|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
|
Common Stock, $0.001 Par Value
|
|
EWBC
|
|
NASDAQ Global Select Market
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Non-accelerated filer
|
☐
|
|
|
Emerging growth company
|
☐
|
|
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||
•
|
the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the United States (“U.S.”) and the People’s Republic of China;
|
•
|
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 benchmark interest rate reform in the U.S. that resulted in the Secured Overnight Financing Rate (“SOFR”) selected as the preferred alternative reference rate to the London Interbank Offered Rate (“LIBOR”);
|
•
|
impact of 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;
|
•
|
government intervention in the financial system, including changes in government interest rate policies;
|
•
|
impact on the Company’s international operations due to political developments, disease pandemics, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions;
|
•
|
changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board System (“Federal Reserve”), the Federal Deposit Insurance Corporation (“FDIC”), the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission (“SEC”), the Consumer Financial Protection Bureau (“CFPB”) and the California Department of Business Oversight (“DBO”) - Division of Financial Institutions;
|
•
|
impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) on the Company’s business, business practices, cost of operations and executive compensation;
|
•
|
heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers;
|
•
|
impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from the Company’s interactions with business partners, counterparties, service providers and other third parties;
|
•
|
impact of regulatory enforcement actions;
|
•
|
changes in accounting standards as may be required by the Financial Accounting Standards Board (“FASB”) or other regulatory agencies and their impact on critical accounting policies and assumptions;
|
•
|
changes in income tax laws and regulations;
|
•
|
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;
|
•
|
impact on the Company’s liquidity due to changes in the Company’s ability to receive dividends from its subsidiaries;
|
•
|
any future strategic acquisitions or divestitures;
|
•
|
continuing consolidation in the financial services industry;
|
•
|
changes in the equity and debt securities markets;
|
•
|
fluctuations in the Company’s stock price;
|
•
|
fluctuations in foreign currency exchange rates;
|
•
|
a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment (“OTTI”) on securities held in the Company’s available-for-sale (“AFS”) investment securities portfolio; and
|
•
|
impact of natural or man-made disasters or calamities, such as wildfires, or conflicts or other events that may directly or indirectly result in a negative impact on the Company’s financial performance.
|
•
|
require periodic reports and such additional information as the Federal Reserve may require in its discretion;
|
•
|
require the Company to maintain certain levels of capital and, under the Dodd-Frank Act, limit the ability of bank holding companies to pay dividends or bonuses unless their capital levels exceed the capital conservation buffer (see Item 1. Business — Supervision and Regulation — Capital Requirements);
|
•
|
require bank holding companies to serve as a source of financial and managerial strength to subsidiary banks and commit resources, as necessary, to support each subsidiary bank, including at times when bank holding companies may not be inclined to do so, the failure to do so generally be considered by the Federal Reserve to be an unsafe and unsound banking practice or a violation of Federal Reserve regulations or both;
|
•
|
restrict dividends and other distributions from subsidiary banks to their parent bank holding companies;
|
•
|
terminate an activity or terminate control of or liquidate or divest certain nonbank subsidiaries, affiliates or investments if the Federal Reserve believes that the activity or the control of the nonbank subsidiary or affiliate constitutes a serious risk to the financial safety, soundness or stability of the bank holding company; and if the activity, ownership, or control is inconsistent with the purposes of the BHC Act;
|
•
|
regulate provisions of certain bank holding company debt, including the authority to impose interest ceilings and reserve requirements on such debt and require prior approval to purchase or redeem the Company’s securities in certain situations;
|
•
|
approve in advance senior executive officer or director changes and prohibit (under certain circumstances) golden parachute payments to officers and employees, including change in control agreements and new employment agreements, that are contingent upon termination; and
|
•
|
approve in advance acquisitions of and mergers with bank holding companies, banks and other financial companies, and consider certain competitive, management, financial, financial stability and other factors in granting these approvals. DBO approvals may also be required for certain acquisitions and mergers.
|
1.
|
Regulatory relief for bank holding companies and state member banks with assets between $10 billion and $50 billion. We are among the bank holding companies and banks in this range. Dodd-Frank required that bank holding companies in this size range establish a risk committee that satisfied certain requirements and conduct an annual stress-test. The stress-test requirement was extended to state member banks (and other insured depository institutions) as well. EGRRCPA lifted the size threshold for a formal risk committee from $10 billion to $50 billion, but the Federal Reserve will still examine the risk management practices of companies with assets in the $10 billion to $50 billion range for consistency with safety and soundness and prudent practices. With respect to stress-testing by the Bank, EGRRCPA raised the asset size threshold for required testing from $10 billion to $250 billion. Regarding the Company, the Federal Reserve in rulemaking (based on broad EGRRCPA authority) lifted the asset size threshold from $10 billion to $100 billion for required stress-testing bank holding companies. Accordingly, neither the Company nor the Bank is now required to conduct stress-tests.
|
2.
|
Regulatory relief for community banking organizations. Banks and bank holding companies with less than $10 billion in assets — that is, institutions smaller than the Company and the Bank — receive additional relief under EGRRCPA that may give them competitive advantages. Among other things, these banks and bank holding companies are generally exempt from the Volcker Rule, and they may maintain a new Community Bank Leverage Ratio of 9% in lieu of meeting existing risk-based capital ratio and leverage ratio requirements.
|
3.
|
Regulatory relief for larger bank holding companies. Our larger competitors also receive a degree of regulatory relief from previous requirements. Bank holding companies designated as global systemically important banking organizations and those with more than $250 billion in assets are still automatically subject to enhanced regulation. However, bank holding companies with between $100 billion and $250 billion in assets are automatically subject only to supervisory stress tests, while the Federal Reserve has discretion to apply other individual enhanced prudential provisions to these companies. Bank holding companies with assets between $50 billion and $100 billion will no longer be subject to enhanced regulation, except for the risk committee requirement. In addition, EGRRCPA relaxes leverage requirements for large custody banks and allows certain municipal bonds to be counted toward large bank holding companies’ liquidity requirements.
|
•
|
risks to consumers and compliance with federal consumer financial laws when it evaluates the policies and practices of a financial institution;
|
•
|
unfair, deceptive, or abusive acts or practices, which the Dodd-Frank Act empowers the CFPB to prevent through rulemaking, enforcement and examination;
|
•
|
rulemaking to implement various federal consumer statutes such as the Home Mortgage Disclosure Act, Truth in Lending Act, Real Estate Settlement Procedures Act, Electronic Fund Transfer Act, Equal Credit Opportunity Act and Fair Credit Billing Act; and
|
•
|
the markets in which firms operate and risks to consumers posed by activities in those markets.
|
•
|
the process the Company uses to estimate losses inherent in the Company’s credit exposure requires difficult, subjective and complex judgments, including consideration of how these economic conditions might impair the ability of the borrowers to repay their loans. The level of uncertainty concerning economic conditions may adversely affect the accuracy of the Company’s estimates of losses inherent in the Company’s credit exposure which may, in turn, adversely impact the Company’s operating results and financial condition;
|
•
|
the Company’s commercial and residential borrowers may not be able to make timely repayments of their loans, or a decrease in the value of real estate collateral securing the payment of such loans could result in credit losses, delinquencies, foreclosures and customer bankruptcies, any of which could have a material adverse effect on the Company’s operating results;
|
•
|
a decrease in the demand for loans and other products and services;
|
•
|
a decrease in deposit balances;
|
•
|
future disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations, may result in an inability to borrow on favorable terms or at all from other financial institutions;
|
•
|
the value of the AFS investment securities portfolio that the Company holds may be adversely affected by defaults by debtors; and
|
•
|
a loss of confidence in the financial services industry, our market sector and the equity markets by investors, placing pressure on the Company’s stock price.
|
•
|
actual or anticipated quarterly fluctuations in the Company’s results of operations and financial condition;
|
•
|
changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts;
|
•
|
failure to meet analysts’ revenue or earnings estimates;
|
•
|
speculation in the press or investment community;
|
•
|
strategic actions by the Company or its competitors, such as acquisitions or restructurings;
|
•
|
actions by institutional stockholders;
|
•
|
addition or departure of key personnel;
|
•
|
fluctuations in the stock price and operating results of the Company’s competitors;
|
•
|
general market conditions and, in particular, developments related to market conditions in the financial services industry;
|
•
|
proposed or adopted regulatory changes or developments;
|
•
|
cyclical fluctuations;
|
•
|
trading volume of the Company’s common stock; and
|
•
|
anticipated or pending investigations, proceedings or litigation that involve or affect the Company.
|
|
||||||||||||
|
|
December 31,
|
||||||||||
Index
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
East West Bancorp, Inc.
|
|
$100.00
|
|
$109.40
|
|
$136.60
|
|
$165.80
|
|
$120.50
|
|
$138.00
|
KRX
|
|
$100.00
|
|
$105.90
|
|
$147.20
|
|
$149.80
|
|
$123.60
|
|
$153.00
|
S&P 500 Index
|
|
$100.00
|
|
$101.40
|
|
$113.50
|
|
$138.30
|
|
$132.20
|
|
$173.90
|
|
|
|
|
Page
|
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|
||
|
|
||
|
|||
|
|
||
|
|
||
|
|
||
|
|||
|
|
||||||||||||||||||||
($ and shares in thousands, except per share, ratio and headcount data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Summary of operations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
|
$
|
1,882,300
|
|
|
$
|
1,651,703
|
|
|
$
|
1,325,119
|
|
|
$
|
1,137,481
|
|
|
$
|
1,053,815
|
|
Interest expense
|
|
414,487
|
|
|
265,195
|
|
|
140,050
|
|
|
104,843
|
|
|
103,376
|
|
|||||
Net interest income before provision for credit losses
|
|
1,467,813
|
|
|
1,386,508
|
|
|
1,185,069
|
|
|
1,032,638
|
|
|
950,439
|
|
|||||
Provision for credit losses
|
|
98,685
|
|
|
64,255
|
|
|
46,266
|
|
|
27,479
|
|
|
14,217
|
|
|||||
Net interest income after provision for credit losses
|
|
1,369,128
|
|
|
1,322,253
|
|
|
1,138,803
|
|
|
1,005,159
|
|
|
936,222
|
|
|||||
Noninterest income (1)
|
|
209,377
|
|
|
210,909
|
|
|
257,748
|
|
|
182,278
|
|
|
182,779
|
|
|||||
Noninterest expense
|
|
734,588
|
|
|
714,466
|
|
|
661,451
|
|
|
615,249
|
|
|
540,280
|
|
|||||
Income before income taxes
|
|
843,917
|
|
|
818,696
|
|
|
735,100
|
|
|
572,188
|
|
|
578,721
|
|
|||||
Income tax expense (2)
|
|
169,882
|
|
|
114,995
|
|
|
229,476
|
|
|
140,511
|
|
|
194,044
|
|
|||||
Net income
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
$
|
431,677
|
|
|
$
|
384,677
|
|
Per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings
|
|
$
|
4.63
|
|
|
$
|
4.86
|
|
|
$
|
3.50
|
|
|
$
|
3.00
|
|
|
$
|
2.67
|
|
Diluted earnings
|
|
$
|
4.61
|
|
|
$
|
4.81
|
|
|
$
|
3.47
|
|
|
$
|
2.97
|
|
|
$
|
2.66
|
|
Dividends declared
|
|
$
|
1.06
|
|
|
$
|
0.86
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
Book value
|
|
$
|
34.46
|
|
|
$
|
30.52
|
|
|
$
|
26.58
|
|
|
$
|
23.78
|
|
|
$
|
21.70
|
|
Non-GAAP tangible common equity per share (3)
|
|
$
|
31.15
|
|
|
$
|
27.15
|
|
|
$
|
23.13
|
|
|
$
|
20.27
|
|
|
$
|
18.15
|
|
Weighted-average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
145,497
|
|
|
144,862
|
|
|
144,444
|
|
|
144,087
|
|
|
143,818
|
|
|||||
Diluted
|
|
146,179
|
|
|
146,169
|
|
|
145,913
|
|
|
145,172
|
|
|
144,512
|
|
|||||
Common shares outstanding at period-end
|
|
145,625
|
|
|
144,961
|
|
|
144,543
|
|
|
144,167
|
|
|
143,909
|
|
|||||
At year end:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets (4)
|
|
$
|
44,196,096
|
|
|
$
|
41,042,356
|
|
|
$
|
37,121,563
|
|
|
$
|
34,788,840
|
|
|
$
|
32,350,922
|
|
Total loans (4)
|
|
$
|
34,778,973
|
|
|
$
|
32,385,464
|
|
|
$
|
29,053,935
|
|
|
$
|
25,526,215
|
|
|
$
|
23,675,706
|
|
Investment securities
|
|
$
|
3,317,214
|
|
|
$
|
2,741,847
|
|
|
$
|
3,016,752
|
|
|
$
|
3,335,795
|
|
|
$
|
3,773,226
|
|
Total deposits, excluding held-for-sale deposits
|
|
$
|
37,324,259
|
|
|
$
|
35,439,628
|
|
|
$
|
31,615,063
|
|
|
$
|
29,890,983
|
|
|
$
|
27,475,981
|
|
Long-term debt and finance lease liabilities
|
|
$
|
152,270
|
|
|
$
|
146,835
|
|
|
$
|
171,577
|
|
|
$
|
186,327
|
|
|
$
|
206,084
|
|
FHLB advances
|
|
$
|
745,915
|
|
|
$
|
326,172
|
|
|
$
|
323,891
|
|
|
$
|
321,643
|
|
|
$
|
1,019,424
|
|
Stockholders’ equity
|
|
$
|
5,017,617
|
|
|
$
|
4,423,974
|
|
|
$
|
3,841,951
|
|
|
$
|
3,427,741
|
|
|
$
|
3,122,950
|
|
Non-GAAP tangible common equity (3)
|
|
$
|
4,535,841
|
|
|
$
|
3,936,062
|
|
|
$
|
3,343,693
|
|
|
$
|
2,922,638
|
|
|
$
|
2,611,919
|
|
Head count (full-time equivalent)
|
|
3,294
|
|
|
3,196
|
|
|
2,933
|
|
|
2,838
|
|
|
2,804
|
|
|||||
Performance metrics:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets (“ROA”)
|
|
1.59
|
%
|
|
1.83
|
%
|
|
1.41
|
%
|
|
1.30
|
%
|
|
1.27
|
%
|
|||||
Return on average equity (“ROE”)
|
|
14.16
|
%
|
|
17.04
|
%
|
|
13.71
|
%
|
|
13.06
|
%
|
|
12.74
|
%
|
|||||
Net interest margin
|
|
3.64
|
%
|
|
3.78
|
%
|
|
3.48
|
%
|
|
3.30
|
%
|
|
3.35
|
%
|
|||||
Efficiency ratio (5)
|
|
43.80
|
%
|
|
44.73
|
%
|
|
45.84
|
%
|
|
50.64
|
%
|
|
47.68
|
%
|
|||||
Non-GAAP efficiency ratio (3)
|
|
38.43
|
%
|
|
39.55
|
%
|
|
41.44
|
%
|
|
44.21
|
%
|
|
41.75
|
%
|
|||||
Credit quality metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Allowance for loan losses
|
|
$
|
358,287
|
|
|
$
|
311,322
|
|
|
$
|
287,128
|
|
|
$
|
260,520
|
|
|
$
|
264,959
|
|
Allowance for loan losses to loans held-for-investment (4)
|
|
1.03
|
%
|
|
0.96
|
%
|
|
0.99
|
%
|
|
1.02
|
%
|
|
1.12
|
%
|
|||||
Non-purchased credit-impaired (“PCI”) nonperforming assets to total assets (4)
|
|
0.27
|
%
|
|
0.23
|
%
|
|
0.31
|
%
|
|
0.37
|
%
|
|
0.40
|
%
|
|||||
Net charge-offs to average loans held-for-investment
|
|
0.16
|
%
|
|
0.13
|
%
|
|
0.08
|
%
|
|
0.15
|
%
|
|
0.01
|
%
|
|||||
Selected metrics:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total average equity to total average assets
|
|
11.21
|
%
|
|
10.72
|
%
|
|
10.30
|
%
|
|
9.97
|
%
|
|
9.95
|
%
|
|||||
Common dividend payout ratio
|
|
23.04
|
%
|
|
17.90
|
%
|
|
23.14
|
%
|
|
27.01
|
%
|
|
30.21
|
%
|
|||||
Loan-to-deposit ratio (4)
|
|
93.18
|
%
|
|
91.38
|
%
|
|
90.17
|
%
|
|
85.40
|
%
|
|
86.17
|
%
|
|||||
EWBC capital ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CET1 capital
|
|
12.9
|
%
|
|
12.2
|
%
|
|
11.4
|
%
|
|
10.9
|
%
|
|
10.5
|
%
|
|||||
Tier 1 capital
|
|
12.9
|
%
|
|
12.2
|
%
|
|
11.4
|
%
|
|
10.9
|
%
|
|
10.7
|
%
|
|||||
Total capital
|
|
14.4
|
%
|
|
13.7
|
%
|
|
12.9
|
%
|
|
12.4
|
%
|
|
12.2
|
%
|
|||||
Tier 1 leverage capital
|
|
10.3
|
%
|
|
9.9
|
%
|
|
9.2
|
%
|
|
8.7
|
%
|
|
8.5
|
%
|
|||||
|
(1)
|
Includes $31.5 million of pretax gain recognized from the sale of the DCB branches for 2018. Includes $71.7 million and $3.8 million of pretax gains recognized from the sales of a commercial property in California and EWIS’s insurance brokerage business, respectively, for 2017. Includes changes in FDIC indemnification asset and receivable/payable charges of $38.0 million for 2015. The Company terminated the United Commercial Bank and Washington First International Bank shared-loss agreements during 2015.
|
(2)
|
Includes $30.1 million of additional tax expense to reverse certain previously claimed tax credits related to DC Solar and affiliates (“DC Solar”) tax credit investments during 2019. Includes an additional $41.7 million in income tax expense recognized during 2017 due to the enactment of the Tax Act.
|
(3)
|
Tangible common equity, tangible common equity per share and adjusted efficiency ratio are non-GAAP financial measures. For a discussion of these measures, refer to Item 7. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-K.
|
(4)
|
Total assets and loans held-for-investment include PCI loans of $222.9 million, $308.0 million, $482.3 million, $642.4 million and $970.8 million as of December 31, 2019, 2018, 2017, 2016 and 2015, respectively.
|
(5)
|
The efficiency ratio is noninterest expense divided by total revenue (net interest income before provision for credit losses and noninterest income).
|
|
|
|
|
|
|
|
|
|
•
|
Earnings: 2019 net income was $674.0 million and diluted EPS was $4.61, compared with 2018 net income of $703.7 million and diluted EPS of $4.81. This $29.7 million or 4% decrease in net income was primarily due to increases in income tax expense, provision for credit losses and noninterest expense, partially offset by net interest income growth.
|
•
|
Adjusted Earnings: Adjusting for non-recurring items, 2019 non-GAAP net income and non-GAAP diluted EPS were $707.9 million and $4.84, respectively, compared with $681.5 million and $4.66 for 2018, respectively, a year-over-year increase of 4%. During 2019, the Company recorded a $5.4 million net pre-tax impairment charge (equivalent to $3.8 after-tax) and $30.1 million in additional income tax expense to reverse certain previously claimed tax credits related to DC Solar. (Refer to Item 7. MD&A — Results of Operations — Income Taxes in this Form 10-K for a more detailed discussion related to the Company’s investment in DC Solar.) During 2018, the Company recognized a $31.5 million pre-tax gain from the sale of its DCB branches, equivalent to $22.2 million after-tax. (See reconciliations of non-GAAP measures presented under Item 7. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-K.)
|
•
|
Revenue: Revenue, or the sum of net interest income before provision for credit losses and noninterest income, was $1.68 billion in 2019, compared with $1.60 billion in 2018, an increase of $79.8 million or 5%. This increase was primarily due to an increase in net interest income.
|
•
|
Net Interest Income and Net Interest Margin: 2019 net interest income was $1.47 billion, compared with 2018 net interest income of $1.39 billion, an increase of $81.3 million or 6%. 2019 net interest margin of 3.64% contracted by 14 basis points, compared with 2018 net interest margin of 3.78%. Net interest income growth was primarily driven by loan growth, partially offset by a higher cost of deposits.
|
•
|
Operating Efficiency: Efficiency ratio, calculated as noninterest expense divided by revenue, was 43.80% in 2019, an improvement of 93 basis points compared with 44.73% in 2018. Adjusting for non-recurring items, amortization of tax credit and other investments, and the amortization of core deposit intangibles in both 2019 and 2018, non-GAAP efficiency ratio was 38.43% in 2019, a 112 basis point improvement from 39.55% in 2018. (See reconciliations of non-GAAP measures presented under Item 7. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-K.)
|
•
|
Tax: The 2019 annual effective income tax rate was 20.1%, compared with 14.0% in 2018. The higher effective tax rate in 2019 was primarily due to the $30.1 million reversal of certain previously claimed tax credits related to DC Solar in the second quarter of 2019.
|
•
|
Profitability: ROA for 2019 and 2018 were 1.59% and 1.83%, respectively. ROE for 2019 and 2018 were 14.16% and 17.04%, respectively. Adjusting for non-recurring items, non-GAAP ROA was 1.67% for 2019, compared with 1.77% for 2018. For 2019, non-GAAP ROE was 14.87%, compared with 16.50% for 2018. (See reconciliations of non-GAAP measures presented under Item 7. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-K.)
|
•
|
Loans: Total loans were $34.78 billion as of December 31, 2019, an increase of $2.39 billion or 7% from $32.39 billion as of December 31, 2018. The largest increase in loans was in single-family residential loans, followed by CRE loans.
|
•
|
Deposits: Total deposits were $37.32 billion as of December 31, 2019, an increase of $1.88 billion or 5% from $35.44 billion as of December 31, 2018. This increase was primarily due to the $1.15 billion or 13% increase in time deposits.
|
•
|
Asset Quality Metrics: The allowance for loan losses was $358.3 million or 1.03% of loans held-for-investment as of December 31, 2019, compared with $311.3 million or 0.96% of loans held-for-investment as of December 31, 2018. Non-PCI nonperforming assets were $121.5 million or 0.27% of total assets as of December 31, 2019, an increase from $93.0 million or 0.23% of total assets as of December 31, 2018. For 2019, net charge-offs were $52.8 million or 0.16% of average loans held-for-investment, compared with $40.1 million or 0.13% of average loans held-for-investment for 2018.
|
•
|
Capital Levels: Our capital levels are strong. As of December 31, 2019, all of the Company’s and the Bank’s regulatory capital ratios were well above the required well-capitalized levels. See Item 7. MD&A — Balance Sheet Analysis — Regulatory Capital and Ratios in this Form 10-K for more information regarding capital.
|
•
|
Cash Dividend: Our annual cash dividend on common stock was $1.055 per share in 2019, compared with $0.86 per share in 2018, an increase of $0.195 or 23%. The Company returned $155.1 million and $126.0 million in cash dividends to stockholders during 2019 and 2018, respectively.
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
|
Average
Balance |
|
Interest
|
|
Average
Yield/ Rate |
|
Average
Balance |
|
Interest
|
|
Average
Yield/ Rate |
|
Average
Balance |
|
Interest
|
|
Average
Yield/ Rate |
||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
3,050,954
|
|
|
$
|
66,760
|
|
|
2.19
|
%
|
|
$
|
2,609,463
|
|
|
$
|
54,804
|
|
|
2.10
|
%
|
|
$
|
2,242,256
|
|
|
$
|
33,390
|
|
|
1.49
|
%
|
Resale agreements (1)
|
|
969,384
|
|
|
27,819
|
|
|
2.87
|
%
|
|
1,020,822
|
|
|
29,328
|
|
|
2.87
|
%
|
|
1,438,767
|
|
|
32,095
|
|
|
2.23
|
%
|
||||||
Investment securities (2)(3)
|
|
2,850,476
|
|
|
67,838
|
|
|
2.38
|
%
|
|
2,773,152
|
|
|
60,911
|
|
|
2.20
|
%
|
|
3,026,693
|
|
|
58,670
|
|
|
1.94
|
%
|
||||||
Loans (4)(5)
|
|
33,373,136
|
|
|
1,717,415
|
|
|
5.15
|
%
|
|
30,230,014
|
|
|
1,503,514
|
|
|
4.97
|
%
|
|
27,252,756
|
|
|
1,198,440
|
|
|
4.40
|
%
|
||||||
Restricted equity securities
|
|
76,854
|
|
|
2,468
|
|
|
3.21
|
%
|
|
73,691
|
|
|
3,146
|
|
|
4.27
|
%
|
|
73,593
|
|
|
2,524
|
|
|
3.43
|
%
|
||||||
Total interest-earning assets
|
|
$
|
40,320,804
|
|
|
$
|
1,882,300
|
|
|
4.67
|
%
|
|
$
|
36,707,142
|
|
|
$
|
1,651,703
|
|
|
4.50
|
%
|
|
$
|
34,034,065
|
|
|
$
|
1,325,119
|
|
|
3.89
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and due from banks
|
|
471,060
|
|
|
|
|
|
|
445,768
|
|
|
|
|
|
|
395,092
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
(330,125
|
)
|
|
|
|
|
|
(298,600
|
)
|
|
|
|
|
|
(272,765
|
)
|
|
|
|
|
||||||||||||
Other assets
|
|
2,023,146
|
|
|
|
|
|
|
1,688,259
|
|
|
|
|
|
|
1,631,221
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
42,484,885
|
|
|
|
|
|
|
$
|
38,542,569
|
|
|
|
|
|
|
$
|
35,787,613
|
|
|
|
|
|
|||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Checking deposits (6)
|
|
$
|
5,244,867
|
|
|
$
|
58,168
|
|
|
1.11
|
%
|
|
$
|
4,477,793
|
|
|
$
|
34,657
|
|
|
0.77
|
%
|
|
$
|
3,951,930
|
|
|
$
|
18,305
|
|
|
0.46
|
%
|
Money market deposits (6)
|
|
8,220,236
|
|
|
111,081
|
|
|
1.35
|
%
|
|
7,985,526
|
|
|
83,696
|
|
|
1.05
|
%
|
|
8,026,347
|
|
|
44,181
|
|
|
0.55
|
%
|
||||||
Saving deposits (6)
|
|
2,118,060
|
|
|
9,626
|
|
|
0.45
|
%
|
|
2,245,644
|
|
|
8,621
|
|
|
0.38
|
%
|
|
2,369,398
|
|
|
6,431
|
|
|
0.27
|
%
|
||||||
Time deposits (6)
|
|
9,961,289
|
|
|
196,927
|
|
|
1.98
|
%
|
|
7,431,749
|
|
|
107,778
|
|
|
1.45
|
%
|
|
5,838,382
|
|
|
47,474
|
|
|
0.81
|
%
|
||||||
Federal funds purchased and other short-term borrowings
|
|
44,881
|
|
|
1,763
|
|
|
3.93
|
%
|
|
32,222
|
|
|
1,398
|
|
|
4.34
|
%
|
|
34,546
|
|
|
1,003
|
|
|
2.90
|
%
|
||||||
FHLB advances
|
|
592,257
|
|
|
16,697
|
|
|
2.82
|
%
|
|
327,435
|
|
|
10,447
|
|
|
3.19
|
%
|
|
391,480
|
|
|
7,751
|
|
|
1.98
|
%
|
||||||
Repurchase agreements (1)
|
|
74,926
|
|
|
13,582
|
|
|
18.13
|
%
|
|
50,000
|
|
|
12,110
|
|
|
24.22
|
%
|
|
140,000
|
|
|
9,476
|
|
|
6.77
|
%
|
||||||
Long-term debt and finance lease liabilities
|
|
152,445
|
|
|
6,643
|
|
|
4.36
|
%
|
|
159,185
|
|
|
6,488
|
|
|
4.08
|
%
|
|
178,882
|
|
|
5,429
|
|
|
3.03
|
%
|
||||||
Total interest-bearing liabilities
|
|
$
|
26,408,961
|
|
|
$
|
414,487
|
|
|
1.57
|
%
|
|
$
|
22,709,554
|
|
|
$
|
265,195
|
|
|
1.17
|
%
|
|
$
|
20,930,965
|
|
|
$
|
140,050
|
|
|
0.67
|
%
|
Noninterest-bearing liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Demand deposits (6)
|
|
10,502,618
|
|
|
|
|
|
|
11,089,537
|
|
|
|
|
|
|
10,627,718
|
|
|
|
|
|
||||||||||||
Accrued expenses and other liabilities
|
|
812,461
|
|
|
|
|
|
|
612,656
|
|
|
|
|
|
|
541,717
|
|
|
|
|
|
||||||||||||
Stockholders’ equity
|
|
4,760,845
|
|
|
|
|
|
|
4,130,822
|
|
|
|
|
|
|
3,687,213
|
|
|
|
|
|
||||||||||||
Total liabilities and stockholders’ equity
|
|
$
|
42,484,885
|
|
|
|
|
|
|
$
|
38,542,569
|
|
|
|
|
|
|
$
|
35,787,613
|
|
|
|
|
|
|||||||||
Interest rate spread
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.33
|
%
|
|
|
|
|
|
3.22
|
%
|
||||||||||||
Net interest income and net interest margin
|
|
|
|
$
|
1,467,813
|
|
|
3.64
|
%
|
|
|
|
$
|
1,386,508
|
|
|
3.78
|
%
|
|
|
|
$
|
1,185,069
|
|
|
3.48
|
%
|
||||||
|
(1)
|
Average balances of resale and repurchase agreements are 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 2.65%, 2.63% and 2.19% for 2019, 2018 and 2017, respectively. The weighted-average interest rates of gross repurchase agreements were 4.74%, 4.46% and 3.48% for 2019, 2018 and 2017, respectively.
|
(2)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
(3)
|
Includes the amortization of premiums on investment securities of $10.9 million, $16.1 million and $21.2 million for 2019, 2018 and 2017, respectively.
|
(4)
|
Average balances include nonperforming loans and loans held-for-sale.
|
(5)
|
Includes the accretion of net deferred loan fees, unearned fees, ASC 310-30 discounts and amortization of premiums, which totaled $36.8 million, $39.2 million and $30.8 million for 2019, 2018 and 2017, respectively.
|
(6)
|
Average balance of deposits for 2018 and 2017 includes average deposits held-for-sale related to the sale of the DCB branches.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2019 vs. 2018
|
|
2018 vs. 2017
|
|||||||||||||||||||||
|
Total
Change
|
|
Changes Due to
|
|
Total
Change
|
|
Changes Due to
|
|||||||||||||||||
|
|
Volume
|
|
Yield/Rate
|
|
|
Volume
|
|
Yield/Rate
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
11,956
|
|
|
$
|
9,584
|
|
|
$
|
2,372
|
|
|
$
|
21,414
|
|
|
$
|
6,108
|
|
|
$
|
15,306
|
|
Resale agreements
|
|
(1,509
|
)
|
|
(1,476
|
)
|
|
(33
|
)
|
|
(2,767
|
)
|
|
(10,671
|
)
|
|
7,904
|
|
||||||
Investment securities
|
|
6,927
|
|
|
1,734
|
|
|
5,193
|
|
|
2,241
|
|
|
(5,167
|
)
|
|
7,408
|
|
||||||
Loans
|
|
213,901
|
|
|
160,392
|
|
|
53,509
|
|
|
305,074
|
|
|
138,724
|
|
|
166,350
|
|
||||||
Restricted equity securities
|
|
(678
|
)
|
|
130
|
|
|
(808
|
)
|
|
622
|
|
|
3
|
|
|
619
|
|
||||||
Total interest and dividend income
|
|
$
|
230,597
|
|
|
$
|
170,364
|
|
|
$
|
60,233
|
|
|
$
|
326,584
|
|
|
$
|
128,997
|
|
|
$
|
197,587
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Checking deposits
|
|
$
|
23,511
|
|
|
$
|
6,666
|
|
|
$
|
16,845
|
|
|
$
|
16,352
|
|
|
$
|
2,706
|
|
|
$
|
13,646
|
|
Money market deposits
|
|
27,385
|
|
|
2,526
|
|
|
24,859
|
|
|
39,515
|
|
|
(226
|
)
|
|
39,741
|
|
||||||
Saving deposits
|
|
1,005
|
|
|
(511
|
)
|
|
1,516
|
|
|
2,190
|
|
|
(351
|
)
|
|
2,541
|
|
||||||
Time deposits
|
|
89,149
|
|
|
43,130
|
|
|
46,019
|
|
|
60,304
|
|
|
15,579
|
|
|
44,725
|
|
||||||
Federal funds purchased and other short-term borrowings
|
|
365
|
|
|
507
|
|
|
(142
|
)
|
|
395
|
|
|
(71
|
)
|
|
466
|
|
||||||
FHLB advances
|
|
6,250
|
|
|
7,590
|
|
|
(1,340
|
)
|
|
2,696
|
|
|
(1,432
|
)
|
|
4,128
|
|
||||||
Repurchase agreements
|
|
1,472
|
|
|
5,028
|
|
|
(3,556
|
)
|
|
2,634
|
|
|
(9,226
|
)
|
|
11,860
|
|
||||||
Long-term debt
|
|
155
|
|
|
(282
|
)
|
|
437
|
|
|
1,059
|
|
|
(648
|
)
|
|
1,707
|
|
||||||
Total interest expense
|
|
$
|
149,292
|
|
|
$
|
64,654
|
|
|
$
|
84,638
|
|
|
$
|
125,145
|
|
|
$
|
6,331
|
|
|
$
|
118,814
|
|
Change in net interest income
|
|
$
|
81,305
|
|
|
$
|
105,710
|
|
|
$
|
(24,405
|
)
|
|
$
|
201,439
|
|
|
$
|
122,666
|
|
|
$
|
78,773
|
|
|
|
||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019 vs. 2018
% Change
|
|
2018 vs. 2017
% Change
|
|||||||||
Lending fees
|
|
$
|
63,670
|
|
|
$
|
59,758
|
|
|
$
|
58,395
|
|
|
7
|
%
|
|
2
|
%
|
Deposit account fees
|
|
38,648
|
|
|
39,176
|
|
|
40,299
|
|
|
(1
|
)%
|
|
(3
|
)%
|
|||
Foreign exchange income
|
|
26,398
|
|
|
21,259
|
|
|
9,908
|
|
|
24
|
%
|
|
115
|
%
|
|||
Wealth management fees
|
|
16,668
|
|
|
13,785
|
|
|
13,974
|
|
|
21
|
%
|
|
(1
|
)%
|
|||
Interest rate contracts and other derivative income
|
|
39,865
|
|
|
18,980
|
|
|
17,671
|
|
|
110
|
%
|
|
7
|
%
|
|||
Net gains on sales of loans
|
|
4,035
|
|
|
6,590
|
|
|
8,870
|
|
|
(39
|
)%
|
|
(26
|
)%
|
|||
Net gains on sales of AFS investment securities
|
|
3,930
|
|
|
2,535
|
|
|
8,037
|
|
|
55
|
%
|
|
(68
|
)%
|
|||
Net gains on sales of fixed assets
|
|
114
|
|
|
6,683
|
|
|
77,388
|
|
|
(98
|
)%
|
|
(91
|
)%
|
|||
Net gain on sale of business
|
|
—
|
|
|
31,470
|
|
|
3,807
|
|
|
(100
|
)%
|
|
NM
|
|
|||
Other investment income
|
|
5,249
|
|
|
1,207
|
|
|
3,903
|
|
|
335
|
%
|
|
(69
|
)%
|
|||
Other income
|
|
10,800
|
|
|
9,466
|
|
|
15,496
|
|
|
14
|
%
|
|
(39
|
)%
|
|||
Total noninterest income
|
|
$
|
209,377
|
|
|
$
|
210,909
|
|
|
$
|
257,748
|
|
|
(1
|
)%
|
|
(18
|
)%
|
|
|
||||||||||||||||||
|
|
Year Ended December 31,
|
||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2019 vs. 2018
% Change
|
|
2018 vs. 2017
% Change
|
||||||||
Compensation and employee benefits
|
|
$
|
401,700
|
|
|
$
|
379,622
|
|
|
$
|
335,291
|
|
|
6
|
%
|
|
13
|
%
|
Occupancy and equipment expense
|
|
69,730
|
|
|
68,896
|
|
|
64,921
|
|
|
1
|
%
|
|
6
|
%
|
|||
Deposit insurance premiums and regulatory assessments
|
|
12,928
|
|
|
21,211
|
|
|
23,735
|
|
|
(39
|
)%
|
|
(11
|
)%
|
|||
Legal expense
|
|
8,441
|
|
|
8,781
|
|
|
11,444
|
|
|
(4
|
)%
|
|
(23
|
)%
|
|||
Data processing
|
|
13,533
|
|
|
13,177
|
|
|
12,093
|
|
|
3
|
%
|
|
9
|
%
|
|||
Consulting expense
|
|
9,846
|
|
|
11,579
|
|
|
14,922
|
|
|
(15
|
)%
|
|
(22
|
)%
|
|||
Deposit related expense
|
|
14,175
|
|
|
11,244
|
|
|
9,938
|
|
|
26
|
%
|
|
13
|
%
|
|||
Computer software expense
|
|
26,471
|
|
|
22,286
|
|
|
18,183
|
|
|
19
|
%
|
|
23
|
%
|
|||
Other operating expense
|
|
92,249
|
|
|
88,042
|
|
|
82,974
|
|
|
5
|
%
|
|
6
|
%
|
|||
Amortization of tax credit and other investments
|
|
85,515
|
|
|
89,628
|
|
|
87,950
|
|
|
(5
|
)%
|
|
2
|
%
|
|||
Total noninterest expense
|
|
$
|
734,588
|
|
|
$
|
714,466
|
|
|
$
|
661,451
|
|
|
3
|
%
|
|
8
|
%
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Income before income taxes
|
|
$
|
843,917
|
|
|
$
|
818,696
|
|
|
$
|
735,100
|
|
Income tax expense
|
|
$
|
169,882
|
|
|
$
|
114,995
|
|
|
$
|
229,476
|
|
Effective tax rate
|
|
20.1
|
%
|
|
14.0
|
%
|
|
31.2
|
%
|
|||
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2019
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
696,551
|
|
|
$
|
651,413
|
|
|
$
|
119,849
|
|
|
$
|
1,467,813
|
|
Provision for credit losses
|
|
14,178
|
|
|
84,507
|
|
|
—
|
|
|
98,685
|
|
||||
Noninterest income
|
|
57,920
|
|
|
134,622
|
|
|
16,835
|
|
|
209,377
|
|
||||
Noninterest expense
|
|
343,001
|
|
|
263,064
|
|
|
128,523
|
|
|
734,588
|
|
||||
Segment income before income taxes
|
|
397,292
|
|
|
438,464
|
|
|
8,161
|
|
|
843,917
|
|
||||
Segment net income
|
|
$
|
284,161
|
|
|
$
|
313,833
|
|
|
$
|
76,041
|
|
|
$
|
674,035
|
|
Average loans
|
|
$
|
10,647,814
|
|
|
$
|
22,725,322
|
|
|
$
|
—
|
|
|
$
|
33,373,136
|
|
Average deposits
|
|
$
|
25,124,827
|
|
|
$
|
8,591,285
|
|
|
$
|
2,330,958
|
|
|
$
|
36,047,070
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
727,215
|
|
|
$
|
605,650
|
|
|
$
|
53,643
|
|
|
$
|
1,386,508
|
|
Provision for credit losses
|
|
9,364
|
|
|
54,891
|
|
|
—
|
|
|
64,255
|
|
||||
Noninterest income
|
|
85,607
|
|
|
110,287
|
|
|
15,015
|
|
|
210,909
|
|
||||
Noninterest expense
|
|
341,396
|
|
|
237,520
|
|
|
135,550
|
|
|
714,466
|
|
||||
Segment income (loss) before income taxes
|
|
462,062
|
|
|
423,526
|
|
|
(66,892
|
)
|
|
818,696
|
|
||||
Segment net income
|
|
$
|
330,683
|
|
|
$
|
303,553
|
|
|
$
|
69,465
|
|
|
$
|
703,701
|
|
Average loans
|
|
$
|
9,469,764
|
|
|
$
|
20,760,250
|
|
|
$
|
—
|
|
|
$
|
30,230,014
|
|
Average deposits
|
|
$
|
24,700,474
|
|
|
$
|
6,897,424
|
|
|
$
|
1,632,351
|
|
|
$
|
33,230,249
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
590,821
|
|
|
$
|
553,817
|
|
|
$
|
40,431
|
|
|
$
|
1,185,069
|
|
Provision for credit losses
|
|
1,812
|
|
|
44,454
|
|
|
—
|
|
|
46,266
|
|
||||
Noninterest income
|
|
54,451
|
|
|
110,089
|
|
|
93,208
|
|
|
257,748
|
|
||||
Noninterest expense
|
|
323,318
|
|
|
200,153
|
|
|
137,980
|
|
|
661,451
|
|
||||
Segment income (loss) before income taxes
|
|
320,142
|
|
|
419,299
|
|
|
(4,341
|
)
|
|
735,100
|
|
||||
Segment net income
|
|
$
|
187,571
|
|
|
$
|
246,404
|
|
|
$
|
71,649
|
|
|
$
|
505,624
|
|
Average loans
|
|
$
|
8,107,502
|
|
|
$
|
19,145,254
|
|
|
$
|
—
|
|
|
$
|
27,252,756
|
|
Average deposits
|
|
$
|
24,647,741
|
|
|
$
|
4,893,341
|
|
|
$
|
1,272,693
|
|
|
$
|
30,813,775
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
December 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
|
$
|
3,261,149
|
|
|
$
|
3,001,377
|
|
|
$
|
259,772
|
|
|
9
|
%
|
Interest-bearing deposits with banks
|
|
196,161
|
|
|
371,000
|
|
|
(174,839
|
)
|
|
(47
|
)%
|
|||
Resale agreements
|
|
860,000
|
|
|
1,035,000
|
|
|
(175,000
|
)
|
|
(17
|
)%
|
|||
AFS investment securities, at fair value
|
|
3,317,214
|
|
|
2,741,847
|
|
|
575,367
|
|
|
21
|
%
|
|||
Restricted equity securities, at cost
|
|
78,580
|
|
|
74,069
|
|
|
4,511
|
|
|
6
|
%
|
|||
Loans held-for-sale
|
|
434
|
|
|
275
|
|
|
159
|
|
|
58
|
%
|
|||
Loans held-for-investment (net of allowance for loan losses of $358,287 in 2019 and $311,322 in 2018)
|
|
34,420,252
|
|
|
32,073,867
|
|
|
2,346,385
|
|
|
7
|
%
|
|||
Investments in qualified affordable housing partnerships, net
|
|
207,037
|
|
|
184,873
|
|
|
22,164
|
|
|
12
|
%
|
|||
Investments in tax credit and other investments, net
|
|
254,140
|
|
|
231,635
|
|
|
22,505
|
|
|
10
|
%
|
|||
Premises and equipment
|
|
118,364
|
|
|
119,180
|
|
|
(816
|
)
|
|
(1
|
)%
|
|||
Goodwill
|
|
465,697
|
|
|
465,547
|
|
|
150
|
|
|
0
|
%
|
|||
Operating lease right-of-use assets
|
|
99,973
|
|
|
—
|
|
|
99,973
|
|
|
100
|
%
|
|||
Other assets
|
|
917,095
|
|
|
743,686
|
|
|
173,409
|
|
|
23
|
%
|
|||
TOTAL
|
|
$
|
44,196,096
|
|
|
$
|
41,042,356
|
|
|
$
|
3,153,740
|
|
|
8
|
%
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing
|
|
$
|
11,080,036
|
|
|
$
|
11,377,009
|
|
|
$
|
(296,973
|
)
|
|
(3
|
)%
|
Interest-bearing
|
|
26,244,223
|
|
|
24,062,619
|
|
|
2,181,604
|
|
|
9
|
%
|
|||
Total deposits
|
|
37,324,259
|
|
|
35,439,628
|
|
|
1,884,631
|
|
|
5
|
%
|
|||
Short-term borrowings
|
|
28,669
|
|
|
57,638
|
|
|
(28,969
|
)
|
|
(50
|
)%
|
|||
FHLB advances
|
|
745,915
|
|
|
326,172
|
|
|
419,743
|
|
|
129
|
%
|
|||
Repurchase agreements
|
|
200,000
|
|
|
50,000
|
|
|
150,000
|
|
|
300
|
%
|
|||
Long-term debt and finance lease liabilities
|
|
152,270
|
|
|
146,835
|
|
|
5,435
|
|
|
4
|
%
|
|||
Operating lease liabilities
|
|
108,083
|
|
|
—
|
|
|
108,083
|
|
|
100
|
%
|
|||
Accrued expenses and other liabilities
|
|
619,283
|
|
|
598,109
|
|
|
21,174
|
|
|
4
|
%
|
|||
Total liabilities
|
|
39,178,479
|
|
|
36,618,382
|
|
|
2,560,097
|
|
|
7
|
%
|
|||
STOCKHOLDERS’ EQUITY
|
|
5,017,617
|
|
|
4,423,974
|
|
|
593,643
|
|
|
13
|
%
|
|||
TOTAL
|
|
$
|
44,196,096
|
|
|
$
|
41,042,356
|
|
|
$
|
3,153,740
|
|
|
8
|
%
|
|
•
|
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 in response to changes in economic or market conditions; and
|
•
|
collateral to support pledging agreements as required and/or to enhance the Company’s borrowing capacity.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||
|
Amortized
Cost (1) |
|
Fair
Value (1) |
|
Amortized
Cost (1) |
|
Fair
Value (1) |
|
Amortized
Cost |
|
Fair
Value |
|||||||||||||
AFS investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
177,215
|
|
|
$
|
176,422
|
|
|
$
|
577,561
|
|
|
$
|
564,815
|
|
|
$
|
651,395
|
|
|
$
|
640,280
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
584,275
|
|
|
581,245
|
|
|
219,485
|
|
|
217,173
|
|
|
206,815
|
|
|
203,392
|
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
1,598,261
|
|
|
1,607,368
|
|
|
1,377,705
|
|
|
1,355,296
|
|
|
1,528,217
|
|
|
1,509,228
|
|
||||||
Municipal securities
|
|
101,621
|
|
|
102,302
|
|
|
82,965
|
|
|
82,020
|
|
|
99,636
|
|
|
99,982
|
|
||||||
Non-agency mortgage-backed securities
|
|
133,439
|
|
|
135,098
|
|
|
35,935
|
|
|
35,983
|
|
|
9,136
|
|
|
9,117
|
|
||||||
Corporate debt securities
|
|
11,250
|
|
|
11,149
|
|
|
11,250
|
|
|
10,869
|
|
|
37,585
|
|
|
37,003
|
|
||||||
Foreign bonds (1)
|
|
354,481
|
|
|
354,172
|
|
|
489,378
|
|
|
463,048
|
|
|
505,396
|
|
|
486,408
|
|
||||||
Asset-backed securities
|
|
66,106
|
|
|
64,752
|
|
|
12,621
|
|
|
12,643
|
|
|
—
|
|
|
—
|
|
||||||
CLOs
|
|
294,000
|
|
|
284,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other securities (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,887
|
|
|
31,342
|
|
||||||
Total AFS investment securities
|
|
$
|
3,320,648
|
|
|
$
|
3,317,214
|
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
$
|
3,070,067
|
|
|
$
|
3,016,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
There were no securities of a single non-governmental agency issuer that exceeded 10% of stockholder’s equity as of December 31, 2019. As of December 31, 2018, securities issued by the International Bank for Reconstruction and Development with an amortized cost of $474.9 million and a fair value of $448.6 million, exceeded 10% of stockholders’ equity.
|
(2)
|
Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, these securities were reported as AFS investment securities with changes in fair value recorded in other comprehensive income (loss). Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from AFS investment securities, at fair value to Investments in tax credit and other investments, net, on the Consolidated Balance Sheet with changes in fair value recorded in net income.
|
|
||||||||||||||||||||||
|
|
December 31,
|
||||||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||||||||||||||||
|
Amortized
Cost
|
|
Fair
Value |
|
Yield (1)
|
|
Amortized
Cost
|
|
Fair
Value |
|
Yield (1)
|
|||||||||||
AFS investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
50,134
|
|
|
$
|
49,773
|
|
|
1.08
|
%
|
Maturing after one year through five years
|
|
177,215
|
|
|
176,422
|
|
|
1.33
|
%
|
|
527,427
|
|
|
515,042
|
|
|
1.69
|
%
|
||||
Total
|
|
177,215
|
|
|
176,422
|
|
|
1.33
|
%
|
|
577,561
|
|
|
564,815
|
|
|
1.64
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
328,628
|
|
|
326,341
|
|
|
2.62
|
%
|
|
26,955
|
|
|
26,909
|
|
|
3.51
|
%
|
||||
Maturing after one year through five years
|
|
158,490
|
|
|
156,431
|
|
|
2.69
|
%
|
|
10,181
|
|
|
10,037
|
|
|
2.18
|
%
|
||||
Maturing after five years through ten years
|
|
44,908
|
|
|
45,189
|
|
|
2.38
|
%
|
|
114,771
|
|
|
113,812
|
|
|
2.30
|
%
|
||||
Maturing after ten years
|
|
52,249
|
|
|
53,284
|
|
|
2.78
|
%
|
|
67,578
|
|
|
66,415
|
|
|
2.79
|
%
|
||||
Total
|
|
584,275
|
|
|
581,245
|
|
|
2.63
|
%
|
|
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
|
|
112
|
|
|
113
|
|
|
2.72
|
%
|
|
2,633
|
|
|
2,600
|
|
|
1.62
|
%
|
||||
Maturing after one year through five years
|
|
23,144
|
|
|
23,289
|
|
|
2.29
|
%
|
|
30,808
|
|
|
30,487
|
|
|
2.11
|
%
|
||||
Maturing after five years through ten years
|
|
85,970
|
|
|
88,261
|
|
|
2.72
|
%
|
|
96,822
|
|
|
95,365
|
|
|
2.68
|
%
|
||||
Maturing after ten years
|
|
1,489,035
|
|
|
1,495,705
|
|
|
2.66
|
%
|
|
1,247,442
|
|
|
1,226,844
|
|
|
2.74
|
%
|
||||
Total
|
|
1,598,261
|
|
|
1,607,368
|
|
|
2.66
|
%
|
|
1,377,705
|
|
|
1,355,296
|
|
|
2.72
|
%
|
||||
Municipal securities (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
37,136
|
|
|
37,291
|
|
|
2.67
|
%
|
|
29,167
|
|
|
28,974
|
|
|
2.60
|
%
|
||||
Maturing after one year through five years
|
|
18,699
|
|
|
18,948
|
|
|
2.52
|
%
|
|
48,398
|
|
|
47,681
|
|
|
2.39
|
%
|
||||
Maturing after five years through ten years
|
|
12,151
|
|
|
12,451
|
|
|
3.15
|
%
|
|
500
|
|
|
476
|
|
|
2.38
|
%
|
||||
Maturing after ten years
|
|
33,635
|
|
|
33,612
|
|
|
2.63
|
%
|
|
4,900
|
|
|
4,889
|
|
|
5.03
|
%
|
||||
Total
|
|
101,621
|
|
|
102,302
|
|
|
2.69
|
%
|
|
82,965
|
|
|
82,020
|
|
|
2.62
|
%
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after one year through five years
|
|
7,920
|
|
|
7,914
|
|
|
3.78
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Maturing after ten years
|
|
125,519
|
|
|
127,184
|
|
|
3.21
|
%
|
|
35,935
|
|
|
35,983
|
|
|
3.67
|
%
|
||||
Total
|
|
133,439
|
|
|
135,098
|
|
|
3.24
|
%
|
|
35,935
|
|
|
35,983
|
|
|
3.67
|
%
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
1,250
|
|
|
1,262
|
|
|
5.20
|
%
|
|
1,250
|
|
|
1,231
|
|
|
5.50
|
%
|
||||
Maturing after one year through five years
|
|
10,000
|
|
|
9,887
|
|
|
4.00
|
%
|
|
10,000
|
|
|
9,638
|
|
|
4.00
|
%
|
||||
Total
|
|
11,250
|
|
|
11,149
|
|
|
4.13
|
%
|
|
11,250
|
|
|
10,869
|
|
|
4.17
|
%
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
354,481
|
|
|
354,172
|
|
|
2.22
|
%
|
|
439,378
|
|
|
414,065
|
|
|
2.19
|
%
|
||||
Maturing after one year through five years
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
50,000
|
|
|
48,983
|
|
|
3.12
|
%
|
||||
Total
|
|
354,481
|
|
|
354,172
|
|
|
2.22
|
%
|
|
489,378
|
|
|
463,048
|
|
|
2.28
|
%
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
66,106
|
|
|
64,752
|
|
|
2.65
|
%
|
|
12,621
|
|
|
12,643
|
|
|
3.22
|
%
|
||||
CLOs:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
294,000
|
|
|
284,706
|
|
|
3.08
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Total AFS investment securities
|
|
$
|
3,320,648
|
|
|
$
|
3,317,214
|
|
|
2.60
|
%
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
2.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total aggregated by maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
$
|
721,607
|
|
|
$
|
719,179
|
|
|
2.43
|
%
|
|
$
|
549,517
|
|
|
$
|
523,552
|
|
|
2.18
|
%
|
Maturing after one year through five years
|
|
395,468
|
|
|
392,891
|
|
|
2.11
|
%
|
|
676,814
|
|
|
661,868
|
|
|
1.91
|
%
|
||||
Maturing after five years through ten years
|
|
143,029
|
|
|
145,901
|
|
|
2.65
|
%
|
|
212,093
|
|
|
209,653
|
|
|
2.47
|
%
|
||||
Maturing after ten years
|
|
2,060,544
|
|
|
2,059,243
|
|
|
2.76
|
%
|
|
1,368,476
|
|
|
1,346,774
|
|
|
2.78
|
%
|
||||
Total AFS investment securities
|
|
$
|
3,320,648
|
|
|
$
|
3,317,214
|
|
|
2.60
|
%
|
|
$
|
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)
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||
|
Amount (1)
|
|
%
|
|
Amount (1)
|
|
%
|
|
Amount (1)
|
|
%
|
|
Amount (1)
|
|
%
|
|
Amount (1)
|
|
%
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
C&I
|
|
$
|
12,150,931
|
|
|
35
|
%
|
|
$
|
12,056,970
|
|
|
37
|
%
|
|
$
|
10,697,231
|
|
|
37
|
%
|
|
$
|
9,640,563
|
|
|
38
|
%
|
|
$
|
8,991,535
|
|
|
38
|
%
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
CRE
|
|
10,278,448
|
|
|
30
|
%
|
|
9,260,199
|
|
|
28
|
%
|
|
8,758,818
|
|
|
31
|
%
|
|
7,890,368
|
|
|
31
|
%
|
|
7,471,812
|
|
|
32
|
%
|
|||||
Multifamily residential
|
|
2,856,374
|
|
|
8
|
%
|
|
2,470,668
|
|
|
8
|
%
|
|
2,094,255
|
|
|
7
|
%
|
|
1,711,680
|
|
|
6
|
%
|
|
1,524,367
|
|
|
6
|
%
|
|||||
Construction and land
|
|
628,499
|
|
|
2
|
%
|
|
538,794
|
|
|
2
|
%
|
|
659,697
|
|
|
2
|
%
|
|
674,754
|
|
|
3
|
%
|
|
628,260
|
|
|
3
|
%
|
|||||
Total CRE
|
|
13,763,321
|
|
|
40
|
%
|
|
12,269,661
|
|
|
38
|
%
|
|
11,512,770
|
|
|
40
|
%
|
|
10,276,802
|
|
|
40
|
%
|
|
9,624,439
|
|
|
41
|
%
|
|||||
Total commercial
|
|
25,914,252
|
|
|
75
|
%
|
|
24,326,631
|
|
|
75
|
%
|
|
22,210,001
|
|
|
77
|
%
|
|
19,917,365
|
|
|
78
|
%
|
|
18,615,974
|
|
|
79
|
%
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Single-family residential
|
|
7,108,590
|
|
|
20
|
%
|
|
6,036,454
|
|
|
19
|
%
|
|
4,646,289
|
|
|
16
|
%
|
|
3,509,779
|
|
|
14
|
%
|
|
3,069,969
|
|
|
13
|
%
|
|||||
HELOCs
|
|
1,472,783
|
|
|
4
|
%
|
|
1,690,834
|
|
|
5
|
%
|
|
1,782,924
|
|
|
6
|
%
|
|
1,760,776
|
|
|
7
|
%
|
|
1,681,228
|
|
|
7
|
%
|
|||||
Total residential mortgage
|
|
8,581,373
|
|
|
24
|
%
|
|
7,727,288
|
|
|
24
|
%
|
|
6,429,213
|
|
|
22
|
%
|
|
5,270,555
|
|
|
21
|
%
|
|
4,751,197
|
|
|
20
|
%
|
|||||
Other consumer
|
|
282,914
|
|
|
1
|
%
|
|
331,270
|
|
|
1
|
%
|
|
336,504
|
|
|
1
|
%
|
|
315,219
|
|
|
1
|
%
|
|
276,577
|
|
|
1
|
%
|
|||||
Total consumer
|
|
8,864,287
|
|
|
25
|
%
|
|
8,058,558
|
|
|
25
|
%
|
|
6,765,717
|
|
|
23
|
%
|
|
5,585,774
|
|
|
22
|
%
|
|
5,027,774
|
|
|
21
|
%
|
|||||
Total loans held-for-investment (2)
|
|
34,778,539
|
|
|
100
|
%
|
|
32,385,189
|
|
|
100
|
%
|
|
28,975,718
|
|
|
100
|
%
|
|
25,503,139
|
|
|
100
|
%
|
|
23,643,748
|
|
|
100
|
%
|
|||||
Allowance for loan losses
|
|
(358,287
|
)
|
|
|
|
(311,322
|
)
|
|
|
|
(287,128
|
)
|
|
|
|
(260,520
|
)
|
|
|
|
(264,959
|
)
|
|
|
||||||||||
Loans held-for-sale (3)
|
|
434
|
|
|
|
|
275
|
|
|
|
|
78,217
|
|
|
|
|
23,076
|
|
|
|
|
31,958
|
|
|
|
||||||||||
Total loans, net
|
|
$
|
34,420,686
|
|
|
|
|
$
|
32,074,142
|
|
|
|
|
$
|
28,766,807
|
|
|
|
|
$
|
25,265,695
|
|
|
|
|
$
|
23,410,747
|
|
|
|
|||||
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(43.2) million, $(48.9) million, $(34.0) million, $1.2 million and $(16.0) million as of December 31, 2019, 2018, 2017, 2016 and 2015, respectively.
|
(2)
|
Includes ASC 310-30 discount of $14.3 million, $22.2 million, $35.3 million, $49.4 million and $80.1 million as of December 31, 2019, 2018, 2017, 2016 and 2015, respectively.
|
(3)
|
Includes $78.1 million of loans held-for-sale in Branch assets held-for-sale as of December 31, 2017.
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total
|
|
%
|
|||||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Southern California
|
|
$
|
5,446,786
|
|
|
|
|
$
|
1,728,086
|
|
|
|
|
$
|
247,170
|
|
|
|
|
$
|
7,422,042
|
|
|
|
||||
Northern California
|
|
2,359,808
|
|
|
|
|
603,135
|
|
|
|
|
203,706
|
|
|
|
|
3,166,649
|
|
|
|
||||||||
California
|
|
7,806,594
|
|
|
76
|
%
|
|
2,331,221
|
|
|
82
|
%
|
|
450,876
|
|
|
72
|
%
|
|
10,588,691
|
|
|
77
|
%
|
||||
New York
|
|
701,902
|
|
|
7
|
%
|
|
116,923
|
|
|
4
|
%
|
|
79,962
|
|
|
13
|
%
|
|
898,787
|
|
|
7
|
%
|
||||
Texas
|
|
628,576
|
|
|
6
|
%
|
|
124,646
|
|
|
4
|
%
|
|
8,604
|
|
|
1
|
%
|
|
761,826
|
|
|
6
|
%
|
||||
Washington
|
|
306,247
|
|
|
3
|
%
|
|
55,913
|
|
|
2
|
%
|
|
37,552
|
|
|
6
|
%
|
|
399,712
|
|
|
3
|
%
|
||||
Arizona
|
|
149,151
|
|
|
1
|
%
|
|
37,208
|
|
|
1
|
%
|
|
6,951
|
|
|
1
|
%
|
|
193,310
|
|
|
1
|
%
|
||||
Nevada
|
|
102,891
|
|
|
1
|
%
|
|
138,577
|
|
|
5
|
%
|
|
40
|
|
|
0
|
%
|
|
241,508
|
|
|
2
|
%
|
||||
Other markets
|
|
583,087
|
|
|
6
|
%
|
|
51,886
|
|
|
2
|
%
|
|
44,514
|
|
|
7
|
%
|
|
679,487
|
|
|
4
|
%
|
||||
Total loans (1)
|
|
$
|
10,278,448
|
|
|
100
|
%
|
|
$
|
2,856,374
|
|
|
100
|
%
|
|
$
|
628,499
|
|
|
100
|
%
|
|
$
|
13,763,321
|
|
|
100
|
%
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total
|
|
%
|
|||||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Southern California
|
|
$
|
5,106,098
|
|
|
|
|
$
|
1,512,753
|
|
|
|
|
$
|
215,370
|
|
|
|
|
$
|
6,834,221
|
|
|
|
||||
Northern California
|
|
2,112,789
|
|
|
|
|
600,566
|
|
|
|
|
133,828
|
|
|
|
|
2,847,183
|
|
|
|
||||||||
California
|
|
7,218,887
|
|
|
79
|
%
|
|
2,113,319
|
|
|
86
|
%
|
|
349,198
|
|
|
65
|
%
|
|
9,681,404
|
|
|
79
|
%
|
||||
New York
|
|
651,510
|
|
|
7
|
%
|
|
110,840
|
|
|
4
|
%
|
|
46,702
|
|
|
9
|
%
|
|
809,052
|
|
|
7
|
%
|
||||
Texas
|
|
508,473
|
|
|
5
|
%
|
|
72,585
|
|
|
3
|
%
|
|
12,055
|
|
|
2
|
%
|
|
593,113
|
|
|
5
|
%
|
||||
Washington
|
|
288,522
|
|
|
3
|
%
|
|
58,294
|
|
|
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
|
|
389,781
|
|
|
4
|
%
|
|
46,770
|
|
|
2
|
%
|
|
28,973
|
|
|
5
|
%
|
|
465,524
|
|
|
3
|
%
|
||||
Total loans (1)
|
|
$
|
9,260,199
|
|
|
100
|
%
|
|
$
|
2,470,668
|
|
|
100
|
%
|
|
$
|
538,794
|
|
|
100
|
%
|
|
$
|
12,269,661
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||
|
2019
|
|
2018
|
|||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Property types:
|
|
|
|
|
|
|
|
|
||||||
Retail
|
|
$
|
3,300,106
|
|
|
32
|
%
|
|
$
|
3,171,374
|
|
|
34
|
%
|
Office
|
|
2,375,087
|
|
|
23
|
%
|
|
2,160,382
|
|
|
23
|
%
|
||
Industrial
|
|
2,163,769
|
|
|
21
|
%
|
|
1,883,444
|
|
|
20
|
%
|
||
Hotel/Motel
|
|
1,865,031
|
|
|
18
|
%
|
|
1,619,905
|
|
|
17
|
%
|
||
Other
|
|
574,455
|
|
|
6
|
%
|
|
425,094
|
|
|
6
|
%
|
||
Total CRE loans (1)
|
|
$
|
10,278,448
|
|
|
100
|
%
|
|
$
|
9,260,199
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
|||||||||||||||||||
|
Single-
Family
Residential
|
|
%
|
|
HELOCs
|
|
%
|
|
Total
|
|
%
|
||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Southern California
|
|
$
|
3,081,368
|
|
|
|
|
$
|
702,915
|
|
|
|
|
$
|
3,784,283
|
|
|
|
|||
Northern California
|
|
1,038,945
|
|
|
|
|
309,883
|
|
|
|
|
1,348,828
|
|
|
|
||||||
California
|
|
4,120,313
|
|
|
58
|
%
|
|
1,012,798
|
|
|
69
|
%
|
|
5,133,111
|
|
|
60
|
%
|
|||
New York
|
|
1,657,732
|
|
|
23
|
%
|
|
257,344
|
|
|
17
|
%
|
|
1,915,076
|
|
|
22
|
%
|
|||
Washington
|
|
630,307
|
|
|
9
|
%
|
|
133,625
|
|
|
9
|
%
|
|
763,932
|
|
|
9
|
%
|
|||
Massachusetts
|
|
235,393
|
|
|
3
|
%
|
|
31,310
|
|
|
2
|
%
|
|
266,703
|
|
|
3
|
%
|
|||
Texas
|
|
188,838
|
|
|
3
|
%
|
|
—
|
|
|
—
|
%
|
|
188,838
|
|
|
2
|
%
|
|||
Other markets
|
|
276,007
|
|
|
4
|
%
|
|
37,706
|
|
|
3
|
%
|
|
313,713
|
|
|
4
|
%
|
|||
Total (1)
|
|
$
|
7,108,590
|
|
|
100
|
%
|
|
$
|
1,472,783
|
|
|
100
|
%
|
|
$
|
8,581,373
|
|
|
100
|
%
|
Lien priority:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First mortgage
|
|
$
|
7,108,588
|
|
|
100
|
%
|
|
$
|
1,238,186
|
|
|
84
|
%
|
|
$
|
8,346,774
|
|
|
97
|
%
|
Junior lien mortgage
|
|
2
|
|
|
0
|
%
|
|
234,597
|
|
|
16
|
%
|
|
234,599
|
|
|
3
|
%
|
|||
Total (1)
|
|
$
|
7,108,590
|
|
|
100
|
%
|
|
$
|
1,472,783
|
|
|
100
|
%
|
|
$
|
8,581,373
|
|
|
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
|
%
|
|||
Texas
|
|
165,873
|
|
|
3
|
%
|
|
—
|
|
|
—
|
%
|
|
165,873
|
|
|
2
|
%
|
|||
Other markets
|
|
202,949
|
|
|
4
|
%
|
|
39,332
|
|
|
2
|
%
|
|
242,281
|
|
|
3
|
%
|
|||
Total (1)
|
|
$
|
6,036,454
|
|
|
100
|
%
|
|
$
|
1,690,834
|
|
|
100
|
%
|
|
$
|
7,727,288
|
|
|
100
|
%
|
Lien priority:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First mortgage
|
|
$
|
6,036,450
|
|
|
100
|
%
|
|
$
|
1,438,414
|
|
|
85
|
%
|
|
$
|
7,474,864
|
|
|
97
|
%
|
Junior lien mortgage
|
|
4
|
|
|
0
|
%
|
|
252,420
|
|
|
15
|
%
|
|
252,424
|
|
|
3
|
%
|
|||
Total (1)
|
|
$
|
6,036,454
|
|
|
100
|
%
|
|
$
|
1,690,834
|
|
|
100
|
%
|
|
$
|
7,727,288
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||
($ in thousands)
|
|
Due within
one year |
|
Due after one
year through five years |
|
Due after
five years |
|
Total
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
4,376,313
|
|
|
$
|
6,365,319
|
|
|
$
|
1,409,299
|
|
|
$
|
12,150,931
|
|
CRE:
|
|
|
|
|
|
|
|
|
||||||||
CRE
|
|
811,433
|
|
|
4,067,649
|
|
|
5,399,366
|
|
|
10,278,448
|
|
||||
Multifamily residential
|
|
89,387
|
|
|
564,010
|
|
|
2,202,977
|
|
|
2,856,374
|
|
||||
Construction and land
|
|
354,755
|
|
|
222,276
|
|
|
51,468
|
|
|
628,499
|
|
||||
Total CRE
|
|
1,255,575
|
|
|
4,853,935
|
|
|
7,653,811
|
|
|
13,763,321
|
|
||||
Total commercial
|
|
5,631,888
|
|
|
11,219,254
|
|
|
9,063,110
|
|
|
25,914,252
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
159
|
|
|
9,389
|
|
|
7,099,042
|
|
|
7,108,590
|
|
||||
HELOCs
|
|
—
|
|
|
159
|
|
|
1,472,624
|
|
|
1,472,783
|
|
||||
Total residential mortgage
|
|
159
|
|
|
9,548
|
|
|
8,571,666
|
|
|
8,581,373
|
|
||||
Other consumer
|
|
193,319
|
|
|
75,238
|
|
|
14,357
|
|
|
282,914
|
|
||||
Total consumer
|
|
193,478
|
|
|
84,786
|
|
|
8,586,023
|
|
|
8,864,287
|
|
||||
Total loans held-for-investment (1)
|
|
$
|
5,825,366
|
|
|
$
|
11,304,040
|
|
|
$
|
17,649,133
|
|
|
$
|
34,778,539
|
|
|
|
|
|
|
|
|
|
|
||||||||
Distribution of loans to changes in interest rates:
|
|
|
|
|
|
|
|
|
||||||||
Variable-rate loans
|
|
$
|
4,924,842
|
|
|
$
|
9,996,181
|
|
|
$
|
8,815,263
|
|
|
$
|
23,736,286
|
|
Fixed-rate loans
|
|
900,524
|
|
|
1,128,812
|
|
|
2,362,846
|
|
|
4,392,182
|
|
||||
Hybrid adjustable-rate loans
|
|
—
|
|
|
179,047
|
|
|
6,471,024
|
|
|
6,650,071
|
|
||||
Total loans held-for-investment (1)
|
|
$
|
5,825,366
|
|
|
$
|
11,304,040
|
|
|
$
|
17,649,133
|
|
|
$
|
34,778,539
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2019
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
|
|
CRE
|
|
Residential Mortgage
|
|
|
|
||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential
|
|
Construction
and Land
|
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer
|
|
||||||||||||||||||
Loans purchased
|
|
$
|
397,615
|
|
|
$
|
—
|
|
|
$
|
8,988
|
|
|
$
|
—
|
|
|
$
|
117,227
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
523,830
|
|
Loans transferred from held-for-investment to held-for-sale
|
|
$
|
245,002
|
|
|
$
|
39,062
|
|
|
$
|
—
|
|
|
$
|
1,573
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
285,637
|
|
Write-downs to allowance for loan losses
|
|
$
|
(789
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(789
|
)
|
Loans sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amount
|
|
$
|
179,280
|
|
|
$
|
39,062
|
|
|
$
|
—
|
|
|
$
|
1,573
|
|
|
$
|
10,410
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
230,325
|
|
Net gains
|
|
$
|
875
|
|
|
$
|
3,045
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
115
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,035
|
|
Purchased loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amount
|
|
$
|
66,511
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66,510
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
|
|
CRE
|
|
Residential Mortgage
|
|
|
|
||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential
|
|
Construction
and Land
|
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer
|
|
||||||||||||||||||
Loans purchased
|
|
$
|
525,767
|
|
|
$
|
—
|
|
|
$
|
7,389
|
|
|
$
|
—
|
|
|
$
|
63,781
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
596,937
|
|
Loans transferred from held-for-investment to held-for-sale
|
|
$
|
404,321
|
|
|
$
|
62,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,981
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
481,593
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
2,306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,306
|
|
Write-downs to allowance for loan losses
|
|
$
|
(14,620
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(14,620
|
)
|
Loans sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amount
|
|
$
|
212,485
|
|
|
$
|
62,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,966
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
309,742
|
|
Net gains
|
|
$
|
1,129
|
|
|
$
|
4,876
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
552
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,557
|
|
Purchased loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amount
|
|
$
|
201,359
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
201,359
|
|
Net gains
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
|
|
CRE
|
|
Residential Mortgage
|
|
|
|
||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential
|
|
Construction
and Land
|
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer
|
|
||||||||||||||||||
Loans purchased
|
|
$
|
503,359
|
|
|
$
|
—
|
|
|
$
|
2,311
|
|
|
$
|
—
|
|
|
$
|
29,060
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
534,730
|
|
Loans transferred from held-for-investment to held-for-sale
|
|
$
|
476,644
|
|
|
$
|
52,217
|
|
|
$
|
531
|
|
|
$
|
1,609
|
|
|
$
|
249
|
|
|
$
|
—
|
|
|
$
|
3,706
|
|
|
$
|
534,956
|
|
Write-downs to allowance for loan losses
|
|
$
|
(473
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(473
|
)
|
Loans sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amount
|
|
$
|
99,064
|
|
|
$
|
52,217
|
|
|
$
|
531
|
|
|
$
|
1,609
|
|
|
$
|
21,058
|
|
|
$
|
—
|
|
|
$
|
3,726
|
|
|
$
|
178,205
|
|
Net gains
|
|
$
|
1,740
|
|
|
$
|
6,207
|
|
|
$
|
19
|
|
|
$
|
94
|
|
|
$
|
283
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,343
|
|
Purchased loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amount
|
|
$
|
377,580
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,179
|
|
|
$
|
399,759
|
|
Net gains (losses)
|
|
$
|
1,644
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,056
|
)
|
|
$
|
588
|
|
Valuation adjustments (2)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(61
|
)
|
|
$
|
(61
|
)
|
|
(1)
|
Net gains on sales of purchased loans in 2019 were insignificant.
|
(2)
|
The Company records valuation adjustments in Net gains on sales of loans on the Consolidated Statement of Income to carry the loans held-for-sale portfolio at the lower of cost or fair value.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
|
Change
|
|||||||||||||||||
|
2019
|
|
2018
|
|
|||||||||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
$
|
|
%
|
||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing demand
|
|
$
|
11,080,036
|
|
|
30
|
%
|
|
$
|
11,377,009
|
|
|
32
|
%
|
|
$
|
(296,973
|
)
|
|
(3
|
)%
|
Interest-bearing checking
|
|
5,200,755
|
|
|
14
|
%
|
|
4,584,447
|
|
|
13
|
%
|
|
616,308
|
|
|
13
|
%
|
|||
Money market
|
|
8,711,964
|
|
|
23
|
%
|
|
8,262,677
|
|
|
23
|
%
|
|
449,287
|
|
|
5
|
%
|
|||
Savings
|
|
2,117,196
|
|
|
6
|
%
|
|
2,146,429
|
|
|
6
|
%
|
|
(29,233
|
)
|
|
(1
|
)%
|
|||
Time deposits
|
|
10,214,308
|
|
|
27
|
%
|
|
9,069,066
|
|
|
26
|
%
|
|
1,145,242
|
|
|
13
|
%
|
|||
Total deposits
|
|
$
|
37,324,259
|
|
|
100
|
%
|
|
$
|
35,439,628
|
|
|
100
|
%
|
|
$
|
1,884,631
|
|
|
5
|
%
|
Other Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Short-term borrowings
|
|
$
|
28,669
|
|
|
|
|
$
|
57,638
|
|
|
|
|
$
|
(28,969
|
)
|
|
(50
|
)%
|
||
FHLB advances
|
|
745,915
|
|
|
|
|
326,172
|
|
|
|
|
419,743
|
|
|
129
|
%
|
|||||
Repurchase agreements
|
|
200,000
|
|
|
|
|
50,000
|
|
|
|
|
150,000
|
|
|
300
|
%
|
|||||
Long-term debt
|
|
147,101
|
|
|
|
|
146,835
|
|
|
|
|
266
|
|
|
0
|
%
|
|||||
Total other funds
|
|
$
|
1,121,685
|
|
|
|
|
$
|
580,645
|
|
|
|
|
$
|
541,040
|
|
|
93
|
%
|
||
Total sources of funds
|
|
$
|
38,445,944
|
|
|
|
|
$
|
36,020,273
|
|
|
|
|
$
|
2,425,671
|
|
|
7
|
%
|
||
|
|
||||
($ in thousands)
|
|
December 31, 2019
|
||
3 months or less
|
|
$
|
2,922,242
|
|
Over 3 months through 6 months
|
|
1,829,332
|
|
|
Over 6 months through 12 months
|
|
1,849,287
|
|
|
Over 12 months
|
|
413,421
|
|
|
Total
|
|
$
|
7,014,282
|
|
|
|
||||||||
($ in thousands)
|
|
2019
|
|
2018
|
||||
Year-end balance
|
|
$
|
28,669
|
|
|
$
|
57,638
|
|
Weighted-average rate on amount outstanding at year-end
|
|
3.69
|
%
|
|
4.21
|
%
|
||
Maximum month-end balance
|
|
$
|
59,225
|
|
|
$
|
58,523
|
|
Average amount outstanding
|
|
$
|
44,511
|
|
|
$
|
31,612
|
|
Weighted-average rate
|
|
3.90
|
%
|
|
4.28
|
%
|
||
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||
|
Amount
|
|
% of Total
Consolidated
Assets
|
|
Amount
|
|
% of Total
Consolidated
Assets
|
|
Amount
|
|
% of Total
Consolidated Assets |
||||||||||
Hong Kong Branch:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
$
|
511,639
|
|
|
1
|
%
|
|
$
|
360,786
|
|
|
1
|
%
|
|
$
|
151,631
|
|
|
0
|
%
|
AFS investment securities (1)
|
|
$
|
204,948
|
|
|
0
|
%
|
|
$
|
221,932
|
|
|
1
|
%
|
|
$
|
242,107
|
|
|
1
|
%
|
Loans held-for-investment (2)(3)
|
|
$
|
573,305
|
|
|
1
|
%
|
|
$
|
653,860
|
|
|
2
|
%
|
|
$
|
713,728
|
|
|
2
|
%
|
Total assets
|
|
$
|
1,361,652
|
|
|
3
|
%
|
|
$
|
1,247,207
|
|
|
3
|
%
|
|
$
|
1,104,497
|
|
|
3
|
%
|
Subsidiary Bank in China:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
$
|
548,930
|
|
|
1
|
%
|
|
$
|
695,527
|
|
|
2
|
%
|
|
$
|
626,658
|
|
|
2
|
%
|
Interest-bearing deposits with banks
|
|
$
|
142,587
|
|
|
0
|
%
|
|
$
|
221,000
|
|
|
1
|
%
|
|
$
|
188,422
|
|
|
1
|
%
|
Loans held-for-investment (3)
|
|
$
|
819,110
|
|
|
2
|
%
|
|
$
|
777,412
|
|
|
2
|
%
|
|
$
|
484,214
|
|
|
1
|
%
|
Total assets
|
|
$
|
1,520,627
|
|
|
3
|
%
|
|
$
|
1,700,357
|
|
|
4
|
%
|
|
$
|
1,303,199
|
|
|
4
|
%
|
|
(1)
|
Comprises of foreign bonds and U.S. Treasury securities as of both December 31, 2019 and 2018. Comprised of U.S. Treasury securities, U.S. government agency and U.S. government sponsored enterprise debt securities, and foreign bonds as of December 31, 2017.
|
(2)
|
Includes ASC 310-30 discount of $42 thousand, $103 thousand and $353 thousand as of December 31, 2019, 2018 and 2017, respectively.
|
(3)
|
Primarily comprises of C&I loans.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||
|
Amount
|
|
% of Total
Consolidated Revenue |
|
Amount
|
|
% of Total
Consolidated Revenue |
|
Amount
|
|
% of Total
Consolidated Revenue |
||||||||||
Hong Kong Branch:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total revenue
|
|
$
|
33,791
|
|
|
2
|
%
|
|
$
|
31,122
|
|
|
2
|
%
|
|
$
|
28,096
|
|
|
2
|
%
|
Subsidiary Bank in China:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total revenue
|
|
$
|
32,071
|
|
|
2
|
%
|
|
$
|
34,143
|
|
|
2
|
%
|
|
$
|
24,235
|
|
|
2
|
%
|
|
|
|||||||||||||||||||||
|
|
Basel III Capital Rules
|
|||||||||||||||||||
|
December 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
|
|
|
|
|||||||||||
Risk-Based Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
CET 1 capital
|
|
12.9
|
%
|
|
12.9
|
%
|
|
12.2
|
%
|
|
12.1
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
|
7.0
|
%
|
Tier 1 capital
|
|
12.9
|
%
|
|
12.9
|
%
|
|
12.2
|
%
|
|
12.1
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
|
8.5
|
%
|
Total capital
|
|
14.4
|
%
|
|
13.9
|
%
|
|
13.7
|
%
|
|
13.1
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
|
10.5
|
%
|
Tier 1 leverage (1)
|
|
10.3
|
%
|
|
10.3
|
%
|
|
9.9
|
%
|
|
9.8
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
4.0
|
%
|
|
(1)
|
The Tier 1 leverage well-capitalized requirement applies to the Bank only since there is no Tier 1 leverage ratio component in the definition of a well-capitalized bank holding company.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Payment Due by Period
|
||||||||||||||||||||||
|
Less than
1 year |
|
1-3 years
|
|
3-5 years
|
|
After
5 years |
|
Indeterminate
Maturity (1) |
|
Total
|
|||||||||||||
On-balance sheet obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits
|
|
$
|
9,653,276
|
|
|
$
|
488,295
|
|
|
$
|
43,657
|
|
|
$
|
29,080
|
|
|
$
|
27,109,951
|
|
|
$
|
37,324,259
|
|
FHLB advances
|
|
100,000
|
|
|
645,915
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
745,915
|
|
||||||
Gross repurchase agreements
|
|
—
|
|
|
150,000
|
|
|
300,000
|
|
|
—
|
|
|
—
|
|
|
450,000
|
|
||||||
Affordable housing partnership and other tax credit investment commitments
|
|
121,875
|
|
|
45,498
|
|
|
23,898
|
|
|
2,538
|
|
|
—
|
|
|
193,809
|
|
||||||
Short-term borrowings
|
|
28,669
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,669
|
|
||||||
Long-term debt (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147,101
|
|
|
—
|
|
|
147,101
|
|
||||||
Operating lease liabilities
|
|
29,747
|
|
|
44,509
|
|
|
19,725
|
|
|
14,102
|
|
|
—
|
|
|
108,083
|
|
||||||
Finance lease liabilities
|
|
930
|
|
|
1,548
|
|
|
397
|
|
|
2,294
|
|
|
—
|
|
|
5,169
|
|
||||||
Projected cash payments for post-retirement benefit plan
|
|
339
|
|
|
708
|
|
|
751
|
|
|
7,103
|
|
|
—
|
|
|
8,901
|
|
||||||
Total on-balance sheet obligations
|
|
9,934,836
|
|
|
1,376,473
|
|
|
388,428
|
|
|
202,218
|
|
|
27,109,951
|
|
|
39,011,906
|
|
||||||
Off-balance sheet obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contractual interest payments (3)
|
|
201,752
|
|
|
78,506
|
|
|
22,231
|
|
|
62,684
|
|
|
—
|
|
|
365,173
|
|
||||||
Total off-balance sheet obligations
|
|
201,752
|
|
|
78,506
|
|
|
22,231
|
|
|
62,684
|
|
|
—
|
|
|
365,173
|
|
||||||
Total contractual obligations
|
|
$
|
10,136,588
|
|
|
$
|
1,454,979
|
|
|
$
|
410,659
|
|
|
$
|
264,902
|
|
|
$
|
27,109,951
|
|
|
$
|
39,377,079
|
|
|
(1)
|
Includes deposits with no defined maturity, such as noninterest-bearing demand, interest-bearing checking, money-market and savings accounts.
|
(2)
|
Represents junior subordinated debt, which is subject to call options where early redemption requires appropriate notice.
|
(3)
|
Represents the future interest obligations related to interest-bearing time deposits, FHLB, gross repurchase agreements, short-term borrowings, long-term debt and financing lease liabilities in the normal course of business. These interest obligations assume no early debt redemption. The Company estimated variable interest rate payments using December 31, 2019 rates, which the company held constant until maturity.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
74,835
|
|
|
$
|
43,840
|
|
|
$
|
69,213
|
|
|
$
|
81,256
|
|
|
$
|
64,883
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
16,441
|
|
|
24,218
|
|
|
26,986
|
|
|
26,907
|
|
|
29,345
|
|
|||||
Multifamily residential
|
|
819
|
|
|
1,260
|
|
|
1,717
|
|
|
2,984
|
|
|
16,268
|
|
|||||
Construction and land
|
|
—
|
|
|
—
|
|
|
3,973
|
|
|
5,326
|
|
|
700
|
|
|||||
Total CRE
|
|
17,260
|
|
|
25,478
|
|
|
32,676
|
|
|
35,217
|
|
|
46,313
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
14,865
|
|
|
5,259
|
|
|
5,923
|
|
|
4,214
|
|
|
8,759
|
|
|||||
HELOCs
|
|
10,742
|
|
|
8,614
|
|
|
4,006
|
|
|
2,130
|
|
|
1,743
|
|
|||||
Total residential mortgage
|
|
25,607
|
|
|
13,873
|
|
|
9,929
|
|
|
6,344
|
|
|
10,502
|
|
|||||
Other consumer
|
|
2,517
|
|
|
2,502
|
|
|
2,491
|
|
|
—
|
|
|
—
|
|
|||||
Total nonaccrual loans
|
|
120,219
|
|
|
85,693
|
|
|
114,309
|
|
|
122,817
|
|
|
121,698
|
|
|||||
OREO, net
|
|
125
|
|
|
133
|
|
|
830
|
|
|
6,745
|
|
|
7,034
|
|
|||||
Other nonperforming assets
|
|
1,167
|
|
|
7,167
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming assets
|
|
$
|
121,511
|
|
|
$
|
92,993
|
|
|
$
|
115,139
|
|
|
$
|
129,562
|
|
|
$
|
128,732
|
|
Non-PCI nonperforming assets to total assets (1)
|
|
0.27
|
%
|
|
0.23
|
%
|
|
0.31
|
%
|
|
0.37
|
%
|
|
0.40
|
%
|
|||||
Non-PCI nonaccrual loans to loans held-for-investment (1)
|
|
0.35
|
%
|
|
0.26
|
%
|
|
0.39
|
%
|
|
0.48
|
%
|
|
0.51
|
%
|
|||||
Troubled debt restructurings (“TDR”) included in nonperforming loans
|
|
$
|
54,566
|
|
|
$
|
30,315
|
|
|
$
|
62,909
|
|
|
$
|
38,983
|
|
|
$
|
53,095
|
|
Allowance for loan losses to non-PCI nonaccrual loans
|
|
298.03
|
%
|
|
363.30
|
%
|
|
251.19
|
%
|
|
212.12
|
%
|
|
217.72
|
%
|
|||||
|
(1)
|
Total assets and loans held-for-investment include PCI loans of $222.9 million, $308.0 million, $482.3 million, $642.4 million and $970.8 million as of December 31, 2019, 2018, 2017, 2016 and 2015, respectively.
|
|
||||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||||
|
2019
|
|
2018
|
|||||||||||||
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
39,208
|
|
|
$
|
41,014
|
|
|
$
|
13,248
|
|
|
$
|
10,715
|
|
CRE:
|
|
|
|
|
|
|
|
|
||||||||
CRE
|
|
5,177
|
|
|
11,503
|
|
|
6,134
|
|
|
17,272
|
|
||||
Multifamily residential
|
|
3,644
|
|
|
229
|
|
|
4,300
|
|
|
260
|
|
||||
Construction and land
|
|
19,691
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total CRE
|
|
28,512
|
|
|
11,732
|
|
|
10,434
|
|
|
17,532
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
7,346
|
|
|
1,098
|
|
|
8,201
|
|
|
325
|
|
||||
HELOCs
|
|
2,832
|
|
|
722
|
|
|
1,342
|
|
|
1,743
|
|
||||
Total residential mortgage
|
|
10,178
|
|
|
1,820
|
|
|
9,543
|
|
|
2,068
|
|
||||
Total TDRs
|
|
$
|
77,898
|
|
|
$
|
54,566
|
|
|
$
|
33,225
|
|
|
$
|
30,315
|
|
|
|
||||||||||||||
($ in thousands)
|
|
December 31,
|
||||||||||||
|
2019
|
|
2018
|
|||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
114,042
|
|
|
58
|
%
|
|
$
|
57,088
|
|
|
48
|
%
|
CRE:
|
|
|
|
|
|
|
|
|
||||||
CRE
|
|
21,618
|
|
|
11
|
%
|
|
30,352
|
|
|
26
|
%
|
||
Multifamily residential
|
|
4,464
|
|
|
2
|
%
|
|
5,560
|
|
|
5
|
%
|
||
Construction and land
|
|
19,691
|
|
|
10
|
%
|
|
—
|
|
|
—
|
%
|
||
Total CRE
|
|
45,773
|
|
|
23
|
%
|
|
35,912
|
|
|
31
|
%
|
||
Total commercial
|
|
159,815
|
|
|
81
|
%
|
|
93,000
|
|
|
79
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
22,211
|
|
|
11
|
%
|
|
13,460
|
|
|
11
|
%
|
||
HELOCs
|
|
13,574
|
|
|
7
|
%
|
|
9,956
|
|
|
8
|
%
|
||
Total residential mortgage
|
|
35,785
|
|
|
18
|
%
|
|
23,416
|
|
|
19
|
%
|
||
Other consumer
|
|
2,517
|
|
|
1
|
%
|
|
2,502
|
|
|
2
|
%
|
||
Total consumer
|
|
38,302
|
|
|
19
|
%
|
|
25,918
|
|
|
21
|
%
|
||
Total non-PCI impaired loans
|
|
$
|
198,117
|
|
|
100
|
%
|
|
$
|
118,918
|
|
|
100
|
%
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||
Allowance for loan losses, beginning of period
|
|
$
|
311,322
|
|
|
$
|
287,128
|
|
|
$
|
260,520
|
|
|
$
|
264,959
|
|
|
$
|
261,679
|
|
Provision for loan losses
|
|
100,093
|
|
|
65,007
|
|
|
49,069
|
|
|
31,718
|
|
|
6,569
|
|
|||||
Gross charge-offs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
(73,985
|
)
|
|
(59,244
|
)
|
|
(38,118
|
)
|
|
(47,739
|
)
|
|
(20,423
|
)
|
|||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
(1,021
|
)
|
|
—
|
|
|
—
|
|
|
(464
|
)
|
|
(1,052
|
)
|
|||||
Multifamily residential
|
|
—
|
|
|
—
|
|
|
(635
|
)
|
|
(29
|
)
|
|
(1,650
|
)
|
|||||
Construction and land
|
|
—
|
|
|
—
|
|
|
(149
|
)
|
|
(117
|
)
|
|
(493
|
)
|
|||||
Total CRE
|
|
(1,021
|
)
|
|
—
|
|
|
(784
|
)
|
|
(610
|
)
|
|
(3,195
|
)
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
(11
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(137
|
)
|
|
(36
|
)
|
|||||
HELOCs
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
(9
|
)
|
|
(98
|
)
|
|||||
Total residential mortgage
|
|
(11
|
)
|
|
(1
|
)
|
|
(56
|
)
|
|
(146
|
)
|
|
(134
|
)
|
|||||
Other consumer
|
|
(50
|
)
|
|
(188
|
)
|
|
(17
|
)
|
|
(13
|
)
|
|
(502
|
)
|
|||||
Total gross charge-offs
|
|
(75,067
|
)
|
|
(59,433
|
)
|
|
(38,975
|
)
|
|
(48,508
|
)
|
|
(24,254
|
)
|
|||||
Gross recoveries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
14,501
|
|
|
10,417
|
|
|
11,371
|
|
|
9,003
|
|
|
9,259
|
|
|||||
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
5,209
|
|
|
5,194
|
|
|
2,111
|
|
|
1,488
|
|
|
2,488
|
|
|||||
Multifamily residential
|
|
1,856
|
|
|
1,757
|
|
|
1,357
|
|
|
1,476
|
|
|
4,298
|
|
|||||
Construction and land
|
|
536
|
|
|
740
|
|
|
259
|
|
|
203
|
|
|
4,647
|
|
|||||
Total CRE
|
|
7,601
|
|
|
7,691
|
|
|
3,727
|
|
|
3,167
|
|
|
11,433
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
136
|
|
|
1,214
|
|
|
546
|
|
|
401
|
|
|
323
|
|
|||||
HELOCs
|
|
7
|
|
|
38
|
|
|
24
|
|
|
7
|
|
|
54
|
|
|||||
Total residential mortgage
|
|
143
|
|
|
1,252
|
|
|
570
|
|
|
408
|
|
|
377
|
|
|||||
Other consumer
|
|
19
|
|
|
3
|
|
|
152
|
|
|
323
|
|
|
373
|
|
|||||
Total gross recoveries
|
|
22,264
|
|
|
19,363
|
|
|
15,820
|
|
|
12,901
|
|
|
21,442
|
|
|||||
Net charge-offs
|
|
(52,803
|
)
|
|
(40,070
|
)
|
|
(23,155
|
)
|
|
(35,607
|
)
|
|
(2,812
|
)
|
|||||
Foreign currency translation adjustments
|
|
(325
|
)
|
|
(743
|
)
|
|
694
|
|
|
(550
|
)
|
|
(477
|
)
|
|||||
Allowance for loan losses, end of period
|
|
358,287
|
|
|
311,322
|
|
|
287,128
|
|
|
260,520
|
|
|
264,959
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for unfunded credit commitments, beginning of period
|
|
12,566
|
|
|
13,318
|
|
|
16,121
|
|
|
20,360
|
|
|
12,712
|
|
|||||
(Reversal of) provision for unfunded credit commitments
|
|
(1,408
|
)
|
|
(752
|
)
|
|
(2,803
|
)
|
|
(4,239
|
)
|
|
7,648
|
|
|||||
Allowance for unfunded credit commitments, end of period
|
|
11,158
|
|
|
12,566
|
|
|
13,318
|
|
|
16,121
|
|
|
20,360
|
|
|||||
Allowance for credit losses
|
|
$
|
369,445
|
|
|
$
|
323,888
|
|
|
$
|
300,446
|
|
|
$
|
276,641
|
|
|
$
|
285,319
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average loans held-for-investment
|
|
$
|
33,372,890
|
|
|
$
|
30,209,219
|
|
|
$
|
27,237,981
|
|
|
$
|
24,223,535
|
|
|
$
|
22,140,443
|
|
Loans held-for-investment
|
|
$
|
34,778,539
|
|
|
$
|
32,385,189
|
|
|
$
|
28,975,718
|
|
|
$
|
25,503,139
|
|
|
$
|
23,643,748
|
|
Allowance for loan losses to loans held-for-investment
|
|
1.03
|
%
|
|
0.96
|
%
|
|
0.99
|
%
|
|
1.02
|
%
|
|
1.12
|
%
|
|||||
Net charge-offs to average loans held-for-investment
|
|
0.16
|
%
|
|
0.13
|
%
|
|
0.08
|
%
|
|
0.15
|
%
|
|
0.01
|
%
|
|||||
|
|
|||||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||
|
Allowance
Allocation
|
|
Loans as % of
Total
Loans
|
|
Allowance
Allocation |
|
Loans as % of
Total Loans |
|
Allowance
Allocation |
|
Loans as % of
Total Loans |
|
Allowance
Allocation |
|
Loans as % of
Total Loans |
|
Allowance
Allocation |
|
Loans as % of
Total Loans |
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
C&I
|
|
$
|
238,376
|
|
|
35
|
%
|
|
$
|
189,117
|
|
|
37
|
%
|
|
$
|
163,058
|
|
|
37
|
%
|
|
$
|
142,167
|
|
|
38
|
%
|
|
$
|
134,606
|
|
|
38
|
%
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
CRE
|
|
40,509
|
|
|
30
|
%
|
|
40,666
|
|
|
28
|
%
|
|
40,809
|
|
|
31
|
%
|
|
47,559
|
|
|
31
|
%
|
|
58,623
|
|
|
32
|
%
|
|||||
Multifamily residential
|
|
22,826
|
|
|
8
|
%
|
|
19,885
|
|
|
8
|
%
|
|
19,537
|
|
|
7
|
%
|
|
17,911
|
|
|
6
|
%
|
|
19,630
|
|
|
6
|
%
|
|||||
Construction and land
|
|
19,404
|
|
|
2
|
%
|
|
20,290
|
|
|
2
|
%
|
|
26,881
|
|
|
2
|
%
|
|
24,989
|
|
|
3
|
%
|
|
22,915
|
|
|
3
|
%
|
|||||
Total CRE
|
|
82,739
|
|
|
40
|
%
|
|
80,841
|
|
|
38
|
%
|
|
87,227
|
|
|
40
|
%
|
|
90,459
|
|
|
40
|
%
|
|
101,168
|
|
|
41
|
%
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Single-family residential
|
|
28,527
|
|
|
20
|
%
|
|
31,340
|
|
|
19
|
%
|
|
26,362
|
|
|
16
|
%
|
|
19,795
|
|
|
14
|
%
|
|
19,665
|
|
|
13
|
%
|
|||||
HELOCs
|
|
5,265
|
|
|
4
|
%
|
|
5,774
|
|
|
5
|
%
|
|
7,354
|
|
|
6
|
%
|
|
7,506
|
|
|
7
|
%
|
|
8,745
|
|
|
7
|
%
|
|||||
Total residential mortgage
|
|
33,792
|
|
|
24
|
%
|
|
37,114
|
|
|
24
|
%
|
|
33,716
|
|
|
22
|
%
|
|
27,301
|
|
|
21
|
%
|
|
28,410
|
|
|
20
|
%
|
|||||
Other consumer
|
|
3,380
|
|
|
1
|
%
|
|
4,250
|
|
|
1
|
%
|
|
3,127
|
|
|
1
|
%
|
|
593
|
|
|
1
|
%
|
|
775
|
|
|
1
|
%
|
|||||
Total
|
|
$
|
358,287
|
|
|
100
|
%
|
|
$
|
311,322
|
|
|
100
|
%
|
|
$
|
287,128
|
|
|
100
|
%
|
|
$
|
260,520
|
|
|
100
|
%
|
|
$
|
264,959
|
|
|
100
|
%
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Encumbered
|
|
Unencumbered
|
|
Total
|
|
Encumbered
|
|
Unencumbered
|
|
Total
|
|||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
3,261,149
|
|
|
$
|
3,261,149
|
|
|
$
|
—
|
|
|
$
|
3,001,377
|
|
|
$
|
3,001,377
|
|
Interest-bearing deposits with banks
|
|
—
|
|
|
196,161
|
|
|
196,161
|
|
|
—
|
|
|
371,000
|
|
|
371,000
|
|
||||||
Short-term resale agreements
|
|
—
|
|
|
400,000
|
|
|
400,000
|
|
|
—
|
|
|
375,000
|
|
|
375,000
|
|
||||||
AFS investment securities
|
|
479,432
|
|
|
2,837,782
|
|
|
3,317,214
|
|
|
435,833
|
|
|
2,306,014
|
|
|
2,741,847
|
|
||||||
Total
|
|
$
|
479,432
|
|
|
$
|
6,695,092
|
|
|
$
|
7,174,524
|
|
|
$
|
435,833
|
|
|
$
|
6,053,391
|
|
|
$
|
6,489,224
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Net cash provided by operating activities
|
|
$
|
735,829
|
|
|
$
|
883,172
|
|
|
$
|
703,275
|
|
Net cash used in investing activities
|
|
(2,571,176
|
)
|
|
(3,832,412
|
)
|
|
(2,506,824
|
)
|
|||
Net cash provided by financing activities
|
|
2,124,962
|
|
|
3,800,808
|
|
|
2,068,460
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(29,843
|
)
|
|
(24,783
|
)
|
|
31,178
|
|
|||
Net increase in cash and cash equivalents
|
|
259,772
|
|
|
826,785
|
|
|
296,089
|
|
|||
Cash and cash equivalents, beginning of year
|
|
3,001,377
|
|
|
2,174,592
|
|
|
1,878,503
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
3,261,149
|
|
|
$
|
3,001,377
|
|
|
$
|
2,174,592
|
|
|
|
|
|
|
|
|
|
||||||
Change in Interest Rates
(Basis Points)
|
|
Net Interest Income Volatility (1)
|
||||
|
December 31,
|
|||||
|
2019
|
|
2018
|
|||
+200
|
|
13.2
|
%
|
|
16.6
|
%
|
+100
|
|
6.7
|
%
|
|
8.4
|
%
|
-100
|
|
(5.5
|
)%
|
|
(8.3
|
)%
|
-200
|
|
(8.7
|
)%
|
|
(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)
|
||||
|
December 31,
|
|||||
|
2019
|
|
2018
|
|||
+200 Rate Ramp
|
|
6.0
|
%
|
|
6.3
|
%
|
+100 Rate Ramp
|
|
3.0
|
%
|
|
3.0
|
%
|
-100 Rate Ramp
|
|
(2.6
|
)%
|
|
(3.0
|
)%
|
-200 Rate Ramp
|
|
(5.1
|
)%
|
|
(6.3
|
)%
|
|
(1)
|
The percentage change represents net interest income under a gradual non-parallel shift in even quarterly increments over 12 months.
|
|
||||||
Change in Interest Rates
(Basis Points)
|
|
EVE Volatility (1)
|
||||
|
December 31,
|
|||||
|
2019
|
|
2018
|
|||
+200
|
|
7.0
|
%
|
|
6.3
|
%
|
+100
|
|
3.6
|
%
|
|
1.2
|
%
|
-100
|
|
(1.4
|
)%
|
|
(3.1
|
)%
|
-200
|
|
(3.5
|
)%
|
|
(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.
|
|
|||||||||||||
($ and shares in thousands, except per share data)
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||
Net income
|
(a)
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
Add: Impairment charge related to DC Solar (1)
|
|
|
6,978
|
|
|
—
|
|
|
—
|
|
|||
Less: Gain on sale of the commercial property
|
|
|
—
|
|
|
—
|
|
|
(71,654
|
)
|
|||
Gain on sale of business
|
|
|
—
|
|
|
(31,470
|
)
|
|
(3,807
|
)
|
|||
Impairment recovery related to DC Solar (1)
|
|
|
(1,583
|
)
|
|
—
|
|
|
—
|
|
|||
Tax effect of adjustments (2)
|
|
|
(1,595
|
)
|
|
9,303
|
|
|
31,729
|
|
|||
Add: Reversal of certain previously claimed tax credits related to DC Solar
|
|
|
30,104
|
|
|
—
|
|
|
—
|
|
|||
Impact of the Tax Act
|
|
|
—
|
|
|
—
|
|
|
41,689
|
|
|||
Non-GAAP net income
|
(b)
|
|
$
|
707,939
|
|
|
$
|
681,534
|
|
|
$
|
503,581
|
|
|
|
|
|
|
|
|
|
||||||
Diluted weighted-average number of shares outstanding
|
|
|
146,179
|
|
|
146,169
|
|
|
145,913
|
|
|||
|
|
|
|
|
|
|
|
||||||
Diluted EPS
|
|
|
$
|
4.61
|
|
|
$
|
4.81
|
|
|
$
|
3.47
|
|
Diluted EPS impact of impairment charge related to DC Solar, net of tax
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|||
Diluted EPS impact of gain on sale of the commercial property, net of tax
|
|
|
—
|
|
|
—
|
|
|
(0.28
|
)
|
|||
Diluted EPS impact of gain on sale of business, net of tax
|
|
|
—
|
|
|
(0.15
|
)
|
|
(0.02
|
)
|
|||
Diluted EPS impact of impairment recovery related to DC Solar, net of tax
|
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|||
Diluted EPS impact of reversal of certain previously claimed tax credits related to DC Solar
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|||
Diluted EPS impact of the Tax Act
|
|
|
—
|
|
|
—
|
|
|
0.29
|
|
|||
Non-GAAP diluted EPS
|
|
|
$
|
4.84
|
|
|
$
|
4.66
|
|
|
$
|
3.46
|
|
|
|
|
|
|
|
|
|
||||||
Average total assets
|
(c)
|
|
$
|
42,484,885
|
|
|
$
|
38,542,569
|
|
|
$
|
35,787,613
|
|
Average stockholders’ equity
|
(d)
|
|
$
|
4,760,845
|
|
|
$
|
4,130,822
|
|
|
$
|
3,687,213
|
|
ROA
|
(a)/(c)
|
|
1.59
|
%
|
|
1.83
|
%
|
|
1.41
|
%
|
|||
Non-GAAP ROA
|
(b)/(c)
|
|
1.67
|
%
|
|
1.77
|
%
|
|
1.41
|
%
|
|||
ROE
|
(a)/(d)
|
|
14.16
|
%
|
|
17.04
|
%
|
|
13.71
|
%
|
|||
Non-GAAP ROE
|
(b)/(d)
|
|
14.87
|
%
|
|
16.50
|
%
|
|
13.66
|
%
|
|||
|
(1)
|
Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.
|
(2)
|
Applied statutory rate of 29.56%.
|
|
||||||||||||||
($ in thousands)
|
|
|
Year Ended December 31,
|
|||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||
Income tax expense
|
|
(a)
|
|
$
|
169,882
|
|
|
$
|
114,995
|
|
|
$
|
229,476
|
|
Less: Reversal of certain previously claimed tax credits related to DC Solar
|
|
(b)
|
|
(30,104
|
)
|
|
—
|
|
|
—
|
|
|||
Impact of the Tax Act
|
|
(c)
|
|
—
|
|
|
—
|
|
|
(41,689
|
)
|
|||
Non-GAAP income tax expense
|
|
(d)
|
|
$
|
139,778
|
|
|
$
|
114,995
|
|
|
$
|
187,787
|
|
|
|
|
|
|
|
|
|
|
||||||
Income before income taxes
|
|
(e)
|
|
$
|
843,917
|
|
|
$
|
818,696
|
|
|
$
|
735,100
|
|
|
|
|
|
|
|
|
|
|
||||||
Effective tax rate
|
|
(a)/(e)
|
|
20.1
|
%
|
|
14.0
|
%
|
|
31.2
|
%
|
|||
Less: Reversal of certain previously claimed tax credits related to DC Solar
|
|
(b)/(e)
|
|
(3.5
|
)%
|
|
—
|
%
|
|
—
|
%
|
|||
Impact of the Tax Act
|
|
(c)/(e)
|
|
—
|
%
|
|
—
|
%
|
|
(5.7
|
)%
|
|||
Non-GAAP effective tax rate
|
|
(d)/(e)
|
|
16.6
|
%
|
|
14.0
|
%
|
|
25.5
|
%
|
|||
|
|
||||||||||||||
($ in thousands)
|
|
|
Year Ended December 31,
|
|||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||
Net interest income before provision for credit losses
|
|
(a)
|
|
$
|
1,467,813
|
|
|
$
|
1,386,508
|
|
|
$
|
1,185,069
|
|
Total noninterest income
|
|
|
|
209,377
|
|
|
210,909
|
|
|
257,748
|
|
|||
Total revenue
|
|
(b)
|
|
$
|
1,677,190
|
|
|
$
|
1,597,417
|
|
|
$
|
1,442,817
|
|
Total noninterest income
|
|
|
|
$
|
209,377
|
|
|
$
|
210,909
|
|
|
$
|
257,748
|
|
Less: Gain on sale of the commercial property
|
|
|
|
—
|
|
|
—
|
|
|
(71,654
|
)
|
|||
Gain on sale of business
|
|
|
|
—
|
|
|
(31,470
|
)
|
|
(3,807
|
)
|
|||
Non-GAAP noninterest income
|
|
(c)
|
|
$
|
209,377
|
|
|
$
|
179,439
|
|
|
$
|
182,287
|
|
Non-GAAP revenue
|
|
(a)+(c)=(d)
|
|
$
|
1,677,190
|
|
|
$
|
1,565,947
|
|
|
$
|
1,367,356
|
|
|
|
|
|
|
|
|
|
|
||||||
Total noninterest expense
|
|
(e)
|
|
$
|
734,588
|
|
|
$
|
714,466
|
|
|
$
|
661,451
|
|
Less: Amortization of tax credit and other investments
|
|
|
|
(85,515
|
)
|
|
(89,628
|
)
|
|
(87,950
|
)
|
|||
Amortization of core deposit intangibles
|
|
|
|
(4,518
|
)
|
|
(5,492
|
)
|
|
(6,935
|
)
|
|||
Non-GAAP noninterest expense
|
|
(f)
|
|
$
|
644,555
|
|
|
$
|
619,346
|
|
|
$
|
566,566
|
|
|
|
|
|
|
|
|
|
|
||||||
Efficiency ratio
|
|
(e)/(b)
|
|
43.80
|
%
|
|
44.73
|
%
|
|
45.84
|
%
|
|||
Non-GAAP efficiency ratio
|
|
(f)/(d)
|
|
38.43
|
%
|
|
39.55
|
%
|
|
41.44
|
%
|
|||
|
|
||||||||||||||
($ and shares in thousands, except per share data)
|
|
|
December 31,
|
|||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||
Stockholders’ equity
|
|
(a)
|
|
$
|
5,017,617
|
|
|
$
|
4,423,974
|
|
|
$
|
3,841,951
|
|
Less: Goodwill
|
|
|
|
(465,697
|
)
|
|
(465,547
|
)
|
|
(469,433
|
)
|
|||
Other intangible assets (1)
|
|
|
|
(16,079
|
)
|
|
(22,365
|
)
|
|
(28,825
|
)
|
|||
Non-GAAP tangible common equity
|
|
(b)
|
|
$
|
4,535,841
|
|
|
$
|
3,936,062
|
|
|
$
|
3,343,693
|
|
|
|
|
|
|
|
|
|
|
||||||
Number of common shares, at period-end
|
|
(c)
|
|
145,625
|
|
|
144,961
|
|
|
144,543
|
|
|||
Non-GAAP tangible common equity per share
|
|
(b)/(c)
|
|
$
|
31.15
|
|
|
$
|
27.15
|
|
|
$
|
23.13
|
|
|
(1)
|
Includes core deposit intangibles and mortgage servicing assets.
|
|
||||||||
|
|
December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
536,221
|
|
|
$
|
516,291
|
|
Interest-bearing cash with banks
|
|
2,724,928
|
|
|
2,485,086
|
|
||
Cash and cash equivalents
|
|
3,261,149
|
|
|
3,001,377
|
|
||
Interest-bearing deposits with banks
|
|
196,161
|
|
|
371,000
|
|
||
Securities purchased under resale agreements (“resale agreements”)
|
|
860,000
|
|
|
1,035,000
|
|
||
Securities:
|
|
|
|
|
||||
Available-for-sale (''AFS'') investment securities, at fair value (includes assets pledged as collateral of $479,432 in 2019 and $435,833 in 2018)
|
|
3,317,214
|
|
|
2,741,847
|
|
||
Restricted equity securities, at cost
|
|
78,580
|
|
|
74,069
|
|
||
Loans held-for-sale
|
|
434
|
|
|
275
|
|
||
Loans held-for-investment (net of allowance for loan losses of $358,287 in 2019 and $311,322 in 2018; includes assets pledged as collateral of $22,431,092 in 2019 and $20,590,035 in 2018)
|
|
34,420,252
|
|
|
32,073,867
|
|
||
Investments in qualified affordable housing partnerships, net
|
|
207,037
|
|
|
184,873
|
|
||
Investments in tax credit and other investments, net
|
|
254,140
|
|
|
231,635
|
|
||
Premises and equipment (net of accumulated depreciation of $116,790 in 2019 and $118,547 in 2018)
|
|
118,364
|
|
|
119,180
|
|
||
Goodwill
|
|
465,697
|
|
|
465,547
|
|
||
Operating lease right-of-use assets
|
|
99,973
|
|
|
—
|
|
||
Other assets
|
|
917,095
|
|
|
743,686
|
|
||
TOTAL
|
|
$
|
44,196,096
|
|
|
$
|
41,042,356
|
|
LIABILITIES
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
11,080,036
|
|
|
$
|
11,377,009
|
|
Interest-bearing
|
|
26,244,223
|
|
|
24,062,619
|
|
||
Total deposits
|
|
37,324,259
|
|
|
35,439,628
|
|
||
Short-term borrowings
|
|
28,669
|
|
|
57,638
|
|
||
Federal Home Loan Bank (“FHLB”) advances
|
|
745,915
|
|
|
326,172
|
|
||
Securities sold under repurchase agreements (“repurchase agreements”)
|
|
200,000
|
|
|
50,000
|
|
||
Long-term debt and finance lease liabilities
|
|
152,270
|
|
|
146,835
|
|
||
Operating lease liabilities
|
|
108,083
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
|
619,283
|
|
|
598,109
|
|
||
Total liabilities
|
|
39,178,479
|
|
|
36,618,382
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 15)
|
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 166,621,959 and 165,867,587 shares issued in 2019 and 2018, respectively
|
|
167
|
|
|
166
|
|
||
Additional paid-in capital
|
|
1,826,345
|
|
|
1,789,811
|
|
||
Retained earnings
|
|
3,689,377
|
|
|
3,160,132
|
|
||
Treasury stock, at cost — 20,996,574 shares in 2019 and 20,906,224 shares in 2018
|
|
(479,864
|
)
|
|
(467,961
|
)
|
||
Accumulated other comprehensive loss (“AOCI”), net of tax
|
|
(18,408
|
)
|
|
(58,174
|
)
|
||
Total stockholders’ equity
|
|
5,017,617
|
|
|
4,423,974
|
|
||
TOTAL
|
|
$
|
44,196,096
|
|
|
$
|
41,042,356
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
|
|
|
||||||
Loans receivable, including fees
|
|
$
|
1,717,415
|
|
|
$
|
1,503,514
|
|
|
$
|
1,198,440
|
|
Investment securities
|
|
67,838
|
|
|
60,911
|
|
|
58,670
|
|
|||
Resale agreements
|
|
27,819
|
|
|
29,328
|
|
|
32,095
|
|
|||
Restricted equity securities
|
|
2,468
|
|
|
3,146
|
|
|
2,524
|
|
|||
Interest-bearing cash and deposits with banks
|
|
66,760
|
|
|
54,804
|
|
|
33,390
|
|
|||
Total interest and dividend income
|
|
1,882,300
|
|
|
1,651,703
|
|
|
1,325,119
|
|
|||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
375,802
|
|
|
234,752
|
|
|
116,391
|
|
|||
Federal funds purchased and other short-term borrowings
|
|
1,763
|
|
|
1,398
|
|
|
1,003
|
|
|||
FHLB advances
|
|
16,697
|
|
|
10,447
|
|
|
7,751
|
|
|||
Repurchase agreements
|
|
13,582
|
|
|
12,110
|
|
|
9,476
|
|
|||
Long-term debt and finance lease liabilities
|
|
6,643
|
|
|
6,488
|
|
|
5,429
|
|
|||
Total interest expense
|
|
414,487
|
|
|
265,195
|
|
|
140,050
|
|
|||
Net interest income before provision for credit losses
|
|
1,467,813
|
|
|
1,386,508
|
|
|
1,185,069
|
|
|||
Provision for credit losses
|
|
98,685
|
|
|
64,255
|
|
|
46,266
|
|
|||
Net interest income after provision for credit losses
|
|
1,369,128
|
|
|
1,322,253
|
|
|
1,138,803
|
|
|||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
||||
Lending fees
|
|
63,670
|
|
|
59,758
|
|
|
58,395
|
|
|||
Deposit account fees
|
|
38,648
|
|
|
39,176
|
|
|
40,299
|
|
|||
Foreign exchange income
|
|
26,398
|
|
|
21,259
|
|
|
9,908
|
|
|||
Wealth management fees
|
|
16,668
|
|
|
13,785
|
|
|
13,974
|
|
|||
Interest rate contracts and other derivative income
|
|
39,865
|
|
|
18,980
|
|
|
17,671
|
|
|||
Net gains on sales of loans
|
|
4,035
|
|
|
6,590
|
|
|
8,870
|
|
|||
Net gains on sales of AFS investment securities
|
|
3,930
|
|
|
2,535
|
|
|
8,037
|
|
|||
Net gains on sales of fixed assets
|
|
114
|
|
|
6,683
|
|
|
77,388
|
|
|||
Net gain on sale of business
|
|
—
|
|
|
31,470
|
|
|
3,807
|
|
|||
Other investment income
|
|
5,249
|
|
|
1,207
|
|
|
3,903
|
|
|||
Other income
|
|
10,800
|
|
|
9,466
|
|
|
15,496
|
|
|||
Total noninterest income
|
|
209,377
|
|
|
210,909
|
|
|
257,748
|
|
|||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
||||
Compensation and employee benefits
|
|
401,700
|
|
|
379,622
|
|
|
335,291
|
|
|||
Occupancy and equipment expense
|
|
69,730
|
|
|
68,896
|
|
|
64,921
|
|
|||
Deposit insurance premiums and regulatory assessments
|
|
12,928
|
|
|
21,211
|
|
|
23,735
|
|
|||
Legal expense
|
|
8,441
|
|
|
8,781
|
|
|
11,444
|
|
|||
Data processing
|
|
13,533
|
|
|
13,177
|
|
|
12,093
|
|
|||
Consulting expense
|
|
9,846
|
|
|
11,579
|
|
|
14,922
|
|
|||
Deposit related expense
|
|
14,175
|
|
|
11,244
|
|
|
9,938
|
|
|||
Computer software expense
|
|
26,471
|
|
|
22,286
|
|
|
18,183
|
|
|||
Other operating expense
|
|
92,249
|
|
|
88,042
|
|
|
82,974
|
|
|||
Amortization of tax credit and other investments
|
|
85,515
|
|
|
89,628
|
|
|
87,950
|
|
|||
Total noninterest expense
|
|
734,588
|
|
|
714,466
|
|
|
661,451
|
|
|||
INCOME BEFORE INCOME TAXES
|
|
843,917
|
|
|
818,696
|
|
|
735,100
|
|
|||
INCOME TAX EXPENSE
|
|
169,882
|
|
|
114,995
|
|
|
229,476
|
|
|||
NET INCOME
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
EARNINGS PER SHARE (“EPS”)
|
|
|
|
|
|
|
||||||
BASIC
|
|
$
|
4.63
|
|
|
$
|
4.86
|
|
|
$
|
3.50
|
|
DILUTED
|
|
$
|
4.61
|
|
|
$
|
4.81
|
|
|
$
|
3.47
|
|
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
||||||
BASIC
|
|
145,497
|
|
|
144,862
|
|
|
144,444
|
|
|||
DILUTED
|
|
146,179
|
|
|
146,169
|
|
|
145,913
|
|
|||
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
||||||
Net changes in unrealized gains (losses) on AFS investment securities
|
|
43,402
|
|
|
(8,652
|
)
|
|
(2,126
|
)
|
|||
Foreign currency translation adjustments
|
|
(3,636
|
)
|
|
(5,732
|
)
|
|
12,753
|
|
|||
Other comprehensive income (loss)
|
|
39,766
|
|
|
(14,384
|
)
|
|
10,627
|
|
|||
COMPREHENSIVE INCOME
|
|
$
|
713,801
|
|
|
$
|
689,317
|
|
|
$
|
516,251
|
|
|
|
|||||||||||||||||||||||
|
|
Common Stock and
Additional Paid-in Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
AOCI,
Net of Tax |
|
Total
Stockholders’ Equity |
|||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
||||||||||||||||
BALANCE, DECEMBER 31, 2016
|
|
144,167,451
|
|
|
$
|
1,727,598
|
|
|
$
|
2,187,676
|
|
|
$
|
(439,387
|
)
|
|
$
|
(48,146
|
)
|
|
$
|
3,427,741
|
|
Net income
|
|
—
|
|
|
—
|
|
|
505,624
|
|
|
—
|
|
|
—
|
|
|
505,624
|
|
|||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,627
|
|
|
10,627
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
375,609
|
|
|
27,897
|
|
|
—
|
|
|
(12,940
|
)
|
|
—
|
|
|
14,957
|
|
|||||
Cash dividends on common stock ($0.80 per share)
|
|
—
|
|
|
—
|
|
|
(116,998
|
)
|
|
—
|
|
|
—
|
|
|
(116,998
|
)
|
|||||
BALANCE, DECEMBER 31, 2017
|
|
144,543,060
|
|
|
$
|
1,755,495
|
|
|
$
|
2,576,302
|
|
|
$
|
(452,327
|
)
|
|
$
|
(37,519
|
)
|
|
$
|
3,841,951
|
|
Cumulative effect of change in accounting principle related to marketable equity securities (1)
|
|
—
|
|
|
—
|
|
|
(545
|
)
|
|
—
|
|
|
385
|
|
|
(160
|
)
|
|||||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate (2)
|
|
—
|
|
|
—
|
|
|
6,656
|
|
|
—
|
|
|
(6,656
|
)
|
|
—
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
703,701
|
|
|
—
|
|
|
—
|
|
|
703,701
|
|
|||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,384
|
)
|
|
(14,384
|
)
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
418,303
|
|
|
34,482
|
|
|
—
|
|
|
(15,634
|
)
|
|
—
|
|
|
18,848
|
|
|||||
Cash dividends on common stock ($0.86 per share)
|
|
—
|
|
|
—
|
|
|
(125,982
|
)
|
|
—
|
|
|
—
|
|
|
(125,982
|
)
|
|||||
BALANCE, DECEMBER 31, 2018
|
|
144,961,363
|
|
|
$
|
1,789,977
|
|
|
$
|
3,160,132
|
|
|
$
|
(467,961
|
)
|
|
$
|
(58,174
|
)
|
|
$
|
4,423,974
|
|
Cumulative effect of change in accounting principle related to leases (3)
|
|
—
|
|
|
—
|
|
|
10,510
|
|
|
—
|
|
|
—
|
|
|
10,510
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
674,035
|
|
|
—
|
|
|
—
|
|
|
674,035
|
|
|||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,766
|
|
|
39,766
|
|
|||||
Warrants exercised
|
|
180,226
|
|
|
1,711
|
|
|
—
|
|
|
2,732
|
|
|
—
|
|
|
4,443
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
483,796
|
|
|
34,824
|
|
|
—
|
|
|
(14,635
|
)
|
|
—
|
|
|
20,189
|
|
|||||
Cash dividends on common stock ($1.055 per share)
|
|
—
|
|
|
—
|
|
|
(155,300
|
)
|
|
—
|
|
|
—
|
|
|
(155,300
|
)
|
|||||
BALANCE, DECEMBER 31, 2019
|
|
145,625,385
|
|
|
$
|
1,826,512
|
|
|
$
|
3,689,377
|
|
|
$
|
(479,864
|
)
|
|
$
|
(18,408
|
)
|
|
$
|
5,017,617
|
|
|
(1)
|
Represents the impact of the adoption of Accounting Standards Update (“ASU”) 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of 2018. Refer to Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Annual Report on Form 10-K (“this Form 10-K”) for additional information.
|
(2)
|
Represents amounts reclassified from AOCI to retained earnings due to the early adoption of ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2018. Refer to Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements for additional information.
|
(3)
|
Represents the impact of the adoption of ASU 2016-02, Leases (Topic 842) and subsequent related ASUs in the first quarter of 2019. Refer to Note 1 — Summary of Significant Accounting Policies and Note 10 — Leases to the Consolidated Financial Statements in this Form 10-K for additional information.
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
|
144,178
|
|
|
139,499
|
|
|
149,822
|
|
|||
Accretion of discount and amortization of premiums, net
|
|
(22,379
|
)
|
|
(20,572
|
)
|
|
(7,260
|
)
|
|||
Stock compensation costs
|
|
30,761
|
|
|
30,937
|
|
|
24,657
|
|
|||
Deferred income tax (benefit) expense
|
|
(21,604
|
)
|
|
(16,470
|
)
|
|
33,856
|
|
|||
Provision for credit losses
|
|
98,685
|
|
|
64,255
|
|
|
46,266
|
|
|||
Net gains on sales of loans
|
|
(4,035
|
)
|
|
(6,590
|
)
|
|
(8,870
|
)
|
|||
Net gains on sales of AFS investment securities
|
|
(3,930
|
)
|
|
(2,535
|
)
|
|
(8,037
|
)
|
|||
Net gains on sales of fixed assets
|
|
(114
|
)
|
|
(6,683
|
)
|
|
(77,388
|
)
|
|||
Net gain on sale of business
|
|
—
|
|
|
(31,470
|
)
|
|
(3,807
|
)
|
|||
Loans held-for-sale:
|
|
|
|
|
|
|
||||||
Originations and purchases
|
|
(10,569
|
)
|
|
(20,176
|
)
|
|
(20,521
|
)
|
|||
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale
|
|
10,436
|
|
|
20,068
|
|
|
21,363
|
|
|||
Proceeds from distributions received from equity method investees
|
|
3,470
|
|
|
3,761
|
|
|
3,582
|
|
|||
Net change in accrued interest receivable and other assets
|
|
(170,819
|
)
|
|
(60,791
|
)
|
|
45,354
|
|
|||
Net change in accrued expenses and other liabilities
|
|
7,012
|
|
|
88,070
|
|
|
(1,965
|
)
|
|||
Other net operating activities
|
|
702
|
|
|
(1,832
|
)
|
|
599
|
|
|||
Total adjustments
|
|
61,794
|
|
|
179,471
|
|
|
197,651
|
|
|||
Net cash provided by operating activities
|
|
735,829
|
|
|
883,172
|
|
|
703,275
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Net (increase) decrease in:
|
|
|
|
|
|
|
|
|
|
|||
Investments in qualified affordable housing partnerships, tax credit and other investments
|
|
(146,902
|
)
|
|
(132,605
|
)
|
|
(173,630
|
)
|
|||
Interest-bearing deposits with banks
|
|
193,455
|
|
|
4,212
|
|
|
(63,096
|
)
|
|||
Resale agreements:
|
|
|
|
|
|
|
||||||
Proceeds from paydowns and maturities
|
|
650,000
|
|
|
175,000
|
|
|
1,250,000
|
|
|||
Purchases
|
|
(325,000
|
)
|
|
(160,000
|
)
|
|
(600,000
|
)
|
|||
AFS investment securities:
|
|
|
|
|
|
|
||||||
Proceeds from sales
|
|
627,110
|
|
|
364,270
|
|
|
832,844
|
|
|||
Proceeds from repayments, maturities and redemptions
|
|
1,155,002
|
|
|
742,132
|
|
|
413,593
|
|
|||
Purchases
|
|
(2,303,317
|
)
|
|
(888,673
|
)
|
|
(828,604
|
)
|
|||
Loans held-for-investment:
|
|
|
|
|
|
|
||||||
Proceeds from sales of loans originally classified as held-for-investment
|
|
288,823
|
|
|
483,948
|
|
|
566,688
|
|
|||
Purchases
|
|
(524,142
|
)
|
|
(597,112
|
)
|
|
(534,816
|
)
|
|||
Other changes in loans held-for-investment, net
|
|
(2,184,915
|
)
|
|
(3,313,382
|
)
|
|
(3,514,786
|
)
|
|||
Premises and equipment:
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales
|
|
403
|
|
|
1,638
|
|
|
119,749
|
|
|||
Purchases
|
|
(9,859
|
)
|
|
(13,787
|
)
|
|
(13,754
|
)
|
|||
Sales of businesses, net of cash transferred:
|
|
|
|
|
|
|
||||||
Proceeds
|
|
—
|
|
|
—
|
|
|
3,633
|
|
|||
Payments
|
|
—
|
|
|
(503,687
|
)
|
|
—
|
|
|||
Proceeds from sales of other real estate owned (“OREO”)
|
|
1,224
|
|
|
4,484
|
|
|
6,999
|
|
|||
Proceeds from distributions received from equity method investees
|
|
9,502
|
|
|
5,185
|
|
|
8,387
|
|
|||
Other net investing activities
|
|
(2,560
|
)
|
|
(4,035
|
)
|
|
19,969
|
|
|||
Net cash used in investing activities
|
|
(2,571,176
|
)
|
|
(3,832,412
|
)
|
|
(2,506,824
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Net increase in deposits
|
|
1,902,741
|
|
|
3,903,192
|
|
|
2,272,500
|
|
|||
Net (decrease) increase in short-term borrowings
|
|
(28,535
|
)
|
|
61,392
|
|
|
(61,560
|
)
|
|||
FHLB advances
|
|
|
|
|
|
|
||||||
Proceeds
|
|
1,500,000
|
|
|
—
|
|
|
—
|
|
|||
Repayment
|
|
(1,082,001
|
)
|
|
—
|
|
|
—
|
|
|||
Repayment of long-term debt and lease liabilities
|
|
(884
|
)
|
|
(25,000
|
)
|
|
(15,000
|
)
|
|||
Common stock:
|
|
|
|
|
|
|
||||||
Proceeds from issuance pursuant to various stock compensation plans and agreements
|
|
3,383
|
|
|
2,846
|
|
|
2,280
|
|
|||
Stocks tendered for payment of withholding taxes
|
|
(14,635
|
)
|
|
(15,634
|
)
|
|
(12,940
|
)
|
|||
Cash dividends paid
|
|
(155,107
|
)
|
|
(125,988
|
)
|
|
(116,820
|
)
|
|||
Net cash provided by financing activities
|
|
2,124,962
|
|
|
3,800,808
|
|
|
2,068,460
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(29,843
|
)
|
|
(24,783
|
)
|
|
31,178
|
|
|||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
259,772
|
|
|
826,785
|
|
|
296,089
|
|
|||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
3,001,377
|
|
|
2,174,592
|
|
|
1,878,503
|
|
|||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
3,261,149
|
|
|
$
|
3,001,377
|
|
|
$
|
2,174,592
|
|
|
|
||||||||||||
|
|
Year Ended December 31,
|
||||||||||
($ in thosands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
|
|
|
|
|||
Interest
|
|
$
|
418,840
|
|
|
$
|
253,026
|
|
|
$
|
138,766
|
|
Income taxes, net
|
|
$
|
158,296
|
|
|
$
|
85,872
|
|
|
$
|
98,126
|
|
Noncash investing and financing activities:
|
|
|
|
|
|
|
||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
285,637
|
|
|
$
|
481,593
|
|
|
$
|
613,088
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
—
|
|
|
$
|
2,306
|
|
|
$
|
—
|
|
Deposits transferred to branch liability held-for-sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
605,111
|
|
Investment security transferred from held-to-maturity to AFS
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
115,615
|
|
Premises and equipment transferred to branch assets held-for-sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,043
|
|
Loans transferred to OREO
|
|
$
|
2,013
|
|
|
$
|
1,206
|
|
|
$
|
777
|
|
|
(1)
|
December 31, 2017 amount includes loans transferred from held-for-investment to branch assets held-for-sale.
|
•
|
Equity Method — When we have the ability to exert significant influence over the investee.
|
•
|
Cost Method — The cost method is applied to investments such as FRB and FHLB stock. These investments are held at their cost minus impairment. If impaired, the carrying value is written down to the fair value of the security.
|
•
|
Measurement Alternative — This method is applied to all remaining nonmarketable equity securities. These securities are carried at cost less impairment, and adjusted for changes in fair value upon the occurrence of orderly observable transactions of the same or similar security of the same issuer.
|
|
||
Premises and Equipment
|
|
Useful Lives
|
Buildings
|
|
25 years
|
Furniture, fixtures and equipment, building improvements
|
|
3 to 7 years
|
Leasehold improvements
|
|
Term of lease or useful life, whichever is shorter
|
|
Standard
|
Required Date of Adoption
|
Description
|
Effects on Financial Statements
|
Standards Adopted in 2020
|
|||
ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent related ASUs
|
January 1, 2020
Early adoption is permitted on January 1, 2019.
|
The ASU introduces a new current expected credit loss (“CECL”) impairment model that applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loan receivables, AFS and held-to-maturity debt securities, net investments in leases and off-balance sheet credit exposures. The CECL model utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. The expected credit losses are adjusted in each period for changes in expected lifetime credit losses. This ASU also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loan and lease losses, and requires disclosure of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination (i.e., by vintage year). The guidance should be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. The new guidance also allows optional relief for certain instruments measured at amortized cost with an option to irrevocably elect the fair value option under ASC Topic 825, Financial Instruments.
|
The Company adopted ASU 2016-13 using a modified retrospective approach on January 1, 2020 without electing the fair value option on eligible financial instruments under ASU 2019-05. The Company has completed its implementation of the new processes and controls over the new credit and loss aggregation models, completed two parallel runs, analyzed model results, revised the qualitative framework and updated policies and disclosures.
Upon adoption of the ASU, the Company‘s ACL, which includes the reserve for unfunded credit commitments, increased approximately 34% from $369.4 million as of December 31, 2019. This impact was recorded as a cumulative-effect adjustment that reduced retained earnings on January 1, 2020. This increase in ACL was mainly driven by the Company’s C&I and CRE loan portfolios due to the capture of lifetime expected credit losses under the new guidance. There was no ACL recorded on the AFS securities portfolio upon the adoption of this guidance.
The regulatory rules provide the banks with the option to elect a three-year phase-in of the “day one” impact of CECL. The Company has elected not to apply the three-year phased-in approach in its first quarter 2020’s regulatory capital calculations. Upon adoption of CECL, the Company and the Bank are well-capitalized.
|
ASU2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
|
January 1, 2020
Early adoption is permitted for interim or annual goodwill impairment tests with measurement dates after January 1, 2017.
|
The ASU simplifies the accounting for goodwill impairment. Under this guidance, an entity will no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, an impairment loss will be recognized when the carrying amount of a reporting unit exceeds its fair value. The guidance also eliminates the requirement to perform a qualitative assessment for any reporting units with a zero or negative carrying amount. This guidance should be applied prospectively.
|
The Company adopted this guidance on January 1, 2020. The Company does not expect the adoption of this guidance to have a material impact on the Company’s Consolidated Financial Statements.
|
ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract
|
January 1, 2020
Early adoption is permitted.
|
The ASU amends ASC Topic 350-40 to align the accounting for costs incurred in a cloud computing arrangement with the guidance on developing internal use software. Specifically, if a cloud computing arrangement is deemed to be a service contract, certain implementation costs are eligible for capitalization. The new guidance prescribes the balance sheet and income statement presentation and cash flow classification for the capitalized costs and related amortization expense. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.
|
The Company adopted this guidance on a prospective basis on January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements.
|
•
|
Level 1 — Valuation is based on quoted prices for identical instruments traded in active markets.
|
•
|
Level 2 — Valuation is based on quoted prices for similar instruments traded in active markets; quoted prices for identical or similar instruments traded in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data.
|
•
|
Level 3 — Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 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
|
|||||||||
AFS investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
176,422
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
176,422
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
—
|
|
|
581,245
|
|
|
—
|
|
|
581,245
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
603,471
|
|
|
—
|
|
|
603,471
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
1,003,897
|
|
|
—
|
|
|
1,003,897
|
|
||||
Municipal securities
|
|
—
|
|
|
102,302
|
|
|
—
|
|
|
102,302
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
88,550
|
|
|
—
|
|
|
88,550
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
46,548
|
|
|
—
|
|
|
46,548
|
|
||||
Corporate debt securities
|
|
—
|
|
|
11,149
|
|
|
—
|
|
|
11,149
|
|
||||
Foreign bonds
|
|
—
|
|
|
354,172
|
|
|
—
|
|
|
354,172
|
|
||||
Asset-backed securities
|
|
—
|
|
|
64,752
|
|
|
—
|
|
|
64,752
|
|
||||
Collateralized loan obligations (“CLOs”)
|
|
—
|
|
|
284,706
|
|
|
—
|
|
|
284,706
|
|
||||
Total AFS investment securities
|
|
$
|
176,422
|
|
|
$
|
3,140,792
|
|
|
$
|
—
|
|
|
$
|
3,317,214
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments in tax credit and other investments:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities (1)
|
|
$
|
21,746
|
|
|
$
|
9,927
|
|
|
$
|
—
|
|
|
$
|
31,673
|
|
Total investments in tax credit and other investments
|
|
$
|
21,746
|
|
|
$
|
9,927
|
|
|
$
|
—
|
|
|
$
|
31,673
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
192,883
|
|
|
$
|
—
|
|
|
$
|
192,883
|
|
Foreign exchange contracts
|
|
—
|
|
|
54,637
|
|
|
—
|
|
|
54,637
|
|
||||
Credit contracts
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Equity contracts
|
|
—
|
|
|
993
|
|
|
421
|
|
|
1,414
|
|
||||
Commodity contracts
|
|
—
|
|
|
81,380
|
|
|
—
|
|
|
81,380
|
|
||||
Gross derivative assets
|
|
$
|
—
|
|
|
$
|
329,895
|
|
|
$
|
421
|
|
|
$
|
330,316
|
|
Netting adjustments (2)
|
|
$
|
—
|
|
|
$
|
(125,319
|
)
|
|
$
|
—
|
|
|
$
|
(125,319
|
)
|
Net derivative assets
|
|
$
|
—
|
|
|
$
|
204,576
|
|
|
$
|
421
|
|
|
$
|
204,997
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
127,317
|
|
|
$
|
—
|
|
|
$
|
127,317
|
|
Foreign exchange contracts
|
|
—
|
|
|
48,610
|
|
|
—
|
|
|
48,610
|
|
||||
Credit contracts
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
||||
Commodity contracts
|
|
—
|
|
|
80,517
|
|
|
—
|
|
|
80,517
|
|
||||
Gross derivative liabilities
|
|
$
|
—
|
|
|
$
|
256,528
|
|
|
$
|
—
|
|
|
$
|
256,528
|
|
Netting adjustments (2)
|
|
$
|
—
|
|
|
$
|
(159,799
|
)
|
|
$
|
—
|
|
|
$
|
(159,799
|
)
|
Net derivative liabilities
|
|
$
|
—
|
|
|
$
|
96,729
|
|
|
$
|
—
|
|
|
$
|
96,729
|
|
|
(1)
|
Equity securities are comprised of mutual funds with readily determinable fair values.
|
(2)
|
Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-K 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
|
|||||||||
AFS 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 AFS investment securities
|
|
$
|
564,815
|
|
|
$
|
2,177,032
|
|
|
$
|
—
|
|
|
$
|
2,741,847
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments in tax credit and other investments:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities (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 were comprised of mutual funds with readily determinable fair values.
|
(2)
|
Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-K for additional information.
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||
|
Equity
Warrants
|
|
Equity
Warrants
|
|
Other Securities
|
|
Equity
Warrants
|
|||||||||
Beginning balance
|
|
$
|
673
|
|
|
$
|
679
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Transfer of investment security from held-to-maturity to AFS
|
|
—
|
|
|
—
|
|
|
115,615
|
|
|
—
|
|
||||
Total gains included in earnings (1)
|
|
563
|
|
|
162
|
|
|
1,156
|
|
|
—
|
|
||||
Issuances
|
|
114
|
|
|
65
|
|
|
—
|
|
|
679
|
|
||||
Sales
|
|
—
|
|
|
—
|
|
|
(116,771
|
)
|
|
—
|
|
||||
Settlements
|
|
(929
|
)
|
|
(233
|
)
|
|
—
|
|
|
—
|
|
||||
Ending balance
|
|
$
|
421
|
|
|
$
|
673
|
|
|
$
|
—
|
|
|
$
|
679
|
|
|
(1)
|
Includes unrealized (losses) gains of $(292) thousand and $225 thousand for the years ended December 31, 2019 and 2018, respectively. There were no unrealized gains (losses) for the year ended December 31, 2017. The realized/unrealized gains (losses) of equity warrants are included in Lending fees on the Consolidated Statement of Income.
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
(Level 3)
|
|
Valuation
Technique
|
|
Unobservable
Inputs
|
|
Range of
Inputs |
|
Weighted-
Average (1)
|
||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||
Equity warrants
|
|
$
|
421
|
|
|
Black-Scholes option pricing model
|
|
Equity volatility
|
|
39% — 44%
|
|
42%
|
|
|
|
|
|
|
Liquidity discount
|
|
47%
|
|
47%
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||
Equity warrants
|
|
$
|
673
|
|
|
Black-Scholes option pricing model
|
|
Equity volatility
|
|
49% — 52%
|
|
51%
|
|
|
|
|
|
|
Liquidity discount
|
|
47%
|
|
47%
|
||
|
(1)
|
Weighted-average is calculated based on fair value of equity warrants as of December 31, 2019 and 2018, respectively.
|
•
|
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 valuation 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.
|
•
|
The current fair value of the tax credit investment based upon the expected future cash flows is less than the carrying amount;
|
•
|
Change in the economic, market or technological environment that could adversely affect the investee’s operations; and
|
•
|
Other factors that raise doubt about the investee’s ability to continue as a going concern, such as negative cash flows from operations and the continuing prospects of the underlying operations of the investment.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets Measured at Fair Value on a Nonrecurring Basis
as of December 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:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,554
|
|
|
$
|
47,554
|
|
CRE:
|
|
|
|
|
|
|
|
|
||||||||
CRE
|
|
—
|
|
|
—
|
|
|
753
|
|
|
753
|
|
||||
Total commercial
|
|
—
|
|
|
—
|
|
|
48,307
|
|
|
48,307
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||
HELOCs
|
|
—
|
|
|
—
|
|
|
1,372
|
|
|
1,372
|
|
||||
Total consumer
|
|
—
|
|
|
—
|
|
|
1,372
|
|
|
1,372
|
|
||||
Total non-PCI impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,679
|
|
|
$
|
49,679
|
|
OREO (1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
125
|
|
|
$
|
125
|
|
Investments in tax credit and other investments, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,076
|
|
|
$
|
3,076
|
|
|
(1)
|
Amounts are included in Other assets on the Consolidated Balance Sheet and represent the carrying value of OREO properties that were written down subsequent to their initial classification as OREO.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets Measured at Fair Value on a Nonrecurring 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)
|
|
Fair Value Measurements
|
|||||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,873
|
|
|
$
|
26,873
|
|
CRE:
|
|
|
|
|
|
|
|
|
||||||||
CRE
|
|
—
|
|
|
—
|
|
|
3,434
|
|
|
3,434
|
|
||||
Total commercial
|
|
—
|
|
|
—
|
|
|
30,307
|
|
|
30,307
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
—
|
|
|
—
|
|
|
2,551
|
|
|
2,551
|
|
||||
Total consumer
|
|
—
|
|
|
—
|
|
|
2,551
|
|
|
2,551
|
|
||||
Total non-PCI impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,858
|
|
|
$
|
32,858
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
(35,365
|
)
|
|
$
|
(9,341
|
)
|
|
$
|
(19,703
|
)
|
CRE:
|
|
|
|
|
|
|
||||||
CRE
|
|
9
|
|
|
270
|
|
|
(272
|
)
|
|||
Construction and land
|
|
—
|
|
|
—
|
|
|
(147
|
)
|
|||
Total CRE
|
|
9
|
|
|
270
|
|
|
(419
|
)
|
|||
Total commercial
|
|
(35,356
|
)
|
|
(9,071
|
)
|
|
(20,122
|
)
|
|||
Consumer:
|
|
|
|
|
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
—
|
|
|
15
|
|
|
(11
|
)
|
|||
HELOCs
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Total residential mortgage
|
|
(2
|
)
|
|
15
|
|
|
(11
|
)
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
(2,491
|
)
|
|||
Total consumer
|
|
$
|
(2
|
)
|
|
$
|
15
|
|
|
$
|
(2,502
|
)
|
Total non-PCI impaired loans
|
|
$
|
(35,358
|
)
|
|
$
|
(9,056
|
)
|
|
$
|
(22,624
|
)
|
OREO
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Investments in tax credit and other investments, net
|
|
$
|
(13,023
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements (Level 3) |
|
Valuation
Technique(s) |
|
Unobservable
Input(s) |
|
Range of
Input(s)
|
|
Weighted-
Average (1) |
||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||
Non-PCI impaired loans
|
|
$
|
27,841
|
|
|
Discounted cash flows
|
|
Discount
|
|
4% — 15%
|
|
14%
|
|
|
$
|
1,014
|
|
|
Fair value of collateral
|
|
Discount
|
|
8% — 20%
|
|
19%
|
|
|
$
|
20,824
|
|
|
Fair value of collateral
|
|
Contract value
|
|
NM
|
|
NM
|
OREO
|
|
$
|
125
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8%
|
Investments in tax credit and other investments, net
|
|
$
|
3,076
|
|
|
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%
|
|
|
$
|
2,751
|
|
|
Fair value of collateral
|
|
Discount
|
|
15% — 50%
|
|
21%
|
|
|
$
|
11,499
|
|
|
Fair value of collateral
|
|
Contract value
|
|
NM
|
|
NM
|
|
|
$
|
1,687
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Weighted-average is based on the relative fair value of the respective assets as of December 31, 2019 and 2018.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
3,261,149
|
|
|
$
|
3,261,149
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,261,149
|
|
Interest-bearing deposits with banks
|
|
$
|
196,161
|
|
|
$
|
—
|
|
|
$
|
196,161
|
|
|
$
|
—
|
|
|
$
|
196,161
|
|
Resale agreements (1)
|
|
$
|
860,000
|
|
|
$
|
—
|
|
|
$
|
856,025
|
|
|
$
|
—
|
|
|
$
|
856,025
|
|
Restricted equity securities, at cost
|
|
$
|
78,580
|
|
|
$
|
—
|
|
|
$
|
78,580
|
|
|
$
|
—
|
|
|
$
|
78,580
|
|
Loans held-for-sale
|
|
$
|
434
|
|
|
$
|
—
|
|
|
$
|
434
|
|
|
$
|
—
|
|
|
$
|
434
|
|
Loans held-for-investment, net
|
|
$
|
34,420,252
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,021,300
|
|
|
$
|
35,021,300
|
|
Mortgage servicing rights
|
|
$
|
6,068
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,199
|
|
|
$
|
8,199
|
|
Accrued interest receivable
|
|
$
|
144,599
|
|
|
$
|
—
|
|
|
$
|
144,599
|
|
|
$
|
—
|
|
|
$
|
144,599
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, checking, savings and money market deposits
|
|
$
|
27,109,951
|
|
|
$
|
—
|
|
|
$
|
27,109,951
|
|
|
$
|
—
|
|
|
$
|
27,109,951
|
|
Time deposits
|
|
$
|
10,214,308
|
|
|
$
|
—
|
|
|
$
|
10,208,895
|
|
|
$
|
—
|
|
|
$
|
10,208,895
|
|
Short-term borrowings
|
|
$
|
28,669
|
|
|
$
|
—
|
|
|
$
|
28,669
|
|
|
$
|
—
|
|
|
$
|
28,669
|
|
FHLB advances
|
|
$
|
745,915
|
|
|
$
|
—
|
|
|
$
|
755,371
|
|
|
$
|
—
|
|
|
$
|
755,371
|
|
Repurchase agreements (1)
|
|
$
|
200,000
|
|
|
$
|
—
|
|
|
$
|
232,597
|
|
|
$
|
—
|
|
|
$
|
232,597
|
|
Long-term debt
|
|
$
|
147,101
|
|
|
$
|
—
|
|
|
$
|
152,641
|
|
|
$
|
—
|
|
|
$
|
152,641
|
|
Accrued interest payable
|
|
$
|
27,246
|
|
|
$
|
—
|
|
|
$
|
27,246
|
|
|
$
|
—
|
|
|
$
|
27,246
|
|
|
|
||||||||||||||||||||
($ 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. Out of gross repurchase agreements of $450.0 million, $250.0 million and $400.0 million as of December 31, 2019 and 2018, respectively, were eligible for netting against gross resale agreements.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 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 |
||||||||||
|
|
|
|
Collateral Received
|
|
|||||||||||||||
Resale agreements
|
|
$
|
1,110,000
|
|
|
$
|
(250,000
|
)
|
|
$
|
860,000
|
|
|
$
|
(856,058
|
)
|
(1)
|
$
|
3,942
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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 |
||||||||||
|
|
|
|
Collateral Pledged
|
|
|||||||||||||||
Repurchase agreements
|
|
$
|
450,000
|
|
|
$
|
(250,000
|
)
|
|
$
|
200,000
|
|
|
$
|
(200,000
|
)
|
(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
|
||||||||||
|
|
|
|
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
|
||||||||||
|
|
|
|
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. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.
|
(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. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.
|
|
||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
AFS investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
177,215
|
|
|
$
|
—
|
|
|
$
|
(793
|
)
|
|
$
|
176,422
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
584,275
|
|
|
1,377
|
|
|
(4,407
|
)
|
|
581,245
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
599,814
|
|
|
8,551
|
|
|
(4,894
|
)
|
|
603,471
|
|
||||
Residential mortgage-backed securities
|
|
998,447
|
|
|
6,927
|
|
|
(1,477
|
)
|
|
1,003,897
|
|
||||
Municipal securities
|
|
101,621
|
|
|
790
|
|
|
(109
|
)
|
|
102,302
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
86,609
|
|
|
1,947
|
|
|
(6
|
)
|
|
88,550
|
|
||||
Residential mortgage-backed securities
|
|
46,830
|
|
|
3
|
|
|
(285
|
)
|
|
46,548
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
12
|
|
|
(113
|
)
|
|
11,149
|
|
||||
Foreign bonds
|
|
354,481
|
|
|
198
|
|
|
(507
|
)
|
|
354,172
|
|
||||
Asset-backed securities
|
|
66,106
|
|
|
—
|
|
|
(1,354
|
)
|
|
64,752
|
|
||||
CLOs
|
|
294,000
|
|
|
—
|
|
|
(9,294
|
)
|
|
284,706
|
|
||||
Total AFS investment securities
|
|
$
|
3,320,648
|
|
|
$
|
19,805
|
|
|
$
|
(23,239
|
)
|
|
$
|
3,317,214
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
AFS 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 AFS investment securities
|
|
$
|
2,806,900
|
|
|
$
|
5,714
|
|
|
$
|
(70,767
|
)
|
|
$
|
2,741,847
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|||||||||||||
AFS investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
176,422
|
|
|
$
|
(793
|
)
|
|
$
|
176,422
|
|
|
$
|
(793
|
)
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
310,349
|
|
|
(4,407
|
)
|
|
—
|
|
|
—
|
|
|
310,349
|
|
|
(4,407
|
)
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
204,675
|
|
|
(2,346
|
)
|
|
108,314
|
|
|
(2,548
|
)
|
|
312,989
|
|
|
(4,894
|
)
|
||||||
Residential mortgage-backed securities
|
|
325,354
|
|
|
(1,234
|
)
|
|
34,337
|
|
|
(243
|
)
|
|
359,691
|
|
|
(1,477
|
)
|
||||||
Municipal securities
|
|
31,130
|
|
|
(109
|
)
|
|
—
|
|
|
—
|
|
|
31,130
|
|
|
(109
|
)
|
||||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
7,914
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
7,914
|
|
|
(6
|
)
|
||||||
Residential mortgage-backed securities
|
|
42,894
|
|
|
(285
|
)
|
|
—
|
|
|
—
|
|
|
42,894
|
|
|
(285
|
)
|
||||||
Corporate debt securities
|
|
—
|
|
|
—
|
|
|
9,888
|
|
|
(113
|
)
|
|
9,888
|
|
|
(113
|
)
|
||||||
Foreign bonds
|
|
129,074
|
|
|
(407
|
)
|
|
9,900
|
|
|
(100
|
)
|
|
138,974
|
|
|
(507
|
)
|
||||||
Asset-backed securities
|
|
52,565
|
|
|
(902
|
)
|
|
12,187
|
|
|
(452
|
)
|
|
64,752
|
|
|
(1,354
|
)
|
||||||
CLOs
|
|
284,706
|
|
|
(9,294
|
)
|
|
—
|
|
|
—
|
|
|
284,706
|
|
|
(9,294
|
)
|
||||||
Total AFS investment securities
|
|
$
|
1,388,661
|
|
|
$
|
(18,990
|
)
|
|
$
|
351,048
|
|
|
$
|
(4,249
|
)
|
|
$
|
1,739,709
|
|
|
$
|
(23,239
|
)
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|||||||||||||
AFS 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 AFS investment securities
|
|
$
|
163,128
|
|
|
$
|
(1,518
|
)
|
|
$
|
2,087,534
|
|
|
$
|
(69,249
|
)
|
|
$
|
2,250,662
|
|
|
$
|
(70,767
|
)
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Proceeds from sales
|
|
$
|
627,110
|
|
|
$
|
364,270
|
|
|
$
|
832,844
|
|
Gross realized gains
|
|
$
|
3,930
|
|
|
$
|
2,535
|
|
|
$
|
8,037
|
|
Related tax expense
|
|
$
|
1,162
|
|
|
$
|
749
|
|
|
$
|
3,380
|
|
|
|
||||||||
($ in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due within one year
|
|
$
|
721,607
|
|
|
$
|
719,179
|
|
Due after one year through five years
|
|
395,468
|
|
|
392,891
|
|
||
Due after five years through ten years
|
|
143,029
|
|
|
145,901
|
|
||
Due after ten years
|
|
2,060,544
|
|
|
2,059,243
|
|
||
Total AFS investment securities
|
|
$
|
3,320,648
|
|
|
$
|
3,317,214
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
FRB stock
|
|
$
|
58,330
|
|
|
$
|
56,819
|
|
FHLB stock
|
|
20,250
|
|
|
17,250
|
|
||
Total restricted equity securities
|
|
$
|
78,580
|
|
|
$
|
74,069
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 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
|
|
|
$
|
—
|
|
|
$
|
3,198
|
|
|
$
|
35,811
|
|
|
$
|
—
|
|
|
$
|
5,866
|
|
Net investment hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
86,167
|
|
|
—
|
|
|
1,586
|
|
|
90,245
|
|
|
—
|
|
|
611
|
|
||||||
Total derivatives designated as hedging instruments
|
|
$
|
117,193
|
|
|
$
|
—
|
|
|
$
|
4,784
|
|
|
$
|
126,056
|
|
|
$
|
—
|
|
|
$
|
6,477
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
$
|
15,489,692
|
|
|
$
|
192,883
|
|
|
$
|
124,119
|
|
|
$
|
11,695,499
|
|
|
$
|
69,818
|
|
|
$
|
69,267
|
|
Foreign exchange contracts
|
|
4,839,661
|
|
|
54,637
|
|
|
47,024
|
|
|
3,407,522
|
|
|
21,624
|
|
|
19,329
|
|
||||||
Credit contracts
|
|
210,678
|
|
|
2
|
|
|
84
|
|
|
119,320
|
|
|
1
|
|
|
164
|
|
||||||
Equity contracts
|
|
—
|
|
(1)
|
1,414
|
|
|
—
|
|
|
—
|
|
(1)
|
1,951
|
|
|
—
|
|
||||||
Commodity contracts
|
|
—
|
|
(2)
|
81,380
|
|
|
80,517
|
|
|
—
|
|
(2)
|
14,422
|
|
|
23,068
|
|
||||||
Total derivatives not designated as hedging instruments
|
|
$
|
20,540,031
|
|
|
$
|
330,316
|
|
|
$
|
251,744
|
|
|
$
|
15,222,341
|
|
|
$
|
107,816
|
|
|
$
|
111,828
|
|
Gross derivative assets/liabilities
|
|
|
|
$
|
330,316
|
|
|
$
|
256,528
|
|
|
|
|
|
$
|
107,816
|
|
|
$
|
118,305
|
|
|||
Less: Master netting agreements
|
|
|
|
(121,561
|
)
|
|
(121,561
|
)
|
|
|
|
(31,569
|
)
|
|
(31,569
|
)
|
||||||||
Less: Cash collateral received/paid
|
|
|
|
(3,758
|
)
|
|
(38,238
|
)
|
|
|
|
(13,577
|
)
|
|
(6,833
|
)
|
||||||||
Net derivative assets/liabilities
|
|
|
|
$
|
204,997
|
|
|
$
|
96,729
|
|
|
|
|
$
|
62,670
|
|
|
$
|
79,903
|
|
||||
|
(1)
|
The Company held equity contracts in three public companies and 18 private companies as of December 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 7,811 thousand barrels of crude oil and 63,773 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of December 31, 2019. In comparison, the notional amount of the Company’s commodity contracts entered with its customers totaled 2,507 thousand of crude oil and 14,722 thousand MMBTUs of natural gas as of December 31, 2018. The Company simultaneously entered into the offsetting commodity contracts with mirrored terms with third-party financial institutions.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Gains (losses) recorded in interest expense:
|
|
|
|
|
|
|
||||||
Recognized on interest rate swaps
|
|
$
|
2,655
|
|
|
$
|
(93
|
)
|
|
$
|
(2,734
|
)
|
Recognized on certificates of deposit
|
|
$
|
(2,536
|
)
|
|
$
|
278
|
|
|
$
|
2,271
|
|
|
(1)
|
Represents the full carrying amount of the hedged certificates of deposit.
|
(2)
|
For liabilities, (increase) decrease to carrying value.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
(Losses) gains recognized in AOCI
|
|
$
|
(471
|
)
|
|
$
|
6,072
|
|
|
$
|
(648
|
)
|
(Losses) recognized in Foreign exchange income(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,953
|
)
|
|
(1)
|
Represents the losses recorded in the Consolidated Statement of Income related to the ineffective portion of the net investment hedges prior to the adoption of ASU 2017-12, effective January 1, 2018. After the adoption, the fair value gains (losses) are recorded in Foreign Currency Translation Adjustments within AOCI.
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount |
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Written options
|
|
$
|
1,003,558
|
|
|
$
|
—
|
|
|
$
|
66
|
|
|
Purchased options
|
|
$
|
1,003,558
|
|
|
$
|
67
|
|
|
$
|
—
|
|
Sold collars and corridors
|
|
490,852
|
|
|
1,971
|
|
|
16
|
|
|
Collars and corridors
|
|
490,852
|
|
|
17
|
|
|
1,996
|
|
||||||
Swaps
|
|
6,247,667
|
|
|
187,294
|
|
|
6,237
|
|
|
Swaps
|
|
6,253,205
|
|
|
3,534
|
|
|
115,804
|
|
||||||
Total
|
|
$
|
7,742,077
|
|
|
$
|
189,265
|
|
|
$
|
6,319
|
|
|
Total
|
|
$
|
7,747,615
|
|
|
$
|
3,618
|
|
|
$
|
117,800
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount |
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Written options
|
|
$
|
931,601
|
|
|
$
|
—
|
|
|
$
|
492
|
|
|
Purchased options
|
|
$
|
931,601
|
|
|
$
|
503
|
|
|
$
|
—
|
|
Sold collars and corridors
|
|
429,879
|
|
|
1,121
|
|
|
305
|
|
|
Collars and corridors
|
|
429,879
|
|
|
308
|
|
|
1,140
|
|
||||||
Swaps
|
|
4,482,881
|
|
|
41,457
|
|
|
41,545
|
|
|
Swaps
|
|
4,489,658
|
|
|
26,429
|
|
|
25,785
|
|
||||||
Total
|
|
$
|
5,844,361
|
|
|
$
|
42,578
|
|
|
$
|
42,342
|
|
|
Total
|
|
$
|
5,851,138
|
|
|
$
|
27,240
|
|
|
$
|
26,925
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
Financial Counterparty
|
|||||||||||||||||||||||
|
Notional
Amount |
|
Fair Value
|
|
|
|
Notional
Amount |
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
($ in thousands)
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
Forwards and spot
|
|
$
|
3,581,036
|
|
|
$
|
45,911
|
|
|
$
|
40,591
|
|
|
Forwards and spot
|
|
$
|
207,492
|
|
|
$
|
1,400
|
|
|
$
|
507
|
|
Swaps
|
|
6,889
|
|
|
16
|
|
|
84
|
|
|
Swaps
|
|
702,391
|
|
|
6,156
|
|
|
4,712
|
|
||||||
Written options
|
|
87,036
|
|
|
127
|
|
|
—
|
|
|
Purchased options
|
|
87,036
|
|
|
—
|
|
|
127
|
|
||||||
Collars
|
|
2,244
|
|
|
—
|
|
|
14
|
|
|
Collars
|
|
165,537
|
|
|
1,027
|
|
|
989
|
|
||||||
Total
|
|
$
|
3,677,205
|
|
|
$
|
46,054
|
|
|
$
|
40,689
|
|
|
Total
|
|
$
|
1,162,456
|
|
|
$
|
8,583
|
|
|
$
|
6,335
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
Financial Counterparty
|
|||||||||||||||||||||||
|
Notional
Amount |
|
Fair Value
|
|
|
|
Notional
Amount |
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
($ in thousands)
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
Forwards and spot
|
|
$
|
2,023,425
|
|
|
$
|
11,719
|
|
|
$
|
13,079
|
|
|
Forwards and spot
|
|
$
|
506,342
|
|
|
$
|
3,407
|
|
|
$
|
2,285
|
|
Swaps
|
|
21,108
|
|
|
348
|
|
|
243
|
|
|
Swaps
|
|
687,845
|
|
|
5,764
|
|
|
3,336
|
|
||||||
Written options
|
|
537
|
|
|
16
|
|
|
—
|
|
|
Purchased options
|
|
537
|
|
|
—
|
|
|
16
|
|
||||||
Collars
|
|
83,864
|
|
|
—
|
|
|
370
|
|
|
Collars
|
|
83,864
|
|
|
370
|
|
|
—
|
|
||||||
Total
|
|
$
|
2,128,934
|
|
|
$
|
12,083
|
|
|
$
|
13,692
|
|
|
Total
|
|
$
|
1,278,588
|
|
|
$
|
9,541
|
|
|
$
|
5,637
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
RPAs - protection sold
|
|
$
|
199,964
|
|
|
$
|
—
|
|
|
$
|
84
|
|
|
$
|
108,606
|
|
|
$
|
—
|
|
|
$
|
164
|
|
RPAs - protection purchased
|
|
10,714
|
|
|
2
|
|
|
—
|
|
|
10,714
|
|
|
1
|
|
|
—
|
|
||||||
Total RPAs
|
|
$
|
210,678
|
|
|
$
|
2
|
|
|
$
|
84
|
|
|
$
|
119,320
|
|
|
$
|
1
|
|
|
$
|
164
|
|
|
|
||||||||||||||||||||||||||||
($ and units in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ and units in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||||
|
Notional
Unit
|
|
Fair Value
|
|
|
Notional
Unit
|
|
Fair Value
|
||||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||||
Crude oil:
|
|
|
|
|
|
|
|
|
|
Crude oil:
|
|
|
|
|
|
|
|
|
||||||||||
Written options
|
|
36
|
|
|
Barrels
|
|
$
|
—
|
|
|
$
|
30
|
|
|
Purchased options
|
|
36
|
|
|
Barrels
|
|
$
|
29
|
|
|
$
|
—
|
|
Collars
|
|
3,174
|
|
|
Barrels
|
|
2,673
|
|
|
538
|
|
|
Collars
|
|
3,630
|
|
|
Barrels
|
|
677
|
|
|
2,815
|
|
||||
Swaps
|
|
4,601
|
|
|
Barrels
|
|
6,949
|
|
|
5,531
|
|
|
Swaps
|
|
4,721
|
|
|
Barrels
|
|
4,516
|
|
|
5,215
|
|
||||
Total
|
|
7,811
|
|
|
|
|
$
|
9,622
|
|
|
$
|
6,099
|
|
|
Total
|
|
8,387
|
|
|
|
|
$
|
5,222
|
|
|
$
|
8,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas:
|
|
|
|
|
|
|
|
|
|
Natural gas:
|
|
|
|
|
|
|
|
|
||||||||||
Written options
|
|
540
|
|
|
MMBTUs
|
|
$
|
—
|
|
|
$
|
22
|
|
|
Purchased options
|
|
530
|
|
|
MMBTUs
|
|
$
|
21
|
|
|
$
|
—
|
|
Collars
|
|
14,277
|
|
|
MMBTUs
|
|
186
|
|
|
522
|
|
|
Collars
|
|
14,517
|
|
|
MMBTUs
|
|
471
|
|
|
150
|
|
||||
Swaps
|
|
48,956
|
|
|
MMBTUs
|
|
30,257
|
|
|
35,497
|
|
|
Swaps
|
|
48,779
|
|
|
MMBTUs
|
|
35,601
|
|
|
30,197
|
|
||||
Total
|
|
63,773
|
|
|
|
|
$
|
30,443
|
|
|
$
|
36,041
|
|
|
Total
|
|
63,826
|
|
|
|
|
$
|
36,093
|
|
|
$
|
30,347
|
|
Total
|
|
|
|
|
|
$
|
40,065
|
|
|
$
|
42,140
|
|
|
Total
|
|
|
|
|
|
$
|
41,315
|
|
|
$
|
38,377
|
|
||
|
|
||||||||||||||||||||||||||||
($ and units in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ and units in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||||
|
Notional
Unit
|
|
Fair Value
|
|
|
Notional
Unit
|
|
Fair Value
|
||||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||||
Crude oil:
|
|
|
|
|
|
|
|
|
|
Crude oil:
|
|
|
|
|
|
|
|
|
||||||||||
Written options
|
|
524
|
|
|
Barrels
|
|
$
|
—
|
|
|
$
|
2,628
|
|
|
Purchased options
|
|
524
|
|
|
Barrels
|
|
$
|
2,251
|
|
|
$
|
—
|
|
Collars
|
|
872
|
|
|
Barrels
|
|
—
|
|
|
3,772
|
|
|
Collars
|
|
872
|
|
|
Barrels
|
|
3,225
|
|
|
—
|
|
||||
Swaps
|
|
1,111
|
|
|
Barrels
|
|
—
|
|
|
14,278
|
|
|
Swaps
|
|
1,111
|
|
|
Barrels
|
|
5,799
|
|
|
—
|
|
||||
Total
|
|
2,507
|
|
|
|
|
$
|
—
|
|
|
$
|
20,678
|
|
|
Total
|
|
2,507
|
|
|
|
|
$
|
11,275
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas:
|
|
|
|
|
|
|
|
|
|
Natural gas:
|
|
|
|
|
|
|
|
|
||||||||||
Collars
|
|
3,063
|
|
|
MMBTUs
|
|
$
|
78
|
|
|
$
|
152
|
|
|
Collars
|
|
3,063
|
|
|
MMBTUs
|
|
$
|
151
|
|
|
$
|
64
|
|
Swaps
|
|
11,659
|
|
|
MMBTUs
|
|
1,049
|
|
|
1,857
|
|
|
Swaps
|
|
11,659
|
|
|
MMBTUs
|
|
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 in
Consolidated
Statement of Income
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
Interest rate contracts and other derivative income
|
|
$
|
(2,126
|
)
|
|
$
|
280
|
|
|
$
|
(1,772
|
)
|
Foreign exchange contracts
|
|
Foreign exchange income
|
|
22,264
|
|
|
16,784
|
|
|
22,076
|
|
|||
Credit contracts
|
|
Interest rate contracts and other derivative income
|
|
59
|
|
|
(156
|
)
|
|
(7
|
)
|
|||
Equity contracts
|
|
Lending fees
|
|
678
|
|
|
512
|
|
|
1,672
|
|
|||
Commodity contracts
|
|
Interest rate contracts and other derivative income
|
|
(67
|
)
|
|
(11
|
)
|
|
—
|
|
|||
Net gains
|
|
|
|
$
|
20,808
|
|
|
$
|
17,409
|
|
|
$
|
21,969
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
As of December 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
|
|
$
|
330,316
|
|
|
$
|
(121,561
|
)
|
|
$
|
(3,758
|
)
|
|
$
|
204,997
|
|
|
$
|
—
|
|
|
$
|
204,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
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
|
|
$
|
256,528
|
|
|
$
|
(121,561
|
)
|
|
$
|
(38,238
|
)
|
|
$
|
96,729
|
|
|
$
|
(79,619
|
)
|
|
$
|
17,110
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
As of December 31, 2018
|
||||||||||||||||||||||
|
|
Gross
Amounts Recognized (1) |
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net
Amount |
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Received (3)
|
|
|
Security Collateral
Received (5) |
|
||||||||||||||||
Derivative assets
|
|
$
|
107,816
|
|
|
$
|
(31,569
|
)
|
|
$
|
(13,577
|
)
|
|
$
|
62,670
|
|
|
$
|
(13,975
|
)
|
|
$
|
48,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Gross
Amounts Recognized (2) |
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net
Amount |
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Pledged (4)
|
|
|
Security Collateral
Pledged (5)
|
|
||||||||||||||||
Derivative liabilities
|
|
$
|
118,305
|
|
|
$
|
(31,569
|
)
|
|
$
|
(6,833
|
)
|
|
$
|
79,903
|
|
|
$
|
(11,231
|
)
|
|
$
|
68,672
|
|
|
(1)
|
Gross amounts recognized for derivative assets include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of $328.7 million and $105.9 million, respectively, as of December 31, 2019 and 2018, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of $1.6 million and $2.0 million, respectively, as of December 31, 2019 and 2018.
|
(2)
|
Gross amounts recognized for derivative liabilities include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of $256.5 million and $118.2 million, respectively, as of December 31, 2019 and 2018, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of $20 thousand and $102 thousand, respectively, as of December 31, 2019 and 2018.
|
(3)
|
Gross cash collateral received under master netting arrangements or similar agreements were $3.8 million and $15.8 million, respectively, as of December 31, 2019 and 2018. Of the gross cash collateral received,$3.8 million and $13.6 million were used to offset against derivative assets, respectively, as of December 31, 2019 and 2018.
|
(4)
|
Gross cash collateral pledged under master netting arrangements or similar agreements were $43.0 million and $8.4 million, respectively, as of December 31, 2019 and 2018. Of the gross cash collateral pledged, $38.2 million and $6.8 million were used to offset against derivative liabilities, respectively, as of December 31, 2019 and 2018.
|
(5)
|
Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of non-cash collateral on the consolidated balance sheet but requires disclosure of such amounts.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 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
|
|
$
|
12,149,121
|
|
|
$
|
1,810
|
|
|
$
|
12,150,931
|
|
|
$
|
12,054,818
|
|
|
$
|
2,152
|
|
|
$
|
12,056,970
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CRE
|
|
10,165,247
|
|
|
113,201
|
|
|
10,278,448
|
|
|
9,097,165
|
|
|
163,034
|
|
|
9,260,199
|
|
||||||
Multifamily residential
|
|
2,834,212
|
|
|
22,162
|
|
|
2,856,374
|
|
|
2,433,924
|
|
|
36,744
|
|
|
2,470,668
|
|
||||||
Construction and land
|
|
628,459
|
|
|
40
|
|
|
628,499
|
|
|
538,752
|
|
|
42
|
|
|
538,794
|
|
||||||
Total CRE
|
|
13,627,918
|
|
|
135,403
|
|
|
13,763,321
|
|
|
12,069,841
|
|
|
199,820
|
|
|
12,269,661
|
|
||||||
Total commercial
|
|
25,777,039
|
|
|
137,213
|
|
|
25,914,252
|
|
|
24,124,659
|
|
|
201,972
|
|
|
24,326,631
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
7,028,979
|
|
|
79,611
|
|
|
7,108,590
|
|
|
5,939,258
|
|
|
97,196
|
|
|
6,036,454
|
|
||||||
HELOCs
|
|
1,466,736
|
|
|
6,047
|
|
|
1,472,783
|
|
|
1,681,979
|
|
|
8,855
|
|
|
1,690,834
|
|
||||||
Total residential mortgage
|
|
8,495,715
|
|
|
85,658
|
|
|
8,581,373
|
|
|
7,621,237
|
|
|
106,051
|
|
|
7,727,288
|
|
||||||
Other consumer
|
|
282,914
|
|
|
—
|
|
|
282,914
|
|
|
331,270
|
|
|
—
|
|
|
331,270
|
|
||||||
Total consumer
|
|
8,778,629
|
|
|
85,658
|
|
|
8,864,287
|
|
|
7,952,507
|
|
|
106,051
|
|
|
8,058,558
|
|
||||||
Total loans held-for-investment
|
|
$
|
34,555,668
|
|
|
$
|
222,871
|
|
|
$
|
34,778,539
|
|
|
$
|
32,077,166
|
|
|
$
|
308,023
|
|
|
$
|
32,385,189
|
|
Allowance for loan losses
|
|
(358,287
|
)
|
|
—
|
|
|
(358,287
|
)
|
|
(311,300
|
)
|
|
(22
|
)
|
|
(311,322
|
)
|
||||||
Loans held-for-investment, net
|
|
$
|
34,197,381
|
|
|
$
|
222,871
|
|
|
$
|
34,420,252
|
|
|
$
|
31,765,866
|
|
|
$
|
308,001
|
|
|
$
|
32,073,867
|
|
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(43.2) million and $(48.9) million as of December 31, 2019 and 2018, respectively.
|
(2)
|
Includes ASC 310-30 discount of $14.3 million and $22.2 million as of December 31, 2019 and 2018, respectively.
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total Non-
PCI Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
11,423,094
|
|
|
$
|
406,543
|
|
|
$
|
302,509
|
|
|
$
|
16,975
|
|
|
$
|
12,149,121
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
10,003,749
|
|
|
83,683
|
|
|
77,815
|
|
|
—
|
|
|
10,165,247
|
|
|||||
Multifamily residential
|
|
2,806,475
|
|
|
20,406
|
|
|
7,331
|
|
|
—
|
|
|
2,834,212
|
|
|||||
Construction and land
|
|
603,447
|
|
|
—
|
|
|
25,012
|
|
|
—
|
|
|
628,459
|
|
|||||
Total CRE
|
|
13,413,671
|
|
|
104,089
|
|
|
110,158
|
|
|
—
|
|
|
13,627,918
|
|
|||||
Total commercial
|
|
24,836,765
|
|
|
510,632
|
|
|
412,667
|
|
|
16,975
|
|
|
25,777,039
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
7,012,522
|
|
|
2,278
|
|
|
14,179
|
|
|
—
|
|
|
7,028,979
|
|
|||||
HELOCs
|
|
1,453,207
|
|
|
2,787
|
|
|
10,742
|
|
|
—
|
|
|
1,466,736
|
|
|||||
Total residential mortgage
|
|
8,465,729
|
|
|
5,065
|
|
|
24,921
|
|
|
—
|
|
|
8,495,715
|
|
|||||
Other consumer
|
|
280,392
|
|
|
5
|
|
|
2,517
|
|
|
—
|
|
|
282,914
|
|
|||||
Total consumer
|
|
8,746,121
|
|
|
5,070
|
|
|
27,438
|
|
|
—
|
|
|
8,778,629
|
|
|||||
Total
|
|
$
|
33,582,886
|
|
|
$
|
515,702
|
|
|
$
|
440,105
|
|
|
$
|
16,975
|
|
|
$
|
34,555,668
|
|
|
|
||||||||||||||||||||
($ 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:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
8,957,228
|
|
|
49,705
|
|
|
90,232
|
|
|
—
|
|
|
9,097,165
|
|
|||||
Multifamily residential
|
|
2,402,991
|
|
|
20,551
|
|
|
10,382
|
|
|
—
|
|
|
2,433,924
|
|
|||||
Construction and land
|
|
485,217
|
|
|
19,838
|
|
|
33,697
|
|
|
—
|
|
|
538,752
|
|
|||||
Total CRE
|
|
11,845,436
|
|
|
90,094
|
|
|
134,311
|
|
|
—
|
|
|
12,069,841
|
|
|||||
Total commercial
|
|
23,489,906
|
|
|
350,183
|
|
|
274,155
|
|
|
10,415
|
|
|
24,124,659
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
5,925,584
|
|
|
6,376
|
|
|
7,298
|
|
|
—
|
|
|
5,939,258
|
|
|||||
HELOCs
|
|
1,669,300
|
|
|
1,576
|
|
|
11,103
|
|
|
—
|
|
|
1,681,979
|
|
|||||
Total residential mortgage
|
|
7,594,884
|
|
|
7,952
|
|
|
18,401
|
|
|
—
|
|
|
7,621,237
|
|
|||||
Other consumer
|
|
328,767
|
|
|
1
|
|
|
2,502
|
|
|
—
|
|
|
331,270
|
|
|||||
Total consumer
|
|
7,923,651
|
|
|
7,953
|
|
|
20,903
|
|
|
—
|
|
|
7,952,507
|
|
|||||
Total
|
|
$
|
31,413,557
|
|
|
$
|
358,136
|
|
|
$
|
295,058
|
|
|
$
|
10,415
|
|
|
$
|
32,077,166
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total PCI
Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
1,810
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,810
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
102,257
|
|
|
—
|
|
|
10,944
|
|
|
—
|
|
|
113,201
|
|
|||||
Multifamily residential
|
|
22,162
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,162
|
|
|||||
Construction and land
|
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|||||
Total CRE
|
|
124,459
|
|
|
—
|
|
|
10,944
|
|
|
—
|
|
|
135,403
|
|
|||||
Total commercial
|
|
126,269
|
|
|
—
|
|
|
10,944
|
|
|
—
|
|
|
137,213
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
79,517
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
79,611
|
|
|||||
HELOCs
|
|
5,849
|
|
|
—
|
|
|
198
|
|
|
—
|
|
|
6,047
|
|
|||||
Total residential mortgage
|
|
85,366
|
|
|
—
|
|
|
292
|
|
|
—
|
|
|
85,658
|
|
|||||
Total consumer
|
|
85,366
|
|
|
—
|
|
|
292
|
|
|
—
|
|
|
85,658
|
|
|||||
Total (1)
|
|
$
|
211,635
|
|
|
$
|
—
|
|
|
$
|
11,236
|
|
|
$
|
—
|
|
|
$
|
222,871
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total PCI
Loans |
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
1,996
|
|
|
$
|
—
|
|
|
$
|
156
|
|
|
$
|
—
|
|
|
$
|
2,152
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
143,839
|
|
|
—
|
|
|
19,195
|
|
|
—
|
|
|
163,034
|
|
|||||
Multifamily residential
|
|
35,221
|
|
|
—
|
|
|
1,523
|
|
|
—
|
|
|
36,744
|
|
|||||
Construction and land
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Total CRE
|
|
179,102
|
|
|
—
|
|
|
20,718
|
|
|
—
|
|
|
199,820
|
|
|||||
Total commercial
|
|
181,098
|
|
|
—
|
|
|
20,874
|
|
|
—
|
|
|
201,972
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
95,789
|
|
|
1,021
|
|
|
386
|
|
|
—
|
|
|
97,196
|
|
|||||
HELOCs
|
|
8,314
|
|
|
256
|
|
|
285
|
|
|
—
|
|
|
8,855
|
|
|||||
Total residential mortgage
|
|
104,103
|
|
|
1,277
|
|
|
671
|
|
|
—
|
|
|
106,051
|
|
|||||
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)
|
|
December 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
|
|
$
|
31,121
|
|
|
$
|
17,034
|
|
|
$
|
48,155
|
|
|
$
|
31,084
|
|
|
$
|
43,751
|
|
|
$
|
74,835
|
|
|
$
|
12,026,131
|
|
|
$
|
12,149,121
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CRE
|
|
22,830
|
|
|
1,977
|
|
|
24,807
|
|
|
540
|
|
|
15,901
|
|
|
16,441
|
|
|
10,123,999
|
|
|
10,165,247
|
|
||||||||
Multifamily residential
|
|
198
|
|
|
531
|
|
|
729
|
|
|
534
|
|
|
285
|
|
|
819
|
|
|
2,832,664
|
|
|
2,834,212
|
|
||||||||
Construction and land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
628,459
|
|
|
628,459
|
|
||||||||
Total CRE
|
|
23,028
|
|
|
2,508
|
|
|
25,536
|
|
|
1,074
|
|
|
16,186
|
|
|
17,260
|
|
|
13,585,122
|
|
|
13,627,918
|
|
||||||||
Total commercial
|
|
54,149
|
|
|
19,542
|
|
|
73,691
|
|
|
32,158
|
|
|
59,937
|
|
|
92,095
|
|
|
25,611,253
|
|
|
25,777,039
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family
residential
|
|
15,443
|
|
|
5,074
|
|
|
20,517
|
|
|
1,964
|
|
|
12,901
|
|
|
14,865
|
|
|
6,993,597
|
|
|
7,028,979
|
|
||||||||
HELOCs
|
|
4,273
|
|
|
2,791
|
|
|
7,064
|
|
|
1,448
|
|
|
9,294
|
|
|
10,742
|
|
|
1,448,930
|
|
|
1,466,736
|
|
||||||||
Total residential
mortgage
|
|
19,716
|
|
|
7,865
|
|
|
27,581
|
|
|
3,412
|
|
|
22,195
|
|
|
25,607
|
|
|
8,442,527
|
|
|
8,495,715
|
|
||||||||
Other consumer
|
|
6
|
|
|
5
|
|
|
11
|
|
|
—
|
|
|
2,517
|
|
|
2,517
|
|
|
280,386
|
|
|
282,914
|
|
||||||||
Total consumer
|
|
19,722
|
|
|
7,870
|
|
|
27,592
|
|
|
3,412
|
|
|
24,712
|
|
|
28,124
|
|
|
8,722,913
|
|
|
8,778,629
|
|
||||||||
Total
|
|
$
|
73,871
|
|
|
$
|
27,412
|
|
|
$
|
101,283
|
|
|
$
|
35,570
|
|
|
$
|
84,649
|
|
|
$
|
120,219
|
|
|
$
|
34,334,166
|
|
|
$
|
34,555,668
|
|
|
|
||||||||||||||||||||||||||||||||
($ 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CRE
|
|
7,740
|
|
|
—
|
|
|
7,740
|
|
|
3,704
|
|
|
20,514
|
|
|
24,218
|
|
|
9,065,207
|
|
|
9,097,165
|
|
||||||||
Multifamily residential
|
|
4,174
|
|
|
—
|
|
|
4,174
|
|
|
1,067
|
|
|
193
|
|
|
1,260
|
|
|
2,428,490
|
|
|
2,433,924
|
|
||||||||
Construction and land
|
|
207
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
538,545
|
|
|
538,752
|
|
||||||||
Total CRE
|
|
12,121
|
|
|
—
|
|
|
12,121
|
|
|
4,771
|
|
|
20,707
|
|
|
25,478
|
|
|
12,032,242
|
|
|
12,069,841
|
|
||||||||
Total commercial
|
|
33,153
|
|
|
19,170
|
|
|
52,323
|
|
|
21,868
|
|
|
47,450
|
|
|
69,318
|
|
|
24,003,018
|
|
|
24,124,659
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
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
|
|
||||||||
Total residential
mortgage
|
|
17,218
|
|
|
9,666
|
|
|
26,884
|
|
|
1,932
|
|
|
11,941
|
|
|
13,873
|
|
|
7,580,480
|
|
|
7,621,237
|
|
||||||||
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)
|
|
Loans Modified as TDRs During the Year Ended December 31, 2019
|
|||||||||||||
|
Number
of Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
C&I
|
|
8
|
|
|
$
|
95,742
|
|
|
$
|
71,332
|
|
|
$
|
8,004
|
|
CRE:
|
|
|
|
|
|
|
|
|
|||||||
Construction and land
|
|
1
|
|
|
19,696
|
|
|
19,691
|
|
|
—
|
|
|||
Total CRE
|
|
1
|
|
|
19,696
|
|
|
19,691
|
|
|
—
|
|
|||
Total commercial
|
|
9
|
|
|
$
|
115,438
|
|
|
$
|
91,023
|
|
|
$
|
8,004
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|||||||
Single-family residential
|
|
2
|
|
|
$
|
1,123
|
|
|
$
|
1,098
|
|
|
$
|
2
|
|
HELOCs
|
|
2
|
|
|
539
|
|
|
528
|
|
|
—
|
|
|||
Total residential mortgage
|
|
4
|
|
|
1,662
|
|
|
1,626
|
|
|
2
|
|
|||
Total consumer
|
|
4
|
|
|
$
|
1,662
|
|
|
$
|
1,626
|
|
|
$
|
2
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Year Ended December 31, 2018
|
|||||||||||||
|
Number
of Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
C&I
|
|
8
|
|
|
$
|
11,366
|
|
|
$
|
9,520
|
|
|
$
|
699
|
|
CRE:
|
|
|
|
|
|
|
|
|
|||||||
CRE
|
|
1
|
|
|
750
|
|
|
752
|
|
|
—
|
|
|||
Total CRE
|
|
1
|
|
|
750
|
|
|
752
|
|
|
—
|
|
|||
Total commercial
|
|
9
|
|
|
$
|
12,116
|
|
|
$
|
10,272
|
|
|
$
|
699
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|||||||
Single-family residential
|
|
2
|
|
|
$
|
405
|
|
|
$
|
391
|
|
|
$
|
(28
|
)
|
HELOCs
|
|
2
|
|
|
1,546
|
|
|
1,418
|
|
|
—
|
|
|||
Total residential mortgage
|
|
4
|
|
|
1,951
|
|
|
1,809
|
|
|
(28
|
)
|
|||
Total consumer
|
|
4
|
|
|
$
|
1,951
|
|
|
$
|
1,809
|
|
|
$
|
(28
|
)
|
|
|
|||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Year Ended December 31, 2017
|
|||||||||||||
|
Number
of Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
C&I
|
|
16
|
|
|
$
|
43,884
|
|
|
$
|
37,900
|
|
|
$
|
11,520
|
|
CRE:
|
|
|
|
|
|
|
|
|
|||||||
CRE
|
|
4
|
|
|
2,675
|
|
|
2,627
|
|
|
157
|
|
|||
Multifamily residential
|
|
1
|
|
|
3,655
|
|
|
2,969
|
|
|
—
|
|
|||
Total CRE
|
|
5
|
|
|
6,330
|
|
|
5,596
|
|
|
157
|
|
|||
Total commercial
|
|
21
|
|
|
$
|
50,214
|
|
|
$
|
43,496
|
|
|
$
|
11,677
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|||||||
HELOCs
|
|
1
|
|
|
$
|
152
|
|
|
$
|
155
|
|
|
$
|
—
|
|
Total residential mortgage
|
|
1
|
|
|
152
|
|
|
155
|
|
|
—
|
|
|||
Total consumer
|
|
1
|
|
|
$
|
152
|
|
|
$
|
155
|
|
|
$
|
—
|
|
|
(1)
|
Includes subsequent payments after modification and reflects the balance as of December 31, 2019, 2018 and 2017.
|
(2)
|
The financial impact includes charge-offs and specific reserves recorded since the modification date.
|
|
||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2019
|
||||||||||||||||||
|
Principal (1)
|
|
Principal
and
Interest (2)
|
|
Interest
Rate
Reduction
|
|
Other (3)
|
|
Total
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
31,611
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39,721
|
|
|
$
|
71,332
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land
|
|
—
|
|
|
—
|
|
|
19,691
|
|
|
—
|
|
|
19,691
|
|
|||||
Total CRE
|
|
—
|
|
|
—
|
|
|
19,691
|
|
|
—
|
|
|
19,691
|
|
|||||
Total commercial
|
|
31,611
|
|
|
—
|
|
|
19,691
|
|
|
39,721
|
|
|
91,023
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
—
|
|
|
1,098
|
|
|
—
|
|
|
—
|
|
|
1,098
|
|
|||||
HELOCs
|
|
—
|
|
|
397
|
|
|
—
|
|
|
131
|
|
|
528
|
|
|||||
Total residential mortgage
|
|
—
|
|
|
1,495
|
|
|
—
|
|
|
131
|
|
|
1,626
|
|
|||||
Total consumer
|
|
—
|
|
|
1,495
|
|
|
—
|
|
|
131
|
|
|
1,626
|
|
|||||
Total
|
|
$
|
31,611
|
|
|
$
|
1,495
|
|
|
$
|
19,691
|
|
|
$
|
39,852
|
|
|
$
|
92,649
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2018
|
||||||||||||||||||
|
Principal (1)
|
|
Principal
and
Interest (2)
|
|
Interest
Rate
Reduction
|
|
Other (3)
|
|
Total
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
5,472
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,048
|
|
|
$
|
9,520
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
—
|
|
|
—
|
|
|
752
|
|
|
—
|
|
|
752
|
|
|||||
Total CRE
|
|
—
|
|
|
—
|
|
|
752
|
|
|
—
|
|
|
752
|
|
|||||
Total commercial
|
|
5,472
|
|
|
—
|
|
|
752
|
|
|
4,048
|
|
|
10,272
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
66
|
|
|
—
|
|
|
—
|
|
|
325
|
|
|
391
|
|
|||||
HELOCs
|
|
1,353
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
1,418
|
|
|||||
Total residential mortgage
|
|
1,419
|
|
|
—
|
|
|
—
|
|
|
390
|
|
|
1,809
|
|
|||||
Total consumer
|
|
1,419
|
|
|
—
|
|
|
—
|
|
|
390
|
|
|
1,809
|
|
|||||
Total
|
|
$
|
6,891
|
|
|
$
|
—
|
|
|
$
|
752
|
|
|
$
|
4,438
|
|
|
$
|
12,081
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Year Ended December 31, 2017
|
||||||||||||||||||
|
Principal (1)
|
|
Principal
and Interest (2) |
|
Interest
Rate Reduction |
|
Other (3)
|
|
Total
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
13,568
|
|
|
$
|
7,848
|
|
|
$
|
—
|
|
|
$
|
16,484
|
|
|
$
|
37,900
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
2,627
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,627
|
|
|||||
Multifamily residential
|
|
2,969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,969
|
|
|||||
Total CRE
|
|
5,596
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,596
|
|
|||||
Total commercial
|
|
19,164
|
|
|
7,848
|
|
|
—
|
|
|
16,484
|
|
|
43,496
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
HELOCs
|
|
—
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|||||
Total residential mortgage
|
|
—
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|||||
Total consumer
|
|
—
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|||||
Total
|
|
$
|
19,164
|
|
|
$
|
8,003
|
|
|
$
|
—
|
|
|
$
|
16,484
|
|
|
$
|
43,651
|
|
|
(1)
|
Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.
|
(2)
|
Includes principal and interest deferments or reductions.
|
(3)
|
Includes primarily funding to secure additional collateral and provides liquidity to collateral-dependent C&I loans.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs that Subsequently Defaulted
During the Year Ended December 31, |
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
C&I
|
|
3
|
|
|
$
|
13,112
|
|
|
4
|
|
|
$
|
1,890
|
|
|
3
|
|
|
$
|
8,659
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CRE
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
186
|
|
|
—
|
|
|
$
|
—
|
|
Total CRE
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
186
|
|
|
—
|
|
|
$
|
—
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
HELOCs
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
150
|
|
|
—
|
|
|
$
|
—
|
|
Total residential mortgage
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
150
|
|
|
—
|
|
|
$
|
—
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
With No
Allowance
|
|
Recorded
Investment
With
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
174,656
|
|
|
$
|
73,956
|
|
|
$
|
40,086
|
|
|
$
|
114,042
|
|
|
$
|
2,881
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
27,601
|
|
|
20,098
|
|
|
1,520
|
|
|
21,618
|
|
|
97
|
|
|||||
Multifamily residential
|
|
4,965
|
|
|
1,371
|
|
|
3,093
|
|
|
4,464
|
|
|
55
|
|
|||||
Construction and land
|
|
19,696
|
|
|
19,691
|
|
|
—
|
|
|
19,691
|
|
|
—
|
|
|||||
Total CRE
|
|
52,262
|
|
|
41,160
|
|
|
4,613
|
|
|
45,773
|
|
|
152
|
|
|||||
Total commercial
|
|
226,918
|
|
|
115,116
|
|
|
44,699
|
|
|
159,815
|
|
|
3,033
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
23,626
|
|
|
8,507
|
|
|
13,704
|
|
|
22,211
|
|
|
35
|
|
|||||
HELOCs
|
|
13,711
|
|
|
6,125
|
|
|
7,449
|
|
|
13,574
|
|
|
8
|
|
|||||
Total residential mortgage
|
|
37,337
|
|
|
14,632
|
|
|
21,153
|
|
|
35,785
|
|
|
43
|
|
|||||
Other consumer
|
|
2,517
|
|
|
—
|
|
|
2,517
|
|
|
2,517
|
|
|
2,517
|
|
|||||
Total consumer
|
|
39,854
|
|
|
14,632
|
|
|
23,670
|
|
|
38,302
|
|
|
2,560
|
|
|||||
Total non-PCI impaired loans
|
|
$
|
266,772
|
|
|
$
|
129,748
|
|
|
$
|
68,369
|
|
|
$
|
198,117
|
|
|
$
|
5,593
|
|
|
|
||||||||||||||||||||
($ 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:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRE
|
|
36,426
|
|
|
28,285
|
|
|
2,067
|
|
|
30,352
|
|
|
208
|
|
|||||
Multifamily residential
|
|
6,031
|
|
|
2,949
|
|
|
2,611
|
|
|
5,560
|
|
|
75
|
|
|||||
Total CRE
|
|
42,457
|
|
|
31,234
|
|
|
4,678
|
|
|
35,912
|
|
|
283
|
|
|||||
Total commercial
|
|
125,420
|
|
|
79,713
|
|
|
13,287
|
|
|
93,000
|
|
|
1,502
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
14,670
|
|
|
2,552
|
|
|
10,908
|
|
|
13,460
|
|
|
34
|
|
|||||
HELOCs
|
|
10,035
|
|
|
5,547
|
|
|
4,409
|
|
|
9,956
|
|
|
5
|
|
|||||
Total residential mortgage
|
|
24,705
|
|
|
8,099
|
|
|
15,317
|
|
|
23,416
|
|
|
39
|
|
|||||
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)
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||
|
Average
Recorded
Investment
|
|
Recognized
Interest
Income (1)
|
|
Average
Recorded Investment |
|
Recognized
Interest Income (1) |
|
Average
Recorded Investment |
|
Recognized
Interest
Income (1)
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
248,619
|
|
|
$
|
2,932
|
|
|
$
|
143,430
|
|
|
$
|
1,046
|
|
|
$
|
110,662
|
|
|
$
|
1,517
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CRE
|
|
33,046
|
|
|
464
|
|
|
35,049
|
|
|
491
|
|
|
36,003
|
|
|
578
|
|
||||||
Multifamily residential
|
|
6,116
|
|
|
228
|
|
|
11,742
|
|
|
249
|
|
|
11,455
|
|
|
422
|
|
||||||
Construction and land
|
|
19,691
|
|
|
68
|
|
|
3,973
|
|
|
—
|
|
|
4,382
|
|
|
—
|
|
||||||
Total CRE
|
|
58,853
|
|
|
760
|
|
|
50,764
|
|
|
740
|
|
|
51,840
|
|
|
1,000
|
|
||||||
Total commercial
|
|
307,472
|
|
|
3,692
|
|
|
194,194
|
|
|
1,786
|
|
|
162,502
|
|
|
2,517
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
37,315
|
|
|
496
|
|
|
22,350
|
|
|
474
|
|
|
14,994
|
|
|
417
|
|
||||||
HELOCs
|
|
22,851
|
|
|
130
|
|
|
14,134
|
|
|
70
|
|
|
5,494
|
|
|
55
|
|
||||||
Total residential mortgage
|
|
60,166
|
|
|
626
|
|
|
36,484
|
|
|
544
|
|
|
20,488
|
|
|
472
|
|
||||||
Other consumer
|
|
2,552
|
|
|
—
|
|
|
2,502
|
|
|
—
|
|
|
2,142
|
|
|
—
|
|
||||||
Total consumer
|
|
62,718
|
|
|
626
|
|
|
38,986
|
|
|
544
|
|
|
22,630
|
|
|
472
|
|
||||||
Total non-PCI impaired loans
|
|
$
|
370,190
|
|
|
$
|
4,318
|
|
|
$
|
233,180
|
|
|
$
|
2,330
|
|
|
$
|
185,132
|
|
|
$
|
2,989
|
|
|
(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)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Non-PCI Loans
|
|
|
|
|
|
|
||||||
Allowance for non-PCI loans, beginning of period
|
|
$
|
311,300
|
|
|
$
|
287,070
|
|
|
$
|
260,402
|
|
Provision for loan losses on non-PCI loans
|
|
100,115
|
|
|
65,043
|
|
|
49,129
|
|
|||
Gross charge-offs:
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
||||||
C&I
|
|
(73,985
|
)
|
|
(59,244
|
)
|
|
(38,118
|
)
|
|||
CRE:
|
|
|
|
|
|
|
||||||
CRE
|
|
(1,021
|
)
|
|
—
|
|
|
—
|
|
|||
Multifamily residential
|
|
—
|
|
|
—
|
|
|
(635
|
)
|
|||
Construction and land
|
|
—
|
|
|
—
|
|
|
(149
|
)
|
|||
Total CRE
|
|
(1,021
|
)
|
|
—
|
|
|
(784
|
)
|
|||
Consumer:
|
|
|
|
|
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
(11
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|||
HELOCs
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|||
Total residential mortgage
|
|
(11
|
)
|
|
(1
|
)
|
|
(56
|
)
|
|||
Other consumer
|
|
(50
|
)
|
|
(188
|
)
|
|
(17
|
)
|
|||
Total gross charge-offs
|
|
(75,067
|
)
|
|
(59,433
|
)
|
|
(38,975
|
)
|
|||
Gross recoveries:
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
||||||
C&I
|
|
14,501
|
|
|
10,417
|
|
|
11,371
|
|
|||
CRE:
|
|
|
|
|
|
|
||||||
CRE
|
|
5,209
|
|
|
5,194
|
|
|
2,111
|
|
|||
Multifamily residential
|
|
1,856
|
|
|
1,757
|
|
|
1,357
|
|
|||
Construction and land
|
|
536
|
|
|
740
|
|
|
259
|
|
|||
Total CRE
|
|
7,601
|
|
|
7,691
|
|
|
3,727
|
|
|||
Consumer:
|
|
|
|
|
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
136
|
|
|
1,214
|
|
|
546
|
|
|||
HELOCs
|
|
7
|
|
|
38
|
|
|
24
|
|
|||
Total residential mortgage
|
|
143
|
|
|
1,252
|
|
|
570
|
|
|||
Other consumer
|
|
19
|
|
|
3
|
|
|
152
|
|
|||
Total gross recoveries
|
|
22,264
|
|
|
19,363
|
|
|
15,820
|
|
|||
Net charge-offs
|
|
(52,803
|
)
|
|
(40,070
|
)
|
|
(23,155
|
)
|
|||
Foreign currency translation adjustments
|
|
(325
|
)
|
|
(743
|
)
|
|
694
|
|
|||
Allowance for non-PCI loans, end of period
|
|
358,287
|
|
|
311,300
|
|
|
287,070
|
|
|||
PCI Loans
|
|
|
|
|
|
|
||||||
Allowance for PCI loans, beginning of period
|
|
22
|
|
|
58
|
|
|
118
|
|
|||
Reversal of loan losses on PCI loans
|
|
(22
|
)
|
|
(36
|
)
|
|
(60
|
)
|
|||
Allowance for PCI loans, end of period
|
|
—
|
|
|
22
|
|
|
58
|
|
|||
Allowance for loan losses
|
|
$
|
358,287
|
|
|
$
|
311,322
|
|
|
$
|
287,128
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Allowance for unfunded credit commitments, beginning of period
|
|
$
|
12,566
|
|
|
$
|
13,318
|
|
|
$
|
16,121
|
|
Reversal of unfunded credit commitments
|
|
(1,408
|
)
|
|
(752
|
)
|
|
(2,803
|
)
|
|||
Allowance for unfunded credit commitments, end of period
|
|
$
|
11,158
|
|
|
$
|
12,566
|
|
|
$
|
13,318
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
|
|
CRE
|
|
Residential Mortgage
|
|
|
|
||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer |
|
||||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
2,881
|
|
|
$
|
97
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
8
|
|
|
$
|
2,517
|
|
|
$
|
5,593
|
|
Collectively evaluated for impairment
|
|
235,495
|
|
|
40,412
|
|
|
22,771
|
|
|
19,404
|
|
|
28,492
|
|
|
5,257
|
|
|
863
|
|
|
352,694
|
|
||||||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
238,376
|
|
|
$
|
40,509
|
|
|
$
|
22,826
|
|
|
$
|
19,404
|
|
|
$
|
28,527
|
|
|
$
|
5,265
|
|
|
$
|
3,380
|
|
|
$
|
358,287
|
|
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
114,042
|
|
|
$
|
21,618
|
|
|
$
|
4,464
|
|
|
$
|
19,691
|
|
|
$
|
22,211
|
|
|
$
|
13,574
|
|
|
$
|
2,517
|
|
|
$
|
198,117
|
|
Collectively evaluated for impairment
|
|
12,035,079
|
|
|
10,143,629
|
|
|
2,829,748
|
|
|
608,768
|
|
|
7,006,768
|
|
|
1,453,162
|
|
|
280,397
|
|
|
34,357,551
|
|
||||||||
Acquired with deteriorated credit quality (1)
|
|
1,810
|
|
|
113,201
|
|
|
22,162
|
|
|
40
|
|
|
79,611
|
|
|
6,047
|
|
|
—
|
|
|
222,871
|
|
||||||||
Total (1)
|
|
$
|
12,150,931
|
|
|
$
|
10,278,448
|
|
|
$
|
2,856,374
|
|
|
$
|
628,499
|
|
|
$
|
7,108,590
|
|
|
$
|
1,472,783
|
|
|
$
|
282,914
|
|
|
$
|
34,778,539
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
|
|
CRE
|
|
Residential Mortgage
|
|
|
|
||||||||||||||||||||||||
|
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
|
|
187,898
|
|
|
40,436
|
|
|
19,810
|
|
|
20,290
|
|
|
31,306
|
|
|
5,769
|
|
|
1,759
|
|
|
307,268
|
|
||||||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||||||||
Total
|
|
$
|
189,117
|
|
|
$
|
40,666
|
|
|
$
|
19,885
|
|
|
$
|
20,290
|
|
|
$
|
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
|
|
|
9,066,813
|
|
|
2,428,364
|
|
|
538,752
|
|
|
5,925,798
|
|
|
1,672,023
|
|
|
328,768
|
|
|
31,958,248
|
|
||||||||
Acquired with deteriorated credit quality (1)
|
|
2,152
|
|
|
163,034
|
|
|
36,744
|
|
|
42
|
|
|
97,196
|
|
|
8,855
|
|
|
—
|
|
|
308,023
|
|
||||||||
Total (1)
|
|
$
|
12,056,970
|
|
|
$
|
9,260,199
|
|
|
$
|
2,470,668
|
|
|
$
|
538,794
|
|
|
$
|
6,036,454
|
|
|
$
|
1,690,834
|
|
|
$
|
331,270
|
|
|
$
|
32,385,189
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Accretable yield for PCI loans, beginning of period
|
|
$
|
74,870
|
|
|
$
|
101,977
|
|
|
$
|
136,247
|
|
Accretion
|
|
(24,220
|
)
|
|
(34,662
|
)
|
|
(42,487
|
)
|
|||
Changes in expected cash flows
|
|
(140
|
)
|
|
7,555
|
|
|
8,217
|
|
|||
Accretable yield for PCI loans, end of period
|
|
$
|
50,510
|
|
|
$
|
74,870
|
|
|
$
|
101,977
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2019
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
|
|
CRE
|
|
Residential Mortgage
|
|
|
|
||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential
|
|
Construction
and Land
|
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer
|
|
||||||||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
245,002
|
|
|
$
|
39,062
|
|
|
$
|
—
|
|
|
$
|
1,573
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
285,637
|
|
Sales (2)(3)(4)
|
|
$
|
245,791
|
|
|
$
|
39,062
|
|
|
$
|
—
|
|
|
$
|
1,573
|
|
|
$
|
10,410
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
296,836
|
|
Purchases (5)
|
|
$
|
397,615
|
|
|
$
|
—
|
|
|
$
|
8,988
|
|
|
$
|
—
|
|
|
$
|
117,227
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
523,830
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
|
|
CRE
|
|
Residential Mortgage
|
|
|
|
||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer |
|
||||||||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
404,321
|
|
|
$
|
62,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,981
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
481,593
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
2,306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,306
|
|
Sales (2)(3)(4)
|
|
$
|
413,844
|
|
|
$
|
62,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,966
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
511,101
|
|
Purchases (5)
|
|
$
|
525,767
|
|
|
$
|
—
|
|
|
$
|
7,389
|
|
|
$
|
—
|
|
|
$
|
63,781
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
596,937
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
|
|
CRE
|
|
Residential mortgage
|
|
|
|
||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
HELOCs
|
|
Other
Consumer |
|
||||||||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
476,644
|
|
|
$
|
52,217
|
|
|
$
|
531
|
|
|
$
|
1,609
|
|
|
$
|
249
|
|
|
$
|
—
|
|
|
$
|
3,706
|
|
|
$
|
534,956
|
|
Loans of DCB branches transferred from held-for-investment to held-for-sale (included in Branch assets held-for-sale) (1)
|
|
$
|
17,590
|
|
|
$
|
36,783
|
|
|
$
|
12,448
|
|
|
$
|
241
|
|
|
$
|
6,416
|
|
|
$
|
4,309
|
|
|
$
|
345
|
|
|
$
|
78,132
|
|
Sales (2)(3)(4)
|
|
$
|
476,644
|
|
|
$
|
52,217
|
|
|
$
|
531
|
|
|
$
|
1,609
|
|
|
$
|
21,058
|
|
|
$
|
—
|
|
|
$
|
25,905
|
|
|
$
|
577,964
|
|
Purchases (5)
|
|
$
|
503,359
|
|
|
$
|
—
|
|
|
$
|
2,311
|
|
|
$
|
—
|
|
|
$
|
29,060
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
534,730
|
|
|
(1)
|
The Company recorded $789 thousand, $14.6 million and $473 thousand in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(2)
|
Includes originated loans sold of $230.3 million, $309.7 million and $178.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. Originated loans sold were primarily comprised of C&I loans for the years ended December 31, 2019 and 2018; and C&I, CRE and single-family residential loans for the year ended December 31, 2017.
|
(3)
|
Includes purchased loans sold in the secondary market of $66.5 million, $201.4 million and $399.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(4)
|
Net gains on sales of loans were $4.0 million, $6.6 million and $8.9 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(5)
|
C&I loan purchases for each of the yeas ended December 31, 2019, 2018 and 2017 were comprised of broadly syndicated C&I term loans.
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
Investments in qualified affordable housing partnerships, net
|
|
$
|
207,037
|
|
|
$
|
184,873
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
80,294
|
|
|
$
|
80,764
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Tax credits and other tax benefits recognized
|
|
$
|
46,034
|
|
|
$
|
39,262
|
|
|
$
|
46,698
|
|
Amortization expense included in income tax expense
|
|
$
|
36,561
|
|
|
$
|
28,046
|
|
|
$
|
38,464
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
Investments in tax credit and other investments, net
|
|
$
|
254,140
|
|
|
$
|
231,635
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
113,515
|
|
|
$
|
80,228
|
|
|
|
||||
($ in thousands)
|
|
Amount
|
||
2020
|
|
$
|
121,875
|
|
2021
|
|
32,039
|
|
|
2022
|
|
13,459
|
|
|
2023
|
|
15,753
|
|
|
2024
|
|
8,145
|
|
|
Thereafter
|
|
2,538
|
|
|
Total
|
|
$
|
193,809
|
|
|
|
||||||||||||
($ in thousands)
|
|
Consumer
and
Business Banking
|
|
Commercial
Banking
|
|
Total
|
||||||
Balance, January 1, 2018
|
|
$
|
357,207
|
|
|
$
|
112,226
|
|
|
$
|
469,433
|
|
Disposition of the DCB branches
|
|
(3,886
|
)
|
|
—
|
|
|
(3,886
|
)
|
|||
Balance, December 31, 2018
|
|
$
|
353,321
|
|
|
$
|
112,226
|
|
|
$
|
465,547
|
|
Balance, January 1, 2019
|
|
$
|
353,321
|
|
|
$
|
112,226
|
|
|
$
|
465,547
|
|
Acquisition of Enstream Capital Markets, LLC
|
|
—
|
|
|
150
|
|
|
150
|
|
|||
Balance, December 31, 2019
|
|
$
|
353,321
|
|
|
$
|
112,376
|
|
|
$
|
465,697
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
Gross balance (1)
|
|
$
|
86,099
|
|
|
$
|
86,099
|
|
Accumulated amortization (1)
|
|
(76,088
|
)
|
|
(71,570
|
)
|
||
Net carrying balance (1)
|
|
$
|
10,011
|
|
|
$
|
14,529
|
|
|
(1)
|
Excludes fully amortized core deposit intangible assets.
|
|
||||
($ in thousands)
|
|
Amount
|
||
2020
|
|
$
|
3,634
|
|
2021
|
|
2,749
|
|
|
2022
|
|
1,865
|
|
|
2023
|
|
1,199
|
|
|
2024
|
|
553
|
|
|
Thereafter
|
|
11
|
|
|
Total
|
|
$
|
10,011
|
|
|
|
||||||
($ in thousands)
|
|
Classification on the Consolidated Balance Sheet
|
|
December 31, 2019
|
||
Assets:
|
|
|
|
|
||
Operating lease assets
|
|
Operating lease right-of use assets
|
|
$
|
99,973
|
|
Finance lease assets
|
|
Premises and equipment
|
|
7,897
|
|
|
Total lease assets
|
|
|
|
$
|
107,870
|
|
Liabilities:
|
|
|
|
|
||
Operating lease liabilities
|
|
Operating lease liabilities
|
|
$
|
108,083
|
|
Finance lease liabilities
|
|
Long-term debt and finance lease liabilities
|
|
5,169
|
|
|
Total lease liabilities
|
|
|
|
$
|
113,252
|
|
|
|
||||
($ in thousands)
|
|
Year Ended
December 31, 2019 |
||
Operating lease cost
|
|
$
|
34,850
|
|
Finance lease cost:
|
|
|
||
Amortization of right-of-use assets
|
|
807
|
|
|
Interest on lease liabilities
|
|
161
|
|
|
Variable lease cost
|
|
120
|
|
|
Sublease income
|
|
(81
|
)
|
|
Net lease cost
|
|
$
|
35,857
|
|
|
|
||||
($ in thousands)
|
|
Year Ended
December 31, 2019 |
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
35,496
|
|
Operating cash flows from finance leases
|
|
$
|
161
|
|
Financing cash flows from finance leases
|
|
$
|
883
|
|
Right-of-use assets obtained in exchange for new lease liabilities:
|
|
|
||
Operating leases
|
|
$
|
21,716
|
|
Financing leases
|
|
$
|
304
|
|
|
|
|||
|
|
December 31, 2019
|
|
Weighted-average remaining lease term (in years):
|
|
|
|
Operating leases
|
|
4.6
|
|
Finance leases
|
|
16.2
|
|
Weighted-average discount rate:
|
|
|
|
Operating leases
|
|
3.19
|
%
|
Finance leases
|
|
2.84
|
%
|
|
|
||||||||
($ in thousands)
|
|
Operating Leases
|
|
Finance Leases
|
||||
2020
|
|
$
|
32,590
|
|
|
$
|
1,059
|
|
2021
|
|
28,761
|
|
|
1,053
|
|
||
2022
|
|
19,073
|
|
|
698
|
|
||
2023
|
|
12,069
|
|
|
403
|
|
||
2024
|
|
9,150
|
|
|
157
|
|
||
Thereafter
|
|
14,636
|
|
|
3,305
|
|
||
Total minimum lease payments
|
|
$
|
116,279
|
|
|
$
|
6,675
|
|
Less: imputed interest
|
|
(8,196
|
)
|
|
(1,506
|
)
|
||
Present value of lease liabilities
|
|
$
|
108,083
|
|
|
$
|
5,169
|
|
|
|
||||
($ in thousands)
|
|
December 31, 2019
|
||
Lease receivables
|
|
$
|
126,517
|
|
Unguaranteed residual assets
|
|
14,793
|
|
|
Net investment in direct financing and sales-type leases
|
|
$
|
141,310
|
|
|
|
||||
($ in thousands)
|
|
Direct Financing
and
Sales-Type Leases
|
||
2020
|
|
$
|
27,580
|
|
2021
|
|
25,548
|
|
|
2022
|
|
18,154
|
|
|
2023
|
|
11,960
|
|
|
2024
|
|
8,512
|
|
|
Thereafter
|
|
11,708
|
|
|
Total minimum lease payments
|
|
$
|
103,462
|
|
Less: imputed interest
|
|
(9,783
|
)
|
|
Present value of lease receivables
|
|
$
|
93,679
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing demand
|
|
$
|
11,080,036
|
|
|
$
|
11,377,009
|
|
Interest-bearing checking
|
|
5,200,755
|
|
|
4,584,447
|
|
||
Money market
|
|
8,711,964
|
|
|
8,262,677
|
|
||
Savings
|
|
2,117,196
|
|
|
2,146,429
|
|
||
Time deposits:
|
|
|
|
|
||||
Less than $100,000
|
|
1,993,950
|
|
|
1,957,121
|
|
||
$100,000 or greater
|
|
8,220,358
|
|
|
7,111,945
|
|
||
Total deposits
|
|
$
|
37,324,259
|
|
|
$
|
35,439,628
|
|
|
|
||||
($ in thousands)
|
|
Amount
|
||
2020
|
|
$
|
9,653,276
|
|
2021
|
|
428,971
|
|
|
2022
|
|
59,324
|
|
|
2023
|
|
36,633
|
|
|
2024
|
|
7,024
|
|
|
Thereafter
|
|
29,080
|
|
|
Total
|
|
$
|
10,214,308
|
|
|
|
||||||||||||||||||||||
Issuer
|
|
Stated
Maturity (1) |
|
Stated
Interest Rate |
|
Current Rate
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
|
|
Aggregate
Principal
Amount of
Trust
Securities
|
|
Aggregate
Principal
Amount of
the Junior
Subordinated
Debts
|
|
Aggregate
Principal Amount of Trust Securities |
|
Aggregate
Principal Amount of the Junior Subordinated Debts |
||||||||||||
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
East West Capital Trust V
|
|
November 2034
|
|
3-month LIBOR + 1.80%
|
|
3.71%
|
|
$
|
464
|
|
|
$
|
15,000
|
|
|
$
|
464
|
|
|
$
|
15,000
|
|
East West Capital Trust VI
|
|
September 2035
|
|
3-month LIBOR + 1.50%
|
|
3.39%
|
|
619
|
|
|
20,000
|
|
|
619
|
|
|
20,000
|
|
||||
East West Capital Trust VII
|
|
June 2036
|
|
3-month LIBOR + 1.35%
|
|
3.24%
|
|
928
|
|
|
30,000
|
|
|
928
|
|
|
30,000
|
|
||||
East West Capital Trust VIII
|
|
June 2037
|
|
3-month LIBOR + 1.40%
|
|
3.29%
|
|
619
|
|
|
18,000
|
|
|
619
|
|
|
18,000
|
|
||||
East West Capital Trust IX
|
|
September 2037
|
|
3-month LIBOR + 1.90%
|
|
3.79%
|
|
928
|
|
|
30,000
|
|
|
928
|
|
|
30,000
|
|
||||
MCBI Statutory Trust I
|
|
December 2035
|
|
3-month LIBOR + 1.55%
|
|
3.44%
|
|
1,083
|
|
|
35,000
|
|
|
1,083
|
|
|
35,000
|
|
||||
Total
|
|
|
|
|
|
|
|
$
|
4,641
|
|
|
$
|
148,000
|
|
|
$
|
4,641
|
|
|
$
|
148,000
|
|
|
(1)
|
All the above debt instruments mature more than five years after December 31, 2019 and are subject to call options where early redemption requires appropriate notice.
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 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
|
|
$
|
21,327
|
|
|
$
|
13,564
|
|
|
$
|
49
|
|
|
$
|
34,940
|
|
Card income
|
|
3,032
|
|
|
676
|
|
|
—
|
|
|
3,708
|
|
||||
Wealth management fees
|
|
15,841
|
|
|
827
|
|
|
—
|
|
|
16,668
|
|
||||
Total revenue from contracts with customers
|
|
40,200
|
|
|
15,067
|
|
|
49
|
|
|
55,316
|
|
||||
Other sources of noninterest income (1)
|
|
17,720
|
|
|
119,555
|
|
|
16,786
|
|
|
154,061
|
|
||||
Total noninterest income
|
|
$
|
57,920
|
|
|
$
|
134,622
|
|
|
$
|
16,835
|
|
|
$
|
209,377
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 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
|
|
$
|
22,474
|
|
|
$
|
12,326
|
|
|
$
|
423
|
|
|
$
|
35,223
|
|
Card income
|
|
3,196
|
|
|
757
|
|
|
—
|
|
|
3,953
|
|
||||
Wealth management fees
|
|
13,357
|
|
|
428
|
|
|
—
|
|
|
13,785
|
|
||||
Total revenue from contracts with customers
|
|
39,027
|
|
|
13,511
|
|
|
423
|
|
|
52,961
|
|
||||
Other sources of noninterest income (1)
|
|
46,580
|
|
|
96,776
|
|
|
14,592
|
|
|
157,948
|
|
||||
Total noninterest income
|
|
$
|
85,607
|
|
|
$
|
110,287
|
|
|
$
|
15,015
|
|
|
$
|
210,909
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
24,109
|
|
|
$
|
11,476
|
|
|
$
|
464
|
|
|
$
|
36,049
|
|
Card income
|
|
3,465
|
|
|
785
|
|
|
—
|
|
|
4,250
|
|
||||
Wealth management fees
|
|
12,218
|
|
|
1,756
|
|
|
—
|
|
|
13,974
|
|
||||
Total revenue from contracts with customers
|
|
39,792
|
|
|
14,017
|
|
|
464
|
|
|
54,273
|
|
||||
Other sources of noninterest income (1)
|
|
14,659
|
|
|
96,072
|
|
|
92,744
|
|
|
203,475
|
|
||||
Total noninterest income
|
|
$
|
54,451
|
|
|
$
|
110,089
|
|
|
$
|
93,208
|
|
|
$
|
257,748
|
|
|
(1)
|
Primarily represents revenue from contracts with customers that are out of the scope of ASC 606, Revenue from Contracts with Customers.
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Current income tax expense (benefit):
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
107,393
|
|
|
$
|
63,035
|
|
|
$
|
120,968
|
|
State
|
|
86,578
|
|
|
64,917
|
|
|
72,837
|
|
|||
Foreign
|
|
(2,485
|
)
|
|
3,513
|
|
|
1,815
|
|
|||
Total current income tax expense
|
|
191,486
|
|
|
131,465
|
|
|
195,620
|
|
|||
Deferred income tax (benefit) expense:
|
|
|
|
|
|
|
||||||
Federal
|
|
(8,801
|
)
|
|
(11,870
|
)
|
|
40,057
|
|
|||
State
|
|
(16,390
|
)
|
|
(4,600
|
)
|
|
(6,201
|
)
|
|||
Foreign
|
|
3,587
|
|
|
—
|
|
|
—
|
|
|||
Total deferred income tax (benefit) expense
|
|
(21,604
|
)
|
|
(16,470
|
)
|
|
33,856
|
|
|||
Income tax expense
|
|
$
|
169,882
|
|
|
$
|
114,995
|
|
|
$
|
229,476
|
|
|
|
|||||||||
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
||||
Statutory U.S. federal tax rate
|
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
U.S. state income taxes, net of U.S. federal income tax effect
|
|
7.1
|
|
|
5.8
|
|
|
5.9
|
|
The Tax Act
|
|
—
|
|
|
0.1
|
|
|
4.5
|
|
Tax credits and affordable housing, net of amortization
|
|
(10.4
|
)
|
|
(13.3
|
)
|
|
(15.1
|
)
|
Other, net
|
|
2.4
|
|
|
0.4
|
|
|
0.9
|
|
Effective tax rate
|
|
20.1
|
%
|
|
14.0
|
%
|
|
31.2
|
%
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
Deferred tax assets:
|
|
|
|
|
||||
Allowance for loan losses
|
|
$
|
109,903
|
|
|
$
|
96,876
|
|
Investments in qualified affordable housing partnerships, tax credit and other investments, net
|
|
11,190
|
|
|
3,691
|
|
||
Deferred compensation
|
|
23,816
|
|
|
18,724
|
|
||
Interest income on nonaccrual loans
|
|
9,527
|
|
|
8,602
|
|
||
State taxes
|
|
5,848
|
|
|
4,506
|
|
||
Unrealized gains/losses on securities
|
|
324
|
|
|
20,233
|
|
||
Tax credit carryforwards
|
|
—
|
|
|
26,831
|
|
||
Premises and equipment
|
|
1,578
|
|
|
1,887
|
|
||
Deferred gain
|
|
—
|
|
|
4,476
|
|
||
Lease liability
|
|
35,948
|
|
|
2,604
|
|
||
Other
|
|
641
|
|
|
6,178
|
|
||
Total gross deferred tax assets
|
|
198,775
|
|
|
194,608
|
|
||
Valuation allowance
|
|
(21
|
)
|
|
(128
|
)
|
||
Total deferred tax assets, net of valuation allowance
|
|
$
|
198,754
|
|
|
$
|
194,480
|
|
Deferred tax liabilities:
|
|
|
|
|
||||
Equipment lease financing
|
|
$
|
30,669
|
|
|
$
|
30,523
|
|
Investments in qualified affordable housing partnerships, tax credit and other investments, net
|
|
12,301
|
|
|
30,706
|
|
||
Core deposit intangibles
|
|
3,032
|
|
|
4,427
|
|
||
FHLB stock dividends
|
|
1,854
|
|
|
1,866
|
|
||
Mortgage servicing assets
|
|
1,839
|
|
|
2,390
|
|
||
Acquired debt
|
|
1,679
|
|
|
1,771
|
|
||
Prepaid expenses
|
|
1,100
|
|
|
1,207
|
|
||
Premises and equipment
|
|
1,890
|
|
|
1,078
|
|
||
Operating lease right-of-use assets
|
|
34,313
|
|
|
—
|
|
||
Other
|
|
3,590
|
|
|
2,872
|
|
||
Total gross deferred tax liabilities
|
|
$
|
92,267
|
|
|
$
|
76,840
|
|
Net deferred tax assets
|
|
$
|
106,487
|
|
|
$
|
117,640
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Beginning balance
|
|
$
|
4,378
|
|
|
$
|
10,419
|
|
|
$
|
10,419
|
|
Additions for tax positions related to prior years
|
|
30,103
|
|
|
—
|
|
|
—
|
|
|||
Deductions for tax positions related to prior years
|
|
(34,481
|
)
|
|
(3,969
|
)
|
|
—
|
|
|||
Settlements with taxing authorities
|
|
—
|
|
|
(2,072
|
)
|
|
—
|
|
|||
Ending balance
|
|
$
|
—
|
|
|
$
|
4,378
|
|
|
$
|
10,419
|
|
|
|
||||||||
($ in thousands)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
Loan commitments
|
|
$
|
5,330,211
|
|
|
$
|
5,147,821
|
|
Commercial letters of credit and SBLCs
|
|
$
|
1,860,414
|
|
|
$
|
1,796,647
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Maximum Potential
Future Payments
|
|
Carrying Value
|
||||||||||||
|
December 31,
|
|
December 31,
|
|||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Single-family residential loans sold or securitized with recourse
|
|
$
|
12,578
|
|
|
$
|
16,700
|
|
|
$
|
12,578
|
|
|
$
|
16,700
|
|
Multifamily residential loans sold or securitized with recourse
|
|
15,892
|
|
|
17,058
|
|
|
40,708
|
|
|
69,974
|
|
||||
Total
|
|
$
|
28,470
|
|
|
$
|
33,758
|
|
|
$
|
53,286
|
|
|
$
|
86,674
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Stock compensation costs
|
|
$
|
30,761
|
|
|
$
|
30,937
|
|
|
$
|
24,657
|
|
Related net tax benefits for stock compensation plans
|
|
$
|
4,792
|
|
|
$
|
5,089
|
|
|
$
|
4,775
|
|
|
|
||||||||||||||
|
|
Time-Based RSUs
|
|
Performance-Based RSUs
|
||||||||||
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted-
Average Grant Date Fair Value |
|||||||
Outstanding, January 1, 2019
|
|
1,121,391
|
|
|
$
|
51.22
|
|
|
411,290
|
|
|
$
|
49.93
|
|
Granted
|
|
500,145
|
|
|
52.46
|
|
|
134,600
|
|
|
54.64
|
|
||
Vested
|
|
(387,273
|
)
|
|
31.98
|
|
|
(159,407
|
)
|
|
29.18
|
|
||
Forfeited
|
|
(94,395
|
)
|
|
57.48
|
|
|
—
|
|
|
—
|
|
||
Outstanding, December 31, 2019
|
|
1,139,868
|
|
|
$
|
57.78
|
|
|
386,483
|
|
|
$
|
60.13
|
|
|
|
|||
|
|
Shares
|
|
Outstanding, January 1, 2019
|
|
—
|
|
Granted
|
|
12,145
|
|
Vested
|
|
—
|
|
Forfeited
|
|
(507
|
)
|
Outstanding, December 31, 2019
|
|
11,638
|
|
|
|
|
|
||
Years Ending December 31,
|
|
Amount
($ in thousands)
|
||
2020
|
|
$
|
339
|
|
2021
|
|
349
|
|
|
2022
|
|
359
|
|
|
2023
|
|
370
|
|
|
2024
|
|
381
|
|
|
Thereafter
|
|
7,103
|
|
|
Total
|
|
$
|
8,901
|
|
|
|
|
|
||||||||||||
($ and shares in thousands, except per share data)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Basic:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
|
|
|
|
|
|
||||||
Basic weighted-average number of shares outstanding
|
|
145,497
|
|
|
144,862
|
|
|
144,444
|
|
|||
Basic EPS
|
|
$
|
4.63
|
|
|
$
|
4.86
|
|
|
$
|
3.50
|
|
|
|
|
|
|
|
|
||||||
Diluted:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
|
|
|
|
|
|
||||||
Basic weighted-average number of shares outstanding
|
|
145,497
|
|
|
144,862
|
|
|
144,444
|
|
|||
Diluted potential common shares (1)(2)
|
|
682
|
|
|
1,307
|
|
|
1,469
|
|
|||
Diluted weighted-average number of shares outstanding (1)(2)
|
|
146,179
|
|
|
146,169
|
|
|
145,913
|
|
|||
Diluted EPS
|
|
$
|
4.61
|
|
|
$
|
4.81
|
|
|
$
|
3.47
|
|
|
(1)
|
Includes dilutive shares from RSUs for the year ended December 31, 2019, and from RSUs and warrants for the years ended December 31, 2018 and 2017.
|
(2)
|
The Company acquired MetroCorp Bancshares, Inc. (“MetroCorp”) on January 17, 2014. Prior to the acquisition, MetroCorp had outstanding warrants to purchase 771,429 shares of its common stock. Upon the acquisition, the rights of the warrant holders were converted into the rights to acquire 230,282 shares of East West’s common stock until January 16, 2019. All warrants were exercised on January 7, 2019.
|
|
||||||||||||
($ in thousands)
|
|
AFS
Investment Securities |
|
Foreign
Currency Translation Adjustments (1) |
|
Total
|
||||||
Balance, December 31, 2016
|
|
$
|
(28,772
|
)
|
|
$
|
(19,374
|
)
|
|
$
|
(48,146
|
)
|
Net unrealized gains arising during the period
|
|
2,531
|
|
|
12,753
|
|
|
15,284
|
|
|||
Amounts reclassified from AOCI
|
|
(4,657
|
)
|
|
—
|
|
|
(4,657
|
)
|
|||
Changes, net of tax
|
|
(2,126
|
)
|
|
12,753
|
|
|
10,627
|
|
|||
Balance, December 31, 2017
|
|
$
|
(30,898
|
)
|
|
$
|
(6,621
|
)
|
|
$
|
(37,519
|
)
|
Cumulative effect of change in accounting principle related to marketable equity securities (2)
|
|
385
|
|
|
—
|
|
|
385
|
|
|||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate (3)
|
|
(6,656
|
)
|
|
—
|
|
|
(6,656
|
)
|
|||
Balance, January 1, 2018, adjusted
|
|
(37,169
|
)
|
|
(6,621
|
)
|
|
(43,790
|
)
|
|||
Net unrealized losses arising during the period
|
|
(6,866
|
)
|
|
(5,732
|
)
|
|
(12,598
|
)
|
|||
Amounts reclassified from AOCI
|
|
(1,786
|
)
|
|
—
|
|
|
(1,786
|
)
|
|||
Changes, net of tax
|
|
(8,652
|
)
|
|
(5,732
|
)
|
|
(14,384
|
)
|
|||
Balance, December 31, 2018
|
|
$
|
(45,821
|
)
|
|
$
|
(12,353
|
)
|
|
$
|
(58,174
|
)
|
Net unrealized gains (losses) arising during the period
|
|
46,170
|
|
|
(3,636
|
)
|
|
42,534
|
|
|||
Amounts reclassified from AOCI
|
|
(2,768
|
)
|
|
—
|
|
|
(2,768
|
)
|
|||
Changes, net of tax
|
|
43,402
|
|
|
(3,636
|
)
|
|
39,766
|
|
|||
Balance, December 31, 2019
|
|
$
|
(2,419
|
)
|
|
$
|
(15,989
|
)
|
|
$
|
(18,408
|
)
|
|
(1)
|
Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.
|
(2)
|
Represents the impact of the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of 2018.
|
(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)
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||||||
|
Before -
Tax
|
|
Tax
Effect |
|
Net-of-
Tax
|
|
Before -
Tax |
|
Tax
Effect |
|
Net-of-
Tax |
|
Before -
Tax |
|
Tax
Effect |
|
Net-of-
Tax |
|||||||||||||||||||
AFS investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net unrealized gains (losses) arising during the period
|
|
$
|
65,549
|
|
|
$
|
(19,379
|
)
|
|
$
|
46,170
|
|
|
$
|
(9,748
|
)
|
|
$
|
2,882
|
|
|
$
|
(6,866
|
)
|
|
$
|
4,368
|
|
|
$
|
(1,837
|
)
|
|
$
|
2,531
|
|
Net realized gains reclassified into net income (1)
|
|
(3,930
|
)
|
|
1,162
|
|
|
(2,768
|
)
|
|
(2,535
|
)
|
|
749
|
|
|
(1,786
|
)
|
|
(8,037
|
)
|
|
3,380
|
|
|
(4,657
|
)
|
|||||||||
Net change
|
|
61,619
|
|
|
(18,217
|
)
|
|
43,402
|
|
|
(12,283
|
)
|
|
3,631
|
|
|
(8,652
|
)
|
|
(3,669
|
)
|
|
1,543
|
|
|
(2,126
|
)
|
|||||||||
Foreign currency translation adjustments, net of hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net unrealized gains (losses) arising during the period (2)
|
|
290
|
|
|
(3,926
|
)
|
|
(3,636
|
)
|
|
(5,732
|
)
|
|
—
|
|
|
(5,732
|
)
|
|
12,753
|
|
|
—
|
|
|
12,753
|
|
|||||||||
Net change
|
|
290
|
|
|
(3,926
|
)
|
|
(3,636
|
)
|
|
(5,732
|
)
|
|
—
|
|
|
(5,732
|
)
|
|
12,753
|
|
|
—
|
|
|
12,753
|
|
|||||||||
Other comprehensive income (loss)
|
|
$
|
61,909
|
|
|
$
|
(22,143
|
)
|
|
$
|
39,766
|
|
|
$
|
(18,015
|
)
|
|
$
|
3,631
|
|
|
$
|
(14,384
|
)
|
|
$
|
9,084
|
|
|
$
|
1,543
|
|
|
$
|
10,627
|
|
|
(1)
|
For the years ended December 31, 2019, 2018 and 2017, pre-tax amounts were reported in Net gains on sales of AFS investment securities on the Consolidated Statement of Income.
|
(2)
|
The tax effects on foreign currency translation adjustments represent the cumulative net deferred tax liabilities since inception on net investment hedges that were recorded during the year ended December 31, 2019.
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
Basel III
|
||||||||||||||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
|||||||||||||||||||||||
|
Actual
|
|
Minimum
Capital
Ratios (3)
|
|
Well
Capitalized
Requirement
|
|
Actual
|
|
Minimum
Capital
Ratios (3)
|
|
Well
Capitalized
Requirement
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
5,064,037
|
|
|
14.4
|
%
|
|
10.50
|
%
|
|
10.0
|
%
|
|
$
|
4,438,730
|
|
|
13.7
|
%
|
|
9.88
|
%
|
|
10.0
|
%
|
East West Bank
|
|
$
|
4,886,237
|
|
|
13.9
|
%
|
|
10.50
|
%
|
|
10.0
|
%
|
|
$
|
4,268,616
|
|
|
13.1
|
%
|
|
9.88
|
%
|
|
10.0
|
%
|
Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
4,546,592
|
|
|
12.9
|
%
|
|
8.50
|
%
|
|
8.0
|
%
|
|
$
|
3,966,842
|
|
|
12.2
|
%
|
|
7.88
|
%
|
|
8.0
|
%
|
East West Bank
|
|
$
|
4,516,792
|
|
|
12.9
|
%
|
|
8.50
|
%
|
|
8.0
|
%
|
|
$
|
3,944,728
|
|
|
12.1
|
%
|
|
7.88
|
%
|
|
8.0
|
%
|
CET1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
4,546,592
|
|
|
12.9
|
%
|
|
7.00
|
%
|
|
6.5
|
%
|
|
$
|
3,966,842
|
|
|
12.2
|
%
|
|
6.38
|
%
|
|
6.5
|
%
|
East West Bank
|
|
$
|
4,516,792
|
|
|
12.9
|
%
|
|
7.00
|
%
|
|
6.5
|
%
|
|
$
|
3,944,728
|
|
|
12.1
|
%
|
|
6.38
|
%
|
|
6.5
|
%
|
Tier 1 leverage capital (to adjusted average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company (1)
|
|
$
|
4,546,592
|
|
|
10.3
|
%
|
|
4.0
|
%
|
|
N/A
|
|
|
$
|
3,966,842
|
|
|
9.9
|
%
|
|
4.0
|
%
|
|
N/A
|
|
East West Bank
|
|
$
|
4,516,792
|
|
|
10.3
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
$
|
3,944,728
|
|
|
9.8
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
Risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
35,136,427
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
32,497,296
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
East West Bank
|
|
$
|
35,127,920
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
32,477,002
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Adjusted quarterly average total assets (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
|
$
|
44,449,802
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
40,636,402
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
East West Bank
|
|
$
|
44,419,308
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
40,611,215
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
(1)
|
The Tier 1 leverage capital well-capitalized requirement applies to the Bank only since there is no Tier 1 leverage ratio component in the definition of a well-capitalized bank holding company.
|
(2)
|
Reflects adjusted average total assets for the years ended December 31, 2019 and 2018.
|
(3)
|
The CET1, Tier 1, and total capital minimum ratios include a fully phased-in capital conservation buffer of 2.5% and a transition capital conservation buffer of 1.875% for the years ended December 31, 2019 and 2018, respectively.
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
696,551
|
|
|
$
|
651,413
|
|
|
$
|
119,849
|
|
|
$
|
1,467,813
|
|
Provision for credit losses
|
|
14,178
|
|
|
84,507
|
|
|
—
|
|
|
98,685
|
|
||||
Noninterest income
|
|
57,920
|
|
|
134,622
|
|
|
16,835
|
|
|
209,377
|
|
||||
Noninterest expense
|
|
343,001
|
|
|
263,064
|
|
|
128,523
|
|
|
734,588
|
|
||||
Segment income before income taxes
|
|
397,292
|
|
|
438,464
|
|
|
8,161
|
|
|
843,917
|
|
||||
Segment net income
|
|
$
|
284,161
|
|
|
$
|
313,833
|
|
|
$
|
76,041
|
|
|
$
|
674,035
|
|
As of December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
11,520,586
|
|
|
$
|
25,501,534
|
|
|
$
|
7,173,976
|
|
|
$
|
44,196,096
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
727,215
|
|
|
$
|
605,650
|
|
|
$
|
53,643
|
|
|
$
|
1,386,508
|
|
Provision for credit losses
|
|
9,364
|
|
|
54,891
|
|
|
—
|
|
|
64,255
|
|
||||
Noninterest income
|
|
85,607
|
|
|
110,287
|
|
|
15,015
|
|
|
210,909
|
|
||||
Noninterest expense
|
|
341,396
|
|
|
237,520
|
|
|
135,550
|
|
|
714,466
|
|
||||
Segment income (loss) before income taxes
|
|
462,062
|
|
|
423,526
|
|
|
(66,892
|
)
|
|
818,696
|
|
||||
Segment net income
|
|
$
|
330,683
|
|
|
$
|
303,553
|
|
|
$
|
69,465
|
|
|
$
|
703,701
|
|
As of December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
10,587,621
|
|
|
$
|
23,761,469
|
|
|
$
|
6,693,266
|
|
|
$
|
41,042,356
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and
Business
Banking
|
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
590,821
|
|
|
$
|
553,817
|
|
|
$
|
40,431
|
|
|
$
|
1,185,069
|
|
Provision for credit losses
|
|
1,812
|
|
|
44,454
|
|
|
—
|
|
|
46,266
|
|
||||
Noninterest income
|
|
54,451
|
|
|
110,089
|
|
|
93,208
|
|
|
257,748
|
|
||||
Noninterest expense
|
|
323,318
|
|
|
200,153
|
|
|
137,980
|
|
|
661,451
|
|
||||
Segment income (loss) before income taxes
|
|
320,142
|
|
|
419,299
|
|
|
(4,341
|
)
|
|
735,100
|
|
||||
Segment net income
|
|
$
|
187,571
|
|
|
$
|
246,404
|
|
|
$
|
71,649
|
|
|
$
|
505,624
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
9,316,587
|
|
|
$
|
21,431,472
|
|
|
$
|
6,373,504
|
|
|
$
|
37,121,563
|
|
|
|
||||||||
($ in thousands, except shares)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents due from subsidiary bank
|
|
$
|
166,131
|
|
|
$
|
149,411
|
|
Investments in subsidiaries:
|
|
|
|
|
||||
Bank
|
|
4,987,666
|
|
|
4,401,860
|
|
||
Nonbank
|
|
5,630
|
|
|
3,662
|
|
||
Investments in tax credit investments, net
|
|
11,637
|
|
|
23,259
|
|
||
Goodwill
|
|
150
|
|
|
—
|
|
||
Other assets
|
|
3,941
|
|
|
6,487
|
|
||
TOTAL
|
|
$
|
5,175,155
|
|
|
$
|
4,584,679
|
|
LIABILITIES
|
|
|
|
|
|
|
||
Long-term debt
|
|
$
|
147,101
|
|
|
$
|
146,835
|
|
Other liabilities
|
|
10,437
|
|
|
13,870
|
|
||
Total liabilities
|
|
157,538
|
|
|
160,705
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 166,621,959 and 165,867,587 shares issued in 2019 and 2018, respectively
|
|
167
|
|
|
166
|
|
||
Additional paid-in capital
|
|
1,826,345
|
|
|
1,789,811
|
|
||
Retained earnings
|
|
3,689,377
|
|
|
3,160,132
|
|
||
Treasury stock, at cost — 20,996,574 shares in 2019 and 20,906,224 shares in 2018
|
|
(479,864
|
)
|
|
(467,961
|
)
|
||
AOCI, net of tax
|
|
(18,408
|
)
|
|
(58,174
|
)
|
||
Total stockholders’ equity
|
|
5,017,617
|
|
|
4,423,974
|
|
||
TOTAL
|
|
$
|
5,175,155
|
|
|
$
|
4,584,679
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Dividends from subsidiaries:
|
|
|
|
|
|
|
||||||
Bank
|
|
$
|
190,000
|
|
|
$
|
160,000
|
|
|
$
|
255,000
|
|
Nonbank
|
|
189
|
|
|
175
|
|
|
4,118
|
|
|||
Net gains on sales of AFS investment securities
|
|
—
|
|
|
—
|
|
|
326
|
|
|||
Other income
|
|
425
|
|
|
2
|
|
|
395
|
|
|||
Total income
|
|
190,614
|
|
|
160,177
|
|
|
259,839
|
|
|||
Interest expense on long-term debt
|
|
6,482
|
|
|
6,488
|
|
|
5,429
|
|
|||
Compensation and employee benefits
|
|
5,479
|
|
|
5,559
|
|
|
5,065
|
|
|||
Amortization of tax credit and other investments
|
|
8,437
|
|
|
413
|
|
|
5,908
|
|
|||
Other expense
|
|
1,487
|
|
|
1,490
|
|
|
1,257
|
|
|||
Total expense
|
|
21,885
|
|
|
13,950
|
|
|
17,659
|
|
|||
Income before income tax benefit and equity in undistributed income of subsidiaries
|
|
168,729
|
|
|
146,227
|
|
|
242,180
|
|
|||
Income tax benefit
|
|
6,737
|
|
|
3,404
|
|
|
18,182
|
|
|||
Undistributed earnings of subsidiaries, primarily bank
|
|
498,569
|
|
|
554,070
|
|
|
245,262
|
|
|||
Net income
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
|
|
||||||||||||
($ in thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
674,035
|
|
|
$
|
703,701
|
|
|
$
|
505,624
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Undistributed earnings of subsidiaries, principally bank
|
|
(498,569
|
)
|
|
(554,070
|
)
|
|
(245,262
|
)
|
|||
Amortization expenses
|
|
8,703
|
|
|
671
|
|
|
6,158
|
|
|||
Deferred income tax (benefit) expense
|
|
(10,132
|
)
|
|
3,517
|
|
|
940
|
|
|||
Gains on sales of AFS investment securities
|
|
—
|
|
|
—
|
|
|
(326
|
)
|
|||
Net change in other assets
|
|
10,246
|
|
|
(595
|
)
|
|
(3,341
|
)
|
|||
Net change in other liabilities
|
|
(18
|
)
|
|
(45
|
)
|
|
(560
|
)
|
|||
Net cash provided by operating activities
|
|
184,265
|
|
|
153,179
|
|
|
263,233
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net increase in investments in tax credit investments
|
|
(292
|
)
|
|
(1,049
|
)
|
|
(11,591
|
)
|
|||
Proceeds from distributions received from equity method investees
|
|
2,577
|
|
|
1,491
|
|
|
1,814
|
|
|||
Investments in and advances to nonbank subsidiaries
|
|
(3,314
|
)
|
|
—
|
|
|
—
|
|
|||
Other investing activities
|
|
(157
|
)
|
|
—
|
|
|
—
|
|
|||
AFS investment securities:
|
|
|
|
|
|
|
||||||
Proceeds from sales
|
|
—
|
|
|
—
|
|
|
18,326
|
|
|||
Purchases
|
|
—
|
|
|
—
|
|
|
(9,000
|
)
|
|||
Net cash (used in) provided by investing activities
|
|
(1,186
|
)
|
|
442
|
|
|
(451
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Repayment of long-term debt
|
|
—
|
|
|
(25,000
|
)
|
|
(15,000
|
)
|
|||
Common stock:
|
|
|
|
|
|
|
||||||
Proceeds from issuance pursuant to various stock compensation plans and agreements
|
|
3,383
|
|
|
2,846
|
|
|
2,280
|
|
|||
Stocks tendered for payment of withholding taxes
|
|
(14,635
|
)
|
|
(15,634
|
)
|
|
(12,940
|
)
|
|||
Cash dividends paid
|
|
(155,107
|
)
|
|
(125,988
|
)
|
|
(116,820
|
)
|
|||
Net cash used in financing activities
|
|
(166,359
|
)
|
|
(163,776
|
)
|
|
(142,480
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
16,720
|
|
|
(10,155
|
)
|
|
120,302
|
|
|||
Cash and cash equivalents, beginning of year
|
|
149,411
|
|
|
159,566
|
|
|
39,264
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
166,131
|
|
|
$
|
149,411
|
|
|
$
|
159,566
|
|
|
|
||||||||||||||||
($ and shares in thousands, except per share data)
|
|
2019 Quarters
|
||||||||||||||
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|||||||||
Interest and dividend income
|
|
$
|
467,233
|
|
|
$
|
476,912
|
|
|
$
|
474,844
|
|
|
$
|
463,311
|
|
Interest expense
|
|
99,014
|
|
|
107,105
|
|
|
107,518
|
|
|
100,850
|
|
||||
Net interest income before provision for credit losses
|
|
368,219
|
|
|
369,807
|
|
|
367,326
|
|
|
362,461
|
|
||||
Provision for credit losses
|
|
18,577
|
|
|
38,284
|
|
|
19,245
|
|
|
22,579
|
|
||||
Net interest income after provision for credit losses
|
|
349,642
|
|
|
331,523
|
|
|
348,081
|
|
|
339,882
|
|
||||
Noninterest income
|
|
63,013
|
|
|
51,474
|
|
|
52,759
|
|
|
42,131
|
|
||||
Noninterest expense
|
|
193,373
|
|
|
176,630
|
|
|
177,663
|
|
|
186,922
|
|
||||
Income before income taxes
|
|
219,282
|
|
|
206,367
|
|
|
223,177
|
|
|
195,091
|
|
||||
Income tax expense
|
|
31,067
|
|
|
34,951
|
|
|
72,797
|
|
|
31,067
|
|
||||
Net income
|
|
$
|
188,215
|
|
|
$
|
171,416
|
|
|
$
|
150,380
|
|
|
$
|
164,024
|
|
|
|
|
|
|
|
|
|
|
||||||||
EPS
|
|
|
|
|
|
|
|
|
||||||||
- Basic
|
|
$
|
1.29
|
|
|
$
|
1.18
|
|
|
$
|
1.03
|
|
|
$
|
1.13
|
|
- Diluted
|
|
$
|
1.29
|
|
|
$
|
1.17
|
|
|
$
|
1.03
|
|
|
$
|
1.12
|
|
Weighted-average number of shares outstanding
|
|
|
|
|
|
|
|
|
||||||||
- Basic
|
|
145,624
|
|
|
145,559
|
|
|
145,546
|
|
|
145,256
|
|
||||
- Diluted
|
|
146,318
|
|
|
146,120
|
|
|
146,052
|
|
|
145,921
|
|
||||
|
|
||||||||||||||||
($ and shares in thousands, except per share data)
|
|
2018 Quarters
|
||||||||||||||
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|||||||||
Interest and dividend income
|
|
$
|
457,334
|
|
|
$
|
422,185
|
|
|
$
|
400,311
|
|
|
$
|
371,873
|
|
Interest expense
|
|
87,918
|
|
|
73,465
|
|
|
58,632
|
|
|
45,180
|
|
||||
Net interest income before provision for credit losses
|
|
369,416
|
|
|
348,720
|
|
|
341,679
|
|
|
326,693
|
|
||||
Provision for credit losses
|
|
17,959
|
|
|
10,542
|
|
|
15,536
|
|
|
20,218
|
|
||||
Net interest income after provision for credit losses
|
|
351,457
|
|
|
338,178
|
|
|
326,143
|
|
|
306,475
|
|
||||
Noninterest income
|
|
41,695
|
|
|
46,502
|
|
|
48,268
|
|
|
74,444
|
|
||||
Noninterest expense
|
|
188,097
|
|
|
179,815
|
|
|
177,419
|
|
|
169,135
|
|
||||
Income before income taxes
|
|
205,055
|
|
|
204,865
|
|
|
196,992
|
|
|
211,784
|
|
||||
Income tax expense
|
|
32,037
|
|
|
33,563
|
|
|
24,643
|
|
|
24,752
|
|
||||
Net income
|
|
$
|
173,018
|
|
|
$
|
171,302
|
|
|
$
|
172,349
|
|
|
$
|
187,032
|
|
|
|
|
|
|
|
|
|
|
||||||||
EPS
|
|
|
|
|
|
|
|
|
||||||||
- Basic
|
|
$
|
1.19
|
|
|
$
|
1.18
|
|
|
$
|
1.19
|
|
|
$
|
1.29
|
|
- Diluted
|
|
$
|
1.18
|
|
|
$
|
1.17
|
|
|
$
|
1.18
|
|
|
$
|
1.28
|
|
Weighted-average number of shares outstanding
|
|
|
|
|
|
|
|
|
||||||||
- Basic
|
|
144,960
|
|
|
144,921
|
|
|
144,899
|
|
|
144,664
|
|
||||
- Diluted
|
|
146,133
|
|
|
146,173
|
|
|
146,091
|
|
|
145,939
|
|
||||
|
|
|
|
|
|
Name
|
|
Age (1)
|
|
Positions and Offices, and Business Experience
|
Dominic Ng
|
|
61
|
|
Chairman and Chief Executive Officer of the Company and the Bank since 1992.
|
Douglas P. Krause
|
|
63
|
|
Executive Vice President, General Counsel and Secretary of the Company and the Bank since 1996.
|
Irene H. Oh
|
|
42
|
|
Executive Vice President and Chief Financial Officer of the Company and the Bank since 2010.
|
Andy Yen
|
|
62
|
|
Executive Vice President and Head of International and Commercial Banking since 2013.
|
Catherine Zhou
|
|
46
|
|
Executive Vice President and Head of Consumer and Digital Banking since 2017.
|
|
(1)
|
As of February 27, 2020.
|
•
|
Summary Information About Director Nominees
|
•
|
Board of Directors and Nominees
|
•
|
Director Nominee Qualifications and Experience
|
•
|
Director Independence, Financial Experts and Risk Management Experience
|
•
|
Board Leadership Structure
|
•
|
Board Meetings and Committees
|
•
|
Director Compensation
|
•
|
Compensation Discussion and Analysis
|
|
|
||||||||||
Plan Category
|
|
Number of Securities to be Issued upon Exercise of Outstanding Options
|
|
Weighted-Average Exercise Price of Outstanding Options
|
|
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans
|
|
||||
Equity compensation plans approved by security holders
|
|
—
|
|
|
$
|
—
|
|
|
3,482,580
|
|
(1)
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
3,482,580
|
|
|
|
|
(1)
|
Represents future shares available under the shareholder-approved 2016 Stock Incentive Plan effective May 24, 2016.
|
•
|
Director Independence, Financial Experts and Risk Management Experience
|
•
|
Certain Relationships and Related Transactions
|
(1)
|
Financial Statements
|
|
Page
|
Consolidated Balance Sheet as of December 31, 2019 and 2018
|
|
Consolidated Statement of Income for the Years Ended December 31, 2019, 2018 and 2017
|
|
Consolidated Statement of Comprehensive Income for the Years Ended December 31, 2019, 2018 and 2017
|
|
Consolidated Statement of Changes in Stockholders’ Equity for the Years Ended December 31, 2019, 2018 and 2017
|
|
Consolidated Statement of Cash Flows for the Years Ended December 31, 2019, 2018 and 2017
|
|
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits
|
Exhibit No.
|
|
Exhibit Description
|
3.1
|
|
|
3.1.1
|
|
|
3.1.2
|
|
|
3.1.3
|
|
|
3.2
|
|
|
3.3
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
10.1.1
|
|
|
10.1.2
|
|
10.1.3
|
|
|
10.1.4
|
|
|
10.2.1
|
|
|
10.2.2
|
|
|
10.2.3
|
|
|
10.2.4
|
|
|
10.3
|
|
|
10.4.1
|
|
|
10.4.2
|
|
|
10.5.1
|
|
|
10.5.2
|
|
|
10.6.1
|
|
|
10.6.2
|
|
|
10.6.3
|
|
|
10.7.1
|
|
|
10.7.2
|
|
|
10.7.3
|
|
|
10.7.4
|
|
|
10.7.5
|
|
|
10.7.6
|
|
|
10.7.7
|
|
ACL
|
Allowance for credit losses
|
FRB
|
Federal Reserve Bank of San Francisco
|
ADC
|
Acquisition, development and construction
|
FTP
|
Funds transfer pricing
|
AFS
|
Available-for-sale
|
GAAP
|
United States Generally Accepted Accounting Principles
|
ALCO
|
Asset/Liability Committee
|
GLBA
|
Gramm-Leach-Bliley Act of 1999
|
AML
|
Anti-money laundering
|
HELOC
|
Home equity line of credit
|
AOCI
|
Accumulated Other Comprehensive Income (Loss)
|
IRS
|
Internal Revenue Service
|
ARRC
|
Alternative Reference Rates Committee
|
KBW
|
Keefe, Bruyette and Woods
|
ASC
|
Accounting Standards Codification
|
KRX
|
Keefe, Bruyette and Woods NASDAQ Regional Banking Index
|
ASU
|
Accounting Standards Update
|
LCH
|
London Clearing House
|
BHC Act
|
Bank Holding Company Act of 1956, as amended
|
LIBOR
|
London Interbank Offered Rate
|
BSA
|
Bank Secrecy Act
|
MD&A
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
C&I
|
Commercial and industrial
|
MMBTU
|
Million British Thermal Unit
|
CAP
|
Compliance Assurance Process
|
Moody's
|
Moody's Investors Service
|
CECL
|
Current expected credit loss
|
MOU
|
Memorandum of understanding
|
CET1
|
Common Equity Tier 1
|
NAV
|
Net asset value
|
CFPB
|
Consumer Financial Protection Bureau
|
NOL
|
Net operating losses
|
CLO
|
Collateralized loan obligation
|
OFAC
|
Office of Foreign Assets Control
|
CME
|
Chicago Mercantile Exchange
|
OIS
|
Overnight Index Swap
|
CRA
|
Community Reinvestment Act
|
OREO
|
Other real estate owned
|
CRE
|
Commercial real estate
|
OTTI
|
Other-than-temporary impairment
|
DBO
|
California Department of Business Oversight
|
PCA
|
Prompt Corrective Action
|
DCB
|
Desert Community Bank
|
PCI
|
Purchased credit-impaired
|
DIF
|
Deposit Insurance Fund
|
PwC
|
PricewaterhouseCoopers LLP
|
DRR
|
Designated reserve ratio
|
RMB
|
Chinese Renminbi
|
EGRRCPA
|
Economic Growth, Regulatory Relief, and Consumer Protection Act
|
ROA
|
Return on average assets
|
EPS
|
Earnings per share
|
ROE
|
Return on average equity
|
ERM
|
Enterprise risk management
|
RPA
|
Credit Risk Participation Agreement
|
EVE
|
Economic value of equity
|
RSU
|
Restricted stock unit
|
EWIS
|
East West Insurance Services, Inc.
|
S&P
|
Standard and Poor's
|
FASB
|
Financial Accounting Standards Board
|
SBLC
|
Standby letters of credit
|
FBI
|
Federal Bureau of Investigation
|
SEC
|
U.S. Securities and Exchange Commission
|
FCA
|
Financial Conduct Authority
|
SERP
|
Supplemental Executive Retirement Plan
|
FDIA
|
Federal Deposit Insurance Act
|
SOFR
|
Secured Overnight Financing Rate
|
FDIC
|
Federal Deposit Insurance Corporation
|
TDR
|
Troubled debt restructuring
|
FHLB
|
Federal Home Loan Bank
|
U.S.
|
United States
|
FinCEN
|
Financial Crimes Enforcement Network
|
USD
|
U.S. Dollar
|
FITCH
|
Fitch Ratings
|
VIE
|
Variable interest entities
|
Dated:
|
February 27, 2020
|
|
||
|
|
|
||
|
|
EAST WEST BANCORP, INC.
(Registrant)
|
||
|
|
|
||
|
|
By
|
/s/ DOMINIC NG
|
|
|
|
|
Dominic Ng
|
|
|
|
|
Chairman and Chief Executive Officer
|
|
||||
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ DOMINIC NG
|
|
Chairman, Chief Executive Officer and Director
(Principal Executive Officer)
|
|
February 27, 2020
|
Dominic Ng
|
|
|
|
|
|
|
|
|
|
/s/ IRENE H. OH
|
|
Executive Vice President and
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
|
February 27, 2020
|
Irene H. Oh
|
|
|
|
|
|
|
|
|
|
/s/ MOLLY CAMPBELL
|
|
Director
|
|
February 27, 2020
|
Molly Campbell
|
|
|
|
|
|
|
|
|
|
/s/ IRIS S. CHAN
|
|
Director
|
|
February 27, 2020
|
Iris S. Chan
|
|
|
|
|
|
|
|
|
|
/s/ ARCHANA DESKUS
|
|
Director
|
|
February 27, 2020
|
Archana Deskus
|
|
|
|
|
|
|
|
|
|
/s/ RUDOLPH I. ESTRADA
|
|
Lead Director
|
|
February 27, 2020
|
Rudolph I. Estrada
|
|
|
|
|
|
|
|
|
|
/s/ PAUL H. IRVING
|
|
Director
|
|
February 27, 2020
|
Paul H. Irving
|
|
|
|
|
|
|
|
|
|
/s/ HERMAN Y. LI
|
|
Director
|
|
February 27, 2020
|
Herman Y. Li
|
|
|
|
|
|
|
|
|
|
/s/ JACK C. LIU
|
|
Director
|
|
February 27, 2020
|
Jack C. Liu
|
|
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/s/ LESTER M. SUSSMAN
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Director
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February 27, 2020
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Lester M. Sussman
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prior to that time, either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder is approved by the board of directors of the corporation;
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upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the outstanding voting stock of the corporation, excluding for this purpose shares owned by persons who are directors and also officers of the corporation and by specified employee benefit plans; or
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at or after such time, the business combination is approved by the board of directors of the corporation and by the affirmative vote, and not by written consent, of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.
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any merger or consolidation involving the corporation and the interested stockholder;
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any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;
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any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder, subject to limited exceptions;
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any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or
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the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.
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Subsidiary
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Jurisdiction of Incorporation or Organization
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East West Bank
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California
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E-W Services, Inc.
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California
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East West Bank (China) Limited
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China
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East-West Investment, Inc.
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California
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East West VELO Technology Service (Beijing) Limited Company
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China
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East West Capital Trust V
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Delaware
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East West Capital Trust VI
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Delaware
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East West Capital Trust VII
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Delaware
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East West Capital Trust VIII
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Delaware
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East West Capital Trust IX
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Delaware
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MCBI Statutory Trust I
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Delaware
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East West Insurance Services, Inc.
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California
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East West Markets, LLC
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Texas
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East West Investment Management LLC
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Delaware
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/s/ KPMG LLP
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Los Angeles, California
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February 27, 2020
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1.
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I have reviewed this Annual Report on Form 10-K of East West Bancorp, Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5.
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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):
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a.
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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
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b.
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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
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Dominic Ng
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Chief Executive Officer
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1.
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I have reviewed this Annual Report on Form 10-K of East West Bancorp, Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5.
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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):
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a.
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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
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b.
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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/ IRENE H. OH
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Irene H. Oh
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Chief Financial Officer
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a.
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the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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b.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ DOMINIC NG
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Dominic Ng
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Chief Executive Officer
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a.
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the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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b.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ IRENE H. OH
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Irene H. Oh
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Chief Financial Officer
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