|
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 91101
(Address of principal executive offices)(Zip Code)
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
|
Smaller reporting company
|
¨
|
|
|
Emerging growth company
|
¨
|
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, $0.001 Par Value
|
|
EWBC
|
|
Nasdaq “Global Select Market”
|
|
|
|
|
Page
|
|
|
|
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|||
|
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||
|
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||
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||
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||
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||
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||
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||
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||
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||
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||
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||
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||
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||
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||
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||
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||
|
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||
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||
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||
|
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||
|
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||
|
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||
|
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||
|
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||
|
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|
|
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|||
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|||
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|||
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|
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|
|
|
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|||
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|||
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|||
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|||
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|
|
|
|
|
||||||||
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
|
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
462,254
|
|
|
$
|
516,291
|
|
Interest-bearing cash with banks
|
|
3,323,071
|
|
|
2,485,086
|
|
||
Cash and cash equivalents
|
|
3,785,325
|
|
|
3,001,377
|
|
||
Interest-bearing deposits with banks
|
|
134,000
|
|
|
371,000
|
|
||
Securities purchased under resale agreements (“resale agreements”)
|
|
1,035,000
|
|
|
1,035,000
|
|
||
Securities:
|
|
|
|
|
||||
Available-for-sale investment securities, at fair value (includes assets pledged as collateral of $448,964 in 2019 and $435,833 in 2018)
|
|
2,640,158
|
|
|
2,741,847
|
|
||
Restricted equity securities, at cost
|
|
74,736
|
|
|
74,069
|
|
||
Loans held-for-sale
|
|
—
|
|
|
275
|
|
||
Loans held-for-investment (net of allowance for loan losses of $317,894 in 2019 and $311,322 in 2018; includes assets pledged as collateral of $20,952,709 in 2019 and $20,590,035 in 2018)
|
|
32,545,392
|
|
|
32,073,867
|
|
||
Investments in qualified affordable housing partnerships, net
|
|
197,470
|
|
|
184,873
|
|
||
Investments in tax credit and other investments, net
|
|
217,445
|
|
|
231,635
|
|
||
Premises and equipment (net of accumulated depreciation of $122,396 in 2019 and $118,547 in 2018)
|
|
124,300
|
|
|
119,180
|
|
||
Goodwill
|
|
465,697
|
|
|
465,547
|
|
||
Operating lease right-of-use assets
|
|
104,289
|
|
|
—
|
|
||
Other assets
|
|
767,621
|
|
|
743,686
|
|
||
TOTAL
|
|
$
|
42,091,433
|
|
|
$
|
41,042,356
|
|
LIABILITIES
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
10,011,533
|
|
|
$
|
11,377,009
|
|
Interest-bearing
|
|
26,262,439
|
|
|
24,062,619
|
|
||
Total deposits
|
|
36,273,972
|
|
|
35,439,628
|
|
||
Short-term borrowings
|
|
39,550
|
|
|
57,638
|
|
||
Federal Home Loan Bank (“FHLB”) advances
|
|
344,657
|
|
|
326,172
|
|
||
Securities sold under repurchase agreements (“repurchase agreements”)
|
|
50,000
|
|
|
50,000
|
|
||
Long-term debt and finance lease liabilities
|
|
152,433
|
|
|
146,835
|
|
||
Operating lease liabilities
|
|
112,843
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
|
526,048
|
|
|
598,109
|
|
||
Total liabilities
|
|
37,499,503
|
|
|
36,618,382
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 12)
|
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 166,484,022 and 165,867,587 shares issued in 2019 and 2018, respectively
|
|
166
|
|
|
166
|
|
||
Additional paid-in capital
|
|
1,798,958
|
|
|
1,789,811
|
|
||
Retained earnings
|
|
3,305,054
|
|
|
3,160,132
|
|
||
Treasury stock, at cost — 20,982,721 shares in 2019 and 20,906,224 shares in 2018
|
|
(479,265
|
)
|
|
(467,961
|
)
|
||
Accumulated other comprehensive loss (“AOCI”), net of tax
|
|
(32,983
|
)
|
|
(58,174
|
)
|
||
Total stockholders’ equity
|
|
4,591,930
|
|
|
4,423,974
|
|
||
TOTAL
|
|
$
|
42,091,433
|
|
|
$
|
41,042,356
|
|
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
|
||||
Loans receivable, including fees
|
|
$
|
423,534
|
|
|
$
|
337,904
|
|
Available-for-sale investment securities
|
|
15,748
|
|
|
15,456
|
|
||
Resale agreements
|
|
7,846
|
|
|
6,934
|
|
||
Restricted equity securities
|
|
713
|
|
|
634
|
|
||
Interest-bearing cash and deposits with banks
|
|
15,470
|
|
|
10,945
|
|
||
Total interest and dividend income
|
|
463,311
|
|
|
371,873
|
|
||
INTEREST EXPENSE
|
|
|
|
|
||||
Deposits
|
|
92,005
|
|
|
39,136
|
|
||
Federal funds purchased and other short-term borrowings
|
|
616
|
|
|
7
|
|
||
FHLB advances
|
|
2,979
|
|
|
2,260
|
|
||
Repurchase agreements
|
|
3,492
|
|
|
2,306
|
|
||
Long-term debt and finance lease liabilities
|
|
1,758
|
|
|
1,471
|
|
||
Total interest expense
|
|
100,850
|
|
|
45,180
|
|
||
Net interest income before provision for credit losses
|
|
362,461
|
|
|
326,693
|
|
||
Provision for credit losses
|
|
22,579
|
|
|
20,218
|
|
||
Net interest income after provision for credit losses
|
|
339,882
|
|
|
306,475
|
|
||
NONINTEREST INCOME
|
|
|
|
|
||||
Lending fees
|
|
14,796
|
|
|
14,012
|
|
||
Deposit account fees
|
|
9,641
|
|
|
10,430
|
|
||
Foreign exchange income
|
|
5,015
|
|
|
1,171
|
|
||
Wealth management fees
|
|
3,812
|
|
|
2,953
|
|
||
Interest rate contracts and other derivative income
|
|
3,216
|
|
|
6,690
|
|
||
Net gains on sales of loans
|
|
915
|
|
|
1,582
|
|
||
Net gains on sales of available-for-sale investment securities
|
|
1,561
|
|
|
2,129
|
|
||
Net gain on sale of business
|
|
—
|
|
|
31,470
|
|
||
Other income
|
|
3,175
|
|
|
4,007
|
|
||
Total noninterest income
|
|
42,131
|
|
|
74,444
|
|
||
NONINTEREST EXPENSE
|
|
|
|
|
||||
Compensation and employee benefits
|
|
102,299
|
|
|
95,234
|
|
||
Occupancy and equipment expense
|
|
17,318
|
|
|
16,880
|
|
||
Deposit insurance premiums and regulatory assessments
|
|
3,088
|
|
|
6,273
|
|
||
Legal expense
|
|
2,225
|
|
|
2,255
|
|
||
Data processing
|
|
3,157
|
|
|
3,401
|
|
||
Consulting expense
|
|
2,059
|
|
|
2,352
|
|
||
Deposit related expense
|
|
3,504
|
|
|
2,679
|
|
||
Computer software expense
|
|
6,078
|
|
|
5,054
|
|
||
Other operating expense
|
|
22,289
|
|
|
17,607
|
|
||
Amortization of tax credit and other investments
|
|
24,905
|
|
|
17,400
|
|
||
Total noninterest expense
|
|
186,922
|
|
|
169,135
|
|
||
INCOME BEFORE INCOME TAXES
|
|
195,091
|
|
|
211,784
|
|
||
INCOME TAX EXPENSE
|
|
31,067
|
|
|
24,752
|
|
||
NET INCOME
|
|
$
|
164,024
|
|
|
$
|
187,032
|
|
EARNINGS PER SHARE (“EPS”)
|
|
|
|
|
||||
BASIC
|
|
$
|
1.13
|
|
|
$
|
1.29
|
|
DILUTED
|
|
$
|
1.12
|
|
|
$
|
1.28
|
|
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
||||
BASIC
|
|
145,256
|
|
|
144,664
|
|
||
DILUTED
|
|
145,921
|
|
|
145,939
|
|
||
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Net income
|
|
$
|
164,024
|
|
|
$
|
187,032
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
||||
Net changes in unrealized gains (losses) on available-for-sale investment securities
|
|
22,011
|
|
|
(18,812
|
)
|
||
Foreign currency translation adjustments
|
|
3,180
|
|
|
6,798
|
|
||
Other comprehensive income (loss)
|
|
25,191
|
|
|
(12,014
|
)
|
||
COMPREHENSIVE INCOME
|
|
$
|
189,215
|
|
|
$
|
175,018
|
|
|
|
|||||||||||||||||||||||
|
|
Common Stock and
Additional Paid-in Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
AOCI,
Net of Tax |
|
Total
Stockholders’ Equity |
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
BALANCE, JANUARY 1, 2018
|
|
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
|
|
—
|
|
|
—
|
|
|
187,032
|
|
|
—
|
|
|
—
|
|
|
187,032
|
|
|||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,014
|
)
|
|
(12,014
|
)
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
329,465
|
|
|
6,158
|
|
|
—
|
|
|
(14,946
|
)
|
|
—
|
|
|
(8,788
|
)
|
|||||
Cash dividends on common stock ($0.20 per share)
|
|
—
|
|
|
—
|
|
|
(29,266
|
)
|
|
—
|
|
|
—
|
|
|
(29,266
|
)
|
|||||
BALANCE, MARCH 31, 2018
|
|
144,872,525
|
|
|
$
|
1,761,653
|
|
|
$
|
2,740,179
|
|
|
$
|
(467,273
|
)
|
|
$
|
(55,804
|
)
|
|
$
|
3,978,755
|
|
BALANCE, JANUARY 1, 2019
|
|
144,961,363
|
|
|
$
|
1,789,977
|
|
|
$
|
3,160,132
|
|
|
$
|
(467,961
|
)
|
|
$
|
(58,174
|
)
|
|
$
|
4,423,974
|
|
Cumulative effect of change in accounting principle related to leases
(3)
|
|
—
|
|
|
—
|
|
|
14,668
|
|
|
—
|
|
|
—
|
|
|
14,668
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
164,024
|
|
|
—
|
|
|
—
|
|
|
164,024
|
|
|||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,191
|
|
|
25,191
|
|
|||||
Warrants exercised
|
|
180,226
|
|
|
1,711
|
|
|
—
|
|
|
2,732
|
|
|
—
|
|
|
4,443
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
359,712
|
|
|
7,436
|
|
|
—
|
|
|
(14,036
|
)
|
|
—
|
|
|
(6,600
|
)
|
|||||
Cash dividends on common stock ($0.23 per share)
|
|
—
|
|
|
—
|
|
|
(33,770
|
)
|
|
—
|
|
|
—
|
|
|
(33,770
|
)
|
|||||
BALANCE, MARCH 31, 2019
|
|
145,501,301
|
|
|
$
|
1,799,124
|
|
|
$
|
3,305,054
|
|
|
$
|
(479,265
|
)
|
|
$
|
(32,983
|
)
|
|
$
|
4,591,930
|
|
|
(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.
|
(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.
|
(3)
|
Represents the impact of the adoption of ASU 2016-02,
Leases
(Topic 842) and subsequent ASUs
in the first quarter of 2019. Refer to
Note 2
—
Current Accounting Developments
and
Note 11
—
Leases
to the Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
Net income
|
|
$
|
164,024
|
|
|
$
|
187,032
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
39,498
|
|
|
29,858
|
|
||
Accretion of discount and amortization of premiums, net
|
|
(4,414
|
)
|
|
(2,680
|
)
|
||
Stock compensation costs
|
|
7,444
|
|
|
6,158
|
|
||
Deferred income tax (benefit) expense
|
|
(406
|
)
|
|
677
|
|
||
Provision for credit losses
|
|
22,579
|
|
|
20,218
|
|
||
Net gains on sales of loans
|
|
(915
|
)
|
|
(1,582
|
)
|
||
Net gains on sales of available-for-sale investment securities
|
|
(1,561
|
)
|
|
(2,129
|
)
|
||
Net gains on sales of fixed assets
|
|
—
|
|
|
(1,086
|
)
|
||
Net gain on sale of business
|
|
—
|
|
|
(31,470
|
)
|
||
Loans held-for-sale:
|
|
|
|
|
||||
Originations and purchases
|
|
(2,167
|
)
|
|
(4,617
|
)
|
||
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale
|
|
2,454
|
|
|
2,545
|
|
||
Proceeds from distributions received from equity method investees
|
|
1,150
|
|
|
887
|
|
||
Net change in accrued interest receivable and other assets
|
|
(27,639
|
)
|
|
14,465
|
|
||
Net change in accrued expenses and other liabilities
|
|
(60,806
|
)
|
|
(570
|
)
|
||
Other net operating activities
|
|
—
|
|
|
148
|
|
||
Total adjustments
|
|
(24,783
|
)
|
|
30,822
|
|
||
Net cash provided by operating activities
|
|
139,241
|
|
|
217,854
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Net (increase) decrease in:
|
|
|
|
|
|
|
||
Investments in qualified affordable housing partnerships, tax credit and other investments
|
|
(33,261
|
)
|
|
(22,799
|
)
|
||
Interest-bearing deposits with banks
|
|
245,375
|
|
|
(71,203
|
)
|
||
Available-for-sale investment securities:
|
|
|
|
|
||||
Proceeds from sales
|
|
151,339
|
|
|
214,790
|
|
||
Proceeds from repayments, maturities and redemptions
|
|
55,712
|
|
|
87,677
|
|
||
Purchases
|
|
(69,805
|
)
|
|
(157,933
|
)
|
||
Loans held-for-investment:
|
|
|
|
|
||||
Proceeds from sales of loans originally classified as held-for-investment
|
|
92,887
|
|
|
112,964
|
|
||
Purchases
|
|
(147,938
|
)
|
|
(80,077
|
)
|
||
Other changes in loans held-for-investment, net
|
|
(409,930
|
)
|
|
(619,671
|
)
|
||
Premises and equipment:
|
|
|
|
|
|
|
||
Purchases
|
|
(3,336
|
)
|
|
(1,757
|
)
|
||
Payment on sale of business, net of cash transferred
|
|
—
|
|
|
(503,687
|
)
|
||
Proceeds from sales of other real estate owned (“OREO”)
|
|
—
|
|
|
2,716
|
|
||
Proceeds from distributions received from equity method investees
|
|
1,005
|
|
|
629
|
|
||
Other net investing activities
|
|
(729
|
)
|
|
(1,967
|
)
|
||
Net cash used in investing activities
|
|
(118,681
|
)
|
|
(1,040,318
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Net increase in deposits
|
|
800,053
|
|
|
964,380
|
|
||
Net (decrease) increase in short-term borrowings
|
|
(19,514
|
)
|
|
30,215
|
|
||
FHLB advances:
|
|
|
|
|
||||
Proceeds
|
|
300,000
|
|
|
—
|
|
||
Repayment
|
|
(282,000
|
)
|
|
—
|
|
||
Repayment of long-term debt and finance lease liabilities
|
|
(217
|
)
|
|
(5,000
|
)
|
||
Common stock:
|
|
|
|
|
||||
Stocks tendered for payment of withholding taxes
|
|
(14,036
|
)
|
|
(14,946
|
)
|
||
Cash dividends paid
|
|
(34,916
|
)
|
|
(30,235
|
)
|
||
Net cash provided by financing activities
|
|
749,370
|
|
|
944,414
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
14,018
|
|
|
18,396
|
|
||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
783,948
|
|
|
140,346
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
3,001,377
|
|
|
2,174,592
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
3,785,325
|
|
|
$
|
2,314,938
|
|
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
97,930
|
|
|
$
|
43,218
|
|
Income taxes, net
|
|
$
|
303
|
|
|
$
|
10,084
|
|
Noncash investing and financing activities:
|
|
|
|
|
|
|
||
Loans transferred from held-for-investment to held-for-sale
|
|
$
|
92,228
|
|
|
$
|
155,767
|
|
|
|
|
|
|
•
|
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 March 31, 2019 |
||||||||||||||
|
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
|
|
$
|
520,440
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
520,440
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
—
|
|
|
182,536
|
|
|
—
|
|
|
182,536
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
426,291
|
|
|
—
|
|
|
426,291
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
886,825
|
|
|
—
|
|
|
886,825
|
|
||||
Municipal securities
|
|
—
|
|
|
76,004
|
|
|
—
|
|
|
76,004
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
42,299
|
|
|
—
|
|
|
42,299
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
9,455
|
|
|
—
|
|
|
9,455
|
|
||||
Corporate debt securities
|
|
—
|
|
|
11,094
|
|
|
—
|
|
|
11,094
|
|
||||
Foreign bonds
|
|
—
|
|
|
472,669
|
|
|
—
|
|
|
472,669
|
|
||||
Asset-backed securities
|
|
—
|
|
|
12,545
|
|
|
—
|
|
|
12,545
|
|
||||
Total available-for-sale investment securities
|
|
$
|
520,440
|
|
|
$
|
2,119,718
|
|
|
$
|
—
|
|
|
$
|
2,640,158
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments in tax credit and other investments:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities with readily determinable fair value
(1)
|
|
$
|
21,051
|
|
|
$
|
9,886
|
|
|
$
|
—
|
|
|
$
|
30,937
|
|
Total investments in tax credit and other investments
|
|
$
|
21,051
|
|
|
$
|
9,886
|
|
|
$
|
—
|
|
|
$
|
30,937
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
96,256
|
|
|
$
|
—
|
|
|
$
|
96,256
|
|
Foreign exchange contracts
|
|
—
|
|
|
30,085
|
|
|
—
|
|
|
30,085
|
|
||||
Credit contracts
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Equity contracts
|
|
—
|
|
|
1,759
|
|
|
442
|
|
|
2,201
|
|
||||
Commodity contracts
|
|
—
|
|
|
7,239
|
|
|
—
|
|
|
7,239
|
|
||||
Gross derivative assets
|
|
$
|
—
|
|
|
$
|
135,340
|
|
|
$
|
442
|
|
|
$
|
135,782
|
|
Netting adjustments
(2)
|
|
$
|
—
|
|
|
$
|
(40,038
|
)
|
|
$
|
—
|
|
|
$
|
(40,038
|
)
|
Net derivative assets
|
|
$
|
—
|
|
|
$
|
95,302
|
|
|
$
|
442
|
|
|
$
|
95,744
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
76,572
|
|
|
$
|
—
|
|
|
$
|
76,572
|
|
Foreign exchange contracts
|
|
—
|
|
|
24,918
|
|
|
—
|
|
|
24,918
|
|
||||
Credit contracts
|
|
—
|
|
|
81
|
|
|
—
|
|
|
81
|
|
||||
Commodity contracts
|
|
—
|
|
|
8,016
|
|
|
—
|
|
|
8,016
|
|
||||
Gross derivative liabilities
|
|
$
|
—
|
|
|
$
|
109,587
|
|
|
$
|
—
|
|
|
$
|
109,587
|
|
Netting adjustments
(2)
|
|
$
|
—
|
|
|
$
|
(56,102
|
)
|
|
$
|
—
|
|
|
$
|
(56,102
|
)
|
Net derivative liabilities
|
|
$
|
—
|
|
|
$
|
53,485
|
|
|
$
|
—
|
|
|
$
|
53,485
|
|
|
(1)
|
Equity securities with readily determinable fair value were comprised of mutual funds.
|
(2)
|
Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See
Note 7
—
Derivatives
to the Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
||||||||||||||||
($ 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
|
|
—
|
|
|
26,052
|
|
|
—
|
|
|
26,052
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
9,931
|
|
|
—
|
|
|
9,931
|
|
||||
Corporate debt securities
|
|
—
|
|
|
10,869
|
|
|
—
|
|
|
10,869
|
|
||||
Foreign bonds
|
|
—
|
|
|
463,048
|
|
|
—
|
|
|
463,048
|
|
||||
Asset-backed securities
|
|
—
|
|
|
12,643
|
|
|
—
|
|
|
12,643
|
|
||||
Total available-for-sale investment securities
|
|
$
|
564,815
|
|
|
$
|
2,177,032
|
|
|
$
|
—
|
|
|
$
|
2,741,847
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment 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
|
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
(1)
|
Equity securities with readily determinable fair value were comprised of mutual funds.
|
(2)
|
Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See
Note 7
—
Derivatives
to the Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Equity warrants
|
|
|
|
|
||||
Beginning balance
|
|
$
|
673
|
|
|
$
|
679
|
|
Total (losses) gains included in earnings
(1)
|
|
(231
|
)
|
|
244
|
|
||
Issuances
|
|
—
|
|
|
8
|
|
||
Ending balance
|
|
$
|
442
|
|
|
$
|
931
|
|
|
(1)
|
Includes unrealized (losses) gains of
$(43) thousand
and
$244 thousand
for the
three months ended March 31, 2019
and
2018
, respectively. Unrealized gains and losses of equity warrants were included in
Lending fees
on the Consolidated Statement of Income.
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
(Level 3)
|
|
Valuation
Technique
|
|
Unobservable
Inputs
|
|
Range of Inputs
|
|
Weighted-
Average
(1)
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||
Equity warrants
|
|
$
|
442
|
|
|
Black-Scholes option pricing model
|
|
Volatility
|
|
41% — 49%
|
|
47%
|
|
|
|
|
|
|
Liquidity discount
|
|
47%
|
|
47%
|
||
|
(1)
|
Weighted-average is calculated based on fair value of equity warrants as of
March 31, 2019
.
|
•
|
Discounted cash flows valuation techniques that 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 March 31, 2019 |
||||||||||||||
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair Value
Measurements |
|||||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial (“C&I”)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,388
|
|
|
$
|
15,388
|
|
Commercial real estate (“CRE”)
|
|
—
|
|
|
—
|
|
|
785
|
|
|
785
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Home equity lines of credit (“HELOCs”)
|
|
—
|
|
|
—
|
|
|
918
|
|
|
918
|
|
||||
Total non-PCI impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,091
|
|
|
$
|
17,091
|
|
|
|
||||||||||||||||
|
|
Assets Measured at Fair Value on a Nonrecurring 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)
|
|
Fair Value
Measurements |
||||||||
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)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Non-PCI impaired loans:
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
$
|
(2,734
|
)
|
|
$
|
(13,899
|
)
|
CRE
|
|
2
|
|
|
(95
|
)
|
||
Consumer:
|
|
|
|
|
||||
Single-family residential
|
|
—
|
|
|
15
|
|
||
HELOCs
|
|
(78
|
)
|
|
—
|
|
||
Total non-PCI impaired loans
|
|
$
|
(2,810
|
)
|
|
$
|
(13,979
|
)
|
Impairment on tax credit investments
|
|
$
|
(6,978
|
)
|
|
$
|
—
|
|
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements (Level 3) |
|
Valuation
Technique(s) |
|
Unobservable
Input(s)
|
|
Range of
Input(s)
|
|
Weighted-
Average
(1)
|
||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||
Non-PCI impaired loans
|
|
$
|
8,423
|
|
|
Discounted cash flows
|
|
Discount
|
|
4% — 12%
|
|
7%
|
|
|
$
|
918
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8%
|
|
|
$
|
7,750
|
|
|
Fair value of collateral
|
|
Discount
|
|
50% — 65%
|
|
65%
|
Tax credit investments
|
|
$
|
—
|
|
|
Individual analysis of each investment
|
|
Expected future tax
benefits and
distributions
|
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
||
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
|
|
(1)
|
Weighted-average is based on the relative fair value of the respective assets as of
March 31, 2019
and
December 31, 2018
.
|
|
||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
3,785,325
|
|
|
$
|
3,785,325
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,785,325
|
|
Interest-bearing deposits with banks
|
|
$
|
134,000
|
|
|
$
|
—
|
|
|
$
|
134,000
|
|
|
$
|
—
|
|
|
$
|
134,000
|
|
Resale agreements
(1)
|
|
$
|
1,035,000
|
|
|
$
|
—
|
|
|
$
|
1,025,288
|
|
|
$
|
—
|
|
|
$
|
1,025,288
|
|
Restricted equity securities, at cost
|
|
$
|
74,736
|
|
|
$
|
—
|
|
|
$
|
74,736
|
|
|
$
|
—
|
|
|
$
|
74,736
|
|
Loans held-for-investment, net
|
|
$
|
32,545,392
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,775,546
|
|
|
$
|
32,775,546
|
|
Mortgage servicing rights
|
|
$
|
7,754
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,099
|
|
|
$
|
11,099
|
|
Accrued interest receivable
|
|
$
|
157,335
|
|
|
$
|
—
|
|
|
$
|
157,335
|
|
|
$
|
—
|
|
|
$
|
157,335
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, checking, savings and money market deposits
|
|
$
|
26,427,303
|
|
|
$
|
—
|
|
|
$
|
26,427,303
|
|
|
$
|
—
|
|
|
$
|
26,427,303
|
|
Time deposits
|
|
$
|
9,846,669
|
|
|
$
|
—
|
|
|
$
|
9,876,954
|
|
|
$
|
—
|
|
|
$
|
9,876,954
|
|
Short-term borrowings
|
|
$
|
39,550
|
|
|
$
|
—
|
|
|
$
|
39,550
|
|
|
$
|
—
|
|
|
$
|
39,550
|
|
FHLB advances
|
|
$
|
344,657
|
|
|
$
|
—
|
|
|
$
|
352,610
|
|
|
$
|
—
|
|
|
$
|
352,610
|
|
Repurchase agreements
(1)
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
107,103
|
|
|
$
|
—
|
|
|
$
|
107,103
|
|
Long-term debt
|
|
$
|
146,900
|
|
|
$
|
—
|
|
|
$
|
152,531
|
|
|
$
|
—
|
|
|
$
|
152,531
|
|
Accrued interest payable
|
|
$
|
25,814
|
|
|
$
|
—
|
|
|
$
|
25,814
|
|
|
$
|
—
|
|
|
$
|
25,814
|
|
|
|
||||||||||||||||||||
($ 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 both
March 31, 2019
and
December 31, 2018
,
$400.0 million
out of
$450.0 million
of gross repurchase agreements were eligible for netting against gross resale agreements.
|
|
|
|
||
($ in thousands)
|
|
Repurchase
Agreements
|
||
Remainder of 2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
—
|
|
|
2022
|
|
150,000
|
|
|
2023
|
|
300,000
|
|
|
Thereafter
|
|
—
|
|
|
Total
|
|
$
|
450,000
|
|
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||||||
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
|
|
|
$
|
—
|
|
|
$
|
(1,030,776
|
)
|
(1)
|
$
|
4,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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, 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)
|
$
|
—
|
|
|
(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 repurchase agreements, limited for table presentation purposes to the amount of the recognized liability due to each counterparty.
|
|
||||||||||||||||
|
|
March 31, 2019
|
||||||||||||||
($ in thousands)
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
528,983
|
|
|
$
|
—
|
|
|
$
|
(8,543
|
)
|
|
$
|
520,440
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
183,145
|
|
|
704
|
|
|
(1,313
|
)
|
|
182,536
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
433,435
|
|
|
2,408
|
|
|
(9,552
|
)
|
|
426,291
|
|
||||
Residential mortgage-backed securities
|
|
890,126
|
|
|
3,021
|
|
|
(6,322
|
)
|
|
886,825
|
|
||||
Municipal securities
|
|
76,003
|
|
|
190
|
|
|
(189
|
)
|
|
76,004
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
41,423
|
|
|
876
|
|
|
—
|
|
|
42,299
|
|
||||
Residential mortgage-backed securities
|
|
9,518
|
|
|
21
|
|
|
(84
|
)
|
|
9,455
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
7
|
|
|
(163
|
)
|
|
11,094
|
|
||||
Foreign bonds
|
|
489,324
|
|
|
3
|
|
|
(16,658
|
)
|
|
472,669
|
|
||||
Asset-backed securities
|
|
12,627
|
|
|
—
|
|
|
(82
|
)
|
|
12,545
|
|
||||
Total available-for-sale investment securities
|
|
$
|
2,675,834
|
|
|
$
|
7,230
|
|
|
$
|
(42,906
|
)
|
|
$
|
2,640,158
|
|
|
|
||||||||||||||||
|
|
December 31, 2018
|
||||||||||||||
($ in thousands)
|
|
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
|
|
25,826
|
|
|
226
|
|
|
—
|
|
|
26,052
|
|
||||
Residential mortgage-backed securities
|
|
10,109
|
|
|
7
|
|
|
(185
|
)
|
|
9,931
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
—
|
|
|
(381
|
)
|
|
10,869
|
|
||||
Foreign bonds
|
|
489,378
|
|
|
—
|
|
|
(26,330
|
)
|
|
463,048
|
|
||||
Asset-backed securities
|
|
12,621
|
|
|
22
|
|
|
—
|
|
|
12,643
|
|
||||
Total available-for-sale investment securities
|
|
$
|
2,806,900
|
|
|
$
|
5,714
|
|
|
$
|
(70,767
|
)
|
|
$
|
2,741,847
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
March 31, 2019
|
||||||||||||||||||||||
($ in thousands)
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
520,440
|
|
|
$
|
(8,543
|
)
|
|
$
|
520,440
|
|
|
$
|
(8,543
|
)
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
—
|
|
|
—
|
|
|
153,149
|
|
|
(1,313
|
)
|
|
153,149
|
|
|
(1,313
|
)
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
31,872
|
|
|
(12
|
)
|
|
268,426
|
|
|
(9,540
|
)
|
|
300,298
|
|
|
(9,552
|
)
|
||||||
Residential mortgage-backed securities
|
|
38,927
|
|
|
(231
|
)
|
|
543,638
|
|
|
(6,091
|
)
|
|
582,565
|
|
|
(6,322
|
)
|
||||||
Municipal securities
|
|
4,895
|
|
|
(5
|
)
|
|
21,660
|
|
|
(184
|
)
|
|
26,555
|
|
|
(189
|
)
|
||||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
6,695
|
|
|
(84
|
)
|
|
6,695
|
|
|
(84
|
)
|
||||||
Corporate debt securities
|
|
9,838
|
|
|
(163
|
)
|
|
—
|
|
|
—
|
|
|
9,838
|
|
|
(163
|
)
|
||||||
Foreign bonds
|
|
11,202
|
|
|
(59
|
)
|
|
458,323
|
|
|
(16,599
|
)
|
|
469,525
|
|
|
(16,658
|
)
|
||||||
Asset-backed securities
|
|
12,545
|
|
|
(82
|
)
|
|
—
|
|
|
—
|
|
|
12,545
|
|
|
(82
|
)
|
||||||
Total available-for-sale investment securities
|
|
$
|
109,279
|
|
|
$
|
(552
|
)
|
|
$
|
1,972,331
|
|
|
$
|
(42,354
|
)
|
|
$
|
2,081,610
|
|
|
$
|
(42,906
|
)
|
|
|
||||||||||||||||||||||||
|
|
December 31, 2018
|
||||||||||||||||||||||
($ in thousands)
|
|
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
|
|
3,067
|
|
|
(19
|
)
|
|
3,949
|
|
|
(166
|
)
|
|
7,016
|
|
|
(185
|
)
|
||||||
Corporate debt securities
|
|
10,869
|
|
|
(381
|
)
|
|
—
|
|
|
—
|
|
|
10,869
|
|
|
(381
|
)
|
||||||
Foreign bonds
|
|
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)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Proceeds from sales
|
|
$
|
151,339
|
|
|
$
|
214,790
|
|
Gross realized gains
|
|
$
|
1,561
|
|
|
$
|
2,129
|
|
Related tax expense
|
|
$
|
461
|
|
|
$
|
628
|
|
|
|
||||||||
($ in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due within one year
|
|
$
|
563,394
|
|
|
$
|
546,641
|
|
Due after one year through five years
|
|
585,603
|
|
|
576,863
|
|
||
Due after five years through ten years
|
|
202,347
|
|
|
202,118
|
|
||
Due after ten years
|
|
1,324,490
|
|
|
1,314,536
|
|
||
Total available-for-sale investment securities
|
|
$
|
2,675,834
|
|
|
$
|
2,640,158
|
|
|
|
||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
FRB stock
|
|
$
|
57,486
|
|
|
$
|
56,819
|
|
FHLB stock
|
|
17,250
|
|
|
17,250
|
|
||
Total restricted equity securities
|
|
$
|
74,736
|
|
|
$
|
74,069
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
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
|
|
$
|
31,026
|
|
|
$
|
—
|
|
|
$
|
4,660
|
|
|
$
|
35,811
|
|
|
$
|
—
|
|
|
$
|
5,866
|
|
Net investment hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
92,215
|
|
|
—
|
|
|
18
|
|
|
90,245
|
|
|
—
|
|
|
611
|
|
||||||
Total derivatives designated as hedging instruments
|
|
$
|
123,241
|
|
|
$
|
—
|
|
|
$
|
4,678
|
|
|
$
|
126,056
|
|
|
$
|
—
|
|
|
$
|
6,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
$
|
12,266,761
|
|
|
$
|
96,256
|
|
|
$
|
71,912
|
|
|
$
|
11,695,499
|
|
|
$
|
69,818
|
|
|
$
|
69,267
|
|
Foreign exchange contracts
|
|
3,513,714
|
|
|
30,085
|
|
|
24,900
|
|
|
3,407,522
|
|
|
21,624
|
|
|
19,329
|
|
||||||
Credit contracts
|
|
92,925
|
|
|
1
|
|
|
81
|
|
|
119,320
|
|
|
1
|
|
|
164
|
|
||||||
Equity contracts
|
|
—
|
|
(1)
|
2,201
|
|
|
—
|
|
|
—
|
|
(1)
|
1,951
|
|
|
—
|
|
||||||
Commodity contracts
|
|
—
|
|
(2)
|
7,239
|
|
|
8,016
|
|
|
—
|
|
(2)
|
14,422
|
|
|
23,068
|
|
||||||
Total derivatives not designated as hedging instruments
|
|
$
|
15,873,400
|
|
|
$
|
135,782
|
|
|
$
|
104,909
|
|
|
$
|
15,222,341
|
|
|
$
|
107,816
|
|
|
$
|
111,828
|
|
Gross derivative assets/liabilities
|
|
|
|
$
|
135,782
|
|
|
$
|
109,587
|
|
|
|
|
$
|
107,816
|
|
|
$
|
118,305
|
|
||||
Less: Master netting agreements
|
|
|
|
(39,118
|
)
|
|
(39,118
|
)
|
|
|
|
(31,569
|
)
|
|
(31,569
|
)
|
||||||||
Less: Cash collateral received/paid
|
|
|
|
(920
|
)
|
|
(16,984
|
)
|
|
|
|
(13,577
|
)
|
|
(6,833
|
)
|
||||||||
Net derivative assets/liabilities
|
|
|
|
$
|
95,744
|
|
|
$
|
53,485
|
|
|
|
|
$
|
62,670
|
|
|
$
|
79,903
|
|
||||
|
(1)
|
The Company held equity contracts in
four
public companies and
17
private companies as of
March 31, 2019
. In comparison, the Company held equity contracts in
four
public companies and
18
private companies as of
December 31, 2018
.
|
(2)
|
The notional amount of the Company’s commodity contracts entered with its customers totaled
4,178 thousand
barrels of oil and
20,679 thousand
units of natural gas, measured in million British thermal units (“MMBTUs”) as of
March 31, 2019
. In comparison, the notional amount of the Company’s commodity contracts entered with its customers totaled
2,507 thousand
barrels of oil and
14,722 thousand
MMBTUs of natural gas 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.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Gains (losses) recorded in interest expense:
|
|
|
|
|
||||
Recognized on interest rate swaps
|
|
$
|
1,220
|
|
|
$
|
(1,452
|
)
|
Recognized on certificates of deposit
|
|
$
|
(1,261
|
)
|
|
$
|
1,279
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Carrying Value
(1)
|
|
Cumulative Fair
Value Adjustment
(2)
|
||||||||||||
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|||||||||
Certificates of deposit
|
|
$
|
(27,804
|
)
|
|
$
|
(26,877
|
)
|
|
$
|
2,880
|
|
|
$
|
4,141
|
|
|
(1)
|
Represents the full carrying amount of the hedged certificates of deposit.
|
(2)
|
For liabilities, decrease to carrying value.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Losses recognized in AOCI
|
|
$
|
2,005
|
|
|
$
|
1,154
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount
|
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Written options
|
|
$
|
957,000
|
|
|
$
|
—
|
|
|
$
|
189
|
|
|
Purchased options
|
|
$
|
957,000
|
|
|
$
|
193
|
|
|
$
|
—
|
|
Sold collars and corridors
|
|
477,225
|
|
|
1,272
|
|
|
67
|
|
|
Collars and corridors
|
|
477,225
|
|
|
67
|
|
|
1,297
|
|
||||||
Swaps
|
|
4,695,922
|
|
|
81,642
|
|
|
20,121
|
|
|
Swaps
|
|
4,702,389
|
|
|
13,082
|
|
|
50,238
|
|
||||||
Total
|
|
$
|
6,130,147
|
|
|
$
|
82,914
|
|
|
$
|
20,377
|
|
|
Total
|
|
$
|
6,136,614
|
|
|
$
|
13,342
|
|
|
$
|
51,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
($ 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)
|
|
March 31, 2019
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Forwards and spot
|
|
$
|
2,355,139
|
|
|
$
|
20,016
|
|
|
$
|
18,852
|
|
|
Forwards and spot
|
|
$
|
239,101
|
|
|
$
|
2,685
|
|
|
$
|
1,414
|
|
Swaps
|
|
31,174
|
|
|
97
|
|
|
223
|
|
|
Swaps
|
|
705,716
|
|
|
6,522
|
|
|
3,646
|
|
||||||
Written options
|
|
549
|
|
|
7
|
|
|
—
|
|
|
Purchased options
|
|
549
|
|
|
—
|
|
|
7
|
|
||||||
Collars
|
|
90,743
|
|
|
17
|
|
|
741
|
|
|
Collars
|
|
90,743
|
|
|
741
|
|
|
17
|
|
||||||
Total
|
|
$
|
2,477,605
|
|
|
$
|
20,137
|
|
|
$
|
19,816
|
|
|
Total
|
|
$
|
1,036,109
|
|
|
$
|
9,948
|
|
|
$
|
5,084
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
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)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
Notional
Amount
|
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
RPAs - protection sold
|
|
$
|
82,211
|
|
|
$
|
—
|
|
|
$
|
81
|
|
|
$
|
108,606
|
|
|
$
|
—
|
|
|
$
|
164
|
|
RPAs - protection purchased
|
|
10,714
|
|
|
1
|
|
|
—
|
|
|
10,714
|
|
|
1
|
|
|
—
|
|
||||||
Total RPAs
|
|
$
|
92,925
|
|
|
$
|
1
|
|
|
$
|
81
|
|
|
$
|
119,320
|
|
|
$
|
1
|
|
|
$
|
164
|
|
|
|
||||||||||||||||||||||||||||
($ and units
in thousands)
|
|
March 31, 2019
|
||||||||||||||||||||||||||
|
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
|
|
307
|
|
|
$
|
442
|
|
|
$
|
303
|
|
|
Purchased options
|
|
Barrels
|
|
307
|
|
|
$
|
163
|
|
|
$
|
424
|
|
Collars
|
|
Barrels
|
|
2,394
|
|
|
2,800
|
|
|
282
|
|
|
Collars
|
|
Barrels
|
|
2,394
|
|
|
254
|
|
|
2,758
|
|
||||
Swaps
|
|
Barrels
|
|
1,477
|
|
|
719
|
|
|
2,484
|
|
|
Swaps
|
|
Barrels
|
|
1,477
|
|
|
832
|
|
|
321
|
|
||||
Total
|
|
|
|
4,178
|
|
|
$
|
3,961
|
|
|
$
|
3,069
|
|
|
Total
|
|
|
|
4,178
|
|
|
$
|
1,249
|
|
|
$
|
3,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas:
|
|
|
|
|
|
|
|
|
|
Natural gas:
|
|
|
|
|
|
|
|
|
||||||||||
Collars
|
|
MMBTUs
|
|
6,241
|
|
|
$
|
128
|
|
|
$
|
19
|
|
|
Collars
|
|
MMBTUs
|
|
6,241
|
|
|
$
|
15
|
|
|
$
|
117
|
|
Swaps
|
|
MMBTUs
|
|
14,438
|
|
|
817
|
|
|
1,003
|
|
|
Swaps
|
|
MMBTUs
|
|
14,438
|
|
|
1,069
|
|
|
305
|
|
||||
Total
|
|
|
|
20,679
|
|
|
$
|
945
|
|
|
$
|
1,022
|
|
|
Total
|
|
|
|
20,679
|
|
|
$
|
1,084
|
|
|
$
|
422
|
|
Total
|
|
|
|
|
|
$
|
4,906
|
|
|
$
|
4,091
|
|
|
Total
|
|
|
|
|
|
$
|
2,333
|
|
|
$
|
3,925
|
|
||
|
|
||||||||||||||||||||||||||||
($ and units
in thousands) |
|
December 31, 2018
|
||||||||||||||||||||||||||
|
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)
|
|
Classification on
Consolidated
Statement of Income
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
||||
Interest rate contracts
|
|
Interest rate contracts and other derivative income
|
|
$
|
(1,779
|
)
|
|
$
|
1,106
|
|
Foreign exchange contracts
|
|
Foreign exchange income
|
|
6,326
|
|
|
3,857
|
|
||
Credit contracts
|
|
Interest rate contracts and other derivative income
|
|
83
|
|
|
(13
|
)
|
||
Equity contracts
|
|
Lending fees
|
|
250
|
|
|
(159
|
)
|
||
Commodity contracts
|
|
Interest rate contracts and other derivative income
|
|
4
|
|
|
—
|
|
||
Net gains
|
|
|
|
$
|
4,884
|
|
|
$
|
4,791
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||||||
|
|
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
|
|
$
|
135,782
|
|
|
$
|
(39,118
|
)
|
|
$
|
(920
|
)
|
|
$
|
95,744
|
|
|
$
|
(1,097
|
)
|
|
$
|
94,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
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
|
|
$
|
109,587
|
|
|
$
|
(39,118
|
)
|
|
$
|
(16,984
|
)
|
|
$
|
53,485
|
|
|
$
|
(26,191
|
)
|
|
$
|
27,294
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
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
|
|
|
(1)
|
Gross amounts recognized for derivative assets include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of
$133.6 million
and
$105.9 million
, respectively, as of
March 31, 2019
and
December 31, 2018
, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of
$2.2 million
and
$2.0 million
, respectively, as of
March 31, 2019
and
December 31, 2018
.
|
(2)
|
Gross amounts recognized for derivative liabilities include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of
$109.6 million
and
$118.2 million
, respectively, as of
March 31, 2019
and
December 31, 2018
, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of
$9 thousand
and
$102 thousand
, respectively, as of
March 31, 2019
and
December 31, 2018
.
|
(3)
|
Gross cash collateral received under master netting arrangements or similar agreements were
$920 thousand
and
$15.8 million
, respectively, as of
March 31, 2019
and
December 31, 2018
. Of the gross cash collateral received,
$920 thousand
and
$13.6 million
were used to offset against derivative assets, respectively, as of
March 31, 2019
and
December 31, 2018
.
|
(4)
|
Gross cash collateral pledged under master netting arrangements or similar agreements were
$20.0 million
and
$8.4 million
, respectively, as of
March 31, 2019
and
December 31, 2018
. Of the gross cash collateral pledged,
$17.0 million
and
$6.8 million
were used to offset against derivative liabilities, respectively, as of
March 31, 2019
and
December 31, 2018
.
|
(5)
|
Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of non-cash collateral on the consolidated balance sheet but requires disclosure of such amounts.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Non-PCI
Loans
(1)
|
|
PCI
Loans
(2)
|
|
Total
(1)(2)
|
|
Non-PCI
Loans
(1)
|
|
PCI
Loans
(2)
|
|
Total
(1)(2)
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
12,038,864
|
|
|
$
|
1,942
|
|
|
$
|
12,040,806
|
|
|
$
|
12,054,818
|
|
|
$
|
2,152
|
|
|
$
|
12,056,970
|
|
CRE
|
|
9,478,979
|
|
|
157,359
|
|
|
9,636,338
|
|
|
9,284,583
|
|
|
165,252
|
|
|
9,449,835
|
|
||||||
Multifamily residential
|
|
2,242,327
|
|
|
28,263
|
|
|
2,270,590
|
|
|
2,246,506
|
|
|
34,526
|
|
|
2,281,032
|
|
||||||
Construction and land
|
|
647,338
|
|
|
42
|
|
|
647,380
|
|
|
538,752
|
|
|
42
|
|
|
538,794
|
|
||||||
Total commercial
|
|
24,407,508
|
|
|
187,606
|
|
|
24,595,114
|
|
|
24,124,659
|
|
|
201,972
|
|
|
24,326,631
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
6,214,386
|
|
|
94,945
|
|
|
6,309,331
|
|
|
5,939,258
|
|
|
97,196
|
|
|
6,036,454
|
|
||||||
HELOCs
|
|
1,618,445
|
|
|
7,777
|
|
|
1,626,222
|
|
|
1,681,979
|
|
|
8,855
|
|
|
1,690,834
|
|
||||||
Other consumer
|
|
332,619
|
|
|
—
|
|
|
332,619
|
|
|
331,270
|
|
|
—
|
|
|
331,270
|
|
||||||
Total consumer
|
|
8,165,450
|
|
|
102,722
|
|
|
8,268,172
|
|
|
7,952,507
|
|
|
106,051
|
|
|
8,058,558
|
|
||||||
Total loans held-for-investment
|
|
$
|
32,572,958
|
|
|
$
|
290,328
|
|
|
$
|
32,863,286
|
|
|
$
|
32,077,166
|
|
|
$
|
308,023
|
|
|
$
|
32,385,189
|
|
Allowance for loan losses
|
|
(317,880
|
)
|
|
(14
|
)
|
|
(317,894
|
)
|
|
(311,300
|
)
|
|
(22
|
)
|
|
(311,322
|
)
|
||||||
Loans held-for-investment, net
|
|
$
|
32,255,078
|
|
|
$
|
290,314
|
|
|
$
|
32,545,392
|
|
|
$
|
31,765,866
|
|
|
$
|
308,001
|
|
|
$
|
32,073,867
|
|
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of
$(46.0) million
and
$(48.9) million
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
(2)
|
Includes ASC 310-30 discount of
$20.4 million
and
$22.2 million
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
|
||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
Non-PCI Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
11,513,029
|
|
|
$
|
283,651
|
|
|
$
|
219,619
|
|
|
$
|
22,565
|
|
|
$
|
12,038,864
|
|
CRE
|
|
9,337,492
|
|
|
50,171
|
|
|
91,316
|
|
|
—
|
|
|
9,478,979
|
|
|||||
Multifamily residential
|
|
2,210,481
|
|
|
20,900
|
|
|
10,946
|
|
|
—
|
|
|
2,242,327
|
|
|||||
Construction and land
|
|
593,632
|
|
|
20,046
|
|
|
33,660
|
|
|
—
|
|
|
647,338
|
|
|||||
Total commercial
|
|
23,654,634
|
|
|
374,768
|
|
|
355,541
|
|
|
22,565
|
|
|
24,407,508
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
6,192,411
|
|
|
7,688
|
|
|
14,287
|
|
|
—
|
|
|
6,214,386
|
|
|||||
HELOCs
|
|
1,601,555
|
|
|
2,492
|
|
|
14,398
|
|
|
—
|
|
|
1,618,445
|
|
|||||
Other consumer
|
|
316,113
|
|
|
14,000
|
|
|
2,506
|
|
|
—
|
|
|
332,619
|
|
|||||
Total consumer
|
|
8,110,079
|
|
|
24,180
|
|
|
31,191
|
|
|
—
|
|
|
8,165,450
|
|
|||||
Total
|
|
$
|
31,764,713
|
|
|
$
|
398,948
|
|
|
$
|
386,732
|
|
|
$
|
22,565
|
|
|
$
|
32,572,958
|
|
|
|
||||||||||||||||||||
($ 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)
|
|
March 31, 2019
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
PCI Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
1,942
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,942
|
|
CRE
|
|
137,259
|
|
|
719
|
|
|
19,381
|
|
|
—
|
|
|
157,359
|
|
|||||
Multifamily residential
|
|
26,770
|
|
|
—
|
|
|
1,493
|
|
|
—
|
|
|
28,263
|
|
|||||
Construction and land
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Total commercial
|
|
166,013
|
|
|
719
|
|
|
20,874
|
|
|
—
|
|
|
187,606
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
93,375
|
|
|
772
|
|
|
798
|
|
|
—
|
|
|
94,945
|
|
|||||
HELOCs
|
|
7,042
|
|
|
456
|
|
|
279
|
|
|
—
|
|
|
7,777
|
|
|||||
Total consumer
|
|
100,417
|
|
|
1,228
|
|
|
1,077
|
|
|
—
|
|
|
102,722
|
|
|||||
Total
(1)
|
|
$
|
266,430
|
|
|
$
|
1,947
|
|
|
$
|
21,951
|
|
|
$
|
—
|
|
|
$
|
290,328
|
|
|
|
||||||||||||||||||||
($ 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
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||||||||||||||
|
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
|
|
$
|
10,098
|
|
|
$
|
18,884
|
|
|
$
|
28,982
|
|
|
$
|
59,140
|
|
|
$
|
27,326
|
|
|
$
|
86,466
|
|
|
$
|
11,923,416
|
|
|
$
|
12,038,864
|
|
CRE
|
|
18,192
|
|
|
4,042
|
|
|
22,234
|
|
|
3,666
|
|
|
21,543
|
|
|
25,209
|
|
|
9,431,536
|
|
|
9,478,979
|
|
||||||||
Multifamily residential
|
|
2,600
|
|
|
383
|
|
|
2,983
|
|
|
1,040
|
|
|
580
|
|
|
1,620
|
|
|
2,237,724
|
|
|
2,242,327
|
|
||||||||
Construction and land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
647,338
|
|
|
647,338
|
|
||||||||
Total commercial
|
|
30,890
|
|
|
23,309
|
|
|
54,199
|
|
|
63,846
|
|
|
49,449
|
|
|
113,295
|
|
|
24,240,014
|
|
|
24,407,508
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family residential
|
|
14,653
|
|
|
9,382
|
|
|
24,035
|
|
|
499
|
|
|
9,968
|
|
|
10,467
|
|
|
6,179,884
|
|
|
6,214,386
|
|
||||||||
HELOCs
|
|
6,065
|
|
|
1,660
|
|
|
7,725
|
|
|
1,381
|
|
|
9,092
|
|
|
10,473
|
|
|
1,600,247
|
|
|
1,618,445
|
|
||||||||
Other consumer
|
|
17
|
|
|
3
|
|
|
20
|
|
|
—
|
|
|
2,506
|
|
|
2,506
|
|
|
330,093
|
|
|
332,619
|
|
||||||||
Total consumer
|
|
20,735
|
|
|
11,045
|
|
|
31,780
|
|
|
1,880
|
|
|
21,566
|
|
|
23,446
|
|
|
8,110,224
|
|
|
8,165,450
|
|
||||||||
Total
|
|
$
|
51,625
|
|
|
$
|
34,354
|
|
|
$
|
85,979
|
|
|
$
|
65,726
|
|
|
$
|
71,015
|
|
|
$
|
136,741
|
|
|
$
|
32,350,238
|
|
|
$
|
32,572,958
|
|
|
|
||||||||||||||||||||||||||||||||
($ 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)
|
|
Number
of Loans |
|
Pre-
Modification
Outstanding Recorded Investment |
|
Post-
Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
3
|
|
$
|
29,152
|
|
|
$
|
29,176
|
|
|
$
|
60
|
|
|
(1)
|
Includes subsequent payments after modification and reflects the balance as of
March 31, 2019
.
|
(2)
|
The financial impact includes increases in charge-offs and specific reserves recorded at the modification date.
|
|
||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31,
|
||||||||||||
|
2019
|
|
2018
|
|||||||||||
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
3
|
|
|
$
|
4,618
|
|
|
—
|
|
|
$
|
—
|
|
Consumer:
|
|
|
|
|
|
|
|
|
||||||
HELOCs
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
155
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
With No
Allowance
|
|
Recorded
Investment
With
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
159,172
|
|
|
$
|
117,905
|
|
|
$
|
11,791
|
|
|
$
|
129,696
|
|
|
$
|
1,537
|
|
CRE
|
|
37,461
|
|
|
29,288
|
|
|
2,012
|
|
|
31,300
|
|
|
197
|
|
|||||
Multifamily residential
|
|
6,373
|
|
|
2,925
|
|
|
2,958
|
|
|
5,883
|
|
|
92
|
|
|||||
Total commercial
|
|
203,006
|
|
|
150,118
|
|
|
16,761
|
|
|
166,879
|
|
|
1,826
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
19,593
|
|
|
3,970
|
|
|
14,366
|
|
|
18,336
|
|
|
43
|
|
|||||
HELOCs
|
|
11,794
|
|
|
5,356
|
|
|
6,308
|
|
|
11,664
|
|
|
84
|
|
|||||
Other consumer
|
|
2,506
|
|
|
—
|
|
|
2,506
|
|
|
2,506
|
|
|
2,502
|
|
|||||
Total consumer
|
|
33,893
|
|
|
9,326
|
|
|
23,180
|
|
|
32,506
|
|
|
2,629
|
|
|||||
Total non-PCI impaired loans
|
|
$
|
236,899
|
|
|
$
|
159,444
|
|
|
$
|
39,941
|
|
|
$
|
199,385
|
|
|
$
|
4,455
|
|
|
|
||||||||||||||||||||
($ 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)
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2019
|
|
2018
|
|||||||||||||
|
Average
Recorded Investment |
|
Recognized
Interest
Income
(1)
|
|
Average
Recorded Investment |
|
Recognized
Interest
Income
(1)
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
93,391
|
|
|
$
|
735
|
|
|
$
|
98,833
|
|
|
$
|
262
|
|
CRE
|
|
30,827
|
|
|
114
|
|
|
35,236
|
|
|
143
|
|
||||
Multifamily residential
|
|
5,721
|
|
|
61
|
|
|
10,027
|
|
|
82
|
|
||||
Construction and land
|
|
—
|
|
|
—
|
|
|
3,973
|
|
|
—
|
|
||||
Total commercial
|
|
129,939
|
|
|
910
|
|
|
148,069
|
|
|
487
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
15,898
|
|
|
128
|
|
|
15,079
|
|
|
113
|
|
||||
HELOCs
|
|
10,811
|
|
|
18
|
|
|
6,671
|
|
|
15
|
|
||||
Other consumer
|
|
2,504
|
|
|
—
|
|
|
2,491
|
|
|
—
|
|
||||
Total consumer
|
|
29,213
|
|
|
146
|
|
|
24,241
|
|
|
128
|
|
||||
Total non-PCI impaired loans
|
|
$
|
159,152
|
|
|
$
|
1,056
|
|
|
$
|
172,310
|
|
|
$
|
615
|
|
|
(1)
|
Includes interest income 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)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Non-PCI Loans
|
|
|
|
|
||||
Allowance for non-PCI loans, beginning of period
|
|
$
|
311,300
|
|
|
$
|
287,070
|
|
Provision for loan losses on non-PCI loans
|
|
20,648
|
|
|
19,933
|
|
||
Gross charge-offs:
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
(17,244
|
)
|
|
(18,445
|
)
|
||
Consumer:
|
|
|
|
|
||||
Single-family residential
|
|
—
|
|
|
(1
|
)
|
||
Other consumer
|
|
(14
|
)
|
|
(17
|
)
|
||
Total gross charge-offs
|
|
(17,258
|
)
|
|
(18,463
|
)
|
||
Gross recoveries:
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
2,251
|
|
|
7,279
|
|
||
CRE
|
|
222
|
|
|
427
|
|
||
Multifamily residential
|
|
281
|
|
|
333
|
|
||
Construction and land
|
|
63
|
|
|
435
|
|
||
Consumer:
|
|
|
|
|
||||
Single-family residential
|
|
2
|
|
|
184
|
|
||
HELOCs
|
|
2
|
|
|
—
|
|
||
Other consumer
|
|
—
|
|
|
1
|
|
||
Total gross recoveries
|
|
2,821
|
|
|
8,659
|
|
||
Net charge-offs
|
|
(14,437
|
)
|
|
(9,804
|
)
|
||
Foreign currency translation adjustments
|
|
369
|
|
|
408
|
|
||
Allowance for non-PCI loans, end of period
|
|
317,880
|
|
|
297,607
|
|
||
PCI Loans
|
|
|
|
|
||||
Allowance for PCI loans, beginning of period
|
|
22
|
|
|
58
|
|
||
Reversal of loan losses on PCI loans
|
|
(8
|
)
|
|
(11
|
)
|
||
Allowance for PCI loans, end of period
|
|
14
|
|
|
47
|
|
||
Allowance for loan losses
|
|
$
|
317,894
|
|
|
$
|
297,654
|
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Allowance for unfunded credit reserves, beginning of period
|
|
$
|
12,566
|
|
|
$
|
13,318
|
|
Provision for unfunded credit reserves
|
|
1,939
|
|
|
296
|
|
||
Allowance for unfunded credit reserves, end of period
|
|
$
|
14,505
|
|
|
$
|
13,614
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||||||||||||||
|
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
|
|
$
|
1,537
|
|
|
$
|
197
|
|
|
$
|
92
|
|
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
84
|
|
|
$
|
2,502
|
|
|
$
|
4,455
|
|
Collectively evaluated for impairment
|
|
188,220
|
|
|
39,668
|
|
|
18,422
|
|
|
22,349
|
|
|
35,716
|
|
|
7,317
|
|
|
1,733
|
|
|
313,425
|
|
||||||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||||
Total
|
|
$
|
189,757
|
|
|
$
|
39,879
|
|
|
$
|
18,514
|
|
|
$
|
22,349
|
|
|
$
|
35,759
|
|
|
$
|
7,401
|
|
|
$
|
4,235
|
|
|
$
|
317,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
129,696
|
|
|
$
|
31,300
|
|
|
$
|
5,883
|
|
|
$
|
—
|
|
|
$
|
18,336
|
|
|
$
|
11,664
|
|
|
$
|
2,506
|
|
|
$
|
199,385
|
|
Collectively evaluated for impairment
|
|
11,909,168
|
|
|
9,447,679
|
|
|
2,236,444
|
|
|
647,338
|
|
|
6,196,050
|
|
|
1,606,781
|
|
|
330,113
|
|
|
32,373,573
|
|
||||||||
Acquired with deteriorated credit quality
(1)
|
|
1,942
|
|
|
157,359
|
|
|
28,263
|
|
|
42
|
|
|
94,945
|
|
|
7,777
|
|
|
—
|
|
|
290,328
|
|
||||||||
Total
(1)
|
|
$
|
12,040,806
|
|
|
$
|
9,636,338
|
|
|
$
|
2,270,590
|
|
|
$
|
647,380
|
|
|
$
|
6,309,331
|
|
|
$
|
1,626,222
|
|
|
$
|
332,619
|
|
|
$
|
32,863,286
|
|
|
|
||||||||||||||||||||||||||||||||
($ 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
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Accretable yield for PCI loans, beginning of period
|
|
$
|
74,870
|
|
|
$
|
101,977
|
|
Accretion
|
|
(6,201
|
)
|
|
(9,134
|
)
|
||
Changes in expected cash flows
|
|
192
|
|
|
3,021
|
|
||
Accretable yield for PCI loans, end of period
|
|
$
|
68,861
|
|
|
$
|
95,864
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Single-Family
Residential |
|
||||||||||||
Loans transferred from held-for-investment to held-for-sale
(1)
|
|
$
|
75,573
|
|
|
$
|
16,655
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92,228
|
|
Sales
(2)(3)(4)
|
|
$
|
75,646
|
|
|
$
|
16,655
|
|
|
$
|
—
|
|
|
$
|
2,442
|
|
|
$
|
94,743
|
|
Purchases
(5)
|
|
$
|
107,194
|
|
|
$
|
—
|
|
|
$
|
4,218
|
|
|
$
|
36,402
|
|
|
$
|
147,814
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
|
|||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Single-Family
Residential |
|
Total
|
|||||||||||
Loans transferred from held-for-investment to held-for-sale
(1)
|
|
$
|
146,391
|
|
|
$
|
9,376
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
155,767
|
|
Sales
(2)(3)(4)
|
|
$
|
102,365
|
|
|
$
|
9,376
|
|
|
$
|
—
|
|
|
$
|
2,546
|
|
|
$
|
114,287
|
|
Purchases
(5)
|
|
$
|
64,747
|
|
|
$
|
—
|
|
|
$
|
186
|
|
|
$
|
15,113
|
|
|
$
|
80,046
|
|
|
(1)
|
The Company recorded
$73 thousand
and
$85 thousand
in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the
three months ended March 31, 2019
and
2018
, respectively.
|
(2)
|
Includes originated loans sold of
$76.5 million
and
$89.7 million
for the
three months ended March 31, 2019
and
2018
, respectively. Originated loans sold during each of the
three months ended March 31, 2019
and
2018
were primarily C&I and CRE loans.
|
(3)
|
Includes purchased loans sold in the secondary market of
$18.2 million
and
$24.6 million
for the
three months ended March 31, 2019
and
2018
, respectively.
|
(4)
|
Net gains on sales of loans, excluding the lower of cost or fair value adjustments, were
$915 thousand
and
$1.6 million
for the
three months ended March 31, 2019
and
2018
, respectively.
No
lower of cost or fair value adjustments were recorded for each of the
three months ended March 31, 2019
and
2018
.
|
(5)
|
C&I loan purchases for each of the
three months ended March 31, 2019
and
2018
were comprised of C&I syndicated loans.
|
|
||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Investments in qualified affordable housing partnerships, net
|
|
$
|
197,470
|
|
|
$
|
184,873
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
83,769
|
|
|
$
|
80,764
|
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Tax credits and other tax benefits recognized
|
|
$
|
11,826
|
|
|
$
|
9,155
|
|
Amortization expense included in income tax expense
|
|
$
|
8,897
|
|
|
$
|
7,073
|
|
|
|
||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Investments in tax credit and other investments, net
|
|
$
|
217,445
|
|
|
$
|
231,635
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
78,326
|
|
|
$
|
80,228
|
|
|
|
||||||||||||
($ 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, March 31, 2018
|
|
$
|
353,321
|
|
|
$
|
112,226
|
|
|
$
|
465,547
|
|
|
|
||||||||||||
($ in thousands)
|
|
Consumer
and
Business Banking
|
|
Commercial
Banking
|
|
Total
|
||||||
Beginning balance, January 1, 2019
|
|
$
|
353,321
|
|
|
$
|
112,226
|
|
|
$
|
465,547
|
|
Acquisition of Enstream Capital Markets, LLC
|
|
—
|
|
|
150
|
|
|
150
|
|
|||
Ending balance, March 31, 2019
|
|
$
|
353,321
|
|
|
$
|
112,376
|
|
|
$
|
465,697
|
|
|
|
||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Gross balance
(1)
|
|
$
|
86,099
|
|
|
$
|
86,099
|
|
Accumulated amortization
(1)
|
|
(72,744
|
)
|
|
(71,570
|
)
|
||
Net carrying balance
(1)
|
|
$
|
13,355
|
|
|
$
|
14,529
|
|
|
(1)
|
Excludes fully amortized core deposit intangible assets.
|
|
||||
($ in thousands)
|
|
Amount
|
||
Remainder of 2019
|
|
$
|
3,344
|
|
2020
|
|
3,634
|
|
|
2021
|
|
2,749
|
|
|
2022
|
|
1,865
|
|
|
2023
|
|
1,199
|
|
|
Thereafter
|
|
564
|
|
|
Total
|
|
$
|
13,355
|
|
|
|
||||||
($ in thousands)
|
|
Classification on the Consolidated Balance Sheet
|
|
March 31, 2019
|
||
Assets:
|
|
|
|
|
||
Operating lease assets
|
|
Operating lease right-of use assets
|
|
$
|
104,289
|
|
Finance lease assets
|
|
Premises and equipment
|
|
8,199
|
|
|
Total lease assets
|
|
|
|
$
|
112,488
|
|
Liabilities:
|
|
|
|
|
||
Operating lease liabilities
|
|
Operating lease liabilities
|
|
$
|
112,843
|
|
Finance lease liabilities
|
|
Long-term debt and finance lease liabilities
|
|
5,533
|
|
|
Total lease liabilities
|
|
|
|
$
|
118,376
|
|
|
|
||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||
Operating lease cost
|
|
$
|
8,980
|
|
Finance lease cost:
|
|
|
||
Amortization of right-of-use assets
|
|
202
|
|
|
Interest on lease liabilities
|
|
46
|
|
|
Variable lease cost
|
|
30
|
|
|
Sublease income
|
|
(32
|
)
|
|
Net lease cost
|
|
$
|
9,226
|
|
|
|
||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
9,175
|
|
Operating cash flows from finance leases
|
|
$
|
46
|
|
Financing cash flows from finance leases
|
|
$
|
217
|
|
Right-of-use assets obtained in exchange for new lease liabilities:
|
|
|
||
Operating leases
|
|
$
|
3,678
|
|
|
|
|||
($ in thousands)
|
|
March 31, 2019
|
|
Weighted-average remaining lease term:
|
|
|
|
Operating leases
|
|
5.0 years
|
|
Finance leases
|
|
16.1 years
|
|
Weighted-average discount rate:
|
|
|
|
Operating leases
|
|
3.24
|
%
|
Finance leases
|
|
3.29
|
%
|
|
|
||||||||
($ in thousands)
|
|
Operating Leases
|
|
Finance Leases
|
||||
Remainder of 2019
|
|
$
|
23,357
|
|
|
$
|
782
|
|
2020
|
|
28,029
|
|
|
997
|
|
||
2021
|
|
23,359
|
|
|
977
|
|
||
2022
|
|
16,542
|
|
|
638
|
|
||
2023
|
|
10,675
|
|
|
349
|
|
||
Thereafter
|
|
20,548
|
|
|
3,450
|
|
||
Total minimum lease payments
|
|
$
|
122,510
|
|
|
$
|
7,193
|
|
Less: imputed interest
|
|
(9,667
|
)
|
|
(1,660
|
)
|
||
Present value of lease liabilities
|
|
$
|
112,843
|
|
|
$
|
5,533
|
|
|
|
||||
($ in thousands)
|
|
Direct Financing Leases
|
||
As of March 31, 2019
|
|
|
||
Lease receivables
|
|
$
|
140,001
|
|
Unguaranteed residual assets
|
|
14,486
|
|
|
Net investment in direct financing leases
|
|
$
|
154,487
|
|
Three Months Ended March 31, 2019
|
|
|
||
Interest income
|
|
$
|
1,541
|
|
|
|
||||
($ in thousands)
|
|
Direct Financing Leases
|
||
Remainder of 2019
|
|
$
|
20,374
|
|
2020
|
|
27,027
|
|
|
2021
|
|
25,046
|
|
|
2022
|
|
17,651
|
|
|
2023
|
|
11,454
|
|
|
Thereafter
|
|
18,981
|
|
|
Total minimum lease payments
|
|
$
|
120,533
|
|
Less: imputed interest
|
|
(12,626
|
)
|
|
Present value of lease receivables
|
|
$
|
107,907
|
|
|
|
||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Loan commitments
|
|
$
|
5,349,316
|
|
|
$
|
5,147,821
|
|
Commercial letters of credit and SBLCs
|
|
$
|
1,806,083
|
|
|
$
|
1,796,647
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Maximum Potential
Future Payments |
|
Carrying Value
|
||||||||||||
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|||||||||
Single-family residential loans sold or securitized with recourse
|
|
$
|
15,571
|
|
|
$
|
16,700
|
|
|
$
|
15,571
|
|
|
$
|
16,700
|
|
Multifamily residential loans sold or securitized with recourse
|
|
17,019
|
|
|
17,058
|
|
|
61,619
|
|
|
69,974
|
|
||||
Total
|
|
$
|
32,590
|
|
|
$
|
33,758
|
|
|
$
|
77,190
|
|
|
$
|
86,674
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
5,233
|
|
|
$
|
3,274
|
|
|
$
|
16
|
|
|
$
|
8,523
|
|
Card income
|
|
933
|
|
|
185
|
|
|
—
|
|
|
1,118
|
|
||||
Wealth management fees
|
|
3,706
|
|
|
106
|
|
|
—
|
|
|
3,812
|
|
||||
Total revenue from contracts with customers
|
|
$
|
9,872
|
|
|
$
|
3,565
|
|
|
$
|
16
|
|
|
$
|
13,453
|
|
Other sources of noninterest income
(1)
|
|
3,900
|
|
|
20,979
|
|
|
3,799
|
|
|
28,678
|
|
||||
Total noninterest income
|
|
$
|
13,772
|
|
|
$
|
24,544
|
|
|
$
|
3,815
|
|
|
$
|
42,131
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
6,014
|
|
|
$
|
3,014
|
|
|
$
|
158
|
|
|
$
|
9,186
|
|
Card income
|
|
1,070
|
|
|
174
|
|
|
—
|
|
|
1,244
|
|
||||
Wealth management fees
|
|
2,796
|
|
|
157
|
|
|
—
|
|
|
2,953
|
|
||||
Total revenue from contracts with customers
|
|
$
|
9,880
|
|
|
$
|
3,345
|
|
|
$
|
158
|
|
|
$
|
13,383
|
|
Other sources of noninterest income
(1)
|
|
34,568
|
|
|
24,093
|
|
|
2,400
|
|
|
61,061
|
|
||||
Total noninterest income
|
|
$
|
44,448
|
|
|
$
|
27,438
|
|
|
$
|
2,558
|
|
|
$
|
74,444
|
|
|
(1)
|
Primarily represents revenue from contracts with customers that are out of the scope of ASC 606,
Revenue from Contracts with Customers
.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Stock compensation costs
|
|
$
|
7,444
|
|
|
$
|
6,158
|
|
Related net tax benefits for stock compensation plans
|
|
$
|
4,707
|
|
|
$
|
4,778
|
|
|
|
||||||||||||||
|
|
Three Months Ended March 31, 2019
|
||||||||||||
|
Time-Based RSUs
|
|
Performance-Based RSUs
|
|||||||||||
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|||||||
Outstanding, at beginning of period
|
|
1,121,391
|
|
|
$
|
51.22
|
|
|
411,290
|
|
|
$
|
49.93
|
|
Granted
|
|
475,833
|
|
|
52.75
|
|
|
134,600
|
|
|
54.64
|
|
||
Vested
|
|
(350,755
|
)
|
|
31.38
|
|
|
(159,407
|
)
|
|
29.18
|
|
||
Forfeited
|
|
(10,168
|
)
|
|
56.23
|
|
|
—
|
|
|
—
|
|
||
Outstanding, at end of period
|
|
1,236,301
|
|
|
$
|
57.40
|
|
|
386,483
|
|
|
$
|
60.13
|
|
|
|
|||
|
|
Three Months Ended
March 31, 2019 |
|
|
Shares
|
||
Outstanding, at beginning of period
|
|
—
|
|
Granted
|
|
12,145
|
|
Vested
|
|
—
|
|
Forfeited
|
|
—
|
|
Outstanding, at end of period
|
|
12,145
|
|
|
|
||||||||
($ and shares in thousands, except per share data)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Basic:
|
|
|
|
|
||||
Net income
|
|
$
|
164,024
|
|
|
$
|
187,032
|
|
|
|
|
|
|
||||
Basic weighted-average number of shares outstanding
|
|
145,256
|
|
|
144,664
|
|
||
Basic EPS
|
|
$
|
1.13
|
|
|
$
|
1.29
|
|
|
|
|
|
|
||||
Diluted:
|
|
|
|
|
||||
Net income
|
|
$
|
164,024
|
|
|
$
|
187,032
|
|
|
|
|
|
|
||||
Basic weighted-average number of shares outstanding
|
|
145,256
|
|
|
144,664
|
|
||
Diluted potential common shares
(1)
|
|
665
|
|
|
1,275
|
|
||
Diluted weighted-average number of shares outstanding
(1)
|
|
145,921
|
|
|
145,939
|
|
||
Diluted EPS
|
|
$
|
1.12
|
|
|
$
|
1.28
|
|
|
(1)
|
Includes dilutive shares from RSUs for the
three months ended March 31, 2019
, and from RSUs and warrants for the
three months ended March 31,
2018
.
|
|
||||||||||||
($ in thousands)
|
|
Available-
for-Sale Investment Securities |
|
Foreign
Currency Translation Adjustments (1) |
|
Total
|
||||||
BALANCE, JANUARY 1, 2018
|
|
$
|
(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) gains arising during the period
|
|
(17,311
|
)
|
|
6,798
|
|
|
(10,513
|
)
|
|||
Amounts reclassified from AOCI
|
|
(1,501
|
)
|
|
—
|
|
|
(1,501
|
)
|
|||
Changes, net of tax
|
|
(18,812
|
)
|
|
6,798
|
|
|
(12,014
|
)
|
|||
BALANCE, MARCH 31, 2018
|
|
$
|
(55,981
|
)
|
|
$
|
177
|
|
|
$
|
(55,804
|
)
|
BALANCE, JANUARY 1, 2019
|
|
$
|
(45,821
|
)
|
|
$
|
(12,353
|
)
|
|
$
|
(58,174
|
)
|
Net unrealized gains arising during the period
|
|
23,111
|
|
|
3,180
|
|
|
26,291
|
|
|||
Amounts reclassified from AOCI
|
|
(1,100
|
)
|
|
—
|
|
|
(1,100
|
)
|
|||
Changes, net of tax
|
|
22,011
|
|
|
3,180
|
|
|
25,191
|
|
|||
BALANCE, MARCH 31, 2019
|
|
$
|
(23,810
|
)
|
|
$
|
(9,173
|
)
|
|
$
|
(32,983
|
)
|
|
(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 Chinese Renminbi 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.
|
(3)
|
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
.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||||
|
Before-Tax
|
|
Tax Effect
|
|
Net-of-Tax
|
|
Before-Tax
|
|
Tax Effect
|
|
Net-of-Tax
|
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains (losses) arising during the period
|
|
$
|
30,938
|
|
|
$
|
(7,827
|
)
|
|
$
|
23,111
|
|
|
$
|
(24,577
|
)
|
|
$
|
7,266
|
|
|
$
|
(17,311
|
)
|
Net realized gains reclassified into net income
(1)
|
|
(1,561
|
)
|
|
461
|
|
|
(1,100
|
)
|
|
(2,129
|
)
|
|
628
|
|
|
(1,501
|
)
|
||||||
Net change
|
|
29,377
|
|
|
(7,366
|
)
|
|
22,011
|
|
|
(26,706
|
)
|
|
7,894
|
|
|
(18,812
|
)
|
||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains arising during the period
|
|
3,180
|
|
|
—
|
|
|
3,180
|
|
|
6,798
|
|
|
—
|
|
|
6,798
|
|
||||||
Net change
|
|
3,180
|
|
|
—
|
|
|
3,180
|
|
|
6,798
|
|
|
—
|
|
|
6,798
|
|
||||||
Other comprehensive income (loss)
|
|
$
|
32,557
|
|
|
$
|
(7,366
|
)
|
|
$
|
25,191
|
|
|
$
|
(19,908
|
)
|
|
$
|
7,894
|
|
|
$
|
(12,014
|
)
|
|
(1)
|
For the
three months ended March 31, 2019
and
2018
, pre-tax amounts were reported in
Net gains on sales of available-for-sale investment securities
on the Consolidated Statement of Income.
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking
|
|
Other
|
|
Total
|
||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
134,339
|
|
|
$
|
296,140
|
|
|
$
|
32,832
|
|
|
$
|
463,311
|
|
Charge for funds used
|
|
(77,446
|
)
|
|
(162,625
|
)
|
|
23,299
|
|
|
(216,772
|
)
|
||||
Interest spread on funds used
|
|
56,893
|
|
|
133,515
|
|
|
56,131
|
|
|
246,539
|
|
||||
Interest expense
|
|
(55,709
|
)
|
|
(23,650
|
)
|
|
(21,491
|
)
|
|
(100,850
|
)
|
||||
Credit on funds provided
|
|
165,004
|
|
|
37,375
|
|
|
14,393
|
|
|
216,772
|
|
||||
Interest spread on funds provided
|
|
109,295
|
|
|
13,725
|
|
|
(7,098
|
)
|
|
115,922
|
|
||||
Net interest income before provision for credit losses
|
|
$
|
166,188
|
|
|
$
|
147,240
|
|
|
$
|
49,033
|
|
|
$
|
362,461
|
|
Provision for credit losses
|
|
$
|
3,013
|
|
|
$
|
19,566
|
|
|
$
|
—
|
|
|
$
|
22,579
|
|
Noninterest income
|
|
$
|
13,772
|
|
|
$
|
24,544
|
|
|
$
|
3,815
|
|
|
$
|
42,131
|
|
Noninterest expense
|
|
$
|
87,906
|
|
|
$
|
70,544
|
|
|
$
|
28,472
|
|
|
$
|
186,922
|
|
Segment income before income taxes
|
|
$
|
89,041
|
|
|
$
|
81,674
|
|
|
$
|
24,376
|
|
|
$
|
195,091
|
|
Segment net income
|
|
$
|
63,655
|
|
|
$
|
58,499
|
|
|
$
|
41,870
|
|
|
$
|
164,024
|
|
As of March 31, 2019
|
|
|
|
|
|
|
|
|
|
|||||||
Segment assets
|
|
$
|
10,902,961
|
|
|
$
|
23,964,592
|
|
|
$
|
7,223,880
|
|
|
$
|
42,091,433
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
104,710
|
|
|
$
|
239,577
|
|
|
$
|
27,586
|
|
|
$
|
371,873
|
|
Charge for funds used
|
|
(49,273
|
)
|
|
(111,366
|
)
|
|
(18,327
|
)
|
|
(178,966
|
)
|
||||
Interest spread on funds used
|
|
55,437
|
|
|
128,211
|
|
|
9,259
|
|
|
192,907
|
|
||||
Interest expense
|
|
(24,940
|
)
|
|
(9,179
|
)
|
|
(11,061
|
)
|
|
(45,180
|
)
|
||||
Credit on funds provided
|
|
145,451
|
|
|
25,448
|
|
|
8,067
|
|
|
178,966
|
|
||||
Interest spread on funds provided
|
|
120,511
|
|
|
16,269
|
|
|
(2,994
|
)
|
|
133,786
|
|
||||
Net interest income before provision for credit losses
|
|
$
|
175,948
|
|
|
$
|
144,480
|
|
|
$
|
6,265
|
|
|
$
|
326,693
|
|
Provision for credit losses
|
|
$
|
3,093
|
|
|
$
|
17,125
|
|
|
$
|
—
|
|
|
$
|
20,218
|
|
Noninterest income
|
|
$
|
44,448
|
|
|
$
|
27,438
|
|
|
$
|
2,558
|
|
|
$
|
74,444
|
|
Noninterest expense
|
|
$
|
87,317
|
|
|
$
|
61,302
|
|
|
$
|
20,516
|
|
|
$
|
169,135
|
|
Segment income (loss) before income taxes
|
|
$
|
129,986
|
|
|
$
|
93,491
|
|
|
$
|
(11,693
|
)
|
|
$
|
211,784
|
|
Segment net income
|
|
$
|
93,134
|
|
|
$
|
67,029
|
|
|
$
|
26,869
|
|
|
$
|
187,032
|
|
As of March 31, 2018
|
|
|
|
|
|
|
|
|
|
|||||||
Segment assets
|
|
$
|
9,327,355
|
|
|
$
|
22,002,393
|
|
|
$
|
6,342,190
|
|
|
$
|
37,671,938
|
|
|
|
|
|
Page
|
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|
||||||||||||
($ and shares in thousands, except per share data)
|
|
Three Months Ended
|
||||||||||
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
|||||||
Summary of operations:
|
|
|
|
|
|
|
||||||
Interest and dividend income
|
|
$
|
463,311
|
|
|
$
|
457,334
|
|
|
$
|
371,873
|
|
Interest expense
|
|
100,850
|
|
|
87,918
|
|
|
45,180
|
|
|||
Net interest income before provision for credit losses
|
|
362,461
|
|
|
369,416
|
|
|
326,693
|
|
|||
Provision for credit losses
|
|
22,579
|
|
|
17,959
|
|
|
20,218
|
|
|||
Net interest income after provision for credit losses
|
|
339,882
|
|
|
351,457
|
|
|
306,475
|
|
|||
Noninterest income
(1)
|
|
42,131
|
|
|
41,695
|
|
|
74,444
|
|
|||
Noninterest expense
|
|
186,922
|
|
|
188,097
|
|
|
169,135
|
|
|||
Income before income taxes
|
|
195,091
|
|
|
205,055
|
|
|
211,784
|
|
|||
Income tax expense
|
|
31,067
|
|
|
32,037
|
|
|
24,752
|
|
|||
Net income
|
|
$
|
164,024
|
|
|
$
|
173,018
|
|
|
$
|
187,032
|
|
Per common share:
|
|
|
|
|
|
|
||||||
Basic earnings
|
|
$
|
1.13
|
|
|
$
|
1.19
|
|
|
$
|
1.29
|
|
Diluted earnings
|
|
$
|
1.12
|
|
|
$
|
1.18
|
|
|
$
|
1.28
|
|
Dividends declared
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.20
|
|
Book value
|
|
$
|
31.56
|
|
|
$
|
30.52
|
|
|
$
|
27.46
|
|
Weighted-average number of shares outstanding:
|
|
|
|
|
|
|
||||||
Basic
|
|
145,256
|
|
|
144,960
|
|
|
144,664
|
|
|||
Diluted
|
|
145,921
|
|
|
146,133
|
|
|
145,939
|
|
|||
Common shares outstanding at period-end
|
|
145,501
|
|
|
144,961
|
|
|
144,873
|
|
|||
At period end:
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
42,091,433
|
|
|
$
|
41,042,356
|
|
|
$
|
37,671,938
|
|
Total loans
|
|
$
|
32,863,286
|
|
|
$
|
32,385,464
|
|
|
$
|
29,601,429
|
|
Available-for-sale investment securities
|
|
$
|
2,640,158
|
|
|
$
|
2,741,847
|
|
|
$
|
2,811,416
|
|
Total deposits
|
|
$
|
36,273,972
|
|
|
$
|
35,439,628
|
|
|
$
|
32,608,777
|
|
Long-term debt and finance lease liabilities
|
|
$
|
152,433
|
|
|
$
|
146,835
|
|
|
$
|
166,640
|
|
Federal Home Loan Bank (“FHLB”) advances
|
|
$
|
344,657
|
|
|
$
|
326,172
|
|
|
$
|
324,451
|
|
Stockholders’ equity
|
|
$
|
4,591,930
|
|
|
$
|
4,423,974
|
|
|
$
|
3,978,755
|
|
Performance metrics:
|
|
|
|
|
|
|
||||||
Return on average assets (“ROA”)
|
|
1.63
|
%
|
|
1.69
|
%
|
|
2.03
|
%
|
|||
Return on average equity (“ROE”)
|
|
14.66
|
%
|
|
15.83
|
%
|
|
19.34
|
%
|
|||
Net interest margin
|
|
3.79
|
%
|
|
3.79
|
%
|
|
3.73
|
%
|
|||
Efficiency ratio
|
|
46.20
|
%
|
|
45.75
|
%
|
|
42.16
|
%
|
|||
Credit quality metrics:
|
|
|
|
|
|
|
||||||
Allowance for loan losses
|
|
$
|
317,894
|
|
|
$
|
311,322
|
|
|
$
|
297,654
|
|
Allowance for loan losses to loans held-for-investment
(2)
|
|
0.97
|
%
|
|
0.96
|
%
|
|
1.01
|
%
|
|||
Non-purchased credit-impaired (“PCI”) nonperforming assets to total assets
(2)
|
|
0.33
|
%
|
|
0.23
|
%
|
|
0.35
|
%
|
|||
Annualized quarterly net charge-offs to average loans held-for-investment
|
|
0.18
|
%
|
|
0.20
|
%
|
|
0.14
|
%
|
|||
Selected metrics:
|
|
|
|
|
|
|
||||||
Total average equity to total average assets
|
|
11.14
|
%
|
|
10.70
|
%
|
|
10.49
|
%
|
|||
Common dividend payout ratio
|
|
20.59
|
%
|
|
19.47
|
%
|
|
15.65
|
%
|
|||
Loan-to-deposit ratio
|
|
90.60
|
%
|
|
91.38
|
%
|
|
90.78
|
%
|
|||
Capital ratios of EWBC:
|
|
|
|
|
|
|
||||||
Total capital
|
|
13.9
|
%
|
|
13.7
|
%
|
|
13.4
|
%
|
|||
Tier 1 capital
|
|
12.4
|
%
|
|
12.2
|
%
|
|
11.9
|
%
|
|||
Common Equity Tier 1 (“CET1”) capital
|
|
12.4
|
%
|
|
12.2
|
%
|
|
11.9
|
%
|
|||
Tier 1 leverage capital
|
|
10.2
|
%
|
|
9.9
|
%
|
|
9.6
|
%
|
|||
|
(1)
|
Includes $31.5 million of pretax gain recognized from the sale of the Desert Community Bank (“DCB”) branches during the first quarter of 2018.
|
(2)
|
Total assets and loans held-for-investment include PCI loans of $290.3 million, $308.0 million and $452.4 million as of March 31, 2019, December 31, 2018 and March 31, 2018, respectively.
|
•
|
Earnings:
First quarter
2019
net income of
$164.0 million
and diluted earnings per share (“EPS”) of
$1.12
both decreased 12%, compared to first quarter
2018
net income of
$187.0 million
and diluted EPS of
$1.28
.
|
•
|
Adjusted Earnings:
Excluding the impacts of the after-tax impairment charge related to certain tax credit investments recorded during the first quarter of
2019
and after-tax gain on the sale of the DCB branches recognized in the first quarter of
2018
, non-United States generally accepted accounting principles (“GAAP”) first quarter
2019
net income was
$168.9 million
, an increase of
$4.1 million
or
2%
from
$164.9 million
for the same period in
2018
. Non-GAAP first quarter
2019
diluted EPS was
$1.16
, an increase of
$0.03
or
3%
from
$1.13
for the same period in
2018
. (See reconciliations of non-GAAP measures presented below under
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures
in this Form 10-Q.)
|
•
|
Net Interest Income Growth and Net Interest Margin Expansion:
First quarter
2019
net interest income was
$362.5 million
, an
increase
of
$35.8 million
or
11%
year-over-year.
First quarter
2019
net interest margin of
3.79%
expanded by
six
basis points, compared to first quarter
2018
net interest margin of
3.73%
. Net interest income growth primarily reflected loan yield expansion and loan growth, partially offset by an increase in the cost of funds.
|
•
|
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
46.20%
for the first quarter of
2019
, compared to
42.16%
for the same period in
2018
. Our non-GAAP adjusted efficiency ratio for the first quarter
2019
was
39.75%
, an 89 basis point improvement over the same prior year period non-GAAP adjusted efficiency ratio of
40.64%
. (See reconciliations of non-GAAP measures presented below under
Item 2 — MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures
in this Form 10-Q.)
|
•
|
Tax:
First quarter
2019
effective tax rate was
15.9%
, resulting in tax expense of
$31.1 million
, compared to an effective tax rate of
11.7%
and tax expense of
$24.8 million
during the first quarter of
2018
.
|
•
|
ROA and ROE:
ROA and ROE were
1.63%
and
14.66%
, respectively, during the first quarter of
2019
, while ROA and ROE were 2.03% and 19.34%, respectively during the first quarter of 2018. Excluding the impacts of the after-tax impairment charge related to certain tax credit investments recorded during the first quarter of
2019
and after-tax gain on the sale of the DCB branches recognized in the first quarter of
2018
, non-GAAP first quarter
2019
ROA and ROE were 1.68% and 15.10%, compared to non-GAAP first quarter 2018 ROA and ROE of 1.79% and 17.04%, respectively. (See reconciliations of non-GAAP measures presented below under
Item 2 — MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures
in this Form 10-Q.)
|
•
|
Loans:
Total loans were
$32.86 billion
as of
March 31, 2019
, an increase of
$477.8 million
or
1%
from
$32.39 billion
as of
December 31, 2018
. The largest increase in loans was in single-family residential loans, followed by commercial real estate (“CRE”), and construction and land loans.
|
•
|
Deposits:
Total deposits were
$36.27 billion
as of
March 31, 2019
, an increase of
$834.3 million
or
2%
from
$35.44 billion
as of
December 31, 2018
. The sequential growth was largely from increases in interest-bearing checking accounts and time deposits, partially offset by a decline in noninterest-bearing demand deposits.
|
•
|
Asset Quality Metrics:
The allowance for loan losses was
$317.9 million
or
0.97%
of loans held-for-investment as of
March 31, 2019
, compared to
$311.3 million
or
0.96%
of loans held-for-investment as of
December 31, 2018
.
Annualized quarterly net charge-offs were
0.18%
and 0.20% of average loans held-for-investment for the first quarter of
2019
and fourth quarter of
2018
, respectively. Non-PCI nonperforming assets increased
$45.0 million
or
48%
to
$138.0 million
or
0.33%
of total assets as of
March 31, 2019
from
$93.0 million
or
0.23%
of total assets as of
December 31, 2018
.
|
•
|
Capital Levels:
Our capital levels were strong in 2019. As of
March 31, 2019
, stockholders’ equity of $4.59 billion increased
$168.0 million
or
4%
, compared to
$4.42 billion
as of
December 31, 2018
. We returned
$33.8 million
and
$29.3 million
in cash dividends to our stockholders during the first quarter of
2019
and
2018
, respectively. The CET1 capital ratio was
12.4%
as of
March 31, 2019
, compared to
12.2%
as of
December 31, 2018
. The total risk-based capital ratio was
13.9%
and
13.7%
as of
March 31, 2019
and
December 31, 2018
, respectively. All of our regulatory capital ratios were well above required well-capitalized levels. See
Item 2 — MD&A — Balance Sheet Analysis — Regulatory Capital and Ratios
in this Form 10-Q for more information regarding our capital.
|
•
|
Cash Dividend Increase:
Our quarterly common stock dividend for the first quarter of 2019 was
$0.23
per share, an increase of
$0.03
or
15%
, compared to
$0.20
per share for the same period in
2018
. We have further increased our dividend by $0.045 per share or 20% to $0.275 per share in the second quarter of
2019
, which will be payable on May 15, 2019.
|
|
||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
(1)
|
|
Average
Balance |
|
Interest
|
|
Average
Yield/
Rate
(1)
|
|||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
2,578,686
|
|
|
$
|
15,470
|
|
|
2.43
|
%
|
|
$
|
2,323,771
|
|
|
$
|
10,945
|
|
|
1.91
|
%
|
Resale agreements
(2)
|
|
1,035,000
|
|
|
7,846
|
|
|
3.07
|
%
|
|
1,050,000
|
|
|
6,934
|
|
|
2.68
|
%
|
||||
Available-for-sale investment securities
(3)(4)
|
|
2,642,299
|
|
|
15,748
|
|
|
2.42
|
%
|
|
2,854,335
|
|
|
15,456
|
|
|
2.20
|
%
|
||||
Loans
(5)(6)
|
|
32,414,785
|
|
|
423,534
|
|
|
5.30
|
%
|
|
29,211,906
|
|
|
337,904
|
|
|
4.69
|
%
|
||||
Restricted equity securities
|
|
74,234
|
|
|
713
|
|
|
3.90
|
%
|
|
73,651
|
|
|
634
|
|
|
3.49
|
%
|
||||
Total interest-earning assets
|
|
$
|
38,745,004
|
|
|
$
|
463,311
|
|
|
4.85
|
%
|
|
$
|
35,513,663
|
|
|
$
|
371,873
|
|
|
4.25
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
468,159
|
|
|
|
|
|
|
443,357
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(314,446
|
)
|
|
|
|
|
|
(285,836
|
)
|
|
|
|
|
||||||||
Other assets
|
|
1,839,687
|
|
|
|
|
|
|
1,709,914
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
40,738,404
|
|
|
|
|
|
|
$
|
37,381,098
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Checking deposits
|
|
$
|
5,270,855
|
|
|
$
|
14,255
|
|
|
1.10
|
%
|
|
$
|
4,559,695
|
|
(7)
|
$
|
6,727
|
|
|
0.60
|
%
|
Money market deposits
|
|
8,080,848
|
|
|
30,234
|
|
|
1.52
|
%
|
|
8,273,160
|
|
(7)
|
15,840
|
|
|
0.78
|
%
|
||||
Savings deposits
|
|
2,091,406
|
|
|
2,227
|
|
|
0.43
|
%
|
|
2,452,452
|
|
(7)
|
2,021
|
|
|
0.33
|
%
|
||||
Time deposits
|
|
9,408,897
|
|
|
45,289
|
|
|
1.95
|
%
|
|
5,716,638
|
|
(7)
|
14,548
|
|
|
1.03
|
%
|
||||
Federal funds purchased and other short-term borrowings
|
|
60,442
|
|
|
616
|
|
|
4.13
|
%
|
|
871
|
|
|
7
|
|
|
3.26
|
%
|
||||
FHLB advances
|
|
338,027
|
|
|
2,979
|
|
|
3.57
|
%
|
|
334,121
|
|
|
2,260
|
|
|
2.74
|
%
|
||||
Repurchase agreements
(2)
|
|
50,000
|
|
|
3,492
|
|
|
28.32
|
%
|
|
50,000
|
|
|
2,306
|
|
|
18.70
|
%
|
||||
Long-term debt and finance lease liabilities
|
|
152,360
|
|
|
1,758
|
|
|
4.68
|
%
|
|
166,658
|
|
|
1,471
|
|
|
3.58
|
%
|
||||
Total interest-bearing liabilities
|
|
$
|
25,452,835
|
|
|
$
|
100,850
|
|
|
1.61
|
%
|
|
$
|
21,553,595
|
|
|
$
|
45,180
|
|
|
0.85
|
%
|
Noninterest-bearing liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand deposits
|
|
10,071,370
|
|
|
|
|
|
|
11,289,512
|
|
(7)
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
|
676,898
|
|
|
|
|
|
|
615,065
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
4,537,301
|
|
|
|
|
|
|
3,922,926
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
40,738,404
|
|
|
|
|
|
|
$
|
37,381,098
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.24
|
%
|
|
|
|
|
|
3.40
|
%
|
||||||||
Net interest income and net interest margin
|
|
|
|
$
|
362,461
|
|
|
3.79
|
%
|
|
|
|
$
|
326,693
|
|
|
3.73
|
%
|
||||
|
(1)
|
Annualized.
|
(2)
|
Average balances of resale and repurchase agreements have been reported net, pursuant to Accounting Standards Codification (“ASC”) 210-20-45-11,
Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements
. The weighted-average yields of gross resale agreements were
2.80%
and
2.52%
for the first quarter of
2019
and
2018
, respectively. The weighted-average interest rates of gross repurchase agreements were
5.01%
and
3.95%
for the first quarter of
2019
and
2018
, respectively.
|
(3)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
(4)
|
Includes the amortization of premiums on investment securities of
$3.0 million
and
$4.9 million
for the first quarter of
2019
and
2018
, respectively.
|
(5)
|
Average balances include nonperforming loans and loans held-for-sale.
|
(6)
|
Includes the accretion of net deferred loan fees, unearned fees and ASC 310-30 discounts, and amortization of premiums, which totaled
$8.0 million
and
$8.2 million
for the first quarter of
2019
and
2018
, respectively.
|
(7)
|
Average balance of deposits includes average deposits held-for-sale for the first quarter of
2018
.
|
|
||||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||||||
|
2019 vs. 2018
|
|||||||||||
|
Total
Change
|
|
Changes Due to
|
|||||||||
|
|
Volume
|
|
Yield/Rate
|
||||||||
Interest-earning assets:
|
|
|
|
|
|
|
||||||
Interest-bearing cash and deposits with banks
|
|
$
|
4,525
|
|
|
$
|
1,295
|
|
|
$
|
3,230
|
|
Resale agreements
|
|
912
|
|
|
(100
|
)
|
|
1,012
|
|
|||
Available-for-sale investment securities
|
|
292
|
|
|
(1,197
|
)
|
|
1,489
|
|
|||
Loans
|
|
85,630
|
|
|
39,249
|
|
|
46,381
|
|
|||
Restricted equity securities
|
|
79
|
|
|
5
|
|
|
74
|
|
|||
Total interest and dividend income
|
|
$
|
91,438
|
|
|
$
|
39,252
|
|
|
$
|
52,186
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
||||||
Checking deposits
|
|
$
|
7,528
|
|
|
$
|
1,187
|
|
|
$
|
6,341
|
|
Money market deposits
|
|
14,394
|
|
|
(377
|
)
|
|
14,771
|
|
|||
Savings deposits
|
|
206
|
|
|
(327
|
)
|
|
533
|
|
|||
Time deposits
|
|
30,741
|
|
|
12,915
|
|
|
17,826
|
|
|||
Federal funds purchased and other short-term borrowings
|
|
609
|
|
|
607
|
|
|
2
|
|
|||
FHLB advances
|
|
719
|
|
|
27
|
|
|
692
|
|
|||
Repurchase agreements
|
|
1,186
|
|
|
—
|
|
|
1,186
|
|
|||
Long-term debt and finance lease liabilities
|
|
287
|
|
|
(135
|
)
|
|
422
|
|
|||
Total interest expense
|
|
$
|
55,670
|
|
|
$
|
13,897
|
|
|
$
|
41,773
|
|
Change in net interest income
|
|
$
|
35,768
|
|
|
$
|
25,355
|
|
|
$
|
10,413
|
|
|
|
|||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
% Change
|
||||||
Lending fees
|
|
$
|
14,796
|
|
|
$
|
14,012
|
|
|
6
|
%
|
Deposit account fees
|
|
9,641
|
|
|
10,430
|
|
|
(8
|
)%
|
||
Foreign exchange income
|
|
5,015
|
|
|
1,171
|
|
|
328
|
%
|
||
Wealth management fees
|
|
3,812
|
|
|
2,953
|
|
|
29
|
%
|
||
Interest rate contracts and other derivative income
|
|
3,216
|
|
|
6,690
|
|
|
(52
|
)%
|
||
Net gains on sales of loans
|
|
915
|
|
|
1,582
|
|
|
(42
|
)%
|
||
Net gains on sales of available-for-sale investment securities
|
|
1,561
|
|
|
2,129
|
|
|
(27
|
)%
|
||
Net gain on sale of business
|
|
—
|
|
|
31,470
|
|
|
(100
|
)%
|
||
Other income
|
|
3,175
|
|
|
4,007
|
|
|
(21
|
)%
|
||
Total noninterest income
|
|
$
|
42,131
|
|
|
$
|
74,444
|
|
|
(43
|
)%
|
|
|
|||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
% Change
|
||||||
Compensation and employee benefits
|
|
$
|
102,299
|
|
|
$
|
95,234
|
|
|
7
|
%
|
Occupancy and equipment expense
|
|
17,318
|
|
|
16,880
|
|
|
3
|
%
|
||
Deposit insurance premiums and regulatory assessments
|
|
3,088
|
|
|
6,273
|
|
|
(51
|
)%
|
||
Legal expense
|
|
2,225
|
|
|
2,255
|
|
|
(1
|
)%
|
||
Data processing
|
|
3,157
|
|
|
3,401
|
|
|
(7
|
)%
|
||
Consulting expense
|
|
2,059
|
|
|
2,352
|
|
|
(12
|
)%
|
||
Deposit related expense
|
|
3,504
|
|
|
2,679
|
|
|
31
|
%
|
||
Computer software expense
|
|
6,078
|
|
|
5,054
|
|
|
20
|
%
|
||
Other operating expense
|
|
22,289
|
|
|
17,607
|
|
|
27
|
%
|
||
Amortization of tax credit and other investments
|
|
24,905
|
|
|
17,400
|
|
|
43
|
%
|
||
Total noninterest expense
|
|
$
|
186,922
|
|
|
$
|
169,135
|
|
|
11
|
%
|
|
|
|||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
% Change
|
||||||
Income before income taxes
|
|
$
|
195,091
|
|
|
$
|
211,784
|
|
|
(8
|
)%
|
Income tax expense
|
|
$
|
31,067
|
|
|
$
|
24,752
|
|
|
26
|
%
|
Effective tax rate
|
|
15.9
|
%
|
|
11.7
|
%
|
|
4
|
%
|
||
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income
|
|
$
|
166,188
|
|
|
$
|
147,240
|
|
|
$
|
49,033
|
|
|
$
|
362,461
|
|
Noninterest income
|
|
$
|
13,772
|
|
|
$
|
24,544
|
|
|
$
|
3,815
|
|
|
$
|
42,131
|
|
Noninterest expense
|
|
$
|
87,906
|
|
|
$
|
70,544
|
|
|
$
|
28,472
|
|
|
$
|
186,922
|
|
Segment income before income taxes
|
|
$
|
89,041
|
|
|
$
|
81,674
|
|
|
$
|
24,376
|
|
|
$
|
195,091
|
|
Segment net income
|
|
$
|
63,655
|
|
|
$
|
58,499
|
|
|
$
|
41,870
|
|
|
$
|
164,024
|
|
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income
|
|
$
|
175,948
|
|
|
$
|
144,480
|
|
|
$
|
6,265
|
|
|
$
|
326,693
|
|
Noninterest income
|
|
$
|
44,448
|
|
|
$
|
27,438
|
|
|
$
|
2,558
|
|
|
$
|
74,444
|
|
Noninterest expense
|
|
$
|
87,317
|
|
|
$
|
61,302
|
|
|
$
|
20,516
|
|
|
$
|
169,135
|
|
Segment income (loss) before income taxes
|
|
$
|
129,986
|
|
|
$
|
93,491
|
|
|
$
|
(11,693
|
)
|
|
$
|
211,784
|
|
Segment net income
|
|
$
|
93,134
|
|
|
$
|
67,029
|
|
|
$
|
26,869
|
|
|
$
|
187,032
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
|
|
|
|
Change
|
|||||||||
|
March 31, 2019
|
|
December 31, 2018
|
|
$
|
|
%
|
||||||||
|
|
(Unaudited)
|
|
|
|
|
|
|
|||||||
ASSETS
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
|
$
|
3,785,325
|
|
|
$
|
3,001,377
|
|
|
$
|
783,948
|
|
|
26
|
%
|
Interest-bearing deposits with banks
|
|
134,000
|
|
|
371,000
|
|
|
(237,000
|
)
|
|
(64
|
)%
|
|||
Resale agreements
|
|
1,035,000
|
|
|
1,035,000
|
|
|
—
|
|
|
—
|
%
|
|||
Available-for-sale investment securities, at fair value
|
|
2,640,158
|
|
|
2,741,847
|
|
|
(101,689
|
)
|
|
(4
|
)%
|
|||
Restricted equity securities, at cost
|
|
74,736
|
|
|
74,069
|
|
|
667
|
|
|
1
|
%
|
|||
Loans held-for-sale
|
|
—
|
|
|
275
|
|
|
(275
|
)
|
|
(100
|
)%
|
|||
Loans held-for-investment (net of allowance for loan losses of $317,894 in 2019 and $311,322 in 2018)
|
|
32,545,392
|
|
|
32,073,867
|
|
|
471,525
|
|
|
1
|
%
|
|||
Investments in qualified affordable housing partnerships, net
|
|
197,470
|
|
|
184,873
|
|
|
12,597
|
|
|
7
|
%
|
|||
Investments in tax credit and other investments, net
|
|
217,445
|
|
|
231,635
|
|
|
(14,190
|
)
|
|
(6
|
)%
|
|||
Premises and equipment
|
|
124,300
|
|
|
119,180
|
|
|
5,120
|
|
|
4
|
%
|
|||
Goodwill
|
|
465,697
|
|
|
465,547
|
|
|
150
|
|
|
0
|
%
|
|||
Operating lease right-of-use assets
|
|
104,289
|
|
|
—
|
|
|
104,289
|
|
|
100
|
%
|
|||
Other assets
|
|
767,621
|
|
|
743,686
|
|
|
23,935
|
|
|
3
|
%
|
|||
TOTAL
|
|
$
|
42,091,433
|
|
|
$
|
41,042,356
|
|
|
$
|
1,049,077
|
|
|
3
|
%
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing
|
|
$
|
10,011,533
|
|
|
$
|
11,377,009
|
|
|
$
|
(1,365,476
|
)
|
|
(12
|
)%
|
Interest-bearing
|
|
26,262,439
|
|
|
24,062,619
|
|
|
2,199,820
|
|
|
9
|
%
|
|||
Total deposits
|
|
36,273,972
|
|
|
35,439,628
|
|
|
834,344
|
|
|
2
|
%
|
|||
Short-term borrowings
|
|
39,550
|
|
|
57,638
|
|
|
(18,088
|
)
|
|
(31
|
)%
|
|||
FHLB advances
|
|
344,657
|
|
|
326,172
|
|
|
18,485
|
|
|
6
|
%
|
|||
Repurchase agreements
|
|
50,000
|
|
|
50,000
|
|
|
—
|
|
|
—
|
%
|
|||
Long-term debt and finance lease liabilities
|
|
152,433
|
|
|
146,835
|
|
|
5,598
|
|
|
4
|
%
|
|||
Operating lease liabilities
|
|
112,843
|
|
|
—
|
|
|
112,843
|
|
|
100
|
%
|
|||
Accrued expenses and other liabilities
|
|
526,048
|
|
|
598,109
|
|
|
(72,061
|
)
|
|
(12
|
)%
|
|||
Total liabilities
|
|
37,499,503
|
|
|
36,618,382
|
|
|
881,121
|
|
|
2
|
%
|
|||
STOCKHOLDERS’ EQUITY
|
|
4,591,930
|
|
|
4,423,974
|
|
|
167,956
|
|
|
4
|
%
|
|||
TOTAL
|
|
$
|
42,091,433
|
|
|
$
|
41,042,356
|
|
|
$
|
1,049,077
|
|
|
3
|
%
|
|
•
|
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)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
528,983
|
|
|
$
|
520,440
|
|
|
$
|
577,561
|
|
|
$
|
564,815
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
183,145
|
|
|
182,536
|
|
|
219,485
|
|
|
217,173
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
1,323,561
|
|
|
1,313,116
|
|
|
1,377,705
|
|
|
1,355,296
|
|
||||
Municipal securities
|
|
76,003
|
|
|
76,004
|
|
|
82,965
|
|
|
82,020
|
|
||||
Non-agency mortgage-backed securities
|
|
50,941
|
|
|
51,754
|
|
|
35,935
|
|
|
35,983
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
11,094
|
|
|
11,250
|
|
|
10,869
|
|
||||
Foreign bonds
|
|
489,324
|
|
|
472,669
|
|
|
489,378
|
|
|
463,048
|
|
||||
Asset-backed securities
|
|
12,627
|
|
|
12,545
|
|
|
12,621
|
|
|
12,643
|
|
||||
Total available-for-sale investment securities
|
|
$
|
2,675,834
|
|
|
$
|
2,640,158
|
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
|
||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
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
|
|
$
|
50,067
|
|
|
$
|
49,889
|
|
|
1.08
|
%
|
|
$
|
50,134
|
|
|
$
|
49,773
|
|
|
1.08
|
%
|
Maturing after one year through five years
|
|
478,916
|
|
|
470,551
|
|
|
1.60
|
%
|
|
527,427
|
|
|
515,042
|
|
|
1.69
|
%
|
||||
Total
|
|
528,983
|
|
|
520,440
|
|
|
1.55
|
%
|
|
577,561
|
|
|
564,815
|
|
|
1.64
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
26,955
|
|
|
26,909
|
|
|
3.51
|
%
|
||||
Maturing after one year through five years
|
|
7,492
|
|
|
7,435
|
|
|
2.19
|
%
|
|
10,181
|
|
|
10,037
|
|
|
2.18
|
%
|
||||
Maturing after five years through ten years
|
|
109,714
|
|
|
109,129
|
|
|
2.30
|
%
|
|
114,771
|
|
|
113,812
|
|
|
2.30
|
%
|
||||
Maturing after ten years
|
|
65,939
|
|
|
65,972
|
|
|
2.81
|
%
|
|
67,578
|
|
|
66,415
|
|
|
2.79
|
%
|
||||
Total
|
|
183,145
|
|
|
182,536
|
|
|
2.48
|
%
|
|
219,485
|
|
|
217,173
|
|
|
2.59
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
2,616
|
|
|
2,595
|
|
|
1.62
|
%
|
|
2,633
|
|
|
2,600
|
|
|
1.62
|
%
|
||||
Maturing after one year through five years
|
|
30,809
|
|
|
30,734
|
|
|
2.02
|
%
|
|
30,808
|
|
|
30,487
|
|
|
2.11
|
%
|
||||
Maturing after five years through ten years
|
|
92,133
|
|
|
92,492
|
|
|
2.70
|
%
|
|
96,822
|
|
|
95,365
|
|
|
2.68
|
%
|
||||
Maturing after ten years
|
|
1,198,003
|
|
|
1,187,295
|
|
|
2.68
|
%
|
|
1,247,442
|
|
|
1,226,844
|
|
|
2.74
|
%
|
||||
Total
|
|
1,323,561
|
|
|
1,313,116
|
|
|
2.66
|
%
|
|
1,377,705
|
|
|
1,355,296
|
|
|
2.72
|
%
|
||||
Municipal securities
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
30,137
|
|
|
30,175
|
|
|
2.71
|
%
|
|
29,167
|
|
|
28,974
|
|
|
2.60
|
%
|
||||
Maturing after one year through five years
|
|
40,466
|
|
|
40,437
|
|
|
2.30
|
%
|
|
48,398
|
|
|
47,681
|
|
|
2.39
|
%
|
||||
Maturing after five years through ten years
|
|
500
|
|
|
497
|
|
|
2.38
|
%
|
|
500
|
|
|
476
|
|
|
2.38
|
%
|
||||
Maturing after ten years
|
|
4,900
|
|
|
4,895
|
|
|
5.03
|
%
|
|
4,900
|
|
|
4,889
|
|
|
5.03
|
%
|
||||
Total
|
|
76,003
|
|
|
76,004
|
|
|
2.64
|
%
|
|
82,965
|
|
|
82,020
|
|
|
2.62
|
%
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after one year through five years
|
|
7,920
|
|
|
7,925
|
|
|
4.55
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Maturing after ten years
|
|
43,021
|
|
|
43,829
|
|
|
3.71
|
%
|
|
35,935
|
|
|
35,983
|
|
|
3.67
|
%
|
||||
Total
|
|
50,941
|
|
|
51,754
|
|
|
3.84
|
%
|
|
35,935
|
|
|
35,983
|
|
|
3.67
|
%
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
1,250
|
|
|
1,256
|
|
|
5.90
|
%
|
|
1,250
|
|
|
1,231
|
|
|
5.50
|
%
|
||||
Maturing after one year through five years
|
|
10,000
|
|
|
9,838
|
|
|
4.00
|
%
|
|
10,000
|
|
|
9,638
|
|
|
4.00
|
%
|
||||
Total
|
|
11,250
|
|
|
11,094
|
|
|
4.21
|
%
|
|
11,250
|
|
|
10,869
|
|
|
4.17
|
%
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
479,324
|
|
|
462,726
|
|
|
2.25
|
%
|
|
439,378
|
|
|
414,065
|
|
|
2.19
|
%
|
||||
Maturing after one year through five years
|
|
10,000
|
|
|
9,943
|
|
|
4.30
|
%
|
|
50,000
|
|
|
48,983
|
|
|
3.12
|
%
|
||||
Total
|
|
489,324
|
|
|
472,669
|
|
|
2.29
|
%
|
|
489,378
|
|
|
463,048
|
|
|
2.28
|
%
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
12,627
|
|
|
12,545
|
|
|
3.00
|
%
|
|
12,621
|
|
|
12,643
|
|
|
3.22
|
%
|
||||
Total available-for-sale investment securities
|
|
$
|
2,675,834
|
|
|
$
|
2,640,158
|
|
|
2.39
|
%
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
2.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
563,394
|
|
|
546,641
|
|
|
2.18
|
%
|
|
549,517
|
|
|
523,552
|
|
|
2.18
|
%
|
||||
Maturing after one year through five years
|
|
585,603
|
|
|
576,863
|
|
|
1.80
|
%
|
|
676,814
|
|
|
661,868
|
|
|
1.91
|
%
|
||||
Maturing after five years through ten years
|
|
202,347
|
|
|
202,118
|
|
|
2.48
|
%
|
|
212,093
|
|
|
209,653
|
|
|
2.47
|
%
|
||||
Maturing after ten years
|
|
1,324,490
|
|
|
1,314,536
|
|
|
2.73
|
%
|
|
1,368,476
|
|
|
1,346,774
|
|
|
2.78
|
%
|
||||
Total available-for-sale investment securities
|
|
$
|
2,675,834
|
|
|
$
|
2,640,158
|
|
|
2.39
|
%
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
2.43
|
%
|
|
(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)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
(1)
|
|
%
|
|
Amount
(1)
|
|
%
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
12,040,806
|
|
|
37
|
%
|
|
$
|
12,056,970
|
|
|
37
|
%
|
CRE
|
|
9,636,338
|
|
|
29
|
%
|
|
9,449,835
|
|
|
29
|
%
|
||
Multifamily residential
|
|
2,270,590
|
|
|
7
|
%
|
|
2,281,032
|
|
|
7
|
%
|
||
Construction and land
|
|
647,380
|
|
|
2
|
%
|
|
538,794
|
|
|
2
|
%
|
||
Total commercial
|
|
24,595,114
|
|
|
75
|
%
|
|
24,326,631
|
|
|
75
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
6,309,331
|
|
|
19
|
%
|
|
6,036,454
|
|
|
19
|
%
|
||
HELOCs
|
|
1,626,222
|
|
|
5
|
%
|
|
1,690,834
|
|
|
5
|
%
|
||
Other consumer
|
|
332,619
|
|
|
1
|
%
|
|
331,270
|
|
|
1
|
%
|
||
Total consumer
|
|
8,268,172
|
|
|
25
|
%
|
|
8,058,558
|
|
|
25
|
%
|
||
Total loans held-for-investment
(2)
|
|
$
|
32,863,286
|
|
|
100
|
%
|
|
$
|
32,385,189
|
|
|
100
|
%
|
Allowance for loan losses
|
|
(317,894
|
)
|
|
|
|
(311,322
|
)
|
|
|
||||
Loans held-for-sale
|
|
—
|
|
|
|
|
275
|
|
|
|
||||
Total loans, net
|
|
$
|
32,545,392
|
|
|
|
|
$
|
32,074,142
|
|
|
|
||
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of
$(46.0) million
and
$(48.9) million
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
(2)
|
Includes ASC 310-30 discount of
$20.4 million
and
$22.2 million
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total
|
|
%
|
|||||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Southern California
|
|
$
|
5,266,744
|
|
|
|
|
$
|
1,373,884
|
|
|
|
|
$
|
233,192
|
|
|
|
|
$
|
6,873,820
|
|
|
|
|
|||
Northern California
|
|
2,229,163
|
|
|
|
|
527,067
|
|
|
|
|
149,755
|
|
|
|
|
2,905,985
|
|
|
|
|
|||||||
California
|
|
7,495,907
|
|
|
78
|
%
|
|
1,900,951
|
|
|
84
|
%
|
|
382,947
|
|
|
59
|
%
|
|
9,779,805
|
|
|
78
|
%
|
||||
New York
|
|
692,959
|
|
|
7
|
%
|
|
104,462
|
|
|
5
|
%
|
|
88,108
|
|
|
14
|
%
|
|
885,529
|
|
|
7
|
%
|
||||
Texas
|
|
493,296
|
|
|
5
|
%
|
|
94,142
|
|
|
4
|
%
|
|
15,214
|
|
|
2
|
%
|
|
602,652
|
|
|
5
|
%
|
||||
Washington
|
|
312,053
|
|
|
3
|
%
|
|
55,945
|
|
|
2
|
%
|
|
34,944
|
|
|
5
|
%
|
|
402,942
|
|
|
3
|
%
|
||||
Arizona
|
|
120,774
|
|
|
1
|
%
|
|
25,398
|
|
|
1
|
%
|
|
27,824
|
|
|
4
|
%
|
|
173,996
|
|
|
1
|
%
|
||||
Nevada
|
|
96,005
|
|
|
1
|
%
|
|
44,764
|
|
|
2
|
%
|
|
64,000
|
|
|
10
|
%
|
|
204,769
|
|
|
2
|
%
|
||||
Other markets
|
|
425,344
|
|
|
5
|
%
|
|
44,928
|
|
|
2
|
%
|
|
34,343
|
|
|
6
|
%
|
|
504,615
|
|
|
4
|
%
|
||||
Total loans
(1)
|
|
$
|
9,636,338
|
|
|
100
|
%
|
|
$
|
2,270,590
|
|
|
100
|
%
|
|
$
|
647,380
|
|
|
100
|
%
|
|
$
|
12,554,308
|
|
|
100
|
%
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
($ 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
|
%
|
|
|
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Property types:
|
|
|
|
|
|
|
|
|
||||||
Retail
|
|
$
|
3,229,118
|
|
|
34
|
%
|
|
$
|
3,171,374
|
|
|
33
|
%
|
Offices
|
|
2,235,417
|
|
|
23
|
%
|
|
2,160,382
|
|
|
23
|
%
|
||
Industrial
|
|
1,919,306
|
|
|
20
|
%
|
|
1,883,444
|
|
|
20
|
%
|
||
Hotel/Motel
|
|
1,638,184
|
|
|
17
|
%
|
|
1,619,905
|
|
|
17
|
%
|
||
Other
|
|
614,313
|
|
|
6
|
%
|
|
614,730
|
|
|
7
|
%
|
||
Total CRE loans
(1)
|
|
$
|
9,636,338
|
|
|
100
|
%
|
|
$
|
9,449,835
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|||||||||||||||||||
|
Single-
Family
Residential
|
|
%
|
|
HELOCs
|
|
%
|
|
Total
|
|
%
|
||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Southern California
|
|
$
|
2,866,980
|
|
|
|
|
$
|
806,930
|
|
|
|
|
$
|
3,673,910
|
|
|
|
|||
Northern California
|
|
994,802
|
|
|
|
|
331,552
|
|
|
|
|
1,326,354
|
|
|
|
||||||
California
|
|
3,861,782
|
|
|
61
|
%
|
|
1,138,482
|
|
|
70
|
%
|
|
5,000,264
|
|
|
63
|
%
|
|||
New York
|
|
1,264,108
|
|
|
20
|
%
|
|
269,914
|
|
|
17
|
%
|
|
1,534,022
|
|
|
19
|
%
|
|||
Washington
|
|
583,321
|
|
|
9
|
%
|
|
146,170
|
|
|
9
|
%
|
|
729,491
|
|
|
9
|
%
|
|||
Massachusetts
|
|
209,612
|
|
|
3
|
%
|
|
31,909
|
|
|
2
|
%
|
|
241,521
|
|
|
3
|
%
|
|||
Other markets
|
|
390,508
|
|
|
7
|
%
|
|
39,747
|
|
|
2
|
%
|
|
430,255
|
|
|
6
|
%
|
|||
Total
(1)
|
|
$
|
6,309,331
|
|
|
100
|
%
|
|
$
|
1,626,222
|
|
|
100
|
%
|
|
$
|
7,935,553
|
|
|
100
|
%
|
|
|
|||||||||||||||||||||
($ 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
|
%
|
|||
Massachusetts
|
|
206,920
|
|
|
3
|
%
|
|
32,333
|
|
|
2
|
%
|
|
239,253
|
|
|
3
|
%
|
|||
Other markets
|
|
368,822
|
|
|
7
|
%
|
|
39,332
|
|
|
2
|
%
|
|
408,154
|
|
|
5
|
%
|
|||
Total
(1)
|
|
$
|
6,036,454
|
|
|
100
|
%
|
|
$
|
1,690,834
|
|
|
100
|
%
|
|
$
|
7,727,288
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Nonaccrual loans:
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
$
|
86,466
|
|
|
$
|
43,840
|
|
CRE
|
|
25,209
|
|
|
24,218
|
|
||
Multifamily residential
|
|
1,620
|
|
|
1,260
|
|
||
Consumer:
|
|
|
|
|
||||
Single-family residential
|
|
10,467
|
|
|
5,259
|
|
||
HELOCs
|
|
10,473
|
|
|
8,614
|
|
||
Other consumer
|
|
2,506
|
|
|
2,502
|
|
||
Total nonaccrual loans
|
|
136,741
|
|
|
85,693
|
|
||
OREO, net
|
|
133
|
|
|
133
|
|
||
Other nonperforming assets
|
|
1,167
|
|
|
7,167
|
|
||
Total nonperforming assets
|
|
$
|
138,041
|
|
|
$
|
92,993
|
|
Non-PCI nonperforming assets to total assets
(1)
|
|
0.33
|
%
|
|
0.23
|
%
|
||
Non-PCI nonaccrual loans to loans held-for-investment
(1)
|
|
0.42
|
%
|
|
0.26
|
%
|
||
Allowance for loan losses to non-PCI nonaccrual loans
|
|
232.48
|
%
|
|
363.30
|
%
|
||
|
(1)
|
Total assets and loans held-for-investment include PCI loans of
$290.3 million
and
$308.0 million
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
|
||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
43,230
|
|
|
$
|
5,488
|
|
|
$
|
13,248
|
|
|
$
|
10,715
|
|
CRE
|
|
6,091
|
|
|
15,040
|
|
|
6,134
|
|
|
17,272
|
|
||||
Multifamily residential
|
|
4,263
|
|
|
252
|
|
|
4,300
|
|
|
260
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
7,869
|
|
|
320
|
|
|
8,201
|
|
|
325
|
|
||||
HELOCs
|
|
1,191
|
|
|
1,851
|
|
|
1,342
|
|
|
1,743
|
|
||||
Total TDRs
|
|
$
|
62,644
|
|
|
$
|
22,951
|
|
|
$
|
33,225
|
|
|
$
|
30,315
|
|
|
|
||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
129,696
|
|
|
65
|
%
|
|
$
|
57,088
|
|
|
48
|
%
|
CRE
|
|
31,300
|
|
|
16
|
%
|
|
30,352
|
|
|
26
|
%
|
||
Multifamily residential
|
|
5,883
|
|
|
3
|
%
|
|
5,560
|
|
|
5
|
%
|
||
Total commercial
|
|
166,879
|
|
|
84
|
%
|
|
93,000
|
|
|
79
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
18,336
|
|
|
9
|
%
|
|
13,460
|
|
|
11
|
%
|
||
HELOCs
|
|
11,664
|
|
|
6
|
%
|
|
9,956
|
|
|
8
|
%
|
||
Other consumer
|
|
2,506
|
|
|
1
|
%
|
|
2,502
|
|
|
2
|
%
|
||
Total consumer
|
|
32,506
|
|
|
16
|
%
|
|
25,918
|
|
|
21
|
%
|
||
Total non-PCI impaired loans
|
|
$
|
199,385
|
|
|
100
|
%
|
|
$
|
118,918
|
|
|
100
|
%
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Allowance for loan losses, beginning of period
|
|
$
|
311,322
|
|
|
$
|
287,128
|
|
Provision for loan losses
|
|
20,640
|
|
|
19,922
|
|
||
Gross charge-offs:
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
(17,244
|
)
|
|
(18,445
|
)
|
||
Consumer:
|
|
|
|
|
||||
Single-family residential
|
|
—
|
|
|
(1
|
)
|
||
Other consumer
|
|
(14
|
)
|
|
(17
|
)
|
||
Total gross charge-offs
|
|
(17,258
|
)
|
|
(18,463
|
)
|
||
Gross recoveries:
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
2,251
|
|
|
7,279
|
|
||
CRE
|
|
222
|
|
|
427
|
|
||
Multifamily residential
|
|
281
|
|
|
333
|
|
||
Construction and land
|
|
63
|
|
|
435
|
|
||
Consumer:
|
|
|
|
|
||||
Single-family residential
|
|
2
|
|
|
184
|
|
||
HELOCs
|
|
2
|
|
|
—
|
|
||
Other consumer
|
|
—
|
|
|
1
|
|
||
Total gross recoveries
|
|
2,821
|
|
|
8,659
|
|
||
Net charge-offs
|
|
(14,437
|
)
|
|
(9,804
|
)
|
||
Foreign currency translation adjustments
|
|
369
|
|
|
408
|
|
||
Allowance for loan losses, end of period
|
|
317,894
|
|
|
297,654
|
|
||
|
|
|
|
|
||||
Allowance for unfunded credit reserves, beginning of period
|
|
12,566
|
|
|
13,318
|
|
||
Provision for unfunded credit reserves
|
|
1,939
|
|
|
296
|
|
||
Allowance for unfunded credit reserves, end of period
|
|
14,505
|
|
|
13,614
|
|
||
Allowance for credit losses
|
|
$
|
332,399
|
|
|
$
|
311,268
|
|
|
|
|
|
|
||||
Average loans held-for-investment
|
|
$
|
32,414,467
|
|
|
$
|
29,142,875
|
|
Loans held-for-investment
|
|
$
|
32,863,286
|
|
|
$
|
29,555,248
|
|
Allowance for loan losses to loans held-for-investment
|
|
0.97
|
%
|
|
1.01
|
%
|
||
Annualized quarterly net charge-offs to average loans held-for-investment
|
|
0.18
|
%
|
|
0.14
|
%
|
||
|
|
||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
Allowance
Allocation
|
|
% of
Total Loans
|
|
Allowance
Allocation
|
|
% of
Total Loans
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
189,757
|
|
|
37
|
%
|
|
$
|
191,340
|
|
|
37
|
%
|
CRE
|
|
39,879
|
|
|
29
|
%
|
|
39,053
|
|
|
29
|
%
|
||
Multifamily residential
|
|
18,514
|
|
|
7
|
%
|
|
19,283
|
|
|
7
|
%
|
||
Construction and land
|
|
22,349
|
|
|
2
|
%
|
|
20,282
|
|
|
2
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
35,759
|
|
|
19
|
%
|
|
31,340
|
|
|
19
|
%
|
||
HELOCs
|
|
7,401
|
|
|
5
|
%
|
|
5,774
|
|
|
5
|
%
|
||
Other consumer
|
|
4,235
|
|
|
1
|
%
|
|
4,250
|
|
|
1
|
%
|
||
Total
|
|
$
|
317,894
|
|
|
100
|
%
|
|
$
|
311,322
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
|
Change
|
|||||||||||||||
|
Amount
|
|
% of Total
Deposits
|
|
Amount
|
|
% of Total
Deposits |
|
$
|
|
%
|
||||||||||
Core deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing demand
|
|
$
|
10,011,533
|
|
|
28
|
%
|
|
$
|
11,377,009
|
|
|
32
|
%
|
|
$
|
(1,365,476
|
)
|
|
(12
|
)%
|
Interest-bearing checking
|
|
6,123,681
|
|
|
17
|
%
|
|
4,584,447
|
|
|
13
|
%
|
|
1,539,234
|
|
|
34
|
%
|
|||
Money market
|
|
8,243,003
|
|
|
23
|
%
|
|
8,262,677
|
|
|
23
|
%
|
|
(19,674
|
)
|
|
0
|
%
|
|||
Savings
|
|
2,049,086
|
|
|
5
|
%
|
|
2,146,429
|
|
|
6
|
%
|
|
(97,343
|
)
|
|
(5
|
)%
|
|||
Total core deposits
|
|
26,427,303
|
|
|
73
|
%
|
|
26,370,562
|
|
|
74
|
%
|
|
56,741
|
|
|
0
|
%
|
|||
Time deposits
|
|
9,846,669
|
|
|
27
|
%
|
|
9,069,066
|
|
|
26
|
%
|
|
777,603
|
|
|
9
|
%
|
|||
Total deposits
|
|
$
|
36,273,972
|
|
|
100
|
%
|
|
$
|
35,439,628
|
|
|
100
|
%
|
|
$
|
834,344
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
||||||||||||||
($ in thousands)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
% of Total
Consolidated
Assets
|
|
Amount
|
|
% of Total
Consolidated
Assets
|
|||||||
Hong Kong Branch:
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
330,895
|
|
|
1
|
%
|
|
$
|
360,786
|
|
|
1
|
%
|
Available-for-sale investment securities
(1)
|
|
$
|
226,161
|
|
|
1
|
%
|
|
$
|
221,932
|
|
|
1
|
%
|
Loans held-for-investment
(2)(3)
|
|
$
|
665,395
|
|
|
2
|
%
|
|
$
|
653,860
|
|
|
2
|
%
|
Total assets
|
|
$
|
1,232,451
|
|
|
3
|
%
|
|
$
|
1,244,532
|
|
|
3
|
%
|
Subsidiary Bank in China:
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
733,623
|
|
|
2
|
%
|
|
$
|
695,527
|
|
|
2
|
%
|
Interest-bearing deposits with banks
|
|
$
|
134,000
|
|
|
0
|
%
|
|
$
|
221,000
|
|
|
1
|
%
|
Loans held-for-investment
(3)
|
|
$
|
786,852
|
|
|
2
|
%
|
|
$
|
777,412
|
|
|
2
|
%
|
Total assets
|
|
$
|
1,666,173
|
|
|
4
|
%
|
|
$
|
1,700,287
|
|
|
4
|
%
|
|
(1)
|
Primarily comprised of foreign bonds and U.S. Treasury securities as of
March 31, 2019
and
December 31, 2018
.
|
(2)
|
Includes ASC 310-30 discount of
$85 thousand
and
$103 thousand
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
(3)
|
Primarily comprised of C&I loans.
|
|
||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||||||||
|
2019
|
|
2018
|
|||||||||||
|
Amount
|
|
% of Total
Consolidated
Revenue |
|
Amount
|
|
% of Total
Consolidated
Revenue |
|||||||
Hong Kong Branch:
|
|
|
|
|
|
|
|
|
||||||
Total revenue
|
|
$
|
8,897
|
|
|
2
|
%
|
|
$
|
6,948
|
|
|
2
|
%
|
Subsidiary Bank in China:
|
|
|
|
|
|
|
|
|
||||||
Total revenue
|
|
$
|
7,084
|
|
|
2
|
%
|
|
$
|
5,988
|
|
|
1
|
%
|
|
|
|||||||||||||||||||||
|
|
Basel III Capital Rules
|
|||||||||||||||||||
|
March 31, 2019
|
|
December 31, 2018
|
|
Minimum
Regulatory
Requirements
|
|
Well-
Capitalized
Requirements
|
|
Fully
Phased-in
Minimum
Regulatory
Requirements
|
||||||||||||
|
Company
|
|
East
West Bank |
|
Company
|
|
East
West Bank |
|
|
|
|||||||||||
CET1 risk-based capital
|
|
12.4
|
%
|
|
12.4
|
%
|
|
12.2
|
%
|
|
12.1
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
|
7.0
|
%
|
Tier 1 risk-based capital
|
|
12.4
|
%
|
|
12.4
|
%
|
|
12.2
|
%
|
|
12.1
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
|
8.5
|
%
|
Total risk-based capital
|
|
13.9
|
%
|
|
13.4
|
%
|
|
13.7
|
%
|
|
13.1
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
|
10.5
|
%
|
Tier 1 leverage capital
(1)
|
|
10.2
|
%
|
|
10.2
|
%
|
|
9.9
|
%
|
|
9.8
|
%
|
|
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)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Net cash provided by operating activities
|
|
$
|
139,241
|
|
|
$
|
217,854
|
|
Net cash used in investing activities
|
|
(118,681
|
)
|
|
(1,040,318
|
)
|
||
Net cash provided by financing activities
|
|
749,370
|
|
|
944,414
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
14,018
|
|
|
18,396
|
|
||
Net increase in cash and cash equivalents
|
|
783,948
|
|
|
140,346
|
|
||
Cash and cash equivalents, beginning of period
|
|
3,001,377
|
|
|
2,174,592
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
3,785,325
|
|
|
$
|
2,314,938
|
|
|
|
|
|
|
|
||||||
Change in Interest Rates
(Basis Points) |
|
Net Interest Income Volatility
(1)
|
||||
|
March 31, 2019
|
|
December 31, 2018
|
|||
+200
|
|
16.9
|
%
|
|
16.6
|
%
|
+100
|
|
9.2
|
%
|
|
8.4
|
%
|
-100
|
|
(6.6
|
)%
|
|
(8.3
|
)%
|
-200
|
|
(14.5
|
)%
|
|
(16.7
|
)%
|
|
(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)
|
||||
|
March 31, 2019
|
|
December 31, 2018
|
|||
+200 Rate Ramp
|
|
6.5
|
%
|
|
6.3
|
%
|
+100 Rate Ramp
|
|
3.5
|
%
|
|
3.0
|
%
|
-100 Rate Ramp
|
|
(1.2
|
)%
|
|
(3.0
|
)%
|
-200 Rate Ramp
|
|
(4.2
|
)%
|
|
(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)
|
||||
|
March 31, 2019
|
|
December 31, 2018
|
|||
+200
|
|
8.7
|
%
|
|
6.3
|
%
|
+100
|
|
3.6
|
%
|
|
1.2
|
%
|
-100
|
|
(2.6
|
)%
|
|
(3.1
|
)%
|
-200
|
|
(11.3
|
)%
|
|
(11.9
|
)%
|
|
|
|
|
|
(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.
|
•
|
fair value of financial instruments;
|
•
|
allowance for credit losses;
|
•
|
goodwill impairment; and
|
•
|
income taxes.
|
|
||||||||||
($ and shares in thousands, except per share data)
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||||
Net income
|
|
(a)
|
|
$
|
164,024
|
|
|
$
|
187,032
|
|
Add: Impairment charge related to certain tax credit investments
(1)
|
|
|
|
6,978
|
|
|
—
|
|
||
Less:Gain on sale of business
|
|
|
|
—
|
|
|
(31,470
|
)
|
||
Tax effect of adjustments
(2)
|
|
|
|
(2,063
|
)
|
|
9,303
|
|
||
Non-GAAP net income
|
|
(b)
|
|
$
|
168,939
|
|
|
$
|
164,865
|
|
|
|
|
|
|
|
|
||||
Diluted weighted-average number of shares outstanding
|
|
|
|
145,921
|
|
|
145,939
|
|
||
|
|
|
|
|
|
|
||||
Diluted EPS
|
|
|
|
$
|
1.12
|
|
|
$
|
1.28
|
|
Diluted EPS impact of impairment charge related to certain tax credit investments, net of tax
|
|
|
|
0.04
|
|
|
—
|
|
||
Diluted EPS impact of gain on sale of business, net of tax
|
|
|
|
—
|
|
|
(0.15
|
)
|
||
Non-GAAP diluted EPS
|
|
|
|
$
|
1.16
|
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
||||
Average total assets
|
|
(c)
|
|
$
|
40,738,404
|
|
|
$
|
37,381,098
|
|
Average stockholders’ equity
|
|
(d)
|
|
$
|
4,537,301
|
|
|
$
|
3,922,926
|
|
ROA
(3)
|
|
(a)/(c)
|
|
1.63
|
%
|
|
2.03
|
%
|
||
Non-GAAP ROA
(3)
|
|
(b)/(c)
|
|
1.68
|
%
|
|
1.79
|
%
|
||
ROE
(3)
|
|
(a)/(d)
|
|
14.66
|
%
|
|
19.34
|
%
|
||
Non-GAAP ROE
(3)
|
|
(b)/(d)
|
|
15.10
|
%
|
|
17.04
|
%
|
||
|
(1)
|
Included in
Amortization of tax credit and other investments
on the Consolidated Statement of Income.
|
(2)
|
Applied statutory rate of
29.56%
.
|
(3)
|
Annualized.
|
|
||||||||||
($ in thousands)
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||||
Net interest income before provision for credit losses
|
|
(a)
|
|
$
|
362,461
|
|
|
$
|
326,693
|
|
Total noninterest income
|
|
|
|
42,131
|
|
|
74,444
|
|
||
Total revenue
|
|
(b)
|
|
404,592
|
|
|
401,137
|
|
||
Noninterest income
|
|
|
|
42,131
|
|
|
74,444
|
|
||
Less: Gain on sale of business
|
|
|
|
—
|
|
|
(31,470
|
)
|
||
Non-GAAP noninterest income
|
|
(c)
|
|
42,131
|
|
|
42,974
|
|
||
Non-GAAP revenue
|
|
(a)+(c)=(d)
|
|
$
|
404,592
|
|
|
$
|
369,667
|
|
|
|
|
|
|
|
|
||||
Total noninterest expense
|
|
(e)
|
|
$
|
186,922
|
|
|
$
|
169,135
|
|
Less: Amortization of tax credit and other investments
|
|
|
|
(24,905
|
)
|
|
(17,400
|
)
|
||
Amortization of core deposit intangibles
|
|
|
|
(1,174
|
)
|
|
(1,485
|
)
|
||
Non-GAAP noninterest expense
|
|
(f)
|
|
$
|
160,843
|
|
|
$
|
150,250
|
|
|
|
|
|
|
|
|
||||
Efficiency ratio
|
|
(e)/(b)
|
|
46.20
|
%
|
|
42.16
|
%
|
||
Non-GAAP efficiency ratio
|
|
(f)/(d)
|
|
39.75
|
%
|
|
40.64
|
%
|
||
|
•
|
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 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 selected as the preferred alternative reference rate to 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, the FDIC, the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission (“SEC”), the Consumer Financial Protection Bureau and the California Department of Business Oversight - Division of Financial Institutions;
|
•
|
impact of 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 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;
|
•
|
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 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.
|
|
|
ALCO
|
Asset/Liability Committee
|
AOCI
|
Accumulated other comprehensive income (loss)
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
CCP
|
Central counterparty
|
C&I
|
Commercial and industrial
|
CECL
|
Current expected credit loss
|
CET1
|
Common Equity Tier 1
|
CME
|
Chicago Mercantile Exchange
|
CRA
|
Community Reinvestment Act
|
CRE
|
Commercial real estate
|
DCB
|
Desert Community Bank
|
EPS
|
Earnings per share
|
EVE
|
Economic value of equity
|
EWIS
|
East West Insurance Services, Inc.
|
FASB
|
Financial Accounting Standards Board
|
FBI
|
Federal Bureau of Investigation
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FRB
|
Federal Reserve Bank of San Francisco
|
GAAP
|
United States generally accepted accounting principles
|
HELOC
|
Home equity line of credit
|
IBR
|
Incremental borrowing rate
|
LCH
|
London Clearing House
|
LIBOR
|
London Interbank Offered Rate
|
MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
MMBTU
|
Million British thermal unit
|
NAV
|
Net asset value
|
OIS
|
Overnight Index Swap
|
OREO
|
Other real estate owned
|
OTTI
|
Other-than-temporary-impairment
|
PCI
|
Purchased credit-impaired
|
ROA
|
Return on average assets
|
ROE
|
Return on average equity
|
RPA
|
Credit risk participation agreement
|
RSU
|
Restricted stock unit
|
S&P
|
Standard and Poor’s
|
SBLC
|
Standby letter of credit
|
SEC
|
U.S. Securities and Exchange Commission
|
SOFR
|
Secured Overnight Financing Rate
|
TDR
|
Troubled debt restructuring
|
U.S.
|
United States
|
USD
|
U.S. dollar
|
VIE
|
Variable interest entity
|
|
Dated: May 8, 2019
|
|
|||
|
|
|
||
|
|
EAST WEST BANCORP, INC.
(Registrant)
|
||
|
|
|
||
|
|
By
|
/s/ IRENE H. OH
|
|
|
|
|
Irene H. Oh
|
|
|
|
|
Executive Vice President and
Chief Financial Officer
|
1.
|
Section 3.1 (Term) of the Agreement is hereby modified in its entirety to read as follows: This Agreement and employment under this Agreement shall terminate on March 6, 2022 unless extended by Company.
|
2.
|
Except as expressly agreed to herein, the Employment Agreement between the parties shall remain in force and effect.
|
|
EAST WEST BANCORP, INC.
|
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
|
|
|
/s/ DOMINIC NG
|
|
Employee: Dominic Ng
|
1.
|
Section 3.1 (Term) of the Agreement is hereby modified in its entirety to read as follows: This Agreement and employment under this Agreement shall terminate on March 6, 2022 unless extended by Company.
|
2.
|
Except as expressly agreed to herein, the Employment Agreement between the parties shall remain in force and effect.
|
|
EAST WEST BANCORP, INC.
|
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
|
|
|
/s/ DOUGLAS P. KRAUSE
|
|
Employee: Douglas P. Krause
|
1.
|
POSITION AND RESPONSIBILITIES
|
2.
|
TERM OF CONTRACT
|
3.
|
COMPENSATION AND BENEFITS
|
4.
|
TERMINATION OF EMPLOYMENT
|
5.
|
TERMINATION OBLIGATIONS
|
6.
|
INVENTIONS AND PROPRIETARY INFORMATION; PROHIBITION ON THIRD PARTY INFORMATION
|
7.
|
ARBITRATION
|
8.
|
AMENDMENTS; WAIVERS; REMEDIES
|
9.
|
ASSIGNMENT; BINDING EFFECT
|
10.
|
SEVERABILITY
|
11.
|
TAXES & SECTION 409A
|
12.
|
GOVERNING LAW
|
13.
|
INTERPRETATION
|
14.
|
COUNTERPARTS
|
15.
|
AUTHORITY
|
16.
|
ENTIRE AGREEMENT
|
17.
|
EXECUTIVE ACKNOWLEDGEMENT
|
|
EXECUTIVE
|
DATED: _____________________________________
|
/s/ CATHERINE ZHOU
|
|
Catherine Zhou
|
|
|
|
EAST WEST BANK
|
DATED: _____________________________________
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
|
EMPLOYEE
|
DATED: _____________________________________
|
/s/ CATHERINE ZHOU
|
|
Catherine Zhou
|
|
|
|
EAST WEST BANK
|
DATED: _____________________________________
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
1.
|
I have reviewed this
Quarterly
Report on Form
10-Q
of East West Bancorp, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this 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.
|
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/s/ DOMINIC NG
|
|
Dominic Ng
|
|
Chief Executive Officer
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1.
|
I have reviewed this
Quarterly
Report on Form
10-Q
of East West Bancorp, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this 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
|