|
Title of each class
|
|
Trading
Symbol(s)
|
|
Name of each exchange
on which registered
|
|
Common Stock, $0.001 Par Value
|
|
EWBC
|
|
The Nasdaq Global Select Market
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
Page
|
|
|
|
|
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
|
|
|
|||
|
|||
|
|||
|
|
|
|
|
|
|
|
|
|||
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|||
|
|||
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|||
|
|
|
|
|
|
|
|
|
||||||||
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
|
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
427,415
|
|
|
$
|
536,221
|
|
Interest-bearing cash with banks
|
|
2,652,627
|
|
|
2,724,928
|
|
||
Cash and cash equivalents
|
|
3,080,042
|
|
|
3,261,149
|
|
||
Interest-bearing deposits with banks
|
|
293,509
|
|
|
196,161
|
|
||
Securities purchased under resale agreements (“resale agreements”)
|
|
860,000
|
|
|
860,000
|
|
||
Securities:
|
|
|
|
|
||||
Available-for-sale (''AFS'') debt securities, at fair value (amortized cost of $3,660,413 in 2020; includes assets pledged as collateral of $742,410 in 2020 and $479,432 in 2019)
|
|
3,695,943
|
|
|
3,317,214
|
|
||
Restricted equity securities, at cost
|
|
78,745
|
|
|
78,580
|
|
||
Loans held-for-sale
|
|
1,594
|
|
|
434
|
|
||
Loans held-for-investment (net of allowance for loan losses of $557,003 in 2020 and $358,287 in 2019; includes assets pledged as collateral of $23,107,287 in 2020 and $22,431,092 in 2019)
|
|
35,336,390
|
|
|
34,420,252
|
|
||
Investments in qualified affordable housing partnerships, net
|
|
198,653
|
|
|
207,037
|
|
||
Investments in tax credit and other investments, net
|
|
268,330
|
|
|
254,140
|
|
||
Premises and equipment (net of accumulated depreciation of $120,156 in 2020 and $116,790 in 2019)
|
|
115,393
|
|
|
118,364
|
|
||
Goodwill
|
|
465,697
|
|
|
465,697
|
|
||
Operating lease right-of-use assets
|
|
101,381
|
|
|
99,973
|
|
||
Other assets
|
|
1,452,868
|
|
|
917,095
|
|
||
TOTAL
|
|
$
|
45,948,545
|
|
|
$
|
44,196,096
|
|
LIABILITIES
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
11,833,397
|
|
|
$
|
11,080,036
|
|
Interest-bearing
|
|
26,853,561
|
|
|
26,244,223
|
|
||
Total deposits
|
|
38,686,958
|
|
|
37,324,259
|
|
||
Short-term borrowings
|
|
66,924
|
|
|
28,669
|
|
||
Federal Home Loan Bank (“FHLB”) advances
|
|
646,336
|
|
|
745,915
|
|
||
Securities sold under repurchase agreements (“repurchase agreements”)
|
|
450,000
|
|
|
200,000
|
|
||
Long-term debt and finance lease liabilities
|
|
152,162
|
|
|
152,270
|
|
||
Operating lease liabilities
|
|
109,356
|
|
|
108,083
|
|
||
Accrued expenses and other liabilities
|
|
933,824
|
|
|
619,283
|
|
||
Total liabilities
|
|
41,045,560
|
|
|
39,178,479
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 10)
|
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 167,091,420 and 166,621,959 shares issued in 2020 and 2019, respectively
|
|
167
|
|
|
167
|
|
||
Additional paid-in capital
|
|
1,833,617
|
|
|
1,826,345
|
|
||
Retained earnings
|
|
3,695,759
|
|
|
3,689,377
|
|
||
Treasury stock, at cost — 25,656,321 shares in 2020 and 20,996,574 shares in 2019
|
|
(633,439
|
)
|
|
(479,864
|
)
|
||
Accumulated other comprehensive loss (“AOCI”), net of tax
|
|
6,881
|
|
|
(18,408
|
)
|
||
Total stockholders’ equity
|
|
4,902,985
|
|
|
5,017,617
|
|
||
TOTAL
|
|
$
|
45,948,545
|
|
|
$
|
44,196,096
|
|
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
|
||||
Loans receivable, including fees
|
|
$
|
411,869
|
|
|
$
|
423,534
|
|
AFS debt securities
|
|
20,142
|
|
|
15,748
|
|
||
Resale agreements
|
|
5,565
|
|
|
7,846
|
|
||
Restricted equity securities
|
|
446
|
|
|
713
|
|
||
Interest-bearing cash and deposits with banks
|
|
11,168
|
|
|
15,470
|
|
||
Total interest and dividend income
|
|
449,190
|
|
|
463,311
|
|
||
INTEREST EXPENSE
|
|
|
|
|
||||
Deposits
|
|
76,403
|
|
|
92,005
|
|
||
Federal funds purchased and other short-term borrowings
|
|
556
|
|
|
616
|
|
||
FHLB advances
|
|
4,166
|
|
|
2,979
|
|
||
Repurchase agreements
|
|
3,991
|
|
|
3,492
|
|
||
Long-term debt and finance lease liabilities
|
|
1,367
|
|
|
1,758
|
|
||
Total interest expense
|
|
86,483
|
|
|
100,850
|
|
||
Net interest income before provision for credit losses
|
|
362,707
|
|
|
362,461
|
|
||
Provision for credit losses
|
|
73,870
|
|
|
22,579
|
|
||
Net interest income after provision for credit losses
|
|
288,837
|
|
|
339,882
|
|
||
NONINTEREST INCOME
|
|
|
|
|
||||
Lending fees
|
|
15,773
|
|
|
14,969
|
|
||
Deposit account fees
|
|
10,447
|
|
|
9,468
|
|
||
Foreign exchange income
|
|
7,819
|
|
|
5,015
|
|
||
Wealth management fees
|
|
5,357
|
|
|
3,812
|
|
||
Interest rate contracts and other derivative income
|
|
7,073
|
|
|
3,216
|
|
||
Net gains on sales of loans
|
|
950
|
|
|
915
|
|
||
Net gains on sales of AFS debt securities
|
|
1,529
|
|
|
1,561
|
|
||
Other investment income
|
|
1,921
|
|
|
1,202
|
|
||
Other income
|
|
3,180
|
|
|
1,973
|
|
||
Total noninterest income
|
|
54,049
|
|
|
42,131
|
|
||
NONINTEREST EXPENSE
|
|
|
|
|
||||
Compensation and employee benefits
|
|
101,960
|
|
|
102,299
|
|
||
Occupancy and equipment expense
|
|
17,076
|
|
|
17,318
|
|
||
Deposit insurance premiums and regulatory assessments
|
|
3,427
|
|
|
3,088
|
|
||
Legal expense
|
|
3,197
|
|
|
2,225
|
|
||
Data processing
|
|
3,826
|
|
|
3,157
|
|
||
Consulting expense
|
|
1,217
|
|
|
2,059
|
|
||
Deposit related expense
|
|
3,563
|
|
|
3,504
|
|
||
Computer software expense
|
|
6,166
|
|
|
6,078
|
|
||
Other operating expense
|
|
21,119
|
|
|
22,289
|
|
||
Amortization of tax credit and other investments
|
|
17,325
|
|
|
24,905
|
|
||
Total noninterest expense
|
|
178,876
|
|
|
186,922
|
|
||
INCOME BEFORE INCOME TAXES
|
|
164,010
|
|
|
195,091
|
|
||
INCOME TAX EXPENSE
|
|
19,186
|
|
|
31,067
|
|
||
NET INCOME
|
|
$
|
144,824
|
|
|
$
|
164,024
|
|
EARNINGS PER SHARE (“EPS”)
|
|
|
|
|
||||
BASIC
|
|
$
|
1.00
|
|
|
$
|
1.13
|
|
DILUTED
|
|
$
|
1.00
|
|
|
$
|
1.12
|
|
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
||||
BASIC
|
|
144,814
|
|
|
145,256
|
|
||
DILUTED
|
|
145,285
|
|
|
145,921
|
|
||
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Net income
|
|
$
|
144,824
|
|
|
$
|
164,024
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
||||
Net changes in unrealized gains on AFS debt securities
|
|
27,453
|
|
|
22,011
|
|
||
Foreign currency translation adjustments
|
|
(2,164
|
)
|
|
3,180
|
|
||
Other comprehensive income
|
|
25,289
|
|
|
25,191
|
|
||
COMPREHENSIVE INCOME
|
|
$
|
170,113
|
|
|
$
|
189,215
|
|
|
|
|||||||||||||||||||||||
|
|
Common Stock and
Additional Paid-in Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
AOCI,
Net of Tax |
|
Total
Stockholders’ Equity |
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance, January 1, 2019
|
|
144,961,363
|
|
|
$
|
1,789,977
|
|
|
$
|
3,160,132
|
|
|
$
|
(467,961
|
)
|
|
$
|
(58,174
|
)
|
|
$
|
4,423,974
|
|
Cumulative-effect of change in accounting principle related to leases (1)
|
|
—
|
|
|
—
|
|
|
14,668
|
|
|
—
|
|
|
—
|
|
|
14,668
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
164,024
|
|
|
—
|
|
|
—
|
|
|
164,024
|
|
|||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,191
|
|
|
25,191
|
|
|||||
Warrants exercised
|
|
180,226
|
|
|
1,711
|
|
|
—
|
|
|
2,732
|
|
|
—
|
|
|
4,443
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
359,712
|
|
|
7,436
|
|
|
—
|
|
|
(14,036
|
)
|
|
—
|
|
|
(6,600
|
)
|
|||||
Cash dividends on common stock ($0.23 per share)
|
|
—
|
|
|
—
|
|
|
(33,770
|
)
|
|
—
|
|
|
—
|
|
|
(33,770
|
)
|
|||||
BALANCE, MARCH 31, 2019
|
|
145,501,301
|
|
|
$
|
1,799,124
|
|
|
$
|
3,305,054
|
|
|
$
|
(479,265
|
)
|
|
$
|
(32,983
|
)
|
|
$
|
4,591,930
|
|
Balance, January 1, 2020
|
|
145,625,385
|
|
|
$
|
1,826,512
|
|
|
$
|
3,689,377
|
|
|
$
|
(479,864
|
)
|
|
$
|
(18,408
|
)
|
|
$
|
5,017,617
|
|
Cumulative-effect of change in accounting principle related to credit losses (2)
|
|
—
|
|
|
—
|
|
|
(97,967
|
)
|
|
—
|
|
|
—
|
|
|
(97,967
|
)
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
144,824
|
|
|
—
|
|
|
—
|
|
|
144,824
|
|
|||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,289
|
|
|
25,289
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
281,396
|
|
|
7,272
|
|
|
—
|
|
|
(7,609
|
)
|
|
—
|
|
|
(337
|
)
|
|||||
Repurchase of common stock pursuant to the Stock Repurchase Program
|
|
(4,471,682
|
)
|
|
—
|
|
|
—
|
|
|
(145,966
|
)
|
|
—
|
|
|
(145,966
|
)
|
|||||
Cash dividends on common stock ($0.275 per share)
|
|
—
|
|
|
—
|
|
|
(40,475
|
)
|
|
—
|
|
|
—
|
|
|
(40,475
|
)
|
|||||
BALANCE, MARCH 31, 2020
|
|
141,435,099
|
|
|
$
|
1,833,784
|
|
|
$
|
3,695,759
|
|
|
$
|
(633,439
|
)
|
|
$
|
6,881
|
|
|
$
|
4,902,985
|
|
|
(1)
|
Represents the impact of the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and subsequent related ASUs in the first quarter of 2019.
|
(2)
|
Represents the impact of the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) in the first quarter of 2020. Refer to Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Quarterly Report on Form 10-Q (“this Form 10-Q”) for additional information.
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
Net income
|
|
$
|
144,824
|
|
|
$
|
164,024
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
31,186
|
|
|
39,498
|
|
||
Accretion of discount and amortization of premiums, net
|
|
(4,519
|
)
|
|
(4,414
|
)
|
||
Stock compensation costs
|
|
7,209
|
|
|
7,444
|
|
||
Deferred income tax expense (benefit)
|
|
28
|
|
|
(406
|
)
|
||
Provision for credit losses
|
|
73,870
|
|
|
22,579
|
|
||
Net gains on sales of loans
|
|
(950
|
)
|
|
(915
|
)
|
||
Net gains on sales of AFS debt securities
|
|
(1,529
|
)
|
|
(1,561
|
)
|
||
Net loss on sales of fixed assets
|
|
3
|
|
|
—
|
|
||
Loans held-for-sale:
|
|
|
|
|
||||
Originations and purchases
|
|
(5,802
|
)
|
|
(2,167
|
)
|
||
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale
|
|
4,657
|
|
|
2,454
|
|
||
Proceeds from distributions received from equity method investees
|
|
973
|
|
|
1,150
|
|
||
Net change in accrued interest receivable and other assets
|
|
(462,766
|
)
|
|
(27,639
|
)
|
||
Net change in accrued expenses and other liabilities
|
|
304,680
|
|
|
(60,806
|
)
|
||
Other net operating activities
|
|
(161
|
)
|
|
—
|
|
||
Total adjustments
|
|
(53,121
|
)
|
|
(24,783
|
)
|
||
Net cash provided by operating activities
|
|
91,703
|
|
|
139,241
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Net (increase) decrease in:
|
|
|
|
|
|
|
||
Investments in qualified affordable housing partnerships, tax credit and other investments
|
|
(27,581
|
)
|
|
(33,261
|
)
|
||
Interest-bearing deposits with banks
|
|
(115,419
|
)
|
|
245,375
|
|
||
Resale agreements:
|
|
|
|
|
||||
Proceeds from paydowns and maturities
|
|
250,000
|
|
|
—
|
|
||
AFS debt securities:
|
|
|
|
|
||||
Proceeds from sales
|
|
306,463
|
|
|
151,339
|
|
||
Proceeds from repayments, maturities and redemptions
|
|
308,620
|
|
|
55,712
|
|
||
Purchases
|
|
(987,130
|
)
|
|
(69,805
|
)
|
||
Loans held-for-investment:
|
|
|
|
|
||||
Proceeds from sales of loans originally classified as held-for-investment
|
|
110,945
|
|
|
92,887
|
|
||
Purchases
|
|
(133,185
|
)
|
|
(147,938
|
)
|
||
Other changes in loans held-for-investment, net
|
|
(1,116,358
|
)
|
|
(409,930
|
)
|
||
Premises and equipment:
|
|
|
|
|
|
|
||
Purchases
|
|
(916
|
)
|
|
(3,336
|
)
|
||
Proceeds from sales of other real estate owned (“OREO”)
|
|
295
|
|
|
—
|
|
||
Proceeds from distributions received from equity method investees
|
|
374
|
|
|
1,005
|
|
||
Other net investing activities
|
|
(1,438
|
)
|
|
(729
|
)
|
||
Net cash used in investing activities
|
|
(1,405,330
|
)
|
|
(118,681
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Net increase in deposits
|
|
1,374,287
|
|
|
800,053
|
|
||
Net increase (decrease) in short-term borrowings
|
|
39,962
|
|
|
(19,514
|
)
|
||
FHLB advances:
|
|
|
|
|
||||
Proceeds
|
|
—
|
|
|
300,000
|
|
||
Repayment
|
|
(99,999
|
)
|
|
(282,000
|
)
|
||
Repayment of long-term debt and lease liabilities
|
|
(289
|
)
|
|
(217
|
)
|
||
Common stock:
|
|
|
|
|
||||
Repurchase of common stock pursuant to the Stock Repurchase Program
|
|
(145,966
|
)
|
|
—
|
|
||
Stocks tendered for payment of withholding taxes
|
|
(7,609
|
)
|
|
(14,036
|
)
|
||
Cash dividends paid
|
|
(41,358
|
)
|
|
(34,916
|
)
|
||
Net cash provided by financing activities
|
|
1,119,028
|
|
|
749,370
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
13,492
|
|
|
14,018
|
|
||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
(181,107
|
)
|
|
783,948
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
3,261,149
|
|
|
3,001,377
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
3,080,042
|
|
|
$
|
3,785,325
|
|
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
88,520
|
|
|
$
|
97,930
|
|
Income taxes, net
|
|
$
|
2,904
|
|
|
$
|
303
|
|
Noncash investing and financing activities:
|
|
|
|
|
||||
Loans transferred from held-for-investment to held-for-sale
|
|
$
|
110,223
|
|
|
$
|
92,228
|
|
Loans transferred to OREO
|
|
$
|
19,504
|
|
|
$
|
—
|
|
|
Standard
|
Required Date of Adoption
|
Description
|
Effect 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”) model that applies to most financial assets measured at amortized cost and certain 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. ASU 2016-13 also eliminates the guidance for purchased credit impaired (“PCI”) loans, but requires an allowance for loan losses for purchased financial assets with more than an insignificant deterioration of credit since origination. The ASU also modifies the other-than-temporary impairment (“OTTI”) model for AFS debt securities to require an allowance for credit losses instead of a direct write-down. A reversal of the allowance for credit losses is allowed in future periods based on improvements in credit performance expectations. 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 efforts, which includes the implementation of new processes and controls over the new credit and loss aggregation models, completion of parallel runs, updates to the allowance documentation, policies and reporting processes.
The adoption of this ASU increased the allowance for loan losses by $125.2 million, and allowance for unfunded credit commitments by $10.5 million. The Company also recorded an after-tax decrease to opening retained earnings of $98.0 million on January 1, 2020. The increase to allowance for loan losses was primarily related to the commercial and industrial (“C&I”) and commercial real estate (“CRE”) loan portfolios. The Company did not record an allowance for credit losses on the Company’s AFS debt securities as a result of this adoption. Disclosures for periods after January 1, 2020 are presented in accordance with ASC 326
while prior period amounts continue to be reported in accordance with previously applicable standards and the accounting policies
described in the Company’s 2019 Form 10-K.
The Company has elected the CECL phase-in option provided by regulatory capital rules, which delays the impact of CECL on regulatory capital for two years, followed by a three-year transition period.
|
ASU 2017-04, 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 adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements.
|
Standard
|
Required Date of Adoption
|
Description
|
Effect on Financial Statements
|
Standards Adopted in 2020
|
|||
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
|
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 March 31, 2020 |
||||||||||||||
|
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 debt securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
51,428
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,428
|
|
U.S. government agency and U.S. government- sponsored enterprise debt securities
|
|
—
|
|
|
518,408
|
|
|
—
|
|
|
518,408
|
|
||||
U.S. government agency and U.S. government- sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
697,948
|
|
|
—
|
|
|
697,948
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
1,352,367
|
|
|
—
|
|
|
1,352,367
|
|
||||
Municipal securities
|
|
—
|
|
|
309,626
|
|
|
—
|
|
|
309,626
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
87,114
|
|
|
—
|
|
|
87,114
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
62,134
|
|
|
—
|
|
|
62,134
|
|
||||
Corporate debt securities
|
|
—
|
|
|
10,963
|
|
|
—
|
|
|
10,963
|
|
||||
Foreign bonds
|
|
—
|
|
|
284,521
|
|
|
—
|
|
|
284,521
|
|
||||
Asset-backed securities
|
|
—
|
|
|
61,556
|
|
|
—
|
|
|
61,556
|
|
||||
Collateralized loan obligations (“CLOs”)
|
|
—
|
|
|
259,878
|
|
|
—
|
|
|
259,878
|
|
||||
Total AFS debt securities
|
|
$
|
51,428
|
|
|
$
|
3,644,515
|
|
|
$
|
—
|
|
|
$
|
3,695,943
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments in tax credit and other investments:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities (1)
|
|
$
|
22,195
|
|
|
$
|
8,135
|
|
|
$
|
—
|
|
|
$
|
30,330
|
|
Total investments in tax credit and other investments
|
|
$
|
22,195
|
|
|
$
|
8,135
|
|
|
$
|
—
|
|
|
$
|
30,330
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
605,122
|
|
|
$
|
—
|
|
|
$
|
605,122
|
|
Foreign exchange contracts
|
|
—
|
|
|
64,383
|
|
|
—
|
|
|
64,383
|
|
||||
Credit contracts
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||
Equity contracts
|
|
—
|
|
|
415
|
|
|
713
|
|
|
1,128
|
|
||||
Commodity contracts
|
|
—
|
|
|
163,563
|
|
|
—
|
|
|
163,563
|
|
||||
Gross derivative assets
|
|
$
|
—
|
|
|
$
|
833,491
|
|
|
$
|
713
|
|
|
$
|
834,204
|
|
Netting adjustments (2)
|
|
$
|
—
|
|
|
$
|
(178,774
|
)
|
|
$
|
—
|
|
|
$
|
(178,774
|
)
|
Net derivative assets
|
|
$
|
—
|
|
|
$
|
654,717
|
|
|
$
|
713
|
|
|
$
|
655,430
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
403,351
|
|
|
$
|
—
|
|
|
$
|
403,351
|
|
Foreign exchange contracts
|
|
—
|
|
|
55,658
|
|
|
—
|
|
|
55,658
|
|
||||
Credit contracts
|
|
—
|
|
|
218
|
|
|
—
|
|
|
218
|
|
||||
Commodity contracts
|
|
—
|
|
|
199,288
|
|
|
—
|
|
|
199,288
|
|
||||
Gross derivative liabilities
|
|
$
|
—
|
|
|
$
|
658,515
|
|
|
$
|
—
|
|
|
$
|
658,515
|
|
Netting adjustments (2)
|
|
$
|
—
|
|
|
$
|
(243,101
|
)
|
|
$
|
—
|
|
|
$
|
(243,101
|
)
|
Net derivative liabilities
|
|
$
|
—
|
|
|
$
|
415,414
|
|
|
$
|
—
|
|
|
$
|
415,414
|
|
|
(1)
|
Equity securities consist 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-Q for additional information.
|
|
||||||||||||||||
($ 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 debt 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
|
|
||||
CLOs
|
|
—
|
|
|
284,706
|
|
|
—
|
|
|
284,706
|
|
||||
Total AFS debt 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 consist 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-Q for additional information.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Equity Contracts
|
|
|
|
|
||||
Beginning balance
|
|
$
|
421
|
|
|
$
|
673
|
|
Total gains (losses) included in earnings (1)
|
|
292
|
|
|
(231
|
)
|
||
Ending balance
|
|
$
|
713
|
|
|
$
|
442
|
|
|
(1)
|
Includes unrealized gains (losses) of $292 thousand and $(43) thousand for the three months ended March 31, 2020 and 2019, respectively. The realized/unrealized gains (losses) of equity warrants are included in Lending fees on the Consolidated Statement of Income.
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
(Level 3)
|
|
Valuation
Technique
|
|
Unobservable
Inputs
|
|
Range of Inputs
|
|
Weighted-
Average (1)
|
||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||
Equity contracts
|
|
$
|
713
|
|
|
Black-Scholes option pricing model
|
|
Equity volatility
|
|
72% — 86%
|
|
82%
|
|
|
|
|
|
|
Liquidity discount
|
|
47%
|
|
47%
|
||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||
Equity contracts
|
|
$
|
421
|
|
|
Black-Scholes option pricing model
|
|
Equity volatility
|
|
39% — 44%
|
|
42%
|
|
|
|
|
|
|
Liquidity discount
|
|
47%
|
|
47%
|
||
|
(1)
|
Weighted-average is calculated based on fair value of equity warrants as of March 31, 2020 and December 31, 2019.
|
•
|
Discounted cash flows valuation techniques that consist of developing an expected stream of cash flows over the life of the loans and then valuing the loans at the present value by discounting the expected cash flows at a designated discount rate.
|
•
|
A specific reserve is established for an impaired loan based on the fair value of the underlying collateral, which may take the form of real estate, inventory, equipment, contracts or guarantees. The fair value of the underlying collateral is generally based on third-party appraisals, or an internal 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 March 31, 2020 |
||||||||||||||
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair Value
Measurements |
|||||||||
Impaired loans (1):
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,877
|
|
|
$
|
28,877
|
|
CRE:
|
|
|
|
|
|
|
|
|
||||||||
CRE
|
|
—
|
|
|
—
|
|
|
735
|
|
|
735
|
|
||||
Total commercial
|
|
—
|
|
|
—
|
|
|
29,612
|
|
|
29,612
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||
HELOCs
|
|
—
|
|
|
—
|
|
|
1,798
|
|
|
1,798
|
|
||||
Other consumer
|
|
—
|
|
|
—
|
|
|
2,491
|
|
|
2,491
|
|
||||
Total consumer
|
|
—
|
|
|
—
|
|
|
4,289
|
|
|
4,289
|
|
||||
Total impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,901
|
|
|
$
|
33,901
|
|
Investments in tax credit and other investments, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,076
|
|
|
$
|
3,076
|
|
Other nonperforming assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
867
|
|
|
$
|
867
|
|
|
|
||||||||||||||||
($ 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 (2)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
125
|
|
|
$
|
125
|
|
Investments in tax credit and other investments, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,076
|
|
|
$
|
3,076
|
|
|
(1)
|
The Company adopted ASU 2016-13 using the prospective transition approach for PCD loans that were previously accounted for as PCI loans. Total impaired loans as of March 31, 2020 considers PCD loans, if impaired, whereas the impaired loans as of December 31, 2019 includes only non-PCI loans.
|
(2)
|
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)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Impaired loans:
|
|
Total Impaired Loans (1)
|
|
Non-PCI Impaired Loans
|
||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
$
|
(21,501
|
)
|
|
$
|
(2,734
|
)
|
CRE:
|
|
|
|
|
||||
CRE
|
|
(5
|
)
|
|
2
|
|
||
Total commercial
|
|
(21,506
|
)
|
|
(2,732
|
)
|
||
Consumer:
|
|
|
|
|
||||
Residential mortgage:
|
|
|
|
|
||||
HELOCs
|
|
(193
|
)
|
|
(78
|
)
|
||
Other consumer
|
|
2,491
|
|
|
—
|
|
||
Total consumer
|
|
2,298
|
|
|
(78
|
)
|
||
Total impaired loans
|
|
$
|
(19,208
|
)
|
|
$
|
(2,810
|
)
|
Investments in tax credit and other investments, net
|
|
$
|
150
|
|
|
$
|
(6,978
|
)
|
Other nonperforming assets
|
|
$
|
(300
|
)
|
|
$
|
—
|
|
|
(1)
|
The Company adopted ASU 2016-13 using the prospective transition approach for PCD loans that were previously accounted for as PCI loans. Total impaired loans during the three months ended March 31, 2020 considers PCD loans, if impaired, whereas impaired loans during the three months ended March 31, 2019 includes only non-PCI loans.
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements (Level 3) |
|
Valuation
Technique(s) |
|
Unobservable
Input(s)
|
|
Range of
Input(s)
|
|
Weighted-
Average (1)
|
||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans (1)
|
|
$
|
25,140
|
|
|
Discounted cash flows
|
|
Discount
|
|
4% — 15%
|
|
12%
|
|
|
$
|
5,712
|
|
|
Fair value of collateral
|
|
Discount
|
|
8% — 9%
|
|
9%
|
|
|
$
|
2,491
|
|
|
Fair value of collateral
|
|
Contract value
|
|
NM
|
|
NM
|
|
|
$
|
558
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8%
|
Other nonperforming assets
|
|
$
|
867
|
|
|
Fair value of collateral
|
|
Contract value
|
|
NM
|
|
NM
|
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, 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
|
|
(1)
|
Presented on a total impaired loan basis due to the adoption of ASU 2016-13 PCD loans (formerly, PCI loans) are assessed for impairment in the same manner as non-PCD loans.
|
(2)
|
Weighted-average is based on the relative fair value of the respective assets as of March 31, 2020 and December 31, 2019.
|
|
||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
||||||||||||||||||
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
3,080,042
|
|
|
$
|
3,080,042
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,080,042
|
|
Interest-bearing deposits with banks
|
|
$
|
293,509
|
|
|
$
|
—
|
|
|
$
|
293,509
|
|
|
$
|
—
|
|
|
$
|
293,509
|
|
Resale agreements (1)
|
|
$
|
860,000
|
|
|
$
|
—
|
|
|
$
|
867,872
|
|
|
$
|
—
|
|
|
$
|
867,872
|
|
Restricted equity securities, at cost
|
|
$
|
78,745
|
|
|
$
|
—
|
|
|
$
|
78,745
|
|
|
$
|
—
|
|
|
$
|
78,745
|
|
Loans held-for-sale
|
|
$
|
1,594
|
|
|
$
|
—
|
|
|
$
|
1,594
|
|
|
$
|
—
|
|
|
$
|
1,594
|
|
Loans held-for-investment, net
|
|
$
|
35,336,390
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,736,331
|
|
|
$
|
35,736,331
|
|
Mortgage servicing rights
|
|
$
|
5,711
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,926
|
|
|
$
|
7,926
|
|
Accrued interest receivable
|
|
$
|
148,294
|
|
|
$
|
—
|
|
|
$
|
148,294
|
|
|
$
|
—
|
|
|
$
|
148,294
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, checking, savings and money market deposits
|
|
$
|
28,720,425
|
|
|
$
|
—
|
|
|
$
|
28,720,425
|
|
|
$
|
—
|
|
|
$
|
28,720,425
|
|
Time deposits
|
|
$
|
9,966,533
|
|
|
$
|
—
|
|
|
$
|
9,992,060
|
|
|
$
|
—
|
|
|
$
|
9,992,060
|
|
Short-term borrowings
|
|
$
|
66,924
|
|
|
$
|
—
|
|
|
$
|
66,924
|
|
|
$
|
—
|
|
|
$
|
66,924
|
|
FHLB advances
|
|
$
|
646,336
|
|
|
$
|
—
|
|
|
$
|
657,859
|
|
|
$
|
—
|
|
|
$
|
657,859
|
|
Repurchase agreements (1)
|
|
$
|
450,000
|
|
|
$
|
—
|
|
|
$
|
470,230
|
|
|
$
|
—
|
|
|
$
|
470,230
|
|
Long-term debt
|
|
$
|
147,169
|
|
|
$
|
—
|
|
|
$
|
152,942
|
|
|
$
|
—
|
|
|
$
|
152,942
|
|
Accrued interest payable
|
|
$
|
25,209
|
|
|
$
|
—
|
|
|
$
|
25,209
|
|
|
$
|
—
|
|
|
$
|
25,209
|
|
|
|
||||||||||||||||||||
($ 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
|
|
|
(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, $0.0 million and $250.0 million as of March 31, 2020 and December 31, 2019, respectively, were eligible for netting against gross resale agreements
|
|
||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
||||||||||||||||||
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
|
|
$
|
860,000
|
|
|
$
|
—
|
|
|
$
|
860,000
|
|
|
$
|
(859,842
|
)
|
(1)
|
$
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
|
|
$
|
—
|
|
|
$
|
450,000
|
|
|
$
|
(441,246
|
)
|
(2)
|
$
|
8,754
|
|
|
|
||||||||||||||||||||
($ 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)
|
$
|
—
|
|
|
(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)
|
|
March 31, 2020
|
||||||||||||||
|
Amortized
Cost (1) |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
50,606
|
|
|
$
|
822
|
|
|
$
|
—
|
|
|
$
|
51,428
|
|
U.S. government agency and U.S. government-sponsored enterprise debt securities
|
|
511,176
|
|
|
7,232
|
|
|
—
|
|
|
518,408
|
|
||||
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
677,644
|
|
|
24,472
|
|
|
(4,168
|
)
|
|
697,948
|
|
||||
Residential mortgage-backed securities
|
|
1,316,009
|
|
|
38,770
|
|
|
(2,412
|
)
|
|
1,352,367
|
|
||||
Municipal securities
|
|
300,551
|
|
|
10,147
|
|
|
(1,072
|
)
|
|
309,626
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
85,843
|
|
|
2,008
|
|
|
(737
|
)
|
|
87,114
|
|
||||
Residential mortgage-backed securities
|
|
64,112
|
|
|
156
|
|
|
(2,134
|
)
|
|
62,134
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
1
|
|
|
(288
|
)
|
|
10,963
|
|
||||
Foreign bonds
|
|
283,822
|
|
|
749
|
|
|
(50
|
)
|
|
284,521
|
|
||||
Asset-backed securities
|
|
65,400
|
|
|
—
|
|
|
(3,844
|
)
|
|
61,556
|
|
||||
CLOs
|
|
294,000
|
|
|
—
|
|
|
(34,122
|
)
|
|
259,878
|
|
||||
Total AFS debt securities
|
|
$
|
3,660,413
|
|
|
$
|
84,357
|
|
|
$
|
(48,827
|
)
|
|
$
|
3,695,943
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
AFS debt 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 debt securities
|
|
$
|
3,320,648
|
|
|
$
|
19,805
|
|
|
$
|
(23,239
|
)
|
|
$
|
3,317,214
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
||||||||||||||||||||||
|
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 debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
$
|
116,225
|
|
|
$
|
(2,277
|
)
|
|
$
|
19,252
|
|
|
$
|
(1,891
|
)
|
|
$
|
135,477
|
|
|
$
|
(4,168
|
)
|
Residential mortgage-backed securities
|
|
192,572
|
|
|
(2,408
|
)
|
|
193
|
|
|
(4
|
)
|
|
192,765
|
|
|
(2,412
|
)
|
||||||
Municipal securities
|
|
18,705
|
|
|
(1,072
|
)
|
|
—
|
|
|
—
|
|
|
18,705
|
|
|
(1,072
|
)
|
||||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
31,087
|
|
|
(737
|
)
|
|
—
|
|
|
—
|
|
|
31,087
|
|
|
(737
|
)
|
||||||
Residential mortgage-backed securities
|
|
47,044
|
|
|
(2,134
|
)
|
|
—
|
|
|
—
|
|
|
47,044
|
|
|
(2,134
|
)
|
||||||
Corporate debt securities
|
|
—
|
|
|
—
|
|
|
9,713
|
|
|
(288
|
)
|
|
9,713
|
|
|
(288
|
)
|
||||||
Foreign bonds
|
|
49,950
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
49,950
|
|
|
(50
|
)
|
||||||
Asset-backed securities
|
|
50,097
|
|
|
(2,657
|
)
|
|
11,459
|
|
|
(1,187
|
)
|
|
61,556
|
|
|
(3,844
|
)
|
||||||
CLOs
|
|
259,878
|
|
|
(34,122
|
)
|
|
—
|
|
|
—
|
|
|
259,878
|
|
|
(34,122
|
)
|
||||||
Total AFS debt securities
|
|
$
|
765,558
|
|
|
$
|
(45,457
|
)
|
|
$
|
40,617
|
|
|
$
|
(3,370
|
)
|
|
$
|
806,175
|
|
|
$
|
(48,827
|
)
|
|
|
||||||||||||||||||||||||
($ 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 debt 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 debt securities
|
|
$
|
1,388,661
|
|
|
$
|
(18,990
|
)
|
|
$
|
351,048
|
|
|
$
|
(4,249
|
)
|
|
$
|
1,739,709
|
|
|
$
|
(23,239
|
)
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Proceeds from sales
|
|
$
|
306,463
|
|
|
$
|
151,339
|
|
Gross realized gains
|
|
$
|
1,529
|
|
|
$
|
1,561
|
|
Related tax expense
|
|
$
|
452
|
|
|
$
|
461
|
|
|
|
||||||||
($ in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due within one year
|
|
$
|
588,392
|
|
|
$
|
590,461
|
|
Due after one year through five years
|
|
314,312
|
|
|
319,938
|
|
||
Due after five years through ten years
|
|
240,566
|
|
|
252,057
|
|
||
Due after ten years
|
|
2,517,143
|
|
|
2,533,487
|
|
||
Total AFS debt securities
|
|
$
|
3,660,413
|
|
|
$
|
3,695,943
|
|
|
|
||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Federal Reserve Bank of San Francisco (“FRB”) stock
|
|
$
|
58,563
|
|
|
$
|
58,330
|
|
FHLB stock
|
|
20,182
|
|
|
20,250
|
|
||
Total restricted equity securities
|
|
$
|
78,745
|
|
|
$
|
78,580
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
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
|
|
|
$
|
—
|
|
|
$
|
1,144
|
|
|
$
|
31,026
|
|
|
$
|
—
|
|
|
$
|
3,198
|
|
Net investment hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
155,255
|
|
|
73
|
|
|
31
|
|
|
86,167
|
|
|
—
|
|
|
1,586
|
|
||||||
Total derivatives designated as hedging instruments
|
|
$
|
186,281
|
|
|
$
|
73
|
|
|
$
|
1,175
|
|
|
$
|
117,193
|
|
|
$
|
—
|
|
|
$
|
4,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
$
|
16,657,306
|
|
|
$
|
605,122
|
|
|
$
|
402,207
|
|
|
$
|
15,489,692
|
|
|
$
|
192,883
|
|
|
$
|
124,119
|
|
Foreign exchange contracts
|
|
4,958,834
|
|
|
64,310
|
|
|
55,627
|
|
|
4,839,661
|
|
|
54,637
|
|
|
47,024
|
|
||||||
Credit contracts
|
|
210,357
|
|
|
8
|
|
|
218
|
|
|
210,678
|
|
|
2
|
|
|
84
|
|
||||||
Equity contracts
|
|
—
|
|
(1)
|
1,128
|
|
|
—
|
|
|
—
|
|
(1)
|
1,414
|
|
|
—
|
|
||||||
Commodity contracts
|
|
—
|
|
(2)
|
163,563
|
|
|
199,288
|
|
|
—
|
|
(2)
|
81,380
|
|
|
80,517
|
|
||||||
Total derivatives not designated as hedging instruments
|
|
$
|
21,826,497
|
|
|
$
|
834,131
|
|
|
$
|
657,340
|
|
|
$
|
20,540,031
|
|
|
$
|
330,316
|
|
|
$
|
251,744
|
|
Gross derivative assets/liabilities
|
|
|
|
$
|
834,204
|
|
|
$
|
658,515
|
|
|
|
|
$
|
330,316
|
|
|
$
|
256,528
|
|
||||
Less: Master netting agreements
|
|
|
|
(158,674
|
)
|
|
(158,674
|
)
|
|
|
|
(121,561
|
)
|
|
(121,561
|
)
|
||||||||
Less: Cash collateral received/paid
|
|
|
|
(20,100
|
)
|
|
(84,427
|
)
|
|
|
|
(3,758
|
)
|
|
(38,238
|
)
|
||||||||
Net derivative assets/liabilities
|
|
|
|
$
|
655,430
|
|
|
$
|
415,414
|
|
|
|
|
$
|
204,997
|
|
|
$
|
96,729
|
|
||||
|
(1)
|
The Company held equity contracts in two public companies and 18 private companies as of March 31, 2020. In comparison, the Company held equity contracts in three public companies and 18 private companies as of December 31, 2019.
|
(2)
|
The notional amount of the Company’s commodity contracts entered with its customers totaled 6,738 thousand barrels of crude oil and 61,296 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of March 31, 2020. In comparison, 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 MMBTUs natural gas as of December 31, 2019. The Company simultaneously entered into the offsetting commodity contracts with mirrored terms with third-party financial institutions.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Gains (losses) recorded in interest expense:
|
|
|
|
|
||||
Recognized on interest rate swaps
|
|
$
|
2,045
|
|
|
$
|
1,220
|
|
Recognized on certificates of deposit
|
|
$
|
(1,362
|
)
|
|
$
|
(1,261
|
)
|
|
|
||||||||||||||||
($ in thousands)
|
|
Carrying Value (1)
|
|
Cumulative Fair
Value Adjustment (2)
|
||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|||||||||
Certificates of deposit
|
|
$
|
(30,441
|
)
|
|
$
|
(29,080
|
)
|
|
$
|
243
|
|
|
$
|
1,604
|
|
|
(1)
|
Represents the full carrying amount of the hedged certificates of deposit.
|
(2)
|
For liabilities, (increase) decrease to carrying value.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Gains recognized in AOCI
|
|
$
|
1,004
|
|
|
$
|
2,005
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount
|
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Written options
|
|
$
|
897,893
|
|
|
$
|
—
|
|
|
$
|
179
|
|
|
Purchased options
|
|
$
|
897,893
|
|
|
$
|
180
|
|
|
$
|
—
|
|
Sold collars and corridors
|
|
518,307
|
|
|
10,125
|
|
|
2
|
|
|
Collars and corridors
|
|
518,307
|
|
|
2
|
|
|
10,215
|
|
||||||
Swaps
|
|
6,900,299
|
|
|
593,753
|
|
|
—
|
|
|
Swaps
|
|
6,924,607
|
|
|
1,062
|
|
|
391,811
|
|
||||||
Total
|
|
$
|
8,316,499
|
|
|
$
|
603,878
|
|
|
$
|
181
|
|
|
Total
|
|
$
|
8,340,807
|
|
|
$
|
1,244
|
|
|
$
|
402,026
|
|
|
|
||||||||||||||||||||||||||
($ 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)
|
|
March 31, 2020
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Forwards and spot
|
|
$
|
3,658,965
|
|
|
$
|
50,674
|
|
|
$
|
38,564
|
|
|
Forwards and spot
|
|
$
|
176,903
|
|
|
$
|
4,049
|
|
|
$
|
7,721
|
|
Swaps
|
|
9,007
|
|
|
4
|
|
|
95
|
|
|
Swaps
|
|
773,059
|
|
|
7,569
|
|
|
7,256
|
|
||||||
Written options
|
|
86,810
|
|
|
217
|
|
|
—
|
|
|
Purchased options
|
|
86,810
|
|
|
—
|
|
|
217
|
|
||||||
Collars
|
|
2,205
|
|
|
27
|
|
|
—
|
|
|
Collars
|
|
165,075
|
|
|
1,770
|
|
|
1,774
|
|
||||||
Total
|
|
$
|
3,756,987
|
|
|
$
|
50,922
|
|
|
$
|
38,659
|
|
|
Total
|
|
$
|
1,201,847
|
|
|
$
|
13,388
|
|
|
$
|
16,968
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
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)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
Notional
Amount
|
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
RPAs - protection sold
|
|
$
|
199,643
|
|
|
$
|
—
|
|
|
$
|
218
|
|
|
$
|
199,964
|
|
|
$
|
—
|
|
|
$
|
84
|
|
RPAs - protection purchased
|
|
10,714
|
|
|
8
|
|
|
—
|
|
|
10,714
|
|
|
2
|
|
|
—
|
|
||||||
Total RPAs
|
|
$
|
210,357
|
|
|
$
|
8
|
|
|
$
|
218
|
|
|
$
|
210,678
|
|
|
$
|
2
|
|
|
$
|
84
|
|
|
|
||||||||||||||||||||||||||||
($ and units
in thousands)
|
|
March 31, 2020
|
||||||||||||||||||||||||||
|
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
|
|
24
|
|
|
Barrels
|
|
$
|
—
|
|
|
$
|
681
|
|
|
Purchased options
|
|
24
|
|
|
Barrels
|
|
$
|
681
|
|
|
$
|
—
|
|
Collars
|
|
2,522
|
|
|
Barrels
|
|
13
|
|
|
46,210
|
|
|
Collars
|
|
2,859
|
|
|
Barrels
|
|
49,546
|
|
|
3,732
|
|
||||
Swaps
|
|
4,192
|
|
|
Barrels
|
|
789
|
|
|
87,097
|
|
|
Swaps
|
|
4,294
|
|
|
Barrels
|
|
54,366
|
|
|
2,408
|
|
||||
Total
|
|
6,738
|
|
|
|
|
$
|
802
|
|
|
$
|
133,988
|
|
|
Total
|
|
7,177
|
|
|
|
|
$
|
104,593
|
|
|
$
|
6,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas:
|
|
|
|
|
|
|
|
|
|
Natural gas:
|
|
|
|
|
|
|
|
|
||||||||||
Written options
|
|
420
|
|
|
MMBTUs
|
|
$
|
—
|
|
|
$
|
43
|
|
|
Purchased Options
|
|
410
|
|
|
MMBTUs
|
|
$
|
22
|
|
|
$
|
—
|
|
Collars
|
|
14,201
|
|
|
MMBTUs
|
|
541
|
|
|
1,364
|
|
|
Collars
|
|
14,291
|
|
|
MMBTUs
|
|
996
|
|
|
403
|
|
||||
Swaps
|
|
46,675
|
|
|
MMBTUs
|
|
25,791
|
|
|
31,732
|
|
|
Swaps
|
|
46,500
|
|
|
MMBTUs
|
|
30,818
|
|
|
25,618
|
|
||||
Total
|
|
61,296
|
|
|
|
|
$
|
26,332
|
|
|
$
|
33,139
|
|
|
Total
|
|
61,201
|
|
|
|
|
$
|
31,836
|
|
|
$
|
26,021
|
|
Total
|
|
|
|
|
|
$
|
27,134
|
|
|
$
|
167,127
|
|
|
Total
|
|
|
|
|
|
$
|
136,429
|
|
|
$
|
32,161
|
|
||
|
|
||||||||||||||||||||||||||||
($ 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
|
|
||
|
|
||||||||||
($ in thousands)
|
|
Classification on
Consolidated
Statement of Income
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
||||
Interest rate contracts
|
|
Interest rate contracts and other derivative income
|
|
$
|
(7,011
|
)
|
|
$
|
(1,779
|
)
|
Foreign exchange contracts
|
|
Foreign exchange income
|
|
2,861
|
|
|
6,326
|
|
||
Credit contracts
|
|
Interest rate contracts and other derivative income
|
|
(23
|
)
|
|
83
|
|
||
Equity contracts
|
|
Lending fees
|
|
309
|
|
|
250
|
|
||
Commodity contracts
|
|
Interest rate contracts and other derivative income
|
|
24
|
|
|
4
|
|
||
Net (losses) gains
|
|
|
|
$
|
(3,840
|
)
|
|
$
|
4,884
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
As of March 31, 2020
|
||||||||||||||||||||||
|
|
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
|
|
$
|
834,204
|
|
|
$
|
(158,674
|
)
|
|
$
|
(20,100
|
)
|
|
$
|
655,430
|
|
|
$
|
(29,103
|
)
|
|
$
|
626,327
|
|
|
|
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
|
|
$
|
658,515
|
|
|
$
|
(158,674
|
)
|
|
$
|
(84,427
|
)
|
|
$
|
415,414
|
|
|
$
|
(232,940
|
)
|
|
$
|
182,474
|
|
|
|
||||||||||||||||||||||||
($ 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
|
|
|
(1)
|
Gross amounts recognized for derivative assets include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of $831.9 million and $328.7 million, respectively, as of March 31, 2020 and December 31, 2019, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of $2.3 million and $1.6 million, respectively, as of March 31, 2020 and December 31, 2019.
|
(2)
|
Gross amounts recognized for derivative liabilities include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of $657.6 million and $256.5 million, respectively, as of March 31, 2020 and December 31, 2019, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of $931 thousand and $20 thousand, respectively, as of March 31, 2020 and December 31, 2019.
|
(3)
|
Gross cash collateral received under master netting arrangements or similar agreements were $20.1 million and $3.8 million, respectively, as of March 31, 2020 and December 31, 2019. Of the gross cash collateral received, $20.1 million and $3.8 million were used to offset against derivative assets, respectively, as of March 31, 2020 and December 31, 2019.
|
(4)
|
Gross cash collateral pledged under master netting arrangements or similar agreements were $89.8 million and $43.0 million, respectively, as of March 31, 2020 and December 31, 2019. Of the gross cash collateral pledged, $84.4 million and $38.2 million were used to offset against derivative liabilities, respectively, as of March 31, 2020 and December 31, 2019.
|
(5)
|
Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of non-cash collateral on the consolidated balance sheet but requires disclosure of such amounts.
|
|
||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Amortized Cost (1)
|
|
Non-PCI Loans (1)
|
|
PCI Loans
|
|
Total (1)
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
12,590,764
|
|
|
$
|
12,149,121
|
|
|
$
|
1,810
|
|
|
$
|
12,150,931
|
|
CRE:
|
|
|
|
|
|
|
|
|
||||||||
CRE
|
|
10,682,242
|
|
|
10,165,247
|
|
|
113,201
|
|
|
10,278,448
|
|
||||
Multifamily residential
|
|
2,902,601
|
|
|
2,834,212
|
|
|
22,162
|
|
|
2,856,374
|
|
||||
Construction and land
|
|
606,209
|
|
|
628,459
|
|
|
40
|
|
|
628,499
|
|
||||
Total CRE
|
|
14,191,052
|
|
|
13,627,918
|
|
|
135,403
|
|
|
13,763,321
|
|
||||
Total commercial
|
|
26,781,816
|
|
|
25,777,039
|
|
|
137,213
|
|
|
25,914,252
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
7,403,723
|
|
|
7,028,979
|
|
|
79,611
|
|
|
7,108,590
|
|
||||
HELOCs
|
|
1,452,862
|
|
|
1,466,736
|
|
|
6,047
|
|
|
1,472,783
|
|
||||
Total residential mortgage
|
|
8,856,585
|
|
|
8,495,715
|
|
|
85,658
|
|
|
8,581,373
|
|
||||
Other consumer
|
|
254,992
|
|
|
282,914
|
|
|
—
|
|
|
282,914
|
|
||||
Total consumer
|
|
9,111,577
|
|
|
8,778,629
|
|
|
85,658
|
|
|
8,864,287
|
|
||||
Total loans held-for-investment
|
|
$
|
35,893,393
|
|
|
$
|
34,555,668
|
|
|
$
|
222,871
|
|
|
$
|
34,778,539
|
|
Allowance for loan losses
|
|
(557,003
|
)
|
|
(358,287
|
)
|
|
—
|
|
|
(358,287
|
)
|
||||
Loans held-for-investment, net
|
|
$
|
35,336,390
|
|
|
$
|
34,197,381
|
|
|
$
|
222,871
|
|
|
$
|
34,420,252
|
|
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(50.3) million and $(43.2) million as of March 31, 2020 and December 31, 2019, respectively.
|
|
||||||||||||||||||||
($ 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, 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
|
|
|
(1)
|
Loans net of ASC 310-10 discount.
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
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
Loans |
|||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
C&I
|
|
$
|
15,168
|
|
|
$
|
3,217
|
|
|
$
|
18,385
|
|
|
$
|
59,110
|
|
|
$
|
29,969
|
|
|
$
|
89,079
|
|
|
$
|
12,483,300
|
|
|
$
|
12,590,764
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CRE
|
|
6,050
|
|
|
936
|
|
|
6,986
|
|
|
474
|
|
|
5,824
|
|
|
6,298
|
|
|
10,668,958
|
|
|
10,682,242
|
|
||||||||
Multifamily residential
|
|
510
|
|
|
366
|
|
|
876
|
|
|
518
|
|
|
285
|
|
|
803
|
|
|
2,900,922
|
|
|
2,902,601
|
|
||||||||
Construction and land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
606,209
|
|
|
606,209
|
|
||||||||
Total CRE
|
|
6,560
|
|
|
1,302
|
|
|
7,862
|
|
|
992
|
|
|
6,109
|
|
|
7,101
|
|
|
14,176,089
|
|
|
14,191,052
|
|
||||||||
Total commercial
|
|
21,728
|
|
|
4,519
|
|
|
26,247
|
|
|
60,102
|
|
|
36,078
|
|
|
96,180
|
|
|
26,659,389
|
|
|
26,781,816
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family residential
|
|
45,926
|
|
|
12,737
|
|
|
58,663
|
|
|
1,312
|
|
|
16,224
|
|
|
17,536
|
|
|
7,327,524
|
|
|
7,403,723
|
|
||||||||
HELOCs
|
|
10,654
|
|
|
3,980
|
|
|
14,634
|
|
|
444
|
|
|
10,002
|
|
|
10,446
|
|
|
1,427,782
|
|
|
1,452,862
|
|
||||||||
Total residential mortgage
|
|
56,580
|
|
|
16,717
|
|
|
73,297
|
|
|
1,756
|
|
|
26,226
|
|
|
27,982
|
|
|
8,755,306
|
|
|
8,856,585
|
|
||||||||
Other consumer
|
|
34
|
|
|
29
|
|
|
63
|
|
|
—
|
|
|
2,506
|
|
|
2,506
|
|
|
252,423
|
|
|
254,992
|
|
||||||||
Total consumer
|
|
56,614
|
|
|
16,746
|
|
|
73,360
|
|
|
1,756
|
|
|
28,732
|
|
|
30,488
|
|
|
9,007,729
|
|
|
9,111,577
|
|
||||||||
Total
|
|
$
|
78,342
|
|
|
$
|
21,265
|
|
|
$
|
99,607
|
|
|
$
|
61,858
|
|
|
$
|
64,810
|
|
|
$
|
126,668
|
|
|
$
|
35,667,118
|
|
|
$
|
35,893,393
|
|
|
|
||||
($ in thousands)
|
|
March 31, 2020
|
||
Commercial:
|
|
|
||
C&I
|
|
$
|
64,431
|
|
CRE:
|
|
|
||
CRE
|
|
5,253
|
|
|
Total CRE
|
|
5,253
|
|
|
Total commercial
|
|
69,684
|
|
|
Consumer:
|
|
|
||
Residential mortgage:
|
|
|
||
Single-family residential
|
|
8,718
|
|
|
HELOCs
|
|
6,511
|
|
|
Total residential mortgage
|
|
15,229
|
|
|
Other consumer
|
|
2,491
|
|
|
Total consumer
|
|
17,720
|
|
|
Total nonaccrual loans with no related allowance for loan losses
|
|
$
|
87,404
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
($ 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)
|
|
Loans Modified as TDRs During the Three Months Ended March 31,
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|||||||||||||||||||||||||
|
Number
of Loans |
|
Pre-
Modification
Outstanding Recorded Investment |
|
Post-
Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
|
Number
of Loans |
|
Pre-
Modification
Outstanding Recorded Investment |
|
Post-
Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
3
|
|
$
|
16,604
|
|
|
$
|
15,735
|
|
|
$
|
98
|
|
|
3
|
|
$
|
29,152
|
|
|
$
|
29,176
|
|
|
$
|
60
|
|
Total
|
|
3
|
|
$
|
16,604
|
|
|
$
|
15,735
|
|
|
$
|
98
|
|
|
3
|
|
$
|
29,152
|
|
|
$
|
29,176
|
|
|
$
|
60
|
|
|
(1)
|
Includes subsequent payments after modification and reflects the balance as of March 31, 2020 and 2019.
|
(2)
|
The financial impact includes charge-offs and specific reserves recorded since the modification date.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Three Months Ended March 31,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|||||||||||||||||||||
|
Principal (1)
|
|
Principal
and Interest (2)
|
|
Total
|
|
Principal (1)
|
|
Principal
and Interest (2)
|
|
Total
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
4,564
|
|
|
$
|
11,171
|
|
|
$
|
15,735
|
|
|
$
|
29,176
|
|
|
$
|
—
|
|
|
$
|
29,176
|
|
Total
|
|
$
|
4,564
|
|
|
$
|
11,171
|
|
|
$
|
15,735
|
|
|
$
|
29,176
|
|
|
$
|
—
|
|
|
$
|
29,176
|
|
|
(1)
|
Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.
|
(2)
|
Includes principal and interest deferments or reductions.
|
|
|||||||
($ in thousands)
|
|
Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31, 2019
|
|||||
|
Number of
Loans |
|
Recorded
Investment |
||||
Commercial:
|
|
|
|
|
|||
C&I
|
|
3
|
|
|
$
|
4,618
|
|
Total
|
|
3
|
|
|
$
|
4,618
|
|
|
|
||||||||||||||||||||
($ 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)
|
|
Three Months Ended March 31, 2019
|
||||||
|
Average
Recorded Investment |
|
Recognized
Interest
Income (1)
|
|||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
$
|
93,391
|
|
|
$
|
735
|
|
CRE:
|
|
|
|
|
||||
CRE
|
|
30,827
|
|
|
114
|
|
||
Multifamily residential
|
|
5,721
|
|
|
61
|
|
||
Total CRE
|
|
36,548
|
|
|
175
|
|
||
Total commercial
|
|
129,939
|
|
|
910
|
|
||
Consumer:
|
|
|
|
|
||||
Residential mortgage:
|
|
|
|
|
||||
Single-family residential
|
|
15,898
|
|
|
128
|
|
||
HELOCs
|
|
10,811
|
|
|
18
|
|
||
Total residential mortgage
|
|
26,709
|
|
|
146
|
|
||
Other consumer
|
|
2,504
|
|
|
—
|
|
||
Total consumer
|
|
29,213
|
|
|
146
|
|
||
Total non-PCI impaired loans
|
|
$
|
159,152
|
|
|
$
|
1,056
|
|
|
(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)
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Residential Mortgage
|
|
Other
Consumer
|
|
||||||||||||||||||||||||
|
|
CRE
|
|
Multi-Family
Residential
|
|
Construction
and Land
|
|
Single-
Family
Residential
|
|
HELOCs
|
|
|
||||||||||||||||||||
Allowance for loan losses, December 31, 2019
|
|
$
|
238,376
|
|
|
$
|
40,509
|
|
|
$
|
22,826
|
|
|
$
|
19,404
|
|
|
$
|
28,527
|
|
|
$
|
5,265
|
|
|
$
|
3,380
|
|
|
$
|
358,287
|
|
Impact of ASU 2016-13 adoption
|
|
74,237
|
|
|
72,169
|
|
|
(8,112
|
)
|
|
(9,889
|
)
|
|
(3,670
|
)
|
|
(1,798
|
)
|
|
2,221
|
|
|
125,158
|
|
||||||||
Allowance for loan losses, January 1, 2020
|
|
312,613
|
|
|
112,678
|
|
|
14,714
|
|
|
9,515
|
|
|
24,857
|
|
|
3,467
|
|
|
5,601
|
|
|
483,445
|
|
||||||||
Provision for (reversal of ) credit losses
|
|
60,618
|
|
|
11,435
|
|
|
1,281
|
|
|
1,482
|
|
|
1,700
|
|
|
412
|
|
|
(2,272
|
)
|
|
74,656
|
|
||||||||
Gross charge-offs
|
|
(11,977
|
)
|
|
(954
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(12,957
|
)
|
||||||||
Gross recoveries
|
|
1,575
|
|
|
9,660
|
|
|
535
|
|
|
21
|
|
|
265
|
|
|
2
|
|
|
1
|
|
|
12,059
|
|
||||||||
Total net charge-offs
|
|
(10,402
|
)
|
|
8,706
|
|
|
535
|
|
|
21
|
|
|
265
|
|
|
2
|
|
|
(25
|
)
|
|
(898
|
)
|
||||||||
Foreign currency translation adjustments
|
|
(200
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(200
|
)
|
||||||||
Allowance for loan losses, March 31, 2020
|
|
$
|
362,629
|
|
|
$
|
132,819
|
|
|
$
|
16,530
|
|
|
$
|
11,018
|
|
|
$
|
26,822
|
|
|
$
|
3,881
|
|
|
$
|
3,304
|
|
|
$
|
557,003
|
|
|
|
||||
($ in thousands)
|
|
Three Months Ended
March 31, 2020 |
||
Unfunded credit facilities
|
|
|
||
Allowance for unfunded credit commitments, December 31, 2019
|
|
$
|
11,158
|
|
Impact of ASU 2016-13 adoption
|
|
10,457
|
|
|
Allowance for unfunded credit commitments, January 1, 2020
|
|
21,615
|
|
|
Reversal of credit losses
|
|
(786
|
)
|
|
Allowance for unfunded credit commitments, March 31, 2020
|
|
$
|
20,829
|
|
Total provision for credit losses
|
|
$
|
73,870
|
|
|
|
||||
($ in thousands)
|
|
Three Months Ended
March 31, 2019 |
||
Allowance for non-PCI loans, beginning of period
|
|
$
|
311,300
|
|
Provision for loan losses on non-PCI loans
|
(a)
|
20,648
|
|
|
Gross charge-offs:
|
|
|
||
Commercial:
|
|
|
||
C&I
|
|
(17,244
|
)
|
|
Consumer:
|
|
|
||
Other consumer
|
|
(14
|
)
|
|
Total gross charge-offs
|
|
(17,258
|
)
|
|
Gross recoveries:
|
|
|
||
Commercial:
|
|
|
||
C&I
|
|
2,251
|
|
|
CRE:
|
|
|
||
CRE
|
|
222
|
|
|
Multifamily residential
|
|
281
|
|
|
Construction and land
|
|
63
|
|
|
Total CRE
|
|
566
|
|
|
Consumer:
|
|
|
||
Residential mortgage:
|
|
|
||
Single-family residential
|
|
2
|
|
|
HELOCs
|
|
2
|
|
|
Total residential mortgage
|
|
4
|
|
|
Total gross recoveries
|
|
2,821
|
|
|
Net charge-offs
|
|
(14,437
|
)
|
|
Foreign currency translation adjustments
|
|
369
|
|
|
Allowance for non-PCI loans, end of period
|
|
317,880
|
|
|
PCI Loans
|
|
|
||
Allowance for PCI loans, beginning of period
|
|
22
|
|
|
Reversal of loan losses on PCI loans
|
(b)
|
(8
|
)
|
|
Allowance for PCI loans, end of period
|
|
14
|
|
|
Allowance for loan losses
|
|
$
|
317,894
|
|
Unfunded credit facilities
|
|
|
||
Allowance for unfunded credit commitments, beginning of period
|
|
$
|
12,566
|
|
Provision for unfunded credit commitments
|
(c)
|
1,939
|
|
|
Allowance for unfunded credit commitments, ending of period
|
|
$
|
14,505
|
|
Total provision for credit losses
|
(a)+(b)+(c)
|
$
|
22,579
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Residential Mortgage
|
|
Other
Consumer
|
|
||||||||||||||||||||||||
|
|
CRE
|
|
Multifamily
Residential
|
|
Construction
and Land
|
|
Single-
Family
Residential
|
|
HELOCs
|
|
|
||||||||||||||||||||
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
|
|
|
(1)
|
Loans net of ASC 310-10 discount.
|
|
||||
($ in thousands)
|
|
Three Months Ended
March 31, 2019 |
||
Accretable yield for PCI loans, beginning of period
|
|
$
|
74,870
|
|
Accretion
|
|
(6,201
|
)
|
|
Changes in expected cash flows
|
|
192
|
|
|
Accretable yield for PCI loans, end of period
|
|
$
|
68,861
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||
|
C&I
|
|
CRE
|
|
Residential Mortgage
|
|
||||||||||||||
|
|
CRE
|
|
Multifamily
Residential |
|
Single-Family
Residential |
|
|||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
102,973
|
|
|
$
|
7,250
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
110,223
|
|
Sales (2)(3)(4)
|
|
$
|
102,973
|
|
|
$
|
7,250
|
|
|
$
|
—
|
|
|
$
|
4,642
|
|
|
$
|
114,865
|
|
Purchases (5)
|
|
$
|
130,583
|
|
|
$
|
—
|
|
|
$
|
1,513
|
|
|
$
|
1,084
|
|
|
$
|
133,180
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||
|
C&I
|
|
CRE
|
|
Residential Mortgage
|
|
||||||||||||||
|
|
CRE
|
|
Multifamily
Residential |
|
Single-Family
Residential |
|
|||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
75,573
|
|
|
$
|
16,655
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92,228
|
|
Sales (2)(3)(4)
|
|
$
|
75,646
|
|
|
$
|
16,655
|
|
|
$
|
—
|
|
|
$
|
2,442
|
|
|
$
|
94,743
|
|
Purchases (5)
|
|
$
|
107,194
|
|
|
$
|
—
|
|
|
$
|
4,218
|
|
|
$
|
36,402
|
|
|
$
|
147,814
|
|
|
(1)
|
The Company recorded no write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three months ended March 31, 2020 and $73 thousand for the same period in 2019.
|
(2)
|
Includes originated loans sold of $114.9 million and $76.5 million for the three months ended March 31, 2020 and 2019, respectively. Originated loans sold during each of the three months ended March 31, 2020 and 2019 were primarily C&I loans.
|
(3)
|
Includes none and $18.2 million of purchased loans sold in the secondary market for the three months ended March 31, 2020 and 2019, respectively.
|
(4)
|
Net gains on sales of loans were $950 thousand and $915 thousand for the three months ended March 31, 2020 and 2019, respectively.
|
(5)
|
C&I loan purchases for each of the three months ended March 31, 2020 and 2019 were comprised primarily of syndicated C&I term loans.
|
|
||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Investments in qualified affordable housing partnerships, net
|
|
$
|
198,653
|
|
|
$
|
207,037
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
77,487
|
|
|
$
|
80,294
|
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Tax credits and other tax benefits recognized
|
|
$
|
11,031
|
|
|
$
|
11,826
|
|
Amortization expense included in income tax expense
|
|
$
|
8,384
|
|
|
$
|
8,897
|
|
|
|
||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Investments in tax credit and other investments, net
|
|
$
|
268,330
|
|
|
$
|
254,140
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
121,604
|
|
|
$
|
113,515
|
|
|
|
||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Total
|
||||||
Beginning balance, January 1, 2019
|
|
$
|
353,321
|
|
|
$
|
112,226
|
|
|
$
|
465,547
|
|
Acquisition of Enstream Capital Markets, LLC
|
|
—
|
|
|
150
|
|
|
150
|
|
|||
Ending balance, March 31, 2019
|
|
$
|
353,321
|
|
|
$
|
112,376
|
|
|
$
|
465,697
|
|
|
|
||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Gross balance (1)
|
|
$
|
86,099
|
|
|
$
|
86,099
|
|
Accumulated amortization (1)
|
|
(77,041
|
)
|
|
(76,088
|
)
|
||
Net carrying balance (1)
|
|
$
|
9,058
|
|
|
$
|
10,011
|
|
|
(1)
|
Excludes fully amortized core deposit intangible assets.
|
|
||||
($ in thousands)
|
|
Amount
|
||
Remainder of 2020
|
|
$
|
2,681
|
|
2021
|
|
2,749
|
|
|
2022
|
|
1,865
|
|
|
2023
|
|
1,199
|
|
|
2024
|
|
553
|
|
|
Thereafter
|
|
11
|
|
|
Total
|
|
$
|
9,058
|
|
|
|
||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Loan commitments
|
|
$
|
4,914,602
|
|
|
$
|
5,330,211
|
|
Commercial letters of credit and SBLCs
|
|
$
|
1,863,072
|
|
|
$
|
1,860,414
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Maximum Potential
Future Payments |
|
Carrying Value
|
||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|||||||||
Single-family residential loans sold or securitized with recourse
|
|
$
|
11,857
|
|
|
$
|
12,578
|
|
|
$
|
11,857
|
|
|
$
|
12,578
|
|
Multifamily residential loans sold or securitized with recourse
|
|
15,885
|
|
|
15,892
|
|
|
34,771
|
|
|
40,708
|
|
||||
Total
|
|
$
|
27,742
|
|
|
$
|
28,470
|
|
|
$
|
46,628
|
|
|
$
|
53,286
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2020
|
||||||||||||||
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
5,544
|
|
|
$
|
3,799
|
|
|
$
|
6
|
|
|
$
|
9,349
|
|
Card income
|
|
898
|
|
|
200
|
|
|
—
|
|
|
1,098
|
|
||||
Wealth management fees
|
|
5,017
|
|
|
340
|
|
|
—
|
|
|
5,357
|
|
||||
Total revenue from contracts with customers
|
|
$
|
11,459
|
|
|
$
|
4,339
|
|
|
$
|
6
|
|
|
$
|
15,804
|
|
Other sources of noninterest income (1)
|
|
4,943
|
|
|
28,117
|
|
|
5,185
|
|
|
38,245
|
|
||||
Total noninterest income
|
|
$
|
16,402
|
|
|
$
|
32,456
|
|
|
$
|
5,191
|
|
|
$
|
54,049
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
5,233
|
|
|
$
|
3,274
|
|
|
$
|
16
|
|
|
$
|
8,523
|
|
Card income
|
|
760
|
|
|
185
|
|
|
—
|
|
|
945
|
|
||||
Wealth management fees
|
|
3,706
|
|
|
106
|
|
|
—
|
|
|
3,812
|
|
||||
Total revenue from contracts with customers
|
|
$
|
9,699
|
|
|
$
|
3,565
|
|
|
$
|
16
|
|
|
$
|
13,280
|
|
Other sources of noninterest income (1)
|
|
4,073
|
|
|
20,979
|
|
|
3,799
|
|
|
28,851
|
|
||||
Total noninterest income
|
|
$
|
13,772
|
|
|
$
|
24,544
|
|
|
$
|
3,815
|
|
|
$
|
42,131
|
|
|
(1)
|
Primarily represents revenue from contracts with customers that are out of the scope of ASC 606, Revenue from Contracts with Customers.
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Stock compensation costs
|
|
$
|
7,209
|
|
|
$
|
7,444
|
|
Related net tax (deficiencies) benefits for stock compensation plans
|
|
$
|
(1,566
|
)
|
|
$
|
4,707
|
|
|
|
||||||||||||||
|
|
Time-Based RSUs
|
|
Performance-Based RSUs
|
||||||||||
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|||||||
Outstanding, January 1, 2020
|
|
1,139,868
|
|
|
$
|
57.78
|
|
|
386,483
|
|
|
$
|
60.13
|
|
Granted
|
|
606,327
|
|
|
41.76
|
|
|
165,084
|
|
|
39.79
|
|
||
Vested
|
|
(250,160
|
)
|
|
54.47
|
|
|
(131,597
|
)
|
|
56.59
|
|
||
Forfeited
|
|
(22,182
|
)
|
|
52.82
|
|
|
—
|
|
|
—
|
|
||
Outstanding, March 31, 2020
|
|
1,473,853
|
|
|
$
|
51.83
|
|
|
419,970
|
|
|
$
|
53.24
|
|
|
|
|||
|
|
Shares
|
|
Outstanding, January 1, 2020
|
|
11,638
|
|
Granted
|
|
5,639
|
|
Vested
|
|
(600
|
)
|
Forfeited
|
|
—
|
|
Outstanding, March 31, 2020
|
|
16,677
|
|
|
|
||||||||
($ and shares in thousands, except per share data)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Basic:
|
|
|
|
|
||||
Net income
|
|
$
|
144,824
|
|
|
$
|
164,024
|
|
Basic weighted-average number of shares outstanding
|
|
144,814
|
|
|
145,256
|
|
||
Basic EPS
|
|
$
|
1.00
|
|
|
$
|
1.13
|
|
Diluted:
|
|
|
|
|
||||
Net income
|
|
$
|
144,824
|
|
|
$
|
164,024
|
|
Basic weighted-average number of shares outstanding (1)
|
|
144,814
|
|
|
145,256
|
|
||
Diluted potential common shares (2)
|
|
471
|
|
|
665
|
|
||
Diluted weighted-average number of shares outstanding (1)(2)
|
|
145,285
|
|
|
145,921
|
|
||
Diluted EPS
|
|
$
|
1.00
|
|
|
$
|
1.12
|
|
|
(1)
|
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.
|
(2)
|
Includes dilutive shares from RSUs for the three months ended March 31, 2020 and 2019.
|
|
||||||||||||
($ in thousands)
|
|
Available-
for-Sale Debt Securities |
|
Foreign
Currency Translation Adjustments (1) |
|
Total
|
||||||
Balance, January 1, 2019
|
|
$
|
(45,821
|
)
|
|
$
|
(12,353
|
)
|
|
$
|
(58,174
|
)
|
Net unrealized gains arising during the period
|
|
23,111
|
|
|
3,180
|
|
|
26,291
|
|
|||
Amounts reclassified from AOCI
|
|
(1,100
|
)
|
|
—
|
|
|
(1,100
|
)
|
|||
Changes, net of tax
|
|
22,011
|
|
|
3,180
|
|
|
25,191
|
|
|||
Balance, March 31, 2019
|
|
$
|
(23,810
|
)
|
|
$
|
(9,173
|
)
|
|
$
|
(32,983
|
)
|
Balance, January 1, 2020
|
|
$
|
(2,419
|
)
|
|
$
|
(15,989
|
)
|
|
$
|
(18,408
|
)
|
Net unrealized gains (losses) arising during the period
|
|
28,530
|
|
|
(2,164
|
)
|
|
26,366
|
|
|||
Amounts reclassified from AOCI
|
|
(1,077
|
)
|
|
—
|
|
|
(1,077
|
)
|
|||
Changes, net of tax
|
|
27,453
|
|
|
(2,164
|
)
|
|
25,289
|
|
|||
Balance, March 31, 2020
|
|
$
|
25,034
|
|
|
$
|
(18,153
|
)
|
|
$
|
6,881
|
|
|
(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.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|||||||||||||||||||||
|
Before-Tax
|
|
Tax Effect
|
|
Net-of-Tax
|
|
Before-Tax
|
|
Tax Effect
|
|
Net-of-Tax
|
|||||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains arising during the period
|
|
$
|
40,493
|
|
|
$
|
(11,963
|
)
|
|
$
|
28,530
|
|
|
$
|
30,938
|
|
|
$
|
(7,827
|
)
|
|
$
|
23,111
|
|
Net realized gains reclassified into net income (1)
|
|
(1,529
|
)
|
|
452
|
|
|
(1,077
|
)
|
|
(1,561
|
)
|
|
461
|
|
|
(1,100
|
)
|
||||||
Net change
|
|
38,964
|
|
|
(11,511
|
)
|
|
27,453
|
|
|
29,377
|
|
|
(7,366
|
)
|
|
22,011
|
|
||||||
Foreign currency translation adjustments, net of hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized (losses) gains arising during the period
|
|
(1,766
|
)
|
|
(398
|
)
|
|
(2,164
|
)
|
|
3,180
|
|
|
—
|
|
|
3,180
|
|
||||||
Net change
|
|
(1,766
|
)
|
|
(398
|
)
|
|
(2,164
|
)
|
|
3,180
|
|
|
—
|
|
|
3,180
|
|
||||||
Other comprehensive income (loss)
|
|
$
|
37,198
|
|
|
$
|
(11,909
|
)
|
|
$
|
25,289
|
|
|
$
|
32,557
|
|
|
$
|
(7,366
|
)
|
|
$
|
25,191
|
|
|
(1)
|
For the three months ended March 31, 2020 and 2019, pre-tax amounts were reported in Net gains on sales of AFS debt securities on the Consolidated Statement of Income.
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Three months ended March 31, 2020
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
152,591
|
|
|
$
|
183,501
|
|
|
$
|
26,615
|
|
|
$
|
362,707
|
|
Provision for credit losses
|
|
7,788
|
|
|
66,082
|
|
|
—
|
|
|
73,870
|
|
||||
Noninterest income
|
|
16,402
|
|
|
32,456
|
|
|
5,191
|
|
|
54,049
|
|
||||
Noninterest expense
|
|
86,964
|
|
|
70,126
|
|
|
21,786
|
|
|
178,876
|
|
||||
Segment income before income taxes
|
|
74,241
|
|
|
79,749
|
|
|
10,020
|
|
|
164,010
|
|
||||
Segment net income
|
|
$
|
53,195
|
|
|
$
|
57,131
|
|
|
$
|
34,498
|
|
|
$
|
144,824
|
|
As of March 31, 2020
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
11,894,691
|
|
|
$
|
26,412,726
|
|
|
$
|
7,641,128
|
|
|
$
|
45,948,545
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Three months ended March 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
185,059
|
|
|
$
|
152,708
|
|
|
$
|
24,694
|
|
|
$
|
362,461
|
|
Provision for credit losses
|
|
3,013
|
|
|
19,566
|
|
|
—
|
|
|
22,579
|
|
||||
Noninterest income
|
|
13,772
|
|
|
24,544
|
|
|
3,815
|
|
|
42,131
|
|
||||
Noninterest expense
|
|
87,906
|
|
|
70,544
|
|
|
28,472
|
|
|
186,922
|
|
||||
Segment income before income taxes
|
|
107,912
|
|
|
87,142
|
|
|
37
|
|
|
195,091
|
|
||||
Segment net income
|
|
$
|
77,146
|
|
|
$
|
62,334
|
|
|
$
|
24,544
|
|
|
$
|
164,024
|
|
As of March 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
10,902,961
|
|
|
$
|
23,964,592
|
|
|
$
|
7,223,880
|
|
|
$
|
42,091,433
|
|
|
|
|
|
Page
|
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|
||||||||||||
($ and shares in thousands, except per share, ratio and headcount data)
|
|
Three Months Ended
|
||||||||||
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
|||||||
Summary of operations:
|
|
|
|
|
|
|
||||||
Interest and dividend income
|
|
$
|
449,190
|
|
|
$
|
467,233
|
|
|
$
|
463,311
|
|
Interest expense
|
|
86,483
|
|
|
99,014
|
|
|
100,850
|
|
|||
Net interest income before provision for credit losses
|
|
362,707
|
|
|
368,219
|
|
|
362,461
|
|
|||
Provision for credit losses
|
|
73,870
|
|
|
18,577
|
|
|
22,579
|
|
|||
Net interest income after provision for credit losses
|
|
288,837
|
|
|
349,642
|
|
|
339,882
|
|
|||
Noninterest income
|
|
54,049
|
|
|
63,013
|
|
|
42,131
|
|
|||
Noninterest expense
|
|
178,876
|
|
|
193,373
|
|
|
186,922
|
|
|||
Income before income taxes
|
|
164,010
|
|
|
219,282
|
|
|
195,091
|
|
|||
Income tax expense
|
|
19,186
|
|
|
31,067
|
|
|
31,067
|
|
|||
Net income
|
|
$
|
144,824
|
|
|
$
|
188,215
|
|
|
$
|
164,024
|
|
Per common share:
|
|
|
|
|
|
|
||||||
Basic earnings
|
|
$
|
1.00
|
|
|
$
|
1.29
|
|
|
$
|
1.13
|
|
Diluted earnings
|
|
$
|
1.00
|
|
|
$
|
1.29
|
|
|
$
|
1.12
|
|
Dividends declared
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.23
|
|
Book value
|
|
$
|
34.67
|
|
|
$
|
34.46
|
|
|
$
|
31.56
|
|
Non-U.S. generally accepted accounting principles (“GAAP”) tangible common equity per share (1)
|
|
$
|
31.27
|
|
|
$
|
31.15
|
|
|
$
|
28.21
|
|
Weighted-average number of shares outstanding:
|
|
|
|
|
|
|
||||||
Basic
|
|
144,814
|
|
|
145,624
|
|
|
145,256
|
|
|||
Diluted
|
|
145,285
|
|
|
146,318
|
|
|
145,921
|
|
|||
Common shares outstanding at period-end
|
|
141,435
|
|
|
145,625
|
|
|
145,501
|
|
|||
At period end:
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
45,948,545
|
|
|
$
|
44,196,096
|
|
|
$
|
42,091,433
|
|
Total loans
|
|
$
|
35,894,987
|
|
|
$
|
34,778,973
|
|
|
$
|
32,863,286
|
|
Available-for-sale (“AFS”) debt securities
|
|
$
|
3,695,943
|
|
|
$
|
3,317,214
|
|
|
$
|
2,640,158
|
|
Total deposits
|
|
$
|
38,686,958
|
|
|
$
|
37,324,259
|
|
|
$
|
36,273,972
|
|
Long-term debt and finance lease liabilities
|
|
$
|
152,162
|
|
|
$
|
152,270
|
|
|
$
|
152,433
|
|
Federal Home Loan Bank (“FHLB”) advances
|
|
$
|
646,336
|
|
|
$
|
745,915
|
|
|
$
|
344,657
|
|
Stockholders’ equity (2)
|
|
$
|
4,902,985
|
|
|
$
|
5,017,617
|
|
|
$
|
4,591,930
|
|
Non-GAAP tangible common equity (1)
|
|
$
|
4,422,519
|
|
|
$
|
4,535,841
|
|
|
$
|
4,105,124
|
|
Head count (full-time equivalent)
|
|
3,285
|
|
|
3,294
|
|
|
3,241
|
|
|||
Performance metrics:
|
|
|
|
|
|
|
||||||
Return on average assets (“ROA”)
|
|
1.30
|
%
|
|
1.68
|
%
|
|
1.63
|
%
|
|||
Return on average equity (“ROE”)
|
|
11.60
|
%
|
|
15.00
|
%
|
|
14.66
|
%
|
|||
Net interest margin
|
|
3.44
|
%
|
|
3.47
|
%
|
|
3.79
|
%
|
|||
Efficiency ratio (3)
|
|
42.92
|
%
|
|
44.84
|
%
|
|
46.20
|
%
|
|||
Non-GAAP efficiency ratio (1)
|
|
38.54
|
%
|
|
38.33
|
%
|
|
39.75
|
%
|
|||
Credit quality metrics:
|
|
|
|
|
|
|
||||||
Allowance for loan losses
|
|
$
|
557,003
|
|
|
$
|
358,287
|
|
|
$
|
317,894
|
|
Allowance for loan losses to loans held-for-investment
|
|
1.55
|
%
|
|
1.03
|
%
|
|
0.97
|
%
|
|||
Nonperforming assets to total assets
|
|
0.33
|
%
|
|
0.27
|
%
|
|
0.33
|
%
|
|||
Annualized net charge-offs to average loans held-for-investment
|
|
0.01
|
%
|
|
0.10
|
%
|
|
0.18
|
%
|
|||
Selected metrics:
|
|
|
|
|
|
|
||||||
Total average equity to total average assets
|
|
11.22
|
%
|
|
11.19
|
%
|
|
11.14
|
%
|
|||
Common dividend payout ratio
|
|
27.95
|
%
|
|
21.52
|
%
|
|
20.59
|
%
|
|||
Loan-to-deposit ratio
|
|
92.78
|
%
|
|
93.18
|
%
|
|
90.60
|
%
|
|||
EWBC Capital ratios:
|
|
|
|
|
|
|
||||||
Common Equity Tier 1 (“CET1”) capital
|
|
12.4
|
%
|
|
12.9
|
%
|
|
12.4
|
%
|
|||
Tier 1 capital
|
|
12.4
|
%
|
|
12.9
|
%
|
|
12.4
|
%
|
|||
Total capital
|
|
13.9
|
%
|
|
14.4
|
%
|
|
13.9
|
%
|
|||
Tier 1 leverage capital
|
|
10.2
|
%
|
|
10.3
|
%
|
|
10.2
|
%
|
|||
|
(1)
|
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 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-Q.
|
(2)
|
On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments using the modified retrospective approach. The Company recorded an after-tax decrease to opening retained earnings of $98.0 million as of January 1, 2020.
|
(3)
|
The efficiency ratio is noninterest expense divided by total revenue (net interest income before provision for credit losses and noninterest income).
|
|
|
|
|
•
|
Earnings: First quarter of 2020 net income was $144.8 million or $1.00 in diluted earnings per share (“EPS”), compared with first quarter of 2019 net income of $164.0 million or diluted EPS of $1.12. The $19.2 million or 12% decrease in net income was primarily due to higher provision for credit losses resulting from the newly adopted CECL methodology and the deteriorating macroeconomic conditions and outlook as a result of the COVID-19 pandemic.
|
•
|
Adjusted Earnings: There were no adjustments for non-recurring items during the first quarter of 2020 that affected non-GAAP net income and diluted EPS. During the first quarter of 2019, the Company recorded a $7.0 million pre-tax or $4.9 million after-tax, impairment charge related to DC Solar and affiliates (“DC Solar”). (Refer to Item 2. MD&A — Results of Operations — Income Taxes in this Form 10-Q for a discussion related to the Company’s investment in DC Solar and see reconciliations of non-GAAP measures presented under Item 2. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-Q.) First quarter 2019 non-GAAP net income was $168.9 million and non-GAAP diluted EPS was $1.16.
|
•
|
Revenue: Revenue, or the sum of net interest income before provision for credit losses and noninterest income, was $416.8 million for the first quarter of 2020, compared with $404.6 million for the first quarter of 2019, an increase of $12.2 million or 3%. This increase was primarily due to increased noninterest income.
|
•
|
Net Interest Income and Net Interest Margin: First quarter of 2020 net interest income was $362.7 million, compared with first quarter of 2019 net interest income of $362.5 million. First quarter of 2020 net interest margin was 3.44%, a 35 basis point decrease from 3.79% for the first quarter of 2019. The decrease in the net interest margin reflected materially lower interest rates year-over-year, including a cumulative 225 basis points of cuts to the fed funds target rate in the second half of 2019 and in the first quarter of 2020.
|
•
|
Operating Efficiency: Efficiency ratio, calculated as noninterest expense divided by revenue, was 42.92% and 46.20% for the first quarters of 2020 and 2019, respectively. Adjusting for amortization of tax credit and other investments, and core deposit intangibles, non-GAAP efficiency ratio for the first quarter of 2020 was 38.54%, a 121 basis point improvement from 39.75% for the first quarter of 2019. (See reconciliations of non-GAAP measures presented under Item 2. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-Q.)
|
•
|
Tax: Income tax expense was $19.2 million and the effective tax rate was 11.7% for the first quarter of 2020, compared with an income tax expense of $31.1 million and an effective tax rate of 15.9% for the first quarter of 2019.
|
•
|
Profitability: First quarter of 2020 ROA was 1.30% and first quarter of 2019 ROA was 1.63%. First quarter of 2020 ROE was 11.60% and first quarter of 2019 ROE was 14.66%. Adjusting for non-recurring items, which occurred only in the first quarter of 2019, non-GAAP ROA and non-GAAP ROE for the first quarter of 2019 were 1.68% and 15.10%, respectively. (See reconciliations of non-GAAP measures presented under Item 2. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-Q.)
|
•
|
Loans: Total loans were $35.89 billion as of March 31, 2020, an increase of $1.12 billion or 3% from $34.78 billion as of December 31, 2019. Growth was well-diversified across commercial and industrial (“C&I”), total commercial real estate (“CRE”) and residential mortgage loans.
|
•
|
Deposits: Total deposits were $38.69 billion as of March 31, 2020, an increase of $1.36 billion or 4% from $37.32 billion as of December 31, 2019. This increase was primarily driven by growth in noninterest-bearing demand deposits and money market accounts.
|
•
|
Asset Quality Metrics: The allowance for loan losses was $557.0 million or 1.55% of loans held-for-investment, as of March 31, 2020, compared with $358.3 million or 1.03% of loans held-for-investment, as of December 31, 2019. The increase in the allowance for loan losses was due to the adoption of ASU 2016-13, which increased the allowance for loan losses by $125.2 million; deteriorating macroeconomic conditions and outlook as a result of the
|
•
|
Capital Levels: Our capital levels are strong. As of March 31, 2020, all of the Company’s and the Bank’s regulatory capital ratios were well above the regulatory requirements to be considered well-capitalized. See Item 2. MD&A — Balance Sheet Analysis — Regulatory Capital and Ratios in this Form 10-Q for more information regarding capital. During the three months ended March 31, 2020, the Company repurchased 4,471,682 shares at an average price of $32.64 per share and a total cost of $146.0 million. The Company did not repurchase any shares during the three months ended March 31, 2019.
|
•
|
Cash Dividend: The quarterly cash common stock dividend for the first quarter of 2020 was $0.275 per share, an increase of $0.045 or 20% from $0.23 per share for the first quarter of 2019. The Company returned $40.5 million in cash dividends to stockholders during the first quarter of 2020, compared with $33.8 million during the same period in 2019.
|
|
|
|
|
||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
2020
|
|
2019
|
|||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate (1)
|
|
Average
Balance |
|
Interest
|
|
Average
Yield/
Rate (1)
|
|||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
2,973,006
|
|
|
$
|
11,168
|
|
|
1.51
|
%
|
|
$
|
2,578,686
|
|
|
$
|
15,470
|
|
|
2.43
|
%
|
Securities purchased under resale agreements (“Resale agreements”) (2)
|
|
882,142
|
|
|
5,565
|
|
|
2.54
|
%
|
|
1,035,000
|
|
|
7,846
|
|
|
3.07
|
%
|
||||
AFS debt securities (3)(4)
|
|
3,274,740
|
|
|
20,142
|
|
|
2.47
|
%
|
|
2,642,299
|
|
|
15,748
|
|
|
2.42
|
%
|
||||
Loans (5)(6)
|
|
35,153,968
|
|
|
411,869
|
|
|
4.71
|
%
|
|
32,414,785
|
|
|
423,534
|
|
|
5.30
|
%
|
||||
Restricted equity securities
|
|
78,675
|
|
|
446
|
|
|
2.28
|
%
|
|
74,234
|
|
|
713
|
|
|
3.90
|
%
|
||||
Total interest-earning assets
|
|
$
|
42,362,531
|
|
|
$
|
449,190
|
|
|
4.26
|
%
|
|
$
|
38,745,004
|
|
|
$
|
463,311
|
|
|
4.85
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
510,512
|
|
|
|
|
|
|
468,159
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(492,297
|
)
|
|
|
|
|
|
(314,446
|
)
|
|
|
|
|
||||||||
Other assets
|
|
2,374,763
|
|
|
|
|
|
|
1,839,687
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
44,755,509
|
|
|
|
|
|
|
$
|
40,738,404
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Checking deposits
|
|
$
|
5,001,672
|
|
|
$
|
10,246
|
|
|
0.82
|
%
|
|
$
|
5,270,855
|
|
|
$
|
14,255
|
|
|
1.10
|
%
|
Money market deposits
|
|
9,013,381
|
|
|
22,248
|
|
|
0.99
|
%
|
|
8,080,848
|
|
|
30,234
|
|
|
1.52
|
%
|
||||
Savings deposits
|
|
2,076,270
|
|
|
1,817
|
|
|
0.35
|
%
|
|
2,091,406
|
|
|
2,227
|
|
|
0.43
|
%
|
||||
Time deposits
|
|
10,264,007
|
|
|
42,092
|
|
|
1.65
|
%
|
|
9,408,897
|
|
|
45,289
|
|
|
1.95
|
%
|
||||
Federal funds purchased and other short-term borrowings
|
|
59,978
|
|
|
556
|
|
|
3.73
|
%
|
|
60,442
|
|
|
616
|
|
|
4.13
|
%
|
||||
FHLB advances
|
|
693,357
|
|
|
4,166
|
|
|
2.42
|
%
|
|
338,027
|
|
|
2,979
|
|
|
3.57
|
%
|
||||
Repurchase agreements (2)
|
|
332,417
|
|
|
3,991
|
|
|
4.83
|
%
|
|
50,000
|
|
|
3,492
|
|
|
28.32
|
%
|
||||
Long-term debt and finance lease liabilities
|
|
152,259
|
|
|
1,367
|
|
|
3.61
|
%
|
|
152,360
|
|
|
1,758
|
|
|
4.68
|
%
|
||||
Total interest-bearing liabilities
|
|
$
|
27,593,341
|
|
|
$
|
86,483
|
|
|
1.26
|
%
|
|
$
|
25,452,835
|
|
|
$
|
100,850
|
|
|
1.61
|
%
|
Noninterest-bearing liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
11,117,710
|
|
|
|
|
|
|
10,071,370
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
|
1,022,453
|
|
|
|
|
|
|
676,898
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
5,022,005
|
|
|
|
|
|
|
4,537,301
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
44,755,509
|
|
|
|
|
|
|
$
|
40,738,404
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.00
|
%
|
|
|
|
|
|
3.24
|
%
|
||||||||
Net interest income and net interest margin
|
|
|
|
$
|
362,707
|
|
|
3.44
|
%
|
|
|
|
$
|
362,461
|
|
|
3.79
|
%
|
||||
|
(1)
|
Annualized.
|
(2)
|
Average balances of resale and repurchase agreements have been reported net, pursuant to Accounting Standards Codification (“ASC”) 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale agreements were 2.54% and 2.80% for the first quarters of 2020 and 2019, respectively. The weighted-average interest rates of gross repurchase agreements were 4.10% and 5.01% for the first quarters of 2020 and 2019, respectively.
|
(3)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
(4)
|
Includes the amortization of premiums on debt securities of $3.3 million and $3.0 million for the first quarters of 2020 and 2019, respectively.
|
(5)
|
Average balances include nonperforming loans and loans held-for-sale.
|
(6)
|
Loans include the accretion of net deferred loan fees, unearned fees and amortization of premiums, which totaled $8.0 million for both the first quarters of 2020 and 2019.
|
|
||||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||||||
|
2020 vs. 2019
|
|||||||||||
|
Total
Change
|
|
Changes Due to
|
|||||||||
|
|
Volume
|
|
Yield/Rate
|
||||||||
Interest-earning assets:
|
|
|
|
|
|
|
||||||
Interest-bearing cash and deposits with banks
|
|
$
|
(4,302
|
)
|
|
$
|
2,163
|
|
|
$
|
(6,465
|
)
|
Resale agreements
|
|
(2,281
|
)
|
|
(1,045
|
)
|
|
(1,236
|
)
|
|||
AFS debt securities
|
|
4,394
|
|
|
4,002
|
|
|
392
|
|
|||
Loans (1)
|
|
(11,665
|
)
|
|
35,890
|
|
|
(47,555
|
)
|
|||
Restricted equity securities
|
|
(267
|
)
|
|
42
|
|
|
(309
|
)
|
|||
Total interest and dividend income
|
|
$
|
(14,121
|
)
|
|
$
|
41,052
|
|
|
$
|
(55,173
|
)
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
||||||
Checking deposits
|
|
$
|
(4,009
|
)
|
|
$
|
(683
|
)
|
|
$
|
(3,326
|
)
|
Money market deposits
|
|
(7,986
|
)
|
|
3,277
|
|
|
(11,263
|
)
|
|||
Savings deposits
|
|
(410
|
)
|
|
(15
|
)
|
|
(395
|
)
|
|||
Time deposits
|
|
(3,197
|
)
|
|
4,052
|
|
|
(7,249
|
)
|
|||
Federal funds purchased and other short-term borrowings
|
|
(60
|
)
|
|
(4
|
)
|
|
(56
|
)
|
|||
FHLB advances
|
|
1,187
|
|
|
2,395
|
|
|
(1,208
|
)
|
|||
Repurchase agreements
|
|
499
|
|
|
5,529
|
|
|
(5,030
|
)
|
|||
Long-term debt
|
|
(391
|
)
|
|
(1
|
)
|
|
(390
|
)
|
|||
Total interest expense
|
|
$
|
(14,367
|
)
|
|
$
|
14,550
|
|
|
$
|
(28,917
|
)
|
Change in net interest income
|
|
$
|
246
|
|
|
$
|
26,502
|
|
|
$
|
(26,256
|
)
|
|
|
|||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
% Change
|
||||||
Lending fees
|
|
$
|
15,773
|
|
|
$
|
14,969
|
|
|
5
|
%
|
Deposit account fees
|
|
10,447
|
|
|
9,468
|
|
|
10
|
%
|
||
Foreign exchange income
|
|
7,819
|
|
|
5,015
|
|
|
56
|
%
|
||
Wealth management fees
|
|
5,357
|
|
|
3,812
|
|
|
41
|
%
|
||
Interest rate contracts and other derivative income
|
|
7,073
|
|
|
3,216
|
|
|
120
|
%
|
||
Net gains on sales of loans
|
|
950
|
|
|
915
|
|
|
4
|
%
|
||
Net gains on sales of AFS debt securities
|
|
1,529
|
|
|
1,561
|
|
|
(2
|
%)
|
||
Other investment income
|
|
1,921
|
|
|
1,202
|
|
|
60
|
%
|
||
Other income
|
|
3,180
|
|
|
1,973
|
|
|
61
|
%
|
||
Total noninterest income
|
|
$
|
54,049
|
|
|
$
|
42,131
|
|
|
28
|
%
|
|
|
|||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
% Change
|
||||||
Compensation and employee benefits
|
|
$
|
101,960
|
|
|
$
|
102,299
|
|
|
—
|
%
|
Occupancy and equipment expense
|
|
17,076
|
|
|
17,318
|
|
|
(1
|
%)
|
||
Deposit insurance premiums and regulatory assessments
|
|
3,427
|
|
|
3,088
|
|
|
11
|
%
|
||
Legal expense
|
|
3,197
|
|
|
2,225
|
|
|
44
|
%
|
||
Data processing
|
|
3,826
|
|
|
3,157
|
|
|
21
|
%
|
||
Consulting expense
|
|
1,217
|
|
|
2,059
|
|
|
(41
|
)%
|
||
Deposit related expense
|
|
3,563
|
|
|
3,504
|
|
|
2
|
%
|
||
Computer software expense
|
|
6,166
|
|
|
6,078
|
|
|
1
|
%
|
||
Other operating expense
|
|
21,119
|
|
|
22,289
|
|
|
(5
|
)%
|
||
Amortization of tax credit and other investments
|
|
17,325
|
|
|
24,905
|
|
|
(30
|
)%
|
||
Total noninterest expense
|
|
$
|
178,876
|
|
|
$
|
186,922
|
|
|
(4
|
)%
|
|
|
|||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
% Change
|
||||||
Income before income taxes
|
|
$
|
164,010
|
|
|
$
|
195,091
|
|
|
(16
|
)%
|
Income tax expense
|
|
$
|
19,186
|
|
|
$
|
31,067
|
|
|
(38
|
%)
|
Effective tax rate
|
|
11.7
|
%
|
|
15.9
|
%
|
|
|
|
||
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2020
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
152,591
|
|
|
$
|
183,501
|
|
|
$
|
26,615
|
|
|
$
|
362,707
|
|
Provision for credit losses
|
|
7,788
|
|
|
66,082
|
|
|
—
|
|
|
73,870
|
|
||||
Noninterest income
|
|
16,402
|
|
|
32,456
|
|
|
5,191
|
|
|
54,049
|
|
||||
Noninterest expense
|
|
86,964
|
|
|
70,126
|
|
|
21,786
|
|
|
178,876
|
|
||||
Segment income before income taxes
|
|
74,241
|
|
|
79,749
|
|
|
10,020
|
|
|
164,010
|
|
||||
Segment net income
|
|
$
|
53,195
|
|
|
$
|
57,131
|
|
|
$
|
34,498
|
|
|
$
|
144,824
|
|
Average loans
|
|
$
|
11,269,489
|
|
|
$
|
23,884,479
|
|
|
$
|
—
|
|
|
$
|
35,153,968
|
|
Average deposits
|
|
$
|
25,593,064
|
|
|
$
|
9,175,430
|
|
|
$
|
2,704,546
|
|
|
$
|
37,473,040
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
185,059
|
|
|
$
|
152,708
|
|
|
$
|
24,694
|
|
|
$
|
362,461
|
|
Provision for credit losses
|
|
3,013
|
|
|
19,566
|
|
|
—
|
|
|
22,579
|
|
||||
Noninterest income
|
|
13,772
|
|
|
24,544
|
|
|
3,815
|
|
|
42,131
|
|
||||
Noninterest expense
|
|
87,906
|
|
|
70,544
|
|
|
28,472
|
|
|
186,922
|
|
||||
Segment income before income taxes
|
|
107,912
|
|
|
87,142
|
|
|
37
|
|
|
195,091
|
|
||||
Segment net income
|
|
$
|
77,146
|
|
|
$
|
62,334
|
|
|
$
|
24,544
|
|
|
$
|
164,024
|
|
Average loans
|
|
$
|
10,351,770
|
|
|
$
|
22,063,015
|
|
|
$
|
—
|
|
|
$
|
32,414,785
|
|
Average deposits
|
|
$
|
25,048,532
|
|
|
$
|
8,020,698
|
|
|
$
|
1,854,146
|
|
|
$
|
34,923,376
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Change
|
|||||||||
|
|
|
$
|
|
%
|
||||||||||
|
|
(Unaudited)
|
|
|
|
|
|
|
|||||||
ASSETS
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
|
$
|
3,080,042
|
|
|
$
|
3,261,149
|
|
|
$
|
(181,107
|
)
|
|
(6
|
)%
|
Interest-bearing deposits with banks
|
|
293,509
|
|
|
196,161
|
|
|
97,348
|
|
|
50
|
%
|
|||
Resale agreements
|
|
860,000
|
|
|
860,000
|
|
|
—
|
|
|
—
|
%
|
|||
AFS debt securities, at fair value (amortized cost of $3,660,413 in 2020)
|
|
3,695,943
|
|
|
3,317,214
|
|
|
378,729
|
|
|
11
|
%
|
|||
Restricted equity securities, at cost
|
|
78,745
|
|
|
78,580
|
|
|
165
|
|
|
0
|
%
|
|||
Loans held-for-sale
|
|
1,594
|
|
|
434
|
|
|
1,160
|
|
|
267
|
%
|
|||
Loans held-for-investment (net of allowance for loan losses of $557,003 in 2020 and $358,287 in 2019)
|
|
35,336,390
|
|
|
34,420,252
|
|
|
916,138
|
|
|
3
|
%
|
|||
Investments in qualified affordable housing partnerships, net
|
|
198,653
|
|
|
207,037
|
|
|
(8,384
|
)
|
|
(4
|
)%
|
|||
Investments in tax credit and other investments, net
|
|
268,330
|
|
|
254,140
|
|
|
14,190
|
|
|
6
|
%
|
|||
Premises and equipment
|
|
115,393
|
|
|
118,364
|
|
|
(2,971
|
)
|
|
(3
|
)%
|
|||
Goodwill
|
|
465,697
|
|
|
465,697
|
|
|
—
|
|
|
—
|
%
|
|||
Operating lease right-of-use assets
|
|
101,381
|
|
|
99,973
|
|
|
1,408
|
|
|
1
|
%
|
|||
Other assets
|
|
1,452,868
|
|
|
917,095
|
|
|
535,773
|
|
|
58
|
%
|
|||
TOTAL
|
|
$
|
45,948,545
|
|
|
$
|
44,196,096
|
|
|
$
|
1,752,449
|
|
|
4
|
%
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing
|
|
$
|
11,833,397
|
|
|
$
|
11,080,036
|
|
|
$
|
753,361
|
|
|
7
|
%
|
Interest-bearing
|
|
26,853,561
|
|
|
26,244,223
|
|
|
609,338
|
|
|
2
|
%
|
|||
Total deposits
|
|
38,686,958
|
|
|
37,324,259
|
|
|
1,362,699
|
|
|
4
|
%
|
|||
Short-term borrowings
|
|
66,924
|
|
|
28,669
|
|
|
38,255
|
|
|
133
|
%
|
|||
FHLB advances
|
|
646,336
|
|
|
745,915
|
|
|
(99,579
|
)
|
|
(13
|
)%
|
|||
Repurchase agreements
|
|
450,000
|
|
|
200,000
|
|
|
250,000
|
|
|
125
|
%
|
|||
Long-term debt and finance lease liabilities
|
|
152,162
|
|
|
152,270
|
|
|
(108
|
)
|
|
(0)%
|
|
|||
Operating lease liabilities
|
|
109,356
|
|
|
108,083
|
|
|
1,273
|
|
|
1
|
%
|
|||
Accrued expenses and other liabilities
|
|
933,824
|
|
|
619,283
|
|
|
314,541
|
|
|
51
|
%
|
|||
Total liabilities
|
|
41,045,560
|
|
|
39,178,479
|
|
|
1,867,081
|
|
|
5
|
%
|
|||
STOCKHOLDERS’ EQUITY
|
|
4,902,985
|
|
|
5,017,617
|
|
|
(114,632
|
)
|
|
(2
|
)%
|
|||
TOTAL
|
|
$
|
45,948,545
|
|
|
$
|
44,196,096
|
|
|
$
|
1,752,449
|
|
|
4
|
%
|
|
•
|
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)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
50,606
|
|
|
$
|
51,428
|
|
|
$
|
177,215
|
|
|
$
|
176,422
|
|
U.S. government agency and U.S. government-sponsored enterprise debt securities
|
|
511,176
|
|
|
518,408
|
|
|
584,275
|
|
|
581,245
|
|
||||
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
|
|
1,993,653
|
|
|
2,050,315
|
|
|
1,598,261
|
|
|
1,607,368
|
|
||||
Municipal securities
|
|
300,551
|
|
|
309,626
|
|
|
101,621
|
|
|
102,302
|
|
||||
Non-agency mortgage-backed securities
|
|
149,955
|
|
|
149,248
|
|
|
133,439
|
|
|
135,098
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
10,963
|
|
|
11,250
|
|
|
11,149
|
|
||||
Foreign bonds (1)
|
|
283,822
|
|
|
284,521
|
|
|
354,481
|
|
|
354,172
|
|
||||
Asset-backed securities
|
|
65,400
|
|
|
61,556
|
|
|
66,106
|
|
|
64,752
|
|
||||
CLOs
|
|
294,000
|
|
|
259,878
|
|
|
294,000
|
|
|
284,706
|
|
||||
Total AFS debt securities
|
|
$
|
3,660,413
|
|
|
$
|
3,695,943
|
|
|
$
|
3,320,648
|
|
|
$
|
3,317,214
|
|
|
|
||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||
|
Amortized
Cost |
|
Fair
Value
|
|
Yield (1)
|
|
Amortized
Cost |
|
Fair
Value
|
|
Yield (1)
|
|||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after one year through five years
|
|
$
|
50,606
|
|
|
$
|
51,428
|
|
|
1.26
|
%
|
|
$
|
177,215
|
|
|
$
|
176,422
|
|
|
1.33
|
%
|
U.S. government agency and U.S. government- sponsored enterprise debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
288,314
|
|
|
289,634
|
|
|
2.86
|
%
|
|
328,628
|
|
|
326,341
|
|
|
2.62
|
%
|
||||
Maturing after one year through five years
|
|
161,997
|
|
|
165,790
|
|
|
2.69
|
%
|
|
158,490
|
|
|
156,431
|
|
|
2.69
|
%
|
||||
Maturing after five years through ten years
|
|
27,469
|
|
|
28,310
|
|
|
2.51
|
%
|
|
44,908
|
|
|
45,189
|
|
|
2.38
|
%
|
||||
Maturing after ten years
|
|
33,396
|
|
|
34,674
|
|
|
2.87
|
%
|
|
52,249
|
|
|
53,284
|
|
|
2.78
|
%
|
||||
Total
|
|
511,176
|
|
|
518,408
|
|
|
2.79
|
%
|
|
584,275
|
|
|
581,245
|
|
|
2.63
|
%
|
||||
U.S. government agency and U.S. government- sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
67
|
|
|
67
|
|
|
2.65
|
%
|
|
112
|
|
|
113
|
|
|
2.72
|
%
|
||||
Maturing after one year through five years
|
|
21,784
|
|
|
22,664
|
|
|
2.57
|
%
|
|
23,144
|
|
|
23,289
|
|
|
2.29
|
%
|
||||
Maturing after five years through ten years
|
|
100,151
|
|
|
104,356
|
|
|
2.70
|
%
|
|
85,970
|
|
|
88,261
|
|
|
2.72
|
%
|
||||
Maturing after ten years
|
|
1,871,651
|
|
|
1,923,228
|
|
|
2.57
|
%
|
|
1,489,035
|
|
|
1,495,705
|
|
|
2.66
|
%
|
||||
Total
|
|
1,993,653
|
|
|
2,050,315
|
|
|
2.58
|
%
|
|
1,598,261
|
|
|
1,607,368
|
|
|
2.66
|
%
|
||||
Municipal securities (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
61,375
|
|
|
61,670
|
|
|
2.74
|
%
|
|
37,136
|
|
|
37,291
|
|
|
2.67
|
%
|
||||
Maturing after one year through five years
|
|
15,569
|
|
|
15,803
|
|
|
2.50
|
%
|
|
18,699
|
|
|
18,948
|
|
|
2.52
|
%
|
||||
Maturing after five years through ten years
|
|
112,946
|
|
|
119,391
|
|
|
2.87
|
%
|
|
12,151
|
|
|
12,451
|
|
|
3.15
|
%
|
||||
Maturing after ten years
|
|
110,661
|
|
|
112,762
|
|
|
3.44
|
%
|
|
33,635
|
|
|
33,612
|
|
|
2.63
|
%
|
||||
Total
|
|
300,551
|
|
|
309,626
|
|
|
3.04
|
%
|
|
101,621
|
|
|
102,302
|
|
|
2.69
|
%
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
7,920
|
|
|
7,859
|
|
|
2.82
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Maturing after one year through five years
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
7,920
|
|
|
7,914
|
|
|
3.78
|
%
|
||||
Maturing after ten years
|
|
142,035
|
|
|
141,389
|
|
|
3.13
|
%
|
|
125,519
|
|
|
127,184
|
|
|
3.21
|
%
|
||||
Total
|
|
149,955
|
|
|
149,248
|
|
|
3.11
|
%
|
|
133,439
|
|
|
135,098
|
|
|
3.24
|
%
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
1,250
|
|
|
1,250
|
|
|
5.01
|
%
|
|
1,250
|
|
|
1,262
|
|
|
5.20
|
%
|
||||
Maturing after one year through five years
|
|
10,000
|
|
|
9,713
|
|
|
4.00
|
%
|
|
10,000
|
|
|
9,887
|
|
|
4.00
|
%
|
||||
Total
|
|
11,250
|
|
|
10,963
|
|
|
4.11
|
%
|
|
11,250
|
|
|
11,149
|
|
|
4.13
|
%
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
229,466
|
|
|
229,981
|
|
|
2.04
|
%
|
|
354,481
|
|
|
354,172
|
|
|
2.22
|
%
|
||||
Maturing after one year through five years
|
|
54,356
|
|
|
54,540
|
|
|
2.29
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Total
|
|
283,822
|
|
|
284,521
|
|
|
2.08
|
%
|
|
354,481
|
|
|
354,172
|
|
|
2.22
|
%
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
65,400
|
|
|
61,556
|
|
|
2.16
|
%
|
|
66,106
|
|
|
64,752
|
|
|
2.65
|
%
|
||||
CLOs:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
294,000
|
|
|
259,878
|
|
|
3.07
|
%
|
|
294,000
|
|
|
284,706
|
|
|
3.08
|
%
|
||||
Total AFS debt securities
|
|
$
|
3,660,413
|
|
|
$
|
3,695,943
|
|
|
2.65
|
%
|
|
$
|
3,320,648
|
|
|
$
|
3,317,214
|
|
|
2.60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total aggregated by maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
$
|
588,392
|
|
|
$
|
590,461
|
|
|
2.53
|
%
|
|
$
|
721,607
|
|
|
$
|
719,179
|
|
|
2.43
|
%
|
Maturing after one year through five years
|
|
314,312
|
|
|
319,938
|
|
|
2.42
|
%
|
|
395,468
|
|
|
392,891
|
|
|
2.11
|
%
|
||||
Maturing after five years through ten years
|
|
240,566
|
|
|
252,057
|
|
|
2.76
|
%
|
|
143,029
|
|
|
145,901
|
|
|
2.65
|
%
|
||||
Maturing after ten years
|
|
2,517,143
|
|
|
2,533,487
|
|
|
2.69
|
%
|
|
2,060,544
|
|
|
2,059,243
|
|
|
2.76
|
%
|
||||
Total AFS debt securities
|
|
$
|
3,660,413
|
|
|
$
|
3,695,943
|
|
|
2.65
|
%
|
|
$
|
3,320,648
|
|
|
$
|
3,317,214
|
|
|
2.60
|
%
|
|
(1)
|
Weighted-average yields are computed based on amortized cost balances.
|
(2)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
|
|||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
|||||||||||
|
Amount (1)
|
|
%
|
|
Amount (1)
|
|
%
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
C&I
|
|
$
|
12,590,764
|
|
|
35
|
%
|
|
$
|
12,150,931
|
|
|
35
|
%
|
|
CRE:
|
|
|
|
|
|
|
|
|
|
||||||
CRE
|
|
10,682,242
|
|
|
30
|
%
|
|
10,278,448
|
|
|
30
|
%
|
|||
Multifamily residential
|
|
2,902,601
|
|
|
8
|
%
|
|
2,856,374
|
|
|
8
|
%
|
|||
Construction and land
|
|
606,209
|
|
|
2
|
%
|
|
628,499
|
|
|
2
|
%
|
|||
Total CRE
|
|
14,191,052
|
|
|
40
|
%
|
|
13,763,321
|
|
|
40
|
%
|
|||
Total commercial
|
|
26,781,816
|
|
|
75
|
%
|
|
25,914,252
|
|
|
75
|
%
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|||||||
Single-family residential
|
|
7,403,723
|
|
|
20
|
%
|
|
7,108,590
|
|
|
20
|
%
|
|||
HELOCs
|
|
1,452,862
|
|
|
4
|
%
|
|
1,472,783
|
|
|
4
|
%
|
|||
Total residential mortgage
|
|
8,856,585
|
|
|
24
|
%
|
|
8,581,373
|
|
|
24
|
%
|
|||
Other consumer
|
|
254,992
|
|
|
1
|
%
|
|
282,914
|
|
|
1
|
%
|
|||
Total consumer
|
—
|
|
9,111,577
|
|
|
25
|
%
|
|
8,864,287
|
|
|
25
|
%
|
||
Total loans held-for-investment
|
|
$
|
35,893,393
|
|
|
100
|
%
|
|
$
|
34,778,539
|
|
|
100
|
%
|
|
Allowance for loan losses
|
|
(557,003
|
)
|
|
|
|
(358,287
|
)
|
|
|
|||||
Loans held-for-sale (2)
|
|
1,594
|
|
|
|
|
434
|
|
|
|
|||||
Total loans, net
|
|
$
|
35,337,984
|
|
|
|
|
$
|
34,420,686
|
|
|
|
|||
|
(1)
|
On January 1, 2020, the Company adopted ASU 2016-13. Total loans include net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(50.3) million and $(43.2) million as of March 31, 2020 and December 31, 2019, respectively.
|
(2)
|
Consists of single-family residential loans as of both March 31, 2020 and December 31, 2019.
|
|
||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Property types:
|
|
|
|
|
|
|
|
|
||||||
Retail
|
|
$
|
3,398,714
|
|
|
24
|
%
|
|
$
|
3,300,106
|
|
|
24
|
%
|
Multifamily
|
|
2,902,601
|
|
|
20
|
%
|
|
2,856,374
|
|
|
21
|
%
|
||
Offices
|
|
2,496,013
|
|
|
18
|
%
|
|
2,375,087
|
|
|
17
|
%
|
||
Industrial
|
|
2,240,375
|
|
|
16
|
%
|
|
2,163,769
|
|
|
16
|
%
|
||
Hospitality
|
|
1,970,060
|
|
|
14
|
%
|
|
1,865,031
|
|
|
14
|
%
|
||
Construction and land
|
|
606,209
|
|
|
4
|
%
|
|
628,499
|
|
|
4
|
%
|
||
Other
|
|
577,080
|
|
|
4
|
%
|
|
574,455
|
|
|
4
|
%
|
||
Total CRE loans
|
|
$
|
14,191,052
|
|
|
100
|
%
|
|
$
|
13,763,321
|
|
|
100
|
%
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total CRE
|
|
%
|
|||||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Southern California
|
|
$
|
5,676,895
|
|
|
|
|
$
|
1,755,651
|
|
|
|
|
$
|
269,590
|
|
|
|
|
$
|
7,702,136
|
|
|
|
||||
Northern California
|
|
2,476,697
|
|
|
|
|
629,468
|
|
|
|
|
179,652
|
|
|
|
|
3,285,817
|
|
|
|
||||||||
California
|
|
8,153,592
|
|
|
76
|
%
|
|
2,385,119
|
|
|
82
|
%
|
|
449,242
|
|
|
74
|
%
|
|
10,987,953
|
|
|
77
|
%
|
||||
New York
|
|
689,547
|
|
|
6
|
%
|
|
123,989
|
|
|
4
|
%
|
|
84,042
|
|
|
14
|
%
|
|
897,578
|
|
|
6
|
%
|
||||
Texas
|
|
662,119
|
|
|
6
|
%
|
|
129,458
|
|
|
5
|
%
|
|
8,525
|
|
|
1
|
%
|
|
800,102
|
|
|
6
|
%
|
||||
Washington
|
|
308,878
|
|
|
3
|
%
|
|
65,521
|
|
|
2
|
%
|
|
31,332
|
|
|
5
|
%
|
|
405,731
|
|
|
3
|
%
|
||||
Arizona
|
|
162,359
|
|
|
2
|
%
|
|
11,946
|
|
|
0
|
%
|
|
—
|
|
|
—
|
%
|
|
174,305
|
|
|
1
|
%
|
||||
Nevada
|
|
103,696
|
|
|
1
|
%
|
|
138,766
|
|
|
5
|
%
|
|
39
|
|
|
0
|
%
|
|
242,501
|
|
|
2
|
%
|
||||
Other markets
|
|
602,051
|
|
|
6
|
%
|
|
47,802
|
|
|
2
|
%
|
|
33,029
|
|
|
6
|
%
|
|
682,882
|
|
|
5
|
%
|
||||
Total loans
|
|
$
|
10,682,242
|
|
|
100
|
%
|
|
$
|
2,902,601
|
|
|
100
|
%
|
|
$
|
606,209
|
|
|
100
|
%
|
|
$
|
14,191,052
|
|
|
100
|
%
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total CRE
|
|
%
|
|||||||||||||
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)
|
|
March 31, 2020
|
|||||||||||||||||||
|
Single-
Family
Residential
|
|
%
|
|
HELOCs
|
|
%
|
|
Total Residential Mortgage
|
|
%
|
||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Southern California
|
|
$
|
3,168,482
|
|
|
|
|
$
|
699,131
|
|
|
|
|
$
|
3,867,613
|
|
|
|
|||
Northern California
|
|
1,058,009
|
|
|
|
|
312,227
|
|
|
|
|
1,370,236
|
|
|
|
||||||
California
|
|
4,226,491
|
|
|
57
|
%
|
|
1,011,358
|
|
|
69
|
%
|
|
5,237,849
|
|
|
59
|
%
|
|||
New York
|
|
1,838,248
|
|
|
25
|
%
|
|
240,583
|
|
|
17
|
%
|
|
2,078,831
|
|
|
23
|
%
|
|||
Washington
|
|
623,223
|
|
|
8
|
%
|
|
132,146
|
|
|
9
|
%
|
|
755,369
|
|
|
9
|
%
|
|||
Massachusetts
|
|
237,897
|
|
|
3
|
%
|
|
30,848
|
|
|
2
|
%
|
|
268,745
|
|
|
3
|
%
|
|||
Texas
|
|
189,498
|
|
|
3
|
%
|
|
—
|
|
|
—
|
%
|
|
189,498
|
|
|
2
|
%
|
|||
Other markets
|
|
288,366
|
|
|
4
|
%
|
|
37,927
|
|
|
3
|
%
|
|
326,293
|
|
|
4
|
%
|
|||
Total
|
|
$
|
7,403,723
|
|
|
100
|
%
|
|
$
|
1,452,862
|
|
|
100
|
%
|
|
$
|
8,856,585
|
|
|
100
|
%
|
Lien priority:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First mortgage
|
|
$
|
7,403,722
|
|
|
100
|
%
|
|
$
|
1,216,294
|
|
|
84
|
%
|
|
$
|
8,620,016
|
|
|
97
|
%
|
Junior lien mortgage
|
|
1
|
|
|
0
|
%
|
|
236,568
|
|
|
16
|
%
|
|
236,569
|
|
|
3
|
%
|
|||
Total
|
|
$
|
7,403,723
|
|
|
100
|
%
|
|
$
|
1,452,862
|
|
|
100
|
%
|
|
$
|
8,856,585
|
|
|
100
|
%
|
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31, 2019
|
|||||||||||||||||||
|
Single-
Family Residential |
|
%
|
|
HELOCs
|
|
%
|
|
Total Residential Mortgage
|
|
%
|
||||||||||
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
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||
|
Commercial
|
|
Consumer
|
Total
|
||||||||||||||||
|
C&I
|
|
CRE
|
|
Residential Mortgage
|
|||||||||||||||
|
|
CRE
|
|
Multifamily
Residential
|
|
Single-Family
Residential |
|
|||||||||||||
Loans purchased
|
|
$
|
130,583
|
|
|
$
|
—
|
|
|
$
|
1,513
|
|
|
$
|
1,084
|
|
|
$
|
133,180
|
|
Loans transferred from held-for-investment to held-for-sale
|
|
$
|
102,973
|
|
|
$
|
7,250
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
110,223
|
|
Loans sold:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
$
|
102,973
|
|
|
$
|
7,250
|
|
|
$
|
—
|
|
|
$
|
4,642
|
|
|
$
|
114,865
|
|
Net gains
|
|
$
|
235
|
|
|
$
|
665
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
950
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Commercial
|
|
Consumer
|
Total
|
||||||||||||||||
|
C&I
|
|
CRE
|
|
Residential Mortgage
|
|||||||||||||||
|
|
CRE
|
|
Multifamily
Residential
|
|
Single-Family
Residential |
|
|||||||||||||
Loans purchased
|
|
$
|
107,194
|
|
|
$
|
—
|
|
|
$
|
4,218
|
|
|
$
|
36,402
|
|
|
$
|
147,814
|
|
Loans transferred from held-for-investment to held-for-sale
|
|
$
|
75,573
|
|
|
$
|
16,655
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92,228
|
|
Write-downs to allowance for loan losses
|
|
$
|
(73
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(73
|
)
|
Loans sold:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
$
|
57,409
|
|
|
$
|
16,655
|
|
|
$
|
—
|
|
|
$
|
2,442
|
|
|
$
|
76,506
|
|
Net gains
|
|
$
|
131
|
|
|
$
|
753
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
915
|
|
Purchased loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
$
|
18,237
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,237
|
|
|
(1)
|
Net gains on sales of purchased loans in the first quarter of 2019 were insignificant.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Change
|
|||||||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
$
|
|
%
|
||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing demand
|
|
$
|
11,833,397
|
|
|
30
|
%
|
|
$
|
11,080,036
|
|
|
30
|
%
|
|
$
|
753,361
|
|
|
7
|
%
|
Interest-bearing checking
|
|
5,467,508
|
|
|
14
|
%
|
|
5,200,755
|
|
|
14
|
%
|
|
266,753
|
|
|
5
|
%
|
|||
Money market
|
|
9,302,246
|
|
|
24
|
%
|
|
8,711,964
|
|
|
23
|
%
|
|
590,282
|
|
|
7
|
%
|
|||
Savings
|
|
2,117,274
|
|
|
6
|
%
|
|
2,117,196
|
|
|
6
|
%
|
|
78
|
|
|
0
|
%
|
|||
Time deposits
|
|
9,966,533
|
|
|
26
|
%
|
|
10,214,308
|
|
|
27
|
%
|
|
(247,775
|
)
|
|
(2
|
)%
|
|||
Total deposits
|
|
$
|
38,686,958
|
|
|
100
|
%
|
|
$
|
37,324,259
|
|
|
100
|
%
|
|
$
|
1,362,699
|
|
|
4
|
%
|
Other Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Short-term borrowings
|
|
$
|
66,924
|
|
|
|
|
$
|
28,669
|
|
|
|
|
$
|
38,255
|
|
|
133
|
%
|
||
FHLB advances
|
|
646,336
|
|
|
|
|
745,915
|
|
|
|
|
(99,579
|
)
|
|
(13
|
)%
|
|||||
Repurchase agreements
|
|
450,000
|
|
|
|
|
200,000
|
|
|
|
|
250,000
|
|
|
125
|
%
|
|||||
Long-term debt
|
|
147,169
|
|
|
|
|
147,101
|
|
|
|
|
68
|
|
|
0
|
%
|
|||||
Total other funds
|
|
$
|
1,310,429
|
|
|
|
|
$
|
1,121,685
|
|
|
|
|
$
|
188,744
|
|
|
17
|
%
|
||
Total sources of funds
|
|
$
|
39,997,387
|
|
|
|
|
$
|
38,445,944
|
|
|
|
|
$
|
1,551,443
|
|
|
4
|
%
|
||
|
|
||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
Amount
|
|
% of Total
Consolidated
Assets
|
|
Amount
|
|
% of Total
Consolidated
Assets
|
|||||||
Hong Kong branch:
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
294,054
|
|
|
1
|
%
|
|
$
|
511,639
|
|
|
1
|
%
|
AFS debt securities (1)
|
|
$
|
204,942
|
|
|
0
|
%
|
|
$
|
204,948
|
|
|
0
|
%
|
Loans held-for-investment (2)
|
|
$
|
542,697
|
|
|
1
|
%
|
|
$
|
573,305
|
|
|
1
|
%
|
Total assets
|
|
$
|
1,132,054
|
|
|
2
|
%
|
|
$
|
1,361,652
|
|
|
3
|
%
|
Subsidiary bank in China:
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
544,860
|
|
|
1
|
%
|
|
$
|
548,930
|
|
|
1
|
%
|
Interest-bearing deposits with banks
|
|
$
|
219,517
|
|
|
0
|
%
|
|
$
|
142,587
|
|
|
0
|
%
|
Loans held-for-investment (2)
|
|
$
|
745,553
|
|
|
2
|
%
|
|
$
|
819,110
|
|
|
2
|
%
|
Total assets
|
|
$
|
1,562,179
|
|
|
3
|
%
|
|
$
|
1,520,627
|
|
|
3
|
%
|
|
|
||||||||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|||||||||||
|
Amount
|
|
% of Total
Consolidated
Revenue |
|
Amount
|
|
% of Total
Consolidated
Revenue |
|||||||
Hong Kong branch:
|
|
|
|
|
|
|
|
|
||||||
Total revenue
|
|
$
|
6,929
|
|
|
2
|
%
|
|
$
|
8,897
|
|
|
2
|
%
|
Subsidiary bank in China:
|
|
|
|
|
|
|
|
|
||||||
Total revenue
|
|
$
|
7,179
|
|
|
2
|
%
|
|
$
|
7,084
|
|
|
2
|
%
|
|
|
|||||||||||||||||||||
|
|
Basel III Capital Rules
|
|||||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
Minimum
Regulatory
Requirements
|
|
Fully
Phased-in Minimum Regulatory Requirements (2) |
|
Well-
Capitalized
Requirements
|
||||||||||||
|
Company
|
|
East
West Bank |
|
Company
|
|
East
West Bank |
|
|
|
|||||||||||
Risk-Based Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
CET1 capital
|
|
12.4
|
%
|
|
12.3
|
%
|
|
12.9
|
%
|
|
12.9
|
%
|
|
4.5
|
%
|
|
7.0
|
%
|
|
6.5
|
%
|
Tier 1 capital
|
|
12.4
|
%
|
|
12.3
|
%
|
|
12.9
|
%
|
|
12.9
|
%
|
|
6.0
|
%
|
|
8.5
|
%
|
|
8.0
|
%
|
Total capital
|
|
13.9
|
%
|
|
13.4
|
%
|
|
14.4
|
%
|
|
13.9
|
%
|
|
8.0
|
%
|
|
10.5
|
%
|
|
10.0
|
%
|
Tier 1 leverage (1)
|
|
10.2
|
%
|
|
10.1
|
%
|
|
10.3
|
%
|
|
10.3
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
(1)
|
The Tier 1 leverage well-capitalized requirement applies to the Bank only because there is no Tier 1 leverage ratio component in the definition of a well-capitalized bank-holding company.
|
(2)
|
As of January 1, 2019, the 2.5% capital conservation buffer above the minimum capital ratios is required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonus payments to executive officers.
|
|
||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
Nonaccrual Loans
|
|
Non-PCI
Nonaccrual Loans
|
|||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
$
|
89,079
|
|
|
$
|
74,835
|
|
CRE:
|
|
|
|
|
||||
CRE
|
|
6,298
|
|
|
16,441
|
|
||
Multifamily residential
|
|
803
|
|
|
819
|
|
||
Total CRE
|
|
7,101
|
|
|
17,260
|
|
||
Consumer:
|
|
|
|
|
||||
Residential mortgage:
|
|
|
|
|
||||
Single-family residential
|
|
17,536
|
|
|
14,865
|
|
||
HELOCs
|
|
10,446
|
|
|
10,742
|
|
||
Total residential mortgage
|
|
27,982
|
|
|
25,607
|
|
||
Other consumer
|
|
2,506
|
|
|
2,517
|
|
||
Total nonaccrual loans
|
|
126,668
|
|
|
120,219
|
|
||
|
|
|
|
|
||||
OREO, net
|
|
19,504
|
|
|
125
|
|
||
Other nonperforming assets
|
|
4,758
|
|
|
1,167
|
|
||
Total nonperforming assets
|
|
$
|
150,930
|
|
|
$
|
121,511
|
|
Nonperforming assets to total assets
|
|
0.33
|
%
|
|
0.27
|
%
|
||
Nonaccrual loans to loans held-for-investment
|
|
0.35
|
%
|
|
0.35
|
%
|
||
Allowance for loan losses to nonaccrual loans
|
|
439.73
|
%
|
|
298.03
|
%
|
||
Annualized quarterly net charge-offs to average loans held-for-investment
|
|
0.01
|
%
|
|
0.10
|
%
|
||
TDR included in nonperforming loans
|
|
$
|
34,364
|
|
|
$
|
54,566
|
|
|
|
|||||||||||||||||||||
($ in thousands)
|
|
Total Accruing Past Due Loans (1)
|
|
Change
|
|
Percentage of Total Loans Outstanding
|
|||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
C&I
|
|
$
|
18,385
|
|
|
$
|
48,155
|
|
|
$
|
(29,770
|
)
|
|
(62
|
)%
|
|
0.15
|
%
|
|
0.40
|
%
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CRE
|
|
6,986
|
|
|
24,807
|
|
|
(17,821
|
)
|
|
(72
|
)%
|
|
0.07
|
%
|
|
0.24
|
%
|
|||
Multifamily residential
|
|
876
|
|
|
729
|
|
|
147
|
|
|
20
|
%
|
|
0.03
|
%
|
|
0.03
|
%
|
|||
Total CRE
|
|
7,862
|
|
|
25,536
|
|
|
(17,674
|
)
|
|
(69
|
)%
|
|
0.06
|
%
|
|
0.19
|
%
|
|||
Total commercial
|
|
26,247
|
|
|
73,691
|
|
|
(47,444
|
)
|
|
(64
|
)%
|
|
0.10
|
%
|
|
0.29
|
%
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Single-family residential
|
|
58,663
|
|
|
20,517
|
|
|
38,146
|
|
|
186
|
%
|
|
0.79
|
%
|
|
0.29
|
%
|
|||
HELOCs
|
|
14,634
|
|
|
7,064
|
|
|
7,570
|
|
|
107
|
%
|
|
1.01
|
%
|
|
0.48
|
%
|
|||
Total residential mortgage
|
|
73,297
|
|
|
27,581
|
|
|
45,716
|
|
|
166
|
%
|
|
0.83
|
%
|
|
0.32
|
%
|
|||
Other consumer
|
|
63
|
|
|
11
|
|
|
52
|
|
|
473
|
%
|
|
0.02
|
%
|
|
0.00
|
%
|
|||
Total consumer
|
|
73,360
|
|
|
27,592
|
|
|
45,768
|
|
|
166
|
%
|
|
0.81
|
%
|
|
0.31
|
%
|
|||
Total
|
|
$
|
99,607
|
|
|
$
|
101,283
|
|
|
$
|
(1,676
|
)
|
|
(2
|
)%
|
|
0.28
|
%
|
|
0.29
|
%
|
|
(1)
|
There were no accruing loans past due 90 days or more as of both March 31, 2020 and December 31, 2019.
|
|
||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
30,186
|
|
|
$
|
31,956
|
|
|
$
|
39,208
|
|
|
$
|
41,014
|
|
CRE:
|
|
|
|
|
|
|
|
|
||||||||
CRE
|
|
5,133
|
|
|
385
|
|
|
5,177
|
|
|
11,503
|
|
||||
Multifamily residential
|
|
3,320
|
|
|
222
|
|
|
3,644
|
|
|
229
|
|
||||
Construction and land
|
|
19,691
|
|
|
—
|
|
|
19,691
|
|
|
—
|
|
||||
Total CRE
|
|
28,144
|
|
|
607
|
|
|
28,512
|
|
|
11,732
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
6,764
|
|
|
1,085
|
|
|
7,346
|
|
|
1,098
|
|
||||
HELOCs
|
|
2,814
|
|
|
716
|
|
|
2,832
|
|
|
722
|
|
||||
Total residential mortgage
|
|
9,578
|
|
|
1,801
|
|
|
10,178
|
|
|
1,820
|
|
||||
Total TDRs
|
|
$
|
67,908
|
|
|
$
|
34,364
|
|
|
$
|
77,898
|
|
|
$
|
54,566
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Residential Mortgage
|
|
Other
Consumer
|
|
||||||||||||||||||||||||
|
|
CRE
|
|
Multi-Family
Residential
|
|
Construction
and Land
|
|
Single-
Family
Residential
|
|
HELOCs
|
|
|
||||||||||||||||||||
Allowance for loan losses, December 31, 2019
|
|
$
|
238,376
|
|
|
$
|
40,509
|
|
|
$
|
22,826
|
|
|
$
|
19,404
|
|
|
$
|
28,527
|
|
|
$
|
5,265
|
|
|
$
|
3,380
|
|
|
$
|
358,287
|
|
Impact of ASU 2016-13 adoption
|
|
74,237
|
|
|
72,169
|
|
|
(8,112
|
)
|
|
(9,889
|
)
|
|
(3,670
|
)
|
|
(1,798
|
)
|
|
2,221
|
|
|
125,158
|
|
||||||||
Allowance for loan losses, January 1, 2020
|
|
312,613
|
|
|
112,678
|
|
|
14,714
|
|
|
9,515
|
|
|
24,857
|
|
|
3,467
|
|
|
5,601
|
|
|
483,445
|
|
||||||||
Provision for (reversal of ) credit losses
|
|
60,618
|
|
|
11,435
|
|
|
1,281
|
|
|
1,482
|
|
|
1,700
|
|
|
412
|
|
|
(2,272
|
)
|
|
74,656
|
|
||||||||
Gross charge-offs
|
|
(11,977
|
)
|
|
(954
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(12,957
|
)
|
||||||||
Gross recoveries
|
|
1,575
|
|
|
9,660
|
|
|
535
|
|
|
21
|
|
|
265
|
|
|
2
|
|
|
1
|
|
|
12,059
|
|
||||||||
Total net charge-offs
|
|
(10,402
|
)
|
|
8,706
|
|
|
535
|
|
|
21
|
|
|
265
|
|
|
2
|
|
|
(25
|
)
|
|
(898
|
)
|
||||||||
Foreign currency translation adjustments
|
|
(200
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(200
|
)
|
||||||||
Allowance for loan losses, March 31, 2020
|
|
$
|
362,629
|
|
|
$
|
132,819
|
|
|
$
|
16,530
|
|
|
$
|
11,018
|
|
|
$
|
26,822
|
|
|
$
|
3,881
|
|
|
$
|
3,304
|
|
|
$
|
557,003
|
|
|
|
||||
($ in thousands)
|
|
Three Months Ended
March 31, 2020 |
||
Unfunded credit facilities
|
|
|
||
Allowance for unfunded credit commitments, December 31, 2019
|
|
$
|
11,158
|
|
Impact of ASU 2016-13 adoption
|
|
10,457
|
|
|
Allowance for unfunded credit commitments, January 1, 2020
|
|
21,615
|
|
|
Reversal of credit losses
|
|
(786
|
)
|
|
Allowance for unfunded credit commitments, March 31, 2020
|
|
$
|
20,829
|
|
|
|
|
||
Total provision for credit losses
|
|
$
|
73,870
|
|
|
|
||||
($ in thousands)
|
|
Three Months Ended
March 31, 2019 |
||
Allowance for loan losses, beginning of period
|
|
$
|
311,322
|
|
Provision for loan losses
|
(a)
|
20,640
|
|
|
Gross charge-offs:
|
|
|
||
Commercial:
|
|
|
||
C&I
|
|
(17,244
|
)
|
|
Consumer:
|
|
|
||
Other consumer
|
|
(14
|
)
|
|
Total gross charge-offs
|
|
(17,258
|
)
|
|
Gross recoveries:
|
|
|
||
Commercial:
|
|
|
||
C&I
|
|
2,251
|
|
|
CRE:
|
|
|
||
CRE
|
|
222
|
|
|
Multifamily residential
|
|
281
|
|
|
Construction and land
|
|
63
|
|
|
Total CRE
|
|
566
|
|
|
Consumer:
|
|
|
||
Residential mortgage:
|
|
|
||
Single-family residential
|
|
2
|
|
|
HELOCs
|
|
2
|
|
|
Total residential mortgage
|
|
4
|
|
|
Total gross recoveries
|
|
2,821
|
|
|
Net charge-offs
|
|
(14,437
|
)
|
|
Foreign currency translation adjustments
|
|
369
|
|
|
Allowance for loan losses, end of period
|
|
$
|
317,894
|
|
|
|
|
||
Unfunded credit facilities
|
|
|
||
Allowance for unfunded credit commitments, beginning of period
|
|
$
|
12,566
|
|
Provision for credit losses
|
(b)
|
1,939
|
|
|
Allowance for unfunded credit commitments, end of period
|
|
$
|
14,505
|
|
|
|
|
||
Total provision for credit losses
|
(a) + (b)
|
$
|
22,579
|
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Average loans held-for-investment
|
|
$
|
35,153,522
|
|
|
$
|
32,414,467
|
|
Loans held-for-investment
|
|
$
|
35,893,393
|
|
|
$
|
32,863,286
|
|
Allowance for loan losses on loans to loans held-for-investment
|
|
1.55
|
%
|
|
0.97
|
%
|
||
Annualized net charge-offs to average loans held-for-investment
|
|
0.01
|
%
|
|
0.18
|
%
|
||
|
|
||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||
|
Allowance
Allocation
|
|
% of
Allowance to
Total
Allowance
|
|
Loans as % of
Total Loans
|
|
Allowance
Allocation
|
|
% of
Allowance to
Total
Allowance
|
|
Loans as % of
Total Loans
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
362,629
|
|
|
65
|
%
|
|
35
|
%
|
|
$
|
238,376
|
|
|
67
|
%
|
|
35
|
%
|
CRE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CRE
|
|
132,819
|
|
|
24
|
%
|
|
30
|
%
|
|
40,509
|
|
|
11
|
%
|
|
30
|
%
|
||
Multifamily residential
|
|
16,530
|
|
|
3
|
%
|
|
8
|
%
|
|
22,826
|
|
|
6
|
%
|
|
8
|
%
|
||
Construction and land
|
|
11,018
|
|
|
2
|
%
|
|
2
|
%
|
|
19,404
|
|
|
5
|
%
|
|
2
|
%
|
||
Total CRE
|
|
160,367
|
|
|
29
|
%
|
|
40
|
%
|
|
82,739
|
|
|
22
|
%
|
|
40
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
26,822
|
|
|
4
|
%
|
|
20
|
%
|
|
28,527
|
|
|
8
|
%
|
|
20
|
%
|
||
HELOCs
|
|
3,881
|
|
|
1
|
%
|
|
4
|
%
|
|
5,265
|
|
|
2
|
%
|
|
4
|
%
|
||
Total residential mortgage
|
|
30,703
|
|
|
5
|
%
|
|
24
|
%
|
|
33,792
|
|
|
10
|
%
|
|
24
|
%
|
||
Other consumer
|
|
3,304
|
|
|
1
|
%
|
|
1
|
%
|
|
3,380
|
|
|
1
|
%
|
|
1
|
%
|
||
Total
|
|
$
|
557,003
|
|
|
100
|
%
|
|
100
|
%
|
|
$
|
358,287
|
|
|
100
|
%
|
|
100
|
%
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
Encumbered
|
|
Unencumbered
|
|
Total
|
|
Encumbered
|
|
Unencumbered
|
|
Total
|
|||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
3,080,042
|
|
|
$
|
3,080,042
|
|
|
$
|
—
|
|
|
$
|
3,261,149
|
|
|
$
|
3,261,149
|
|
Interest-bearing deposits with banks
|
|
—
|
|
|
293,509
|
|
|
293,509
|
|
|
—
|
|
|
196,161
|
|
|
196,161
|
|
||||||
Short-term resale agreements
|
|
—
|
|
|
400,000
|
|
|
400,000
|
|
|
—
|
|
|
400,000
|
|
|
400,000
|
|
||||||
AFS debt securities
|
|
742,410
|
|
|
2,953,533
|
|
|
3,695,943
|
|
|
479,432
|
|
|
2,837,782
|
|
|
3,317,214
|
|
||||||
Total
|
|
$
|
742,410
|
|
|
$
|
6,727,084
|
|
|
$
|
7,469,494
|
|
|
$
|
479,432
|
|
|
$
|
6,695,092
|
|
|
$
|
7,174,524
|
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Net cash provided by operating activities
|
|
$
|
91,703
|
|
|
$
|
139,241
|
|
Net cash used in investing activities
|
|
(1,405,330
|
)
|
|
(118,681
|
)
|
||
Net cash provided by financing activities
|
|
1,119,028
|
|
|
749,370
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
13,492
|
|
|
14,018
|
|
||
Net (decrease) increase in cash and cash equivalents
|
|
(181,107
|
)
|
|
783,948
|
|
||
Cash and cash equivalents, beginning of period
|
|
3,261,149
|
|
|
3,001,377
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
3,080,042
|
|
|
$
|
3,785,325
|
|
|
|
|
|
|
|
||||||
Change in Interest Rates
(Basis Points) |
|
Net Interest Income Volatility (1)
|
||||
|
March 31, 2020
|
|
December 31, 2019
|
|||
+200
|
|
12.8
|
%
|
|
13.2
|
%
|
+100
|
|
5.7
|
%
|
|
6.7
|
%
|
-100
|
|
(0.4
|
)%
|
|
(5.5
|
)%
|
-200
|
|
(0.7
|
)%
|
|
(8.7
|
)%
|
|
(1)
|
The percentage change represents net interest income over 12 months in a stable interest rate environment versus net interest income in the various rate scenarios.
|
|
||||||
Change in Interest Rates
(Basis Points) |
|
Net Interest Income Volatility (1)
|
||||
|
March 31, 2020
|
|
December 31, 2019
|
|||
+200 Rate Ramp
|
|
5.0
|
%
|
|
6.0
|
%
|
+100 Rate Ramp
|
|
2.2
|
%
|
|
3.0
|
%
|
-100 Rate Ramp
|
|
(0.3
|
)%
|
|
(2.6
|
)%
|
-200 Rate Ramp
|
|
(0.4
|
)%
|
|
(5.1
|
)%
|
|
(1)
|
The percentage change represents net interest income under a gradual non-parallel shift in even quarterly increments over 12 months.
|
|
|
|
|
|
||
Change in Interest Rates
(Basis Points) |
|
EVE Volatility (1)
|
||||
|
March 31, 2020
|
|
December 31, 2019
|
|||
+200
|
|
11.2
|
%
|
|
7.0
|
%
|
+100
|
|
6.5
|
%
|
|
3.6
|
%
|
-100
|
|
(0.9
|
)%
|
|
(1.4
|
)%
|
-200
|
|
(5.8
|
)%
|
|
(3.5
|
)%
|
|
|
|
|
|
(1)
|
The percentage change represents net portfolio value of the Company in a stable interest rate environment versus net portfolio value in the various rate scenarios.
|
•
|
fair value of financial instruments;
|
•
|
allowance for credit losses;
|
•
|
goodwill impairment; and
|
•
|
income taxes.
|
|
||||||||||
($ and shares in thousands, except per share data)
|
|
|
Three Months Ended March 31,
|
|||||||
|
2020
|
|
2019
|
|||||||
Net income
|
|
(a)
|
|
$
|
144,824
|
|
|
$
|
164,024
|
|
Add: Impairment charge related to DC Solar (1)
|
|
|
|
—
|
|
|
6,978
|
|
||
Tax effect of adjustments (2)
|
|
|
|
—
|
|
|
(2,063
|
)
|
||
Non-GAAP net income
|
|
(b)
|
|
$
|
144,824
|
|
|
$
|
168,939
|
|
|
|
|
|
|
|
|
||||
Diluted weighted-average number of shares outstanding
|
|
|
|
145,285
|
|
|
145,921
|
|
||
|
|
|
|
|
|
|
||||
Diluted EPS
|
|
|
|
$
|
1.00
|
|
|
$
|
1.12
|
|
Diluted EPS impact of impairment charge related to DC Solar, net of tax
|
|
|
|
—
|
|
|
0.04
|
|
||
Non-GAAP diluted EPS
|
|
|
|
$
|
1.00
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
||||
Average total assets
|
|
(c)
|
|
$
|
44,755,509
|
|
|
$
|
40,738,404
|
|
Average stockholders’ equity
|
|
(d)
|
|
$
|
5,022,005
|
|
|
$
|
4,537,301
|
|
ROA (3)
|
|
(a)/(c)
|
|
1.30
|
%
|
|
1.63
|
%
|
||
Non-GAAP ROA (3)
|
|
(b)/(c)
|
|
1.30
|
%
|
|
1.68
|
%
|
||
ROE (3)
|
|
(a)/(d)
|
|
11.60
|
%
|
|
14.66
|
%
|
||
Non-GAAP ROE (3)
|
|
(b)/(d)
|
|
11.60
|
%
|
|
15.10
|
%
|
||
|
(1)
|
Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.
|
(2)
|
Applied statutory rates of 28.35% for the first quarter of 2020 and 29.56% for the first quarter of 2019.
|
(3)
|
Annualized.
|
|
||||||||||
($ in thousands)
|
|
|
Three Months Ended March 31,
|
|||||||
|
2020
|
|
2019
|
|||||||
Net interest income before provision for credit losses
|
|
(a)
|
|
$
|
362,707
|
|
|
$
|
362,461
|
|
Total noninterest income
|
|
|
|
54,049
|
|
|
42,131
|
|
||
Total revenue
|
|
(b)
|
|
$
|
416,756
|
|
|
$
|
404,592
|
|
|
|
|
|
|
|
|
||||
Total noninterest expense
|
|
(c)
|
|
$
|
178,876
|
|
|
$
|
186,922
|
|
Less: Amortization of tax credit and other investments
|
|
|
|
(17,325
|
)
|
|
(24,905
|
)
|
||
Amortization of core deposit intangibles
|
|
|
|
(953
|
)
|
|
(1,174
|
)
|
||
Non-GAAP noninterest expense
|
|
(d)
|
|
$
|
160,598
|
|
|
$
|
160,843
|
|
|
|
|
|
|
|
|
||||
Efficiency ratio
|
|
(c)/(b)
|
|
42.92
|
%
|
|
46.20
|
%
|
||
Non-GAAP efficiency ratio
|
|
(d)/(b)
|
|
38.54
|
%
|
|
39.75
|
%
|
||
|
|
||||||||||||||
($ and shares in thousands, except per share data) |
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
|||||||
Stockholders’ equity
|
|
(a)
|
|
$
|
4,902,985
|
|
|
$
|
5,017,617
|
|
|
$
|
4,591,930
|
|
Less: Goodwill
|
|
|
|
(465,697
|
)
|
|
(465,697
|
)
|
|
(465,697
|
)
|
|||
Other intangible assets (1)
|
|
|
|
(14,769
|
)
|
|
(16,079
|
)
|
|
(21,109
|
)
|
|||
Non-GAAP tangible common equity
|
|
(b)
|
|
$
|
4,422,519
|
|
|
$
|
4,535,841
|
|
|
$
|
4,105,124
|
|
|
|
|
|
|
|
|
|
|
||||||
Number of common shares at period-end
|
|
(c)
|
|
141,435
|
|
|
145,625
|
|
|
145,501
|
|
|||
Non-GAAP tangible common equity per share
|
|
(b)/(c)
|
|
$
|
31.27
|
|
|
$
|
31.15
|
|
|
$
|
28.21
|
|
|
(1)
|
Includes core deposit intangibles and mortgage servicing assets.
|
•
|
the impact of disease pandemics, such as the outbreak and worldwide spread of COVID-19, on the Company, its operations and its customers and employees; and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may precipitate or exacerbate one or more of the below-mentioned and/or other risks, and significantly disrupt or prevent the Company from operating its business in the ordinary course for an extended period;
|
•
|
changes in the U.S. economy, including an economic slowdowns or recession, inflation, deflation, employment levels, rate of growth and general business conditions;
|
•
|
fluctuations in the Company’s stock price;
|
•
|
government intervention in the financial system, including changes in government interest rate policies;
|
•
|
changes in income tax laws and regulations;
|
•
|
the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the 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 from 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 SOFR selected as the preferred alternative reference rate to the 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;
|
•
|
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, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the SEC, the Consumer Financial Protection Bureau and the California Department of Business Oversight - Division of Financial Institutions;
|
•
|
impact of the Dodd-Frank Act on the Company’s business, business practices, cost of operations and executive compensation;
|
•
|
heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers;
|
•
|
impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from the Company’s interactions with business partners, counterparties, service providers and other third parties;
|
•
|
impact of regulatory enforcement actions;
|
•
|
changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions;
|
•
|
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 foreign currency exchange rates;
|
•
|
a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of OTTI on securities held in the Company’s AFS debt 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.
|
|
|
|
|
|
|
|
|
|
||||||
Period
|
|
Total Number of
Shares
Repurchased (1)
|
|
Average Price
Paid per Share of
Common Stock
|
|
Total Number of
Shares of Common
Stock Purchased
as Part of Publicly
Announced Plans
or Programs
|
|
Approximate
Dollar Value of
Shares that May
Yet Be Purchased
Under the Plans or
Programs
($ in millions) (2)
|
||||||
January 1, 2020 - January 31, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
500.0
|
|
February 1, 2020 - February 29, 2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500.0
|
|
||
March 1, 2020 - March 31, 2020
|
|
4,471,682
|
|
|
32.64
|
|
|
4,471,682
|
|
|
354.0
|
|
||
Total
|
|
4,471,682
|
|
|
$
|
32.64
|
|
|
4,471,682
|
|
|
$
|
354.0
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes activity of common stock pursuant to various stock compensation plans and agreements totaling $7.6 million.
|
(2)
|
On March 3, 2020, the Company’s Board of Directors authorized the repurchase of up to $500.0 million of the Company’s common stock. This $500.0 million repurchase authorization is inclusive of the Company’s $100.0 million stock repurchase authorization previously outstanding. The share repurchase authorization has no expiration date.
|
Exhibit No.
|
|
Exhibit Description
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.INS
|
|
The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
|
|
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document. Filed herewith.
|
|
|
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document. Filed herewith.
|
|
|
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document. Filed herewith.
|
|
|
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document. Filed herewith.
|
|
|
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document. Filed herewith.
|
|
|
|
104
|
|
Cover Page Interactive Data (formatted as Inline XBRL and contained in Exhibit 101 filed herewith). Filed herewith.
|
|
|
|
AFS
|
Available-for-sale
|
LTV
|
Loan-to-value
|
ALCO
|
Asset/Liability Committee
|
MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
AOCI
|
Accumulated other comprehensive income (loss)
|
MMBTU
|
Million British thermal unit
|
ARRC
|
Alternative Reference Rates Committee
|
Moody's
|
Moody’s Investors Service
|
ASC
|
Accounting Standards Codification
|
NAV
|
Net Asset Value
|
ASU
|
Accounting Standards Update
|
OREO
|
Other real estate owned
|
C&I
|
Commercial and industrial
|
OTTI
|
Other-than-temporary impairment
|
CARES Act
|
The Coronavirus Aid, Relief, and Economic Security Act
|
PCD
|
Purchased financial assets with credit deterioration
|
CECL
|
Current expected credit loss
|
PCI
|
Purchased credit impaired
|
CET1
|
Common Equity Tier 1
|
PD
|
Probability of default
|
CLO
|
Collateralized loan obligation
|
PPP
|
Paycheck Protection Program
|
CME
|
Chicago Mercantile Exchange
|
RMB
|
Chinese Renminbi
|
CRA
|
Community Reinvestment Act
|
ROA
|
Return on average assets
|
CRE
|
Commercial real estate
|
ROE
|
Return on average equity
|
EPS
|
Earnings per share
|
RPA
|
Credit risk participation agreement
|
ERM
|
Enterprise Risk Management
|
RSU
|
Restricted stock unit
|
EVE
|
Economic value of equity
|
S&P
|
Standard & Poor's
|
FHLB
|
Federal Home Loan Bank
|
SBLC
|
Standby letter of credit
|
Fitch
|
Fitch Ratings
|
SEC
|
U.S. Securities and Exchange Commission
|
FRB
|
Federal Reserve Bank of San Francisco
|
SOFR
|
Secured Overnight Financing Rate
|
FTP
|
Funds transfer pricing
|
TDR
|
Troubled debt restructuring
|
GAAP
|
Generally accepted accounting principles
|
U.S.
|
United States
|
HELOC
|
Home equity lines of credit
|
USD
|
U.S. dollar
|
LCH
|
London Clearing House
|
VIE
|
Variable interest entity
|
LGD
|
Loss given default
|
WHO
|
World Health Organization
|
LIBOR
|
London Interbank Offered Rate
|
|
|
Dated:
|
May 8, 2020
|
|
||
|
|
|
||
|
|
EAST WEST BANCORP, INC.
(Registrant)
|
||
|
|
|
||
|
|
By
|
/s/ IRENE H. OH
|
|
|
|
|
Irene H. Oh
|
|
|
|
|
Executive Vice President and
Chief Financial Officer
|
1.
|
Section 3.1 (Term) of the Agreement is hereby modified in its entirety to read as follows: This Agreement and employment under this Agreement shall terminate on March 4, 2023 unless extended by Company.
|
2.
|
Except as expressly agreed to herein, the Employment Agreement between the parties shall remain in force and effect.
|
|
EAST WEST BANCORP, INC.
|
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
|
|
|
/s/ DOMINIC NG
|
|
Employee: Dominic Ng
|
1.
|
Section 3.1 (Term) of the Agreement is hereby modified in its entirety to read as follows: This Agreement and employment under this Agreement shall terminate on March 4, 2023 unless extended by Company.
|
2.
|
Except as expressly agreed to herein, the Employment Agreement between the parties shall remain in force and effect.
|
|
EAST WEST BANCORP, INC.
|
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
|
|
|
/s/ DOUGLAS P. KRAUSE
|
|
Employee: Douglas P. Krause
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of East West Bancorp, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ DOMINIC NG
|
|
Dominic Ng
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of East West Bancorp, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ IRENE H. OH
|
|
Irene H. Oh
|
|
Chief Financial Officer
|
a.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
b.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ DOMINIC NG
|
|
Dominic Ng
|
|
Chief Executive Officer
|
a.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
b.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ IRENE H. OH
|
|
Irene H. Oh
|
|
Chief Financial Officer
|