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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.01 per share
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BANC
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New York Stock Exchange
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Depositary Shares each representing a 1/40th interest in a share of 7.375% Non-Cumulative Perpetual Preferred Stock, Series D
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BANC PRD
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New York Stock Exchange
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Depositary Shares each representing a 1/40th interest in a share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E
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BANC PRE
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New York Stock Exchange
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Page
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Item 1 –
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Item 2 –
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Item 3 –
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Item 4 –
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Item 1 –
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Item 1A –
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Item 2 –
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Item 3 –
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Item 4 –
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Item 5 –
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Item 6 –
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i.
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an ongoing investigation by the SEC as well as any related litigation or other litigation may result in adverse findings, reputational damage, the imposition of sanctions, increased costs, the diversion of management time and resources, and other negative consequences;
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ii.
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the costs and effects of litigation generally, including legal fees and other expenses, settlements and judgments;
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iii.
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the risk that our performance may be adversely affected by the CEO transition we have recently undergone;
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iv.
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the risk that the benefits we realize from exiting the third party mortgage origination and brokered single-family residential lending business will be less than anticipated and that the costs we incur from exiting that business will be greater than anticipated;
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v.
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the risk that we will not be successful in the implementation of our capital utilization strategy and our other strategies for transitioning to a traditional community bank;
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vi.
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risks that any merger and acquisition transactions of the Company may disrupt current plans and operations and lead to difficulties in customer and employee retention, risks that the costs, fees, expenses and charges related to these transactions could be significantly higher than anticipated and risks that the expected revenues, cost savings, synergies and other benefits of these transactions might not be realized to the extent anticipated, within the anticipated timetables, or at all;
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vii.
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the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including but not limited to the effectiveness of our underwriting practices and the risk of fraud, any of which credit and operational risks may lead to increased loan and lease delinquencies, losses and nonperforming assets in our loan and lease portfolio, and may result in our allowance for loan losses not being adequate to cover actual losses and require us to materially increase our loan and lease loss reserves;
|
viii.
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the transition to a new accounting standard adopted by the Financial Accounting Standards Board, referred to as Current Expected Credit Loss, which will require financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and provide for the expected credit losses as allowances for loan losses;
|
ix.
|
the quality and composition of our securities portfolio;
|
x.
|
changes in general economic conditions, either nationally or in our market areas, or changes in financial markets;
|
xi.
|
continuation of or changes in the short-term interest rate environment, changes in the levels of general interest rates, volatility in the interest rate environment, the relative differences between short- and long-term interest rates, deposit interest rates, our net interest margin and funding sources;
|
xii.
|
fluctuations in the demand for loans, the number of unsold homes and other properties and fluctuations in commercial and residential real estate values in our market area;
|
xiii.
|
our ability to develop and maintain a strong core deposit base or other low cost funding sources necessary to fund our activities;
|
xiv.
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results of examinations of us by regulatory authorities and the possibility that any such regulatory authority may, among other things, limit our business activities, require us to change our business mix, increase our allowance for loan losses, write-down asset values, or increase our capital levels, or affect our ability to borrow funds or maintain or increase deposits, any of which could adversely affect our liquidity and earnings;
|
xv.
|
legislative or regulatory changes that adversely affect our business, including, without limitation, changes in tax laws and policies and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes;
|
xvi.
|
our ability to control operating costs and expenses;
|
xvii.
|
staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges;
|
xviii.
|
the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses;
|
xix.
|
errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation;
|
xx.
|
the network and computer systems on which we depend could fail or experience a security breach;
|
xxi.
|
our ability to attract and retain key members of our senior management team;
|
xxii.
|
increased competitive pressures among financial services companies;
|
xxiii.
|
changes in consumer spending, borrowing and saving habits;
|
xxiv.
|
the effects of severe weather, natural disasters, acts of war or terrorism and other external events on our business;
|
xxv.
|
the ability of key third-party providers to perform their obligations to us;
|
xxvi.
|
changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board or their application to our business, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods;
|
xxvii.
|
share price volatility and reputational risks, related to, among other things, speculative trading and certain traders shorting our common shares and attempting to generate negative publicity about us; and
|
xxviii.
|
other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in this report and from time to time in other documents that we file with or furnish to the SEC, including, without limitation, the risks described under “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018 and under “Part II. Item 1A. Risk Factors” of this Quarterly Report on Form 10-Q.
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
26,283
|
|
|
$
|
21,875
|
|
Interest-earning deposits in financial institutions
|
287,567
|
|
|
369,717
|
|
||
Total cash and cash equivalents
|
313,850
|
|
|
391,592
|
|
||
Securities available-for-sale, at fair value
|
1,167,687
|
|
|
1,992,500
|
|
||
Loans held-for-sale, carried at fair value
|
23,794
|
|
|
7,690
|
|
||
Loans held-for-sale, carried at lower of cost or fair value
|
573,926
|
|
|
426
|
|
||
Loans receivable
|
6,719,570
|
|
|
7,700,873
|
|
||
Allowance for loan losses
|
(59,523
|
)
|
|
(62,192
|
)
|
||
Loans receivable, net
|
6,660,047
|
|
|
7,638,681
|
|
||
Federal Home Loan Bank and other bank stock, at cost
|
76,373
|
|
|
68,094
|
|
||
Premises, equipment, and capital leases, net
|
129,227
|
|
|
129,394
|
|
||
Bank owned life insurance
|
108,132
|
|
|
107,027
|
|
||
Operating lease right of use assets
|
24,118
|
|
|
—
|
|
||
Goodwill
|
37,144
|
|
|
37,144
|
|
||
Investments in alternative energy partnerships, net
|
26,633
|
|
|
28,988
|
|
||
Deferred income taxes, net
|
42,798
|
|
|
49,404
|
|
||
Income tax receivable
|
2,547
|
|
|
2,695
|
|
||
Other intangible assets, net
|
5,105
|
|
|
6,346
|
|
||
Other assets
|
168,550
|
|
|
150,596
|
|
||
Assets of discontinued operations
|
—
|
|
|
19,490
|
|
||
Total assets
|
$
|
9,359,931
|
|
|
$
|
10,630,067
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Noninterest-bearing deposits
|
$
|
993,745
|
|
|
$
|
1,023,360
|
|
Interest-bearing deposits
|
5,298,545
|
|
|
6,893,284
|
|
||
Total deposits
|
6,292,290
|
|
|
7,916,644
|
|
||
Advances from Federal Home Loan Bank
|
1,825,000
|
|
|
1,520,000
|
|
||
Long term debt, net
|
173,257
|
|
|
173,174
|
|
||
Operating lease liabilities
|
25,457
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
80,383
|
|
|
74,715
|
|
||
Total liabilities
|
8,396,387
|
|
|
9,684,533
|
|
||
Commitments and contingent liabilities
|
|
|
|
||||
Preferred stock
|
231,128
|
|
|
231,128
|
|
||
Common stock, $0.01 par value per share, 446,863,844 shares authorized; 51,981,149 shares issued and 50,397,769 shares outstanding at June 30, 2019; 51,755,398 shares issued and 50,172,018 shares outstanding at December 31, 2018
|
520
|
|
|
518
|
|
||
Class B non-voting non-convertible common stock, $0.01 par value per share, 3,136,156 shares authorized; 477,321 shares issued and outstanding at June 30, 2019 and 477,321 shares issued and outstanding at December 31, 2018
|
5
|
|
|
5
|
|
||
Additional paid-in capital
|
627,306
|
|
|
625,834
|
|
||
Retained earnings
|
146,039
|
|
|
140,952
|
|
||
Treasury stock, at cost (1,583,380 shares at June 30, 2019 and December 31, 2018)
|
(28,786
|
)
|
|
(28,786
|
)
|
||
Accumulated other comprehensive loss, net
|
(12,668
|
)
|
|
(24,117
|
)
|
||
Total stockholders’ equity
|
963,544
|
|
|
945,534
|
|
||
Total liabilities and stockholders’ equity
|
$
|
9,359,931
|
|
|
$
|
10,630,067
|
|
|
Three Months Ended
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
June 30,
2019 |
|
March 31,
2019 |
|
June 30,
2018 |
|
2019
|
|
2018
|
||||||||||
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, including fees
|
$
|
89,159
|
|
|
$
|
90,558
|
|
|
$
|
81,307
|
|
|
$
|
179,717
|
|
|
$
|
156,219
|
|
Securities
|
12,457
|
|
|
17,841
|
|
|
21,455
|
|
|
30,298
|
|
|
43,086
|
|
|||||
Other interest-earning assets
|
2,424
|
|
|
2,313
|
|
|
2,423
|
|
|
4,737
|
|
|
4,587
|
|
|||||
Total interest and dividend income
|
104,040
|
|
|
110,712
|
|
|
105,185
|
|
|
214,752
|
|
|
203,892
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
28,598
|
|
|
31,443
|
|
|
20,315
|
|
|
60,041
|
|
|
37,110
|
|
|||||
Federal Home Loan Bank advances
|
8,289
|
|
|
9,081
|
|
|
9,539
|
|
|
17,370
|
|
|
16,931
|
|
|||||
Securities sold under repurchase agreements
|
16
|
|
|
18
|
|
|
211
|
|
|
34
|
|
|
961
|
|
|||||
Long term debt and other interest-bearing liabilities
|
2,357
|
|
|
2,362
|
|
|
2,356
|
|
|
4,719
|
|
|
4,688
|
|
|||||
Total interest expense
|
39,260
|
|
|
42,904
|
|
|
32,421
|
|
|
82,164
|
|
|
59,690
|
|
|||||
Net interest income
|
64,780
|
|
|
67,808
|
|
|
72,764
|
|
|
132,588
|
|
|
144,202
|
|
|||||
(Reversal of) provision for loan losses
|
(1,987
|
)
|
|
2,512
|
|
|
2,653
|
|
|
525
|
|
|
22,152
|
|
|||||
Net interest income after provision for loan losses
|
66,767
|
|
|
65,296
|
|
|
70,111
|
|
|
132,063
|
|
|
122,050
|
|
|||||
Noninterest income
|
|
|
|
|
|
|
|
|
|
||||||||||
Customer service fees
|
1,434
|
|
|
1,515
|
|
|
1,491
|
|
|
2,949
|
|
|
3,083
|
|
|||||
Loan servicing income
|
121
|
|
|
118
|
|
|
948
|
|
|
239
|
|
|
3,259
|
|
|||||
Income from bank owned life insurance
|
580
|
|
|
525
|
|
|
533
|
|
|
1,105
|
|
|
1,066
|
|
|||||
Net gain on sale of securities available-for-sale
|
—
|
|
|
208
|
|
|
278
|
|
|
208
|
|
|
5,519
|
|
|||||
Net gain on sale of loans
|
2,826
|
|
|
1,553
|
|
|
821
|
|
|
4,379
|
|
|
780
|
|
|||||
Net loss on sale of mortgage servicing rights
|
—
|
|
|
—
|
|
|
(155
|
)
|
|
—
|
|
|
(2,450
|
)
|
|||||
Other (loss) income
|
(7,251
|
)
|
|
2,376
|
|
|
4,145
|
|
|
(4,875
|
)
|
|
5,386
|
|
|||||
Total noninterest (loss) income
|
(2,290
|
)
|
|
6,295
|
|
|
8,061
|
|
|
4,005
|
|
|
16,643
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits
|
27,506
|
|
|
28,439
|
|
|
29,440
|
|
|
55,945
|
|
|
60,555
|
|
|||||
Occupancy and equipment
|
7,955
|
|
|
7,686
|
|
|
7,883
|
|
|
15,641
|
|
|
15,570
|
|
|||||
Professional fees (reimbursement)
|
(2,903
|
)
|
|
11,041
|
|
|
6,303
|
|
|
8,138
|
|
|
15,480
|
|
|||||
Outside service fees
|
489
|
|
|
403
|
|
|
413
|
|
|
892
|
|
|
2,959
|
|
|||||
Data processing
|
1,672
|
|
|
1,496
|
|
|
1,678
|
|
|
3,168
|
|
|
3,334
|
|
|||||
Advertising and promotion
|
2,048
|
|
|
2,057
|
|
|
2,864
|
|
|
4,105
|
|
|
6,141
|
|
|||||
Regulatory assessments
|
2,136
|
|
|
2,482
|
|
|
2,196
|
|
|
4,618
|
|
|
4,288
|
|
|||||
(Gain) loss on investments in alternative energy partnerships
|
(355
|
)
|
|
1,950
|
|
|
1,808
|
|
|
1,595
|
|
|
1,774
|
|
|||||
Reversal of provision for loan repurchases
|
(61
|
)
|
|
(116
|
)
|
|
(218
|
)
|
|
(177
|
)
|
|
(2,006
|
)
|
|||||
Amortization of intangible assets
|
621
|
|
|
620
|
|
|
827
|
|
|
1,241
|
|
|
1,670
|
|
|||||
Restructuring (reversal) expense
|
(158
|
)
|
|
2,795
|
|
|
3,983
|
|
|
2,637
|
|
|
3,983
|
|
|||||
All other expense
|
4,637
|
|
|
2,982
|
|
|
5,362
|
|
|
7,619
|
|
|
8,591
|
|
|||||
Total noninterest expense
|
43,587
|
|
|
61,835
|
|
|
62,539
|
|
|
105,422
|
|
|
122,339
|
|
|||||
Income from continuing operations before income taxes
|
20,890
|
|
|
9,756
|
|
|
15,633
|
|
|
30,646
|
|
|
16,354
|
|
|||||
Income tax expense (benefit)
|
4,308
|
|
|
2,719
|
|
|
1,779
|
|
|
7,027
|
|
|
(4,574
|
)
|
|||||
Income from continuing operations
|
16,582
|
|
|
7,037
|
|
|
13,854
|
|
|
23,619
|
|
|
20,928
|
|
|||||
Income from discontinued operations before income taxes (including net gain on disposal of $0, $0 and $272 for the three months ended June 30, 2019, March 31, 2019 and 2018, respectively, and $0 and $1,275 for the six months ended June 30, 2019 and 2018, respectively)
|
—
|
|
|
—
|
|
|
1,281
|
|
|
—
|
|
|
3,325
|
|
|||||
Income tax expense
|
—
|
|
|
—
|
|
|
355
|
|
|
—
|
|
|
915
|
|
|||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
926
|
|
|
—
|
|
|
2,410
|
|
|||||
Net income
|
16,582
|
|
|
7,037
|
|
|
14,780
|
|
|
23,619
|
|
|
23,338
|
|
|||||
Preferred stock dividends
|
4,308
|
|
|
4,308
|
|
|
5,113
|
|
|
8,616
|
|
|
10,226
|
|
|||||
Income allocated to participating securities
|
271
|
|
|
—
|
|
|
86
|
|
|
153
|
|
|
—
|
|
|||||
Participating securities dividends
|
94
|
|
|
202
|
|
|
203
|
|
|
295
|
|
|
406
|
|
|||||
Net income available to common stockholders
|
$
|
11,909
|
|
|
$
|
2,527
|
|
|
$
|
9,378
|
|
|
$
|
14,555
|
|
|
$
|
12,706
|
|
Basic earnings per common share
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.23
|
|
|
$
|
0.05
|
|
|
$
|
0.17
|
|
|
$
|
0.29
|
|
|
$
|
0.20
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.05
|
|
|||||
Net income
|
$
|
0.23
|
|
|
$
|
0.05
|
|
|
$
|
0.19
|
|
|
$
|
0.29
|
|
|
$
|
0.25
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.23
|
|
|
$
|
0.05
|
|
|
$
|
0.16
|
|
|
$
|
0.29
|
|
|
$
|
0.20
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.05
|
|
|||||
Net income
|
$
|
0.23
|
|
|
$
|
0.05
|
|
|
$
|
0.18
|
|
|
$
|
0.29
|
|
|
$
|
0.25
|
|
Basic earnings per class B common share
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.23
|
|
|
$
|
0.05
|
|
|
$
|
0.17
|
|
|
$
|
0.29
|
|
|
$
|
0.20
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.05
|
|
|||||
Net income
|
$
|
0.23
|
|
|
$
|
0.05
|
|
|
$
|
0.19
|
|
|
$
|
0.29
|
|
|
$
|
0.25
|
|
Diluted earnings per class B common share
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.23
|
|
|
$
|
0.05
|
|
|
$
|
0.17
|
|
|
$
|
0.29
|
|
|
$
|
0.20
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.05
|
|
|||||
Net income
|
$
|
0.23
|
|
|
$
|
0.05
|
|
|
$
|
0.19
|
|
|
$
|
0.29
|
|
|
$
|
0.25
|
|
|
Three Months Ended
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
June 30,
2019 |
|
March 31,
2019 |
|
June 30,
2018 |
|
2019
|
|
2018
|
||||||||||
Net income
|
$
|
16,582
|
|
|
$
|
7,037
|
|
|
$
|
14,780
|
|
|
$
|
23,619
|
|
|
$
|
23,338
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) arising during the period
|
5,423
|
|
|
6,173
|
|
|
(7,631
|
)
|
|
11,596
|
|
|
(21,192
|
)
|
|||||
Reclassification adjustment for gain included in net income
|
—
|
|
|
(147
|
)
|
|
(197
|
)
|
|
(147
|
)
|
|
(3,901
|
)
|
|||||
Total change in unrealized gain (loss) on available-for-sale securities
|
5,423
|
|
|
6,026
|
|
|
(7,828
|
)
|
|
11,449
|
|
|
(25,093
|
)
|
|||||
Total other comprehensive income (loss)
|
5,423
|
|
|
6,026
|
|
|
(7,828
|
)
|
|
11,449
|
|
|
(25,093
|
)
|
|||||
Comprehensive income (loss)
|
$
|
22,005
|
|
|
$
|
13,063
|
|
|
$
|
6,952
|
|
|
$
|
35,068
|
|
|
$
|
(1,755
|
)
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Stockholders' Equity
|
|||||||||||||||||||
|
|
Voting
|
|
Class B Non-Voting
|
|
|
|
|
|
|||||||||||||||||||||||
Balance at December 31, 2017
|
$
|
269,071
|
|
|
$
|
517
|
|
|
$
|
5
|
|
|
$
|
621,435
|
|
|
$
|
144,839
|
|
|
$
|
(28,786
|
)
|
|
$
|
5,227
|
|
|
$
|
1,012,308
|
|
|
Reclassification of stranded tax effects to retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(496
|
)
|
|
—
|
|
|
496
|
|
|
—
|
|
|||||||||
Adjusted Balance at December 31, 2017
|
269,071
|
|
|
517
|
|
|
5
|
|
|
621,435
|
|
|
144,343
|
|
|
(28,786
|
)
|
|
5,723
|
|
|
1,012,308
|
|
|||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,558
|
|
|
—
|
|
|
—
|
|
|
8,558
|
|
|||||||||
Other comprehensive loss, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,265
|
)
|
|
(17,265
|
)
|
|||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
2,087
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,087
|
|
|||||||||
Restricted stock surrendered due to employee tax liability
|
—
|
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|||||||||
Shares purchased under the Dividend Reinvestment Plan
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||||||
Stock appreciation right dividend equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(203
|
)
|
|
—
|
|
|
—
|
|
|
(203
|
)
|
|||||||||
Dividends declared ($0.13 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,503
|
)
|
|
—
|
|
|
—
|
|
|
(6,503
|
)
|
|||||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,113
|
)
|
|
—
|
|
|
—
|
|
|
(5,113
|
)
|
|||||||||
Balance at March 31, 2018
|
$
|
269,071
|
|
|
$
|
517
|
|
|
$
|
5
|
|
|
$
|
623,483
|
|
|
$
|
141,008
|
|
|
$
|
(28,786
|
)
|
|
$
|
(11,542
|
)
|
|
$
|
993,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,780
|
|
|
—
|
|
|
—
|
|
|
14,780
|
|
|||||||||
Other comprehensive loss, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,828
|
)
|
|
(7,828
|
)
|
|||||||||
Issuance of common stock
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
1,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,788
|
|
|||||||||
Restricted stock surrendered due to employee tax liability
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1,973
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,974
|
)
|
|||||||||
Shares purchased under the Dividend Reinvestment Plan
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
(68
|
)
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||||||
Stock appreciation right dividend equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(203
|
)
|
|
—
|
|
|
—
|
|
|
(203
|
)
|
|||||||||
Dividends declared ($0.13 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,524
|
)
|
|
—
|
|
|
—
|
|
|
(6,524
|
)
|
|||||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,113
|
)
|
|
—
|
|
|
—
|
|
|
(5,113
|
)
|
|||||||||
Balance at June 30, 2018
|
$
|
269,071
|
|
|
$
|
517
|
|
|
$
|
4
|
|
|
$
|
623,372
|
|
|
$
|
143,880
|
|
|
$
|
(28,786
|
)
|
|
$
|
(19,370
|
)
|
—
|
|
$
|
988,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 31, 2018
|
$
|
231,128
|
|
|
$
|
518
|
|
|
$
|
5
|
|
|
$
|
625,834
|
|
|
$
|
140,952
|
|
|
$
|
(28,786
|
)
|
|
$
|
(24,117
|
)
|
|
$
|
945,534
|
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,037
|
|
|
—
|
|
|
—
|
|
|
7,037
|
|
|||||||||
Other comprehensive income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,026
|
|
|
6,026
|
|
|||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
853
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
853
|
|
|||||||||
Restricted stock surrendered due to employee tax liability
|
—
|
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
|||||||||
Shares purchased under the Dividend Reinvestment Plan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|||||||||
Stock appreciation right dividend equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(202
|
)
|
|
—
|
|
|
—
|
|
|
(202
|
)
|
|||||||||
Dividends declared ($0.13 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,486
|
)
|
|
—
|
|
|
—
|
|
|
(6,486
|
)
|
|||||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,308
|
)
|
|
—
|
|
|
—
|
|
|
(4,308
|
)
|
|||||||||
Balance at March 31, 2019
|
$
|
231,128
|
|
|
$
|
518
|
|
|
$
|
5
|
|
|
$
|
626,608
|
|
|
$
|
136,943
|
|
|
$
|
(28,786
|
)
|
|
$
|
(18,091
|
)
|
|
$
|
948,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,582
|
|
|
—
|
|
|
—
|
|
|
16,582
|
|
|||||||||
Other comprehensive income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,423
|
|
|
5,423
|
|
|||||||||
Issuance of common stock
|
—
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
1,497
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,497
|
|
|||||||||
Restricted stock surrendered due to employee tax liability
|
—
|
|
|
—
|
|
|
—
|
|
|
(797
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(797
|
)
|
|||||||||
Shares purchased under the Dividend Reinvestment Plan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|||||||||
Stock appreciation right dividend equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(94
|
)
|
|
—
|
|
|
—
|
|
|
(94
|
)
|
|||||||||
Dividends declared ($0.06 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,058
|
)
|
|
—
|
|
|
—
|
|
|
(3,058
|
)
|
|||||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,308
|
)
|
|
—
|
|
|
—
|
|
|
(4,308
|
)
|
|||||||||
Balance at June 30, 2019
|
$
|
231,128
|
|
|
$
|
520
|
|
|
$
|
5
|
|
|
$
|
627,306
|
|
|
$
|
146,039
|
|
|
$
|
(28,786
|
)
|
|
$
|
(12,668
|
)
|
|
$
|
963,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
23,619
|
|
|
$
|
23,338
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
||||
Provision for loan losses
|
525
|
|
|
22,152
|
|
||
(Reversal of) provision for unfunded loan commitments
|
(327
|
)
|
|
315
|
|
||
Reversal of provision for loan repurchases
|
(177
|
)
|
|
(2,006
|
)
|
||
Depreciation on premises and equipment
|
5,290
|
|
|
5,212
|
|
||
Amortization of intangible assets
|
1,241
|
|
|
1,670
|
|
||
Amortization of debt issuance cost
|
83
|
|
|
76
|
|
||
Net amortization of premium and discount on securities
|
649
|
|
|
530
|
|
||
Net accretion of deferred loan costs and fees
|
83
|
|
|
(228
|
)
|
||
Accretion of discounts on purchased loans
|
(125
|
)
|
|
(562
|
)
|
||
Deferred income tax expense (benefit)
|
1,841
|
|
|
(852
|
)
|
||
Bank owned life insurance income
|
(1,105
|
)
|
|
(1,066
|
)
|
||
Share-based compensation expense
|
2,350
|
|
|
3,875
|
|
||
Loss on interest rate swaps
|
9,583
|
|
|
—
|
|
||
Loss on investments in alternative energy partnerships
|
1,595
|
|
|
1,774
|
|
||
Impairment on capitalized software projects
|
835
|
|
|
498
|
|
||
Net revenue from mortgage banking activities
|
—
|
|
|
(288
|
)
|
||
Net gain on sale of loans
|
(4,379
|
)
|
|
(780
|
)
|
||
Net gain on sale of securities available for sale
|
(208
|
)
|
|
(5,519
|
)
|
||
Loss from change of fair value of mortgage servicing rights
|
—
|
|
|
1,241
|
|
||
Loss on sale or disposal of property and equipment
|
9
|
|
|
61
|
|
||
Loss on sale of mortgage servicing rights
|
—
|
|
|
2,450
|
|
||
Net gain on disposal of discontinued operations
|
—
|
|
|
(1,275
|
)
|
||
Repurchase of mortgage loans
|
(699
|
)
|
|
(11,091
|
)
|
||
Originations of other loans held-for-sale
|
—
|
|
|
(6,274
|
)
|
||
Proceeds from sales of and principal collected on loans held-for-sale from mortgage banking
|
3,849
|
|
|
15,417
|
|
||
Proceeds from sales of and principal collected on other loans held-for-sale
|
426
|
|
|
5,751
|
|
||
Change in accrued interest receivable and other assets
|
(13,403
|
)
|
|
5,117
|
|
||
Change in accrued interest payable and other liabilities
|
(5,341
|
)
|
|
(8,678
|
)
|
||
Net cash provided by operating activities
|
26,214
|
|
|
50,858
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Proceeds from sales of securities available-for-sale
|
782,019
|
|
|
392,556
|
|
||
Proceeds from maturities and calls of securities available-for-sale
|
38,029
|
|
|
220,400
|
|
||
Proceeds from principal repayments of securities available-for-sale
|
20,538
|
|
|
20,451
|
|
||
Purchases of securities available-for-sale
|
—
|
|
|
(247,530
|
)
|
||
Loan and lease originations and principal collections, net
|
(149,182
|
)
|
|
(602,103
|
)
|
||
Redemption of Federal Home Loan Bank stock
|
(38,039
|
)
|
|
13,642
|
|
||
Purchase of Federal Home Loan Bank and other bank stock
|
29,760
|
|
|
(13,725
|
)
|
||
Proceeds from sale of loans
|
558,021
|
|
|
211,459
|
|
||
Proceeds from sale of other real estate owned
|
551
|
|
|
1,484
|
|
||
Proceeds from sale of mortgage servicing rights
|
—
|
|
|
30,056
|
|
||
Proceeds from sale of premises and equipment
|
—
|
|
|
19
|
|
||
Purchases of premises and equipment
|
(5,967
|
)
|
|
(5,569
|
)
|
||
Payments of capital lease obligations
|
(259
|
)
|
|
(253
|
)
|
||
Funding of equity investment
|
(1,501
|
)
|
|
(1,864
|
)
|
||
Decrease in investments in alternative energy partnerships
|
760
|
|
|
1,027
|
|
||
Net cash provided by investing activities
|
1,234,730
|
|
|
20,050
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Net decrease in deposits
|
(1,624,354
|
)
|
|
(157,109
|
)
|
||
Net increase (decrease) in short-term Federal Home Loan Bank advances
|
305,000
|
|
|
(270,000
|
)
|
||
Proceeds from long-term Federal Home Loan Bank advances
|
—
|
|
|
380,000
|
|
||
Purchase of restricted stock surrendered due to employee tax liability
|
(876
|
)
|
|
(2,071
|
)
|
||
Dividend equivalents paid on stock appreciation rights
|
(296
|
)
|
|
(404
|
)
|
||
Dividends paid on preferred stock
|
(8,616
|
)
|
|
(10,226
|
)
|
||
Dividends paid on common stock
|
(9,544
|
)
|
|
(13,106
|
)
|
||
Net cash used in financing activities
|
(1,338,686
|
)
|
|
(72,916
|
)
|
||
Net change in cash and cash equivalents
|
(77,742
|
)
|
|
(2,008
|
)
|
||
Cash and cash equivalents at beginning of period
|
391,592
|
|
|
387,699
|
|
||
Cash and cash equivalents at end of period
|
$
|
313,850
|
|
|
$
|
385,691
|
|
Supplemental cash flow information
|
|
|
|
||||
Interest paid on deposits and borrowed funds
|
85,733
|
|
|
58,727
|
|
||
Income taxes paid
|
2,822
|
|
|
2,337
|
|
||
Income taxes refunds received
|
7
|
|
|
24
|
|
||
Supplemental disclosure of non-cash activities
|
|
|
|
||||
Transfer from loans to other real estate owned, net
|
276
|
|
|
434
|
|
||
Transfer of loans held-for-investment to loans held-for-sale
|
1,127,339
|
|
|
211,824
|
|
||
Equipment acquired under capital leases
|
40
|
|
|
21
|
|
||
Operating lease right of use assets recognized
|
27,421
|
|
|
—
|
|
||
Operating lease liabilities recognized
|
28,822
|
|
|
|
|||
Reclassification of stranded tax effects to retained earnings
|
—
|
|
|
496
|
|
||
Due on unsettled securities purchases
|
—
|
|
|
132,546
|
|
•
|
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
|
•
|
Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
|
|
|
|
|
Fair Value Measurement Level
|
||||||||||||
($ in thousands)
|
|
Carrying Value
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
SBA loan pools securities
|
|
$
|
853
|
|
|
$
|
—
|
|
|
$
|
853
|
|
|
$
|
—
|
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
429,347
|
|
|
—
|
|
|
429,347
|
|
|
—
|
|
||||
Non-agency residential mortgage-backed securities
|
|
285
|
|
|
—
|
|
|
285
|
|
|
—
|
|
||||
Collateralized loan obligations
|
|
737,202
|
|
|
—
|
|
|
737,202
|
|
|
—
|
|
||||
Loans held-for-sale, carried at fair value
|
|
23,794
|
|
|
—
|
|
|
2,719
|
|
|
21,075
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and caps (1)
|
|
4,119
|
|
|
—
|
|
|
4,119
|
|
|
—
|
|
||||
Foreign exchange contracts (1)
|
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and caps (2)
|
|
14,041
|
|
|
—
|
|
|
14,041
|
|
|
—
|
|
||||
Foreign exchange contracts (2)
|
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
SBA loan pools securities
|
|
$
|
910
|
|
|
$
|
—
|
|
|
$
|
910
|
|
|
$
|
—
|
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
437,442
|
|
|
—
|
|
|
437,442
|
|
|
—
|
|
||||
Non-agency residential mortgage-backed securities
|
|
427
|
|
|
—
|
|
|
427
|
|
|
—
|
|
||||
Non-agency commercial mortgage-backed securities
|
|
132,199
|
|
|
—
|
|
|
132,199
|
|
|
—
|
|
||||
Collateralized loan obligations
|
|
1,421,522
|
|
|
—
|
|
|
1,421,522
|
|
|
—
|
|
||||
Loans held-for-sale, carried at fair value (3)
|
|
27,180
|
|
|
—
|
|
|
2,140
|
|
|
25,040
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and caps (1)
|
|
1,534
|
|
|
—
|
|
|
1,534
|
|
|
—
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and caps (2)
|
|
1,600
|
|
|
—
|
|
|
1,600
|
|
|
—
|
|
(1)
|
Included in Other Assets in the Consolidated Statements of Financial Condition.
|
(2)
|
Included in Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition.
|
(3)
|
Includes loans held-for-sale carried at fair value of $19.5 million ($2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations, which are included in Assets of Discontinued Operations in the Consolidated Statements of Financial Condition.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Loans repurchased from GNMA Loan Pools (1)
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
|
$
|
23,069
|
|
|
$
|
42,962
|
|
|
$
|
25,040
|
|
|
$
|
98,940
|
|
Total gains or losses (realized/unrealized):
|
|
|
|
|
|
|
|
|
||||||||
Included in earnings—fair value adjustment
|
|
(6
|
)
|
|
(248
|
)
|
|
(3
|
)
|
|
(254
|
)
|
||||
Additions
|
|
—
|
|
|
2,765
|
|
|
—
|
|
|
27,385
|
|
||||
Sales, settlements, and other
|
|
(1,988
|
)
|
|
(12,245
|
)
|
|
(3,962
|
)
|
|
(92,837
|
)
|
||||
Balance at end of period
|
|
$
|
21,075
|
|
|
$
|
33,234
|
|
|
$
|
21,075
|
|
|
$
|
33,234
|
|
(1)
|
Includes loans repurchased from GNMA Loan Pools of discontinued operations, which is included in Assets of Discontinued Operations in the Consolidated Statements of Financial Condition, of zero and $24.0 million, respectively, for the three months ended June 30, 2019 and 2018 and $17.3 million and $32.3 million for the six months ended June 30, 2019 and 2018 in balance at beginning of period, and zero and $20.9 million, respectively, for both the three and six months ended June 30, 2019 and 2018 in balance at end of period.
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Fair Value
|
|
Unpaid Principal Balance
|
|
Difference
|
|
Fair Value
|
|
Unpaid Principal Balance
|
|
Difference
|
||||||||||||
Loans held-for-sale, carried at fair value in continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans
|
|
$
|
23,794
|
|
|
$
|
24,495
|
|
|
$
|
(701
|
)
|
|
$
|
7,690
|
|
|
$
|
7,906
|
|
|
$
|
(216
|
)
|
Non-accrual loans (1)
|
|
6,594
|
|
|
6,685
|
|
|
(91
|
)
|
|
2,427
|
|
|
2,538
|
|
|
(111
|
)
|
||||||
Loans held-for-sale, carried at fair value in discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,490
|
|
|
$
|
20,027
|
|
|
$
|
(537
|
)
|
Non-accrual loans (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,430
|
|
|
8,496
|
|
|
(66
|
)
|
(1)
|
Includes loans guaranteed by the U.S. government of $5.9 million and $1.6 million, respectively, at June 30, 2019 and December 31, 2018.
|
(2)
|
Includes loans guaranteed by the U.S. government of zero and $7.6 million, respectively, at June 30, 2019 and December 31, 2018.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net gains (losses) from fair value changes
|
|
|
|
|
|
|
|
|
||||||||
Net gain (loss) on sale of loans (continuing operations)
|
|
$
|
59
|
|
|
$
|
6
|
|
|
$
|
60
|
|
|
$
|
(20
|
)
|
Net revenue on mortgage banking activities (discontinued operations)
|
|
—
|
|
|
(247
|
)
|
|
—
|
|
|
(245
|
)
|
|
|
|
|
Fair Value Measurement Level
|
||||||||||||
($ in thousands)
|
|
Carrying Value
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
$
|
486
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
486
|
|
SBA
|
|
448
|
|
|
—
|
|
|
—
|
|
|
448
|
|
||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
SBA
|
|
$
|
226
|
|
|
—
|
|
|
—
|
|
|
$
|
226
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Single family residential mortgage
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(490
|
)
|
|
$
|
(115
|
)
|
Commercial and industrial
|
|
—
|
|
|
(231
|
)
|
|
—
|
|
|
(292
|
)
|
||||
SBA
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
(380
|
)
|
||||
Other consumer
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
(141
|
)
|
|
|
Carrying Amount
|
|
Fair Value Measurement Level
|
||||||||||||||||
($ in thousands)
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
313,850
|
|
|
$
|
313,850
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
313,850
|
|
Securities available-for-sale
|
|
1,167,687
|
|
|
—
|
|
|
1,167,687
|
|
|
—
|
|
|
1,167,687
|
|
|||||
Federal Home Loan Bank and other bank stock
|
|
76,373
|
|
|
—
|
|
|
76,373
|
|
|
—
|
|
|
76,373
|
|
|||||
Loans held-for-sale, carried at fair value
|
|
23,794
|
|
|
—
|
|
|
2,719
|
|
|
21,075
|
|
|
23,794
|
|
|||||
Loans held-for-sale, carried at lower of cost or fair value
|
|
573,926
|
|
|
—
|
|
|
—
|
|
|
578,911
|
|
|
573,926
|
|
|||||
Loans receivable, net of ALLL
|
|
6,660,047
|
|
|
—
|
|
|
—
|
|
|
6,550,673
|
|
|
6,550,673
|
|
|||||
Accrued interest receivable
|
|
31,908
|
|
|
31,908
|
|
|
—
|
|
|
—
|
|
|
31,908
|
|
|||||
Derivative assets
|
|
4,149
|
|
|
—
|
|
|
4,149
|
|
|
—
|
|
|
4,149
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
6,292,290
|
|
|
—
|
|
|
—
|
|
|
6,231,819
|
|
|
6,231,819
|
|
|||||
Advances from Federal Home Loan Bank
|
|
1,825,000
|
|
|
—
|
|
|
1,850,016
|
|
|
—
|
|
|
1,850,016
|
|
|||||
Long term debt
|
|
173,257
|
|
|
—
|
|
|
177,693
|
|
|
—
|
|
|
177,693
|
|
|||||
Derivative liabilities
|
|
14,055
|
|
|
—
|
|
|
14,055
|
|
|
—
|
|
|
14,055
|
|
|||||
Accrued interest payable
|
|
9,681
|
|
|
9,681
|
|
|
—
|
|
|
—
|
|
|
9,681
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
391,592
|
|
|
$
|
391,592
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
391,592
|
|
Securities available-for-sale
|
|
1,992,500
|
|
|
—
|
|
|
1,992,500
|
|
|
—
|
|
|
1,992,500
|
|
|||||
Federal Home Loan Bank and other bank stock
|
|
68,094
|
|
|
—
|
|
|
68,094
|
|
|
—
|
|
|
68,094
|
|
|||||
Loans held-for-sale (1)
|
|
27,606
|
|
|
—
|
|
|
2,566
|
|
|
25,040
|
|
|
27,606
|
|
|||||
Loans receivable, net of allowance
|
|
7,638,681
|
|
|
—
|
|
|
—
|
|
|
7,513,910
|
|
|
7,513,910
|
|
|||||
Accrued interest receivable
|
|
38,807
|
|
|
38,807
|
|
|
—
|
|
|
—
|
|
|
38,807
|
|
|||||
Derivative assets
|
|
1,534
|
|
|
—
|
|
|
1,534
|
|
|
—
|
|
|
1,534
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
7,916,644
|
|
|
—
|
|
|
—
|
|
|
7,689,324
|
|
|
7,689,324
|
|
|||||
Advances from Federal Home Loan Bank
|
|
1,520,000
|
|
|
—
|
|
|
1,517,761
|
|
|
—
|
|
|
1,517,761
|
|
|||||
Long-term debt
|
|
173,174
|
|
|
—
|
|
|
174,059
|
|
|
—
|
|
|
174,059
|
|
|||||
Derivative liabilities
|
|
1,600
|
|
|
—
|
|
|
1,600
|
|
|
—
|
|
|
1,600
|
|
|||||
Accrued interest payable
|
|
13,253
|
|
|
13,253
|
|
|
—
|
|
|
—
|
|
|
13,253
|
|
(1)
|
Includes loans held-for-sale carried at fair value of $19.5 million ($2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations.
|
($ in thousands)
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
SBA loan pool securities
|
|
$
|
831
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
853
|
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
436,049
|
|
|
196
|
|
|
(6,898
|
)
|
|
429,347
|
|
||||
Non-agency residential mortgage-backed securities
|
|
275
|
|
|
10
|
|
|
—
|
|
|
285
|
|
||||
Collateralized loan obligations
|
|
748,502
|
|
|
—
|
|
|
(11,300
|
)
|
|
737,202
|
|
||||
Total securities available-for-sale
|
|
$
|
1,185,657
|
|
|
$
|
228
|
|
|
$
|
(18,198
|
)
|
|
$
|
1,167,687
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
SBA loan pool securities
|
|
$
|
911
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
910
|
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
461,987
|
|
|
—
|
|
|
(24,545
|
)
|
|
437,442
|
|
||||
Non-agency residential mortgage-backed securities
|
|
418
|
|
|
9
|
|
|
—
|
|
|
427
|
|
||||
Non-agency commercial mortgage-backed securities
|
|
132,199
|
|
|
—
|
|
|
—
|
|
|
132,199
|
|
||||
Collateralized loan obligations
|
|
1,431,171
|
|
|
141
|
|
|
(9,790
|
)
|
|
1,421,522
|
|
||||
Total securities available-for-sale
|
|
$
|
2,026,686
|
|
|
$
|
150
|
|
|
$
|
(34,336
|
)
|
|
$
|
1,992,500
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross realized gains on sales and calls of securities available-for-sale
|
|
$
|
—
|
|
|
$
|
278
|
|
|
$
|
208
|
|
|
$
|
5,519
|
|
Gross realized losses on sales and calls of securities available-for-sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net realized gains on sales and calls of securities available-for-sale
|
|
$
|
—
|
|
|
$
|
278
|
|
|
$
|
208
|
|
|
$
|
5,519
|
|
Proceeds from sales and calls of securities available-for-sale
|
|
$
|
298,156
|
|
|
$
|
325,439
|
|
|
$
|
820,048
|
|
|
$
|
612,956
|
|
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
($ in thousands)
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SBA loan pool securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
370,676
|
|
|
(6,898
|
)
|
|
370,676
|
|
|
(6,898
|
)
|
||||||
Non-agency residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Collateralized loan obligations
|
|
497,963
|
|
|
(6,664
|
)
|
|
239,239
|
|
|
(4,636
|
)
|
|
737,202
|
|
|
(11,300
|
)
|
||||||
Total securities available-for-sale
|
|
$
|
497,963
|
|
|
$
|
(6,664
|
)
|
|
$
|
609,915
|
|
|
$
|
(11,534
|
)
|
|
$
|
1,107,878
|
|
|
$
|
(18,198
|
)
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SBA loan pool securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
910
|
|
|
$
|
(1
|
)
|
|
$
|
910
|
|
|
$
|
(1
|
)
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
13,494
|
|
|
(133
|
)
|
|
423,916
|
|
|
(24,412
|
)
|
|
437,410
|
|
|
(24,545
|
)
|
||||||
Non-agency residential mortgage-backed securities
|
|
90
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
106
|
|
|
—
|
|
||||||
Collateralized loan obligations
|
|
1,364,317
|
|
|
(9,480
|
)
|
|
32,790
|
|
|
(310
|
)
|
|
1,397,107
|
|
|
(9,790
|
)
|
||||||
Total securities available-for-sale
|
|
$
|
1,377,901
|
|
|
$
|
(9,613
|
)
|
|
$
|
457,632
|
|
|
$
|
(24,723
|
)
|
|
$
|
1,835,533
|
|
|
$
|
(34,336
|
)
|
|
|
One year or less
|
|
More than One Year through Five Years
|
|
More than Five Years through Ten Years
|
|
More than Ten Years
|
|
Total
|
|||||||||||||||||||||||||
($ in thousands)
|
|
Fair
Value
|
|
Weighted-Average Yield
|
|
Fair
Value
|
|
Weighted-Average Yield
|
|
Fair
Value
|
|
Weighted-Average Yield
|
|
Fair
Value
|
|
Weighted-Average Yield
|
|
Fair
Value
|
|
Weighted-Average Yield
|
|||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
SBA loan pool securities
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
853
|
|
|
2.08
|
%
|
|
$
|
853
|
|
|
2.08
|
%
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
243
|
|
|
2.36
|
%
|
|
3,069
|
|
|
2.67
|
%
|
|
—
|
|
|
—
|
%
|
|
426,035
|
|
|
2.74
|
%
|
|
429,347
|
|
|
2.74
|
%
|
|||||
Non-agency residential mortgage-backed securities
|
|
66
|
|
|
3.23
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
219
|
|
|
5.74
|
%
|
|
285
|
|
|
5.16
|
%
|
|||||
Collateralized loan obligations
|
|
737,202
|
|
|
3.71
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
737,202
|
|
|
3.71
|
%
|
|||||
Total securities available-for-sale
|
|
$
|
737,511
|
|
|
3.71
|
%
|
|
$
|
3,069
|
|
|
2.67
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
427,107
|
|
|
2.74
|
%
|
|
$
|
1,167,687
|
|
|
3.35
|
%
|
($ in thousands)
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Commercial:
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
1,951,707
|
|
|
$
|
1,944,142
|
|
Commercial real estate
|
|
856,497
|
|
|
867,013
|
|
||
Multifamily
|
|
1,598,978
|
|
|
2,241,246
|
|
||
SBA
|
|
80,929
|
|
|
68,741
|
|
||
Construction
|
|
209,029
|
|
|
203,976
|
|
||
Consumer:
|
|
|
|
|
||||
Single family residential mortgage
|
|
1,961,065
|
|
|
2,305,490
|
|
||
Other consumer
|
|
61,365
|
|
|
70,265
|
|
||
Total loans(1)
|
|
$
|
6,719,570
|
|
|
$
|
7,700,873
|
|
Percentage to total loans
|
|
100.0
|
%
|
|
100.0
|
%
|
||
Allowance for loan losses
|
|
(59,523
|
)
|
|
(62,192
|
)
|
||
Loans receivable, net
|
|
$
|
6,660,047
|
|
|
$
|
7,638,681
|
|
(1)
|
Total loans include deferred loan origination costs/(fees) and premiums/(discounts), net of $16.1 million and $17.7 million, respectively, at June 30, 2019 and December 31, 2018.
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||
($ in thousands)
|
|
Count
|
|
Amount
|
|
Percent
|
|
Count
|
|
Amount
|
|
Percent
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Single family residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Green Loans (HELOC) - first liens(1)
|
|
78
|
|
|
$
|
61,439
|
|
|
8.2
|
%
|
|
88
|
|
|
$
|
67,729
|
|
|
8.2
|
%
|
Interest-only - first liens(2)
|
|
444
|
|
|
680,361
|
|
|
91.0
|
%
|
|
519
|
|
|
753,061
|
|
|
91.1
|
%
|
||
Negative amortization(3)
|
|
10
|
|
|
3,219
|
|
|
0.4
|
%
|
|
11
|
|
|
3,528
|
|
|
0.4
|
%
|
||
Total NTM - first liens
|
|
532
|
|
|
745,019
|
|
|
99.7
|
%
|
|
618
|
|
|
824,318
|
|
|
99.7
|
%
|
||
Other consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Green Loans (HELOC) - second liens(1)
|
|
7
|
|
|
2,247
|
|
|
0.3
|
%
|
|
10
|
|
|
2,413
|
|
|
0.3
|
%
|
||
Total NTM - second liens
|
|
7
|
|
|
2,247
|
|
|
0.3
|
%
|
|
10
|
|
|
2,413
|
|
|
0.3
|
%
|
||
Total NTM loans
|
|
539
|
|
|
$
|
747,266
|
|
|
100.0
|
%
|
|
628
|
|
|
$
|
826,731
|
|
|
100.0
|
%
|
Total loans receivable
|
|
|
|
$
|
6,719,570
|
|
|
|
|
|
|
$
|
7,700,873
|
|
|
|
||||
% of total NTM loans to total loans receivable
|
|
|
|
11.1
|
%
|
|
|
|
|
|
10.7
|
%
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Balance at beginning of period
|
|
$
|
63,885
|
|
|
$
|
54,763
|
|
|
$
|
62,192
|
|
|
$
|
49,333
|
|
Loans charged off
|
|
(2,451
|
)
|
|
(950
|
)
|
|
(3,514
|
)
|
|
(15,589
|
)
|
||||
Recoveries of loans previously charged off
|
|
76
|
|
|
212
|
|
|
320
|
|
|
782
|
|
||||
Net charge-offs
|
|
(2,375
|
)
|
|
(738
|
)
|
|
(3,194
|
)
|
|
(14,807
|
)
|
||||
(Reversal of) provision for loan losses
|
|
(1,987
|
)
|
|
2,653
|
|
|
525
|
|
|
22,152
|
|
||||
Balance at end of period
|
|
$
|
59,523
|
|
|
$
|
56,678
|
|
|
$
|
59,523
|
|
|
$
|
56,678
|
|
($ in thousands)
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Multifamily
|
|
SBA
|
|
Construction
|
|
Lease Financing
|
|
Single Family Residential Mortgage
|
|
Other Consumer
|
|
Total
|
||||||||||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at March 31, 2019
|
|
$
|
18,893
|
|
|
$
|
6,838
|
|
|
$
|
18,898
|
|
|
$
|
3,057
|
|
|
$
|
3,453
|
|
|
$
|
—
|
|
|
$
|
12,142
|
|
|
$
|
604
|
|
|
$
|
63,885
|
|
Charge-offs
|
|
(2,022
|
)
|
|
—
|
|
|
(6
|
)
|
|
8
|
|
|
—
|
|
|
—
|
|
|
(425
|
)
|
|
(6
|
)
|
|
(2,451
|
)
|
|||||||||
Recoveries
|
|
11
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
76
|
|
|||||||||
Net charge-offs
|
|
(2,011
|
)
|
|
—
|
|
|
(6
|
)
|
|
68
|
|
|
—
|
|
|
3
|
|
|
(425
|
)
|
|
(4
|
)
|
|
(2,375
|
)
|
|||||||||
Provision (reversal)
|
|
4,647
|
|
|
39
|
|
|
(6,267
|
)
|
|
(5
|
)
|
|
262
|
|
|
(3
|
)
|
|
(645
|
)
|
|
(15
|
)
|
|
(1,987
|
)
|
|||||||||
Balance at June 30, 2019
|
|
$
|
21,529
|
|
|
$
|
6,877
|
|
|
$
|
12,625
|
|
|
$
|
3,120
|
|
|
$
|
3,715
|
|
|
$
|
—
|
|
|
$
|
11,072
|
|
|
$
|
585
|
|
|
$
|
59,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at December 31, 2018
|
|
$
|
18,191
|
|
|
$
|
6,674
|
|
|
$
|
17,970
|
|
|
$
|
1,827
|
|
|
$
|
3,461
|
|
|
$
|
—
|
|
|
$
|
13,128
|
|
|
$
|
941
|
|
|
$
|
62,192
|
|
Charge-offs
|
|
(2,115
|
)
|
|
—
|
|
|
(6
|
)
|
|
(348
|
)
|
|
—
|
|
|
—
|
|
|
(951
|
)
|
|
(94
|
)
|
|
(3,514
|
)
|
|||||||||
Recoveries
|
|
44
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
6
|
|
|
150
|
|
|
19
|
|
|
320
|
|
|||||||||
Net charge-offs
|
|
(2,071
|
)
|
|
—
|
|
|
(6
|
)
|
|
(247
|
)
|
|
—
|
|
|
6
|
|
|
(801
|
)
|
|
(75
|
)
|
|
(3,194
|
)
|
|||||||||
Provision
|
|
5,409
|
|
|
203
|
|
|
(5,339
|
)
|
|
1,540
|
|
|
254
|
|
|
(6
|
)
|
|
(1,255
|
)
|
|
(281
|
)
|
|
525
|
|
|||||||||
Balance at June 30, 2019
|
|
$
|
21,529
|
|
|
$
|
6,877
|
|
|
$
|
12,625
|
|
|
$
|
3,120
|
|
|
$
|
3,715
|
|
|
$
|
—
|
|
|
$
|
11,072
|
|
|
$
|
585
|
|
|
$
|
59,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
1,239
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,563
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
2,824
|
|
Collectively evaluated for impairment
|
|
20,290
|
|
|
6,877
|
|
|
12,625
|
|
|
1,557
|
|
|
3,715
|
|
|
—
|
|
|
11,072
|
|
|
563
|
|
|
56,699
|
|
|||||||||
Total ending ALLL balance
|
|
$
|
21,529
|
|
|
$
|
6,877
|
|
|
$
|
12,625
|
|
|
$
|
3,120
|
|
|
$
|
3,715
|
|
|
$
|
—
|
|
|
$
|
11,072
|
|
|
$
|
585
|
|
|
$
|
59,523
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
20,429
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,262
|
|
|
$
|
2,519
|
|
|
$
|
—
|
|
|
$
|
21,021
|
|
|
$
|
1,169
|
|
|
$
|
48,400
|
|
Collectively evaluated for impairment
|
|
1,931,278
|
|
|
856,497
|
|
|
1,598,978
|
|
|
77,667
|
|
|
206,510
|
|
|
—
|
|
|
1,940,044
|
|
|
60,196
|
|
|
6,671,170
|
|
|||||||||
Total ending loan balances
|
|
$
|
1,951,707
|
|
|
$
|
856,497
|
|
|
$
|
1,598,978
|
|
|
$
|
80,929
|
|
|
$
|
209,029
|
|
|
$
|
—
|
|
|
$
|
1,961,065
|
|
|
$
|
61,365
|
|
|
$
|
6,719,570
|
|
($ in thousands)
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Multifamily
|
|
SBA
|
|
Construction
|
|
Lease Financing
|
|
Single Family Residential Mortgage
|
|
Other Consumer
|
|
Total
|
||||||||||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at March 31, 2018
|
|
$
|
17,571
|
|
|
$
|
5,417
|
|
|
$
|
14,219
|
|
|
$
|
1,577
|
|
|
$
|
3,220
|
|
|
$
|
—
|
|
|
$
|
11,969
|
|
|
$
|
790
|
|
|
$
|
54,763
|
|
Charge-offs
|
|
(276
|
)
|
|
—
|
|
|
(8
|
)
|
|
(302
|
)
|
|
—
|
|
|
—
|
|
|
(364
|
)
|
|
—
|
|
|
(950
|
)
|
|||||||||
Recoveries
|
|
36
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
4
|
|
|
212
|
|
|||||||||
Net charge-offs
|
|
(240
|
)
|
|
—
|
|
|
(8
|
)
|
|
(135
|
)
|
|
—
|
|
|
5
|
|
|
(364
|
)
|
|
4
|
|
|
(738
|
)
|
|||||||||
Provision (reversal)
|
|
(467
|
)
|
|
315
|
|
|
419
|
|
|
398
|
|
|
199
|
|
|
(5
|
)
|
|
1,631
|
|
|
163
|
|
|
2,653
|
|
|||||||||
Balance at June 30, 2018
|
|
$
|
16,864
|
|
|
$
|
5,732
|
|
|
$
|
14,630
|
|
|
$
|
1,840
|
|
|
$
|
3,419
|
|
|
$
|
—
|
|
|
$
|
13,236
|
|
|
$
|
957
|
|
|
$
|
56,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at December 31, 2017
|
|
$
|
14,280
|
|
|
$
|
4,971
|
|
|
$
|
13,265
|
|
|
$
|
1,701
|
|
|
$
|
3,318
|
|
|
$
|
—
|
|
|
$
|
10,996
|
|
|
$
|
802
|
|
|
$
|
49,333
|
|
Charge-offs
|
|
(347
|
)
|
|
—
|
|
|
(8
|
)
|
|
(683
|
)
|
|
—
|
|
|
—
|
|
|
(479
|
)
|
|
(14,072
|
)
|
|
(15,589
|
)
|
|||||||||
Recoveries
|
|
97
|
|
|
—
|
|
|
—
|
|
|
232
|
|
|
—
|
|
|
9
|
|
|
436
|
|
|
8
|
|
|
782
|
|
|||||||||
Net charge-offs
|
|
(250
|
)
|
|
—
|
|
|
(8
|
)
|
|
(451
|
)
|
|
—
|
|
|
9
|
|
|
(43
|
)
|
|
(14,064
|
)
|
|
(14,807
|
)
|
|||||||||
Provision
|
|
2,834
|
|
|
761
|
|
|
1,373
|
|
|
590
|
|
|
101
|
|
|
(9
|
)
|
|
2,283
|
|
|
14,219
|
|
|
22,152
|
|
|||||||||
Balance at June 30, 2018
|
|
$
|
16,864
|
|
|
$
|
5,732
|
|
|
$
|
14,630
|
|
|
$
|
1,840
|
|
|
$
|
3,419
|
|
|
$
|
—
|
|
|
$
|
13,236
|
|
|
$
|
957
|
|
|
$
|
56,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
595
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
461
|
|
|
$
|
8
|
|
|
$
|
1,188
|
|
Collectively evaluated for impairment
|
|
16,269
|
|
|
5,732
|
|
|
14,630
|
|
|
1,716
|
|
|
3,419
|
|
|
—
|
|
|
12,775
|
|
|
949
|
|
|
55,490
|
|
|||||||||
Total ending ALLL balance
|
|
$
|
16,864
|
|
|
$
|
5,732
|
|
|
$
|
14,630
|
|
|
$
|
1,840
|
|
|
$
|
3,419
|
|
|
$
|
—
|
|
|
$
|
13,236
|
|
|
$
|
957
|
|
|
$
|
56,678
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
5,829
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
646
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,140
|
|
|
$
|
750
|
|
|
$
|
27,365
|
|
Collectively evaluated for impairment
|
|
1,736,730
|
|
|
793,855
|
|
|
1,959,965
|
|
|
77,446
|
|
|
211,110
|
|
|
—
|
|
|
2,154,043
|
|
|
75,490
|
|
|
7,008,639
|
|
|||||||||
Total ending loan balances
|
|
$
|
1,742,559
|
|
|
$
|
793,855
|
|
|
$
|
1,959,965
|
|
|
$
|
78,092
|
|
|
$
|
211,110
|
|
|
$
|
—
|
|
|
$
|
2,174,183
|
|
|
$
|
76,240
|
|
|
$
|
7,036,004
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Unpaid Principal Balance
|
|
Recorded Investment
|
|
Allowance for Loan Losses
|
|
Unpaid Principal Balance
|
|
Recorded Investment
|
|
Allowance for Loan Losses
|
||||||||||||
With no related ALLL recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
18,434
|
|
|
$
|
18,404
|
|
|
$
|
—
|
|
|
$
|
5,491
|
|
|
$
|
5,455
|
|
|
$
|
—
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
SBA
|
|
1,320
|
|
|
1,251
|
|
|
—
|
|
|
1,668
|
|
|
1,588
|
|
|
—
|
|
||||||
Construction
|
|
2,519
|
|
|
2,519
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
20,938
|
|
|
21,021
|
|
|
—
|
|
|
12,115
|
|
|
12,161
|
|
|
—
|
|
||||||
Other consumer
|
|
1,167
|
|
|
1,147
|
|
|
—
|
|
|
469
|
|
|
469
|
|
|
—
|
|
||||||
With an ALLL recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
2,025
|
|
|
2,025
|
|
|
1,239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
SBA
|
|
2,107
|
|
|
2,011
|
|
|
1,563
|
|
|
823
|
|
|
788
|
|
|
562
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,993
|
|
|
6,032
|
|
|
161
|
|
||||||
Other consumer
|
|
22
|
|
|
22
|
|
|
22
|
|
|
468
|
|
|
452
|
|
|
106
|
|
||||||
Total
|
|
$
|
48,532
|
|
|
$
|
48,400
|
|
|
$
|
2,824
|
|
|
$
|
27,027
|
|
|
$
|
26,945
|
|
|
$
|
829
|
|
|
|
|
||||||||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
($ in thousands)
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Cash Basis Interest Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Cash Basis Interest Recognized
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
20,794
|
|
|
$
|
255
|
|
|
$
|
254
|
|
|
$
|
12,921
|
|
|
$
|
255
|
|
|
$
|
254
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
289
|
|
|
—
|
|
|
—
|
|
||||||
SBA
|
|
3,297
|
|
|
4
|
|
|
4
|
|
|
3,571
|
|
|
8
|
|
|
8
|
|
||||||
Construction
|
|
2,519
|
|
|
—
|
|
|
—
|
|
|
2,519
|
|
|
—
|
|
|
—
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
21,092
|
|
|
58
|
|
|
48
|
|
|
20,208
|
|
|
116
|
|
|
97
|
|
||||||
Other consumer
|
|
1,177
|
|
|
4
|
|
|
3
|
|
|
1,011
|
|
|
7
|
|
|
6
|
|
||||||
Total
|
|
$
|
48,879
|
|
|
$
|
321
|
|
|
$
|
309
|
|
|
$
|
40,519
|
|
|
$
|
386
|
|
|
$
|
365
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
5,900
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
5,616
|
|
|
$
|
4
|
|
|
$
|
4
|
|
SBA
|
|
654
|
|
|
—
|
|
|
—
|
|
|
514
|
|
|
—
|
|
|
—
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
20,274
|
|
|
58
|
|
|
47
|
|
|
19,994
|
|
|
115
|
|
|
96
|
|
||||||
Other consumer
|
|
760
|
|
|
3
|
|
|
3
|
|
|
755
|
|
|
6
|
|
|
5
|
|
||||||
Total
|
|
$
|
27,588
|
|
|
$
|
62
|
|
|
$
|
51
|
|
|
$
|
26,879
|
|
|
$
|
125
|
|
|
$
|
105
|
|
($ in thousands)
|
|
30 - 59 Days Past Due
|
|
60 - 89 Days Past Due
|
|
Greater than 89 Days Past due
|
|
Total Past Due
|
|
Current
|
|
Total
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NTM loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
$
|
19,960
|
|
|
$
|
—
|
|
|
$
|
827
|
|
|
$
|
20,787
|
|
|
$
|
724,232
|
|
|
$
|
745,019
|
|
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,247
|
|
|
2,247
|
|
||||||
Total NTM loans
|
|
19,960
|
|
|
—
|
|
|
827
|
|
|
20,787
|
|
|
726,479
|
|
|
747,266
|
|
||||||
Traditional loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
1,063
|
|
|
997
|
|
|
4,017
|
|
|
6,077
|
|
|
1,945,630
|
|
|
1,951,707
|
|
||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
856,497
|
|
|
856,497
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,598,978
|
|
|
1,598,978
|
|
||||||
SBA
|
|
944
|
|
|
73
|
|
|
2,672
|
|
|
3,689
|
|
|
77,240
|
|
|
80,929
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
2,519
|
|
|
2,519
|
|
|
206,510
|
|
|
209,029
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
7,447
|
|
|
3,645
|
|
|
6,683
|
|
|
17,775
|
|
|
1,198,271
|
|
|
1,216,046
|
|
||||||
Other consumer
|
|
514
|
|
|
295
|
|
|
554
|
|
|
1,363
|
|
|
57,755
|
|
|
59,118
|
|
||||||
Total traditional loans
|
|
9,968
|
|
|
5,010
|
|
|
16,445
|
|
|
31,423
|
|
|
5,940,881
|
|
|
5,972,304
|
|
||||||
Total
|
|
$
|
29,928
|
|
|
$
|
5,010
|
|
|
$
|
17,272
|
|
|
$
|
52,210
|
|
|
$
|
6,667,360
|
|
|
$
|
6,719,570
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NTM loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
$
|
7,430
|
|
|
$
|
617
|
|
|
$
|
—
|
|
|
$
|
8,047
|
|
|
$
|
816,271
|
|
|
$
|
824,318
|
|
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,413
|
|
|
2,413
|
|
||||||
Total NTM loans
|
|
7,430
|
|
|
617
|
|
|
—
|
|
|
8,047
|
|
|
818,684
|
|
|
826,731
|
|
||||||
Traditional loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
350
|
|
|
1,596
|
|
|
3,340
|
|
|
5,286
|
|
|
1,938,856
|
|
|
1,944,142
|
|
||||||
Commercial real estate
|
|
—
|
|
|
582
|
|
|
—
|
|
|
582
|
|
|
866,431
|
|
|
867,013
|
|
||||||
Multifamily
|
|
356
|
|
|
—
|
|
|
—
|
|
|
356
|
|
|
2,240,890
|
|
|
2,241,246
|
|
||||||
SBA
|
|
551
|
|
|
77
|
|
|
862
|
|
|
1,490
|
|
|
67,251
|
|
|
68,741
|
|
||||||
Construction
|
|
—
|
|
|
939
|
|
|
—
|
|
|
939
|
|
|
203,037
|
|
|
203,976
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
7,321
|
|
|
3,160
|
|
|
9,198
|
|
|
19,679
|
|
|
1,461,493
|
|
|
1,481,172
|
|
||||||
Other consumer
|
|
3,132
|
|
|
573
|
|
|
446
|
|
|
4,151
|
|
|
63,701
|
|
|
67,852
|
|
||||||
Total traditional loans
|
|
11,710
|
|
|
6,927
|
|
|
13,846
|
|
|
32,483
|
|
|
6,841,659
|
|
|
6,874,142
|
|
||||||
Total
|
|
$
|
19,140
|
|
|
$
|
7,544
|
|
|
$
|
13,846
|
|
|
$
|
40,530
|
|
|
$
|
7,660,343
|
|
|
$
|
7,700,873
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
NTM Loans
|
|
Traditional Loans
|
|
Total
|
|
NTM Loans
|
|
Traditional Loans
|
|
Total
|
||||||||||||
Non-accrual loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
5,716
|
|
|
$
|
5,716
|
|
|
$
|
—
|
|
|
$
|
5,455
|
|
|
$
|
5,455
|
|
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
SBA
|
—
|
|
|
3,440
|
|
|
3,440
|
|
|
—
|
|
|
2,574
|
|
|
2,574
|
|
||||||
Construction
|
—
|
|
|
2,519
|
|
|
2,519
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
1,113
|
|
|
14,836
|
|
|
15,949
|
|
|
—
|
|
|
12,929
|
|
|
12,929
|
|
||||||
Other consumer
|
—
|
|
|
875
|
|
|
875
|
|
|
—
|
|
|
627
|
|
|
627
|
|
||||||
Total non-accrual loans
|
$
|
1,113
|
|
|
$
|
27,386
|
|
|
$
|
28,499
|
|
|
$
|
—
|
|
|
$
|
21,585
|
|
|
$
|
21,585
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
NTM Loans
|
|
Traditional Loans
|
|
Total
|
|
NTM Loans
|
|
Traditional Loans
|
|
Total
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
16,250
|
|
|
$
|
16,250
|
|
|
$
|
—
|
|
|
$
|
2,276
|
|
|
$
|
2,276
|
|
SBA
|
|
—
|
|
|
1,057
|
|
|
1,057
|
|
|
—
|
|
|
187
|
|
|
187
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential mortgage
|
|
2,653
|
|
|
2,419
|
|
|
5,072
|
|
|
2,668
|
|
|
2,596
|
|
|
5,264
|
|
||||||
Other consumer
|
|
294
|
|
|
—
|
|
|
294
|
|
|
294
|
|
|
—
|
|
|
294
|
|
||||||
Total
|
|
$
|
2,947
|
|
|
$
|
19,726
|
|
|
$
|
22,673
|
|
|
$
|
2,962
|
|
|
$
|
5,059
|
|
|
$
|
8,021
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
($ in thousands)
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
10
|
|
|
$
|
17,339
|
|
|
$
|
17,020
|
|
|
10
|
|
|
$
|
17,339
|
|
|
$
|
17,020
|
|
SBA
|
|
2
|
|
|
3,214
|
|
|
869
|
|
|
2
|
|
|
3,214
|
|
|
869
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family residential mortgage
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other consumer
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
12
|
|
|
20,553
|
|
|
17,889
|
|
|
12
|
|
|
$
|
20,553
|
|
|
$
|
17,889
|
|
||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
171
|
|
|
$
|
163
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
171
|
|
|
$
|
163
|
|
|
|
Three Months Ended
|
|||||||||||||||||||
|
|
Modification Type
|
|||||||||||||||||||
|
|
Change in Principal Payments and Interest Rates
|
|
Change in Principal Payments
|
|
Total
|
|||||||||||||||
($ in thousands)
|
|
Count
|
|
Amount
|
|
Count
|
|
Amount
|
|
Count
|
|
Amount
|
|||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
|
10
|
|
|
$
|
17,020
|
|
|
—
|
|
|
$
|
—
|
|
|
10
|
|
|
$
|
17,020
|
|
SBA
|
|
2
|
|
|
$
|
869
|
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
869
|
|
Total
|
|
12
|
|
|
$
|
17,889
|
|
|
—
|
|
|
$
|
—
|
|
|
12
|
|
|
$
|
17,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
Six Months Ended
|
|||||||||||||||||||
|
|
Modification Type
|
|||||||||||||||||||
|
|
Change in Principal Payments and Interest Rates
|
|
Change in Principal Payments
|
|
Total
|
|||||||||||||||
($ in thousands)
|
|
Count
|
|
Amount
|
|
Count
|
|
Amount
|
|
Count
|
|
Amount
|
|||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
|
10
|
|
|
$
|
17,020
|
|
|
—
|
|
|
$
|
—
|
|
|
10
|
|
|
$
|
17,020
|
|
SBA
|
|
2
|
|
|
$
|
869
|
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
869
|
|
Total
|
|
12
|
|
|
$
|
17,889
|
|
|
—
|
|
|
$
|
—
|
|
|
12
|
|
|
$
|
17,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
163
|
|
|
2
|
|
|
$
|
163
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
163
|
|
|
2
|
|
|
$
|
163
|
|
($ in thousands)
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NTM loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family residential mortgage
|
|
$
|
729,845
|
|
|
$
|
12,751
|
|
|
$
|
2,423
|
|
|
$
|
—
|
|
|
$
|
745,019
|
|
Other consumer
|
|
2,247
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,247
|
|
|||||
Total NTM loans
|
|
732,092
|
|
|
12,751
|
|
|
2,423
|
|
|
—
|
|
|
747,266
|
|
|||||
Traditional loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
1,844,472
|
|
|
50,702
|
|
|
56,533
|
|
|
—
|
|
|
1,951,707
|
|
|||||
Commercial real estate
|
|
832,173
|
|
|
14,519
|
|
|
9,805
|
|
|
—
|
|
|
856,497
|
|
|||||
Multifamily
|
|
1,581,629
|
|
|
11,488
|
|
|
5,861
|
|
|
—
|
|
|
1,598,978
|
|
|||||
SBA
|
|
66,448
|
|
|
4,074
|
|
|
9,605
|
|
|
802
|
|
|
80,929
|
|
|||||
Construction
|
|
194,842
|
|
|
9,172
|
|
|
5,015
|
|
|
—
|
|
|
209,029
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family residential mortgage
|
|
1,193,532
|
|
|
6,017
|
|
|
15,980
|
|
|
517
|
|
|
1,216,046
|
|
|||||
Other consumer
|
|
57,177
|
|
|
471
|
|
|
1,470
|
|
|
—
|
|
|
59,118
|
|
|||||
Total traditional loans
|
|
5,770,273
|
|
|
96,443
|
|
|
104,269
|
|
|
1,319
|
|
|
5,972,304
|
|
|||||
Total
|
|
$
|
6,502,365
|
|
|
$
|
109,194
|
|
|
$
|
106,692
|
|
|
$
|
1,319
|
|
|
$
|
6,719,570
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NTM loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family residential mortgage
|
|
$
|
811,056
|
|
|
$
|
10,966
|
|
|
$
|
2,296
|
|
|
$
|
—
|
|
|
$
|
824,318
|
|
Other consumer
|
|
2,413
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,413
|
|
|||||
Total NTM loans
|
|
813,469
|
|
|
10,966
|
|
|
2,296
|
|
|
—
|
|
|
826,731
|
|
|||||
Traditional loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
1,859,569
|
|
|
41,302
|
|
|
43,271
|
|
|
—
|
|
|
1,944,142
|
|
|||||
Commercial real estate
|
|
851,604
|
|
|
11,376
|
|
|
4,033
|
|
|
—
|
|
|
867,013
|
|
|||||
Multifamily
|
|
2,239,301
|
|
|
—
|
|
|
1,945
|
|
|
—
|
|
|
2,241,246
|
|
|||||
SBA
|
|
53,433
|
|
|
6,114
|
|
|
8,340
|
|
|
854
|
|
|
68,741
|
|
|||||
Construction
|
|
197,851
|
|
|
3,606
|
|
|
2,519
|
|
|
—
|
|
|
203,976
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family residential mortgage
|
|
1,461,721
|
|
|
2,602
|
|
|
16,849
|
|
|
—
|
|
|
1,481,172
|
|
|||||
Other consumer
|
|
66,228
|
|
|
979
|
|
|
645
|
|
|
—
|
|
|
67,852
|
|
|||||
Total traditional loans
|
|
6,729,707
|
|
|
65,979
|
|
|
77,602
|
|
|
854
|
|
|
6,874,142
|
|
|||||
Total
|
|
$
|
7,543,176
|
|
|
$
|
76,945
|
|
|
$
|
79,898
|
|
|
$
|
854
|
|
|
$
|
7,700,873
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
($ in thousands)
|
|
Transfers from Held-For-Sale
|
|
Transfers (to) Held-For-Sale
|
|
Transfers from Held-For-Sale
|
|
Transfers (to) Held-For-Sale
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
$
|
—
|
|
|
$
|
(573
|
)
|
|
$
|
—
|
|
|
$
|
(573
|
)
|
Multifamily
|
|
—
|
|
|
(752,087
|
)
|
|
—
|
|
|
(752,087
|
)
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single family residential mortgage
|
|
$
|
—
|
|
|
$
|
(131,315
|
)
|
|
$
|
—
|
|
|
$
|
(374,679
|
)
|
Total
|
|
$
|
—
|
|
|
$
|
(883,975
|
)
|
|
$
|
—
|
|
|
$
|
(1,127,339
|
)
|
June 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
Multifamily
|
|
$
|
—
|
|
|
$
|
(71,449
|
)
|
|
$
|
—
|
|
|
$
|
(71,449
|
)
|
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single family residential mortgage
|
|
—
|
|
|
(133,829
|
)
|
|
—
|
|
|
(136,013
|
)
|
||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,362
|
)
|
||||
Total
|
|
$
|
—
|
|
|
$
|
(205,278
|
)
|
|
$
|
—
|
|
|
$
|
(211,824
|
)
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
($ in thousands)
|
|
2019
|
|
2019
|
||||
Operating Lease Expense
|
|
$
|
1,720
|
|
|
$
|
3,496
|
|
Variable Lease Expense
|
|
89
|
|
|
178
|
|
||
Sublease Income
|
|
(15
|
)
|
|
(250
|
)
|
||
Total Lease Expense
|
|
$
|
1,794
|
|
|
$
|
3,424
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
($ in thousands)
|
|
2019
|
|
2019
|
||||
Cash paid for amounts included in the measurement of lease liabilities for operating leases:
|
|
|
|
|
||||
Operating cash flows
|
|
$
|
1,738
|
|
|
$
|
3,619
|
|
ROU assets obtained in the exchange for lease liabilities:
|
|
|
|
|
||||
ROU assets obtained in exchange for lease liabilities
|
|
$
|
1,055
|
|
|
$
|
4,089
|
|
ROU assets recognized upon adoption of new lease standard
|
|
$
|
—
|
|
|
$
|
23,332
|
|
($ in thousands)
|
|
June 30,
2019 |
||
Operating Leases:
|
|
|
||
Operating lease right-of-use assets
|
|
$
|
24,118
|
|
Operating lease liabilities
|
|
25,457
|
|
|
|
June 30, 2019
|
|
Weighted-average remaining lease term (in years):
|
|
|
|
Operating leases
|
|
6.64 years
|
|
Weighted-average discount rate:
|
|
|
|
Operating leases
|
|
2.88
|
%
|
($ in thousands)
|
|
Operating
Leases
|
||
Remainder of 2019
|
|
$
|
3,325
|
|
2020
|
|
6,590
|
|
|
2021
|
|
4,827
|
|
|
2022
|
|
3,250
|
|
|
2023
|
|
2,440
|
|
|
2024
|
|
1,568
|
|
|
Thereafter
|
|
6,338
|
|
|
Total lease payments
|
|
28,338
|
|
|
Less: present value discount
|
|
(2,881
|
)
|
|
Total Lease Liability
|
|
$
|
25,457
|
|
($ in thousands)
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||
June 30, 2019
|
|
|
|
|
|
|
||||||
Core deposit intangibles
|
|
$
|
30,904
|
|
|
$
|
25,799
|
|
|
$
|
5,105
|
|
December 31, 2018
|
|
|
|
|
|
|
||||||
Core deposit intangibles
|
|
$
|
30,904
|
|
|
$
|
24,558
|
|
|
$
|
6,346
|
|
($ in thousands)
|
|
Remainder of 2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024 and After
|
|
Total
|
||||||||||||||
Estimated future amortization expense
|
|
$
|
954
|
|
|
$
|
1,518
|
|
|
$
|
1,082
|
|
|
$
|
799
|
|
|
$
|
517
|
|
|
$
|
235
|
|
|
$
|
5,105
|
|
($ in thousands)
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Fixed rate:
|
|
|
|
|
||||
Outstanding balance
|
|
$
|
1,180,000
|
|
|
$
|
805,000
|
|
Interest rates ranging from
|
|
1.61
|
%
|
|
1.61
|
%
|
||
Interest rates ranging to
|
|
3.32
|
%
|
|
3.32
|
%
|
||
Weighted average interest rate
|
|
2.51
|
%
|
|
2.58
|
%
|
||
Variable rate:
|
|
|
|
|
||||
Outstanding balance
|
|
645,000
|
|
|
715,000
|
|
||
Weighted average interest rate
|
|
2.52
|
%
|
|
2.56
|
%
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
($ in thousands)
|
|
Par Value
|
|
Unamortized Debt Issuance Cost and Discount
|
|
Par Value
|
|
Unamortized Debt Issuance Cost and Discount
|
||||||||
5.25% senior notes due April 15, 2025
|
|
$
|
175,000
|
|
|
$
|
(1,743
|
)
|
|
$
|
175,000
|
|
|
$
|
(1,826
|
)
|
Total
|
|
$
|
175,000
|
|
|
$
|
(1,743
|
)
|
|
$
|
175,000
|
|
|
$
|
(1,826
|
)
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
($ in thousands)
|
|
Notional Amount
|
|
Fair Value(1)
|
|
Notional Amount
|
|
Fair Value(1)
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and caps on loans
|
|
$
|
130,121
|
|
|
$
|
4,119
|
|
|
$
|
103,812
|
|
|
$
|
1,534
|
|
Foreign exchange contracts
|
|
1,209
|
|
|
30
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
131,330
|
|
|
$
|
4,149
|
|
|
$
|
103,812
|
|
|
$
|
1,534
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and caps on loans
|
|
$
|
673,514
|
|
|
$
|
14,041
|
|
|
$
|
103,812
|
|
|
1,600
|
|
|
Foreign exchange contracts
|
|
1,209
|
|
|
14
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
674,723
|
|
|
$
|
14,055
|
|
|
$
|
103,812
|
|
|
$
|
1,600
|
|
(1)
|
The fair value of derivative assets and derivative liabilities are included in other assets and accrued expenses and other liabilities, respectively, in the accompanying consolidated balance sheets.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Stock options
|
|
$
|
(24
|
)
|
|
$
|
80
|
|
|
$
|
(16
|
)
|
|
$
|
113
|
|
Restricted stock awards and units
|
|
1,521
|
|
|
1,708
|
|
|
2,366
|
|
|
3,762
|
|
||||
Total share-based compensation expense
|
|
$
|
1,497
|
|
|
$
|
1,788
|
|
|
$
|
2,350
|
|
|
$
|
3,875
|
|
Related tax benefits
|
|
$
|
440
|
|
|
$
|
524
|
|
|
$
|
691
|
|
|
$
|
1,136
|
|
($ in thousands)
|
|
Unrecognized Expense
|
|
Weighted-Average Remaining Expected Recognition Period
|
||
Stock option awards
|
|
$
|
11
|
|
|
1.0 year
|
Restricted stock awards and restricted stock units
|
|
12,826
|
|
|
2.5 years
|
|
Total
|
|
$
|
12,837
|
|
|
2.5 years
|
|
|
Three Months Ended June 30, 2019
|
|||||||||||
($ in thousands except per share data)
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|
Weighted-Average Remaining Contract Term
|
|
Aggregated Intrinsic Value
|
|||||
Outstanding at beginning of period
|
|
170,973
|
|
|
$
|
13.56
|
|
|
5.5 years
|
|
|
||
Exercised
|
|
(1,836
|
)
|
|
$
|
10.90
|
|
|
5.1 years
|
|
|
||
Forfeited
|
|
(33,616
|
)
|
|
$
|
13.37
|
|
|
6.0 years
|
|
|
||
Outstanding at end of period
|
|
135,521
|
|
|
$
|
13.65
|
|
|
5.1 years
|
|
$
|
43
|
|
Exercisable at end of period
|
|
127,673
|
|
|
$
|
13.67
|
|
|
5.0 years
|
|
$
|
38
|
|
|
|
Six Months Ended June 30, 2019
|
|||||||||||
($ in thousands except per share data)
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|
Weighted-Average Remaining Contract Term
|
|
Aggregated Intrinsic Value
|
|||||
Outstanding at beginning of period
|
|
186,973
|
|
|
$
|
13.54
|
|
|
5.8 years
|
|
|
|
|
Exercised
|
|
(1,836
|
)
|
|
$
|
10.90
|
|
|
5.1 years
|
|
|
||
Forfeited
|
|
(49,616
|
)
|
|
$
|
13.34
|
|
|
6.1 years
|
|
|
|
|
Outstanding at end of period
|
|
135,521
|
|
|
$
|
13.65
|
|
|
5.1 years
|
|
$
|
43
|
|
Exercisable at end of period
|
|
127,673
|
|
|
$
|
13.67
|
|
|
5.0 years
|
|
$
|
38
|
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||||||||
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|
Number of Shares
|
|
Weighted-Average
Exercise Price Per Share |
||||||
Outstanding at beginning of period
|
|
47,848
|
|
|
$
|
13.30
|
|
|
63,848
|
|
|
$
|
13.30
|
|
Vested
|
|
(12,000
|
)
|
|
$
|
13.29
|
|
|
(12,000
|
)
|
|
$
|
13.29
|
|
Forfeited
|
|
(28,000
|
)
|
|
$
|
13.29
|
|
|
(44,000
|
)
|
|
$
|
13.29
|
|
Outstanding at end of period
|
|
7,848
|
|
|
$
|
13.35
|
|
|
7,848
|
|
|
$
|
13.35
|
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||||||||
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value Per Share
|
|
Number of Shares
|
|
Weighted
Average Grant
Date Fair Value
Per Share |
||||||
Outstanding at beginning of period
|
|
848,644
|
|
|
$
|
18.20
|
|
|
833,601
|
|
|
$
|
19.02
|
|
Granted (1)
|
|
587,804
|
|
|
$
|
14.23
|
|
|
723,398
|
|
|
$
|
14.33
|
|
Vested (2)
|
|
(201,816
|
)
|
|
$
|
19.07
|
|
|
(215,257
|
)
|
|
$
|
18.94
|
|
Forfeited (3)
|
|
(127,778
|
)
|
|
$
|
18.19
|
|
|
(234,888
|
)
|
|
$
|
19.19
|
|
Outstanding at end of period
|
|
1,106,854
|
|
|
$
|
15.93
|
|
|
1,106,854
|
|
|
$
|
15.93
|
|
(1)
|
There were 151,395 performance-based shares/units included in shares granted for the three and six months ended June 30, 2019.
|
(2)
|
There were 37,572 performance-based shares/units included in vested shares for the three and six months ended June 30, 2019.
|
(3)
|
The number of forfeited shares includes aggregate performance-based shares/units of 69,966 and 142,533 for the three and six months ended June 30, 2019, respectively.
|
|
|
Three Months Ended June 30, 2019
|
|||||||||||
($ in thousands except per share data)
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|
Weighted-Average Remaining Contract Term
|
|
Aggregated Intrinsic Value
|
|||||
Outstanding at beginning of period
|
|
1,559,012
|
|
|
$
|
11.60
|
|
|
3.4 years
|
|
$
|
3,488
|
|
Outstanding at end of period
|
|
1,559,012
|
|
|
$
|
11.60
|
|
|
3.2 years
|
|
$
|
3,691
|
|
Exercisable at end of period
|
|
1,559,012
|
|
|
$
|
11.60
|
|
|
3.2 years
|
|
$
|
3,691
|
|
|
|
Six Months Ended June 30,
|
|||||||||||
($ in thousands except per share data)
|
|
Number of Shares
|
|
Weighted-Average Exercise Price Per Share
|
|
Weighted-Average Remaining Contract Term
|
|
Aggregated Intrinsic Value
|
|||||
Outstanding at beginning of period
|
|
1,559,012
|
|
|
$
|
11.60
|
|
|
3.6 years
|
|
$
|
2,662
|
|
Outstanding at end of period
|
|
1,559,012
|
|
|
$
|
11.60
|
|
|
3.2 years
|
|
$
|
3,691
|
|
Exercisable at end of period
|
|
1,559,012
|
|
|
$
|
11.60
|
|
|
3.2 years
|
|
$
|
3,691
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Shares Authorized and Outstanding
|
|
Liquidation Preference
|
|
Carrying Value
|
|
Shares Authorized and Outstanding
|
|
Liquidation Preference
|
|
Carrying Value
|
||||||||||||
Series C
8.00% non-cumulative perpetual |
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Series D
7.375% non-cumulative perpetual |
|
115,000
|
|
|
115,000
|
|
|
110,873
|
|
|
115,000
|
|
|
115,000
|
|
|
110,873
|
|
||||||
Series E
7.00% non-cumulative perpetual |
|
125,000
|
|
|
125,000
|
|
|
120,255
|
|
|
125,000
|
|
|
125,000
|
|
|
120,255
|
|
||||||
Total
|
|
$
|
240,000
|
|
|
$
|
240,000
|
|
|
$
|
231,128
|
|
|
$
|
240,000
|
|
|
$
|
240,000
|
|
|
$
|
231,128
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Unrealized gain (loss) on securities available-for-sale
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
|
$
|
(18,091
|
)
|
|
$
|
(11,542
|
)
|
|
$
|
(24,117
|
)
|
|
$
|
5,227
|
|
Unrealized gain (loss) arising during the period
|
|
7,678
|
|
|
(10,796
|
)
|
|
16,422
|
|
|
(30,478
|
)
|
||||
Reclassification adjustment from other comprehensive income
|
|
—
|
|
|
(278
|
)
|
|
(208
|
)
|
|
(5,519
|
)
|
||||
Tax effect of current period changes
|
|
(2,255
|
)
|
|
3,246
|
|
|
(4,765
|
)
|
|
10,904
|
|
||||
Total changes, net of taxes
|
|
5,423
|
|
|
(7,828
|
)
|
|
11,449
|
|
|
(25,093
|
)
|
||||
Reclassification of stranded tax effects to retained earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|
496
|
|
||||
Balance at end of period
|
|
$
|
(12,668
|
)
|
|
$
|
(19,370
|
)
|
|
$
|
(12,668
|
)
|
|
$
|
(19,370
|
)
|
($ in thousands)
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Cash
|
|
$
|
3,610
|
|
|
$
|
3,012
|
|
Equipment, net of depreciation
|
|
252,888
|
|
|
259,464
|
|
||
Other assets
|
|
4,842
|
|
|
4,470
|
|
||
Total unconsolidated assets
|
|
$
|
261,340
|
|
|
$
|
266,946
|
|
Total unconsolidated liabilities
|
|
$
|
6,166
|
|
|
$
|
6,269
|
|
Maximum loss exposure
|
|
$
|
30,429
|
|
|
$
|
28,988
|
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||
($ in thousands except per share data)
|
|
Common Stock
|
|
Class B Common Stock
|
|
Total
|
|
Common Stock
|
|
Class B Common Stock
|
|
Total
|
||||||||||||
Income from continuing operations
|
|
$
|
16,426
|
|
|
$
|
156
|
|
|
$
|
16,582
|
|
|
$
|
23,397
|
|
|
$
|
222
|
|
|
$
|
23,619
|
|
Less: income allocated to participating securities
|
|
(268
|
)
|
|
(3
|
)
|
|
(271
|
)
|
|
(152
|
)
|
|
(1
|
)
|
|
(153
|
)
|
||||||
Less: participating securities dividends
|
|
(93
|
)
|
|
(1
|
)
|
|
(94
|
)
|
|
(292
|
)
|
|
(3
|
)
|
|
(295
|
)
|
||||||
Less: preferred stock dividends
|
|
(4,268
|
)
|
|
(40
|
)
|
|
(4,308
|
)
|
|
(8,535
|
)
|
|
(81
|
)
|
|
(8,616
|
)
|
||||||
Income from continuing operations allocated to common stockholders
|
|
11,797
|
|
|
112
|
|
|
11,909
|
|
|
14,418
|
|
|
137
|
|
|
14,555
|
|
||||||
Income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income allocated to common stockholders
|
|
$
|
11,797
|
|
|
$
|
112
|
|
|
$
|
11,909
|
|
|
$
|
14,418
|
|
|
$
|
137
|
|
|
$
|
14,555
|
|
Weighted average common shares outstanding
|
|
50,379,816
|
|
|
477,321
|
|
|
50,857,137
|
|
|
50,290,107
|
|
|
477,321
|
|
|
50,767,428
|
|
||||||
Dilutive effects of stock units
|
|
103,677
|
|
|
—
|
|
|
103,677
|
|
|
119,967
|
|
|
—
|
|
|
119,967
|
|
||||||
Dilutive effects of stock options
|
|
4,142
|
|
|
—
|
|
|
4,142
|
|
|
7,795
|
|
|
—
|
|
|
7,795
|
|
||||||
Dilutive effects of warrants
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Average shares and dilutive common shares
|
|
50,487,635
|
|
|
477,321
|
|
|
50,964,956
|
|
|
50,417,869
|
|
|
477,321
|
|
|
50,895,190
|
|
||||||
Basic earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
Income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
Income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||
($ in thousands except per share data)
|
|
Common Stock
|
|
Class B Common Stock
|
|
Total
|
|
Common Stock
|
|
Class B Common Stock
|
|
Total
|
||||||||||||
Income from continuing operations
|
|
$
|
13,709
|
|
|
$
|
145
|
|
|
$
|
13,854
|
|
|
$
|
20,713
|
|
|
$
|
215
|
|
|
$
|
20,928
|
|
Less: income allocated to participating securities
|
|
(85
|
)
|
|
(1
|
)
|
|
(86
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Less: participating securities dividends
|
|
(201
|
)
|
|
(2
|
)
|
|
(203
|
)
|
|
(402
|
)
|
|
(4
|
)
|
|
(406
|
)
|
||||||
Less: preferred stock dividends
|
|
(5,059
|
)
|
|
(54
|
)
|
|
(5,113
|
)
|
|
(10,121
|
)
|
|
(105
|
)
|
|
(10,226
|
)
|
||||||
Income from continuing operations allocated to common stockholders
|
|
8,364
|
|
|
88
|
|
|
8,452
|
|
|
10,190
|
|
|
106
|
|
|
10,296
|
|
||||||
Income from discontinued operations
|
|
916
|
|
|
10
|
|
|
926
|
|
|
2,385
|
|
|
25
|
|
|
2,410
|
|
||||||
Net income allocated to common stockholders
|
|
$
|
9,280
|
|
|
$
|
98
|
|
|
$
|
9,378
|
|
|
$
|
12,575
|
|
|
$
|
131
|
|
|
$
|
12,706
|
|
Weighted average common shares outstanding
|
|
50,062,442
|
|
|
530,987
|
|
|
50,593,429
|
|
|
50,072,385
|
|
|
519,610
|
|
|
50,591,995
|
|
||||||
Dilutive effects of stock units
|
|
211,380
|
|
|
—
|
|
|
211,380
|
|
|
153,029
|
|
|
—
|
|
|
153,029
|
|
||||||
Dilutive effects of stock options
|
|
40,561
|
|
|
—
|
|
|
40,561
|
|
|
44,082
|
|
|
—
|
|
|
44,082
|
|
||||||
Dilutive effects of warrants
|
|
73,721
|
|
|
—
|
|
|
73,721
|
|
|
111,781
|
|
|
—
|
|
|
111,781
|
|
||||||
Average shares and dilutive common shares
|
|
50,388,104
|
|
|
530,987
|
|
|
50,919,091
|
|
|
50,381,277
|
|
|
519,610
|
|
|
50,900,887
|
|
||||||
Basic earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
Income from discontinued operations
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
||||||
Net income
|
|
$
|
0.19
|
|
|
$
|
0.19
|
|
|
$
|
0.19
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations
|
|
$
|
0.16
|
|
|
$
|
0.17
|
|
|
$
|
0.16
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
Income from discontinued operations
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
||||||
Net income
|
|
$
|
0.18
|
|
|
$
|
0.19
|
|
|
$
|
0.18
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
($ in thousands)
|
|
Fixed Rate
|
|
Variable Rate
|
|
Fixed Rate
|
|
Variable Rate
|
||||||||
Commitments to extend credit (1)
|
|
$
|
60
|
|
|
$
|
247,435
|
|
|
$
|
2,167
|
|
|
$
|
288,770
|
|
Unused lines of credit
|
|
817
|
|
|
904,298
|
|
|
1,514
|
|
|
1,119,158
|
|
||||
Letters of credit
|
|
1,847
|
|
|
8,402
|
|
|
1,266
|
|
|
8,561
|
|
(1)
|
Included no commitments to extend credit related to discontinued operations at December 31, 2018.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Noninterest income
|
|
|
|
|
|
|
|
|
||||||||
In scope of Topic 606
|
|
|
|
|
|
|
|
|
||||||||
Deposit service fees
|
|
$
|
575
|
|
|
$
|
708
|
|
|
$
|
1,242
|
|
|
$
|
1,486
|
|
Debit card fees
|
|
178
|
|
|
177
|
|
|
291
|
|
|
402
|
|
||||
Investment commissions
|
|
260
|
|
|
619
|
|
|
539
|
|
|
942
|
|
||||
Other
|
|
109
|
|
|
—
|
|
|
216
|
|
|
155
|
|
||||
Noninterest income (in-scope of Topic 606)
|
|
1,122
|
|
|
1,504
|
|
|
2,288
|
|
|
2,985
|
|
||||
Noninterest (loss) income (out-of-scope of Topic 606)
|
|
(3,412
|
)
|
|
6,557
|
|
|
1,717
|
|
|
13,658
|
|
||||
Total noninterest (loss) income
|
|
$
|
(2,290
|
)
|
|
$
|
8,061
|
|
|
$
|
4,005
|
|
|
$
|
16,643
|
|
•
|
Net interest margin increased by 5 basis points from the prior quarter to 2.86% for the second quarter, resulting from a 5 basis point decline in our cost of deposits
|
•
|
Loan production was $599 million for the quarter, including $186 million of commercial and industrial loan commitments
|
•
|
Loan delinquencies decreased by 12.2% from the prior quarter to $52.2 million
|
•
|
Held-for-investment loan balances for the second quarter decreased to $6.7 billion as we sold lower coupon single family and multifamily loans and transferred $574 million of multifamily loans to held-for-sale, pending a planned Freddie Mac securitization
|
•
|
Collateralized loan obligations declined to $737.2 million following $298.2 million of sales and calls
|
•
|
Noninterest expense was $43.6 million for the quarter, including $6.2 million of litigation, indemnification, investigation and other legal fees, $12.6 million of insurance recoveries, and net project charge-offs of $869 thousand
|
•
|
The Company's Common Equity Tier 1 ratio was 10.50% at June 30, 2019, compared to 9.53% at December 31, 2018.
|
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Continuing Operations
|
|
Discontinued Operations
|
|
Consolidated Operations
|
|
Continuing Operations
|
|
Discontinued Operations
|
|
Consolidated Operations
|
||||||||||||
Interest and dividend income
|
|
$
|
105,185
|
|
|
$
|
189
|
|
|
$
|
105,374
|
|
|
$
|
203,892
|
|
|
$
|
375
|
|
|
$
|
204,267
|
|
Interest expense
|
|
32,421
|
|
|
—
|
|
|
32,421
|
|
|
59,690
|
|
|
—
|
|
|
59,690
|
|
||||||
Net interest income
|
|
72,764
|
|
|
189
|
|
|
72,953
|
|
|
144,202
|
|
|
375
|
|
|
144,577
|
|
||||||
Provision for loan losses
|
|
2,653
|
|
|
—
|
|
|
2,653
|
|
|
22,152
|
|
|
—
|
|
|
22,152
|
|
||||||
Noninterest income
|
|
8,061
|
|
|
1,107
|
|
|
9,168
|
|
|
16,643
|
|
|
2,977
|
|
|
19,620
|
|
||||||
Noninterest expense
|
|
62,539
|
|
|
15
|
|
|
62,554
|
|
|
122,339
|
|
|
27
|
|
|
122,366
|
|
||||||
Income from continuing operations before income taxes
|
|
15,633
|
|
|
1,281
|
|
|
16,914
|
|
|
16,354
|
|
|
3,325
|
|
|
19,679
|
|
||||||
Income tax (benefit) expense
|
|
1,779
|
|
|
355
|
|
|
2,134
|
|
|
(4,574
|
)
|
|
915
|
|
|
(3,659
|
)
|
||||||
Net income
|
|
$
|
13,854
|
|
|
$
|
926
|
|
|
$
|
14,780
|
|
|
$
|
20,928
|
|
|
$
|
2,410
|
|
|
$
|
23,338
|
|
|
|
Three Months Ended
|
|||||||||||||||||||||||||||||||
|
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|||||||||||||||||||||||||||
($ in thousands)
|
|
Average Balance
|
|
Interest and Dividends
|
|
Yield/Cost
|
|
Average Balance
|
|
Interest and Dividends
|
|
Yield/Cost
|
|
Average Balance
|
|
Interest and Dividends
|
|
Yield/Cost
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total loans(1)
|
|
$
|
7,445,704
|
|
|
$
|
89,159
|
|
|
4.80
|
%
|
|
$
|
7,714,751
|
|
|
$
|
90,558
|
|
|
4.76
|
%
|
|
$
|
7,055,079
|
|
|
$
|
81,496
|
|
|
4.63
|
%
|
Securities
|
|
1,304,876
|
|
|
12,457
|
|
|
3.83
|
%
|
|
1,751,509
|
|
|
17,841
|
|
|
4.13
|
%
|
|
2,279,416
|
|
|
21,455
|
|
|
3.78
|
%
|
||||||
Other interest-earning assets (2)
|
|
342,908
|
|
|
2,424
|
|
|
2.84
|
%
|
|
321,823
|
|
|
2,313
|
|
|
2.91
|
%
|
|
392,342
|
|
|
2,423
|
|
|
2.48
|
%
|
||||||
Total interest-earning assets
|
|
9,093,488
|
|
|
104,040
|
|
|
4.59
|
%
|
|
9,788,083
|
|
|
110,712
|
|
|
4.59
|
%
|
|
9,726,837
|
|
|
105,374
|
|
|
4.35
|
%
|
||||||
ALLL
|
|
(63,046
|
)
|
|
|
|
|
|
(61,924
|
)
|
|
|
|
|
|
(54,903
|
)
|
|
|
|
|
||||||||||||
BOLI and non-interest earning assets (3)
|
|
580,133
|
|
|
|
|
|
|
575,558
|
|
|
|
|
|
|
565,224
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
9,610,575
|
|
|
|
|
|
|
$
|
10,301,717
|
|
|
|
|
|
|
$
|
10,237,158
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings
|
|
$
|
1,083,571
|
|
|
4,950
|
|
|
1.83
|
%
|
|
$
|
1,201,802
|
|
|
5,480
|
|
|
1.85
|
%
|
|
$
|
1,055,693
|
|
|
3,886
|
|
|
1.48
|
%
|
|||
Interest-bearing checking
|
|
1,580,165
|
|
|
4,554
|
|
|
1.16
|
%
|
|
1,554,846
|
|
|
4,525
|
|
|
1.18
|
%
|
|
1,822,856
|
|
|
4,182
|
|
|
0.92
|
%
|
||||||
Money market
|
|
853,007
|
|
|
3,902
|
|
|
1.83
|
%
|
|
887,538
|
|
|
4,128
|
|
|
1.89
|
%
|
|
1,134,280
|
|
|
3,689
|
|
|
1.30
|
%
|
||||||
Certificates of deposit
|
|
2,537,060
|
|
|
15,192
|
|
|
2.40
|
%
|
|
2,982,980
|
|
|
17,310
|
|
|
2.35
|
%
|
|
2,079,932
|
|
|
8,558
|
|
|
1.65
|
%
|
||||||
Total interest-bearing deposits
|
|
6,053,803
|
|
|
28,598
|
|
|
1.89
|
%
|
|
6,627,166
|
|
|
31,443
|
|
|
1.92
|
%
|
|
6,092,761
|
|
|
20,315
|
|
|
1.34
|
%
|
||||||
FHLB advances
|
|
1,287,121
|
|
|
8,289
|
|
|
2.58
|
%
|
|
1,422,100
|
|
|
9,081
|
|
|
2.59
|
%
|
|
1,827,307
|
|
|
9,539
|
|
|
2.09
|
%
|
||||||
Securities sold under repurchase agreements
|
|
2,173
|
|
|
16
|
|
|
2.95
|
%
|
|
2,350
|
|
|
18
|
|
|
3.11
|
%
|
|
29,907
|
|
|
211
|
|
|
2.83
|
%
|
||||||
Long term debt and other interest-bearing liabilities
|
|
174,161
|
|
|
2,357
|
|
|
5.43
|
%
|
|
174,230
|
|
|
2,362
|
|
|
5.50
|
%
|
|
174,296
|
|
|
2,356
|
|
|
5.42
|
%
|
||||||
Total interest-bearing liabilities
|
|
7,517,258
|
|
|
39,260
|
|
|
2.09
|
%
|
|
8,225,846
|
|
|
42,904
|
|
|
2.12
|
%
|
|
8,124,271
|
|
|
32,421
|
|
|
1.60
|
%
|
||||||
Noninterest-bearing deposits
|
|
1,034,205
|
|
|
|
|
|
|
1,021,741
|
|
|
|
|
|
|
1,004,502
|
|
|
|
|
|
||||||||||||
Non-interest-bearing liabilities
|
|
96,179
|
|
|
|
|
|
|
97,426
|
|
|
|
|
|
|
107,529
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
8,647,642
|
|
|
|
|
|
|
9,345,013
|
|
|
|
|
|
|
9,236,302
|
|
|
|
|
|
||||||||||||
Total stockholders’ equity
|
|
962,933
|
|
|
|
|
|
|
956,704
|
|
|
|
|
|
|
1,000,856
|
|
|
|
|
|
||||||||||||
Total liabilities and stockholders’ equity
|
|
$
|
9,610,575
|
|
|
|
|
|
|
$
|
10,301,717
|
|
|
|
|
|
|
$
|
10,237,158
|
|
|
|
|
|
|||||||||
Net interest income/spread
|
|
|
|
$
|
64,780
|
|
|
2.50
|
%
|
|
|
|
$
|
67,808
|
|
|
2.47
|
%
|
|
|
|
$
|
72,953
|
|
|
2.75
|
%
|
||||||
Net interest margin (4)
|
|
|
|
|
|
2.86
|
%
|
|
|
|
|
|
2.81
|
%
|
|
|
|
|
|
3.01
|
%
|
(1)
|
For the three months ended June 30, 2018, total loans includes average loans and related interest income from discontinued operations. Total loans are net of deferred fees, related direct costs and discounts, but exclude the allowance for loan losses. Non-accrual loans are included in the average balance. Net (amortization) accretion of deferred loan fees and costs of $106 thousand, $(289) thousand and $106 thousand and accretion of discount on purchased loans of $28 thousand, $97 thousand and $552 thousand for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively, are included in interest income.
|
(2)
|
Includes average balance of FHLB and other bank stock at cost and average time deposits with other financial institutions.
|
(3)
|
Includes average balance of bank-owned life insurance of $107.8 million, $107.2 million and $105.6 million for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively.
|
(4)
|
Annualized net interest income divided by average interest-earning assets.
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
($ in thousands)
|
|
Average Balance
|
|
Interest and Dividends
|
|
Yield/Cost
|
|
Average Balance
|
|
Interest and Dividends
|
|
Yield/Cost
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans (1)
|
|
$
|
7,579,485
|
|
|
$
|
179,717
|
|
|
4.78
|
%
|
|
$
|
6,930,867
|
|
|
$
|
156,594
|
|
|
4.56
|
%
|
Securities
|
|
1,526,959
|
|
|
30,298
|
|
|
4.00
|
%
|
|
2,401,639
|
|
|
43,086
|
|
|
3.62
|
%
|
||||
Other interest-earning assets (2)
|
|
332,424
|
|
|
4,737
|
|
|
2.87
|
%
|
|
399,662
|
|
|
4,587
|
|
|
2.31
|
%
|
||||
Total interest-earning assets
|
|
9,438,868
|
|
|
214,752
|
|
|
4.59
|
%
|
|
9,732,168
|
|
|
204,267
|
|
|
4.23
|
%
|
||||
ALLL
|
|
(62,488
|
)
|
|
|
|
|
|
(52,095
|
)
|
|
|
|
|
||||||||
BOLI and non-interest earning assets (3)
|
|
577,858
|
|
|
|
|
|
|
570,050
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
9,954,238
|
|
|
|
|
|
|
$
|
10,250,123
|
|
|
|
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings
|
|
$
|
1,142,360
|
|
|
10,429
|
|
|
1.84
|
%
|
|
$
|
1,055,516
|
|
|
7,186
|
|
|
1.37
|
%
|
||
Interest-bearing checking
|
|
1,567,575
|
|
|
9,079
|
|
|
1.17
|
%
|
|
1,899,085
|
|
|
8,291
|
|
|
0.88
|
%
|
||||
Money market
|
|
870,177
|
|
|
8,031
|
|
|
1.86
|
%
|
|
1,105,359
|
|
|
6,523
|
|
|
1.19
|
%
|
||||
Certificates of deposit
|
|
2,758,789
|
|
|
32,502
|
|
|
2.38
|
%
|
|
1,993,723
|
|
|
15,110
|
|
|
1.53
|
%
|
||||
Total interest-bearing deposits
|
|
6,338,901
|
|
|
60,041
|
|
|
1.91
|
%
|
|
6,053,683
|
|
|
37,110
|
|
|
1.24
|
%
|
||||
FHLB advances
|
|
1,354,238
|
|
|
17,370
|
|
|
2.59
|
%
|
|
1,769,520
|
|
|
16,931
|
|
|
1.93
|
%
|
||||
Securities sold under repurchase agreements
|
|
2,261
|
|
|
34
|
|
|
3.03
|
%
|
|
74,477
|
|
|
961
|
|
|
2.60
|
%
|
||||
Long term debt and other interest-bearing liabilities
|
|
174,195
|
|
|
4,719
|
|
|
5.46
|
%
|
|
174,360
|
|
|
4,688
|
|
|
5.42
|
%
|
||||
Total interest-bearing liabilities
|
|
7,869,595
|
|
|
82,164
|
|
|
2.11
|
%
|
|
8,072,040
|
|
|
59,690
|
|
|
1.49
|
%
|
||||
Noninterest-bearing deposits
|
|
1,028,008
|
|
|
|
|
|
|
1,030,457
|
|
|
|
|
|
||||||||
Non-interest-bearing liabilities
|
|
96,801
|
|
|
|
|
|
|
137,271
|
|
|
|
|
|
||||||||
Total liabilities
|
|
8,994,404
|
|
|
|
|
|
|
9,239,768
|
|
|
|
|
|
||||||||
Total stockholders’ equity
|
|
959,834
|
|
|
|
|
|
|
1,010,355
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
9,954,238
|
|
|
|
|
|
|
$
|
10,250,123
|
|
|
|
|
|
||||||
Net interest income/spread
|
|
|
|
$
|
132,588
|
|
|
2.48
|
%
|
|
|
|
$
|
144,577
|
|
|
2.74
|
%
|
||||
Net interest margin (4)
|
|
|
|
|
|
2.83
|
%
|
|
|
|
|
|
3.00
|
%
|
(1)
|
For the six months ended June 30, 2018, total loans includes average loans and related interest income from discontinued operations. Total loans are net of deferred fees, related direct costs and discounts, but exclude the allowance for loan losses. Non-accrual loans are included in the average balance. Net (amortization) accretion of deferred loan fees and
|
(2)
|
Includes average balance of FHLB and other bank stock at cost and average time deposits with other financial institutions.
|
(3)
|
Includes average balance of bank-owned life insurance of $107.5 million and $105.3 million for the six months ended June 30, 2019 and 2018, respectively.
|
(4)
|
Annualized net interest income divided by average interest-earning assets.
|
|
|
Three Months Ended
June 30, 2019 vs. 2018
|
|
Six Months Ended
June 30, 2019 vs. 2018
|
||||||||||||||||||||
|
|
Increase (Decrease) Due to
|
|
Net Increase (Decrease)
|
|
Increase (Decrease) Due to
|
|
Net
Increase (Decrease) |
||||||||||||||||
($ In thousands)
|
|
Volume
|
|
Rate
|
|
|
Volume
|
|
Rate
|
|
||||||||||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans (1)
|
|
$
|
4,608
|
|
|
$
|
3,055
|
|
|
$
|
7,663
|
|
|
$
|
15,258
|
|
|
$
|
7,865
|
|
|
$
|
23,123
|
|
Securities
|
|
(9,279
|
)
|
|
281
|
|
|
(8,998
|
)
|
|
(16,953
|
)
|
|
4,165
|
|
|
(12,788
|
)
|
||||||
Other interest-earning assets
|
|
(327
|
)
|
|
328
|
|
|
1
|
|
|
(848
|
)
|
|
998
|
|
|
150
|
|
||||||
Total interest and dividend income
|
|
$
|
(4,998
|
)
|
|
$
|
3,664
|
|
|
$
|
(1,334
|
)
|
|
$
|
(2,543
|
)
|
|
$
|
13,028
|
|
|
$
|
10,485
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings
|
|
$
|
107
|
|
|
$
|
957
|
|
|
$
|
1,064
|
|
|
$
|
627
|
|
|
$
|
2,616
|
|
|
$
|
3,243
|
|
Interest-bearing checking
|
|
(612
|
)
|
|
984
|
|
|
372
|
|
|
(1,619
|
)
|
|
2,407
|
|
|
788
|
|
||||||
Money market
|
|
(1,053
|
)
|
|
1,266
|
|
|
213
|
|
|
(1,601
|
)
|
|
3,109
|
|
|
1,508
|
|
||||||
Certificates of deposit
|
|
2,162
|
|
|
4,472
|
|
|
6,634
|
|
|
7,105
|
|
|
10,287
|
|
|
17,392
|
|
||||||
FHLB advances
|
|
(3,186
|
)
|
|
1,936
|
|
|
(1,250
|
)
|
|
(4,535
|
)
|
|
4,974
|
|
|
439
|
|
||||||
Securities sold under repurchase agreements
|
|
(191
|
)
|
|
(4
|
)
|
|
(195
|
)
|
|
(1,063
|
)
|
|
136
|
|
|
(927
|
)
|
||||||
Long term debt and other interest-bearing liabilities
|
|
(2
|
)
|
|
3
|
|
|
1
|
|
|
(4
|
)
|
|
35
|
|
|
31
|
|
||||||
Total interest expense
|
|
(2,775
|
)
|
|
9,614
|
|
|
6,839
|
|
|
(1,090
|
)
|
|
23,564
|
|
|
22,474
|
|
||||||
Net interest income
|
|
$
|
(2,223
|
)
|
|
$
|
(5,950
|
)
|
|
$
|
(8,173
|
)
|
|
$
|
(1,453
|
)
|
|
$
|
(10,536
|
)
|
|
$
|
(11,989
|
)
|
(1)
|
For the three and six months ended June 30, 2018, total loans includes interest income from discontinued operations.
|
|
|
Three Months Ended
|
|
Six Months Ended June 30,
|
||||||||||||||||
($ in thousands)
|
|
June 30,
2019 |
|
March 31,
2019 |
|
June 30,
2018 |
|
2019
|
|
2018
|
||||||||||
Customer service fees
|
|
$
|
1,434
|
|
|
$
|
1,515
|
|
|
$
|
1,491
|
|
|
$
|
2,949
|
|
|
$
|
3,083
|
|
Loan servicing income
|
|
121
|
|
|
118
|
|
|
948
|
|
|
239
|
|
|
3,259
|
|
|||||
Income from bank owned life insurance
|
|
580
|
|
|
525
|
|
|
533
|
|
|
1,105
|
|
|
1,066
|
|
|||||
Net gain on sale of securities available-for-sale
|
|
—
|
|
|
208
|
|
|
278
|
|
|
208
|
|
|
5,519
|
|
|||||
Net gain on sale of loans
|
|
2,826
|
|
|
1,553
|
|
|
821
|
|
|
4,379
|
|
|
780
|
|
|||||
Net loss on sale of mortgage servicing rights
|
|
—
|
|
|
—
|
|
|
(155
|
)
|
|
—
|
|
|
(2,450
|
)
|
|||||
Other (loss) income
|
|
(7,251
|
)
|
|
2,376
|
|
|
4,145
|
|
|
(4,875
|
)
|
|
5,386
|
|
|||||
Total noninterest (loss) income
|
|
$
|
(2,290
|
)
|
|
$
|
6,295
|
|
|
$
|
8,061
|
|
|
$
|
4,005
|
|
|
$
|
16,643
|
|
|
|
Three Months Ended
|
|
Six Months Ended June 30,
|
||||||||||||||||
($ in thousands)
|
|
June 30,
2019 |
|
March 31,
2019 |
|
June 30,
2018 |
|
2019
|
|
2018
|
||||||||||
Salaries and employee benefits
|
|
$
|
27,506
|
|
|
$
|
28,439
|
|
|
$
|
29,440
|
|
|
$
|
55,945
|
|
|
$
|
60,555
|
|
Occupancy and equipment
|
|
7,955
|
|
|
7,686
|
|
|
7,883
|
|
|
15,641
|
|
|
15,570
|
|
|||||
Professional fees (reimbursement)
|
|
(2,903
|
)
|
|
11,041
|
|
|
6,303
|
|
|
8,138
|
|
|
15,480
|
|
|||||
Outside service fees
|
|
489
|
|
|
403
|
|
|
413
|
|
|
892
|
|
|
2,959
|
|
|||||
Data processing
|
|
1,672
|
|
|
1,496
|
|
|
1,678
|
|
|
3,168
|
|
|
3,334
|
|
|||||
Advertising
|
|
2,048
|
|
|
2,057
|
|
|
2,864
|
|
|
4,105
|
|
|
6,141
|
|
|||||
Regulatory assessments
|
|
2,136
|
|
|
2,482
|
|
|
2,196
|
|
|
4,618
|
|
|
4,288
|
|
|||||
Reversal of provision for loan repurchases
|
|
(61
|
)
|
|
(116
|
)
|
|
(218
|
)
|
|
(177
|
)
|
|
(2,006
|
)
|
|||||
Amortization of intangible assets
|
|
621
|
|
|
620
|
|
|
827
|
|
|
1,241
|
|
|
1,670
|
|
|||||
Restructuring (reversal) expense
|
|
(158
|
)
|
|
2,795
|
|
|
3,983
|
|
|
2,637
|
|
|
3,983
|
|
|||||
All other expense
|
|
4,637
|
|
|
2,982
|
|
|
5,362
|
|
|
7,619
|
|
|
8,591
|
|
|||||
Noninterest expense before (gain) loss on investments in alternative energy partnerships
|
|
43,942
|
|
|
59,885
|
|
|
60,731
|
|
|
103,827
|
|
|
120,565
|
|
|||||
(Gain) loss on investments in alternative energy partnerships
|
|
(355
|
)
|
|
1,950
|
|
|
1,808
|
|
|
1,595
|
|
|
1,774
|
|
|||||
Total noninterest expense
|
|
$
|
43,587
|
|
|
$
|
61,835
|
|
|
$
|
62,539
|
|
|
$
|
105,422
|
|
|
$
|
122,339
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
|
Unrealized Gain (Loss)
|
|
Amortized Cost
|
|
Fair Value
|
|
Unrealized Gain (Loss)
|
||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SBA loan pool securities
|
|
$
|
831
|
|
|
$
|
853
|
|
|
$
|
22
|
|
|
$
|
911
|
|
|
$
|
910
|
|
|
$
|
(1
|
)
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
436,049
|
|
|
429,347
|
|
|
(6,702
|
)
|
|
461,987
|
|
|
437,442
|
|
|
(24,545
|
)
|
||||||
Non-agency residential mortgage-backed securities
|
|
275
|
|
|
285
|
|
|
10
|
|
|
418
|
|
|
427
|
|
|
9
|
|
||||||
Non-agency commercial mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
132,199
|
|
|
132,199
|
|
|
—
|
|
||||||
Collateralized loan obligations
|
|
748,502
|
|
|
737,202
|
|
|
(11,300
|
)
|
|
1,431,171
|
|
|
1,421,522
|
|
|
(9,649
|
)
|
||||||
Total securities available-for-sale
|
|
$
|
1,185,657
|
|
|
$
|
1,167,687
|
|
|
$
|
(17,970
|
)
|
|
$
|
2,026,686
|
|
|
$
|
1,992,500
|
|
|
$
|
(34,186
|
)
|
|
|
One Year or Less
|
|
More than One Year through Five Years
|
|
More than Five Years through Ten Years
|
|
More than Ten Years
|
|
Total
|
|||||||||||||||||||||||||
($ in thousands)
|
|
Fair
Value
|
|
Weighted Average Yield
|
|
Fair
Value
|
|
Weighted Average Yield
|
|
Fair
Value
|
|
Weighted Average Yield
|
|
Fair
Value
|
|
Weighted Average Yield
|
|
Fair
Value
|
|
Weighted Average Yield
|
|||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
SBA loan pools securities
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
853
|
|
|
2.08
|
%
|
|
$
|
853
|
|
|
2.08
|
%
|
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities
|
|
243
|
|
|
2.36
|
%
|
|
3,069
|
|
|
2.67
|
%
|
|
—
|
|
|
—
|
%
|
|
426,035
|
|
|
2.74
|
%
|
|
429,347
|
|
|
2.74
|
%
|
|||||
Non-agency residential mortgage-backed securities
|
|
66
|
|
|
3.23
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
219
|
|
|
5.74
|
%
|
|
285
|
|
|
5.16
|
%
|
|||||
Collateralized loan obligations
|
|
737,202
|
|
|
3.71
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
737,202
|
|
|
3.71
|
%
|
|||||
Total securities available-for-sale
|
|
$
|
737,511
|
|
|
3.71
|
%
|
|
$
|
3,069
|
|
|
2.67
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
427,107
|
|
|
2.74
|
%
|
|
$
|
1,167,687
|
|
|
3.35
|
%
|
($ in thousands)
|
|
June 30,
2019 |
|
December 31, 2018
|
|
Amount Change
|
|
Percentage Change
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
|
$
|
1,951,707
|
|
|
$
|
1,944,142
|
|
|
$
|
7,565
|
|
|
0.4
|
%
|
Commercial real estate
|
|
856,497
|
|
|
867,013
|
|
|
(10,516
|
)
|
|
(1.2
|
)%
|
|||
Multifamily
|
|
1,598,978
|
|
|
2,241,246
|
|
|
(642,268
|
)
|
|
(28.7
|
)%
|
|||
SBA
|
|
80,929
|
|
|
68,741
|
|
|
12,188
|
|
|
17.7
|
%
|
|||
Construction
|
|
209,029
|
|
|
203,976
|
|
|
5,053
|
|
|
2.5
|
%
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|||||||
Single family residential mortgage
|
|
1,961,065
|
|
|
2,305,490
|
|
|
(344,425
|
)
|
|
(14.9
|
)%
|
|||
Other consumer
|
|
61,365
|
|
|
70,265
|
|
|
(8,900
|
)
|
|
(12.7
|
)%
|
|||
Total loans(1)
|
|
6,719,570
|
|
|
7,700,873
|
|
|
(981,303
|
)
|
|
(12.7
|
)%
|
|||
Allowance for loan losses
|
|
(59,523
|
)
|
|
(62,192
|
)
|
|
2,669
|
|
|
(4.3
|
)%
|
|||
Total loans receivable, net
|
|
$
|
6,660,047
|
|
|
$
|
7,638,681
|
|
|
$
|
(978,634
|
)
|
|
(12.8
|
)%
|
(1)
|
Total loans include deferred loan origination costs/(fees) and premiums/(discounts), net of $16.1 million and $17.7 million, respectively, at June 30, 2019 and December 31, 2018.
|
|
|
June 30, 2019
|
||||||||||||||||||||||||||||
|
|
By FICO Scores Obtained During the Quarter Ended June 30, 2019
|
|
By FICO Scores Obtained During the Quarter Ended March 31, 2019
|
|
Change
|
||||||||||||||||||||||||
($ in thousands)
|
|
Count
|
|
Amount
|
|
Percent
|
|
Count
|
|
Amount
|
|
Percent
|
|
Count
|
|
Amount
|
|
Percent
|
||||||||||||
FICO Score
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
800+
|
|
15
|
|
|
$
|
10,221
|
|
|
16.6
|
%
|
|
16
|
|
|
$
|
5,277
|
|
|
8.2
|
%
|
|
(1
|
)
|
|
$
|
4,944
|
|
|
93.7
|
%
|
700-799
|
|
42
|
|
|
28,744
|
|
|
46.8
|
%
|
|
45
|
|
|
34,651
|
|
|
53.8
|
%
|
|
(3
|
)
|
|
(5,907
|
)
|
|
(17.0
|
)%
|
|||
600-699
|
|
16
|
|
|
17,948
|
|
|
29.2
|
%
|
|
16
|
|
|
16,820
|
|
|
26.1
|
%
|
|
—
|
|
|
1,128
|
|
|
6.7
|
%
|
|||
<600
|
|
2
|
|
|
771
|
|
|
1.3
|
%
|
|
3
|
|
|
3,918
|
|
|
6.1
|
%
|
|
(1
|
)
|
|
(3,147
|
)
|
|
(80.3
|
)%
|
|||
No FICO
|
|
3
|
|
|
3,755
|
|
|
6.1
|
%
|
|
3
|
|
|
3,778
|
|
|
5.9
|
%
|
|
—
|
|
|
(23
|
)
|
|
(0.6
|
)%
|
|||
Totals
|
|
78
|
|
|
$
|
61,439
|
|
|
100.0
|
%
|
|
83
|
|
|
$
|
64,444
|
|
|
100.1
|
%
|
|
(5
|
)
|
|
$
|
(3,005
|
)
|
|
(4.7
|
)%
|
|
|
Green
|
|
Interest Only
|
|
Negative Amortization
|
|
Total
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Count
|
|
Amount
|
|
Percent
|
|
Count
|
|
Amount
|
|
Percent
|
|
Count
|
|
Amount
|
|
Percent
|
|
Count
|
|
Amount
|
|
Percent
|
||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
< 61%
|
|
60
|
|
|
$
|
45,675
|
|
|
74.4
|
%
|
|
267
|
|
|
$
|
442,601
|
|
|
65.1
|
%
|
|
10
|
|
|
$
|
3,219
|
|
|
100.0
|
%
|
|
337
|
|
|
$
|
491,495
|
|
|
66.0
|
%
|
61-80%
|
|
14
|
|
|
12,930
|
|
|
21.0
|
%
|
|
163
|
|
|
216,625
|
|
|
31.8
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
177
|
|
|
229,555
|
|
|
30.8
|
%
|
||||
81-100%
|
|
4
|
|
|
2,834
|
|
|
4.6
|
%
|
|
9
|
|
|
11,338
|
|
|
1.7
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
13
|
|
|
14,172
|
|
|
1.9
|
%
|
||||
> 100%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
5
|
|
|
9,797
|
|
|
1.4
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
5
|
|
|
9,797
|
|
|
1.3
|
%
|
||||
Total
|
|
78
|
|
|
$
|
61,439
|
|
|
100.0
|
%
|
|
444
|
|
|
$
|
680,361
|
|
|
100.0
|
%
|
|
10
|
|
|
$
|
3,219
|
|
|
100.0
|
%
|
|
532
|
|
|
$
|
745,019
|
|
|
100.0
|
%
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
< 61%
|
|
69
|
|
|
$
|
51,827
|
|
|
76.5
|
%
|
|
312
|
|
|
$
|
495,930
|
|
|
65.9
|
%
|
|
11
|
|
|
$
|
3,528
|
|
|
100.0
|
%
|
|
392
|
|
|
$
|
551,285
|
|
|
66.9
|
%
|
61-80%
|
|
17
|
|
|
13,476
|
|
|
19.9
|
%
|
|
201
|
|
|
245,568
|
|
|
32.6
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
218
|
|
|
259,044
|
|
|
31.4
|
%
|
||||
81-100%
|
|
2
|
|
|
2,426
|
|
|
3.6
|
%
|
|
5
|
|
|
7,441
|
|
|
1.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
7
|
|
|
9,867
|
|
|
1.2
|
%
|
||||
> 100%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
1
|
|
|
4,122
|
|
|
0.5
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
1
|
|
|
4,122
|
|
|
0.5
|
%
|
||||
Total
|
|
88
|
|
|
$
|
67,729
|
|
|
100.0
|
%
|
|
519
|
|
|
$
|
753,061
|
|
|
100.0
|
%
|
|
11
|
|
|
$
|
3,528
|
|
|
100.0
|
%
|
|
618
|
|
|
$
|
824,318
|
|
|
100.0
|
%
|
($ in thousands)
|
|
June 30,
2019 |
|
December 31, 2018
|
|
Amount Change
|
|
Percentage Change
|
|||||||
Loans past due 90 days or more still on accrual
|
|
$
|
275
|
|
|
$
|
470
|
|
|
$
|
(195
|
)
|
|
(41.5
|
)%
|
Non-accrual loans
|
|
28,499
|
|
|
21,585
|
|
|
6,914
|
|
|
32.0
|
%
|
|||
Total non-performing loans
|
|
28,774
|
|
|
22,055
|
|
|
6,719
|
|
|
30.5
|
%
|
|||
Other real estate owned
|
|
276
|
|
|
672
|
|
|
(396
|
)
|
|
(58.9
|
)%
|
|||
Total non-performing assets
|
|
$
|
29,050
|
|
|
$
|
22,727
|
|
|
$
|
6,323
|
|
|
27.8
|
%
|
Performing restructured loans (1)
|
|
$
|
20,245
|
|
|
$
|
5,745
|
|
|
$
|
14,500
|
|
|
252.4
|
%
|
Total non-performing loans to total loans
|
|
0.43
|
%
|
|
0.29
|
%
|
|
|
|
|
|||||
Total non-performing assets to total assets
|
|
0.31
|
%
|
|
0.21
|
%
|
|
|
|
|
|||||
ALLL to non-performing loans
|
|
206.86
|
%
|
|
281.99
|
%
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
($ in thousands)
|
|
ALLL
|
|
Loans Receivable
|
|
% of
Loans in Category to Total Loans
|
|
ALLL
|
|
Loans Receivable
|
|
% of
Loans in Category to
Total Loans
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
21,529
|
|
|
$
|
1,951,707
|
|
|
29.1
|
%
|
|
$
|
18,191
|
|
|
$
|
1,944,142
|
|
|
25.2
|
%
|
Commercial real estate
|
|
6,877
|
|
|
856,497
|
|
|
12.7
|
%
|
|
6,674
|
|
|
867,013
|
|
|
11.3
|
%
|
||||
Multifamily
|
|
12,625
|
|
|
1,598,978
|
|
|
23.8
|
%
|
|
17,970
|
|
|
2,241,246
|
|
|
29.1
|
%
|
||||
SBA
|
|
3,120
|
|
|
80,929
|
|
|
1.2
|
%
|
|
1,827
|
|
|
68,741
|
|
|
0.9
|
%
|
||||
Construction
|
|
3,715
|
|
|
209,029
|
|
|
3.1
|
%
|
|
3,461
|
|
|
203,976
|
|
|
2.7
|
%
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family residential mortgage
|
|
11,072
|
|
|
1,961,065
|
|
|
29.2
|
%
|
|
13,128
|
|
|
2,305,490
|
|
|
29.9
|
%
|
||||
Other consumer
|
|
585
|
|
|
61,365
|
|
|
0.9
|
%
|
|
941
|
|
|
70,265
|
|
|
0.9
|
%
|
||||
Total
|
|
$
|
59,523
|
|
|
$
|
6,719,570
|
|
|
100.0
|
%
|
|
$
|
62,192
|
|
|
$
|
7,700,873
|
|
|
100.0
|
%
|
($ in thousands)
|
|
June 30,
2019 |
|
December 31, 2018
|
|
Amount Change
|
|
Percentage Change
|
|||||||
Loan breakdown by origination type:
|
|
|
|
|
|
|
|
|
|||||||
Originated loans
|
|
$
|
6,181,583
|
|
|
$
|
7,105,171
|
|
|
$
|
(923,588
|
)
|
|
(13.0
|
)%
|
Acquired loans not impaired at acquisition
|
|
537,987
|
|
|
595,702
|
|
|
(57,715
|
)
|
|
(9.7
|
)%
|
|||
Total loans
|
|
$
|
6,719,570
|
|
|
$
|
7,700,873
|
|
|
$
|
(981,303
|
)
|
|
(12.7
|
)%
|
ALLL breakdown by origination type:
|
|
|
|
|
|
|
|
|
|||||||
Originated loans
|
|
$
|
58,135
|
|
|
$
|
61,255
|
|
|
$
|
(3,120
|
)
|
|
(5.1
|
)%
|
Acquired loans not impaired at acquisition
|
|
1,388
|
|
|
937
|
|
|
451
|
|
|
48.1
|
%
|
|||
Total ALLL
|
|
$
|
59,523
|
|
|
$
|
62,192
|
|
|
$
|
(2,669
|
)
|
|
(4.3
|
)%
|
Discount on purchased/acquired Loans:
|
|
|
|
|
|
|
|
|
|||||||
Acquired loans not impaired at acquisition
|
|
$
|
10,680
|
|
|
$
|
11,645
|
|
|
$
|
(965
|
)
|
|
(8.3
|
)%
|
Total discount
|
|
$
|
10,680
|
|
|
$
|
11,645
|
|
|
$
|
(965
|
)
|
|
(8.3
|
)%
|
Percentage of ALLL to:
|
|
|
|
|
|
|
|
|
|||||||
Originated loans
|
|
0.94
|
%
|
|
0.86
|
%
|
|
0.08
|
%
|
|
|
||||
Originated loans and acquired loans not impaired at acquisition
|
|
0.89
|
%
|
|
0.81
|
%
|
|
0.08
|
%
|
|
|
||||
Total loans
|
|
0.89
|
%
|
|
0.81
|
%
|
|
0.08
|
%
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
ALLL at beginning of period
|
|
$
|
63,885
|
|
|
$
|
54,763
|
|
|
$
|
62,192
|
|
|
$
|
49,333
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
(2,022
|
)
|
|
(276
|
)
|
|
(2,115
|
)
|
|
(347
|
)
|
||||
Multifamily
|
|
(6
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||
SBA
|
|
8
|
|
|
(302
|
)
|
|
(348
|
)
|
|
(683
|
)
|
||||
Single family residential mortgage
|
|
(425
|
)
|
|
(364
|
)
|
|
(951
|
)
|
|
(479
|
)
|
||||
Other consumer
|
|
(6
|
)
|
|
—
|
|
|
(94
|
)
|
|
(14,072
|
)
|
||||
Total charge-offs
|
|
(2,451
|
)
|
|
(950
|
)
|
|
(3,514
|
)
|
|
(15,589
|
)
|
||||
Recoveries:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
11
|
|
|
36
|
|
|
44
|
|
|
97
|
|
||||
SBA
|
|
60
|
|
|
167
|
|
|
101
|
|
|
232
|
|
||||
Lease financing
|
|
3
|
|
|
5
|
|
|
6
|
|
|
9
|
|
||||
Single family residential mortgage
|
|
—
|
|
|
—
|
|
|
150
|
|
|
436
|
|
||||
Other consumer
|
|
2
|
|
|
4
|
|
|
19
|
|
|
8
|
|
||||
Total recoveries
|
|
76
|
|
|
212
|
|
|
320
|
|
|
782
|
|
||||
Net charge-offs
|
|
(2,375
|
)
|
|
(738
|
)
|
|
(3,194
|
)
|
|
(14,807
|
)
|
||||
(Reversal of) Provision for loan losses
|
|
(1,987
|
)
|
|
2,653
|
|
|
525
|
|
|
22,152
|
|
||||
ALLL at end of period
|
|
$
|
59,523
|
|
|
$
|
56,678
|
|
|
$
|
59,523
|
|
|
$
|
56,678
|
|
Average total loans held-for-investment
|
|
$
|
7,398,471
|
|
|
$
|
7,000,288
|
|
|
$
|
7,540,137
|
|
|
$
|
6,855,041
|
|
Total loans held-for-investment at end of period
|
|
$
|
6,719,570
|
|
|
$
|
7,036,004
|
|
|
$
|
6,719,570
|
|
|
$
|
7,036,004
|
|
Ratios:
|
|
|
|
|
|
|
|
|
||||||||
Annualized net charge-offs to average total loans held-for-investment
|
|
0.13
|
%
|
|
0.04
|
%
|
|
0.08
|
%
|
|
0.43
|
%
|
||||
ALLL to total loans held-for-investment
|
|
0.89
|
%
|
|
0.81
|
%
|
|
0.89
|
%
|
|
0.81
|
%
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Balance at beginning of period
|
|
$
|
26,578
|
|
|
$
|
48,344
|
|
|
$
|
28,988
|
|
|
$
|
48,826
|
|
New funding
|
|
235
|
|
|
—
|
|
|
235
|
|
|
—
|
|
||||
Return of unused capital
|
|
—
|
|
|
(1,027
|
)
|
|
—
|
|
|
(1,027
|
)
|
||||
Cash distribution from investments
|
|
(535
|
)
|
|
(703
|
)
|
|
(995
|
)
|
|
(1,219
|
)
|
||||
Gain (loss) on investments using HLBV method
|
|
355
|
|
|
(1,808
|
)
|
|
(1,595
|
)
|
|
(1,774
|
)
|
||||
Balance at end of period
|
|
$
|
26,633
|
|
|
$
|
44,806
|
|
|
$
|
26,633
|
|
|
$
|
44,806
|
|
Unfunded equity commitments
|
|
$
|
3,796
|
|
|
$
|
—
|
|
|
$
|
3,796
|
|
|
$
|
—
|
|
($ in thousands)
|
|
June 30,
2019 |
|
December 31,
2018 |
|
Amount Change
|
|
Percentage Change
|
|||||||
Noninterest-bearing deposits
|
|
$
|
993,745
|
|
|
$
|
1,023,360
|
|
|
$
|
(29,615
|
)
|
|
(2.9
|
)%
|
Interest-bearing demand deposits
|
|
1,577,901
|
|
|
1,556,410
|
|
|
21,491
|
|
|
1.4
|
%
|
|||
Money market accounts
|
|
800,898
|
|
|
873,153
|
|
|
(72,255
|
)
|
|
(8.3
|
)%
|
|||
Savings accounts
|
|
1,061,115
|
|
|
1,265,847
|
|
|
(204,732
|
)
|
|
(16.2
|
)%
|
|||
Certificates of deposit of $250,000 or less
|
|
1,126,052
|
|
|
2,388,592
|
|
|
(1,262,540
|
)
|
|
(52.9
|
)%
|
|||
Certificates of deposit of more than $250,000
|
|
732,579
|
|
|
809,282
|
|
|
(76,703
|
)
|
|
(9.5
|
)%
|
|||
Total deposits
|
|
$
|
6,292,290
|
|
|
$
|
7,916,644
|
|
|
$
|
(1,624,354
|
)
|
|
(20.5
|
)%
|
($ in thousands)
|
|
Three Months or Less
|
|
Over Three Months Through Six Months
|
|
Over Six Months Through Twelve Months
|
|
Over One Year
|
|
Total
|
||||||||||
Certificates of deposit of $250,000 or less
|
|
$
|
410,842
|
|
|
$
|
215,937
|
|
|
$
|
318,964
|
|
|
$
|
180,309
|
|
|
$
|
1,126,052
|
|
Certificates of deposit of more than $250,000
|
|
324,211
|
|
|
147,467
|
|
|
189,731
|
|
|
71,170
|
|
|
732,579
|
|
|||||
Total certificates of deposit
|
|
$
|
735,053
|
|
|
$
|
363,404
|
|
|
$
|
508,695
|
|
|
$
|
251,479
|
|
|
$
|
1,858,631
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
($ in thousands)
|
|
Par Value
|
|
Unamortized Debt Issuance Cost and Discount
|
|
Par Value
|
|
Unamortized Debt Issuance Cost and Discount
|
||||||||
5.25% senior notes due April 15, 2025
|
|
$
|
175,000
|
|
|
$
|
(1,743
|
)
|
|
$
|
175,000
|
|
|
$
|
(1,826
|
)
|
Total
|
|
$
|
175,000
|
|
|
$
|
(1,743
|
)
|
|
$
|
175,000
|
|
|
$
|
(1,826
|
)
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Balance at beginning of period
|
|
$
|
4,208
|
|
|
$
|
4,293
|
|
|
$
|
4,622
|
|
|
$
|
3,716
|
|
(Reversal of) provision for unfunded loan commitments
|
|
87
|
|
|
(262
|
)
|
|
(327
|
)
|
|
315
|
|
||||
Balance at end of period
|
|
$
|
4,295
|
|
|
$
|
4,031
|
|
|
$
|
4,295
|
|
|
$
|
4,031
|
|
|
|
Commitments and Contractual Obligations
|
||||||||||||||||||
($ in thousands)
|
|
Total Amount Committed
|
|
Within Than One Year
|
|
More Than One Year Through Three Years
|
|
More Than Three Year Through Five Years
|
|
Over Five Years
|
||||||||||
Commitments to extend credit
|
|
$
|
247,495
|
|
|
$
|
70,337
|
|
|
$
|
141,269
|
|
|
$
|
4,051
|
|
|
$
|
31,838
|
|
Unused lines of credit
|
|
905,115
|
|
|
662,026
|
|
|
93,301
|
|
|
40,223
|
|
|
109,565
|
|
|||||
Standby letters of credit
|
|
10,249
|
|
|
7,545
|
|
|
2,152
|
|
|
157
|
|
|
395
|
|
|||||
Total commitments
|
|
$
|
1,162,859
|
|
|
$
|
739,908
|
|
|
$
|
236,722
|
|
|
$
|
44,431
|
|
|
$
|
141,798
|
|
FHLB advances
|
|
$
|
1,825,000
|
|
|
$
|
1,169,000
|
|
|
$
|
291,000
|
|
|
$
|
65,000
|
|
|
$
|
300,000
|
|
Long-term debt
|
|
173,257
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
173,257
|
|
|||||
Operating and capital lease obligations
|
|
28,469
|
|
|
6,698
|
|
|
14,381
|
|
|
3,262
|
|
|
4,128
|
|
|||||
Certificate of deposits
|
|
1,858,631
|
|
|
1,607,151
|
|
|
244,719
|
|
|
6,761
|
|
|
—
|
|
|||||
Total contractual obligations
|
|
$
|
3,885,357
|
|
|
$
|
2,782,849
|
|
|
$
|
550,100
|
|
|
$
|
75,023
|
|
|
$
|
477,385
|
|
|
|
|
|
|
|
Minimum Capital Requirements
|
|
Minimum Required to Be Well-Capitalized Under Prompt Corrective Action Provisions
|
|||||||||||||
($ in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Banc of California, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
$
|
983,254
|
|
|
15.00
|
%
|
|
$
|
524,366
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 risk-based capital
|
|
919,436
|
|
|
14.03
|
%
|
|
393,274
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Common equity tier 1 capital
|
|
688,308
|
|
|
10.50
|
%
|
|
294,956
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 leverage
|
|
919,436
|
|
|
9.62
|
%
|
|
382,152
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Banc of California, NA
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
$
|
1,094,864
|
|
|
16.70
|
%
|
|
$
|
524,349
|
|
|
8.00
|
%
|
|
$
|
655,436
|
|
|
10.00
|
%
|
Tier 1 risk-based capital
|
|
1,031,046
|
|
|
15.73
|
%
|
|
393,262
|
|
|
6.00
|
%
|
|
524,349
|
|
|
8.00
|
%
|
|||
Common equity tier 1 capital
|
|
1,031,046
|
|
|
15.73
|
%
|
|
294,946
|
|
|
4.50
|
%
|
|
426,033
|
|
|
6.50
|
%
|
|||
Tier 1 leverage
|
|
1,031,046
|
|
|
10.80
|
%
|
|
381,907
|
|
|
4.00
|
%
|
|
477,384
|
|
|
5.00
|
%
|
|||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Banc of California, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
$
|
977,342
|
|
|
13.71
|
%
|
|
$
|
570,368
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 risk-based capital
|
|
910,528
|
|
|
12.77
|
%
|
|
427,776
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Common equity tier 1 capital
|
|
679,400
|
|
|
9.53
|
%
|
|
320,832
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 leverage
|
|
910,528
|
|
|
8.95
|
%
|
|
407,145
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Banc of California, NA
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
$
|
1,120,122
|
|
|
15.71
|
%
|
|
$
|
570,832
|
|
|
8.00
|
%
|
|
$
|
712,977
|
|
|
10.00
|
%
|
Tier 1 risk-based capital
|
|
1,053,308
|
|
|
14.77
|
%
|
|
427,786
|
|
|
6.00
|
%
|
|
570,382
|
|
|
8.00
|
%
|
|||
Common equity tier 1 capital
|
|
1,053,308
|
|
|
14.77
|
%
|
|
320,840
|
|
|
4.50
|
%
|
|
463,435
|
|
|
6.50
|
%
|
|||
Tier 1 leverage
|
|
1,053,308
|
|
|
10.36
|
%
|
|
406,694
|
|
|
4.00
|
%
|
|
508,368
|
|
|
5.00
|
%
|
•
|
Originating and purchasing adjustable rate mortgage loans,
|
•
|
Selling longer duration fixed or hybrid mortgage loans,
|
•
|
Originating shorter-term consumer loans,
|
•
|
Managing the duration of investment securities,
|
•
|
Managing our deposits to establish stable deposit relationships,
|
•
|
Using FHLB advances and/or certain derivatives such as swaps to align maturities and repricing terms, and
|
•
|
Managing the percentage of fixed rate loans in our portfolio.
|
|
|
Change in Interest Rates in Basis Points (bps) (1)
|
||||||||||||||||||||
($ in thousands)
|
|
Economic Value of Equity
|
|
Net Interest Income
|
||||||||||||||||||
|
Amount
|
|
Amount Change
|
|
Percentage Change
|
|
Amount
|
|
Amount Change
|
|
Percentage Change
|
|||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
+200 bps
|
|
$
|
950,343
|
|
|
$
|
(81,382
|
)
|
|
(7.9
|
)%
|
|
$
|
248,094
|
|
|
$
|
(5,222
|
)
|
|
(2.1
|
)%
|
+100 bps
|
|
993,723
|
|
|
(38,002
|
)
|
|
(3.7
|
)%
|
|
250,850
|
|
|
(2,466
|
)
|
|
(1.0
|
)%
|
||||
0 bp
|
|
1,031,725
|
|
|
|
|
|
|
253,316
|
|
|
|
|
|
||||||||
-100 bps
|
|
1,063,721
|
|
|
31,996
|
|
|
3.1
|
%
|
|
255,645
|
|
|
2,329
|
|
|
0.9
|
%
|
(1)
|
Assumes an instantaneous uniform change in interest rates at all maturities.
|
|
|
Purchase of Equity Securities by the Issuer
|
|
|
|||||||||
|
|
Total Number of Shares
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans
|
|
Total Number of Shares That May Yet be Purchased Under the Plan
|
|||||
From April 1, 2019 to April 30, 2019
|
|
49,009
|
|
|
$
|
14.07
|
|
|
—
|
|
|
—
|
|
From May 1, 2019 to May 31, 2019
|
|
2,843
|
|
|
$
|
13.45
|
|
|
—
|
|
|
—
|
|
From June 1, 2019 to June 30, 2019
|
|
5,114
|
|
|
$
|
13.63
|
|
|
—
|
|
|
—
|
|
Total
|
|
56,966
|
|
|
$
|
14.00
|
|
|
—
|
|
|
|
2.3
|
|
2.4
|
|
3.1
|
|
3.2
|
|
4.1
|
|
4.2
|
|
4.3
|
|
4.4
|
|
4.5
|
|
4.6
|
|
4.7
|
|
4.8
|
|
4.9
|
|
4.10
|
|
10.1
|
|
10.2
|
|
31.1
|
|
31.2
|
|
32.0
|
|
101.0
|
The following financial statements and footnotes from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Financial Condition; (ii) Consolidated Statements of Income; (iii) Consolidated Statements of Comprehensive Income (Loss); (iv) Consolidated Statements of Stockholders’ Equity; (v) Consolidated Statements of Cash Flows; and (vi) the Notes to Consolidated Financial Statements. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
|
|
|
BANC OF CALIFORNIA, INC.
|
|
|
|
|
Date:
|
August 9, 2019
|
|
/s/ Jared Wolff
|
|
|
|
Jared Wolff
|
|
|
|
President/Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
Date:
|
August 9, 2019
|
|
/s/ John A. Bogler
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John A. Bogler
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Executive Vice President/Chief Financial Officer
(Principal Financial Officer) |
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Date:
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August 9, 2019
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/s/ Mike Smith
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Mike Smith
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Senior Vice President/Chief Accounting Officer and Director of Treasury
(Principal Accounting Officer)
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1.
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I have reviewed this quarterly report on Form 10-Q of Banc of California, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a.
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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August 9, 2019
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/s/ Jared Wolff
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Jared Wolff
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President/Chief Executive Officer
(Principal Executive Officer) |
1.
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I have reviewed this quarterly report on Form 10-Q of Banc of California, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a.
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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August 9, 2019
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/s/ John A. Bogler
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John A. Bogler
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Executive Vice President/Chief Financial Officer
(Principal Financial Officer) |
Date:
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August 9, 2019
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/s/ Jared Wolff
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Jared Wolff
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President/Chief Executive Officer
(Principal Executive Officer) |
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Date:
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August 9, 2019
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/s/ John A. Bogler
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John A. Bogler
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Executive Vice President/Chief Financial Officer
(Principal Financial Officer) |