|
476,644
|
|
|
$
|
52,217
|
|
|
$
|
531
|
|
|
$
|
1,609
|
|
|
$
|
249
|
|
|
$
|
—
|
|
|
$
|
3,706
|
|
|
$
|
534,956
|
|
Loans of DCB branches transferred from held-for-investment to held-for-sale (included in
Branch assets held-for-sale
)
(1)
|
|
$
|
17,590
|
|
|
$
|
36,783
|
|
|
$
|
12,448
|
|
|
$
|
241
|
|
|
$
|
6,416
|
|
|
$
|
4,309
|
|
|
$
|
345
|
|
|
$
|
78,132
|
|
Sales
(2)(3)(4)
|
|
$
|
476,644
|
|
|
$
|
52,217
|
|
|
$
|
531
|
|
|
$
|
1,609
|
|
|
$
|
21,058
|
|
|
$
|
—
|
|
|
$
|
25,905
|
|
|
$
|
577,964
|
|
Purchases
(6)
|
|
$
|
503,359
|
|
|
$
|
—
|
|
|
$
|
2,311
|
|
|
$
|
—
|
|
|
$
|
29,060
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
534,730
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer |
|
Total
|
|||||||||||||||||
Loans transferred from held-for-investment to held-for-sale
(1)
|
|
$
|
434,137
|
|
|
$
|
110,927
|
|
|
$
|
269,791
|
|
|
$
|
4,245
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
819,100
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,943
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,943
|
|
Sales
(2)(3)(4)
|
|
$
|
434,137
|
|
|
$
|
110,927
|
|
|
$
|
61,268
|
|
|
$
|
4,245
|
|
|
$
|
18,092
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
628,669
|
|
Securitization of loans held-for-investment
(5)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
201,675
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
201,675
|
|
Purchases
(6)(7)
|
|
$
|
646,793
|
|
|
$
|
—
|
|
|
$
|
5,658
|
|
|
$
|
—
|
|
|
$
|
488,577
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,141,028
|
|
|
(1)
|
The Company recorded
$14.6 million
,
$473 thousand
and
$1.9 million
in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended
December 31, 2018
,
2017
and
2016
, respectively.
|
(2)
|
Includes originated loans sold of
$309.7 million
, $
178.2 million
and
$369.6 million
for the years ended
December 31, 2018
,
2017
and
2016
, respectively. Originated loans sold were primarily comprised of C&I loans for the year ended
December 31, 2018
; C&I, CRE and single-family residential loans for the year ended
December 31, 2017
; and C&I, CRE and multifamily residential loans for the year ended
December 31, 2016
.
|
(3)
|
Includes purchased loans sold in the secondary market of
$201.4 million
,
$399.8 million
and
$259.1 million
for the years ended
December 31, 2018
,
2017
and
2016
, respectively.
|
(4)
|
Net gains on sales of loans, excluding the lower of cost or fair value adjustments, were
$6.6 million
,
$8.9 million
and
$10.6 million
for the years ended
December 31, 2018
,
2017
and
2016
, respectively.
No
lower of cost or fair value adjustments were recorded for the year ended
December 31, 2018
. In comparison, lower of cost or fair value adjustments of
$61 thousand
and
$5.6 million
for the years ended
December 31, 2017
and
2016
, respectively, were recorded in
Net gains on sales of loans
on the Consolidated Statement of Income.
|
(5)
|
Represents multifamily residential loans securitized during the first quarter of 2016 that resulted in net gains of
$1.1 million
, mortgage servicing rights of
$641 thousand
and held-to-maturity investment security of
$160.1 million
.
|
(6)
|
C&I loan purchases for each of the year ended
December 31, 2018
,
2017
and
2016
were mainly comprised of C&I syndicated loans.
|
(7)
|
The higher loan purchases for the year ended
December 31, 2016
was mainly due to
$488.3 million
of single-family residential loans purchased for CRA purposes.
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
|||||
Investments in qualified affordable housing partnerships, net
|
|
$
|
184,873
|
|
|
$
|
162,824
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
80,764
|
|
|
$
|
55,815
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Tax credits and other tax benefits recognized
|
|
$
|
39,262
|
|
|
$
|
46,698
|
|
|
$
|
37,252
|
|
Amortization expense included in income tax expense
|
|
$
|
28,046
|
|
|
$
|
38,464
|
|
|
$
|
28,206
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
|||||
Investments in tax credit and other investments, net
|
|
$
|
231,635
|
|
|
$
|
224,551
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
80,228
|
|
|
$
|
113,372
|
|
|
|
|
|
||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Amortization expense included in noninterest expense
|
|
$
|
89,628
|
|
|
$
|
87,950
|
|
|
$
|
83,446
|
|
|
|
|
|
|
|
||
Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2019
|
|
$
|
108,602
|
|
2020
|
|
30,400
|
|
|
2021
|
|
8,615
|
|
|
2022
|
|
6,224
|
|
|
2023
|
|
5,401
|
|
|
Thereafter
|
|
1,750
|
|
|
Total
|
|
$
|
160,992
|
|
|
|
|
|
||||||||||||
($ in thousands)
|
|
Consumer
and
Business Banking
|
|
Commercial Banking
|
|
Total
|
||||||
Beginning Balance, January 1, 2018
|
|
$
|
357,207
|
|
|
$
|
112,226
|
|
|
$
|
469,433
|
|
Disposition of the DCB branches
|
|
(3,886
|
)
|
|
—
|
|
|
(3,886
|
)
|
|||
Ending Balance, December 31, 2018
|
|
$
|
353,321
|
|
|
$
|
112,226
|
|
|
$
|
465,547
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
|||||
Gross balance
(1)
|
|
$
|
86,099
|
|
|
$
|
100,166
|
|
Accumulated amortization
(1)
|
|
(71,570
|
)
|
|
(79,112
|
)
|
||
Net carrying balance
(1)
|
|
$
|
14,529
|
|
|
$
|
21,054
|
|
|
(1)
|
Excludes fully amortized core deposit intangible assets.
|
|
||||
|
|
Amount
|
||
Years Ending December 31,
|
|
($ in thousands)
|
||
2019
|
|
$
|
4,518
|
|
2020
|
|
3,634
|
|
|
2021
|
|
2,749
|
|
|
2022
|
|
1,865
|
|
|
2023
|
|
1,199
|
|
|
Thereafter
|
|
564
|
|
|
Total
|
|
$
|
14,529
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
|||||
Core deposits:
|
|
|
|
|
||||
Noninterest-bearing demand
|
|
$
|
11,377,009
|
|
|
$
|
10,887,306
|
|
Interest-bearing checking
|
|
4,584,447
|
|
|
4,419,089
|
|
||
Money market
|
|
8,262,677
|
|
|
8,359,425
|
|
||
Savings
|
|
2,146,429
|
|
|
2,308,494
|
|
||
Total core deposits
|
|
26,370,562
|
|
|
25,974,314
|
|
||
Time deposits:
|
|
|
|
|
||||
Less than $100,000
|
|
1,957,121
|
|
|
1,176,973
|
|
||
$100,000 or greater
|
|
7,111,945
|
|
|
4,463,776
|
|
||
Total time deposits
|
|
9,069,066
|
|
|
5,640,749
|
|
||
Total deposits
|
|
$
|
35,439,628
|
|
|
$
|
31,615,063
|
|
|
|
||||
($ in thousands)
|
|
Amount
|
||
2019
|
|
$
|
8,413,358
|
|
2020
|
|
484,386
|
|
|
2021
|
|
68,186
|
|
|
2022
|
|
67,182
|
|
|
2023
|
|
9,026
|
|
|
Thereafter
|
|
26,928
|
|
|
Total
|
|
$
|
9,069,066
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
|||||
Junior subordinated debt
|
|
$
|
146,835
|
|
|
$
|
146,577
|
|
Term loan
|
|
—
|
|
|
25,000
|
|
||
Total long-term debt
|
|
$
|
146,835
|
|
|
$
|
171,577
|
|
|
|
|
|
||||||||||||||||||||
Issuer
|
|
Stated
Maturity (1) |
|
Stated
Interest Rate |
|
Current Rate
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
|
|
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%
|
|
4.45%
|
|
$
|
464
|
|
|
$
|
15,000
|
|
|
$
|
464
|
|
|
$
|
15,000
|
|
East West Capital Trust VI
|
|
September 2035
|
|
3-month LIBOR + 1.50%
|
|
4.29%
|
|
619
|
|
|
20,000
|
|
|
619
|
|
|
20,000
|
|
||||
East West Capital Trust VII
|
|
June 2036
|
|
3-month LIBOR + 1.35%
|
|
4.14%
|
|
928
|
|
|
30,000
|
|
|
928
|
|
|
30,000
|
|
||||
East West Capital Trust VIII
|
|
June 2037
|
|
3-month LIBOR + 1.40%
|
|
4.14%
|
|
619
|
|
|
18,000
|
|
|
619
|
|
|
18,000
|
|
||||
East West Capital Trust IX
|
|
September 2037
|
|
3-month LIBOR + 1.90%
|
|
4.69%
|
|
928
|
|
|
30,000
|
|
|
928
|
|
|
30,000
|
|
||||
MCBI Statutory Trust I
|
|
December 2035
|
|
3-month LIBOR + 1.55%
|
|
4.34%
|
|
1,083
|
|
|
35,000
|
|
|
1,083
|
|
|
35,000
|
|
||||
Total
|
|
|
|
|
|
|
|
$
|
4,641
|
|
|
$
|
148,000
|
|
|
$
|
4,641
|
|
|
$
|
148,000
|
|
|
(1)
|
All the debt instruments mature more than five years after December 31, 2018 and are subject to call options where early redemption requires appropriate notice.
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers
(1)
:
|
|
|
|
|
|
|
|
|
||||||||
Branch fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
22,474
|
|
|
$
|
12,326
|
|
|
$
|
423
|
|
|
$
|
35,223
|
|
Card income
|
|
3,880
|
|
|
756
|
|
|
—
|
|
|
4,636
|
|
||||
Wealth management fees
|
|
13,357
|
|
|
428
|
|
|
—
|
|
|
13,785
|
|
||||
Total revenue from contracts with customers
|
|
$
|
39,711
|
|
|
$
|
13,510
|
|
|
$
|
423
|
|
|
$
|
53,644
|
|
Other sources of noninterest income
(2)
|
|
45,896
|
|
|
96,777
|
|
|
14,592
|
|
|
157,265
|
|
||||
Total noninterest income
|
|
$
|
85,607
|
|
|
$
|
110,287
|
|
|
$
|
15,015
|
|
|
$
|
210,909
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers
(1)
:
|
|
|
|
|
|
|
|
|
||||||||
Branch fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
24,109
|
|
|
$
|
11,476
|
|
|
$
|
464
|
|
|
$
|
36,049
|
|
Card income
|
|
3,938
|
|
|
938
|
|
|
—
|
|
|
4,876
|
|
||||
Wealth management fees
|
|
12,218
|
|
|
1,756
|
|
|
—
|
|
|
13,974
|
|
||||
Total revenue from contracts with customers
|
|
$
|
40,265
|
|
|
$
|
14,170
|
|
|
$
|
464
|
|
|
$
|
54,899
|
|
Other sources of noninterest income
(2)
|
|
14,186
|
|
|
95,919
|
|
|
92,744
|
|
|
202,849
|
|
||||
Total noninterest income
|
|
$
|
54,451
|
|
|
$
|
110,089
|
|
|
$
|
93,208
|
|
|
$
|
257,748
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2016
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers
(1)
:
|
|
|
|
|
|
|
|
|
||||||||
Branch fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
23,965
|
|
|
$
|
10,200
|
|
|
$
|
345
|
|
|
$
|
34,510
|
|
Card income
|
|
4,352
|
|
|
763
|
|
|
29
|
|
|
5,144
|
|
||||
Wealth management fees
|
|
9,425
|
|
|
3,171
|
|
|
4
|
|
|
12,600
|
|
||||
Total revenue from contracts with customers
|
|
$
|
37,742
|
|
|
$
|
14,134
|
|
|
$
|
378
|
|
|
$
|
52,254
|
|
Other sources of noninterest income
(2)
|
|
13,509
|
|
|
81,422
|
|
|
35,093
|
|
|
130,024
|
|
||||
Total noninterest income
|
|
$
|
51,251
|
|
|
$
|
95,556
|
|
|
$
|
35,471
|
|
|
$
|
182,278
|
|
|
(1)
|
There were no adjustments to the Company’s financial statements recorded as a result of the adoption of ASC 606. For comparability, the Company has adjusted prior period amounts to conform to the current period’s presentation.
|
(2)
|
Primarily represents revenue from contracts with customers that are out of the scope of ASC 606.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Current income tax expense:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
63,035
|
|
|
$
|
120,968
|
|
|
$
|
63,642
|
|
State
|
|
64,917
|
|
|
72,837
|
|
|
48,558
|
|
|||
Foreign
|
|
3,513
|
|
|
1,815
|
|
|
1,345
|
|
|||
Total current income tax expense
|
|
131,465
|
|
|
195,620
|
|
|
113,545
|
|
|||
Deferred income tax (benefit) expense:
|
|
|
|
|
|
|
||||||
Federal
|
|
(11,870
|
)
|
|
40,057
|
|
|
25,296
|
|
|||
State
|
|
(4,600
|
)
|
|
(6,201
|
)
|
|
1,883
|
|
|||
Foreign
|
|
—
|
|
|
—
|
|
|
(213
|
)
|
|||
Total deferred income tax (benefit) expense
|
|
(16,470
|
)
|
|
33,856
|
|
|
26,966
|
|
|||
Income tax expense
|
|
$
|
114,995
|
|
|
$
|
229,476
|
|
|
$
|
140,511
|
|
|
|
|||||||||
|
|
Year Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
||||
Federal income tax provision at statutory rate
|
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State franchise taxes, net of federal tax effect
|
|
5.8
|
|
|
5.9
|
|
|
6.1
|
|
Tax Cuts and Jobs Act of 2017 (the “Tax Act”)
|
|
0.1
|
|
|
4.5
|
|
|
—
|
|
Tax credits, net of amortization
|
|
(13.3
|
)
|
|
(15.1
|
)
|
|
(18.3
|
)
|
Other, net
|
|
0.4
|
|
|
0.9
|
|
|
1.8
|
|
Effective tax rate
|
|
14.0
|
%
|
|
31.2
|
%
|
|
24.6
|
%
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|||||||||||||||||||||||||||||
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
|||||||||||||||||
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses and OREO reserves
|
|
$
|
66,510
|
|
|
$
|
30,366
|
|
|
$
|
1,366
|
|
|
$
|
98,242
|
|
|
$
|
62,942
|
|
|
$
|
28,857
|
|
|
$
|
1,365
|
|
|
$
|
93,164
|
|
Tax credit carryforwards
|
|
24,116
|
|
|
2,715
|
|
|
—
|
|
|
26,831
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Unrealized losses on securities
|
|
13,127
|
|
|
7,106
|
|
|
—
|
|
|
20,233
|
|
|
10,730
|
|
|
5,354
|
|
|
—
|
|
|
16,084
|
|
||||||||
Deferred compensation
|
|
13,081
|
|
|
5,919
|
|
|
—
|
|
|
19,000
|
|
|
11,483
|
|
|
5,220
|
|
|
—
|
|
|
16,703
|
|
||||||||
Interest income on nonaccrual loans
|
|
5,922
|
|
|
2,680
|
|
|
—
|
|
|
8,602
|
|
|
5,396
|
|
|
2,451
|
|
|
—
|
|
|
7,847
|
|
||||||||
State taxes
|
|
4,898
|
|
|
—
|
|
|
—
|
|
|
4,898
|
|
|
5,217
|
|
|
—
|
|
|
—
|
|
|
5,217
|
|
||||||||
Mortgage servicing assets
|
|
1,406
|
|
|
605
|
|
|
—
|
|
|
2,011
|
|
|
2,727
|
|
|
1,206
|
|
|
—
|
|
|
3,933
|
|
||||||||
Fixed assets
|
|
(1,047
|
)
|
|
1,932
|
|
|
—
|
|
|
885
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other, net
|
|
2,027
|
|
|
5,422
|
|
|
97
|
|
|
7,546
|
|
|
744
|
|
|
5,481
|
|
|
97
|
|
|
6,322
|
|
||||||||
Total gross deferred tax assets
|
|
130,040
|
|
|
56,745
|
|
|
1,463
|
|
|
188,248
|
|
|
99,239
|
|
|
48,569
|
|
|
1,462
|
|
|
149,270
|
|
||||||||
Valuation allowance
|
|
—
|
|
|
(128
|
)
|
|
—
|
|
|
(128
|
)
|
|
—
|
|
|
(256
|
)
|
|
—
|
|
|
(256
|
)
|
||||||||
Total deferred tax assets, net of valuation allowance
|
|
$
|
130,040
|
|
|
$
|
56,617
|
|
|
$
|
1,463
|
|
|
$
|
188,120
|
|
|
$
|
99,239
|
|
|
$
|
48,313
|
|
|
$
|
1,462
|
|
|
$
|
149,014
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equipment financing
|
|
$
|
(26,040
|
)
|
|
$
|
(4,483
|
)
|
|
$
|
—
|
|
|
$
|
(30,523
|
)
|
|
$
|
(21,844
|
)
|
|
$
|
(3,760
|
)
|
|
$
|
—
|
|
|
$
|
(25,604
|
)
|
Investments in qualified affordable housing partnerships, tax credit and other investments, net
|
|
(31,098
|
)
|
|
3,806
|
|
|
—
|
|
|
(27,292
|
)
|
|
(10,838
|
)
|
|
7,025
|
|
|
—
|
|
|
(3,813
|
)
|
||||||||
Core deposit intangibles
|
|
(3,048
|
)
|
|
(1,494
|
)
|
|
—
|
|
|
(4,542
|
)
|
|
(4,408
|
)
|
|
(2,117
|
)
|
|
—
|
|
|
(6,525
|
)
|
||||||||
Acquired loans and OREO
|
|
(1,293
|
)
|
|
(318
|
)
|
|
(406
|
)
|
|
(2,017
|
)
|
|
(2,252
|
)
|
|
(754
|
)
|
|
(406
|
)
|
|
(3,412
|
)
|
||||||||
FHLB stock dividends
|
|
(1,285
|
)
|
|
(581
|
)
|
|
—
|
|
|
(1,866
|
)
|
|
(1,285
|
)
|
|
(583
|
)
|
|
—
|
|
|
(1,868
|
)
|
||||||||
Acquired debt
|
|
(1,219
|
)
|
|
(552
|
)
|
|
—
|
|
|
(1,771
|
)
|
|
(1,273
|
)
|
|
(578
|
)
|
|
—
|
|
|
(1,851
|
)
|
||||||||
Prepaid expenses
|
|
(831
|
)
|
|
(376
|
)
|
|
—
|
|
|
(1,207
|
)
|
|
(4,142
|
)
|
|
(1,517
|
)
|
|
—
|
|
|
(5,659
|
)
|
||||||||
Fixed assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,671
|
)
|
|
914
|
|
|
—
|
|
|
(1,757
|
)
|
||||||||
Other, net
|
|
(923
|
)
|
|
(338
|
)
|
|
—
|
|
|
(1,261
|
)
|
|
(510
|
)
|
|
(609
|
)
|
|
—
|
|
|
(1,119
|
)
|
||||||||
Total gross deferred tax liabilities
|
|
$
|
(65,737
|
)
|
|
$
|
(4,336
|
)
|
|
$
|
(406
|
)
|
|
$
|
(70,479
|
)
|
|
$
|
(49,223
|
)
|
|
$
|
(1,979
|
)
|
|
$
|
(406
|
)
|
|
$
|
(51,608
|
)
|
Net deferred tax assets
|
|
$
|
64,303
|
|
|
$
|
52,281
|
|
|
$
|
1,057
|
|
|
$
|
117,641
|
|
|
$
|
50,016
|
|
|
$
|
46,334
|
|
|
$
|
1,056
|
|
|
$
|
97,406
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Beginning Balance
|
|
$
|
10,419
|
|
|
$
|
10,419
|
|
|
$
|
7,125
|
|
Additions for tax positions related to prior years
|
|
—
|
|
|
—
|
|
|
5,819
|
|
|||
Deductions for tax positions related to prior years
|
|
(3,969
|
)
|
|
—
|
|
|
—
|
|
|||
Settlements with taxing authorities
|
|
(2,072
|
)
|
|
—
|
|
|
(2,525
|
)
|
|||
Ending Balance
|
|
$
|
4,378
|
|
|
$
|
10,419
|
|
|
$
|
10,419
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
|||||
Loan commitments
|
|
$
|
5,147,821
|
|
|
$
|
5,075,480
|
|
Commercial letters of credit and SBLCs
|
|
$
|
1,796,647
|
|
|
$
|
1,655,897
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Maximum Potential
Future Payments
|
|
Carrying Value
|
||||||||||||
|
December 31,
|
|
December 31,
|
|||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
Single-family residential loans sold or securitized with recourse
|
|
$
|
16,700
|
|
|
$
|
20,240
|
|
|
$
|
16,700
|
|
|
$
|
20,240
|
|
Multifamily residential loans sold or securitized with recourse
|
|
17,058
|
|
|
18,482
|
|
|
69,974
|
|
|
93,477
|
|
||||
Total
|
|
$
|
33,758
|
|
|
$
|
38,722
|
|
|
$
|
86,674
|
|
|
$
|
113,717
|
|
|
|
||||
Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2019
|
|
$
|
42,008
|
|
2020
|
|
36,169
|
|
|
2021
|
|
30,735
|
|
|
2022
|
|
21,395
|
|
|
2023
|
|
14,986
|
|
|
Thereafter
|
|
40,357
|
|
|
Total
|
|
$
|
185,650
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Stock compensation costs
|
|
$
|
30,937
|
|
|
$
|
24,657
|
|
|
$
|
22,102
|
|
Related net tax benefits for stock compensation plans
|
|
$
|
5,089
|
|
|
$
|
4,775
|
|
|
$
|
1,055
|
|
|
|
||||||||||||||
|
|
Year Ended December 31, 2018
|
||||||||||||
|
Time-Based RSUs
|
|
Performance-Based RSUs
|
|||||||||||
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted-
Average Grant Date Fair Value |
|||||||
Outstanding, beginning of year
|
|
1,166,580
|
|
|
$
|
42.00
|
|
|
424,299
|
|
|
$
|
41.44
|
|
Granted
|
|
427,805
|
|
|
66.86
|
|
|
120,286
|
|
|
70.13
|
|
||
Vested
|
|
(349,939
|
)
|
|
39.84
|
|
|
(133,295
|
)
|
|
41.15
|
|
||
Forfeited
|
|
(123,055
|
)
|
|
50.48
|
|
|
—
|
|
|
—
|
|
||
Outstanding, end of year
|
|
1,121,391
|
|
|
$
|
51.22
|
|
|
411,290
|
|
|
$
|
49.93
|
|
|
|
|
|
||
Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2019
|
|
$
|
329
|
|
2020
|
|
339
|
|
|
2021
|
|
349
|
|
|
2022
|
|
359
|
|
|
2023
|
|
370
|
|
|
Thereafter
|
|
7,484
|
|
|
Total
|
|
$
|
9,230
|
|
|
|
|
|
||||||||||||
($ and shares in thousands, except per share data)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Basic:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
|
|
|
|
|
|
|
||||||
Basic weighted-average number of shares outstanding
|
|
144,862
|
|
|
144,444
|
|
|
144,087
|
|
|||
Basic EPS
|
|
$
|
4.86
|
|
|
$
|
3.50
|
|
|
$
|
3.00
|
|
|
|
|
|
|
|
|
||||||
Diluted:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
|
|
|
|
|
|
|
||||||
Basic weighted-average number of shares outstanding
|
|
144,862
|
|
|
144,444
|
|
|
144,087
|
|
|||
Diluted potential common shares
(1)
|
|
1,307
|
|
|
1,469
|
|
|
1,085
|
|
|||
Diluted weighted-average number of shares outstanding
(1)
|
|
146,169
|
|
|
145,913
|
|
|
145,172
|
|
|||
Diluted EPS
|
|
$
|
4.81
|
|
|
$
|
3.47
|
|
|
$
|
2.97
|
|
|
(1)
|
Includes dilutive shares from RSUs and warrants for the years ended
December 31, 2018
,
2017
and
2016
.
|
|
||||||||||||
($ in thousands)
|
|
Available-
for-Sale Investment Securities |
|
Foreign
Currency Translation Adjustments (1) |
|
Total
|
||||||
Balance, December 31, 2015
|
|
$
|
(6,144
|
)
|
|
$
|
(8,797
|
)
|
|
$
|
(14,941
|
)
|
Net unrealized losses arising during the period
|
|
(16,623
|
)
|
|
(10,577
|
)
|
|
(27,200
|
)
|
|||
Amounts reclassified from AOCI
|
|
(6,005
|
)
|
|
—
|
|
|
(6,005
|
)
|
|||
Changes, net of tax
|
|
(22,628
|
)
|
|
(10,577
|
)
|
|
(33,205
|
)
|
|||
Balance, December 31, 2016
|
|
$
|
(28,772
|
)
|
|
$
|
(19,374
|
)
|
|
$
|
(48,146
|
)
|
Net unrealized gains arising during the period
|
|
2,531
|
|
|
12,753
|
|
|
15,284
|
|
|||
Amounts reclassified from AOCI
|
|
(4,657
|
)
|
|
—
|
|
|
(4,657
|
)
|
|||
Changes, net of tax
|
|
(2,126
|
)
|
|
12,753
|
|
|
10,627
|
|
|||
Balance, December 31, 2017
|
|
$
|
(30,898
|
)
|
|
$
|
(6,621
|
)
|
|
$
|
(37,519
|
)
|
Cumulative effect of change in accounting principle related to marketable equity securities
(2)
|
|
385
|
|
|
—
|
|
|
385
|
|
|||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate
(3)
|
|
(6,656
|
)
|
|
—
|
|
|
(6,656
|
)
|
|||
Balance, January 1, 2018, adjusted
|
|
(37,169
|
)
|
|
(6,621
|
)
|
|
(43,790
|
)
|
|||
Net unrealized losses arising during the period
|
|
(6,866
|
)
|
|
(5,732
|
)
|
|
(12,598
|
)
|
|||
Amounts reclassified from AOCI
|
|
(1,786
|
)
|
|
—
|
|
|
(1,786
|
)
|
|||
Changes, net of tax
|
|
(8,652
|
)
|
|
(5,732
|
)
|
|
(14,384
|
)
|
|||
Balance, December 31, 2018
|
|
$
|
(45,821
|
)
|
|
$
|
(12,353
|
)
|
|
$
|
(58,174
|
)
|
|
(1)
|
Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.
|
(2)
|
Represents the impact of the adoption in the first quarter of 2018 of ASU 2016-01,
Financial Instruments — Overall
(Subtopic 825-10):
Recognition and Measurement of Financial Assets and Financial Liabilities
. Refer to
Note 1
—
Summary of Significant Accounting Policies
to the Consolidated Financial Statements for additional information.
|
(3)
|
Represents amounts reclassified from AOCI to retained earnings due to early adoption of ASU 2018-02,
Income Statement — Reporting Comprehensive Income
(Topic 220):
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
. Refer to
Note 1
—
Summary of Significant Accounting Policies
to the Consolidated Financial Statements for additional information.
|
|
||||||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||||||||||||
|
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
|
|
$
|
(9,748
|
)
|
|
$
|
2,882
|
|
|
$
|
(6,866
|
)
|
|
$
|
4,368
|
|
|
$
|
(1,837
|
)
|
|
$
|
2,531
|
|
|
$
|
(28,681
|
)
|
|
$
|
12,058
|
|
|
$
|
(16,623
|
)
|
Net realized gains reclassified into net income
(1)
|
|
(2,535
|
)
|
|
749
|
|
|
(1,786
|
)
|
|
(8,037
|
)
|
|
3,380
|
|
|
(4,657
|
)
|
|
(10,362
|
)
|
|
4,357
|
|
|
(6,005
|
)
|
|||||||||
Net change
|
|
(12,283
|
)
|
|
3,631
|
|
|
(8,652
|
)
|
|
(3,669
|
)
|
|
1,543
|
|
|
(2,126
|
)
|
|
(39,043
|
)
|
|
16,415
|
|
|
(22,628
|
)
|
|||||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net unrealized (losses) gains arising during the period
|
|
(5,732
|
)
|
|
—
|
|
|
(5,732
|
)
|
|
12,753
|
|
|
—
|
|
|
12,753
|
|
|
(10,577
|
)
|
|
—
|
|
|
(10,577
|
)
|
|||||||||
Net change
|
|
(5,732
|
)
|
|
—
|
|
|
(5,732
|
)
|
|
12,753
|
|
|
—
|
|
|
12,753
|
|
|
(10,577
|
)
|
|
—
|
|
|
(10,577
|
)
|
|||||||||
Other comprehensive (loss) income
|
|
$
|
(18,015
|
)
|
|
$
|
3,631
|
|
|
$
|
(14,384
|
)
|
|
$
|
9,084
|
|
|
$
|
1,543
|
|
|
$
|
10,627
|
|
|
$
|
(49,620
|
)
|
|
$
|
16,415
|
|
|
$
|
(33,205
|
)
|
|
(1)
|
For the years ended
December 31, 2018
,
2017
and
2016
, pre-tax amounts were reported in
Net gains on sales of available-for-sale investment securities
on the Consolidated Statement of Income.
|
|
||||||||||||||||||||||||||
|
|
Basel III
|
||||||||||||||||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||
($ in thousands)
|
|
Actual
|
|
Minimum
Capital
Ratios
(3)
|
|
Well
Capitalized
Requirement
|
|
Actual
|
|
Minimum
Capital
Ratios
(3)
|
|
Well
Capitalized
Requirement
|
||||||||||||||
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
4,438,730
|
|
|
13.7
|
%
|
|
9.88
|
%
|
|
10.0
|
%
|
|
$
|
3,838,516
|
|
|
12.9
|
%
|
|
9.25
|
%
|
|
10.0
|
%
|
East West Bank
|
|
$
|
4,268,616
|
|
|
13.1
|
%
|
|
9.88
|
%
|
|
10.0
|
%
|
|
$
|
3,679,261
|
|
|
12.4
|
%
|
|
9.25
|
%
|
|
10.0
|
%
|
Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
3,966,842
|
|
|
12.2
|
%
|
|
7.88
|
%
|
|
8.0
|
%
|
|
$
|
3,390,070
|
|
|
11.4
|
%
|
|
7.25
|
%
|
|
8.0
|
%
|
East West Bank
|
|
$
|
3,944,728
|
|
|
12.1
|
%
|
|
7.88
|
%
|
|
8.0
|
%
|
|
$
|
3,378,815
|
|
|
11.4
|
%
|
|
7.25
|
%
|
|
8.0
|
%
|
CET1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
3,966,842
|
|
|
12.2
|
%
|
|
6.38
|
%
|
|
6.5
|
%
|
|
$
|
3,390,070
|
|
|
11.4
|
%
|
|
5.75
|
%
|
|
6.5
|
%
|
East West Bank
|
|
$
|
3,944,728
|
|
|
12.1
|
%
|
|
6.38
|
%
|
|
6.5
|
%
|
|
$
|
3,378,815
|
|
|
11.4
|
%
|
|
5.75
|
%
|
|
6.5
|
%
|
Tier 1 leverage capital (to adjusted average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
(1)
|
|
$
|
3,966,842
|
|
|
9.9
|
%
|
|
4.0
|
%
|
|
N/A
|
|
|
$
|
3,390,070
|
|
|
9.2
|
%
|
|
4.0
|
%
|
|
N/A
|
|
East West Bank
|
|
$
|
3,944,728
|
|
|
9.8
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
$
|
3,378,815
|
|
|
9.2
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
Risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
32,497,296
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
29,669,251
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
East West Bank
|
|
$
|
32,477,002
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
29,643,711
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Adjusted quarterly average total assets
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
40,636,402
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
37,307,975
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
East West Bank
|
|
$
|
40,611,215
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
37,283,273
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
(1)
|
The Tier 1 leverage capital well-capitalized requirement applies to the Bank only since there is no Tier 1 leverage ratio component in the definition of a well-capitalized bank-holding company.
|
(2)
|
Reflects adjusted average total assets for the years ended
December 31, 2018
and
2017
.
|
(3)
|
The CET1, Tier 1, and total capital minimum ratios include a transition capital conservation buffer of
1.875%
and
1.25%
for the years ended
December 31, 2018
and
2017
.
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
466,504
|
|
|
$
|
1,063,658
|
|
|
$
|
121,541
|
|
|
$
|
1,651,703
|
|
Charge for funds used
|
|
(245,487
|
)
|
|
(535,445
|
)
|
|
(54,174
|
)
|
|
(835,106
|
)
|
||||
Interest spread on funds used
|
|
221,017
|
|
|
528,213
|
|
|
67,367
|
|
|
816,597
|
|
||||
Interest expense
|
|
(149,032
|
)
|
|
(52,613
|
)
|
|
(63,550
|
)
|
|
(265,195
|
)
|
||||
Credit on funds provided
|
|
655,230
|
|
|
130,050
|
|
|
49,826
|
|
|
835,106
|
|
||||
Interest spread on funds provided
|
|
506,198
|
|
|
77,437
|
|
|
(13,724
|
)
|
|
569,911
|
|
||||
Net interest income before provision for credit losses
|
|
$
|
727,215
|
|
|
$
|
605,650
|
|
|
$
|
53,643
|
|
|
$
|
1,386,508
|
|
Provision for credit losses
|
|
$
|
9,364
|
|
|
$
|
54,891
|
|
|
$
|
—
|
|
|
$
|
64,255
|
|
Noninterest income
|
|
$
|
85,607
|
|
|
$
|
110,287
|
|
|
$
|
15,015
|
|
|
$
|
210,909
|
|
Noninterest expense
|
|
$
|
336,412
|
|
|
$
|
228,627
|
|
|
$
|
149,427
|
|
|
$
|
714,466
|
|
Segment income (loss) before income taxes
|
|
$
|
467,046
|
|
|
$
|
432,419
|
|
|
$
|
(80,769
|
)
|
|
$
|
818,696
|
|
Segment net income
|
|
$
|
334,255
|
|
|
$
|
309,926
|
|
|
$
|
59,520
|
|
|
$
|
703,701
|
|
As of December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
10,587,621
|
|
|
$
|
23,761,469
|
|
|
$
|
6,693,266
|
|
|
$
|
41,042,356
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
364,906
|
|
|
$
|
844,303
|
|
|
$
|
115,910
|
|
|
$
|
1,325,119
|
|
Charge for funds used
|
|
(142,619
|
)
|
|
(326,902
|
)
|
|
(64,256
|
)
|
|
(533,777
|
)
|
||||
Interest spread on funds used
|
|
222,287
|
|
|
517,401
|
|
|
51,654
|
|
|
791,342
|
|
||||
Interest expense
|
|
(76,770
|
)
|
|
(24,603
|
)
|
|
(38,677
|
)
|
|
(140,050
|
)
|
||||
Credit on funds provided
|
|
445,304
|
|
|
61,019
|
|
|
27,454
|
|
|
533,777
|
|
||||
Interest spread on funds provided
|
|
368,534
|
|
|
36,416
|
|
|
(11,223
|
)
|
|
393,727
|
|
||||
Net interest income before provision for credit losses
|
|
$
|
590,821
|
|
|
$
|
553,817
|
|
|
$
|
40,431
|
|
|
$
|
1,185,069
|
|
Provision for credit losses
|
|
$
|
1,812
|
|
|
$
|
44,454
|
|
|
$
|
—
|
|
|
$
|
46,266
|
|
Noninterest income
|
|
$
|
54,451
|
|
|
$
|
110,089
|
|
|
$
|
93,208
|
|
|
$
|
257,748
|
|
Noninterest expense
|
|
$
|
319,645
|
|
|
$
|
193,161
|
|
|
$
|
148,645
|
|
|
$
|
661,451
|
|
Segment income (loss) before income taxes
|
|
$
|
323,815
|
|
|
$
|
426,291
|
|
|
$
|
(15,006
|
)
|
|
$
|
735,100
|
|
Segment net income
|
|
$
|
190,404
|
|
|
$
|
251,834
|
|
|
$
|
63,386
|
|
|
$
|
505,624
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
9,316,587
|
|
|
$
|
21,431,472
|
|
|
$
|
6,373,504
|
|
|
$
|
37,121,563
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
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 (reversal of) 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
|
|
Noninterest income
|
|
$
|
51,251
|
|
|
$
|
95,556
|
|
|
$
|
35,471
|
|
|
$
|
182,278
|
|
Noninterest expense
|
|
$
|
306,386
|
|
|
$
|
171,805
|
|
|
$
|
137,058
|
|
|
$
|
615,249
|
|
Segment income (loss) before income taxes
|
|
$
|
208,663
|
|
|
$
|
422,824
|
|
|
$
|
(59,299
|
)
|
|
$
|
572,188
|
|
Segment net income
|
|
$
|
122,256
|
|
|
$
|
248,474
|
|
|
$
|
60,947
|
|
|
$
|
431,677
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
7,821,610
|
|
|
$
|
19,128,510
|
|
|
$
|
7,838,720
|
|
|
$
|
34,788,840
|
|
|
|
||||||||
($ in thousands, except shares)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
|||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents due from subsidiary bank
|
|
$
|
149,411
|
|
|
$
|
159,566
|
|
Investments in subsidiaries:
|
|
|
|
|
||||
Bank
|
|
4,401,860
|
|
|
3,830,696
|
|
||
Nonbank
|
|
3,662
|
|
|
3,664
|
|
||
Investments in tax credit investments, net
|
|
23,259
|
|
|
25,511
|
|
||
Other assets
|
|
6,487
|
|
|
7,062
|
|
||
TOTAL
|
|
$
|
4,584,679
|
|
|
$
|
4,026,499
|
|
LIABILITIES
|
|
|
|
|
|
|
||
Long-term debt
|
|
$
|
146,835
|
|
|
$
|
171,577
|
|
Other liabilities
|
|
13,870
|
|
|
12,971
|
|
||
Total liabilities
|
|
160,705
|
|
|
184,548
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,867,587 and 165,214,770 shares issued in 2018 and 2017, respectively
|
|
166
|
|
|
165
|
|
||
Additional paid-in capital
|
|
1,789,811
|
|
|
1,755,330
|
|
||
Retained earnings
|
|
3,160,132
|
|
|
2,576,302
|
|
||
Treasury stock, at cost — 20,906,224 shares in 2018 and 20,671,710 shares in 2017
|
|
(467,961
|
)
|
|
(452,327
|
)
|
||
AOCI, net of tax
|
|
(58,174
|
)
|
|
(37,519
|
)
|
||
Total stockholders’ equity
|
|
4,423,974
|
|
|
3,841,951
|
|
||
TOTAL
|
|
$
|
4,584,679
|
|
|
$
|
4,026,499
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Dividends from subsidiaries:
|
|
|
|
|
|
|
||||||
Bank
|
|
$
|
160,000
|
|
|
$
|
255,000
|
|
|
$
|
100,000
|
|
Nonbank
|
|
175
|
|
|
4,118
|
|
|
107
|
|
|||
Net gains on sales of available-for-sale investment securities
|
|
—
|
|
|
326
|
|
|
—
|
|
|||
Other income
|
|
2
|
|
|
395
|
|
|
610
|
|
|||
Total income
|
|
160,177
|
|
|
259,839
|
|
|
100,717
|
|
|||
Interest expense on long-term debt
|
|
6,488
|
|
|
5,429
|
|
|
5,017
|
|
|||
Compensation and employee benefits
|
|
5,559
|
|
|
5,065
|
|
|
5,001
|
|
|||
Amortization of tax credit and other investments
|
|
413
|
|
|
5,908
|
|
|
13,851
|
|
|||
Other expense
|
|
1,490
|
|
|
1,257
|
|
|
1,218
|
|
|||
Total expense
|
|
13,950
|
|
|
17,659
|
|
|
25,087
|
|
|||
Income before income tax benefit and equity in undistributed income of subsidiaries
|
|
146,227
|
|
|
242,180
|
|
|
75,630
|
|
|||
Income tax benefit
|
|
3,404
|
|
|
18,182
|
|
|
26,041
|
|
|||
Undistributed earnings of subsidiaries, primarily bank
|
|
554,070
|
|
|
245,262
|
|
|
330,006
|
|
|||
Net income
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Undistributed earnings of subsidiaries, principally bank
|
|
(554,070
|
)
|
|
(245,262
|
)
|
|
(330,006
|
)
|
|||
Amortization expenses
|
|
671
|
|
|
6,158
|
|
|
14,094
|
|
|||
Deferred income tax expense
|
|
3,517
|
|
|
940
|
|
|
6,349
|
|
|||
Gains on sales of available-for-sale investment securities
|
|
—
|
|
|
(326
|
)
|
|
—
|
|
|||
Net change in other assets
|
|
(595
|
)
|
|
(3,341
|
)
|
|
39,929
|
|
|||
Net change in other liabilities
|
|
(45
|
)
|
|
(560
|
)
|
|
794
|
|
|||
Net cash provided by operating activities
|
|
$
|
153,179
|
|
|
$
|
263,233
|
|
|
$
|
162,837
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net increase in investments in tax credit and other investments
|
|
(1,049
|
)
|
|
(11,591
|
)
|
|
(8,229
|
)
|
|||
Proceeds from distributions received from equity method investees
|
|
1,491
|
|
|
1,814
|
|
|
1,675
|
|
|||
Available-for-sale investment securities:
|
|
|
|
|
|
|
||||||
Proceeds from the sales
|
|
—
|
|
|
18,326
|
|
|
—
|
|
|||
Purchases
|
|
—
|
|
|
(9,000
|
)
|
|
—
|
|
|||
Net cash provided by (used in) investing activities
|
|
442
|
|
|
(451
|
)
|
|
(6,554
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Repayment of long-term debt
|
|
(25,000
|
)
|
|
(15,000
|
)
|
|
(20,000
|
)
|
|||
Common stock:
|
|
|
|
|
|
|
||||||
Proceeds from issuance pursuant to various stock compensation plans and agreements
|
|
2,846
|
|
|
2,280
|
|
|
2,081
|
|
|||
Stocks tendered for payment of withholding taxes
|
|
(15,634
|
)
|
|
(12,940
|
)
|
|
(3,225
|
)
|
|||
Cash dividends paid
|
|
(125,988
|
)
|
|
(116,820
|
)
|
|
(115,828
|
)
|
|||
Other net financing activities
|
|
—
|
|
|
—
|
|
|
1,055
|
|
|||
Net cash used in financing activities
|
|
(163,776
|
)
|
|
(142,480
|
)
|
|
(135,917
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
|
(10,155
|
)
|
|
120,302
|
|
|
20,366
|
|
|||
Cash and cash equivalents, beginning of year
|
|
159,566
|
|
|
39,264
|
|
|
18,898
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
149,411
|
|
|
$
|
159,566
|
|
|
$
|
39,264
|
|
|
|
||||||||||||||||
($ and shares in thousands, except per share data)
|
|
2018 Quarters
|
||||||||||||||
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|||||||||
Interest and dividend income
|
|
$
|
457,334
|
|
|
$
|
422,185
|
|
|
$
|
400,311
|
|
|
$
|
371,873
|
|
Interest expense
|
|
87,918
|
|
|
73,465
|
|
|
58,632
|
|
|
45,180
|
|
||||
Net interest income before provision for credit losses
|
|
369,416
|
|
|
348,720
|
|
|
341,679
|
|
|
326,693
|
|
||||
Provision for credit losses
|
|
17,959
|
|
|
10,542
|
|
|
15,536
|
|
|
20,218
|
|
||||
Net interest income after provision for credit losses
|
|
351,457
|
|
|
338,178
|
|
|
326,143
|
|
|
306,475
|
|
||||
Noninterest income
|
|
41,695
|
|
|
46,502
|
|
|
48,268
|
|
|
74,444
|
|
||||
Noninterest expense
|
|
188,097
|
|
|
179,815
|
|
|
177,419
|
|
|
169,135
|
|
||||
Income before income taxes
|
|
205,055
|
|
|
204,865
|
|
|
196,992
|
|
|
211,784
|
|
||||
Income tax expense
|
|
32,037
|
|
|
33,563
|
|
|
24,643
|
|
|
24,752
|
|
||||
Net income
|
|
$
|
173,018
|
|
|
$
|
171,302
|
|
|
$
|
172,349
|
|
|
$
|
187,032
|
|
|
|
|
|
|
|
|
|
|
||||||||
EPS
|
|
|
|
|
|
|
|
|
||||||||
- Basic
|
|
$
|
1.19
|
|
|
$
|
1.18
|
|
|
$
|
1.19
|
|
|
$
|
1.29
|
|
- Diluted
|
|
$
|
1.18
|
|
|
$
|
1.17
|
|
|
$
|
1.18
|
|
|
$
|
1.28
|
|
Weighted-average number of shares outstanding
|
|
|
|
|
|
|
|
|
||||||||
- Basic
|
|
144,960
|
|
|
144,921
|
|
|
144,899
|
|
|
144,664
|
|
||||
- Diluted
|
|
146,133
|
|
|
146,173
|
|
|
146,091
|
|
|
145,939
|
|
||||
Cash dividends declared per common share
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
|
||||||||||||||||
($ and shares in thousands, except per share data)
|
|
2017 Quarters
|
||||||||||||||
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|||||||||
Interest and dividend income
|
|
$
|
359,765
|
|
|
$
|
339,910
|
|
|
$
|
322,775
|
|
|
$
|
302,669
|
|
Interest expense
|
|
40,064
|
|
|
36,755
|
|
|
32,684
|
|
|
30,547
|
|
||||
Net interest income before provision for credit losses
|
|
319,701
|
|
|
303,155
|
|
|
290,091
|
|
|
272,122
|
|
||||
Provision for credit losses
|
|
15,517
|
|
|
12,996
|
|
|
10,685
|
|
|
7,068
|
|
||||
Net interest income after provision for credit losses
|
|
304,184
|
|
|
290,159
|
|
|
279,406
|
|
|
265,054
|
|
||||
Noninterest income
|
|
45,206
|
|
|
49,470
|
|
|
47,244
|
|
|
115,828
|
|
||||
Noninterest expense
|
|
175,263
|
|
|
164,345
|
|
|
168,965
|
|
|
152,878
|
|
||||
Income before income taxes
|
|
174,127
|
|
|
175,284
|
|
|
157,685
|
|
|
228,004
|
|
||||
Income tax expense
|
|
89,229
|
|
|
42,624
|
|
|
39,355
|
|
|
58,268
|
|
||||
Net income
|
|
$
|
84,898
|
|
|
$
|
132,660
|
|
|
$
|
118,330
|
|
|
$
|
169,736
|
|
|
|
|
|
|
|
|
|
|
||||||||
EPS
|
|
|
|
|
|
|
|
|
||||||||
- Basic
|
|
$
|
0.59
|
|
|
$
|
0.92
|
|
|
$
|
0.82
|
|
|
$
|
1.18
|
|
- Diluted
|
|
$
|
0.58
|
|
|
$
|
0.91
|
|
|
$
|
0.81
|
|
|
$
|
1.16
|
|
Weighted-average number of shares outstanding
|
|
|
|
|
|
|
|
|
||||||||
- Basic
|
|
144,542
|
|
|
144,498
|
|
|
144,485
|
|
|
144,249
|
|
||||
- Diluted
|
|
146,030
|
|
|
145,882
|
|
|
145,740
|
|
|
145,732
|
|
||||
Cash dividends declared per common share
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
Name
|
|
Age
(1)
|
|
Positions and Offices, and Business Experience
|
Dominic Ng
|
|
60
|
|
Chairman and Chief Executive Officer of the Company and the Bank since 1992.
|
Douglas P. Krause
|
|
62
|
|
Executive Vice President, General Counsel and Secretary of the Company and the Bank since 1996.
|
Irene H. Oh
|
|
41
|
|
Executive Vice President and Chief Financial Officer of the Company and the Bank since 2010.
|
Andy Yen
|
|
61
|
|
Executive Vice President and Head of International and Commercial Banking since 2013
|
|
(1)
|
As of
February 27, 2019
.
|
•
|
Summary Information About Director Nominees
|
•
|
Board of Directors and Nominees
|
•
|
Director Nominee Qualifications and Experience
|
•
|
Director Independence, Financial Experts and Risk Management Experience
|
•
|
Board Leadership Structure
|
•
|
Board Meetings and Committees
|
•
|
Section 16(a) Beneficial Ownership Reporting Compliance
|
•
|
Director Compensation
|
•
|
Compensation Discussion and Analysis
|
|
|
||||||||||
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
|
|
—
|
|
|
$
|
—
|
|
|
4,189,366
|
|
(1)
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
4,189,366
|
|
|
|
|
(1)
|
Represents future shares available under the shareholder-approved 2016 Stock Incentive Plan effective May 24, 2016.
|
•
|
Director Independence, Financial Experts and Risk Management Experience
|
•
|
Certain Relationships and Related Transactions
|
(1)
|
Financial Statements
|
|
Page
|
Consolidated Balance Sheet as of December 31, 2018 and 2017
|
|
Consolidated Statement of Income for the Years Ended December 31, 2018, 2017 and 2016
|
|
Consolidated Statement of Comprehensive Income for the Years Ended December 31, 2018, 2017 and 2016
|
|
Consolidated Statement of Changes in Stockholders’ Equity for the Years Ended December 31, 2018, 2017 and 2016
|
|
Consolidated Statement of Cash Flows for the Years Ended December 31, 2018, 2017 and 2016
|
|
85
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits
|
ALCO
|
Asset/Liability Committee
|
HELOC
|
Home Equity Line of Credit
|
AML
|
Anti-Money Laundering
|
HVADC
|
High Volatility Acquisition, Development or Construction
|
AOCI
|
Accumulated Other Comprehensive Income (Loss)
|
HVCRE
|
High Volatility Commercial Real Estate
|
ASC
|
Accounting Standards Codification
|
IRS
|
Internal Revenue Service
|
ASU
|
Accounting Standards Update
|
ISDA
|
International Swaps and Derivatives Association, Inc.
|
BHC Act
|
Bank Holding Company Act of 1956, as amended
|
KBW
|
Keefe, Bruyette and Woods
|
BSA
|
Bank Secrecy Act
|
KRX
|
Keefe, Bruyette and Woods NASDAQ Regional Banking Index
|
C&I
|
Commercial and industrial
|
LCH
|
London Clearing House
|
CAP
|
Compliance Assurance Process
|
LHFI
|
Loans-held-for-investment
|
CCP
|
Central counterparties
|
LIBOR
|
London Interbank Offered Rate
|
CECL
|
Current Expected Credit Loss
|
MD&A
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
CET1
|
Common Equity Tier 1
|
MMBTU
|
Million British Thermal Unit
|
CFPB
|
Consumer Financial Protection Bureau
|
MOU
|
Memorandum of Understanding
|
CME
|
Chicago Mercantile Exchange
|
NASDAQ
|
NASDAQ Global Select Market
|
COSO
|
Committee of Sponsoring
Organizations of the Treadway Commission
|
NAV
|
Net Asset Value
|
CRA
|
Community Reinvestment Act
|
NOL
|
Net Operating Losses
|
CRE
|
Commercial real estate
|
NPA
|
Nonperforming Assets
|
DBO
|
California Department of Business Oversight
|
OFAC
|
Office of Foreign Assets Control
|
DCB
|
Desert Community Bank
|
OIS
|
Overnight Index Swap
|
DIF
|
Deposit Insurance Fund
|
OREO
|
Other real estate owned
|
DRR
|
Designated Reserve Ratio
|
OTTI
|
Other-than-temporary impairment
|
EGRRCPA
|
Economic Growth, Regulatory Relief, and Consumer Protection Act
|
PCA
|
Prompt Corrective Action
|
EPS
|
Earnings Per Share
|
PCI
|
Purchased credit-impaired
|
ERM
|
Enterprise Risk Management
|
RMB
|
Chinese Renminbi
|
EVE
|
Economic Value of Equity
|
RPA
|
Credit Risk Participation Agreement
|
EWIS
|
East West Insurance Services, Inc.
|
RSU
|
Restricted stock unit
|
FASB
|
Financial Accounting Standards Board
|
S&P
|
Standard and Poor's
|
FBI
|
Federal Bureau of Investigation
|
SBLC
|
Standby letters of credit
|
FDIA
|
Federal Deposit Insurance Act
|
SEC
|
U.S. Securities and Exchange Commission
|
FDIC
|
Federal Deposit Insurance Corporation
|
SERP
|
Supplemental Executive Retirement Plan
|
FHLB
|
Federal Home Loan Bank
|
SOFR
|
Secured Overnight Financing Rate
|
FinCEN
|
Financial Crimes Enforcement Network
|
TDR
|
Troubled debt restructuring
|
FRB
|
Federal Reserve Bank of San Francisco
|
U.S.
|
United States
|
GAAP
|
United States Generally Accepted Accounting Principles
|
USD
|
U.S. Dollar
|
GLBA
|
Gramm-Leach-Bliley Act of 1999
|
VIE
|
Variable Interest Entities
|
Dated:
|
February 27, 2019
|
|
||
|
|
|
||
|
|
EAST WEST BANCORP, INC.
(Registrant)
|
||
|
|
|
||
|
|
By
|
/s/ DOMINIC NG
|
|
|
|
|
Dominic Ng
|
|
|
|
|
Chairman and Chief Executive Officer
|
|
||||
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ DOMINIC NG
|
|
Chairman, Chief Executive Officer and Director
(Principal Executive Officer)
|
|
February 27, 2019
|
Dominic Ng
|
|
|
|
|
|
|
|
|
|
/s/ IRENE H. OH
|
|
Executive Vice President and
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
|
February 27, 2019
|
Irene H. Oh
|
|
|
|
|
|
|
|
|
|
/s/ MOLLY CAMPBELL
|
|
Director
|
|
February 27, 2019
|
Molly Campbell
|
|
|
|
|
|
|
|
|
|
/s/ IRIS S. CHAN
|
|
Director
|
|
February 27, 2019
|
Iris S. Chan
|
|
|
|
|
|
|
|
|
|
/s/ RUDOLPH I. ESTRADA
|
|
Lead Director
|
|
February 27, 2019
|
Rudolph I. Estrada
|
|
|
|
|
|
|
|
|
|
/s/ PAUL H. IRVING
|
|
Director
|
|
February 27, 2019
|
Paul H. Irving
|
|
|
|
|
|
|
|
|
|
/s/ HERMAN Y. LI
|
|
Director
|
|
February 27, 2019
|
Herman Y. Li
|
|
|
|
|
|
|
|
|
|
/s/ JACK C. LIU
|
|
Director
|
|
February 27, 2019
|
Jack C. Liu
|
|
|
|
|
|
|
|
|
|
/s/ LESTER M. SUSSMAN
|
|
Director
|
|
February 27, 2019
|
Lester M. Sussman
|
|
|
|
|
|
Exhibit No.
|
|
Exhibit Description
|
3.1
|
|
|
3.1.1
|
|
|
3.1.2
|
|
|
3.1.3
|
|
|
3.2
|
|
|
3.3
|
|
|
4.1
|
|
|
4.2
|
|
|
10.1.1
|
|
|
10.1.2
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10.1.3
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10.2.1
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10.2.2
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10.2.3
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10.3
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10.4.1
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10.4.2
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10.5.1
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10.5.2
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10.6.1
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10.6.2
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Exhibit No.
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Exhibit Description
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10.6.3
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10.7.1
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10.7.2
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10.7.3
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10.7.4
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10.7.5
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10.7.6
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10.7.7
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10.8
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10.9
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18
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21.1
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23.1
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31.1
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31.2
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32.1
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32.2
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101.INS
|
|
XBRL Instance Document. Filed herewith.
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101.SCH
|
|
XBRL Taxonomy Extension Schema Document. Filed herewith.
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document. Filed herewith.
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document. Filed herewith.
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101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document. Filed herewith.
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document. Filed herewith.
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1.
|
Section 2 (Term) of the Agreement is hereby modified in its entirety to read as follows: This Agreement and employment under this Agreement shall terminate on December 21, 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
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|
Gary Teo
|
|
Head of Human Resources
|
|
|
|
/s/ IRENE H. OH
|
|
Employee: Irene H. Oh
|
|
|
|
Subsidiary
|
|
Jurisdiction of Incorporation or Organization
|
East West Bank
|
|
California
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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, 2019
|
|
|
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of East West Bancorp, Inc.;
|
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 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
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of East West Bancorp, Inc.;
|
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 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
|
|
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
|
|
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
|
|
Chief Financial Officer
|