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Delaware
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88-0365922
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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One E. Washington Street Suite 1400, Phoenix, AZ
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85004
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
|
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Name of each exchange on which registered
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Common Stock, $0.0001 Par Value
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New York Stock Exchange
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6.25% Subordinated Debentures due 2056
|
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New York Stock Exchange
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Large accelerated filer
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ý
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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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Page
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Item 1.
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Item 1A.
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Item 1B.
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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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||
Item 7.
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||
Item 7A.
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||
Item 8.
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Item 9.
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||
Item 9A.
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Item 9B.
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||
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Item 16.
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ENTITIES / DIVISIONS:
|
|||
ABA
|
Alliance Bank of Arizona
|
HOA Services
|
Homeowner Associations Services
|
BON
|
Bank of Nevada
|
LVSP
|
Las Vegas Sunset Properties
|
Bridge
|
Bridge Bank
|
TPB
|
Torrey Pines Bank
|
Company
|
Western Alliance Bancorporation and subsidiaries
|
WA PWI
|
Western Alliance Public Welfare Investments, LLC
|
CSI
|
CS Insurance Company
|
WAB or Bank
|
Western Alliance Bank
|
FIB
|
First Independent Bank
|
WABT
|
Western Alliance Business Trust
|
HFF
|
Hotel Franchise Finance
|
WAL or Parent
|
Western Alliance Bancorporation
|
TERMS:
|
|||
AFS
|
Available-for-Sale
|
FRA
|
Federal Reserve Act
|
ALCO
|
Asset and Liability Management Committee
|
FRB
|
Federal Reserve Bank
|
ALLL
|
Allowance for Loan and Lease Losses
|
FVO
|
Fair Value Option
|
AOCI
|
Accumulated Other Comprehensive Income
|
GAAP
|
U.S. Generally Accepted Accounting Principles
|
ASC
|
Accounting Standards Codification
|
GLBA
|
Gramm-Leach-Bliley Act
|
ASU
|
Accounting Standards Update
|
GSE
|
Government-Sponsored Enterprise
|
ATM
|
At-the-Market
|
HFI
|
Held for Investment
|
Basel Committee
|
Basel Committee on Banking Supervision
|
HTM
|
Held-to-Maturity
|
Basel III
|
Banking Supervision's December 2010 final capital framework
|
ICS
|
Insured Cash Sweep Service
|
BHCA
|
Bank Holding Company Act of 1956
|
IRC
|
Internal Revenue Code
|
BOD
|
Board of Directors
|
ISDA
|
International Swaps and Derivatives Association
|
BOLI
|
Bank Owned Life Insurance
|
LIBOR
|
London Interbank Offered Rate
|
CAMELS
|
Capital Adequacy, Assets, Management Capability, Earnings, Liquidity, Sensitivity
|
LIHTC
|
Low-Income Housing Tax Credit
|
Capital Rules
|
The FRB, the OCC, and the FDIC 2013 approved final rules
|
MBS
|
Mortgage-Backed Securities
|
CCO
|
Chief Credit Officer
|
MOU
|
Memorandum of Understanding
|
CDARS
|
Certificate Deposit Account Registry Service
|
NBL
|
National Business Lines
|
CDO
|
Collateralized Debt Obligation
|
NOL
|
Net Operating Loss
|
CECL
|
Current Expected Credit Loss
|
NPV
|
Net Present Value
|
CEO
|
Chief Executive Officer
|
NYSE
|
New York Stock Exchange
|
CET1
|
Common Equity Tier 1
|
OCC
|
Office of the Comptroller of the Currency
|
CFO
|
Chief Financial Officer
|
OCI
|
Other Comprehensive Income
|
CFPB
|
Consumer Financial Protection Bureau
|
OFAC
|
Office of Foreign Asset Control
|
CLO
|
Collateralized Loan Obligation
|
OREO
|
Other Real Estate Owned
|
CMO
|
Collateralized Mortgage Obligation
|
OTTI
|
Other-than-Temporary Impairment
|
COSO
|
Committee of Sponsoring Organizations of the Treadway Commission
|
PCI
|
Purchased Credit Impaired
|
CRA
|
Community Reinvestment Act
|
PPNR
|
Pre-Provision Net Revenue
|
CRE
|
Commercial Real Estate
|
SBA
|
Small Business Administration
|
DIF
|
FDIC's Deposit Insurance Fund
|
SBIC
|
Small Business Investment Company
|
Dodd-Frank Act
|
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
SBLF
|
Small Business Lending Fund
|
EGRRCPA
|
The Economic Growth, Regulatory Relief, and Consumer Protection Act
|
SEC
|
Securities and Exchange Commission
|
EPS
|
Earnings per share
|
SERP
|
Supplemental Executive Retirement Plan
|
EVE
|
Economic Value of Equity
|
SLC
|
Senior Loan Committee
|
Exchange Act
|
Securities Exchange Act of 1934, as amended
|
SOFR
|
Secured Overnight Funding Rate
|
FASB
|
Financial Accounting Standards Board
|
SSAE
|
Statement on Standards for Attestation Engagements
|
FCRA
|
Fair Credit Reporting Act of 1971
|
TDR
|
Troubled Debt Restructuring
|
FDIA
|
Federal Deposit Insurance Act
|
TEB
|
Tax Equivalent Basis
|
FDIC
|
Federal Deposit Insurance Corporation
|
TSR
|
Total Shareholder Return
|
FHLB
|
Federal Home Loan Bank
|
USDA
|
United States Department of Agriculture
|
FICO
|
The Financing Corporation
|
XBRL
|
eXtensible Business Reporting Language
|
Item 1.
|
Business.
|
Bank Name
|
|
Headquarters
|
|
Number of
Locations
|
|
Location Cities
|
|
Total
Assets
|
|
Net
Loans
|
|
Deposits
|
||||||
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
Western Alliance Bank
|
|
Phoenix,
Arizona |
|
47
|
|
Arizona:
Chandler, Flagstaff, Gilbert, Mesa, Phoenix, Scottsdale, and Tucson
|
|
$
|
23,138.4
|
|
|
$
|
17,557.9
|
|
|
$
|
19,496.3
|
|
Nevada:
Carson City, Fallon, Reno, Sparks, Henderson, Las Vegas, Mesquite, and North Las Vegas
|
||||||||||||||||||
California:
Beverly Hills, Carlsbad, Costa Mesa, La Mesa, Los Angeles, Menlo Park, Oakland, Palo Alto, Pleasanton, San Diego, San Francisco, and San Jose
|
||||||||||||||||||
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|
|
Other:
Atlanta, Georgia; Boston, Massachusetts; and Reston, Virginia
|
|
|
|
•
|
Western Alliance Business Trust holds certain investment securities, municipal and non-profit loans, and leases.
|
•
|
WA PWI, LLC holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations.
|
•
|
BW Real Estate, Inc. operates as a real estate investment trust and holds certain real estate loans and related securities.
|
•
|
Helios Prime, Inc. holds certain equity interests in solar tax credit transactions.
|
•
|
Individual Credit Authorities.
The credit approval levels for individual divisional and senior credit officers are set by policy and certain credit administration officers' approval authorities are established on a delegated basis.
|
•
|
Management Loan Committees.
Credits in excess of individual divisional or senior credit officer approval authority are submitted to the appropriate divisional or NBL loan committee. The divisional committees consist of members of the Bank's senior management team of each division and the NBL loan committees consist of the Bank's divisional or senior credit officers. These loan committees have approval authority up to $10.0 million.
|
•
|
Credit Administration.
Credits in excess of $10.0 million but less than $15.0 million require the additional approval of the Bank's CCO. Credits in excess of $15.0 million are submitted to the WAB SLC. The SLC reviews all other loan approvals to any one new borrower of $5.0 million or greater. The SLC is chaired by the WAB CCO and includes the Company’s CEO.
|
|
|
Percent of Total Capital
|
||||
|
|
Policy Limit
|
|
Actual
|
||
CRE
|
|
435
|
%
|
|
226
|
%
|
Commercial and industrial
|
|
400
|
|
|
268
|
|
Construction and land development
|
|
85
|
|
|
74
|
|
Residential real estate
|
|
100
|
|
|
42
|
|
Consumer
|
|
5
|
|
|
2
|
|
•
|
"Special Mention" (Grade 6):
Generally these are assets that possess potential weaknesses that warrant management's close attention. These loans may involve borrowers with adverse financial trends, higher debt to equity ratios, or weaker liquidity positions, but not to the degree of being considered a “problem loan” where risk of loss may be apparent. Loans in this category are usually performing as agreed, although there may be non-compliance with financial covenants.
|
•
|
“Substandard” (Grade 7):
These assets are characterized by well-defined credit weaknesses and carry the distinct possibility that the Company will sustain some loss if such weakness or deficiency is not corrected. All loans 90 days or more past due and all loans on non-accrual status are considered at least "Substandard," unless extraordinary circumstances would suggest otherwise.
|
•
|
“Doubtful” (Grade 8):
These assets have all the weaknesses inherent in those classified as "Substandard" with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable, but because of certain known factors which may work to the advantage and strengthening of the asset (for example, capital injection, perfecting liens on additional collateral and refinancing plans), classification as an estimated loss is deferred until a more precise status may be determined.
|
•
|
“Loss” (Grade 9):
These assets are considered uncollectible and having such little recoverable value that it is not practical to defer writing off the asset. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practicable or desirable to defer writing off the asset, even though partial recovery may be achieved in the future.
|
Securities Category
|
|
Basis Limit
|
|
Percentage or Dollar Limit
|
|
Preferred stock
|
|
Common equity tier 1
|
|
10.0
|
%
|
Tax-exempt municipal securities
|
|
Total assets
|
|
5.0
|
%
|
Tax-exempt low income housing development bonds
|
|
Total capital
|
|
30.0
|
%
|
Investment grade corporate bond mutual funds
|
|
Tier 1 capital
|
|
5.0
|
%
|
Corporate debt holdings
|
|
Total assets
|
|
2.5
|
%
|
Commercial mortgage-backed securities
|
|
Aggregate purchases
|
|
$50.0 million
|
|
|
|
December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
CDO
|
|
$
|
15,327
|
|
|
0.4
|
%
|
|
$
|
21,857
|
|
|
0.6
|
%
|
Commercial MBS issued by GSEs
|
|
100,106
|
|
|
2.7
|
|
|
109,077
|
|
|
2.9
|
|
||
Corporate debt securities
|
|
99,380
|
|
|
2.7
|
|
|
103,483
|
|
|
2.8
|
|
||
CRA investments
|
|
51,142
|
|
|
1.4
|
|
|
50,616
|
|
|
1.3
|
|
||
Preferred stock
|
|
63,919
|
|
|
1.7
|
|
|
53,196
|
|
|
1.4
|
|
||
Private label residential MBS
|
|
924,594
|
|
|
25.0
|
|
|
868,524
|
|
|
23.1
|
|
||
Residential MBS issued by GSEs
|
|
1,530,124
|
|
|
41.4
|
|
|
1,689,295
|
|
|
45.0
|
|
||
Tax-exempt
|
|
841,573
|
|
|
22.8
|
|
|
765,960
|
|
|
20.4
|
|
||
Trust preferred securities
|
|
28,617
|
|
|
0.8
|
|
|
28,617
|
|
|
0.8
|
|
||
U.S. government sponsored agency securities
|
|
38,188
|
|
|
1.0
|
|
|
61,462
|
|
|
1.6
|
|
||
U.S. treasury securities
|
|
1,984
|
|
|
0.1
|
|
|
2,482
|
|
|
0.1
|
|
||
Total investment securities
|
|
$
|
3,694,954
|
|
|
100.0
|
%
|
|
$
|
3,754,569
|
|
|
100.0
|
%
|
•
|
knowledgeable and empowered bankers committed to providing personalized and responsive service that translates into long-lasting relationships;
|
•
|
broad selection of cash management services offered; and
|
•
|
incentives to employees for business development and retention.
|
•
|
current and projected national and local economic conditions and the outlook for interest rates;
|
•
|
local competition;
|
•
|
loan and deposit positions and forecasts, including any concentrations in either; and
|
•
|
rates charged on FHLB advances and other funding sources.
|
|
|
December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
(in thousands)
|
||||||||||||
Non-interest-bearing demand deposits
|
|
$
|
7,456,141
|
|
|
38.9
|
%
|
|
$
|
7,433,962
|
|
|
43.9
|
%
|
Interest-bearing transaction accounts
|
|
2,555,609
|
|
|
13.3
|
|
|
1,586,209
|
|
|
9.3
|
|
||
Savings and money market accounts
|
|
7,330,709
|
|
|
38.2
|
|
|
6,330,977
|
|
|
37.3
|
|
||
Time certificates of deposit ($250,000 or more)
|
|
1,009,900
|
|
|
5.3
|
|
|
713,654
|
|
|
4.2
|
|
||
Other time deposits
|
|
825,088
|
|
|
4.3
|
|
|
907,730
|
|
|
5.3
|
|
||
Total deposits
|
|
$
|
19,177,447
|
|
|
100.0
|
%
|
|
$
|
16,972,532
|
|
|
100.0
|
%
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||
|
In-Footprint
|
|
Out-of-Footprint
|
|
Total
|
|
In-Footprint
|
|
Out-of-Footprint
|
|
Total
|
||||||
Arizona
|
18.1
|
%
|
|
2.5
|
%
|
|
20.6
|
%
|
|
19.8
|
%
|
|
2.2
|
%
|
|
22.0
|
%
|
Nevada
|
11.1
|
|
|
0.2
|
|
|
11.3
|
|
|
12.1
|
|
|
0.1
|
|
|
12.2
|
|
Southern California
|
12.2
|
|
|
—
|
|
|
12.2
|
|
|
12.7
|
|
|
0.1
|
|
|
12.8
|
|
Northern California
|
6.8
|
|
|
0.5
|
|
|
7.3
|
|
|
7.8
|
|
|
0.6
|
|
|
8.4
|
|
HOA Services
|
0.3
|
|
|
0.9
|
|
|
1.2
|
|
|
0.2
|
|
|
0.9
|
|
|
1.1
|
|
Hotel Franchise Finance
|
1.5
|
|
|
6.9
|
|
|
8.4
|
|
|
0.8
|
|
|
8.0
|
|
|
8.8
|
|
Public & Nonprofit Finance
|
7.8
|
|
|
1.0
|
|
|
8.8
|
|
|
9.5
|
|
|
1.0
|
|
|
10.5
|
|
Technology & Innovation
|
2.4
|
|
|
4.4
|
|
|
6.8
|
|
|
2.7
|
|
|
4.6
|
|
|
7.3
|
|
Other NBLs
|
10.3
|
|
|
13.1
|
|
|
23.4
|
|
|
6.2
|
|
|
10.7
|
|
|
16.9
|
|
Total
|
70.5
|
%
|
|
29.5
|
%
|
|
100.0
|
%
|
|
71.8
|
%
|
|
28.2
|
%
|
|
100.0
|
%
|
Item 1A.
|
Risk Factors.
|
•
|
a decrease in deposit balances or the demand for loans and other products and services the Company offers;
|
•
|
an increase in the number of borrowers who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to the Company, which could lead to higher levels of nonperforming assets, net charge-offs, and provisions for credit losses;
|
•
|
a decrease in the value of loans and other assets secured by real estate;
|
•
|
a decrease in net interest income from the Company’s lending and deposit gathering activities;
|
•
|
an impairment of certain intangible assets such as goodwill; and
|
•
|
an increase in competition resulting from increasing consolidation within the financial services industry.
|
•
|
time and expense incurred while identifying, evaluating and negotiating potential acquisitions and transactions;
|
•
|
difficulty in accurately estimating the value of target companies or assets and in evaluating target companies or assets’ credit, operations, management, and market risks;
|
•
|
potential payment of a premium over book and market values that may cause dilution of the Company’s tangible book value or earnings per share;
|
•
|
exposure to unknown or contingent liabilities of the target company;
|
•
|
potential exposure to asset quality issues of the target company;
|
•
|
difficulty of integrating the operations and personnel;
|
•
|
potential disruption of the Company’s ongoing business;
|
•
|
failure to retain key personnel at the acquired business;
|
•
|
inability of the Company’s management to maximize its financial and strategic position by the successful implementation of uniform product offerings and the incorporation of uniform technology into the Company’s product offerings and control systems; and
|
•
|
failure to realize any expected revenue increases, cost savings, and other projected benefits from an acquisition.
|
•
|
actual or anticipated changes in the political climate or public policy, including international trade policy;
|
•
|
sales of the Company’s equity securities;
|
•
|
the Company’s financial condition, performance, creditworthiness, and prospects;
|
•
|
quarterly variations in the Company’s operating results or the quality of its assets;
|
•
|
operating results that vary from the expectations of management, securities analysts, and investors;
|
•
|
changes in expectations as to the Company’s future financial performance;
|
•
|
announcements of strategic developments, acquisitions, and other material events by the Company or its competitors;
|
•
|
the operating and securities price performance of other companies that investors believe are comparable to the Company;
|
•
|
the credit, mortgage, and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally;
|
•
|
changes in national and global financial markets and economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility and other geopolitical, regulatory or judicial events; and
|
•
|
the Company’s past and future dividend and share repurchase practices.
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
(1)
|
Shares purchased during the period were transferred to the Company from employees in satisfaction of minimum tax withholding obligations associated with the vesting of stock awards during the period.
|
(2)
|
On December 12, 2018, the Company announced that it had adopted a common stock repurchase program, pursuant to which the Company is authorized to repurchase up to $250 million of its shares of common stock. The repurchase program will expire on December 31, 2019.
|
Item 6.
|
Selected Financial Data.
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Results of Operations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
|
$
|
1,033,483
|
|
|
$
|
845,513
|
|
|
$
|
700,506
|
|
|
$
|
525,144
|
|
|
$
|
416,379
|
|
Interest expense
|
|
117,604
|
|
|
60,849
|
|
|
43,293
|
|
|
32,568
|
|
|
31,486
|
|
|||||
Net interest income
|
|
915,879
|
|
|
784,664
|
|
|
657,213
|
|
|
492,576
|
|
|
384,893
|
|
|||||
Provision for credit losses
|
|
23,000
|
|
|
17,250
|
|
|
8,000
|
|
|
3,200
|
|
|
4,726
|
|
|||||
Net interest income after provision for credit losses
|
|
892,879
|
|
|
767,414
|
|
|
649,213
|
|
|
489,376
|
|
|
380,167
|
|
|||||
Non-interest income
|
|
43,116
|
|
|
45,344
|
|
|
42,915
|
|
|
29,768
|
|
|
24,651
|
|
|||||
Non-interest expense
|
|
425,667
|
|
|
360,941
|
|
|
330,949
|
|
|
260,606
|
|
|
207,319
|
|
|||||
Income from continuing operations before provision for income taxes
|
|
510,328
|
|
|
451,817
|
|
|
361,179
|
|
|
258,538
|
|
|
197,499
|
|
|||||
Income tax expense
|
|
74,540
|
|
|
126,325
|
|
|
101,381
|
|
|
64,294
|
|
|
48,390
|
|
|||||
Income from continuing operations
|
|
435,788
|
|
|
325,492
|
|
|
259,798
|
|
|
194,244
|
|
|
149,109
|
|
|||||
Loss from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,158
|
)
|
|||||
Net income
|
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
|
$
|
194,244
|
|
|
$
|
147,951
|
|
|
|
As of and for the Year Ended December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
(dollars in thousands, except per share data)
|
||||||||||||||||||
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share available to common stockholders - basic
|
|
$
|
4.16
|
|
|
$
|
3.12
|
|
|
$
|
2.52
|
|
|
$
|
2.05
|
|
|
$
|
1.69
|
|
Earnings per share available to common stockholders - diluted
|
|
4.14
|
|
|
3.10
|
|
|
2.50
|
|
|
2.03
|
|
|
1.67
|
|
|||||
Earnings per share from continuing operations - basic
|
|
4.16
|
|
|
3.12
|
|
|
2.52
|
|
|
2.05
|
|
|
1.70
|
|
|||||
Earnings per share from continuing operations - diluted
|
|
4.14
|
|
|
3.10
|
|
|
2.50
|
|
|
2.03
|
|
|
1.69
|
|
|||||
Book value per common share
|
|
24.90
|
|
|
21.14
|
|
|
18.00
|
|
|
15.44
|
|
|
10.49
|
|
|||||
Tangible book value per share
1
|
|
22.07
|
|
|
18.31
|
|
|
15.17
|
|
|
12.54
|
|
|
10.21
|
|
|||||
Shares outstanding at period end
|
|
104,949
|
|
|
105,487
|
|
|
105,071
|
|
|
103,087
|
|
|
88,691
|
|
|||||
Weighted average shares outstanding - basic
|
|
104,669
|
|
|
104,179
|
|
|
103,042
|
|
|
94,570
|
|
|
86,693
|
|
|||||
Weighted average shares outstanding - diluted
|
|
105,370
|
|
|
104,997
|
|
|
103,843
|
|
|
95,219
|
|
|
87,506
|
|
|||||
Selected Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
498,572
|
|
|
$
|
416,768
|
|
|
$
|
284,491
|
|
|
$
|
224,640
|
|
|
$
|
164,396
|
|
Investment securities and money market investments
|
|
3,694,961
|
|
|
3,754,569
|
|
|
2,702,512
|
|
|
1,984,126
|
|
|
1,522,546
|
|
|||||
Loans, net of deferred loan fees and costs
|
|
17,710,629
|
|
|
15,093,935
|
|
|
13,208,436
|
|
|
11,136,663
|
|
|
8,398,265
|
|
|||||
Allowance for credit losses
|
|
152,717
|
|
|
140,050
|
|
|
124,704
|
|
|
119,068
|
|
|
110,216
|
|
|||||
Total assets
|
|
23,109,486
|
|
|
20,329,085
|
|
|
17,200,842
|
|
|
14,275,089
|
|
|
10,600,498
|
|
|||||
Total deposits
|
|
19,177,447
|
|
|
16,972,532
|
|
|
14,549,863
|
|
|
12,030,624
|
|
|
8,931,043
|
|
|||||
Other borrowings
|
|
491,000
|
|
|
390,000
|
|
|
80,000
|
|
|
150,000
|
|
|
390,263
|
|
|||||
Qualifying debt
|
|
360,458
|
|
|
376,905
|
|
|
367,937
|
|
|
210,328
|
|
|
40,437
|
|
|||||
Total stockholders' equity
|
|
2,613,734
|
|
|
2,229,698
|
|
|
1,891,529
|
|
|
1,591,502
|
|
|
1,000,928
|
|
|||||
Selected Other Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average assets
|
|
$
|
21,246,315
|
|
|
$
|
18,869,553
|
|
|
$
|
16,134,263
|
|
|
$
|
12,420,803
|
|
|
$
|
9,891,109
|
|
Average earning assets
|
|
20,064,545
|
|
|
17,770,939
|
|
|
15,117,364
|
|
|
11,621,977
|
|
|
9,270,465
|
|
|||||
Average stockholders' equity
|
|
2,411,709
|
|
|
2,079,287
|
|
|
1,770,914
|
|
|
1,323,952
|
|
|
964,131
|
|
|||||
Selected Financial and Liquidity Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
2.05
|
%
|
|
1.72
|
%
|
|
1.61
|
%
|
|
1.56
|
%
|
|
1.50
|
%
|
|||||
Return on average tangible common equity
1
|
|
20.64
|
|
|
18.31
|
|
|
17.71
|
|
|
17.83
|
|
|
18.52
|
|
|||||
Net interest margin
|
|
4.68
|
|
|
4.65
|
|
|
4.58
|
|
|
4.51
|
|
|
4.42
|
|
|||||
Loan to deposit ratio
|
|
92.35
|
|
|
88.93
|
|
|
90.78
|
|
|
92.57
|
|
|
94.03
|
|
|||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 leverage ratio
|
|
10.9
|
%
|
|
10.3
|
%
|
|
9.9
|
%
|
|
9.8
|
%
|
|
9.7
|
%
|
|||||
Tier 1 capital ratio
|
|
11.1
|
|
|
10.8
|
|
|
10.5
|
|
|
10.2
|
|
|
10.5
|
|
|||||
Total capital ratio
|
|
13.2
|
|
|
13.3
|
|
|
13.2
|
|
|
12.2
|
|
|
11.7
|
|
|||||
Selected Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs (recoveries) to average loans outstanding
|
|
0.06
|
%
|
|
0.01
|
%
|
|
0.02
|
%
|
|
(0.06
|
)%
|
|
(0.07
|
)%
|
|||||
Non-accrual loans to gross organic loans
|
|
0.16
|
|
|
0.29
|
|
|
0.31
|
|
|
0.44
|
|
|
0.81
|
|
|||||
Non-accrual loans and repossessed assets to total assets
|
|
0.20
|
|
|
0.36
|
|
|
0.51
|
|
|
0.65
|
|
|
1.18
|
|
|||||
Loans past due 90 days or more and still accruing to gross loans
|
|
0.00
|
|
|
0.00
|
|
|
0.01
|
|
|
0.03
|
|
|
0.06
|
|
|||||
Allowance for credit losses to gross loans
|
|
0.86
|
|
|
0.93
|
|
|
0.95
|
|
|
1.07
|
|
|
1.31
|
|
|||||
Allowance for credit losses to non-accrual loans
|
|
550.41
|
|
|
318.84
|
|
|
309.65
|
|
|
246.10
|
|
|
162.90
|
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
Net income of
$435.8 million
for
2018
, compared to
$325.5 million
for
2017
|
•
|
Diluted earnings per share of
$4.14
for
2018
, compared to
$3.10
per share for
2017
|
•
|
Net operating revenue of
$970.3 million
, constituting year-over-year growth of
17.2%
, or
$142.6 million
, compared to an increase in operating non-interest expenses of
15.4%
, or
$55.8 million
1
|
•
|
Operating PPNR
increased
$86.8 million
to
$553.5 million
, compared to
$466.6 million
in
2017
1
|
•
|
Income tax expense
decreased
$51.8 million
to
$74.5 million
, compared to
$126.3 million
in
2017
|
•
|
Total loans of
$17.71 billion
, up
$2.62 billion
from
December 31, 2017
|
•
|
Total deposits of
$19.18 billion
, up
$2.20 billion
from
December 31, 2017
|
•
|
Stockholders' equity of
$2.61 billion
,
an increase
of
$384.0 million
from
December 31, 2017
|
•
|
Nonperforming assets (nonaccrual loans and repossessed assets) decreased to
0.20%
of total assets, from
0.36%
at
December 31, 2017
|
•
|
Net loan charge-offs to average loans outstanding of
0.06%
for
2018
, compared to
0.01%
for
2017
|
•
|
Net interest margin of
4.68%
in
2018
, compared to
4.65%
in
2017
|
•
|
Return on average assets of
2.05%
for
2018
, compared to
1.72%
for
2017
|
•
|
Tangible common equity ratio of
10.2%
, compared to
9.6%
at
December 31, 2017
1
|
•
|
Tangible book value per share, net of tax, of
$22.07
,
an increase
of
20.5%
from
$18.31
at
December 31, 2017
1
|
•
|
Operating efficiency ratio of
41.9%
in
2018
, compared to
41.5%
in
2017
1
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||
Net income
|
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
Earnings per share - basic
|
|
4.16
|
|
|
3.12
|
|
|
2.52
|
|
|||
Earnings per share - diluted
|
|
4.14
|
|
|
3.10
|
|
|
2.50
|
|
|||
Return on average assets
|
|
2.05
|
%
|
|
1.72
|
%
|
|
1.61
|
%
|
|||
Return on average tangible common equity
1
|
|
20.64
|
|
|
18.31
|
|
|
17.71
|
|
|||
Net interest margin
|
|
4.68
|
|
|
4.65
|
|
|
4.58
|
|
|||
Operating efficiency ratio
1
|
|
41.93
|
|
|
41.51
|
|
|
43.42
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Total assets
|
|
$
|
23,109,486
|
|
|
$
|
20,329,085
|
|
Total loans, net of deferred loan fees and costs
|
|
17,710,629
|
|
|
15,093,935
|
|
||
Securities and money market investments
|
|
3,694,961
|
|
|
3,754,569
|
|
||
Total deposits
|
|
19,177,447
|
|
|
16,972,532
|
|
||
Borrowings
|
|
491,000
|
|
|
390,000
|
|
||
Qualifying debt
|
|
360,458
|
|
|
376,905
|
|
||
Stockholders' equity
|
|
2,613,734
|
|
|
2,229,698
|
|
||
Tangible common equity, net of tax
1
|
|
2,316,464
|
|
|
1,931,648
|
|
|
|
At or for the Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Non-accrual loans
|
|
$
|
27,746
|
|
|
$
|
43,925
|
|
|
$
|
40,272
|
|
Repossessed assets
|
|
17,924
|
|
|
28,540
|
|
|
47,815
|
|
|||
Non-performing assets
|
|
82,722
|
|
|
114,939
|
|
|
142,791
|
|
|||
Loans past due 90 days and still accruing
|
|
594
|
|
|
43
|
|
|
1,067
|
|
|||
Non-accrual loans to gross loans
|
|
0.16
|
%
|
|
0.29
|
%
|
|
0.31
|
%
|
|||
Nonaccrual and repossessed assets to total assets
|
|
0.20
|
|
|
0.36
|
|
|
0.51
|
|
|||
Loans past due 90 days and still accruing to gross loans
|
|
0.00
|
|
|
0.00
|
|
|
0.01
|
|
|||
Allowance for credit losses to gross loans
|
|
0.86
|
|
|
0.93
|
|
|
0.94
|
|
|||
Allowance for credit losses to non-accrual loans
|
|
550.41
|
|
|
318.84
|
|
|
309.65
|
|
|||
Net charge-offs to average loans outstanding
|
|
0.06
|
|
|
0.01
|
|
|
0.02
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Total non-interest income
|
|
$
|
43,116
|
|
|
$
|
45,344
|
|
|
$
|
42,915
|
|
Less:
|
|
|
|
|
|
|
||||||
(Loss) gain on sales of investment securities, net (1)
|
|
(7,656
|
)
|
|
2,343
|
|
|
1,059
|
|
|||
Unrealized (losses) gains on assets measured at fair value, net (1)
|
|
(3,611
|
)
|
|
(1
|
)
|
|
8
|
|
|||
Total operating non-interest income
|
|
54,383
|
|
|
43,002
|
|
|
41,848
|
|
|||
Plus: net interest income
|
|
915,879
|
|
|
784,664
|
|
|
657,213
|
|
|||
Net operating revenue
|
|
$
|
970,262
|
|
|
$
|
827,666
|
|
|
$
|
699,061
|
|
|
|
|
|
|
|
|
||||||
Total non-interest expense
|
|
$
|
425,667
|
|
|
$
|
360,941
|
|
|
$
|
330,949
|
|
Less:
|
|
|
|
|
|
|
||||||
Contribution to charitable foundation (2)
|
|
7,645
|
|
|
—
|
|
|
—
|
|
|||
401(k) plan change and other miscellaneous items (2)
|
|
1,218
|
|
|
—
|
|
|
—
|
|
|||
Net loss (gain) on sales / valuations of repossessed and other assets (1)
|
|
9
|
|
|
(80
|
)
|
|
(125
|
)
|
|||
Acquisition / restructure expense (1)
|
|
—
|
|
|
—
|
|
|
12,412
|
|
|||
Total operating non-interest expense
|
|
$
|
416,795
|
|
|
$
|
361,021
|
|
|
$
|
318,662
|
|
|
|
|
|
|
|
|
||||||
Operating pre-provision net revenue
|
|
$
|
553,467
|
|
|
$
|
466,645
|
|
|
$
|
380,399
|
|
Plus:
|
|
|
|
|
|
|
||||||
Revenue adjustments
|
|
(11,267
|
)
|
|
2,342
|
|
|
1,067
|
|
|||
Less:
|
|
|
|
|
|
|
||||||
Provision for credit losses
|
|
23,000
|
|
|
17,250
|
|
|
8,000
|
|
|||
Expense adjustments
|
|
8,872
|
|
|
(80
|
)
|
|
12,287
|
|
|||
Income before provision for income taxes
|
|
510,328
|
|
|
451,817
|
|
|
361,179
|
|
|||
Income tax expense
|
|
74,540
|
|
|
126,325
|
|
|
101,381
|
|
|||
Net income
|
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
(1)
|
The operating PPNR non-GAAP performance metric is adjusted to exclude the effects of this non-operational item.
|
(2)
|
The operating PPNR non-GAAP performance metric is adjusted to exclude the effects of these non-recurring items. See "
Note 19. Related Party Transactions
" for further information regarding the charitable contribution.
|
|
December 31
|
||||||
|
2018
|
|
2017
|
||||
|
(dollars and shares in thousands)
|
||||||
Total stockholders' equity
|
$
|
2,613,734
|
|
|
$
|
2,229,698
|
|
Less: goodwill and intangible assets
|
299,155
|
|
|
300,748
|
|
||
Total tangible stockholders' equity
|
2,314,579
|
|
|
1,928,950
|
|
||
Plus: deferred tax - attributed to intangible assets
|
1,885
|
|
|
2,698
|
|
||
Total tangible common equity, net of tax
|
$
|
2,316,464
|
|
|
$
|
1,931,648
|
|
|
|
|
|
||||
Total assets
|
$
|
23,109,486
|
|
|
$
|
20,329,085
|
|
Less: goodwill and intangible assets, net
|
299,155
|
|
|
300,748
|
|
||
Tangible assets
|
22,810,331
|
|
|
20,028,337
|
|
||
Plus: deferred tax - attributed to intangible assets
|
1,885
|
|
|
2,698
|
|
||
Total tangible assets, net of tax
|
$
|
22,812,216
|
|
|
$
|
20,031,035
|
|
|
|
|
|
||||
Tangible common equity ratio
|
10.2
|
%
|
|
9.6
|
%
|
||
Common shares outstanding
|
104,949
|
|
|
105,487
|
|
||
Book value per share
|
$
|
24.90
|
|
|
$
|
21.14
|
|
Tangible book value per share, net of tax
|
22.07
|
|
|
18.31
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(dollars in thousands)
|
||||||||||
Total operating non-interest expense
|
$
|
416,795
|
|
|
$
|
361,021
|
|
|
$
|
318,662
|
|
|
|
|
|
|
|
||||||
Divided by:
|
|
|
|
|
|
||||||
Total net interest income
|
$
|
915,879
|
|
|
$
|
784,664
|
|
|
$
|
657,213
|
|
Plus:
|
|
|
|
|
|
||||||
Tax equivalent interest adjustment
|
23,809
|
|
|
41,989
|
|
|
34,902
|
|
|||
Operating non-interest income
|
54,383
|
|
|
43,002
|
|
|
41,848
|
|
|||
Net operating revenue - TEB
|
$
|
994,071
|
|
|
$
|
869,655
|
|
|
$
|
733,963
|
|
|
|
|
|
|
|
||||||
Operating efficiency ratio - TEB
|
41.9
|
%
|
|
41.5
|
%
|
|
43.4
|
%
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(dollars in thousands)
|
||||||
Common Equity Tier 1:
|
|
|
|
||||
Common Equity
|
$
|
2,613,734
|
|
|
$
|
2,229,698
|
|
Less:
|
|
|
|
||||
Non-qualifying goodwill and intangibles
|
296,769
|
|
|
296,421
|
|
||
Disallowed deferred tax asset
|
768
|
|
|
638
|
|
||
AOCI related adjustments
|
(47,055
|
)
|
|
(9,496
|
)
|
||
Unrealized gain on changes in fair value liabilities
|
13,432
|
|
|
7,785
|
|
||
Common Equity Tier 1
|
$
|
2,349,820
|
|
|
$
|
1,934,350
|
|
Divided by: Risk-weighted assets
|
$
|
21,983,976
|
|
|
$
|
18,569,608
|
|
Common Equity Tier 1 ratio
|
10.7
|
%
|
|
10.4
|
%
|
||
|
|
|
|
||||
Common Equity Tier 1
|
$
|
2,349,820
|
|
|
$
|
1,934,350
|
|
Plus:
|
|
|
|
||||
Trust preferred securities
|
81,500
|
|
|
81,500
|
|
||
Less:
|
|
|
|
||||
Disallowed deferred tax asset
|
—
|
|
|
159
|
|
||
Unrealized gain on changes in fair value liabilities
|
—
|
|
|
1,947
|
|
||
Tier 1 capital
|
$
|
2,431,320
|
|
|
$
|
2,013,744
|
|
Divided by: Tangible average assets
|
$
|
22,204,799
|
|
|
$
|
19,624,517
|
|
Tier 1 leverage ratio
|
10.9
|
%
|
|
10.3
|
%
|
||
|
|
|
|
||||
Total Capital:
|
|
|
|
||||
Tier 1 capital
|
$
|
2,431,320
|
|
|
$
|
2,013,744
|
|
Plus:
|
|
|
|
||||
Subordinated debt
|
305,131
|
|
|
301,020
|
|
||
Qualifying allowance for credit losses
|
152,717
|
|
|
140,050
|
|
||
Other
|
8,188
|
|
|
6,174
|
|
||
Less: Tier 2 qualifying capital deductions
|
—
|
|
|
—
|
|
||
Tier 2 capital
|
$
|
466,036
|
|
|
$
|
447,244
|
|
|
|
|
|
||||
Total capital
|
$
|
2,897,356
|
|
|
$
|
2,460,988
|
|
|
|
|
|
||||
Total capital ratio
|
13.2
|
%
|
|
13.3
|
%
|
||
|
|
|
|
||||
Classified assets to Tier 1 capital plus allowance for credit losses:
|
|
|
|
||||
Classified assets
|
$
|
242,101
|
|
|
$
|
222,004
|
|
Divided by:
|
|
|
|
||||
Tier 1 capital
|
2,431,320
|
|
|
2,013,744
|
|
||
Plus: Allowance for credit losses
|
152,717
|
|
|
140,050
|
|
||
Total Tier 1 capital plus allowance for credit losses
|
$
|
2,584,037
|
|
|
$
|
2,153,794
|
|
|
|
|
|
||||
Classified assets to Tier 1 capital plus allowance
|
9.4
|
%
|
|
10.3
|
%
|
|
|
Year Ended December 31,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
|
|
Average
Yield / Cost |
|
Average
Balance |
|
Interest
|
|
Average
Yield / Cost |
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||
Interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
7,039,090
|
|
|
$
|
387,422
|
|
|
5.68
|
%
|
|
$
|
6,188,473
|
|
|
$
|
311,375
|
|
|
5.42
|
%
|
CRE - non-owner occupied
|
|
3,952,702
|
|
|
234,753
|
|
|
5.95
|
|
|
3,629,644
|
|
|
216,423
|
|
|
5.99
|
|
||||
CRE - owner occupied
|
|
2,263,112
|
|
|
118,351
|
|
|
5.34
|
|
|
2,033,767
|
|
|
101,976
|
|
|
5.27
|
|
||||
Construction and land development
|
|
1,975,587
|
|
|
137,227
|
|
|
6.96
|
|
|
1,603,328
|
|
|
99,427
|
|
|
6.22
|
|
||||
Residential real estate
|
|
616,159
|
|
|
29,681
|
|
|
4.82
|
|
|
339,285
|
|
|
16,066
|
|
|
4.74
|
|
||||
Consumer
|
|
54,078
|
|
|
3,143
|
|
|
5.81
|
|
|
46,033
|
|
|
2,243
|
|
|
4.87
|
|
||||
Total loans (1), (2), (3)
|
|
15,900,728
|
|
|
910,577
|
|
|
5.82
|
|
|
13,840,530
|
|
|
747,510
|
|
|
5.62
|
|
||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities - taxable
|
|
2,803,350
|
|
|
78,630
|
|
|
2.80
|
|
|
2,579,585
|
|
|
64,043
|
|
|
2.48
|
|
||||
Securities - tax-exempt
|
|
879,888
|
|
|
33,042
|
|
|
4.69
|
|
|
670,321
|
|
|
24,596
|
|
|
5.45
|
|
||||
Total securities (1)
|
|
3,683,238
|
|
|
111,672
|
|
|
3.26
|
|
|
3,249,906
|
|
|
88,639
|
|
|
3.10
|
|
||||
Other
|
|
480,579
|
|
|
11,234
|
|
|
2.34
|
|
|
680,503
|
|
|
9,364
|
|
|
1.38
|
|
||||
Total interest earning assets
|
|
20,064,545
|
|
|
1,033,483
|
|
|
5.27
|
|
|
17,770,939
|
|
|
845,513
|
|
|
4.99
|
|
||||
Non-interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
145,246
|
|
|
|
|
|
|
137,537
|
|
|
|
|
|
||||||||
Allowance for credit losses
|
|
(146,288
|
)
|
|
|
|
|
|
(131,954
|
)
|
|
|
|
|
||||||||
Bank owned life insurance
|
|
168,685
|
|
|
|
|
|
|
166,054
|
|
|
|
|
|
||||||||
Other assets
|
|
1,014,127
|
|
|
|
|
|
|
926,977
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
21,246,315
|
|
|
|
|
|
|
$
|
18,869,553
|
|
|
|
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing transaction accounts
|
|
$
|
1,891,160
|
|
|
$
|
11,584
|
|
|
0.61
|
%
|
|
$
|
1,467,231
|
|
|
$
|
3,974
|
|
|
0.27
|
%
|
Savings and money market accounts
|
|
6,501,241
|
|
|
54,962
|
|
|
0.85
|
|
|
6,208,057
|
|
|
26,086
|
|
|
0.42
|
|
||||
Time certificates of deposit
|
|
1,748,675
|
|
|
23,918
|
|
|
1.37
|
|
|
1,560,896
|
|
|
11,905
|
|
|
0.76
|
|
||||
Total interest-bearing deposits
|
|
10,141,076
|
|
|
90,464
|
|
|
0.89
|
|
|
9,236,184
|
|
|
41,965
|
|
|
0.45
|
|
||||
Short-term borrowings
|
|
260,662
|
|
|
4,853
|
|
|
1.86
|
|
|
63,623
|
|
|
611
|
|
|
0.96
|
|
||||
Qualifying debt
|
|
362,410
|
|
|
22,287
|
|
|
6.15
|
|
|
371,311
|
|
|
18,273
|
|
|
4.92
|
|
||||
Total interest-bearing liabilities
|
|
10,764,148
|
|
|
117,604
|
|
|
1.09
|
|
|
9,671,118
|
|
|
60,849
|
|
|
0.63
|
|
||||
Non-interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing demand deposits
|
|
7,712,791
|
|
|
|
|
|
|
6,788,783
|
|
|
|
|
|
||||||||
Other liabilities
|
|
357,667
|
|
|
|
|
|
|
330,365
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
2,411,709
|
|
|
|
|
|
|
2,079,287
|
|
|
|
|
|
||||||||
Total liabilities and stockholders' equity
|
|
$
|
21,246,315
|
|
|
|
|
|
|
$
|
18,869,553
|
|
|
|
|
|
||||||
Net interest income and margin (4)
|
|
|
|
$
|
915,879
|
|
|
4.68
|
%
|
|
|
|
$
|
784,664
|
|
|
4.65
|
%
|
||||
TCJA adjusted net interest margin (5)
|
|
|
|
|
|
|
|
|
|
|
|
4.53
|
%
|
(1)
|
Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was
$23.8 million
and
$42.0 million
for
2018
and
2017
, respectively.
|
(2)
|
Included in the yield computation are net loan fees of
$44.8 million
and accretion on acquired loans of
$18.6 million
for
2018
, compared to
$37.0 million
and
$28.2 million
for
2017
, respectively.
|
(3)
|
Includes non-accrual loans.
|
(4)
|
Net interest margin is computed by dividing net interest income by total average earning assets.
|
(5)
|
Prior period net interest margin is adjusted to include the effects from the TCJA of the lower statutory corporate federal tax rate on the calculation of the taxable-equivalent adjustment, which reduced the taxable-equivalent adjustment to $20.7 million.
|
|
|
Year Ended December 31,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
|
|
Average
Yield / Cost |
|
Average
Balance |
|
Interest
|
|
Average
Yield / Cost |
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||
Interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
6,188,473
|
|
|
$
|
311,375
|
|
|
5.42
|
%
|
|
$
|
5,426,053
|
|
|
$
|
252,209
|
|
|
5.14
|
%
|
CRE - non-owner occupied
|
|
3,629,644
|
|
|
216,423
|
|
|
5.99
|
|
|
3,212,359
|
|
|
182,731
|
|
|
5.69
|
|
||||
CRE - owner occupied
|
|
2,033,767
|
|
|
101,976
|
|
|
5.27
|
|
|
2,016,585
|
|
|
103,418
|
|
|
5.13
|
|
||||
Construction and land development
|
|
1,603,328
|
|
|
99,427
|
|
|
6.22
|
|
|
1,307,895
|
|
|
83,206
|
|
|
6.36
|
|
||||
Residential real estate
|
|
339,285
|
|
|
16,066
|
|
|
4.74
|
|
|
289,181
|
|
|
13,374
|
|
|
4.62
|
|
||||
Consumer
|
|
46,033
|
|
|
2,243
|
|
|
4.87
|
|
|
35,821
|
|
|
1,658
|
|
|
4.63
|
|
||||
Total loans (1), (2), (3)
|
|
13,840,530
|
|
|
747,510
|
|
|
5.62
|
|
|
12,287,894
|
|
|
636,596
|
|
|
5.40
|
|
||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities - taxable
|
|
2,579,585
|
|
|
64,043
|
|
|
2.48
|
|
|
1,789,806
|
|
|
39,772
|
|
|
2.22
|
|
||||
Securities - tax-exempt
|
|
670,321
|
|
|
24,596
|
|
|
5.45
|
|
|
507,103
|
|
|
18,768
|
|
|
5.34
|
|
||||
Total securities (1)
|
|
3,249,906
|
|
|
88,639
|
|
|
3.10
|
|
|
2,296,909
|
|
|
58,540
|
|
|
2.91
|
|
||||
Other
|
|
680,503
|
|
|
9,364
|
|
|
1.38
|
|
|
532,561
|
|
|
5,370
|
|
|
1.01
|
|
||||
Total interest earning assets
|
|
17,770,939
|
|
|
845,513
|
|
|
4.99
|
|
|
15,117,364
|
|
|
700,506
|
|
|
4.86
|
|
||||
Non-interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
137,537
|
|
|
|
|
|
|
141,789
|
|
|
|
|
|
||||||||
Allowance for credit losses
|
|
(131,954
|
)
|
|
|
|
|
|
(122,048
|
)
|
|
|
|
|
||||||||
Bank owned life insurance
|
|
166,054
|
|
|
|
|
|
|
163,596
|
|
|
|
|
|
||||||||
Other assets
|
|
926,977
|
|
|
|
|
|
|
833,562
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
18,869,553
|
|
|
|
|
|
|
$
|
16,134,263
|
|
|
|
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing transaction accounts
|
|
$
|
1,467,231
|
|
|
$
|
3,974
|
|
|
0.27
|
%
|
|
$
|
1,217,344
|
|
|
$
|
2,231
|
|
|
0.18
|
%
|
Savings and money market accounts
|
|
6,208,057
|
|
|
26,086
|
|
|
0.42
|
|
|
5,827,549
|
|
|
19,368
|
|
|
0.33
|
|
||||
Time certificates of deposit
|
|
1,560,896
|
|
|
11,905
|
|
|
0.76
|
|
|
1,615,502
|
|
|
8,123
|
|
|
0.50
|
|
||||
Total interest-bearing deposits
|
|
9,236,184
|
|
|
41,965
|
|
|
0.45
|
|
|
8,660,395
|
|
|
29,722
|
|
|
0.34
|
|
||||
Short-term borrowings
|
|
63,623
|
|
|
611
|
|
|
0.96
|
|
|
80,727
|
|
|
573
|
|
|
0.71
|
|
||||
Qualifying debt
|
|
371,311
|
|
|
18,273
|
|
|
4.92
|
|
|
290,779
|
|
|
12,998
|
|
|
4.47
|
|
||||
Total interest-bearing liabilities
|
|
9,671,118
|
|
|
60,849
|
|
|
0.63
|
|
|
9,031,901
|
|
|
43,293
|
|
|
0.48
|
|
||||
Non-interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing demand deposits
|
|
6,788,783
|
|
|
|
|
|
|
5,062,319
|
|
|
|
|
|
||||||||
Other liabilities
|
|
330,365
|
|
|
|
|
|
|
269,129
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
2,079,287
|
|
|
|
|
|
|
1,770,914
|
|
|
|
|
|
||||||||
Total liabilities and stockholders' equity
|
|
$
|
18,869,553
|
|
|
|
|
|
|
$
|
16,134,263
|
|
|
|
|
|
||||||
Net interest income and margin (4)
|
|
|
|
$
|
784,664
|
|
|
4.65
|
%
|
|
|
|
$
|
657,213
|
|
|
4.58
|
%
|
||||
TCJA adjusted net interest margin (5)
|
|
|
|
|
|
4.53
|
%
|
|
|
|
|
|
4.47
|
%
|
(1)
|
Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was
$42.0 million
and
$34.9 million
for
2017
and
2016
, respectively.
|
(2)
|
Included in the yield computation are net loan fees of
$37.0 million
and accretion on acquired loans of
$28.2 million
for
2017
, compared to
$28.5 million
and
$29.2 million
for
2016
, respectively.
|
(3)
|
Includes non-accrual loans.
|
(4)
|
Net interest margin is computed by dividing net interest income by total average earning assets.
|
(5)
|
Prior period net interest margin is adjusted to include the effects from the TCJA of the lower statutory corporate federal tax rate on the calculation of the taxable-equivalent adjustment, which reduced the taxable-equivalent adjustments to $20.7 million and $18.1 million for 2017 and 2016, respectively.
|
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||
|
|
2018 versus 2017
|
|
2017 versus 2016
|
||||||||||||||||||||
|
|
Increase (Decrease) Due to Changes in (1)
|
|
Increase (Decrease) Due to Changes in (1)
|
||||||||||||||||||||
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
46,817
|
|
|
$
|
29,230
|
|
|
$
|
76,047
|
|
|
$
|
38,362
|
|
|
$
|
20,804
|
|
|
$
|
59,166
|
|
CRE - non-owner occupied
|
|
19,187
|
|
|
(857
|
)
|
|
18,330
|
|
|
24,881
|
|
|
8,811
|
|
|
33,692
|
|
||||||
CRE - owner occupied
|
|
11,994
|
|
|
4,381
|
|
|
16,375
|
|
|
862
|
|
|
(2,304
|
)
|
|
(1,442
|
)
|
||||||
Construction and land development
|
|
25,858
|
|
|
11,942
|
|
|
37,800
|
|
|
18,320
|
|
|
(2,099
|
)
|
|
16,221
|
|
||||||
Residential real estate
|
|
13,337
|
|
|
278
|
|
|
13,615
|
|
|
2,373
|
|
|
319
|
|
|
2,692
|
|
||||||
Consumer
|
|
468
|
|
|
432
|
|
|
900
|
|
|
498
|
|
|
87
|
|
|
585
|
|
||||||
Total loans
|
|
117,661
|
|
|
45,406
|
|
|
163,067
|
|
|
85,296
|
|
|
25,618
|
|
|
110,914
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities - taxable
|
|
6,276
|
|
|
8,311
|
|
|
14,587
|
|
|
19,608
|
|
|
4,663
|
|
|
24,271
|
|
||||||
Securities - tax-exempt
|
|
7,870
|
|
|
576
|
|
|
8,446
|
|
|
5,989
|
|
|
(161
|
)
|
|
5,828
|
|
||||||
Total securities
|
|
14,146
|
|
|
8,887
|
|
|
23,033
|
|
|
25,597
|
|
|
4,502
|
|
|
30,099
|
|
||||||
Other
|
|
(4,673
|
)
|
|
6,543
|
|
|
1,870
|
|
|
2,036
|
|
|
1,958
|
|
|
3,994
|
|
||||||
Total interest income
|
|
127,134
|
|
|
60,836
|
|
|
187,970
|
|
|
112,929
|
|
|
32,078
|
|
|
145,007
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing transaction accounts
|
|
$
|
2,597
|
|
|
$
|
5,013
|
|
|
$
|
7,610
|
|
|
$
|
677
|
|
|
$
|
1,066
|
|
|
$
|
1,743
|
|
Savings and money market
|
|
2,479
|
|
|
26,397
|
|
|
28,876
|
|
|
1,600
|
|
|
5,118
|
|
|
6,718
|
|
||||||
Time certificates of deposit
|
|
2,568
|
|
|
9,445
|
|
|
12,013
|
|
|
(416
|
)
|
|
4,198
|
|
|
3,782
|
|
||||||
Short-term borrowings
|
|
3,668
|
|
|
574
|
|
|
4,242
|
|
|
(165
|
)
|
|
203
|
|
|
38
|
|
||||||
Qualifying debt
|
|
(547
|
)
|
|
4,561
|
|
|
4,014
|
|
|
3,963
|
|
|
1,312
|
|
|
5,275
|
|
||||||
Total interest expense
|
|
10,765
|
|
|
45,990
|
|
|
56,755
|
|
|
5,659
|
|
|
11,897
|
|
|
17,556
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net increase
|
|
$
|
116,369
|
|
|
$
|
14,846
|
|
|
$
|
131,215
|
|
|
$
|
107,270
|
|
|
$
|
20,181
|
|
|
$
|
127,451
|
|
(1)
|
Changes due to both volume and rate have been allocated to volume changes.
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
2017
|
|
2016
|
|
Increase (Decrease)
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Service charges and fees
|
|
$
|
22,295
|
|
|
$
|
20,346
|
|
|
$
|
1,949
|
|
|
$
|
20,346
|
|
|
$
|
18,824
|
|
|
$
|
1,522
|
|
Income from equity investments
|
|
8,595
|
|
|
4,496
|
|
|
4,099
|
|
|
4,496
|
|
|
2,664
|
|
|
1,832
|
|
||||||
Card income
|
|
8,009
|
|
|
6,313
|
|
|
1,696
|
|
|
6,313
|
|
|
5,226
|
|
|
1,087
|
|
||||||
Foreign currency income
|
|
4,760
|
|
|
3,536
|
|
|
1,224
|
|
|
3,536
|
|
|
3,419
|
|
|
117
|
|
||||||
Lending related income and gains (losses) on sale of loans, net
|
|
4,340
|
|
|
2,212
|
|
|
2,128
|
|
|
2,212
|
|
|
5,295
|
|
|
(3,083
|
)
|
||||||
Income from bank owned life insurance
|
|
3,946
|
|
|
3,861
|
|
|
85
|
|
|
3,861
|
|
|
3,762
|
|
|
99
|
|
||||||
(Loss) gain on sales of investment securities, net
|
|
(7,656
|
)
|
|
2,343
|
|
|
(9,999
|
)
|
|
2,343
|
|
|
1,059
|
|
|
1,284
|
|
||||||
Unrealized (losses) gains on assets measured at fair value, net
|
|
(3,611
|
)
|
|
—
|
|
|
(3,611
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other income
|
|
2,438
|
|
|
2,237
|
|
|
201
|
|
|
2,237
|
|
|
2,666
|
|
|
(429
|
)
|
||||||
Total non-interest income
|
|
$
|
43,116
|
|
|
$
|
45,344
|
|
|
$
|
(2,228
|
)
|
|
$
|
45,344
|
|
|
$
|
42,915
|
|
|
$
|
2,429
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
2017
|
|
2016
|
|
Increase (Decrease)
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Salaries and employee benefits
|
$
|
253,238
|
|
|
$
|
214,344
|
|
|
$
|
38,894
|
|
|
$
|
214,344
|
|
|
$
|
188,810
|
|
|
$
|
25,534
|
|
Occupancy
|
29,404
|
|
|
27,860
|
|
|
1,544
|
|
|
27,860
|
|
|
27,303
|
|
|
557
|
|
||||||
Legal, professional, and directors' fees
|
28,722
|
|
|
29,814
|
|
|
(1,092
|
)
|
|
29,814
|
|
|
24,610
|
|
|
5,204
|
|
||||||
Data processing
|
22,716
|
|
|
19,225
|
|
|
3,491
|
|
|
19,225
|
|
|
19,657
|
|
|
(432
|
)
|
||||||
Deposit costs
|
18,900
|
|
|
9,731
|
|
|
9,169
|
|
|
9,731
|
|
|
4,983
|
|
|
4,748
|
|
||||||
Insurance
|
14,005
|
|
|
14,042
|
|
|
(37
|
)
|
|
14,042
|
|
|
12,898
|
|
|
1,144
|
|
||||||
Business development
|
5,960
|
|
|
6,128
|
|
|
(168
|
)
|
|
6,128
|
|
|
5,902
|
|
|
226
|
|
||||||
Loan and repossessed asset expenses
|
4,578
|
|
|
4,617
|
|
|
(39
|
)
|
|
4,617
|
|
|
2,999
|
|
|
1,618
|
|
||||||
Card expense
|
4,301
|
|
|
3,413
|
|
|
888
|
|
|
3,413
|
|
|
1,939
|
|
|
1,474
|
|
||||||
Marketing
|
3,770
|
|
|
3,804
|
|
|
(34
|
)
|
|
3,804
|
|
|
3,596
|
|
|
208
|
|
||||||
Intangible amortization
|
1,594
|
|
|
2,074
|
|
|
(480
|
)
|
|
2,074
|
|
|
2,788
|
|
|
(714
|
)
|
||||||
Net loss (gain) on sales / valuations of repossessed and other assets
|
9
|
|
|
(80
|
)
|
|
89
|
|
|
(80
|
)
|
|
(125
|
)
|
|
45
|
|
||||||
Acquisition / restructure expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,412
|
|
|
(12,412
|
)
|
||||||
Other expense
|
38,470
|
|
|
25,969
|
|
|
12,501
|
|
|
25,969
|
|
|
23,177
|
|
|
2,792
|
|
||||||
Total non-interest expense
|
$
|
425,667
|
|
|
$
|
360,941
|
|
|
$
|
64,726
|
|
|
$
|
360,941
|
|
|
$
|
330,949
|
|
|
$
|
29,992
|
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
December 31, 2018
|
|
(in millions)
|
||||||||||||||||||
Loans, net of deferred loan fees and costs
|
|
$
|
17,710.6
|
|
|
$
|
3,647.9
|
|
|
$
|
2,003.5
|
|
|
$
|
2,161.1
|
|
|
$
|
1,300.2
|
|
Deposits
|
|
19,177.4
|
|
|
5,090.2
|
|
|
3,996.4
|
|
|
2,347.5
|
|
|
1,839.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, net of deferred loan fees and costs
|
|
$
|
15,093.9
|
|
|
$
|
3,323.7
|
|
|
$
|
1,844.8
|
|
|
$
|
1,934.7
|
|
|
$
|
1,275.5
|
|
Deposits
|
|
16,972.5
|
|
|
4,841.3
|
|
|
3,951.4
|
|
|
2,461.1
|
|
|
1,681.7
|
|
Year Ended December 31, 2018
|
|
(in thousands)
|
||||||||||||||||||
Income (loss) before income taxes
|
|
$
|
510,328
|
|
|
$
|
139,047
|
|
|
$
|
99,322
|
|
|
$
|
59,334
|
|
|
$
|
48,132
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes
|
|
$
|
451,817
|
|
|
$
|
126,108
|
|
|
$
|
97,794
|
|
|
$
|
60,665
|
|
|
$
|
42,398
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services
|
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBL
|
|
Corporate & Other
|
||||||||||||
December 31, 2018
|
|
(in millions)
|
||||||||||||||||||||||
Loans, net of deferred loan fees and costs
|
|
$
|
210.0
|
|
|
$
|
1,547.5
|
|
|
$
|
1,200.9
|
|
|
$
|
1,479.9
|
|
|
$
|
4,154.9
|
|
|
$
|
4.7
|
|
Deposits
|
|
2,607.2
|
|
|
—
|
|
|
2,559.0
|
|
|
—
|
|
|
—
|
|
|
738.0
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans, net of deferred loan fees and costs
|
|
$
|
162.1
|
|
|
$
|
1,580.4
|
|
|
$
|
1,097.9
|
|
|
$
|
1,327.7
|
|
|
$
|
2,543.0
|
|
|
$
|
4.1
|
|
Deposits
|
|
2,230.4
|
|
|
—
|
|
|
1,737.6
|
|
|
—
|
|
|
—
|
|
|
69.0
|
|
Year Ended December 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||||
Income (loss) before income taxes
|
|
$
|
35,097
|
|
|
$
|
8,288
|
|
|
$
|
72,334
|
|
|
42,467
|
|
|
$
|
44,281
|
|
—
|
|
$
|
(37,974
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes
|
|
$
|
26,030
|
|
|
$
|
19,370
|
|
|
$
|
51,348
|
|
|
42,354
|
|
|
$
|
37,401
|
|
|
$
|
(51,651
|
)
|
|
|
At December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CDO
|
|
$
|
15,327
|
|
|
$
|
21,857
|
|
|
$
|
13,490
|
|
|
$
|
10,060
|
|
|
$
|
11,445
|
|
Commercial MBS issued by GSEs
|
|
100,106
|
|
|
109,077
|
|
|
117,792
|
|
|
19,114
|
|
|
2,147
|
|
|||||
Corporate debt securities
|
|
99,380
|
|
|
103,483
|
|
|
64,144
|
|
|
13,251
|
|
|
52,489
|
|
|||||
Private label commercial MBS
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,691
|
|
|
5,149
|
|
|||||
Private label residential MBS
|
|
924,594
|
|
|
868,524
|
|
|
433,685
|
|
|
257,128
|
|
|
70,243
|
|
|||||
Residential MBS issued by GSEs
|
|
1,530,124
|
|
|
1,689,295
|
|
|
1,356,258
|
|
|
1,171,702
|
|
|
893,047
|
|
|||||
Tax-exempt
|
|
841,573
|
|
|
765,960
|
|
|
500,312
|
|
|
334,830
|
|
|
299,037
|
|
|||||
Trust preferred securities
|
|
28,617
|
|
|
28,617
|
|
|
26,532
|
|
|
24,314
|
|
|
25,546
|
|
|||||
U.S. government sponsored agency securities
|
|
38,188
|
|
|
61,462
|
|
|
56,022
|
|
|
—
|
|
|
18,346
|
|
|||||
U.S. treasury securities
|
|
1,984
|
|
|
2,482
|
|
|
2,502
|
|
|
2,993
|
|
|
—
|
|
|||||
Total debt securities
|
|
$
|
3,579,893
|
|
|
$
|
3,650,757
|
|
|
$
|
2,570,737
|
|
|
$
|
1,838,083
|
|
|
$
|
1,377,449
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CRA investments
|
|
$
|
51,142
|
|
|
$
|
50,616
|
|
|
$
|
37,113
|
|
|
$
|
34,685
|
|
|
$
|
24,332
|
|
Mutual funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,702
|
|
|||||
Preferred stock
|
|
63,919
|
|
|
53,196
|
|
|
94,662
|
|
|
111,236
|
|
|
82,612
|
|
|||||
Total equity securities
|
|
$
|
115,061
|
|
|
$
|
103,812
|
|
|
$
|
131,775
|
|
|
$
|
145,921
|
|
|
$
|
144,646
|
|
|
|
December 31, 2018
|
|||||||||||||||||||||||||||||||||
|
|
Due Under 1 Year
|
|
Due 1-5 Years
|
|
Due 5-10 Years
|
|
Due Over 10 Years
|
|
Total
|
|||||||||||||||||||||||||
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|||||||||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Tax-exempt
|
|
$
|
11,300
|
|
|
4.48
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
14,493
|
|
|
3.80
|
%
|
|
$
|
277,112
|
|
|
4.78
|
%
|
|
$
|
302,905
|
|
|
4.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
CDO
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
50
|
|
|
—
|
%
|
|
$
|
50
|
|
|
—
|
%
|
Commercial MBS issued by GSEs (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106,385
|
|
|
2.23
|
|
|
106,385
|
|
|
2.23
|
|
|||||
Corporate debt securities
|
|
—
|
|
|
—
|
|
|
5,029
|
|
|
4.31
|
|
|
100,000
|
|
|
3.90
|
|
|
—
|
|
|
—
|
|
|
105,029
|
|
|
3.92
|
|
|||||
Private label residential MBS (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
948,161
|
|
|
3.33
|
|
|
948,161
|
|
|
3.33
|
|
|||||
Residential MBS issued by GSEs (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,564,181
|
|
|
2.72
|
|
|
1,564,181
|
|
|
2.72
|
|
|||||
Tax-exempt
|
|
2,306
|
|
|
3.14
|
|
|
6,038
|
|
|
3.40
|
|
|
76,197
|
|
|
3.50
|
|
|
457,545
|
|
|
3.02
|
|
|
542,086
|
|
|
3.10
|
|
|||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,000
|
|
|
3.51
|
|
|
32,000
|
|
|
3.51
|
|
|||||
U.S. government sponsored agency securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40,000
|
|
|
2.51
|
|
|
—
|
|
|
—
|
|
|
40,000
|
|
|
2.51
|
|
|||||
U.S. treasury securities
|
|
1,000
|
|
|
1.31
|
|
|
996
|
|
|
1.68
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,996
|
|
|
1.49
|
|
|||||
Total AFS securities
|
|
$
|
3,306
|
|
|
2.59
|
%
|
|
$
|
12,063
|
|
|
3.64
|
%
|
|
$
|
216,197
|
|
|
3.50
|
%
|
|
$
|
3,108,322
|
|
|
2.94
|
%
|
|
$
|
3,339,888
|
|
|
2.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
CRA investments
|
|
$
|
31,943
|
|
|
2.24
|
%
|
|
$
|
17,262
|
|
|
4.01
|
%
|
|
$
|
3,005
|
|
|
3.00
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
52,210
|
|
|
2.87
|
%
|
Preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65,954
|
|
|
6.75
|
|
|
65,954
|
|
|
6.75
|
|
|||||
Total equity securities
|
|
$
|
31,943
|
|
|
2.24
|
%
|
|
$
|
17,262
|
|
|
4.01
|
%
|
|
$
|
3,005
|
|
|
3.00
|
%
|
|
$
|
65,954
|
|
|
3.15
|
%
|
|
$
|
118,164
|
|
|
3.02
|
%
|
(1)
|
MBS are comprised of pools of loans with varying maturities, the majority of which are due after 10 years.
|
|
|
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Loans, held for investment
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
7,765,100
|
|
|
$
|
6,841,247
|
|
|
$
|
5,859,446
|
|
|
$
|
5,264,856
|
|
|
$
|
3,531,899
|
|
Commercial real estate - non-owner occupied
|
|
4,223,427
|
|
|
3,911,313
|
|
|
3,549,876
|
|
|
2,289,480
|
|
|
2,058,620
|
|
|||||
Commercial real estate - owner occupied
|
|
2,329,205
|
|
|
2,245,060
|
|
|
2,015,671
|
|
|
2,085,738
|
|
|
1,734,617
|
|
|||||
Construction and land development
|
|
2,155,625
|
|
|
1,647,726
|
|
|
1,489,488
|
|
|
1,143,228
|
|
|
754,154
|
|
|||||
Residential real estate
|
|
1,203,613
|
|
|
425,291
|
|
|
258,734
|
|
|
322,265
|
|
|
298,872
|
|
|||||
Consumer
|
|
69,995
|
|
|
48,583
|
|
|
38,572
|
|
|
26,474
|
|
|
32,633
|
|
|||||
Deferred loan fees and costs
|
|
(36,336
|
)
|
|
(25,285
|
)
|
|
(22,260
|
)
|
|
(19,187
|
)
|
|
(12,530
|
)
|
|||||
Loans, net of deferred loan fees and costs
|
|
17,710,629
|
|
|
15,093,935
|
|
|
13,189,527
|
|
|
11,112,854
|
|
|
8,398,265
|
|
|||||
Allowance for credit losses
|
|
(152,717
|
)
|
|
(140,050
|
)
|
|
(124,704
|
)
|
|
(119,068
|
)
|
|
(110,216
|
)
|
|||||
Total loans HFI
|
|
$
|
17,557,912
|
|
|
$
|
14,953,885
|
|
|
$
|
13,064,823
|
|
|
$
|
10,993,786
|
|
|
$
|
8,288,049
|
|
|
|
Due in one year or less
|
|
Due after one year to five years
|
|
Due after five years
|
|
Total
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
||||||||
Floating rate
|
|
$
|
1,425,954
|
|
|
$
|
3,233,634
|
|
|
$
|
899,241
|
|
|
$
|
5,558,829
|
|
Fixed rate
|
|
74,027
|
|
|
635,561
|
|
|
1,494,225
|
|
|
2,203,813
|
|
||||
Commercial real estate — non-owner occupied
|
|
|
|
|
|
|
|
|
||||||||
Floating rate
|
|
340,231
|
|
|
1,771,352
|
|
|
547,881
|
|
|
2,659,464
|
|
||||
Fixed rate
|
|
184,166
|
|
|
923,746
|
|
|
446,052
|
|
|
1,553,964
|
|
||||
Commercial real estate — owner occupied
|
|
|
|
|
|
|
|
|
||||||||
Floating rate
|
|
42,537
|
|
|
182,211
|
|
|
946,675
|
|
|
1,171,423
|
|
||||
Fixed rate
|
|
52,129
|
|
|
280,020
|
|
|
821,808
|
|
|
1,153,957
|
|
||||
Construction and land development
|
|
|
|
|
|
|
|
|
||||||||
Floating rate
|
|
840,181
|
|
|
1,059,753
|
|
|
132,191
|
|
|
2,032,125
|
|
||||
Fixed rate
|
|
24,714
|
|
|
48,664
|
|
|
29,250
|
|
|
102,628
|
|
||||
Residential real estate
|
|
|
|
|
|
|
|
|
||||||||
Floating rate
|
|
15,387
|
|
|
51,010
|
|
|
382,975
|
|
|
449,372
|
|
||||
Fixed rate
|
|
3,138
|
|
|
10,440
|
|
|
741,405
|
|
|
754,983
|
|
||||
Consumer
|
|
|
|
|
|
|
|
|
||||||||
Floating rate
|
|
42,248
|
|
|
10,639
|
|
|
3,492
|
|
|
56,379
|
|
||||
Fixed rate
|
|
2,796
|
|
|
1,690
|
|
|
9,206
|
|
|
13,692
|
|
||||
Total
|
|
$
|
3,047,508
|
|
|
$
|
8,208,720
|
|
|
$
|
6,454,401
|
|
|
$
|
17,710,629
|
|
|
|
December, 31
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Total non-accrual loans (1)
|
|
$
|
27,746
|
|
|
$
|
43,925
|
|
|
$
|
40,272
|
|
|
$
|
48,381
|
|
|
$
|
67,659
|
|
Loans past due 90 days or more on accrual status (2)
|
|
594
|
|
|
43
|
|
|
1,067
|
|
|
3,028
|
|
|
5,132
|
|
|||||
Accruing troubled debt restructured loans
|
|
36,458
|
|
|
42,431
|
|
|
53,637
|
|
|
70,707
|
|
|
84,720
|
|
|||||
Total nonperforming loans, excluding loans acquired with deteriorated credit quality
|
|
64,798
|
|
|
86,399
|
|
|
94,976
|
|
|
122,116
|
|
|
157,511
|
|
|||||
Other impaired loans
|
|
47,454
|
|
|
12,155
|
|
|
4,233
|
|
|
6,758
|
|
|
9,239
|
|
|||||
Total impaired loans
|
|
$
|
112,252
|
|
|
$
|
98,554
|
|
|
$
|
99,209
|
|
|
$
|
128,874
|
|
|
$
|
166,750
|
|
Other assets acquired through foreclosure, net
|
|
$
|
17,924
|
|
|
$
|
28,540
|
|
|
$
|
47,815
|
|
|
$
|
43,942
|
|
|
$
|
57,150
|
|
Non-accrual loans to gross loans held for investment
|
|
0.16
|
%
|
|
0.29
|
%
|
|
0.31
|
%
|
|
0.44
|
%
|
|
0.81
|
%
|
|||||
Loans past due 90 days or more on accrual status to gross loans held for investment
|
|
0.00
|
|
|
0.00
|
|
|
0.01
|
|
|
0.03
|
|
|
0.06
|
|
|||||
Interest income received on non-accrual loans
|
|
$
|
1,745
|
|
|
$
|
1,614
|
|
|
$
|
1,254
|
|
|
$
|
1,634
|
|
|
$
|
2,536
|
|
Interest income that would have been recorded under the original terms of non-accrual loans
|
|
2,268
|
|
|
2,444
|
|
|
2,045
|
|
|
2,549
|
|
|
3,758
|
|
(1)
|
Includes non-accrual TDR loans of
$8.0 million
and
$10.1 million
at
December 31, 2018
and
2017
, respectively.
|
(2)
|
Includes less than
$0.1 million
from loans acquired with deteriorated credit quality at
December 31, 2017
.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||
|
|
Non-accrual
Balance |
|
Percent of Non-Accrual Balance
|
|
Percent of
Total Loans |
|
Non-accrual
Balance |
|
Percent of Non-Accrual Balance
|
|
Percent of
Total Loans |
||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Commercial and industrial
|
|
$
|
15,090
|
|
|
54.39
|
%
|
|
0.09
|
%
|
|
$
|
22,026
|
|
|
50.14
|
%
|
|
0.15
|
%
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,721
|
|
|
17.58
|
|
|
0.05
|
|
||
Construction and land development
|
|
476
|
|
|
1.71
|
|
|
0.00
|
|
|
5,979
|
|
|
13.61
|
|
|
0.04
|
|
||
Residential real estate
|
|
11,939
|
|
|
43.03
|
|
|
0.07
|
|
|
8,117
|
|
|
18.48
|
|
|
0.05
|
|
||
Consumer
|
|
241
|
|
|
0.87
|
|
|
0.00
|
|
|
82
|
|
|
0.19
|
|
|
0.00
|
|
||
Total non-accrual loans
|
|
$
|
27,746
|
|
|
100.00
|
%
|
|
0.16
|
%
|
|
$
|
43,925
|
|
|
100.00
|
%
|
|
0.29
|
%
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Nonaccrual Loans
|
|
Percent of Segment's Total Loans
|
|
Nonaccrual Loans
|
|
Percent of Segment's Total Loans
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
Arizona
|
|
$
|
8,312
|
|
|
0.23
|
%
|
|
$
|
4,520
|
|
|
0.14
|
%
|
Nevada
|
|
6,374
|
|
|
0.32
|
|
|
8,189
|
|
|
0.44
|
|
||
Southern California
|
|
8,564
|
|
|
0.40
|
|
|
8,140
|
|
|
0.42
|
|
||
Northern California
|
|
4,255
|
|
|
0.33
|
|
|
14,489
|
|
|
1.14
|
|
||
Technology and Innovation
|
|
—
|
|
|
—
|
|
|
7,389
|
|
|
0.67
|
|
||
Other NBLS
|
|
241
|
|
|
0.00
|
|
|
51
|
|
|
0.00
|
|
||
Corporate & Other (1)
|
|
—
|
|
|
—
|
|
|
1,147
|
|
|
28.09
|
|
||
Total non-accrual loans
|
|
$
|
27,746
|
|
|
0.16
|
%
|
|
$
|
43,925
|
|
|
0.29
|
%
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Impaired
Balance |
|
Percent of Impaired Balance
|
|
Percent of
Total Loans |
|
Reserve
Balance |
|
Percent of Reserve Balance
|
|
Percent of
Total Allowance |
||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Commercial and industrial
|
|
$
|
63,896
|
|
|
56.92
|
%
|
|
0.36
|
%
|
|
$
|
621
|
|
|
91.19
|
%
|
|
0.41
|
%
|
Commercial real estate
|
|
18,937
|
|
|
16.87
|
|
|
0.11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction and land development
|
|
9,403
|
|
|
8.38
|
|
|
0.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential real estate
|
|
19,744
|
|
|
17.59
|
|
|
0.11
|
|
|
60
|
|
|
8.81
|
|
|
0.04
|
|
||
Consumer
|
|
272
|
|
|
0.24
|
|
|
0.00
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total impaired loans
|
|
$
|
112,252
|
|
|
100.00
|
%
|
|
0.63
|
%
|
|
$
|
681
|
|
|
100.00
|
%
|
|
0.45
|
%
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Impaired
Balance |
|
Percent of Impaired Balance
|
|
Percent of
Total Loans |
|
Reserve
Balance |
|
Percent of Reserve Balance
|
|
Percent of
Total Allowance |
||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Commercial and industrial
|
|
$
|
34,156
|
|
|
34.66
|
%
|
|
0.23
|
%
|
|
$
|
5,606
|
|
|
100.00
|
%
|
|
4.00
|
%
|
Commercial real estate
|
|
31,681
|
|
|
32.15
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction and land development
|
|
15,426
|
|
|
15.65
|
|
|
0.10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential real estate
|
|
17,170
|
|
|
17.42
|
|
|
0.11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Consumer
|
|
121
|
|
|
0.12
|
|
|
0.00
|
|
|
—
|
|
|
—
|
|
|
0.00
|
|
||
Total impaired loans
|
|
$
|
98,554
|
|
|
100.00
|
%
|
|
0.65
|
%
|
|
$
|
5,606
|
|
|
100.00
|
%
|
|
4.00
|
%
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Arizona
|
|
$
|
34,899
|
|
|
$
|
10,468
|
|
Nevada
|
|
33,860
|
|
|
46,730
|
|
||
Southern California
|
|
8,576
|
|
|
8,465
|
|
||
Northern California
|
|
4,928
|
|
|
14,489
|
|
||
Technology & Innovation
|
|
29,748
|
|
|
16,449
|
|
||
Other NBLs
|
|
241
|
|
|
51
|
|
||
Corporate & Other
|
|
—
|
|
|
1,902
|
|
||
Total impaired loans
|
|
$
|
112,252
|
|
|
$
|
98,554
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
|
$
|
140,050
|
|
|
$
|
124,704
|
|
|
$
|
119,068
|
|
|
$
|
110,216
|
|
|
$
|
100,050
|
|
Provision charged to operating expense:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
13,198
|
|
|
14,268
|
|
|
10,638
|
|
|
18,411
|
|
|
14,551
|
|
|||||
Commercial real estate
|
|
2,177
|
|
|
5,347
|
|
|
(2,449
|
)
|
|
(9,762
|
)
|
|
(6,176
|
)
|
|||||
Construction and land development
|
|
1,482
|
|
|
(2,805
|
)
|
|
1,732
|
|
|
(1,454
|
)
|
|
1,966
|
|
|||||
Residential real estate
|
|
5,867
|
|
|
318
|
|
|
(2,137
|
)
|
|
(3,539
|
)
|
|
(4,352
|
)
|
|||||
Consumer
|
|
276
|
|
|
122
|
|
|
216
|
|
|
(456
|
)
|
|
(1,263
|
)
|
|||||
Total Provision
|
|
23,000
|
|
|
17,250
|
|
|
8,000
|
|
|
3,200
|
|
|
4,726
|
|
|||||
Recoveries of loans previously charged-off:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
(2,427
|
)
|
|
(3,112
|
)
|
|
(3,991
|
)
|
|
(3,754
|
)
|
|
(4,728
|
)
|
|||||
Commercial real estate
|
|
(1,237
|
)
|
|
(2,897
|
)
|
|
(5,690
|
)
|
|
(4,139
|
)
|
|
(3,859
|
)
|
|||||
Construction and land development
|
|
(1,433
|
)
|
|
(1,229
|
)
|
|
(485
|
)
|
|
(1,872
|
)
|
|
(2,160
|
)
|
|||||
Residential real estate
|
|
(947
|
)
|
|
(1,778
|
)
|
|
(875
|
)
|
|
(2,181
|
)
|
|
(1,896
|
)
|
|||||
Consumer
|
|
(43
|
)
|
|
(84
|
)
|
|
(144
|
)
|
|
(203
|
)
|
|
(459
|
)
|
|||||
Total recoveries
|
|
(6,087
|
)
|
|
(9,100
|
)
|
|
(11,185
|
)
|
|
(12,149
|
)
|
|
(13,102
|
)
|
|||||
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
15,034
|
|
|
8,186
|
|
|
12,477
|
|
|
5,550
|
|
|
4,370
|
|
|||||
Commercial real estate
|
|
233
|
|
|
2,269
|
|
|
728
|
|
|
—
|
|
|
964
|
|
|||||
Construction and land development
|
|
1
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
87
|
|
|||||
Residential real estate
|
|
1,038
|
|
|
447
|
|
|
165
|
|
|
820
|
|
|
1,728
|
|
|||||
Consumer
|
|
114
|
|
|
102
|
|
|
161
|
|
|
127
|
|
|
513
|
|
|||||
Total charged-off
|
|
16,420
|
|
|
11,004
|
|
|
13,549
|
|
|
6,497
|
|
|
7,662
|
|
|||||
Net charge-offs
|
|
10,333
|
|
|
1,904
|
|
|
2,364
|
|
|
(5,652
|
)
|
|
(5,440
|
)
|
|||||
Balance at end of period
|
|
$
|
152,717
|
|
|
$
|
140,050
|
|
|
$
|
124,704
|
|
|
$
|
119,068
|
|
|
$
|
110,216
|
|
Net charge-offs (recoveries) to average loans outstanding
|
|
0.06
|
%
|
|
0.01
|
%
|
|
0.02
|
%
|
|
(0.06
|
)%
|
|
(0.07
|
)%
|
|||||
Allowance for credit losses to gross loans
|
|
0.86
|
|
|
0.93
|
|
|
0.95
|
|
|
1.07
|
|
|
1.31
|
|
|||||
Allowance for credit losses to gross organic loans
|
|
0.92
|
|
|
1.03
|
|
|
1.11
|
|
|
1.23
|
|
|
1.36
|
|
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Construction and Land Development
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for credit losses
|
|
$
|
83,118
|
|
|
$
|
34,829
|
|
|
$
|
22,513
|
|
|
$
|
11,276
|
|
|
$
|
981
|
|
|
$
|
152,717
|
|
Percent of total allowance for credit losses
|
|
54.4
|
%
|
|
22.8
|
%
|
|
14.8
|
%
|
|
7.4
|
%
|
|
0.6
|
%
|
|
100.0
|
%
|
||||||
Percent of loan type to total loans
|
|
43.8
|
|
|
36.9
|
|
|
12.1
|
|
|
6.8
|
|
|
0.4
|
|
|
100.0
|
|
||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for credit losses
|
|
$
|
82,527
|
|
|
$
|
31,648
|
|
|
$
|
19,599
|
|
|
$
|
5,500
|
|
|
$
|
776
|
|
|
$
|
140,050
|
|
Percent of total allowance for credit losses
|
|
58.9
|
%
|
|
22.6
|
%
|
|
14.0
|
%
|
|
3.9
|
%
|
|
0.6
|
%
|
|
100.0
|
%
|
||||||
Percent of loan type to total loans
|
|
45.2
|
|
|
40.8
|
|
|
10.9
|
|
|
2.8
|
|
|
0.3
|
|
|
100.0
|
|
||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for credit losses
|
|
$
|
73,333
|
|
|
$
|
25,673
|
|
|
$
|
21,175
|
|
|
$
|
3,851
|
|
|
$
|
672
|
|
|
$
|
124,704
|
|
Percent of total allowance for credit losses
|
|
58.8
|
%
|
|
20.6
|
%
|
|
17.0
|
%
|
|
3.1
|
%
|
|
0.5
|
%
|
|
100.0
|
%
|
||||||
Percent of loan type to total loans
|
|
44.3
|
|
|
42.1
|
|
|
11.3
|
|
|
2.0
|
|
|
0.3
|
|
|
100.0
|
|
||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for credit losses
|
|
$
|
71,181
|
|
|
$
|
23,160
|
|
|
$
|
18,976
|
|
|
$
|
5,278
|
|
|
$
|
473
|
|
|
$
|
119,068
|
|
Percent of total allowance for credit losses
|
|
59.8
|
%
|
|
19.5
|
%
|
|
15.9
|
%
|
|
4.4
|
%
|
|
0.4
|
%
|
|
100.0
|
%
|
||||||
Percent of loan type to total loans
|
|
47.4
|
|
|
39.3
|
|
|
10.2
|
|
|
2.9
|
|
|
0.2
|
|
|
100.0
|
|
||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for Credit Losses
|
|
$
|
54,566
|
|
|
$
|
28,783
|
|
|
$
|
18,558
|
|
|
$
|
7,456
|
|
|
$
|
853
|
|
|
$
|
110,216
|
|
Percent of Total Allowance for Credit Losses
|
|
49.5
|
%
|
|
26.1
|
%
|
|
16.8
|
%
|
|
6.8
|
%
|
|
0.8
|
%
|
|
100.0
|
%
|
||||||
Percent of loan type to total loans
|
|
42.0
|
|
|
45.0
|
|
|
9.0
|
|
|
3.6
|
|
|
0.4
|
|
|
100.0
|
|
|
|
December 31, 2018
|
|||||||||||
|
|
Number of Loans
|
|
Loan Balance
|
|
Percent of Loan Balance
|
|
Percent of Total Loans
|
|||||
|
|
(dollars in thousands)
|
|||||||||||
Commercial and industrial
|
|
107
|
|
|
$
|
125,585
|
|
|
62.37
|
%
|
|
0.71
|
%
|
Commercial real estate
|
|
42
|
|
|
71,116
|
|
|
35.32
|
|
|
0.40
|
|
|
Construction and land development
|
|
3
|
|
|
4,040
|
|
|
2.01
|
|
|
0.02
|
|
|
Residential real estate
|
|
1
|
|
|
527
|
|
|
0.26
|
|
|
0.00
|
|
|
Consumer
|
|
2
|
|
|
75
|
|
|
0.04
|
|
|
0.00
|
|
|
Total
|
|
155
|
|
|
$
|
201,343
|
|
|
100.00
|
%
|
|
1.13
|
%
|
|
|
December 31, 2017
|
|||||||||||
|
|
Number of Loans
|
|
Loan Balance
|
|
Percent of Loan Balance
|
|
Percent of Total Loans
|
|||||
|
|
(dollars in thousands)
|
|||||||||||
Commercial and industrial
|
|
166
|
|
|
$
|
127,015
|
|
|
51.63
|
%
|
|
0.84
|
%
|
Commercial real estate
|
|
48
|
|
|
90,653
|
|
|
36.85
|
|
|
0.60
|
|
|
Construction and land development
|
|
5
|
|
|
18,471
|
|
|
7.51
|
|
|
0.12
|
|
|
Residential real estate
|
|
3
|
|
|
8,971
|
|
|
3.65
|
|
|
0.06
|
|
|
Consumer
|
|
10
|
|
|
880
|
|
|
0.36
|
|
|
0.01
|
|
|
Total
|
|
232
|
|
|
$
|
245,990
|
|
|
100.00
|
%
|
|
1.63
|
%
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
||||||||||
|
|
Gross Balance
|
|
Valuation Allowance
|
|
Net Balance
|
||||||
|
|
(in thousands)
|
||||||||||
Balance, beginning of period
|
|
$
|
32,552
|
|
|
$
|
(4,012
|
)
|
|
$
|
28,540
|
|
Transfers to other assets acquired through foreclosure, net
|
|
5,744
|
|
|
—
|
|
|
5,744
|
|
|||
Proceeds from sale of other real estate owned and repossessed assets, net
|
|
(12,636
|
)
|
|
3,224
|
|
|
(9,412
|
)
|
|||
Charitable contribution (1)
|
|
(6,895
|
)
|
|
—
|
|
|
(6,895
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
(1,267
|
)
|
|
(1,267
|
)
|
|||
Gains (losses), net (2)
|
|
1,214
|
|
|
—
|
|
|
1,214
|
|
|||
Balance, end of period
|
|
$
|
19,979
|
|
|
$
|
(2,055
|
)
|
|
$
|
17,924
|
|
|
|
|
|
|
|
|
||||||
|
|
2017
|
||||||||||
Balance, beginning of period
|
|
$
|
54,138
|
|
|
$
|
(6,323
|
)
|
|
$
|
47,815
|
|
Transfers to other assets acquired through foreclosure, net
|
|
1,812
|
|
|
—
|
|
|
1,812
|
|
|||
Proceeds from sale of other real estate owned and repossessed assets, net
|
|
(23,626
|
)
|
|
2,431
|
|
|
(21,195
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
(120
|
)
|
|
(120
|
)
|
|||
Gains (losses), net (2)
|
|
228
|
|
|
—
|
|
|
228
|
|
|||
Balance, end of period
|
|
$
|
32,552
|
|
|
$
|
(4,012
|
)
|
|
$
|
28,540
|
|
|
|
|
|
|
|
|
||||||
|
|
2016
|
||||||||||
Balance, beginning of period
|
|
$
|
52,984
|
|
|
$
|
(9,042
|
)
|
|
$
|
43,942
|
|
Transfers to other assets acquired through foreclosure, net
|
|
13,110
|
|
|
—
|
|
|
13,110
|
|
|||
Proceeds from sale of other real estate owned and repossessed assets, net
|
|
(11,584
|
)
|
|
2,451
|
|
|
(9,133
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
268
|
|
|
268
|
|
|||
(Losses) gains, net (2)
|
|
(372
|
)
|
|
—
|
|
|
(372
|
)
|
|||
Balance, end of period
|
|
$
|
54,138
|
|
|
$
|
(6,323
|
)
|
|
$
|
47,815
|
|
(1)
|
Represents a contribution of OREO property to the Company's charitable foundation. See "
Note 19. Related Party Transactions
" for further discussion.
|
(2)
|
Includes net gains related to initial transfers to other assets of
$1.0 million
,
$0.1 million
, and
$0.4 million
during the years ended
December 31, 2018
,
2017
, and
2016
, respectively.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Subject to amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Core deposit intangibles
|
|
$
|
14,647
|
|
|
$
|
5,737
|
|
|
$
|
8,910
|
|
|
$
|
14,647
|
|
|
$
|
4,144
|
|
|
$
|
10,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Gross Carrying Amount
|
|
Impairment
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Impairment
|
|
Net Carrying Amount
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Not subject to amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade name
|
|
$
|
350
|
|
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
350
|
|
|
$
|
—
|
|
|
$
|
350
|
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Average Balance
|
|
Rate
|
|
Average Balance
|
|
Rate
|
|
Average Balance
|
|
Rate
|
|||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||
Interest-bearing transaction accounts
|
|
$
|
1,891,160
|
|
|
0.61
|
%
|
|
$
|
1,467,231
|
|
|
0.27
|
%
|
|
$
|
1,217,344
|
|
|
0.18
|
%
|
Savings and money market accounts
|
|
6,501,241
|
|
|
0.85
|
|
|
6,208,057
|
|
|
0.42
|
|
|
5,827,549
|
|
|
0.33
|
|
|||
Time certificates of deposit
|
|
1,748,675
|
|
|
1.37
|
|
|
1,560,896
|
|
|
0.76
|
|
|
1,615,502
|
|
|
0.50
|
|
|||
Total interest-bearing deposits
|
|
10,141,076
|
|
|
0.89
|
|
|
9,236,184
|
|
|
0.45
|
|
|
8,660,395
|
|
|
0.34
|
|
|||
Non-interest-bearing demand deposits
|
|
7,712,791
|
|
|
—
|
|
|
6,788,783
|
|
|
—
|
|
|
5,062,319
|
|
|
—
|
|
|||
Total deposits
|
|
$
|
17,853,867
|
|
|
0.51
|
%
|
|
$
|
16,024,967
|
|
|
0.26
|
%
|
|
$
|
13,722,714
|
|
|
0.22
|
%
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
3 months or less
|
|
$
|
682,549
|
|
|
$
|
536,116
|
|
3 to 6 months
|
|
446,847
|
|
|
440,732
|
|
||
6 to 12 months
|
|
409,736
|
|
|
329,026
|
|
||
Over 12 months
|
|
99,211
|
|
|
142,161
|
|
||
Total
|
|
$
|
1,638,343
|
|
|
$
|
1,448,035
|
|
|
|
|
|
December 31,
|
||||||
Name of Trust
|
|
Maturity
|
|
2018
|
|
2017
|
||||
At fair value
|
|
|
|
(in thousands)
|
||||||
BankWest Nevada Capital Trust II
|
|
2033
|
|
$
|
15,464
|
|
|
$
|
15,464
|
|
Intermountain First Statutory Trust I
|
|
2034
|
|
10,310
|
|
|
10,310
|
|
||
First Independent Statutory Trust I
|
|
2035
|
|
7,217
|
|
|
7,217
|
|
||
WAL Trust No. 1
|
|
2036
|
|
20,619
|
|
|
20,619
|
|
||
WAL Statutory Trust No. 2
|
|
2037
|
|
5,155
|
|
|
5,155
|
|
||
WAL Statutory Trust No. 3
|
|
2037
|
|
7,732
|
|
|
7,732
|
|
||
Total contractual balance
|
|
|
|
66,497
|
|
|
66,497
|
|
||
FVO on junior subordinated debt
|
|
|
|
(17,812
|
)
|
|
(10,263
|
)
|
||
Junior subordinated debt, at fair value
|
|
|
|
$
|
48,685
|
|
|
$
|
56,234
|
|
At amortized cost
|
|
|
|
|
|
|
||||
Bridge Capital Holdings Trust I
|
|
2035
|
|
$
|
12,372
|
|
|
$
|
12,372
|
|
Bridge Capital Holdings Trust II
|
|
2036
|
|
5,155
|
|
|
5,155
|
|
||
Total contractual balance
|
|
|
|
17,527
|
|
|
17,527
|
|
||
Purchase accounting adjustment, net of accretion (1)
|
|
|
|
(5,155
|
)
|
|
(5,465
|
)
|
||
Junior subordinated debt, at amortized cost
|
|
|
|
$
|
12,372
|
|
|
$
|
12,062
|
|
|
|
|
|
|
|
|
||||
Total junior subordinated debt
|
|
|
|
$
|
61,057
|
|
|
$
|
68,296
|
|
(1)
|
The purchase accounting adjustment is being amortized over the remaining life of the trusts, pursuant to accounting guidance.
|
|
|
Total Capital
|
|
Tier 1 Capital
|
|
Risk-Weighted Assets
|
|
Tangible Average Assets
|
|
Total Capital Ratio
|
|
Tier 1 Capital Ratio
|
|
Tier 1 Leverage Ratio
|
|
Common Equity
Tier 1 |
||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
WAL
|
|
$
|
2,897,356
|
|
|
$
|
2,431,320
|
|
|
$
|
21,983,976
|
|
|
$
|
22,204,799
|
|
|
13.2
|
%
|
|
11.1
|
%
|
|
10.9
|
%
|
|
10.7
|
%
|
WAB
|
|
2,628,650
|
|
|
2,317,745
|
|
|
22,040,765
|
|
|
22,209,700
|
|
|
11.9
|
|
|
10.5
|
|
|
10.4
|
|
|
10.5
|
|
||||
Well-capitalized ratios
|
|
|
|
|
|
|
|
|
|
10.0
|
|
|
8.0
|
|
|
5.0
|
|
|
6.5
|
|
||||||||
Minimum capital ratios
|
|
|
|
|
|
|
|
|
|
8.0
|
|
|
6.0
|
|
|
4.0
|
|
|
4.5
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
WAL
|
|
$
|
2,460,988
|
|
|
$
|
2,013,744
|
|
|
$
|
18,569,608
|
|
|
$
|
19,624,517
|
|
|
13.3
|
%
|
|
10.8
|
%
|
|
10.3
|
%
|
|
10.4
|
%
|
WAB
|
|
2,299,919
|
|
|
2,003,745
|
|
|
18,664,200
|
|
|
19,541,990
|
|
|
12.3
|
|
|
10.7
|
|
|
10.3
|
|
|
10.7
|
|
||||
Well-capitalized ratios
|
|
|
|
|
|
|
|
|
|
10.0
|
|
|
8.0
|
|
|
5.0
|
|
|
6.5
|
|
||||||||
Minimum capital ratios
|
|
|
|
|
|
|
|
|
|
8.0
|
|
|
6.0
|
|
|
4.0
|
|
|
4.5
|
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
|
Total
|
|
Less Than 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
After 5 Years
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Time deposit maturities
|
|
$
|
1,834,988
|
|
|
$
|
1,707,065
|
|
|
$
|
122,908
|
|
|
$
|
5,015
|
|
|
$
|
—
|
|
Qualifying debt
|
|
409,024
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
409,024
|
|
|||||
Other borrowings
|
|
491,000
|
|
|
491,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Operating lease obligations
|
|
56,891
|
|
|
11,370
|
|
|
17,740
|
|
|
12,364
|
|
|
15,417
|
|
|||||
Purchase obligations
|
|
78,692
|
|
|
32,343
|
|
|
20,572
|
|
|
16,877
|
|
|
8,900
|
|
|||||
Total
|
|
$
|
2,870,595
|
|
|
$
|
2,241,778
|
|
|
$
|
161,220
|
|
|
$
|
34,256
|
|
|
$
|
433,341
|
|
|
|
|
|
Amount of Commitment Expiration per Period
|
||||||||||||||||
|
|
Total Amounts Committed
|
|
Less Than 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
After 5 Years
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Commitments to extend credit
|
|
$
|
7,556,741
|
|
|
$
|
2,650,999
|
|
|
$
|
2,959,595
|
|
|
$
|
851,520
|
|
|
$
|
1,094,627
|
|
Credit card commitments and financial guarantees
|
|
237,312
|
|
|
237,312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Standby letters of credit
|
|
390,161
|
|
|
276,633
|
|
|
98,774
|
|
|
14,754
|
|
|
—
|
|
|||||
Total
|
|
$
|
8,184,214
|
|
|
$
|
3,164,944
|
|
|
$
|
3,058,369
|
|
|
$
|
866,274
|
|
|
$
|
1,094,627
|
|
|
|
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Customer Repurchase Accounts:
|
|
|
|
|
|
|
||||||
Maximum month-end balance
|
|
$
|
30,559
|
|
|
$
|
41,153
|
|
|
$
|
50,332
|
|
Balance at end of year
|
|
22,411
|
|
|
26,017
|
|
|
41,728
|
|
|||
Average balance
|
|
24,421
|
|
|
33,842
|
|
|
41,623
|
|
|||
Lines of Credit:
|
|
|
|
|
|
|
||||||
Maximum month-end balance
|
|
—
|
|
|
—
|
|
|
5,000
|
|
|||
Balance at end of year
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Average balance
|
|
—
|
|
|
—
|
|
|
562
|
|
|||
Federal funds purchased
|
|
|
|
|
|
|
||||||
Maximum month-end balance
|
|
256,000
|
|
|
—
|
|
|
—
|
|
|||
Balance at end of year
|
|
256,000
|
|
|
—
|
|
|
—
|
|
|||
Average balance
|
|
20,542
|
|
|
—
|
|
|
—
|
|
|||
FHLB Advances:
|
|
|
|
|
|
|
||||||
Maximum month-end balance
|
|
625,000
|
|
|
440,000
|
|
|
490,000
|
|
|||
Balance at end of year
|
|
235,000
|
|
|
390,000
|
|
|
80,000
|
|
|||
Average balance
|
|
215,699
|
|
|
29,781
|
|
|
58,750
|
|
|||
Total Short-Term Borrowed Funds
|
|
$
|
513,411
|
|
|
$
|
416,017
|
|
|
$
|
121,728
|
|
Weighted average interest rate at end of year
|
|
2.46
|
%
|
|
1.33
|
%
|
|
0.42
|
%
|
|||
Weighted average interest rate during year
|
|
1.73
|
|
|
0.53
|
|
|
0.44
|
|
|
|
December 31, 2018
|
||||||
|
|
Available
Balance |
|
Outstanding Balance
|
||||
|
|
(in millions)
|
||||||
Unsecured fed funds credit lines at correspondent banks
|
|
|
|
|
||||
Committed amounts
|
|
$
|
261.0
|
|
|
$
|
126.0
|
|
Uncommitted amounts
|
|
409.0
|
|
|
130.0
|
|
||
Other lines with correspondent banks:
|
|
|
|
|
||||
Secured other lines
|
|
—
|
|
|
—
|
|
||
Unsecured other lines
|
|
45.0
|
|
|
—
|
|
||
Total other lines with correspondent banks
|
|
$
|
715.0
|
|
|
$
|
256.0
|
|
•
|
4.5% CET1 to risk-weighted assets;
|
•
|
6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;
|
•
|
8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and
|
•
|
4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (called “leverage ratio”).
|
Item 7A.
|
Quantitative and Qualitative Disclosures about Market Risk.
|
|
|
Interest Rate Scenario (change in basis points from Base)
|
||||||||||||||||||||||||||
|
|
Down 100
|
|
Base
|
|
Up 100
|
|
Up 200
|
|
Up 300
|
|
Up 400
|
|
Short Rates Up 100
|
||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||
Interest Income
|
|
$
|
1,077,413
|
|
|
$
|
1,185,872
|
|
|
$
|
1,306,369
|
|
|
$
|
1,426,302
|
|
|
$
|
1,546,495
|
|
|
$
|
1,667,029
|
|
|
$
|
1,294,126
|
|
Interest Expense
|
|
147,959
|
|
|
198,680
|
|
|
253,016
|
|
|
307,350
|
|
|
361,680
|
|
|
416,006
|
|
|
252,033
|
|
|||||||
Net Interest Income
|
|
929,454
|
|
|
987,192
|
|
|
1,053,353
|
|
|
1,118,952
|
|
|
1,184,815
|
|
|
1,251,023
|
|
|
1,042,093
|
|
|||||||
% Change
|
|
(5.8
|
)%
|
|
|
|
6.7
|
%
|
|
13.3
|
%
|
|
20.0
|
%
|
|
26.7
|
%
|
|
5.6
|
%
|
|
|
Interest Rate Scenario (change in basis points from Base)
|
||||||||||||||||||||||||||
|
|
Down 100
|
|
Base
|
|
Up 100
|
|
Up 200
|
|
Up 300
|
|
Up 400
|
|
Short Rates Up 100
|
||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||
Assets
|
|
$
|
23,532,413
|
|
|
$
|
23,018,258
|
|
|
$
|
22,486,076
|
|
|
$
|
21,994,506
|
|
|
$
|
21,546,768
|
|
|
$
|
21,121,409
|
|
|
$
|
23,016,043
|
|
Liabilities
|
|
18,908,801
|
|
|
18,498,856
|
|
|
18,173,139
|
|
|
17,893,596
|
|
|
17,648,641
|
|
|
17,430,703
|
|
|
18,942,813
|
|
|||||||
Net Present Value
|
|
4,623,612
|
|
|
4,519,402
|
|
|
4,312,937
|
|
|
4,100,910
|
|
|
3,898,127
|
|
|
3,690,706
|
|
|
4,073,230
|
|
|||||||
% Change
|
|
2.3
|
%
|
|
|
|
(4.6
|
)%
|
|
(9.3
|
)%
|
|
(13.7
|
)%
|
|
(18.3
|
)%
|
|
(9.9
|
)%
|
December 31,
|
||||||||||||||||||||
2018
|
|
2017
|
||||||||||||||||||
Notional
|
|
Net Value
|
|
Weighted Average Term (Years)
|
|
Notional
|
|
Net Value
|
|
Weighted Average Term (Years)
|
||||||||||
(dollars in thousands)
|
||||||||||||||||||||
$
|
1,017,773
|
|
|
$
|
(42,477
|
)
|
|
15.8
|
|
|
$
|
1,115,736
|
|
|
$
|
(51,629
|
)
|
|
16.0
|
|
Item 8.
|
Financial Statements and Supplementary Data
|
|
PAGE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
||||
|
|
(in thousands,
except shares and per share amounts) |
||||||
Assets:
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
180,053
|
|
|
$
|
181,191
|
|
Interest-bearing deposits in other financial institutions
|
|
318,519
|
|
|
235,577
|
|
||
Cash, cash equivalents, and restricted cash
|
|
498,572
|
|
|
416,768
|
|
||
Money market investments
|
|
7
|
|
|
—
|
|
||
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017
|
|
3,276,988
|
|
|
3,499,519
|
|
||
Investment securities - HTM, at amortized cost; fair value of $298,648 at December 31, 2018 and $256,314 at December 31, 2017
|
|
302,905
|
|
|
255,050
|
|
||
Investment securities - equity
|
|
115,061
|
|
|
—
|
|
||
Investments in restricted stock, at cost
|
|
66,132
|
|
|
65,785
|
|
||
Loans, net of deferred loan fees and costs
|
|
17,710,629
|
|
|
15,093,935
|
|
||
Less: allowance for credit losses
|
|
(152,717
|
)
|
|
(140,050
|
)
|
||
Net loans held for investment
|
|
17,557,912
|
|
|
14,953,885
|
|
||
Premises and equipment, net
|
|
119,474
|
|
|
118,719
|
|
||
Other assets acquired through foreclosure, net
|
|
17,924
|
|
|
28,540
|
|
||
Bank owned life insurance
|
|
170,145
|
|
|
167,764
|
|
||
Goodwill
|
|
289,895
|
|
|
289,895
|
|
||
Other intangible assets, net
|
|
9,260
|
|
|
10,853
|
|
||
Deferred tax assets, net
|
|
31,990
|
|
|
5,780
|
|
||
Investments in LIHTC
|
|
342,381
|
|
|
267,023
|
|
||
Other assets
|
|
310,840
|
|
|
249,504
|
|
||
Total assets
|
|
$
|
23,109,486
|
|
|
$
|
20,329,085
|
|
Liabilities:
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Non-interest-bearing demand
|
|
$
|
7,456,141
|
|
|
$
|
7,433,962
|
|
Interest-bearing
|
|
11,721,306
|
|
|
9,538,570
|
|
||
Total deposits
|
|
19,177,447
|
|
|
16,972,532
|
|
||
Customer repurchase agreements
|
|
22,411
|
|
|
26,017
|
|
||
Other borrowings
|
|
491,000
|
|
|
390,000
|
|
||
Qualifying debt
|
|
360,458
|
|
|
376,905
|
|
||
Other liabilities
|
|
444,436
|
|
|
333,933
|
|
||
Total liabilities
|
|
20,495,752
|
|
|
18,099,387
|
|
||
Commitments and contingencies (Note 15)
|
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
|
||||
Common stock - par value $0.0001; 200,000,000 authorized; 106,741,870 shares issued at December 31, 2018 and 107,057,520 at December 31, 2017
|
|
10
|
|
|
10
|
|
||
Treasury stock, at cost (1,793,231 shares at December 31, 2018 and 1,570,155 shares at December 31, 2017)
|
|
(53,083
|
)
|
|
(40,173
|
)
|
||
Additional paid in capital
|
|
1,417,724
|
|
|
1,424,540
|
|
||
Accumulated other comprehensive (loss)
|
|
(33,622
|
)
|
|
(3,145
|
)
|
||
Retained earnings
|
|
1,282,705
|
|
|
848,466
|
|
||
Total stockholders’ equity
|
|
2,613,734
|
|
|
2,229,698
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
23,109,486
|
|
|
$
|
20,329,085
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands, except per share amounts)
|
||||||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans, including fees
|
|
$
|
910,577
|
|
|
$
|
747,510
|
|
|
$
|
636,596
|
|
Investment securities
|
|
106,752
|
|
|
83,354
|
|
|
52,570
|
|
|||
Dividends
|
|
7,915
|
|
|
7,740
|
|
|
9,002
|
|
|||
Other
|
|
8,239
|
|
|
6,909
|
|
|
2,338
|
|
|||
Total interest income
|
|
1,033,483
|
|
|
845,513
|
|
|
700,506
|
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Deposits
|
|
90,464
|
|
|
41,965
|
|
|
29,722
|
|
|||
Other borrowings
|
|
4,329
|
|
|
561
|
|
|
508
|
|
|||
Qualifying debt
|
|
22,287
|
|
|
18,273
|
|
|
12,998
|
|
|||
Other
|
|
524
|
|
|
50
|
|
|
65
|
|
|||
Total interest expense
|
|
117,604
|
|
|
60,849
|
|
|
43,293
|
|
|||
Net interest income
|
|
915,879
|
|
|
784,664
|
|
|
657,213
|
|
|||
Provision for credit losses
|
|
23,000
|
|
|
17,250
|
|
|
8,000
|
|
|||
Net interest income after provision for credit losses
|
|
892,879
|
|
|
767,414
|
|
|
649,213
|
|
|||
Non-interest income:
|
|
|
|
|
|
|
||||||
Service charges and fees
|
|
22,295
|
|
|
20,346
|
|
|
18,824
|
|
|||
Income from equity investments
|
|
8,595
|
|
|
4,496
|
|
|
2,664
|
|
|||
Card income
|
|
8,009
|
|
|
6,313
|
|
|
5,226
|
|
|||
Foreign currency income
|
|
4,760
|
|
|
3,536
|
|
|
3,419
|
|
|||
Lending related income and gains (losses) on sale of loans, net
|
|
4,340
|
|
|
2,212
|
|
|
5,295
|
|
|||
Income from bank owned life insurance
|
|
3,946
|
|
|
3,861
|
|
|
3,762
|
|
|||
(Loss) gain on sales of investment securities, net
|
|
(7,656
|
)
|
|
2,343
|
|
|
1,059
|
|
|||
Unrealized (losses) gains on assets measured at fair value, net
|
|
(3,611
|
)
|
|
(1
|
)
|
|
8
|
|
|||
Other income
|
|
2,438
|
|
|
2,238
|
|
|
2,658
|
|
|||
Total non-interest income
|
|
43,116
|
|
|
45,344
|
|
|
42,915
|
|
|||
Non-interest expense:
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
253,238
|
|
|
214,344
|
|
|
188,810
|
|
|||
Occupancy
|
|
29,404
|
|
|
27,860
|
|
|
27,303
|
|
|||
Legal, professional, and directors' fees
|
|
28,722
|
|
|
29,814
|
|
|
24,610
|
|
|||
Data processing
|
|
22,716
|
|
|
19,225
|
|
|
19,657
|
|
|||
Deposit costs
|
|
18,900
|
|
|
9,731
|
|
|
4,983
|
|
|||
Insurance
|
|
14,005
|
|
|
14,042
|
|
|
12,898
|
|
|||
Business development
|
|
5,960
|
|
|
6,128
|
|
|
5,902
|
|
|||
Loan and repossessed asset expenses
|
|
4,578
|
|
|
4,617
|
|
|
2,999
|
|
|||
Card expense
|
|
4,301
|
|
|
3,413
|
|
|
1,939
|
|
|||
Marketing
|
|
3,770
|
|
|
3,804
|
|
|
3,596
|
|
|||
Intangible amortization
|
|
1,594
|
|
|
2,074
|
|
|
2,788
|
|
|||
Net loss (gain) on sales / valuations of repossessed and other assets
|
|
9
|
|
|
(80
|
)
|
|
(125
|
)
|
|||
Acquisition / restructure expense
|
|
—
|
|
|
—
|
|
|
12,412
|
|
|||
Other expense
|
|
38,470
|
|
|
25,969
|
|
|
23,177
|
|
|||
Total non-interest expense
|
|
425,667
|
|
|
360,941
|
|
|
330,949
|
|
|||
Income before provision for income taxes
|
|
510,328
|
|
|
451,817
|
|
|
361,179
|
|
|||
Income tax expense
|
|
74,540
|
|
|
126,325
|
|
|
101,381
|
|
|||
Net income
|
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands, except per share amounts)
|
||||||||||
Earnings per share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
4.16
|
|
|
$
|
3.12
|
|
|
$
|
2.52
|
|
Diluted
|
|
4.14
|
|
|
3.10
|
|
|
2.50
|
|
|||
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
||||||
Basic
|
|
104,669
|
|
|
104,179
|
|
|
103,042
|
|
|||
Diluted
|
|
105,370
|
|
|
104,997
|
|
|
103,843
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Net income
|
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
Other comprehensive (loss) income, net:
|
|
|
|
|
|
|
||||||
Unrealized (loss) gain on AFS securities, net of tax effect of $13,354, $(3,973), and $15,099, respectively
|
|
(40,808
|
)
|
|
6,334
|
|
|
(24,254
|
)
|
|||
Unrealized (loss) gain on SERP, net of tax effect of $24, $(79), and $(18), respectively
|
|
(77
|
)
|
|
264
|
|
|
31
|
|
|||
Unrealized gain (loss) on junior subordinated debt, net of tax effect of $(1,857), $2,220, and $1,405, respectively
|
|
5,693
|
|
|
(3,604
|
)
|
|
(2,077
|
)
|
|||
Realized loss (gain) on sale of AFS securities included in income, net of tax effect of $(1,883), $899, and $404, respectively
|
|
5,773
|
|
|
(1,444
|
)
|
|
(655
|
)
|
|||
Net other comprehensive (loss) income
|
|
(29,419
|
)
|
|
1,550
|
|
|
(26,955
|
)
|
|||
Comprehensive income
|
|
$
|
406,369
|
|
|
$
|
327,042
|
|
|
$
|
232,843
|
|
|
|
Common Stock
|
|
Additional Paid in Capital
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
Retained Earnings
|
|
Total Stockholders’ Equity
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Balance, December 31, 2015
|
|
103,087
|
|
|
$
|
10
|
|
|
$
|
1,323,473
|
|
|
$
|
(16,879
|
)
|
|
$
|
22,260
|
|
|
$
|
262,638
|
|
|
$
|
1,591,502
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
259,798
|
|
|
259,798
|
|
||||||
Exercise of stock options
|
|
77
|
|
|
—
|
|
|
1,070
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,070
|
|
||||||
Restricted stock, performance stock units, and other grants, net
|
|
662
|
|
|
—
|
|
|
19,812
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,812
|
|
||||||
Restricted stock surrendered (1)
|
|
(305
|
)
|
|
—
|
|
|
—
|
|
|
(9,483
|
)
|
|
—
|
|
|
—
|
|
|
(9,483
|
)
|
||||||
ATM common stock issuance, net
|
|
1,550
|
|
|
—
|
|
|
55,785
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,785
|
|
||||||
Other comprehensive loss, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,955
|
)
|
|
—
|
|
|
(26,955
|
)
|
||||||
Balance, December 31, 2016
|
|
105,071
|
|
|
$
|
10
|
|
|
$
|
1,400,140
|
|
|
$
|
(26,362
|
)
|
|
$
|
(4,695
|
)
|
|
$
|
522,436
|
|
|
$
|
1,891,529
|
|
Balance, January 1, 2017 (2)
|
|
105,071
|
|
|
10
|
|
|
1,400,140
|
|
|
(26,362
|
)
|
|
(4,695
|
)
|
|
522,974
|
|
|
1,892,067
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
325,492
|
|
|
325,492
|
|
||||||
Exercise of stock options
|
|
38
|
|
|
—
|
|
|
846
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
846
|
|
||||||
Restricted stock, performance stock units, and other grants, net
|
|
648
|
|
|
—
|
|
|
23,554
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,554
|
|
||||||
Restricted stock surrendered (1)
|
|
(270
|
)
|
|
—
|
|
|
—
|
|
|
(13,811
|
)
|
|
—
|
|
|
—
|
|
|
(13,811
|
)
|
||||||
Other comprehensive income, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,550
|
|
|
—
|
|
|
1,550
|
|
||||||
Balance, December 31, 2017
|
|
105,487
|
|
|
$
|
10
|
|
|
$
|
1,424,540
|
|
|
$
|
(40,173
|
)
|
|
$
|
(3,145
|
)
|
|
$
|
848,466
|
|
|
$
|
2,229,698
|
|
Balance, January 1, 2018 (3)
|
|
105,487
|
|
|
10
|
|
|
1,424,540
|
|
|
(40,173
|
)
|
|
(4,203
|
)
|
|
849,524
|
|
|
2,229,698
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
435,788
|
|
|
435,788
|
|
||||||
Exercise of stock options
|
|
22
|
|
|
—
|
|
|
554
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
554
|
|
||||||
Restricted stock, performance stock unit, and other grants, net
|
|
564
|
|
|
—
|
|
|
25,711
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,711
|
|
||||||
Restricted stock surrendered (1)
|
|
(223
|
)
|
|
—
|
|
|
—
|
|
|
(12,910
|
)
|
|
—
|
|
|
—
|
|
|
(12,910
|
)
|
||||||
Stock repurchase
|
|
(901
|
)
|
|
—
|
|
|
(33,081
|
)
|
|
—
|
|
|
—
|
|
|
(2,607
|
)
|
|
(35,688
|
)
|
||||||
Other comprehensive loss, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,419
|
)
|
|
—
|
|
|
(29,419
|
)
|
||||||
Balance, December 31, 2018
|
|
104,949
|
|
|
$
|
10
|
|
|
$
|
1,417,724
|
|
|
$
|
(53,083
|
)
|
|
$
|
(33,622
|
)
|
|
$
|
1,282,705
|
|
|
$
|
2,613,734
|
|
(1)
|
Share amounts represent Treasury Shares, see "
Note 1. Summary of Significant Accounting Policies
" for further discussion.
|
(2)
|
As adjusted for adoption of ASU 2017-12. The cumulative effect of adoption of this guidance at January 1, 2017 resulted in an increase to retained earnings of $0.5 million and a corresponding increase to loans for the fair market value adjustment on the swaps.
|
(3)
|
As adjusted for adoption of ASU 2016-01 and ASU 2018-02. The cumulative effect of adoption of this guidance at January 1, 2018 resulted in an increase to retained earnings of $1.1 million and a corresponding decrease to accumulated other comprehensive income. See "
Note 1. Summary of Significant Accounting Policies
" for further discussion.
|
|
|
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Provision for credit losses
|
|
23,000
|
|
|
17,250
|
|
|
8,000
|
|
|||
Depreciation and amortization
|
|
14,319
|
|
|
13,393
|
|
|
12,494
|
|
|||
Stock-based compensation
|
|
25,711
|
|
|
23,554
|
|
|
20,338
|
|
|||
Deferred income taxes
|
|
(16,709
|
)
|
|
88,471
|
|
|
7,644
|
|
|||
Amortization of net premiums for investment securities
|
|
14,247
|
|
|
16,938
|
|
|
13,790
|
|
|||
Amortization of tax credit investments
|
|
35,898
|
|
|
25,355
|
|
|
17,336
|
|
|||
Accretion of fair market value adjustments on loans acquired from business combinations
|
|
(18,565
|
)
|
|
(28,235
|
)
|
|
(29,209
|
)
|
|||
Accretion and amortization of fair market value adjustments on other assets and liabilities acquired from business combinations
|
|
1,904
|
|
|
2,385
|
|
|
3,098
|
|
|||
Income from bank owned life insurance
|
|
(3,946
|
)
|
|
(3,861
|
)
|
|
(3,762
|
)
|
|||
Losses / (Gains) on:
|
|
|
|
|
|
|
||||||
Sales of investment securities
|
|
7,656
|
|
|
(2,343
|
)
|
|
(1,059
|
)
|
|||
Assets measured at fair value, net
|
|
3,611
|
|
|
1
|
|
|
(8
|
)
|
|||
Sale of loans
|
|
(2,638
|
)
|
|
(945
|
)
|
|
(2,492
|
)
|
|||
Other assets acquired through foreclosure, net
|
|
(1,214
|
)
|
|
(228
|
)
|
|
372
|
|
|||
Valuation adjustments of other repossessed assets, net
|
|
1,267
|
|
|
120
|
|
|
(268
|
)
|
|||
Sale of premises, equipment, and other assets, net
|
|
(44
|
)
|
|
28
|
|
|
21
|
|
|||
Changes in:
|
|
|
|
|
|
|
||||||
Other assets
|
|
1,378
|
|
|
(111,902
|
)
|
|
(23,114
|
)
|
|||
Other liabilities
|
|
19,309
|
|
|
18,338
|
|
|
(2,334
|
)
|
|||
Net cash provided by operating activities
|
|
540,972
|
|
|
383,811
|
|
|
280,645
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Investment securities - trading
|
|
|
|
|
|
|
||||||
Principal pay downs and maturities
|
|
—
|
|
|
—
|
|
|
395
|
|
|||
Proceeds from sales
|
|
—
|
|
|
994
|
|
|
—
|
|
|||
Investment securities - AFS
|
|
|
|
|
|
|
||||||
Purchases
|
|
(520,734
|
)
|
|
(1,429,434
|
)
|
|
(1,205,057
|
)
|
|||
Principal pay downs and maturities
|
|
425,151
|
|
|
430,934
|
|
|
499,541
|
|
|||
Proceeds from sales
|
|
154,434
|
|
|
110,104
|
|
|
25,504
|
|
|||
Investment securities - HTM
|
|
|
|
|
|
|
||||||
Purchases
|
|
(56,575
|
)
|
|
(169,400
|
)
|
|
(92,384
|
)
|
|||
Principal pay downs and maturities
|
|
8,987
|
|
|
6,174
|
|
|
94
|
|
|||
Equity securities carried at fair value
|
|
|
|
|
|
|
||||||
Purchases
|
|
(71,728
|
)
|
|
—
|
|
|
—
|
|
|||
Reinvestment of dividends
|
|
(577
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from sales
|
|
48,639
|
|
|
—
|
|
|
—
|
|
|||
Purchase of investment tax credits
|
|
(109,598
|
)
|
|
(38,098
|
)
|
|
(28,847
|
)
|
|||
Purchase of SBIC investments
|
|
(4,129
|
)
|
|
(5,819
|
)
|
|
—
|
|
|||
(Purchase) sale of money market investments, net
|
|
(7
|
)
|
|
—
|
|
|
121
|
|
|||
Proceeds from bank owned life insurance
|
|
1,655
|
|
|
607
|
|
|
1,710
|
|
|||
(Purchase) liquidation of restricted stock, net
|
|
(347
|
)
|
|
(535
|
)
|
|
(7,139
|
)
|
|||
Loan fundings and principal collections, net
|
|
(2,586,703
|
)
|
|
(1,873,387
|
)
|
|
(810,543
|
)
|
|||
Purchase of premises, equipment, and other assets, net
|
|
(11,313
|
)
|
|
(8,862
|
)
|
|
(10,574
|
)
|
|||
Proceeds from sale of other real estate owned and repossessed assets, net
|
|
9,412
|
|
|
21,195
|
|
|
9,133
|
|
|||
Cash and cash equivalents (used) acquired in acquisitions, net
|
|
—
|
|
|
—
|
|
|
(1,272,187
|
)
|
|||
Net cash used in investing activities
|
|
(2,713,433
|
)
|
|
(2,955,527
|
)
|
|
(2,890,233
|
)
|
|||
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Net increase (decrease) in deposits
|
|
$
|
2,204,915
|
|
|
$
|
2,422,669
|
|
|
$
|
2,519,239
|
|
Proceeds from issuance of subordinated debt
|
|
—
|
|
|
—
|
|
|
169,256
|
|
|||
Net increase (decrease) in borrowings
|
|
97,394
|
|
|
294,289
|
|
|
(66,428
|
)
|
|||
Proceeds from exercise of common stock options
|
|
554
|
|
|
846
|
|
|
1,070
|
|
|||
Cash paid for tax withholding on vested restricted stock
|
|
(12,910
|
)
|
|
(13,811
|
)
|
|
(9,483
|
)
|
|||
Common stock repurchases
|
|
(35,688
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of stock in offerings, net
|
|
—
|
|
|
—
|
|
|
55,785
|
|
|||
Net cash provided by financing activities
|
|
2,254,265
|
|
|
2,703,993
|
|
|
2,669,439
|
|
|||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
|
81,804
|
|
|
132,277
|
|
|
59,851
|
|
|||
Cash, cash equivalents, and restricted cash at beginning of period
|
|
416,768
|
|
|
284,491
|
|
|
224,640
|
|
|||
Cash, cash equivalents, and restricted cash at end of period
|
|
$
|
498,572
|
|
|
$
|
416,768
|
|
|
$
|
284,491
|
|
Supplemental disclosure:
|
|
|
|
|
|
|
||||||
Cash paid during the period for:
|
|
|
|
|
|
|
||||||
Interest
|
|
$
|
113,507
|
|
|
$
|
59,838
|
|
|
$
|
41,565
|
|
Income taxes
|
|
18,760
|
|
|
99,430
|
|
|
61,281
|
|
|||
Non-cash operating, investing, and financing activity:
|
|
|
|
|
|
|
||||||
Transfers to other assets acquired through foreclosure, net
|
|
5,744
|
|
|
1,812
|
|
|
13,110
|
|
|||
Unfunded commitments originated
|
|
167,502
|
|
|
123,012
|
|
|
56,479
|
|
|||
Non-cash charitable contribution
|
|
6,895
|
|
|
—
|
|
|
—
|
|
|||
Non-cash assets acquired in acquisition
|
|
—
|
|
|
—
|
|
|
1,284,557
|
|
|||
Non-cash liabilities acquired in acquisition
|
|
—
|
|
|
—
|
|
|
12,559
|
|
|||
Change in unrealized (loss) gain on AFS securities, net of tax
|
|
(40,808
|
)
|
|
6,334
|
|
|
(24,254
|
)
|
|||
Change in unrealized gain (loss) on junior subordinated debt, net of tax
|
|
5,693
|
|
|
(3,604
|
)
|
|
(2,077
|
)
|
|||
Net increase (decrease) in unfunded obligations
|
|
46,495
|
|
|
(10,495
|
)
|
|
(21,225
|
)
|
|
|
Years
|
Bank premises
|
|
31
|
Furniture, fixtures, and equipment
|
|
3 - 10
|
Leasehold improvements (1)
|
|
3 - 10
|
(1)
|
Depreciation is recorded over the lesser of 3 to 10 years or the term of the lease.
|
•
|
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
|
•
|
Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market.
|
•
|
Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques.
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized (Losses)
|
|
Fair Value
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
|
$
|
302,905
|
|
|
$
|
3,163
|
|
|
$
|
(7,420
|
)
|
|
$
|
298,648
|
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
||||||||
CDO
|
|
$
|
50
|
|
|
$
|
15,277
|
|
|
$
|
—
|
|
|
$
|
15,327
|
|
Commercial MBS issued by GSEs
|
|
106,385
|
|
|
82
|
|
|
(6,361
|
)
|
|
100,106
|
|
||||
Corporate debt securities
|
|
105,029
|
|
|
—
|
|
|
(5,649
|
)
|
|
99,380
|
|
||||
Private label residential MBS
|
|
948,161
|
|
|
945
|
|
|
(24,512
|
)
|
|
924,594
|
|
||||
Residential MBS issued by GSEs
|
|
1,564,181
|
|
|
1,415
|
|
|
(35,472
|
)
|
|
1,530,124
|
|
||||
Tax-exempt
|
|
542,086
|
|
|
4,335
|
|
|
(7,753
|
)
|
|
538,668
|
|
||||
Trust preferred securities
|
|
32,000
|
|
|
—
|
|
|
(3,383
|
)
|
|
28,617
|
|
||||
U.S. government sponsored agency securities
|
|
40,000
|
|
|
—
|
|
|
(1,812
|
)
|
|
38,188
|
|
||||
U.S. treasury securities
|
|
1,996
|
|
|
—
|
|
|
(12
|
)
|
|
1,984
|
|
||||
Total AFS debt securities
|
|
$
|
3,339,888
|
|
|
$
|
22,054
|
|
|
$
|
(84,954
|
)
|
|
$
|
3,276,988
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity securities (1)
|
|
|
|
|
|
|
|
|
||||||||
CRA investments
|
|
$
|
52,210
|
|
|
$
|
—
|
|
|
$
|
(1,068
|
)
|
|
$
|
51,142
|
|
Preferred stock
|
|
65,954
|
|
|
148
|
|
|
(2,183
|
)
|
|
63,919
|
|
||||
Total equity securities
|
|
$
|
118,164
|
|
|
$
|
148
|
|
|
$
|
(3,251
|
)
|
|
$
|
115,061
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized (Losses)
|
|
Fair Value
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
|
$
|
255,050
|
|
|
$
|
4,514
|
|
|
$
|
(3,250
|
)
|
|
$
|
256,314
|
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
||||||||
CDO
|
|
$
|
50
|
|
|
$
|
21,807
|
|
|
$
|
—
|
|
|
$
|
21,857
|
|
Commercial MBS issued by GSEs
|
|
113,069
|
|
|
46
|
|
|
(4,038
|
)
|
|
109,077
|
|
||||
Corporate debt securities
|
|
105,044
|
|
|
261
|
|
|
(1,822
|
)
|
|
103,483
|
|
||||
Private label residential MBS
|
|
874,261
|
|
|
756
|
|
|
(6,493
|
)
|
|
868,524
|
|
||||
Residential MBS issued by GSEs
|
|
1,719,188
|
|
|
810
|
|
|
(30,703
|
)
|
|
1,689,295
|
|
||||
Tax-exempt
|
|
501,988
|
|
|
10,893
|
|
|
(1,971
|
)
|
|
510,910
|
|
||||
Trust preferred securities
|
|
32,000
|
|
|
—
|
|
|
(3,383
|
)
|
|
28,617
|
|
||||
U.S. government sponsored agency securities
|
|
64,000
|
|
|
—
|
|
|
(2,538
|
)
|
|
61,462
|
|
||||
U.S. treasury securities
|
|
2,496
|
|
|
—
|
|
|
(14
|
)
|
|
2,482
|
|
||||
Available-for-sale equity securities (1)
|
|
|
|
|
|
|
|
|
||||||||
CRA investments
|
|
51,133
|
|
|
—
|
|
|
(517
|
)
|
|
50,616
|
|
||||
Preferred stock
|
|
52,172
|
|
|
1,160
|
|
|
(136
|
)
|
|
53,196
|
|
||||
Total AFS securities
|
|
$
|
3,515,401
|
|
|
$
|
35,733
|
|
|
$
|
(51,615
|
)
|
|
$
|
3,499,519
|
|
(1)
|
The Company's equity securities consist of CRA investments and preferred stock. Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01,
Recognition and Measurement of Financial Assets and Financial Liabilities,
which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Less Than Twelve Months
|
|
More Than Twelve Months
|
|
Total
|
||||||||||||||||||
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax-exempt
|
$
|
3,868
|
|
|
$
|
91,095
|
|
|
$
|
3,552
|
|
|
$
|
69,991
|
|
|
$
|
7,420
|
|
|
$
|
161,086
|
|
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial MBS issued by GSEs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,361
|
|
|
$
|
98,275
|
|
|
$
|
6,361
|
|
|
$
|
98,275
|
|
Corporate debt securities
|
16
|
|
|
5,013
|
|
|
5,633
|
|
|
94,367
|
|
|
5,649
|
|
|
99,380
|
|
||||||
Private label residential MBS
|
5,173
|
|
|
217,982
|
|
|
19,339
|
|
|
537,316
|
|
|
24,512
|
|
|
755,298
|
|
||||||
Residential MBS issued by GSEs
|
1,363
|
|
|
141,493
|
|
|
34,109
|
|
|
1,215,490
|
|
|
35,472
|
|
|
1,356,983
|
|
||||||
Tax-exempt
|
3,562
|
|
|
209,767
|
|
|
4,191
|
|
|
72,382
|
|
|
7,753
|
|
|
282,149
|
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
3,383
|
|
|
28,617
|
|
|
3,383
|
|
|
28,617
|
|
||||||
U.S. government sponsored agency securities
|
—
|
|
|
—
|
|
|
1,812
|
|
|
38,188
|
|
|
1,812
|
|
|
38,188
|
|
||||||
U.S. treasury securities
|
—
|
|
|
—
|
|
|
12
|
|
|
1,984
|
|
|
12
|
|
|
1,984
|
|
||||||
Total AFS securities
|
$
|
10,114
|
|
|
$
|
574,255
|
|
|
$
|
74,840
|
|
|
$
|
2,086,619
|
|
|
$
|
84,954
|
|
|
$
|
2,660,874
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Less Than Twelve Months
|
|
More Than Twelve Months
|
|
Total
|
||||||||||||||||||
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Held-to-maturity debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax-exempt
|
$
|
3,250
|
|
|
$
|
107,921
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,250
|
|
|
$
|
107,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial MBS issued by GSEs
|
$
|
161
|
|
|
$
|
13,565
|
|
|
$
|
3,877
|
|
|
$
|
93,641
|
|
|
$
|
4,038
|
|
|
$
|
107,206
|
|
Corporate debt securities
|
1,398
|
|
|
78,602
|
|
|
424
|
|
|
19,576
|
|
|
1,822
|
|
|
98,178
|
|
||||||
Private label residential MBS
|
3,115
|
|
|
480,885
|
|
|
3,378
|
|
|
188,710
|
|
|
6,493
|
|
|
669,595
|
|
||||||
Residential MBS issued by GSEs
|
13,875
|
|
|
999,478
|
|
|
16,828
|
|
|
523,270
|
|
|
30,703
|
|
|
1,522,748
|
|
||||||
Tax-exempt
|
17
|
|
|
6,159
|
|
|
1,954
|
|
|
69,674
|
|
|
1,971
|
|
|
75,833
|
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
3,383
|
|
|
28,617
|
|
|
3,383
|
|
|
28,617
|
|
||||||
U.S. government sponsored agency securities
|
14
|
|
|
4,986
|
|
|
2,524
|
|
|
56,476
|
|
|
2,538
|
|
|
61,462
|
|
||||||
U.S. treasury securities
|
14
|
|
|
2,482
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
2,482
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale equity securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CRA investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
517
|
|
|
$
|
50,616
|
|
|
$
|
517
|
|
|
$
|
50,616
|
|
Preferred stock
|
136
|
|
|
7,357
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
7,357
|
|
||||||
Total AFS securities
|
$
|
18,730
|
|
|
$
|
1,593,514
|
|
|
$
|
32,885
|
|
|
$
|
1,030,580
|
|
|
$
|
51,615
|
|
|
$
|
2,624,094
|
|
|
|
December 31, 2018
|
||||||
|
|
Amortized Cost
|
|
Estimated Fair Value
|
||||
|
|
(in thousands)
|
||||||
Held-to-maturity
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
11,300
|
|
|
$
|
11,317
|
|
After one year through five years
|
|
—
|
|
|
—
|
|
||
After five years through ten years
|
|
14,493
|
|
|
14,845
|
|
||
After ten years
|
|
277,112
|
|
|
272,486
|
|
||
Total HTM securities
|
|
$
|
302,905
|
|
|
$
|
298,648
|
|
|
|
|
|
|
||||
Available-for-sale
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
3,306
|
|
|
$
|
3,327
|
|
After one year through five years
|
|
12,063
|
|
|
12,112
|
|
||
After five years through ten years
|
|
216,197
|
|
|
210,070
|
|
||
After ten years
|
|
489,595
|
|
|
496,655
|
|
||
Mortgage-backed securities
|
|
2,618,727
|
|
|
2,554,824
|
|
||
Total AFS securities
|
|
$
|
3,339,888
|
|
|
$
|
3,276,988
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
|
AAA
|
|
Split-rated AAA/AA+
|
|
AA+ to AA-
|
|
A+ to A-
|
|
BBB+ to BBB-
|
|
BB+ and below
|
|
Unrated
|
|
Totals
|
||||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||||||
Held-to-maturity debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Tax-exempt
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
302,905
|
|
|
$
|
302,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CDO
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,327
|
|
|
$
|
—
|
|
|
$
|
15,327
|
|
Commercial MBS issued by GSEs
|
|
—
|
|
|
100,106
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,106
|
|
||||||||
Corporate debt securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,515
|
|
|
32,865
|
|
|
—
|
|
|
—
|
|
|
99,380
|
|
||||||||
Private label residential MBS
|
|
887,520
|
|
|
—
|
|
|
34,342
|
|
|
343
|
|
|
947
|
|
|
1,442
|
|
|
—
|
|
|
924,594
|
|
||||||||
Residential MBS issued by GSEs
|
|
—
|
|
|
1,530,124
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,530,124
|
|
||||||||
Tax-exempt
|
|
66,160
|
|
|
12,146
|
|
|
306,409
|
|
|
152,330
|
|
|
—
|
|
|
—
|
|
|
1,623
|
|
|
538,668
|
|
||||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,617
|
|
|
—
|
|
|
—
|
|
|
28,617
|
|
||||||||
U.S. government sponsored agency securities
|
|
—
|
|
|
38,188
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,188
|
|
||||||||
U.S. treasury securities
|
|
—
|
|
|
1,984
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,984
|
|
||||||||
Total AFS securities (1)
|
|
$
|
953,680
|
|
|
$
|
1,682,548
|
|
|
$
|
340,751
|
|
|
$
|
219,188
|
|
|
$
|
62,429
|
|
|
$
|
16,769
|
|
|
$
|
1,623
|
|
|
$
|
3,276,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CRA investments
|
|
$
|
—
|
|
|
$
|
25,375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,767
|
|
|
$
|
51,142
|
|
Preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,771
|
|
|
3,693
|
|
|
14,455
|
|
|
63,919
|
|
||||||||
Total equity securities (1)
|
|
$
|
—
|
|
|
$
|
25,375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45,771
|
|
|
$
|
3,693
|
|
|
$
|
40,222
|
|
|
$
|
115,061
|
|
(1)
|
Where ratings differ, the Company uses an average of the available ratings by major credit agencies.
|
|
|
December 31, 2017
|
|||||||||||||||||||||||||||||||
|
|
AAA
|
|
Split-rated AAA/AA+
|
|
AA+ to AA-
|
|
A+ to A-
|
|
BBB+ to BBB-
|
|
BB+ and below
|
|
Unrated
|
|
Totals
|
|||||||||||||||||
|
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Held-to-maturity debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Tax-exempt
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
255,050
|
|
|
$
|
255,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
CDO
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,857
|
|
|
$
|
—
|
|
|
$
|
21,857
|
|
|
Commercial MBS issued by GSEs
|
|
—
|
|
|
109,077
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109,077
|
|
|||||||||
Corporate debt securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,293
|
|
|
29,190
|
|
|
—
|
|
|
—
|
|
|
103,483
|
|
|||||||||
Private label residential MBS
|
|
809,242
|
|
|
—
|
|
|
55,161
|
|
|
1,350
|
|
|
931
|
|
|
1,840
|
|
|
—
|
|
|
868,524
|
|
|||||||||
Residential MBS issued by GSEs
|
|
—
|
|
|
1,689,295
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,689,295
|
|
|||||||||
Tax-exempt
|
|
64,893
|
|
|
25,280
|
|
|
249,200
|
|
|
167,994
|
|
|
—
|
|
|
—
|
|
|
3,543
|
|
|
510,910
|
|
|||||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,617
|
|
|
—
|
|
|
—
|
|
|
28,617
|
|
|||||||||
U.S. government sponsored agency securities
|
|
—
|
|
|
61,462
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,462
|
|
|||||||||
U.S. treasury securities
|
|
—
|
|
|
2,482
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,482
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Available-for-sale equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
CRA investments
|
|
—
|
|
|
25,349
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,267
|
|
|
50,616
|
|
|||||||||
Preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,388
|
|
|
23,822
|
|
|
4,104
|
|
|
14,882
|
|
|
53,196
|
|
|||||||||
Total AFS securities (1)
|
|
$
|
874,135
|
|
—
|
|
$
|
1,912,945
|
|
|
$
|
304,361
|
|
|
$
|
254,025
|
|
|
$
|
82,560
|
|
|
$
|
27,801
|
|
|
$
|
43,692
|
|
|
$
|
3,499,519
|
|
(1)
|
Where ratings differ, the Company uses an average of the available ratings by major credit agencies.
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
||||||
Gross gains
|
|
$
|
8,074
|
|
|
$
|
3,204
|
|
|
$
|
2,115
|
|
Gross losses
|
|
(7,738
|
)
|
|
(861
|
)
|
|
(1,056
|
)
|
|||
Net gains (losses)
|
|
$
|
336
|
|
|
$
|
2,343
|
|
|
$
|
1,059
|
|
|
|
|
|
|
|
|
||||||
Equity securities (1)
|
|
|
|
|
|
|
||||||
Gross gains
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Gross losses
|
|
(7,992
|
)
|
|
—
|
|
|
—
|
|
|||
Net (losses) gains
|
|
$
|
(7,992
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
The Company's equity securities consist of CRA investments and preferred stock. Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01,
Recognition and Measurement of Financial Assets and Financial Liabilities,
which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Commercial and industrial
|
|
$
|
7,762,642
|
|
|
$
|
6,841,381
|
|
Commercial real estate - non-owner occupied
|
|
4,213,428
|
|
|
3,904,011
|
|
||
Commercial real estate - owner occupied
|
|
2,325,380
|
|
|
2,241,613
|
|
||
Construction and land development
|
|
2,134,753
|
|
|
1,632,204
|
|
||
Residential real estate
|
|
1,204,355
|
|
|
425,940
|
|
||
Consumer
|
|
70,071
|
|
|
48,786
|
|
||
Loans, net of deferred loan fees and costs
|
|
17,710,629
|
|
|
15,093,935
|
|
||
Allowance for credit losses
|
|
(152,717
|
)
|
|
(140,050
|
)
|
||
Total loans HFI
|
|
$
|
17,557,912
|
|
|
$
|
14,953,885
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
Current
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
Over 90 Days Past Due
|
|
Total
Past Due |
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
|
$
|
7,753,111
|
|
|
$
|
3,187
|
|
|
$
|
416
|
|
|
$
|
5,928
|
|
|
$
|
9,531
|
|
|
$
|
7,762,642
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
2,320,321
|
|
|
4,441
|
|
|
—
|
|
|
618
|
|
|
5,059
|
|
|
2,325,380
|
|
||||||
Non-owner occupied
|
|
4,051,837
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,051,837
|
|
||||||
Multi-family
|
|
161,591
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161,591
|
|
||||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
1,382,664
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,382,664
|
|
||||||
Land
|
|
751,613
|
|
|
—
|
|
|
476
|
|
|
—
|
|
|
476
|
|
|
752,089
|
|
||||||
Residential real estate
|
|
1,182,933
|
|
|
9,316
|
|
|
4,010
|
|
|
8,096
|
|
|
21,422
|
|
|
1,204,355
|
|
||||||
Consumer
|
|
69,830
|
|
|
—
|
|
|
—
|
|
|
241
|
|
|
241
|
|
|
70,071
|
|
||||||
Total loans
|
|
$
|
17,673,900
|
|
|
$
|
16,944
|
|
|
$
|
4,902
|
|
|
$
|
14,883
|
|
|
$
|
36,729
|
|
|
$
|
17,710,629
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Current
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
Over 90 days
Past Due |
|
Total
Past Due |
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
|
$
|
6,835,385
|
|
|
$
|
2,245
|
|
|
$
|
669
|
|
|
$
|
3,082
|
|
|
$
|
5,996
|
|
|
$
|
6,841,381
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
2,240,457
|
|
|
1,026
|
|
|
—
|
|
|
130
|
|
|
1,156
|
|
|
2,241,613
|
|
||||||
Non-owner occupied
|
|
3,696,729
|
|
|
2,993
|
|
|
—
|
|
|
2,847
|
|
|
5,840
|
|
|
3,702,569
|
|
||||||
Multi-family
|
|
201,442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201,442
|
|
||||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
1,090,176
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,090,176
|
|
||||||
Land
|
|
536,917
|
|
|
—
|
|
|
—
|
|
|
5,111
|
|
|
5,111
|
|
|
542,028
|
|
||||||
Residential real estate
|
|
411,857
|
|
|
6,874
|
|
|
1,487
|
|
|
5,722
|
|
|
14,083
|
|
|
425,940
|
|
||||||
Consumer
|
|
48,408
|
|
|
83
|
|
|
213
|
|
|
82
|
|
|
378
|
|
|
48,786
|
|
||||||
Total loans
|
|
$
|
15,061,371
|
|
|
$
|
13,221
|
|
|
$
|
2,369
|
|
|
$
|
16,974
|
|
|
$
|
32,564
|
|
|
$
|
15,093,935
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
|
|
Non-accrual loans
|
|
Loans past due 90 days or more and still accruing
|
|
Non-accrual loans
|
|
Loans past due 90 days or more and still accruing
|
||||||||||||||||||||||||
|
|
Current
|
|
Past Due/
Delinquent |
|
Total
Non-accrual |
|
|
Current
|
|
Past Due/
Delinquent |
|
Total
Non-accrual |
|
||||||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||||||
Commercial and industrial
|
|
$
|
7,639
|
|
|
$
|
7,451
|
|
|
$
|
15,090
|
|
|
$
|
—
|
|
|
$
|
17,913
|
|
|
$
|
4,113
|
|
|
$
|
22,026
|
|
|
$
|
43
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
594
|
|
|
1,089
|
|
|
792
|
|
|
1,881
|
|
|
—
|
|
||||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,840
|
|
|
5,840
|
|
|
—
|
|
||||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
—
|
|
|
476
|
|
|
476
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
868
|
|
|
5,111
|
|
|
5,979
|
|
|
—
|
|
||||||||
Residential real estate
|
|
552
|
|
|
11,387
|
|
|
11,939
|
|
|
—
|
|
|
2,039
|
|
|
6,078
|
|
|
8,117
|
|
|
—
|
|
||||||||
Consumer
|
|
—
|
|
|
241
|
|
|
241
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
82
|
|
|
—
|
|
||||||||
Total
|
|
$
|
8,191
|
|
|
$
|
19,555
|
|
|
$
|
27,746
|
|
|
$
|
594
|
|
|
$
|
21,909
|
|
|
$
|
22,016
|
|
|
$
|
43,925
|
|
|
$
|
43
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
|
$
|
7,574,506
|
|
|
$
|
61,202
|
|
|
$
|
126,356
|
|
|
$
|
578
|
|
|
$
|
—
|
|
|
$
|
7,762,642
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
2,255,513
|
|
|
12,860
|
|
|
57,007
|
|
|
—
|
|
|
—
|
|
|
2,325,380
|
|
||||||
Non-owner occupied
|
|
4,030,350
|
|
|
12,982
|
|
|
8,505
|
|
|
—
|
|
|
—
|
|
|
4,051,837
|
|
||||||
Multi-family
|
|
161,591
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161,591
|
|
||||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
1,378,624
|
|
|
1,210
|
|
|
2,830
|
|
|
—
|
|
|
—
|
|
|
1,382,664
|
|
||||||
Land
|
|
751,012
|
|
|
—
|
|
|
1,077
|
|
|
—
|
|
|
—
|
|
|
752,089
|
|
||||||
Residential real estate
|
|
1,191,571
|
|
|
527
|
|
|
12,257
|
|
|
—
|
|
|
—
|
|
|
1,204,355
|
|
||||||
Consumer
|
|
69,755
|
|
|
75
|
|
|
241
|
|
|
—
|
|
|
—
|
|
|
70,071
|
|
||||||
Total
|
|
$
|
17,412,922
|
|
|
$
|
88,856
|
|
|
$
|
208,273
|
|
|
$
|
578
|
|
|
$
|
—
|
|
|
$
|
17,710,629
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Current (up to 29 days past due)
|
|
$
|
17,400,616
|
|
|
$
|
87,264
|
|
|
$
|
186,020
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,673,900
|
|
Past due 30 - 59 days
|
|
11,255
|
|
|
1,580
|
|
|
4,109
|
|
|
—
|
|
|
—
|
|
|
16,944
|
|
||||||
Past due 60 - 89 days
|
|
719
|
|
|
12
|
|
|
3,767
|
|
|
404
|
|
|
—
|
|
|
4,902
|
|
||||||
Past due 90 days or more
|
|
332
|
|
|
—
|
|
|
14,377
|
|
|
174
|
|
|
—
|
|
|
14,883
|
|
||||||
Total
|
|
$
|
17,412,922
|
|
|
$
|
88,856
|
|
|
$
|
208,273
|
|
|
$
|
578
|
|
|
$
|
—
|
|
|
$
|
17,710,629
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
|
$
|
6,675,574
|
|
|
$
|
85,781
|
|
|
$
|
76,328
|
|
|
$
|
3,698
|
|
|
$
|
—
|
|
|
$
|
6,841,381
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
2,149,465
|
|
|
43,122
|
|
|
48,397
|
|
|
629
|
|
|
—
|
|
|
2,241,613
|
|
||||||
Non-owner occupied
|
|
3,676,711
|
|
|
11,166
|
|
|
14,692
|
|
|
—
|
|
|
—
|
|
|
3,702,569
|
|
||||||
Multi-family
|
|
201,442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201,442
|
|
||||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
1,072,342
|
|
|
4,477
|
|
|
13,357
|
|
|
—
|
|
|
—
|
|
|
1,090,176
|
|
||||||
Land
|
|
535,412
|
|
|
637
|
|
|
5,979
|
|
|
—
|
|
|
—
|
|
|
542,028
|
|
||||||
Residential real estate
|
|
408,527
|
|
|
8,971
|
|
|
8,442
|
|
|
—
|
|
|
—
|
|
|
425,940
|
|
||||||
Consumer
|
|
47,824
|
|
|
878
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
48,786
|
|
||||||
Total
|
|
$
|
14,767,297
|
|
|
$
|
155,032
|
|
|
$
|
167,279
|
|
|
$
|
4,327
|
|
|
$
|
—
|
|
|
$
|
15,093,935
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Current (up to 29 days past due)
|
|
$
|
14,758,149
|
|
|
$
|
154,295
|
|
|
$
|
145,934
|
|
|
$
|
2,993
|
|
|
$
|
—
|
|
|
$
|
15,061,371
|
|
Past due 30 - 59 days
|
|
7,966
|
|
|
518
|
|
|
4,737
|
|
|
—
|
|
|
—
|
|
|
13,221
|
|
||||||
Past due 60 - 89 days
|
|
1,182
|
|
|
219
|
|
|
968
|
|
|
—
|
|
|
—
|
|
|
2,369
|
|
||||||
Past due 90 days or more
|
|
—
|
|
|
—
|
|
|
15,640
|
|
|
1,334
|
|
|
—
|
|
|
16,974
|
|
||||||
Total
|
|
$
|
14,767,297
|
|
|
$
|
155,032
|
|
|
$
|
167,279
|
|
|
$
|
4,327
|
|
|
$
|
—
|
|
|
$
|
15,093,935
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Impaired loans with a specific valuation allowance under ASC 310 (1)
|
|
$
|
986
|
|
|
$
|
19,315
|
|
Impaired loans without a specific valuation allowance under ASC 310 (2)
|
|
111,266
|
|
|
79,239
|
|
||
Total impaired loans
|
|
$
|
112,252
|
|
|
$
|
98,554
|
|
Valuation allowance related to impaired loans (3)
|
|
$
|
(681
|
)
|
|
$
|
(5,606
|
)
|
(1)
|
Includes TDR loans of
zero
and
$3.7 million
at
December 31, 2018
and
2017
, respectively.
|
(2)
|
Includes TDR loans of
$44.5 million
and
$48.8 million
at
December 31, 2018
and
2017
, respectively.
|
(3)
|
Includes valuation allowance related to TDR loans of
zero
and
$1.2 million
at
December 31, 2018
and
2017
, respectively.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Commercial and industrial
|
|
$
|
63,896
|
|
|
$
|
34,156
|
|
Commercial real estate
|
|
|
|
|
||||
Owner occupied
|
|
6,530
|
|
|
10,430
|
|
||
Non-owner occupied
|
|
12,407
|
|
|
21,251
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
Construction and land development
|
|
|
|
|
||||
Construction
|
|
—
|
|
|
—
|
|
||
Land
|
|
9,403
|
|
|
15,426
|
|
||
Residential real estate
|
|
19,744
|
|
|
17,170
|
|
||
Consumer
|
|
272
|
|
|
121
|
|
||
Total
|
|
$
|
112,252
|
|
|
$
|
98,554
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in thousands)
|
|||||||||||
Average balance on impaired loans
|
|
$
|
104,825
|
|
|
$
|
104,866
|
|
|
$
|
109,461
|
|
Interest income recognized on impaired loans
|
|
4,490
|
|
|
4,046
|
|
|
4,167
|
|
|||
Interest recognized on non-accrual loans, cash basis
|
|
1,745
|
|
|
1,614
|
|
|
1,254
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Commercial and industrial
|
|
$
|
52,496
|
|
|
$
|
33,519
|
|
|
$
|
26,577
|
|
Commercial real estate
|
|
|
|
|
|
|
||||||
Owner occupied
|
|
7,682
|
|
|
18,692
|
|
|
18,865
|
|
|||
Non-owner occupied
|
|
15,375
|
|
|
22,000
|
|
|
30,633
|
|
|||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction and land development
|
|
|
|
|
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Land
|
|
9,547
|
|
|
13,558
|
|
|
17,006
|
|
|||
Residential real estate
|
|
19,425
|
|
|
16,893
|
|
|
16,096
|
|
|||
Consumer
|
|
300
|
|
|
204
|
|
|
284
|
|
|||
Total
|
|
$
|
104,825
|
|
|
$
|
104,866
|
|
|
$
|
109,461
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Commercial and industrial
|
|
$
|
2,113
|
|
|
$
|
1,077
|
|
|
$
|
727
|
|
Commercial real estate
|
|
|
|
|
|
|
||||||
Owner occupied
|
|
491
|
|
|
677
|
|
|
849
|
|
|||
Non-owner occupied
|
|
937
|
|
|
1,074
|
|
|
1,196
|
|
|||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction and land development
|
|
|
|
|
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Land
|
|
566
|
|
|
699
|
|
|
830
|
|
|||
Residential real estate
|
|
381
|
|
|
516
|
|
|
560
|
|
|||
Consumer
|
|
2
|
|
|
3
|
|
|
5
|
|
|||
Total
|
|
$
|
4,490
|
|
|
$
|
4,046
|
|
|
$
|
4,167
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Non-accrual loans (1)
|
|
$
|
27,746
|
|
|
$
|
43,925
|
|
Loans past due 90 days or more on accrual status (2)
|
|
594
|
|
|
43
|
|
||
Accruing troubled debt restructured loans
|
|
36,458
|
|
|
42,431
|
|
||
Total nonperforming loans
|
|
64,798
|
|
|
86,399
|
|
||
Other assets acquired through foreclosure, net
|
|
17,924
|
|
|
28,540
|
|
||
Total nonperforming assets
|
|
$
|
82,722
|
|
|
$
|
114,939
|
|
(1)
|
Includes non-accrual TDR loans of
$8.0 million
and
$10.1 million
at
December 31, 2018
and
2017
, respectively.
|
(2)
|
Includes less than
$0.1 million
from loans acquired with deteriorated credit quality at
December 31, 2017
.
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Balance, at beginning of period
|
|
$
|
9,324
|
|
|
$
|
15,177
|
|
|
$
|
15,925
|
|
Additions due to acquisition
|
|
—
|
|
|
—
|
|
|
4,301
|
|
|||
Reclassifications from non-accretable to accretable yield (1)
|
|
683
|
|
|
2,086
|
|
|
1,892
|
|
|||
Accretion to interest income
|
|
(1,018
|
)
|
|
(2,797
|
)
|
|
(3,439
|
)
|
|||
Reversal of fair value adjustments upon disposition of loans
|
|
(5,222
|
)
|
|
(5,142
|
)
|
|
(3,502
|
)
|
|||
Balance, at end of period
|
|
$
|
3,768
|
|
|
$
|
9,324
|
|
|
$
|
15,177
|
|
(1)
|
The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
|
Construction and Land Development
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Commercial and Industrial
|
|
Consumer
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
|
$
|
19,599
|
|
|
$
|
31,648
|
|
|
$
|
5,500
|
|
|
$
|
82,527
|
|
|
$
|
776
|
|
|
$
|
140,050
|
|
Charge-offs
|
|
1
|
|
|
233
|
|
|
1,038
|
|
|
15,034
|
|
|
114
|
|
|
16,420
|
|
||||||
Recoveries
|
|
(1,433
|
)
|
|
(1,237
|
)
|
|
(947
|
)
|
|
(2,427
|
)
|
|
(43
|
)
|
|
(6,087
|
)
|
||||||
Provision
|
|
1,482
|
|
|
2,177
|
|
|
5,867
|
|
|
13,198
|
|
|
276
|
|
|
23,000
|
|
||||||
Ending balance
|
|
$
|
22,513
|
|
|
$
|
34,829
|
|
|
$
|
11,276
|
|
|
$
|
83,118
|
|
|
$
|
981
|
|
|
$
|
152,717
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
|
$
|
21,175
|
|
|
$
|
25,673
|
|
|
$
|
3,851
|
|
|
$
|
73,333
|
|
|
$
|
672
|
|
|
$
|
124,704
|
|
Charge-offs
|
|
—
|
|
|
2,269
|
|
|
447
|
|
|
8,186
|
|
|
102
|
|
|
11,004
|
|
||||||
Recoveries
|
|
(1,229
|
)
|
|
(2,897
|
)
|
|
(1,778
|
)
|
|
(3,112
|
)
|
|
(84
|
)
|
|
(9,100
|
)
|
||||||
Provision
|
|
(2,805
|
)
|
|
5,347
|
|
|
318
|
|
|
14,268
|
|
|
122
|
|
|
17,250
|
|
||||||
Ending balance
|
|
$
|
19,599
|
|
|
$
|
31,648
|
|
|
$
|
5,500
|
|
|
$
|
82,527
|
|
|
$
|
776
|
|
|
$
|
140,050
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
|
$
|
18,976
|
|
|
$
|
23,160
|
|
|
$
|
5,278
|
|
|
$
|
71,181
|
|
|
$
|
473
|
|
|
$
|
119,068
|
|
Charge-offs
|
|
18
|
|
|
728
|
|
|
165
|
|
|
12,477
|
|
|
161
|
|
|
13,549
|
|
||||||
Recoveries
|
|
(485
|
)
|
|
(5,690
|
)
|
|
(875
|
)
|
|
(3,991
|
)
|
|
(144
|
)
|
|
(11,185
|
)
|
||||||
Provision
|
|
1,732
|
|
|
(2,449
|
)
|
|
(2,137
|
)
|
|
10,638
|
|
|
216
|
|
|
8,000
|
|
||||||
Ending balance
|
|
$
|
21,175
|
|
|
$
|
25,673
|
|
|
$
|
3,851
|
|
|
$
|
73,333
|
|
|
$
|
672
|
|
|
$
|
124,704
|
|
|
|
Commercial Real Estate-Owner Occupied
|
|
Commercial Real Estate-Non-Owner Occupied
|
|
Commercial and Industrial
|
|
Residential Real Estate
|
|
Construction and Land Development
|
|
Consumer
|
|
Total Loans
|
||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||
Loans as of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recorded Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
623
|
|
|
$
|
363
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
986
|
|
Impaired loans with no allowance recorded
|
|
6,530
|
|
|
12,407
|
|
|
63,273
|
|
|
19,381
|
|
|
9,403
|
|
|
272
|
|
|
111,266
|
|
|||||||
Total loans individually evaluated for impairment
|
|
6,530
|
|
|
12,407
|
|
|
63,896
|
|
|
19,744
|
|
|
9,403
|
|
|
272
|
|
|
112,252
|
|
|||||||
Loans collectively evaluated for impairment
|
|
2,314,871
|
|
|
4,121,464
|
|
|
7,698,746
|
|
|
1,184,592
|
|
|
2,125,350
|
|
|
69,799
|
|
|
17,514,822
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
3,979
|
|
|
79,557
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
83,555
|
|
|||||||
Total recorded investment
|
|
$
|
2,325,380
|
|
|
$
|
4,213,428
|
|
|
$
|
7,762,642
|
|
|
$
|
1,204,355
|
|
|
$
|
2,134,753
|
|
|
$
|
70,071
|
|
|
$
|
17,710,629
|
|
Unpaid Principal Balance
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,482
|
|
|
$
|
363
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,845
|
|
Impaired loans with no allowance recorded
|
|
11,852
|
|
|
18,155
|
|
|
103,992
|
|
|
27,979
|
|
|
25,624
|
|
|
10,632
|
|
|
198,234
|
|
|||||||
Total loans individually evaluated for impairment
|
|
11,852
|
|
|
18,155
|
|
|
105,474
|
|
|
28,342
|
|
|
25,624
|
|
|
10,632
|
|
|
200,079
|
|
|||||||
Loans collectively evaluated for impairment
|
|
2,314,871
|
|
|
4,121,464
|
|
|
7,698,746
|
|
|
1,184,592
|
|
|
2,125,350
|
|
|
69,799
|
|
|
17,514,822
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
5,315
|
|
|
95,680
|
|
|
4,352
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
105,419
|
|
|||||||
Total unpaid principal balance
|
|
$
|
2,332,038
|
|
|
$
|
4,235,299
|
|
|
$
|
7,808,572
|
|
|
$
|
1,213,006
|
|
|
$
|
2,150,974
|
|
|
$
|
80,431
|
|
|
$
|
17,820,320
|
|
Related Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
621
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
681
|
|
Impaired loans with no allowance recorded
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total loans individually evaluated for impairment
|
|
—
|
|
|
—
|
|
|
621
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
681
|
|
|||||||
Loans collectively evaluated for impairment
|
|
14,286
|
|
|
20,456
|
|
|
82,488
|
|
|
11,216
|
|
|
22,513
|
|
|
981
|
|
|
151,940
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
87
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|||||||
Total allowance for credit losses
|
|
$
|
14,286
|
|
|
$
|
20,543
|
|
|
$
|
83,118
|
|
|
$
|
11,276
|
|
|
$
|
22,513
|
|
|
$
|
981
|
|
|
$
|
152,717
|
|
|
|
Commercial Real Estate-Owner Occupied
|
|
Commercial Real Estate-Non-Owner Occupied
|
|
Commercial and Industrial
|
|
Residential Real Estate
|
|
Construction and Land Development
|
|
Consumer
|
|
Total Loans
|
||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||
Loans as of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recorded Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,315
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,315
|
|
Impaired loans with no allowance recorded
|
|
10,430
|
|
|
21,250
|
|
|
14,842
|
|
|
17,170
|
|
|
15,426
|
|
|
121
|
|
|
79,239
|
|
|||||||
Total loans individually evaluated for impairment
|
|
10,430
|
|
|
21,250
|
|
|
34,157
|
|
|
17,170
|
|
|
15,426
|
|
|
121
|
|
|
98,554
|
|
|||||||
Loans collectively evaluated for impairment
|
|
2,221,614
|
|
|
3,777,219
|
|
|
6,807,181
|
|
|
408,169
|
|
|
1,616,778
|
|
|
48,665
|
|
|
14,879,626
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
9,569
|
|
|
105,542
|
|
|
43
|
|
|
601
|
|
|
—
|
|
|
—
|
|
|
115,755
|
|
|||||||
Total recorded investment
|
|
$
|
2,241,613
|
|
|
$
|
3,904,011
|
|
|
$
|
6,841,381
|
|
|
$
|
425,940
|
|
|
$
|
1,632,204
|
|
|
$
|
48,786
|
|
|
$
|
15,093,935
|
|
Unpaid Principal Balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,795
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,795
|
|
Impaired loans with no allowance recorded
|
|
17,459
|
|
|
28,028
|
|
|
42,261
|
|
|
26,057
|
|
|
32,289
|
|
|
10,695
|
|
|
156,789
|
|
|||||||
Total loans individually evaluated for impairment
|
|
17,459
|
|
|
28,028
|
|
|
63,056
|
|
|
26,057
|
|
|
32,289
|
|
|
10,695
|
|
|
177,584
|
|
|||||||
Loans collectively evaluated for impairment
|
|
2,221,614
|
|
|
3,777,219
|
|
|
6,807,181
|
|
|
408,169
|
|
|
1,616,778
|
|
|
48,665
|
|
|
14,879,626
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
12,619
|
|
|
128,440
|
|
|
3,146
|
|
|
720
|
|
|
—
|
|
|
—
|
|
|
144,925
|
|
|||||||
Total unpaid principal balance
|
|
$
|
2,251,692
|
|
|
$
|
3,933,687
|
|
|
$
|
6,873,383
|
|
|
$
|
434,946
|
|
|
$
|
1,649,067
|
|
|
$
|
59,360
|
|
|
$
|
15,202,135
|
|
Related Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,606
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,606
|
|
Impaired loans with no allowance recorded
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total loans individually evaluated for impairment
|
|
—
|
|
|
—
|
|
|
5,606
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,606
|
|
|||||||
Loans collectively evaluated for impairment
|
|
13,884
|
|
|
16,135
|
|
|
76,919
|
|
|
5,500
|
|
|
19,599
|
|
|
776
|
|
|
132,813
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
1,629
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,631
|
|
|||||||
Total allowance for credit losses
|
|
$
|
13,884
|
|
|
$
|
17,764
|
|
|
$
|
82,527
|
|
|
$
|
5,500
|
|
|
$
|
19,599
|
|
|
$
|
776
|
|
|
$
|
140,050
|
|
|
|
Year Ended December 31, 2018
|
|||||||||||||||||||||
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Forgiven Principal Balance
|
|
Lost Interest Income
|
|
Post-Modification Outstanding Recorded Investment
|
|
Waived Fees and Other Expenses
|
|||||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||||
Commercial and industrial
|
|
11
|
|
|
$
|
35,132
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,132
|
|
|
$
|
—
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate
|
|
1
|
|
|
294
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|
—
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
12
|
|
|
$
|
35,426
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,426
|
|
|
$
|
—
|
|
|
|
Year Ended December 31, 2017
|
|||||||||||||||||||||
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Forgiven Principal Balance
|
|
Lost Interest Income
|
|
Post-Modification Outstanding Recorded Investment
|
|
Waived Fees and Other Expenses
|
|||||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||||
Commercial and industrial
|
|
11
|
|
|
$
|
3,513
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,513
|
|
|
$
|
—
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Non-owner occupied
|
|
3
|
|
|
2,993
|
|
|
—
|
|
|
—
|
|
|
2,993
|
|
|
—
|
|
|||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate
|
|
1
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
15
|
|
|
$
|
6,628
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,628
|
|
|
$
|
—
|
|
|
|
Year Ended December 31, 2016
|
|||||||||||||||||||||
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Forgiven Principal Balance
|
|
Lost Interest Income
|
|
Post-Modification Outstanding Recorded Investment
|
|
Waived Fees and Other Expenses
|
|||||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||||
Commercial and industrial
|
|
2
|
|
|
$
|
2,405
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,405
|
|
|
$
|
—
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
2
|
|
|
$
|
2,405
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,405
|
|
|
$
|
—
|
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Number of Loans
|
|
Recorded Investment
|
|
Number of Loans
|
|
Recorded Investment
|
|
Number of Loans
|
|
Recorded Investment
|
|||||||||
|
|
(dollars in thousands)
|
|||||||||||||||||||
Commercial and industrial
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
87
|
|
|
—
|
|
|
$
|
—
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
1
|
|
|
135
|
|
|
—
|
|
|
—
|
|
|||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
1
|
|
|
308
|
|
|
1
|
|
|
5,381
|
|
|||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1,119
|
|
|
—
|
|
|
—
|
|
|||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
—
|
|
|
—
|
|
|
1
|
|
|
48
|
|
|
2
|
|
|
408
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
—
|
|
|
$
|
—
|
|
|
6
|
|
|
$
|
1,697
|
|
|
3
|
|
|
$
|
5,789
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Bank premises
|
|
$
|
89,930
|
|
|
$
|
89,411
|
|
Land and improvements
|
|
32,954
|
|
|
32,953
|
|
||
Furniture, fixtures, and equipment
|
|
42,729
|
|
|
37,098
|
|
||
Leasehold improvements
|
|
25,919
|
|
|
23,707
|
|
||
Construction in progress
|
|
6,302
|
|
|
1,415
|
|
||
Total
|
|
197,834
|
|
|
184,584
|
|
||
Accumulated depreciation and amortization
|
|
(78,360
|
)
|
|
(65,865
|
)
|
||
Premises and equipment, net
|
|
$
|
119,474
|
|
|
$
|
118,719
|
|
|
|
(in thousands)
|
||
2019
|
|
$
|
11,370
|
|
2020
|
|
10,322
|
|
|
2021
|
|
7,418
|
|
|
2022
|
|
6,294
|
|
|
2023
|
|
6,070
|
|
|
Thereafter
|
|
15,417
|
|
|
Total future minimum rental payments
|
|
$
|
56,891
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
||||||||||
|
|
Gross Balance
|
|
Valuation Allowance
|
|
Net Balance
|
||||||
|
|
(in thousands)
|
||||||||||
Balance, beginning of period
|
|
$
|
32,552
|
|
|
$
|
(4,012
|
)
|
|
$
|
28,540
|
|
Transfers to other assets acquired through foreclosure, net
|
|
5,744
|
|
|
—
|
|
|
5,744
|
|
|||
Proceeds from sale of other real estate owned and repossessed assets, net
|
|
(12,636
|
)
|
|
3,224
|
|
|
(9,412
|
)
|
|||
Charitable contribution (1)
|
|
(6,895
|
)
|
|
—
|
|
|
(6,895
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
(1,267
|
)
|
|
(1,267
|
)
|
|||
Gains (losses), net (2)
|
|
1,214
|
|
|
—
|
|
|
1,214
|
|
|||
Balance, end of period
|
|
$
|
19,979
|
|
|
$
|
(2,055
|
)
|
|
$
|
17,924
|
|
|
|
|
|
|
|
|
||||||
|
|
2017
|
||||||||||
Balance, beginning of period
|
|
$
|
54,138
|
|
|
$
|
(6,323
|
)
|
|
$
|
47,815
|
|
Transfers to other assets acquired through foreclosure, net
|
|
1,812
|
|
|
—
|
|
|
1,812
|
|
|||
Proceeds from sale of other real estate owned and repossessed assets, net
|
|
(23,626
|
)
|
|
2,431
|
|
|
(21,195
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
(120
|
)
|
|
(120
|
)
|
|||
Gains (losses), net (2)
|
|
228
|
|
|
—
|
|
|
228
|
|
|||
Balance, end of period
|
|
$
|
32,552
|
|
|
$
|
(4,012
|
)
|
|
$
|
28,540
|
|
|
|
|
|
|
|
|
||||||
|
|
2016
|
||||||||||
Balance, beginning of period
|
|
$
|
52,984
|
|
|
$
|
(9,042
|
)
|
|
$
|
43,942
|
|
Transfers to other assets acquired through foreclosure, net
|
|
13,110
|
|
|
—
|
|
|
13,110
|
|
|||
Proceeds from sale of other real estate owned and repossessed assets, net
|
|
(11,584
|
)
|
|
2,451
|
|
|
(9,133
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
268
|
|
|
268
|
|
|||
(Losses) gains, net (2)
|
|
(372
|
)
|
|
—
|
|
|
(372
|
)
|
|||
Balance, end of period
|
|
$
|
54,138
|
|
|
$
|
(6,323
|
)
|
|
$
|
47,815
|
|
(1)
|
Represents a contribution of OREO property to the Company's charitable foundation. See "
Note 19. Related Party Transactions
" for further discussion.
|
(2)
|
Includes net gains related to initial transfers to other assets of
$1.0 million
,
$0.1 million
, and
$0.4 million
during the years ended
December 31, 2018
,
2017
, and
2016
, respectively.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Subject to amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Core deposit intangibles
|
|
$
|
14,647
|
|
|
$
|
5,737
|
|
|
$
|
8,910
|
|
|
$
|
14,647
|
|
|
$
|
4,144
|
|
|
$
|
10,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Gross Carrying Amount
|
|
Impairment
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Impairment
|
|
Net Carrying Amount
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Not subject to amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade name
|
|
$
|
350
|
|
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
350
|
|
|
$
|
—
|
|
|
$
|
350
|
|
|
|
December 31, 2018
|
||
|
|
(in thousands)
|
||
2019
|
|
$
|
1,547
|
|
2020
|
|
1,494
|
|
|
2021
|
|
1,433
|
|
|
2022
|
|
1,364
|
|
|
2023
|
|
1,289
|
|
|
Thereafter
|
|
1,783
|
|
|
Total
|
|
$
|
8,910
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Non-interest-bearing demand deposits
|
|
$
|
7,456,141
|
|
|
$
|
7,433,962
|
|
Interest-bearing transaction accounts
|
|
2,555,609
|
|
|
1,586,209
|
|
||
Savings and money market accounts
|
|
7,330,709
|
|
|
6,330,977
|
|
||
Time certificates of deposit ($250,000 or more)
|
|
1,009,900
|
|
|
713,654
|
|
||
Other time deposits
|
|
825,088
|
|
|
907,730
|
|
||
Total deposits
|
|
$
|
19,177,447
|
|
|
$
|
16,972,532
|
|
|
|
December 31,
|
||
|
|
(in thousands)
|
||
2019
|
|
$
|
1,707,065
|
|
2020
|
|
101,572
|
|
|
2021
|
|
21,336
|
|
|
2022
|
|
1,854
|
|
|
2023
|
|
3,161
|
|
|
Total
|
|
$
|
1,834,988
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Short-Term:
|
|
|
|
|
||||
Federal funds purchased
|
|
$
|
256,000
|
|
|
$
|
—
|
|
FHLB advances
|
|
235,000
|
|
|
390,000
|
|
||
Total short-term borrowings
|
|
$
|
491,000
|
|
|
$
|
390,000
|
|
|
|
|
|
December 31,
|
||||||
Name of Trust
|
|
Maturity
|
|
2018
|
|
2017
|
||||
At fair value
|
|
|
|
(in thousands)
|
||||||
BankWest Nevada Capital Trust II
|
|
2033
|
|
$
|
15,464
|
|
|
$
|
15,464
|
|
Intermountain First Statutory Trust I
|
|
2034
|
|
10,310
|
|
|
10,310
|
|
||
First Independent Statutory Trust I
|
|
2035
|
|
7,217
|
|
|
7,217
|
|
||
WAL Trust No. 1
|
|
2036
|
|
20,619
|
|
|
20,619
|
|
||
WAL Statutory Trust No. 2
|
|
2037
|
|
5,155
|
|
|
5,155
|
|
||
WAL Statutory Trust No. 3
|
|
2037
|
|
7,732
|
|
|
7,732
|
|
||
Total contractual balance
|
|
|
|
66,497
|
|
|
66,497
|
|
||
FVO on junior subordinated debt
|
|
|
|
(17,812
|
)
|
|
(10,263
|
)
|
||
Junior subordinated debt, at fair value
|
|
|
|
$
|
48,685
|
|
|
$
|
56,234
|
|
At amortized cost
|
|
|
|
|
|
|
||||
Bridge Capital Holdings Trust I
|
|
2035
|
|
$
|
12,372
|
|
|
$
|
12,372
|
|
Bridge Capital Holdings Trust II
|
|
2036
|
|
5,155
|
|
|
5,155
|
|
||
Total contractual balance
|
|
|
|
17,527
|
|
|
17,527
|
|
||
Purchase accounting adjustment, net of accretion (1)
|
|
|
|
(5,155
|
)
|
|
(5,465
|
)
|
||
Junior subordinated debt, at amortized cost
|
|
|
|
$
|
12,372
|
|
|
$
|
12,062
|
|
|
|
|
|
|
|
|
||||
Total junior subordinated debt
|
|
|
|
$
|
61,057
|
|
|
$
|
68,296
|
|
(1)
|
The purchase accounting adjustment is being accreted over the remaining life of the trusts, pursuant to accounting guidance.
|
|
|
December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
||||||
|
|
(in thousands, except per share amounts)
|
||||||||||||
Balance, beginning of period
|
|
1,142
|
|
|
$
|
36.96
|
|
|
1,278
|
|
|
$
|
26.02
|
|
Granted
|
|
425
|
|
|
58.02
|
|
|
531
|
|
|
49.06
|
|
||
Vested
|
|
(477
|
)
|
|
32.31
|
|
|
(575
|
)
|
|
23.14
|
|
||
Forfeited
|
|
(63
|
)
|
|
43.62
|
|
|
(92
|
)
|
|
34.51
|
|
||
Balance, end of period
|
|
1,027
|
|
|
$
|
47.53
|
|
|
1,142
|
|
|
$
|
36.96
|
|
|
|
Unrealized holding gains (losses) on AFS
|
|
Unrealized holding gains (losses) on SERP
|
|
Unrealized holding gains (losses) on junior subordinated debt
|
|
Impairment loss on securities
|
|
Total
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Balance, December 31, 2015
|
|
$
|
9,993
|
|
|
$
|
90
|
|
|
$
|
12,033
|
|
|
$
|
144
|
|
|
$
|
22,260
|
|
Other comprehensive (loss) income before reclassifications
|
|
(24,254
|
)
|
|
31
|
|
|
(2,077
|
)
|
|
—
|
|
|
(26,300
|
)
|
|||||
Amounts reclassified from AOCI
|
|
(655
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(655
|
)
|
|||||
Net current-period other comprehensive (loss) income
|
|
(24,909
|
)
|
|
31
|
|
|
(2,077
|
)
|
|
—
|
|
|
(26,955
|
)
|
|||||
Balance, December 31, 2016
|
|
$
|
(14,916
|
)
|
|
$
|
121
|
|
|
$
|
9,956
|
|
|
$
|
144
|
|
|
$
|
(4,695
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
6,334
|
|
|
264
|
|
|
(3,604
|
)
|
|
—
|
|
|
2,994
|
|
|||||
Amounts reclassified from accumulated other comprehensive income
|
|
(1,444
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,444
|
)
|
|||||
Net current-period other comprehensive (loss) income
|
|
4,890
|
|
|
264
|
|
|
(3,604
|
)
|
|
—
|
|
|
1,550
|
|
|||||
Balance, December 31, 2017
|
|
$
|
(10,026
|
)
|
|
$
|
385
|
|
|
$
|
6,352
|
|
|
$
|
144
|
|
|
$
|
(3,145
|
)
|
Balance, January 1, 2018 (1)
|
|
(12,556
|
)
|
|
469
|
|
|
7,740
|
|
|
144
|
|
|
(4,203
|
)
|
|||||
Other comprehensive (loss) income before reclassifications
|
|
(40,808
|
)
|
|
(77
|
)
|
|
5,693
|
|
|
—
|
|
|
(35,192
|
)
|
|||||
Amounts reclassified from AOCI
|
|
5,773
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,773
|
|
|||||
Net current-period other comprehensive (loss) income
|
|
(35,035
|
)
|
|
(77
|
)
|
|
5,693
|
|
|
—
|
|
|
(29,419
|
)
|
|||||
Balance, December 31, 2018
|
|
$
|
(47,591
|
)
|
|
$
|
392
|
|
|
$
|
13,433
|
|
|
$
|
144
|
|
|
$
|
(33,622
|
)
|
(1)
|
As adjusted for adoption of ASU 2016-01 and ASU 2018-02, see "
Note 1. Summary of Significant Accounting Policies
" for further discussion.
|
|
|
Year Ended December 31,
|
||||||||||
Income Statement Classification
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
(Loss) gain on sales of investment securities, net
|
|
$
|
(7,656
|
)
|
|
$
|
2,343
|
|
|
$
|
1,059
|
|
Income tax expense (benefit)
|
|
1,883
|
|
|
(899
|
)
|
|
(404
|
)
|
|||
Net of tax
|
|
$
|
(5,773
|
)
|
|
$
|
1,444
|
|
|
$
|
655
|
|
(1)
|
Included in the carrying value of the hedged assets/(liabilities)
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||||||||||
|
Notional
Amount |
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Notional
Amount |
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Notional
Amount |
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate swaps
|
$
|
965,705
|
|
|
$
|
2,162
|
|
|
$
|
44,892
|
|
|
$
|
993,432
|
|
|
$
|
1,703
|
|
|
$
|
53,581
|
|
|
$
|
993,485
|
|
|
$
|
4,220
|
|
|
$
|
65,749
|
|
Total
|
965,705
|
|
|
2,162
|
|
|
44,892
|
|
|
993,432
|
|
|
1,703
|
|
|
53,581
|
|
|
993,485
|
|
|
4,220
|
|
|
65,749
|
|
|||||||||
Netting adjustments (1)
|
—
|
|
|
2,162
|
|
|
2,162
|
|
|
—
|
|
|
896
|
|
|
896
|
|
|
—
|
|
|
1,869
|
|
|
1,869
|
|
|||||||||
Net derivatives in the balance sheet
|
$
|
965,705
|
|
|
$
|
—
|
|
|
$
|
42,730
|
|
|
$
|
993,432
|
|
|
$
|
807
|
|
|
$
|
52,685
|
|
|
$
|
993,485
|
|
|
$
|
2,351
|
|
|
$
|
63,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency contracts (2)
|
$
|
49,690
|
|
|
$
|
454
|
|
|
$
|
201
|
|
|
$
|
85,335
|
|
|
$
|
1,232
|
|
|
$
|
983
|
|
|
$
|
18,421
|
|
|
$
|
251
|
|
|
$
|
191
|
|
Interest rate swaps
|
2,378
|
|
|
27
|
|
|
27
|
|
|
36,969
|
|
|
776
|
|
|
776
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total
|
$
|
52,068
|
|
|
$
|
481
|
|
|
$
|
228
|
|
|
$
|
122,304
|
|
|
$
|
2,008
|
|
|
$
|
1,759
|
|
|
$
|
18,421
|
|
|
$
|
251
|
|
|
$
|
191
|
|
(1)
|
Netting adjustments represent the amounts recorded to convert the Company's derivative balances from a gross basis to a net basis in accordance with the applicable accounting guidance.
|
(2)
|
Prior period derivative asset / liability netting adjustments have been made to conform to current presentation.
|
|
|
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Largest gross exposure (derivative asset) to an individual counterparty
|
|
$
|
1,411
|
|
|
$
|
893
|
|
|
$
|
2,351
|
|
Collateral posted by this counterparty
|
|
—
|
|
|
—
|
|
|
1,691
|
|
|||
Derivative liability with this counterparty
|
|
23,906
|
|
|
40,340
|
|
|
—
|
|
|||
Collateral pledged to this counterparty
|
|
25,761
|
|
|
60,476
|
|
|
—
|
|
|||
Net exposure after netting adjustments and collateral
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
660
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands, except per share amounts)
|
||||||||||
Weighted average shares - basic
|
|
104,669
|
|
|
104,179
|
|
|
103,042
|
|
|||
Dilutive effect of stock awards
|
|
701
|
|
|
818
|
|
|
801
|
|
|||
Weighted average shares - diluted
|
|
105,370
|
|
|
104,997
|
|
|
103,843
|
|
|||
Net income
|
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
Earnings per share - basic
|
|
4.16
|
|
|
3.12
|
|
|
2.52
|
|
|||
Earnings per share - diluted
|
|
4.14
|
|
|
3.10
|
|
|
2.50
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Current
|
|
$
|
91,249
|
|
|
$
|
37,854
|
|
|
$
|
93,737
|
|
Deferred
|
|
(16,709
|
)
|
|
88,471
|
|
|
7,644
|
|
|||
Total tax provision
|
|
$
|
74,540
|
|
|
$
|
126,325
|
|
|
$
|
101,381
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Income tax at statutory rate
|
|
$
|
107,169
|
|
|
$
|
158,136
|
|
|
$
|
126,413
|
|
Increase (decrease) resulting from:
|
|
|
|
|
|
|
||||||
State income taxes, net of federal benefits
|
|
9,015
|
|
|
9,765
|
|
|
8,046
|
|
|||
Tax-exempt income
|
|
(18,322
|
)
|
|
(26,403
|
)
|
|
(22,425
|
)
|
|||
Change in federal rate applied to deferred items
|
|
—
|
|
|
(10,411
|
)
|
|
—
|
|
|||
Federal NOL and other carryback items
|
|
(15,341
|
)
|
|
—
|
|
|
—
|
|
|||
Excise tax
|
|
(137
|
)
|
|
9,689
|
|
|
—
|
|
|||
Low income housing tax credits
|
|
(6,673
|
)
|
|
(7,361
|
)
|
|
(6,153
|
)
|
|||
Other, net
|
|
(1,171
|
)
|
|
(7,090
|
)
|
|
(4,500
|
)
|
|||
Total tax provision
|
|
$
|
74,540
|
|
|
$
|
126,325
|
|
|
$
|
101,381
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Deferred tax assets:
|
|
|
||||||
Allowance for credit losses
|
|
$
|
42,833
|
|
|
$
|
37,851
|
|
Stock-based compensation
|
|
8,718
|
|
|
8,335
|
|
||
Net operating loss carryovers
|
|
6,255
|
|
|
34,710
|
|
||
Tax credit carryovers
|
|
1,245
|
|
|
24,171
|
|
||
Unrealized loss on AFS securities
|
|
16,047
|
|
|
4,117
|
|
||
Other
|
|
19,442
|
|
|
15,621
|
|
||
Total gross deferred tax assets
|
|
94,540
|
|
|
124,805
|
|
||
Deferred tax asset valuation allowance
|
|
(2,373
|
)
|
|
—
|
|
||
Total deferred tax assets
|
|
92,167
|
|
|
124,805
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
REIT dividend deferral
|
|
—
|
|
|
(68,799
|
)
|
||
Unrealized gain on debt instruments measured at fair value
|
|
(5,833
|
)
|
|
(4,057
|
)
|
||
Deferred loan costs
|
|
(9,528
|
)
|
|
(6,594
|
)
|
||
Insurance premiums
|
|
(38,119
|
)
|
|
(35,789
|
)
|
||
Other
|
|
(6,697
|
)
|
|
(3,786
|
)
|
||
Total deferred tax liabilities
|
|
(60,177
|
)
|
|
(119,025
|
)
|
||
Deferred tax assets, net
|
|
$
|
31,990
|
|
|
$
|
5,780
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in thousands)
|
||||||
Beginning balance
|
$
|
1,038
|
|
|
$
|
1,038
|
|
Gross increases
|
|
|
|
||||
Tax positions in prior periods
|
—
|
|
|
—
|
|
||
Current period tax positions
|
—
|
|
|
—
|
|
||
Gross decreases
|
|
|
|
||||
Tax positions in prior periods
|
(247
|
)
|
|
—
|
|
||
Settlements
|
(307
|
)
|
|
—
|
|
||
Lapse of statute of limitations
|
—
|
|
|
—
|
|
||
Ending balance
|
$
|
484
|
|
|
$
|
1,038
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Commitments to extend credit, including unsecured loan commitments of $770,114 at December 31, 2018 and $364,638 at December 31, 2017
|
|
$
|
7,556,741
|
|
|
$
|
5,851,158
|
|
Credit card commitments and financial guarantees
|
|
237,312
|
|
|
153,752
|
|
||
Standby letters of credit, including unsecured letters of credit of $21,879 at December 31, 2018 and $11,664 at December 31, 2017
|
|
390,161
|
|
|
161,966
|
|
||
Total
|
|
$
|
8,184,214
|
|
|
$
|
6,166,876
|
|
|
|
|
|
Amount of Commitment Expiration per Period
|
||||||||||||||||
|
|
Total Amounts Committed
|
|
Less Than 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
After 5 Years
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Commitments to extend credit
|
|
$
|
7,556,741
|
|
|
$
|
2,650,999
|
|
|
$
|
2,959,595
|
|
|
$
|
851,520
|
|
|
$
|
1,094,627
|
|
Credit card commitments and financial guarantees
|
|
237,312
|
|
|
237,312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Standby letters of credit
|
|
390,161
|
|
|
276,633
|
|
|
98,774
|
|
|
14,754
|
|
|
—
|
|
|||||
Total
|
|
$
|
8,184,214
|
|
|
$
|
3,164,944
|
|
|
$
|
3,058,369
|
|
|
$
|
866,274
|
|
|
$
|
1,094,627
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Unrealized gain/(loss)
|
|
$
|
7,550
|
|
|
$
|
(5,824
|
)
|
|
$
|
(3,482
|
)
|
Changes included in OCI, net of tax
|
|
5,693
|
|
|
(3,604
|
)
|
|
(2,077
|
)
|
(1)
|
Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01,
Recognition and Measurement of Financial Assets and Financial Liabilities,
which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.
|
(2)
|
Derivative assets and liabilities relate to interest rate swaps and foreign currency contracts, see "
Note 12. Derivatives and Hedging Activities
." In addition, the carrying value of loans is increased by
$23,039
and the net carrying value of subordinated debt is decreased by
$19,691
as of
December 31, 2018
for the effective portion of the hedge, which relates to the fair value of the hedges put in place to mitigate against fluctuations in interest rates.
|
(3)
|
Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.
|
(1)
|
Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01,
Recognition and Measurement of Financial Assets and Financial Liabilities,
which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.
|
(2)
|
Derivative assets and liabilities relate to interest rate swaps and foreign currency contracts, see "
Note 12. Derivatives and Hedging Activities
." In addition, the carrying value of loans is increased by
$41,919
and the net carrying value of subordinated debt is decreased by
$9,959
as of
December 31, 2017
, which relates to the effective portion of the hedges put in place to mitigate against fluctuations in interest rates.
|
(3)
|
Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.
|
|
|
Junior Subordinated Debt
|
||||||||||
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Beginning balance
|
|
$
|
(56,234
|
)
|
|
$
|
(50,410
|
)
|
|
$
|
(46,928
|
)
|
Change in fair value (1)
|
|
7,550
|
|
|
(5,824
|
)
|
|
(3,482
|
)
|
|||
Ending balance
|
|
$
|
(48,684
|
)
|
|
$
|
(56,234
|
)
|
|
$
|
(50,410
|
)
|
(1)
|
Unrealized gains/(losses) attributable to changes in the fair value of junior subordinated debt are recorded as part of OCI, net of tax, and totaled
$5.7 million
,
$(3.6) million
, and
$(2.1) million
for the years ended
December 31, 2018
,
2017
, and
2016
, respectively.
|
|
|
December 31, 2018
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Input Value
|
|||
|
|
(in thousands)
|
|
|
|
|
|
|
|||
Junior subordinated debt
|
|
$
|
48,684
|
|
|
Discounted cash flow
|
|
Implied credit rating of the Company
|
|
7.82
|
%
|
|
|
December 31, 2017
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Input Value
|
|||
|
|
(in thousands)
|
|
|
|
|
|
|
|||
Junior subordinated debt
|
|
$
|
56,234
|
|
|
Discounted cash flow
|
|
Implied credit rating of the Company
|
|
5.61
|
%
|
|
|
Fair Value Measurements at the End of the Reporting Period Using
|
||||||||||||||
|
|
Total
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Active Markets for Similar Assets
(Level 2)
|
|
Unobservable Inputs
(Level 3)
|
||||||||
|
|
(in thousands)
|
||||||||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans with specific valuation allowance
|
|
$
|
305
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
305
|
|
Impaired loans without specific valuation allowance (1)
|
|
91,821
|
|
|
—
|
|
|
—
|
|
|
91,821
|
|
||||
Other assets acquired through foreclosure
|
|
17,924
|
|
|
—
|
|
|
—
|
|
|
17,924
|
|
||||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans with specific valuation allowance
|
|
$
|
13,709
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,709
|
|
Impaired loans without specific valuation allowance (1)
|
|
63,607
|
|
|
—
|
|
|
—
|
|
|
63,607
|
|
||||
Other assets acquired through foreclosure
|
|
28,540
|
|
|
—
|
|
|
—
|
|
|
28,540
|
|
(1)
|
Net of loan balances with charge-offs of
$19.4 million
and
$15.6 million
as of
December 31, 2018
and
2017
, respectively.
|
|
December 31, 2018
|
|
Valuation Technique(s)
|
|
Significant Unobservable Inputs
|
|
Range
|
||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
92,126
|
|
|
Collateral method
|
|
Third party appraisal
|
|
Costs to sell
|
|
4.0% to 10.0%
|
|
Discounted cash flow method
|
|
Discount rate
|
|
Contractual loan rate
|
|
4.0% to 7.0%
|
||||
|
|
Scheduled cash collections
|
|
Probability of default
|
|
0% to 20.0%
|
|||||
|
|
Proceeds from non-real estate collateral
|
|
Loss given default
|
|
0% to 70.0%
|
|||||
Other assets acquired through foreclosure
|
17,924
|
|
|
Collateral method
|
|
Third party appraisal
|
|
Costs to sell
|
|
4.0% to 10.0%
|
|
December 31, 2017
|
|
Valuation Technique(s)
|
|
Significant Unobservable Inputs
|
|
Range
|
||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
77,316
|
|
|
Collateral method
|
|
Third party appraisal
|
|
Costs to sell
|
|
4.0% to 10.0%
|
|
Discounted cash flow method
|
|
Discount rate
|
|
Contractual loan rate
|
|
4.0% to 7.0%
|
||||
|
|
Scheduled cash collections
|
|
Probability of default
|
|
0% to 20.0%
|
|||||
|
|
Proceeds from non-real estate collateral
|
|
Loss given default
|
|
0% to 70.0%
|
|||||
Other assets acquired through foreclosure
|
28,540
|
|
|
Collateral method
|
|
Third party appraisal
|
|
Costs to sell
|
|
4.0% to 10.0%
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Carrying Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
HTM
|
|
$
|
302,905
|
|
|
$
|
—
|
|
|
$
|
298,648
|
|
|
$
|
—
|
|
|
$
|
298,648
|
|
AFS
|
|
3,276,988
|
|
|
—
|
|
|
3,276,988
|
|
|
—
|
|
|
3,276,988
|
|
|||||
Equity securities
|
|
115,061
|
|
|
115,061
|
|
|
—
|
|
|
—
|
|
|
115,061
|
|
|||||
Derivative assets
|
|
2,643
|
|
|
—
|
|
|
2,643
|
|
|
—
|
|
|
2,643
|
|
|||||
Loans, net
|
|
17,557,912
|
|
|
—
|
|
|
16,857,852
|
|
|
92,126
|
|
|
16,949,978
|
|
|||||
Accrued interest receivable
|
|
101,275
|
|
|
—
|
|
|
101,275
|
|
|
—
|
|
|
101,275
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
19,177,447
|
|
|
$
|
—
|
|
|
$
|
19,188,216
|
|
|
$
|
—
|
|
|
$
|
19,188,216
|
|
Customer repurchase agreements
|
|
22,411
|
|
|
—
|
|
|
22,411
|
|
|
—
|
|
|
22,411
|
|
|||||
Other borrowings
|
|
491,000
|
|
|
—
|
|
|
491,000
|
|
|
—
|
|
|
491,000
|
|
|||||
Qualifying debt
|
|
360,458
|
|
|
—
|
|
|
323,572
|
|
|
57,924
|
|
|
381,496
|
|
|||||
Derivative liabilities
|
|
45,120
|
|
|
—
|
|
|
45,120
|
|
|
—
|
|
|
45,120
|
|
|||||
Accrued interest payable
|
|
20,463
|
|
|
—
|
|
|
20,463
|
|
|
—
|
|
|
20,463
|
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Carrying Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
HTM
|
|
$
|
255,050
|
|
|
$
|
—
|
|
|
$
|
256,314
|
|
|
$
|
—
|
|
|
$
|
256,314
|
|
AFS
|
|
3,499,519
|
|
|
103,812
|
|
|
3,395,707
|
|
|
—
|
|
|
3,499,519
|
|
|||||
Derivative assets
|
|
3,711
|
|
|
—
|
|
|
3,711
|
|
|
—
|
|
|
3,711
|
|
|||||
Loans, net
|
|
14,953,885
|
|
|
—
|
|
|
14,577,010
|
|
|
77,316
|
|
|
14,654,326
|
|
|||||
Accrued interest receivable
|
|
85,517
|
|
|
—
|
|
|
85,517
|
|
|
—
|
|
|
85,517
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
16,972,532
|
|
|
$
|
—
|
|
|
$
|
16,980,066
|
|
|
$
|
—
|
|
|
$
|
16,980,066
|
|
Customer repurchase agreements
|
|
26,017
|
|
|
—
|
|
|
26,017
|
|
|
—
|
|
|
26,017
|
|
|||||
FHLB advances
|
|
390,000
|
|
|
—
|
|
|
390,000
|
|
|
—
|
|
|
390,000
|
|
|||||
Qualifying debt
|
|
376,905
|
|
|
—
|
|
|
336,803
|
|
|
67,210
|
|
|
404,013
|
|
|||||
Derivative liabilities
|
|
55,340
|
|
|
—
|
|
|
55,340
|
|
|
—
|
|
|
55,340
|
|
|||||
Accrued interest payable
|
|
16,366
|
|
|
—
|
|
|
16,366
|
|
|
—
|
|
|
16,366
|
|
|
|
Total Capital
|
|
Tier 1 Capital
|
|
Risk-Weighted Assets
|
|
Tangible Average Assets
|
|
Total Capital Ratio
|
|
Tier 1 Capital Ratio
|
|
Tier 1 Leverage Ratio
|
|
Common Equity
Tier 1 |
||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
WAL
|
|
$
|
2,897,356
|
|
|
$
|
2,431,320
|
|
|
$
|
21,983,976
|
|
|
$
|
22,204,799
|
|
|
13.2
|
%
|
|
11.1
|
%
|
|
10.9
|
%
|
|
10.7
|
%
|
WAB
|
|
2,628,650
|
|
|
2,317,745
|
|
|
22,040,765
|
|
|
22,209,700
|
|
|
11.9
|
|
|
10.5
|
|
|
10.4
|
|
|
10.5
|
|
||||
Well-capitalized ratios
|
|
|
|
|
|
|
|
|
|
10.0
|
|
|
8.0
|
|
|
5.0
|
|
|
6.5
|
|
||||||||
Minimum capital ratios
|
|
|
|
|
|
|
|
|
|
8.0
|
|
|
6.0
|
|
|
4.0
|
|
|
4.5
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
WAL
|
|
$
|
2,460,988
|
|
|
$
|
2,013,744
|
|
|
$
|
18,569,608
|
|
|
$
|
19,624,517
|
|
|
13.3
|
%
|
|
10.8
|
%
|
|
10.3
|
%
|
|
10.4
|
%
|
WAB
|
|
2,299,919
|
|
|
2,003,745
|
|
|
18,664,200
|
|
|
19,541,990
|
|
|
12.3
|
|
|
10.7
|
|
|
10.3
|
|
|
10.7
|
|
||||
Well-capitalized ratios
|
|
|
|
|
|
|
|
|
|
10.0
|
|
|
8.0
|
|
|
5.0
|
|
|
6.5
|
|
||||||||
Minimum capital ratios
|
|
|
|
|
|
|
|
|
|
8.0
|
|
|
6.0
|
|
|
4.0
|
|
|
4.5
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Change in benefit obligation
|
|
|
|
|
||||
Benefit obligation at beginning of period
|
|
$
|
8,891
|
|
|
$
|
8,394
|
|
Service cost
|
|
614
|
|
|
580
|
|
||
Interest cost
|
|
512
|
|
|
454
|
|
||
Actuarial losses/(gains)
|
|
41
|
|
|
(470
|
)
|
||
Expected benefits paid
|
|
(67
|
)
|
|
(67
|
)
|
||
Projected benefit obligation at end of year
|
|
$
|
9,991
|
|
|
$
|
8,891
|
|
Unfunded projected/accumulated benefit obligation
|
|
(9,991
|
)
|
|
(8,891
|
)
|
||
Additional liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
||||
Weighted average assumptions to determine benefit obligation
|
|
|
|
|
||||
Discount rate
|
|
5.75
|
%
|
|
5.75
|
%
|
||
Rate of compensation increase
|
|
3.00
|
%
|
|
3.00
|
%
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in thousands)
|
||||||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
||||||
Service cost
|
|
$
|
607
|
|
|
$
|
614
|
|
|
$
|
580
|
|
Interest cost
|
|
571
|
|
|
512
|
|
|
454
|
|
|||
Amortization of prior service cost
|
|
64
|
|
|
103
|
|
|
103
|
|
|||
Amortization of actuarial (gains)/losses
|
|
(159
|
)
|
|
(164
|
)
|
|
(114
|
)
|
|||
Net periodic benefit cost
|
|
$
|
1,083
|
|
|
$
|
1,065
|
|
|
$
|
1,023
|
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (cost)
|
|
$
|
(95
|
)
|
|
$
|
(61
|
)
|
|
$
|
(11
|
)
|
|
|
Year Ended December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
Balance, beginning
|
|
$
|
5,918
|
|
|
$
|
16,874
|
|
New loans
|
|
—
|
|
|
—
|
|
||
Advances
|
|
—
|
|
|
1,532
|
|
||
Repayments and other
|
|
(1,338
|
)
|
|
(12,488
|
)
|
||
Balance, ending
|
|
$
|
4,580
|
|
|
$
|
5,918
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands)
|
||||||
ASSETS:
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
115,721
|
|
|
$
|
56,554
|
|
Money market investments
|
|
7
|
|
|
—
|
|
||
Investment securities - AFS
|
|
66,278
|
|
|
34,698
|
|
||
Investment in bank subsidiaries
|
|
2,568,027
|
|
|
2,291,166
|
|
||
Investment in non-bank subsidiaries
|
|
80,019
|
|
|
77,457
|
|
||
Other assets
|
|
27,200
|
|
|
24,378
|
|
||
Total assets
|
|
$
|
2,857,252
|
|
|
$
|
2,484,253
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
|
|
|
|
||||
Qualifying debt
|
|
$
|
211,376
|
|
|
$
|
226,993
|
|
Accrued interest and other liabilities
|
|
32,142
|
|
|
27,562
|
|
||
Total liabilities
|
|
243,518
|
|
|
254,555
|
|
||
Total stockholders’ equity
|
|
2,613,734
|
|
|
2,229,698
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
2,857,252
|
|
|
$
|
2,484,253
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands)
|
||||||||||
Income:
|
|
|
|
|
|
|
||||||
Dividends from subsidiaries
|
|
$
|
152,116
|
|
|
$
|
97,264
|
|
|
$
|
12,795
|
|
Interest income
|
|
2,905
|
|
|
2,547
|
|
|
3,327
|
|
|||
Non-interest income
|
|
761
|
|
|
2,470
|
|
|
2,445
|
|
|||
Total income
|
|
155,782
|
|
|
102,281
|
|
|
18,567
|
|
|||
Expense:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
13,949
|
|
|
11,459
|
|
|
6,975
|
|
|||
Non-interest expense
|
|
19,025
|
|
|
16,293
|
|
|
9,221
|
|
|||
Total expense
|
|
32,974
|
|
|
27,752
|
|
|
16,196
|
|
|||
Income before income taxes and equity in undistributed earnings of subsidiaries
|
|
122,808
|
|
|
74,529
|
|
|
2,371
|
|
|||
Income tax benefit
|
|
10,436
|
|
|
5,229
|
|
|
4,399
|
|
|||
Income before equity in undistributed earnings of subsidiaries
|
|
133,244
|
|
|
79,758
|
|
|
6,770
|
|
|||
Equity in undistributed earnings of subsidiaries
|
|
302,544
|
|
|
245,734
|
|
|
253,028
|
|
|||
Net income
|
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
435,788
|
|
|
$
|
325,492
|
|
|
$
|
259,798
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
||||||
Equity in net undistributed earnings of subsidiaries
|
(302,544
|
)
|
|
(245,734
|
)
|
|
(253,028
|
)
|
|||
Other operating activities, net
|
(5,889
|
)
|
|
16,921
|
|
|
(9,880
|
)
|
|||
Net cash provided by (used in) operating activities
|
127,355
|
|
|
96,679
|
|
|
(3,110
|
)
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of securities
|
(44,409
|
)
|
|
(11,765
|
)
|
|
(20,148
|
)
|
|||
Principal pay downs, calls, maturities, and sales proceeds of securities
|
11,362
|
|
|
23,196
|
|
|
34,390
|
|
|||
Capital contributions to subsidiaries
|
—
|
|
|
(50,000
|
)
|
|
(226,869
|
)
|
|||
Other investing activities, net
|
(7
|
)
|
|
—
|
|
|
2,891
|
|
|||
Net cash (used in) investing activities
|
(33,054
|
)
|
|
(38,569
|
)
|
|
(209,736
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of subordinated debt
|
—
|
|
|
—
|
|
|
169,256
|
|
|||
Share repurchases
|
(35,688
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of common stock
|
—
|
|
|
—
|
|
|
55,785
|
|
|||
Other financing activities, net
|
554
|
|
|
(12,965
|
)
|
|
(8,413
|
)
|
|||
Net cash (used in) provided by financing activities
|
(35,134
|
)
|
|
(12,965
|
)
|
|
216,628
|
|
|||
Net increase in cash and cash equivalents
|
59,167
|
|
|
45,145
|
|
|
3,782
|
|
|||
Cash and cash equivalents at beginning of year
|
56,554
|
|
|
11,409
|
|
|
7,627
|
|
|||
Cash and cash equivalents at end of year
|
$
|
115,721
|
|
|
$
|
56,554
|
|
|
$
|
11,409
|
|
Supplemental disclosure:
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
||||||
Interest
|
$
|
13,950
|
|
|
$
|
11,182
|
|
|
$
|
5,165
|
|
Income taxes
|
7,704
|
|
|
97,781
|
|
|
70,131
|
|
|||
Non-cash investing and financing activity:
|
|
|
|
|
|
||||||
Change in unrealized gain (loss) on AFS securities, net of tax
|
127
|
|
|
759
|
|
|
(1,984
|
)
|
|||
Change in unrealized (loss) gain on junior subordinated debt, net of tax
|
5,693
|
|
|
(3,604
|
)
|
|
(2,077
|
)
|
|||
Loan and OREO contributions to subsidiaries
|
1,116
|
|
|
11,264
|
|
|
50,773
|
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
At December 31, 2018:
|
|
(in millions)
|
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents, and investment securities
|
|
$
|
4,259.7
|
|
|
$
|
2.5
|
|
|
$
|
10.9
|
|
|
$
|
2.5
|
|
|
$
|
3.0
|
|
Loans, net of deferred loan fees and costs
|
|
17,710.6
|
|
|
3,647.9
|
|
|
2,003.5
|
|
|
2,161.1
|
|
|
1,300.2
|
|
|||||
Less: allowance for credit losses
|
|
(152.7
|
)
|
|
(30.7
|
)
|
|
(18.7
|
)
|
|
(19.8
|
)
|
|
(10.7
|
)
|
|||||
Total loans
|
|
17,557.9
|
|
|
3,617.2
|
|
|
1,984.8
|
|
|
2,141.3
|
|
|
1,289.5
|
|
|||||
Other assets acquired through foreclosure, net
|
|
17.9
|
|
|
0.8
|
|
|
13.9
|
|
|
—
|
|
|
—
|
|
|||||
Goodwill and other intangible assets, net
|
|
299.2
|
|
|
—
|
|
|
23.2
|
|
|
—
|
|
|
155.5
|
|
|||||
Other assets
|
|
974.8
|
|
|
46.9
|
|
|
57.8
|
|
|
14.2
|
|
|
23.9
|
|
|||||
Total assets
|
|
$
|
23,109.5
|
|
|
$
|
3,667.4
|
|
|
$
|
2,090.6
|
|
|
$
|
2,158.0
|
|
|
$
|
1,471.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
19,177.4
|
|
|
$
|
5,090.2
|
|
|
$
|
3,996.4
|
|
|
$
|
2,347.5
|
|
|
$
|
1,839.1
|
|
Borrowings and qualifying debt
|
|
851.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other liabilities
|
|
466.9
|
|
|
10.4
|
|
|
14.5
|
|
|
4.5
|
|
|
12.2
|
|
|||||
Total liabilities
|
|
20,495.8
|
|
|
5,100.6
|
|
|
4,010.9
|
|
|
2,352.0
|
|
|
1,851.3
|
|
|||||
Allocated equity:
|
|
2,613.7
|
|
|
441.0
|
|
|
277.4
|
|
|
242.9
|
|
|
304.1
|
|
|||||
Total liabilities and stockholders' equity
|
|
$
|
23,109.5
|
|
|
$
|
5,541.6
|
|
|
$
|
4,288.3
|
|
|
$
|
2,594.9
|
|
|
$
|
2,155.4
|
|
Excess funds provided (used)
|
|
—
|
|
|
1,874.2
|
|
|
2,197.7
|
|
|
436.9
|
|
|
683.5
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
Assets:
|
|
(in millions)
|
||||||||||||||||||||||
Cash, cash equivalents, and investment securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,240.8
|
|
Loans, net of deferred loan fees and costs
|
|
210.0
|
|
|
1,547.5
|
|
|
1,200.9
|
|
|
1,479.9
|
|
|
4,154.9
|
|
|
4.7
|
|
||||||
Less: allowance for credit losses
|
|
(1.9
|
)
|
|
(14.2
|
)
|
|
(10.0
|
)
|
|
(8.5
|
)
|
|
(38.2
|
)
|
|
—
|
|
||||||
Total loans
|
|
208.1
|
|
|
1,533.3
|
|
|
1,190.9
|
|
|
1,471.4
|
|
|
4,116.7
|
|
|
4.7
|
|
||||||
Other assets acquired through foreclosure, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
||||||
Goodwill and other intangible assets, net
|
|
—
|
|
|
—
|
|
|
120.4
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
||||||
Other assets
|
|
0.9
|
|
|
20.1
|
|
|
6.3
|
|
|
7.2
|
|
|
37.1
|
|
|
760.4
|
|
||||||
Total assets
|
|
$
|
209.0
|
|
|
$
|
1,553.4
|
|
|
$
|
1,317.6
|
|
|
$
|
1,478.7
|
|
|
$
|
4,153.8
|
|
|
$
|
5,009.1
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits
|
|
$
|
2,607.2
|
|
|
$
|
—
|
|
|
$
|
2,559.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
738.0
|
|
Borrowings and qualifying debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
851.5
|
|
||||||
Other liabilities
|
|
2.1
|
|
|
25.2
|
|
|
0.1
|
|
|
0.4
|
|
|
49.6
|
|
|
347.9
|
|
||||||
Total liabilities
|
|
2,609.3
|
|
|
25.2
|
|
|
2,559.1
|
|
|
0.4
|
|
|
49.6
|
|
|
1,937.4
|
|
||||||
Allocated equity:
|
|
70.7
|
|
|
123.9
|
|
|
268.7
|
|
|
122.3
|
|
|
340.0
|
|
|
422.7
|
|
||||||
Total liabilities and stockholders' equity
|
|
$
|
2,680.0
|
|
|
$
|
149.1
|
|
|
$
|
2,827.8
|
|
|
$
|
122.7
|
|
|
$
|
389.6
|
|
|
$
|
2,360.1
|
|
Excess funds provided (used)
|
|
2,471.0
|
|
|
(1,404.3
|
)
|
|
1,510.2
|
|
|
(1,356.0
|
)
|
|
(3,764.2
|
)
|
|
(2,649.0
|
)
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
At December 31, 2017:
|
|
(in millions)
|
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents, and investment securities
|
|
$
|
4,237.1
|
|
|
$
|
2.1
|
|
|
$
|
8.2
|
|
|
$
|
2.1
|
|
|
$
|
1.7
|
|
Loans, net of deferred loan fees and costs
|
|
15,093.9
|
|
|
3,323.7
|
|
|
1,844.8
|
|
|
1,934.7
|
|
|
1,275.5
|
|
|||||
Less: allowance for credit losses
|
|
(140.0
|
)
|
|
(31.5
|
)
|
|
(18.1
|
)
|
|
(19.5
|
)
|
|
(13.2
|
)
|
|||||
Total loans
|
|
14,953.9
|
|
|
3,292.2
|
|
|
1,826.7
|
|
|
1,915.2
|
|
|
1,262.3
|
|
|||||
Other assets acquired through foreclosure, net
|
|
28.5
|
|
|
2.3
|
|
|
13.3
|
|
|
—
|
|
|
0.2
|
|
|||||
Goodwill and other intangible assets, net
|
|
300.7
|
|
|
—
|
|
|
23.2
|
|
|
—
|
|
|
156.5
|
|
|||||
Other assets
|
|
808.9
|
|
|
46.3
|
|
|
58.8
|
|
|
14.4
|
|
|
15.1
|
|
|||||
Total assets
|
|
$
|
20,329.1
|
|
|
$
|
3,342.9
|
|
|
$
|
1,930.2
|
|
|
$
|
1,931.7
|
|
|
$
|
1,435.8
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
16,972.5
|
|
|
$
|
4,841.3
|
|
|
$
|
3,951.4
|
|
|
$
|
2,461.1
|
|
|
$
|
1,681.7
|
|
Borrowings and qualifying debt
|
|
766.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other liabilities
|
|
360.0
|
|
|
11.6
|
|
|
20.9
|
|
|
3.2
|
|
|
11.9
|
|
|||||
Total liabilities
|
|
18,099.4
|
|
|
4,852.9
|
|
|
3,972.3
|
|
|
2,464.3
|
|
|
1,693.6
|
|
|||||
Allocated equity:
|
|
2,229.7
|
|
|
396.5
|
|
|
263.7
|
|
|
221.8
|
|
|
303.1
|
|
|||||
Total liabilities and stockholders' equity
|
|
$
|
20,329.1
|
|
|
$
|
5,249.4
|
|
|
$
|
4,236.0
|
|
|
$
|
2,686.1
|
|
|
$
|
1,996.7
|
|
Excess funds provided (used)
|
|
—
|
|
|
1,906.5
|
|
|
2,305.8
|
|
|
754.4
|
|
|
560.9
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
Assets:
|
|
(in millions)
|
||||||||||||||||||||||
Cash, cash equivalents, and investment securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,223.0
|
|
Loans, net of deferred loan fees and costs
|
|
162.1
|
|
|
1,580.4
|
|
|
1,097.9
|
|
|
1,327.7
|
|
|
2,543.0
|
|
|
4.1
|
|
||||||
Less: allowance for credit losses
|
|
(1.6
|
)
|
|
(15.6
|
)
|
|
(11.4
|
)
|
|
(4.0
|
)
|
|
(25.0
|
)
|
|
(0.1
|
)
|
||||||
Total loans
|
|
160.5
|
|
|
1,564.8
|
|
|
1,086.5
|
|
|
1,323.7
|
|
|
2,518.0
|
|
|
4.0
|
|
||||||
Other assets acquired through foreclosure, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.7
|
|
||||||
Goodwill and other intangible assets, net
|
|
—
|
|
|
—
|
|
|
120.9
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
||||||
Other assets
|
|
0.9
|
|
|
17.9
|
|
|
6.0
|
|
|
5.9
|
|
|
15.5
|
|
|
628.1
|
|
||||||
Total assets
|
|
$
|
161.4
|
|
|
$
|
1,582.7
|
|
|
$
|
1,213.4
|
|
|
$
|
1,329.7
|
|
|
$
|
2,533.5
|
|
|
$
|
4,867.8
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits
|
|
$
|
2,230.4
|
|
|
$
|
—
|
|
|
$
|
1,737.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69.0
|
|
Borrowings and qualifying debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
766.9
|
|
||||||
Other liabilities
|
|
1.2
|
|
|
42.4
|
|
|
0.8
|
|
|
0.4
|
|
|
5.5
|
|
|
262.1
|
|
||||||
Total liabilities
|
|
2,231.6
|
|
|
42.4
|
|
|
1,738.4
|
|
|
0.4
|
|
|
5.5
|
|
|
1,098.0
|
|
||||||
Allocated equity:
|
|
59.4
|
|
|
126.5
|
|
|
244.1
|
|
|
108.3
|
|
|
206.0
|
|
|
300.3
|
|
||||||
Total liabilities and stockholders' equity
|
|
$
|
2,291.0
|
|
|
$
|
168.9
|
|
|
$
|
1,982.5
|
|
|
$
|
108.7
|
|
|
$
|
211.5
|
|
|
$
|
1,398.3
|
|
Excess funds provided (used)
|
|
2,129.6
|
|
|
(1,413.8
|
)
|
|
769.1
|
|
|
(1,221.0
|
)
|
|
(2,322.0
|
)
|
|
(3,469.5
|
)
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
Year Ended December 31, 2018:
|
|
(in thousands)
|
||||||||||||||||||
Net interest income
|
|
$
|
915,879
|
|
|
$
|
224,754
|
|
|
$
|
148,085
|
|
|
$
|
115,561
|
|
|
$
|
92,583
|
|
Provision for (recovery of) credit losses
|
|
23,000
|
|
|
2,235
|
|
|
(2,447
|
)
|
|
2,292
|
|
|
1,809
|
|
|||||
Net interest income after provision for credit losses
|
|
892,879
|
|
|
222,519
|
|
|
150,532
|
|
|
113,269
|
|
|
90,774
|
|
|||||
Non-interest income
|
|
43,116
|
|
|
7,689
|
|
|
11,326
|
|
|
3,800
|
|
|
9,932
|
|
|||||
Non-interest expense
|
|
(425,667
|
)
|
|
(91,161
|
)
|
|
(62,536
|
)
|
|
(57,735
|
)
|
|
(52,574
|
)
|
|||||
Income (loss) before income taxes
|
|
510,328
|
|
|
139,047
|
|
|
99,322
|
|
|
59,334
|
|
|
48,132
|
|
|||||
Income tax expense (benefit)
|
|
74,540
|
|
|
34,824
|
|
|
20,951
|
|
|
16,709
|
|
|
13,565
|
|
|||||
Net income
|
|
$
|
435,788
|
|
|
$
|
104,223
|
|
|
$
|
78,371
|
|
|
$
|
42,625
|
|
|
$
|
34,567
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Net interest income
|
|
$
|
67,154
|
|
|
$
|
15,149
|
|
|
$
|
105,029
|
|
|
$
|
55,332
|
|
|
$
|
80,073
|
|
|
$
|
12,159
|
|
Provision for (recovery of) credit losses
|
|
281
|
|
|
(1,101
|
)
|
|
5,657
|
|
|
3,275
|
|
|
11,046
|
|
|
(47
|
)
|
||||||
Net interest income after provision for credit losses
|
|
66,873
|
|
|
16,250
|
|
|
99,372
|
|
|
52,057
|
|
|
69,027
|
|
|
12,206
|
|
||||||
Non-interest income
|
|
614
|
|
|
158
|
|
|
14,121
|
|
|
13
|
|
|
2,076
|
|
|
(6,613
|
)
|
||||||
Non-interest expense
|
|
(32,390
|
)
|
|
(8,120
|
)
|
|
(41,159
|
)
|
|
(9,603
|
)
|
|
(26,822
|
)
|
|
(43,567
|
)
|
||||||
Income (loss) before income taxes
|
|
35,097
|
|
|
8,288
|
|
|
72,334
|
|
|
42,467
|
|
|
44,281
|
|
|
(37,974
|
)
|
||||||
Income tax expense (benefit)
|
|
8,072
|
|
|
1,905
|
|
|
16,637
|
|
|
9,768
|
|
|
10,184
|
|
|
(58,075
|
)
|
||||||
Net income
|
|
$
|
27,025
|
|
|
$
|
6,383
|
|
|
$
|
55,697
|
|
|
$
|
32,699
|
|
|
$
|
34,097
|
|
|
$
|
20,101
|
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
Year Ended December 31, 2017:
|
|
(in thousands)
|
||||||||||||||||||
Net interest income (expense)
|
|
$
|
784,664
|
|
|
$
|
198,622
|
|
|
$
|
145,001
|
|
|
$
|
109,177
|
|
|
$
|
85,360
|
|
Provision for (recovery of) credit losses
|
|
17,250
|
|
|
1,153
|
|
|
(4,724
|
)
|
|
100
|
|
|
4,575
|
|
|||||
Net interest income (expense) after provision for credit losses
|
|
767,414
|
|
|
197,469
|
|
|
149,725
|
|
|
109,077
|
|
|
80,785
|
|
|||||
Non-interest income
|
|
45,344
|
|
|
4,757
|
|
|
9,135
|
|
|
3,396
|
|
|
10,000
|
|
|||||
Non-interest expense
|
|
(360,941
|
)
|
|
(76,118
|
)
|
|
(61,066
|
)
|
|
(51,808
|
)
|
|
(48,387
|
)
|
|||||
Income (loss) before income taxes
|
|
451,817
|
|
|
126,108
|
|
|
97,794
|
|
|
60,665
|
|
|
42,398
|
|
|||||
Income tax expense (benefit)
|
|
126,325
|
|
|
49,317
|
|
|
34,133
|
|
|
25,529
|
|
|
17,591
|
|
|||||
Net income
|
|
$
|
325,492
|
|
|
$
|
76,791
|
|
|
$
|
63,661
|
|
|
$
|
35,136
|
|
|
$
|
24,807
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Net interest income (expense)
|
|
$
|
54,102
|
|
|
$
|
28,485
|
|
|
$
|
82,473
|
|
|
$
|
56,961
|
|
|
$
|
65,908
|
|
|
$
|
(41,425
|
)
|
Provision for (recovery of) credit losses
|
|
341
|
|
|
593
|
|
|
2,821
|
|
|
4,493
|
|
|
9,729
|
|
|
(1,831
|
)
|
||||||
Net interest income (expense) after provision for credit losses
|
|
53,761
|
|
|
27,892
|
|
|
79,652
|
|
|
52,468
|
|
|
56,179
|
|
|
(39,594
|
)
|
||||||
Non-interest income
|
|
558
|
|
|
—
|
|
|
8,422
|
|
|
52
|
|
|
1,772
|
|
|
7,252
|
|
||||||
Non-interest expense
|
|
(28,289
|
)
|
|
(8,522
|
)
|
|
(36,726
|
)
|
|
(10,166
|
)
|
|
(20,550
|
)
|
|
(19,309
|
)
|
||||||
Income (loss) before income taxes
|
|
26,030
|
|
|
19,370
|
|
|
51,348
|
|
|
42,354
|
|
|
37,401
|
|
|
(51,651
|
)
|
||||||
Income tax expense (benefit)
|
|
9,676
|
|
|
6,317
|
|
|
19,255
|
|
|
15,883
|
|
|
14,000
|
|
|
(65,376
|
)
|
||||||
Net income
|
|
$
|
16,354
|
|
|
$
|
13,053
|
|
|
$
|
32,093
|
|
|
$
|
26,471
|
|
|
$
|
23,401
|
|
|
$
|
13,725
|
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
Year Ended December 31, 2016:
|
|
(in thousands)
|
||||||||||||||||||
Net interest income (expense)
|
|
$
|
657,213
|
|
|
$
|
170,513
|
|
|
$
|
137,507
|
|
|
$
|
103,542
|
|
|
$
|
88,162
|
|
Provision for (recovery of) credit losses
|
|
8,000
|
|
|
9,912
|
|
|
(3,337
|
)
|
|
(580
|
)
|
|
2,587
|
|
|||||
Net interest income (expense) after provision for credit losses
|
|
649,213
|
|
|
160,601
|
|
|
140,844
|
|
|
104,122
|
|
|
85,575
|
|
|||||
Non-interest income
|
|
42,915
|
|
|
6,887
|
|
|
8,622
|
|
|
2,550
|
|
|
10,422
|
|
|||||
Non-interest expense
|
|
(330,949
|
)
|
|
(63,406
|
)
|
|
(60,570
|
)
|
|
(45,643
|
)
|
|
(53,073
|
)
|
|||||
Income (loss) before income taxes
|
|
361,179
|
|
|
104,082
|
|
|
88,896
|
|
|
61,029
|
|
|
42,924
|
|
|||||
Income tax expense (benefit)
|
|
101,381
|
|
|
40,832
|
|
|
31,113
|
|
|
25,663
|
|
|
18,049
|
|
|||||
Net income
|
|
$
|
259,798
|
|
|
$
|
63,250
|
|
|
$
|
57,783
|
|
|
$
|
35,366
|
|
|
$
|
24,875
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Net interest income (expense)
|
|
$
|
41,539
|
|
|
$
|
20,900
|
|
|
$
|
69,143
|
|
|
$
|
38,583
|
|
|
$
|
49,893
|
|
|
$
|
(62,569
|
)
|
Provision for (recovery of) credit losses
|
|
256
|
|
|
(183
|
)
|
|
(1,626
|
)
|
|
—
|
|
|
4,200
|
|
|
(3,229
|
)
|
||||||
Net interest income (expense) after provision for credit losses
|
|
41,283
|
|
|
21,083
|
|
|
70,769
|
|
|
38,583
|
|
|
45,693
|
|
|
(59,340
|
)
|
||||||
Non-interest income
|
|
460
|
|
|
59
|
|
|
6,728
|
|
|
—
|
|
|
2,315
|
|
|
4,872
|
|
||||||
Non-interest expense
|
|
(24,019
|
)
|
|
(7,936
|
)
|
|
(31,271
|
)
|
|
(8,544
|
)
|
|
(15,204
|
)
|
|
(21,283
|
)
|
||||||
Income (loss) before income taxes
|
|
17,724
|
|
|
13,206
|
|
|
46,226
|
|
|
30,039
|
|
|
32,804
|
|
|
(75,751
|
)
|
||||||
Income tax expense (benefit)
|
|
6,647
|
|
|
4,952
|
|
|
17,335
|
|
|
11,265
|
|
|
12,302
|
|
|
(66,777
|
)
|
||||||
Net income
|
|
$
|
11,077
|
|
|
$
|
8,254
|
|
|
$
|
28,891
|
|
|
$
|
18,774
|
|
|
$
|
20,502
|
|
|
$
|
(8,974
|
)
|
|
|
|
|
Regional Segments
|
||||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||||
Year Ended December 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees
|
|
$
|
22,295
|
|
|
$
|
3,902
|
|
—
|
|
$
|
8,151
|
|
—
|
|
$
|
2,666
|
|
|
$
|
3,795
|
|
Debit and credit card interchange (1)
|
|
6,801
|
|
|
1,132
|
|
—
|
|
1,379
|
|
—
|
|
650
|
|
|
3,616
|
|
|||||
Success fees (2)
|
|
3,335
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
96
|
|
|||||
Other income
|
|
626
|
|
|
181
|
|
—
|
|
194
|
|
—
|
|
59
|
|
|
161
|
|
|||||
Total revenue from contracts with customers
|
|
$
|
33,057
|
|
|
$
|
5,215
|
|
|
$
|
9,724
|
|
|
$
|
3,375
|
|
|
$
|
7,668
|
|
||
Revenues outside the scope of ASC 606 (3)
|
|
10,059
|
|
|
2,474
|
|
|
1,602
|
|
|
425
|
|
|
2,264
|
|
|||||||
Total non-interest income
|
|
$
|
43,116
|
|
|
$
|
7,689
|
|
|
$
|
11,326
|
|
|
$
|
3,800
|
|
|
$
|
9,932
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA Services
|
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
Year Ended December 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees
|
|
$
|
585
|
|
|
$
|
—
|
|
|
$
|
3,201
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
Debit and credit card interchange (1)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Success fees (2)
|
|
—
|
|
|
—
|
|
|
3,239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other income
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
26
|
|
||||||
Total revenue from contracts with customers
|
|
$
|
613
|
|
|
$
|
—
|
|
|
$
|
6,440
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
21
|
|
Revenues outside the scope of ASC 606 (3)
|
|
1
|
|
|
158
|
|
|
7,681
|
|
|
13
|
|
|
2,075
|
|
|
(6,634
|
)
|
||||||
Total non-interest income
|
|
$
|
614
|
|
|
$
|
158
|
|
|
$
|
14,121
|
|
|
$
|
13
|
|
|
$
|
2,076
|
|
|
$
|
(6,613
|
)
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
Year Ended December 31, 2017
|
|
(in thousands)
|
||||||||||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges and fees
|
|
$
|
20,346
|
|
|
$
|
2,877
|
|
|
$
|
7,470
|
|
|
$
|
2,340
|
|
|
$
|
4,034
|
|
Debit and credit card interchange (1)
|
|
5,271
|
|
|
886
|
|
|
996
|
|
|
539
|
|
|
2,848
|
|
|||||
Success fees (2)
|
|
1,403
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
247
|
|
|||||
Other income
|
|
382
|
|
|
51
|
|
|
(5
|
)
|
|
68
|
|
|
138
|
|
|||||
Total revenue from contracts with customers
|
|
$
|
27,402
|
|
|
$
|
3,814
|
|
|
$
|
8,461
|
|
|
$
|
2,947
|
|
|
$
|
7,267
|
|
Revenues outside the scope of ASC 606 (3)
|
|
17,942
|
|
|
943
|
|
|
674
|
|
|
449
|
|
|
2,733
|
|
|||||
Total non-interest income
|
|
$
|
45,344
|
|
|
$
|
4,757
|
|
|
$
|
9,135
|
|
|
$
|
3,396
|
|
|
$
|
10,000
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA Services
|
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
Year Ended December 31, 2017
|
|
(in thousands)
|
||||||||||||||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees
|
|
$
|
554
|
|
|
$
|
—
|
|
|
$
|
3,071
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debit and credit card interchange (1)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Success fees (2)
|
|
—
|
|
|
—
|
|
|
1,156
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other income
|
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
114
|
|
|
12
|
|
||||||
Total revenue from contracts with customers
|
|
$
|
557
|
|
|
$
|
—
|
|
|
$
|
4,230
|
|
|
$
|
—
|
|
|
$
|
114
|
|
|
$
|
12
|
|
Revenues outside the scope of ASC 606 (3)
|
|
1
|
|
|
—
|
|
|
4,192
|
|
|
52
|
|
|
1,658
|
|
|
7,240
|
|
||||||
Total non-interest income
|
|
$
|
558
|
|
|
$
|
—
|
|
|
$
|
8,422
|
|
|
$
|
52
|
|
|
$
|
1,772
|
|
|
$
|
7,252
|
|
(1)
|
Included as part of Card income in the Consolidated Income Statement.
|
(2)
|
Included as part of Income from equity investments in the Consolidated Income Statement.
|
(3)
|
Amounts are accounted for under separate guidance. Refer to discussion of revenue sources not subject to ASC 606 under the Non-interest income section in "
Note 1. Summary of Significant Accounting Policies
."
|
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
|
|
(in thousands, except per share amounts)
|
||||||||||||||
Interest income
|
|
$
|
281,968
|
|
|
$
|
265,216
|
|
|
$
|
251,602
|
|
|
$
|
234,697
|
|
Interest expense
|
|
38,455
|
|
|
31,178
|
|
|
27,494
|
|
|
20,477
|
|
||||
Net interest income
|
|
243,513
|
|
|
234,038
|
|
|
224,108
|
|
|
214,220
|
|
||||
Provision for credit losses
|
|
6,000
|
|
|
6,000
|
|
|
5,000
|
|
|
6,000
|
|
||||
Net interest income after provision for credit losses
|
|
237,513
|
|
|
228,038
|
|
|
219,108
|
|
|
208,220
|
|
||||
Non-interest income
|
|
13,611
|
|
|
4,418
|
|
|
13,444
|
|
|
11,643
|
|
||||
Non-interest expense
|
|
(111,129
|
)
|
|
(113,841
|
)
|
|
(102,548
|
)
|
|
(98,149
|
)
|
||||
Income before provision for income taxes
|
|
139,995
|
|
|
118,615
|
|
|
130,004
|
|
|
121,714
|
|
||||
Income tax expense
|
|
20,909
|
|
|
7,492
|
|
|
25,325
|
|
|
20,814
|
|
||||
Net income
|
|
$
|
119,086
|
|
|
$
|
111,123
|
|
|
$
|
104,679
|
|
|
$
|
100,900
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
1.14
|
|
|
$
|
1.06
|
|
|
$
|
1.00
|
|
|
$
|
0.97
|
|
Diluted
|
|
$
|
1.13
|
|
|
$
|
1.05
|
|
|
$
|
0.99
|
|
|
$
|
0.96
|
|
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
|
|
(in thousands, except per share amounts)
|
||||||||||||||
Interest income
|
|
$
|
228,459
|
|
|
$
|
217,836
|
|
|
$
|
206,953
|
|
|
$
|
192,265
|
|
Interest expense
|
|
17,430
|
|
|
16,253
|
|
|
14,210
|
|
|
12,956
|
|
||||
Net interest income
|
|
211,029
|
|
|
201,583
|
|
|
192,743
|
|
|
179,309
|
|
||||
Provision for credit losses
|
|
5,000
|
|
|
5,000
|
|
|
3,000
|
|
|
4,250
|
|
||||
Net interest income after provision for credit losses
|
|
206,029
|
|
|
196,583
|
|
|
189,743
|
|
|
175,059
|
|
||||
Non-interest income
|
|
13,688
|
|
|
10,456
|
|
|
10,601
|
|
|
10,599
|
|
||||
Non-interest expense
|
|
(95,398
|
)
|
|
(89,296
|
)
|
|
(88,420
|
)
|
|
(87,827
|
)
|
||||
Income before provision for income taxes
|
|
124,319
|
|
|
117,743
|
|
|
111,924
|
|
|
97,831
|
|
||||
Income tax expense
|
|
34,973
|
|
|
34,899
|
|
|
31,964
|
|
|
24,489
|
|
||||
Net income
|
|
$
|
89,346
|
|
|
$
|
82,844
|
|
|
$
|
79,960
|
|
|
$
|
73,342
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.86
|
|
|
$
|
0.79
|
|
|
$
|
0.77
|
|
|
$
|
0.71
|
|
Diluted
|
|
$
|
0.85
|
|
|
$
|
0.79
|
|
|
$
|
0.76
|
|
|
$
|
0.70
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures.
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(1)
|
The following financial statements are incorporated by reference from Item 8 hereto:
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
(2)
|
Financial Statement Schedules
|
3.1*
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
3.4
|
|
|
|
|
|
3.5
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
4.6
|
|
|
|
|
|
4.7
|
|
|
|
|
|
4.8
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
10.5
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
10.9
|
|
|
|
|
|
10.10
|
|
|
|
|
|
10.11
|
|
|
|
|
21.1*
|
|
|
|
|
|
23.1*
|
|
|
|
|
|
24.1*
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32**
|
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document.
|
|
|
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
Item 16.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
|
|
WESTERN ALLIANCE BANCORPORATION
|
||
|
|
|
|
|
March 1, 2019
|
|
By:
|
|
/s/ Kenneth A. Vecchione
|
|
|
|
|
Kenneth A. Vecchione
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
Name
|
|
Title
|
|
|
|
/s/ Kenneth A. Vecchione
|
|
Chief Executive Officer
|
Kenneth A. Vecchione
|
|
|
|
|
|
/s/ Robert Sarver
|
|
Executive Chairman
|
Robert Sarver
|
|
|
|
|
|
/s/ Dale Gibbons
|
|
Vice Chairman and Chief Financial Officer
|
Dale Gibbons
|
|
(Principal Financial Officer)
|
|
|
|
/s/ J. Kelly Ardrey Jr.
|
|
Senior Vice President and Chief Accounting Officer
|
J. Kelly Ardrey Jr.
|
|
(Principal Accounting Officer)
|
|
|
|
/s/ Bruce D. Beach
|
|
Director
|
Bruce D. Beach
|
|
|
|
|
|
/s/ William S. Boyd
|
|
Director
|
William S. Boyd
|
|
|
|
|
|
/s/ Howard Gould
|
|
Director
|
Howard Gould
|
|
|
|
|
|
/s/ Steven J. Hilton
|
|
Director
|
Steven J. Hilton
|
|
|
|
|
|
/s/ Marianne Boyd Johnson
|
|
Director
|
Marianne Boyd Johnson
|
|
|
|
|
|
/s/ Robert Latta
|
|
Director
|
Robert Latta
|
|
|
|
|
|
/s/ Cary Mack
|
|
Director
|
Cary Mack
|
|
|
|
|
|
/s/ Todd Marshall
|
|
Director
|
Todd Marshall
|
|
|
|
|
|
/s/ James Nave
|
|
Director
|
James Nave
|
|
|
|
|
|
/s/ Michael Patriarca
|
|
Director
|
Michael Patriarca
|
|
|
|
|
|
/s/ Donald D. Snyder
|
|
Director
|
Donald D. Snyder
|
|
|
|
|
|
/s/ Sung Won Sohn
|
|
Director
|
Sung Won Sohn
|
|
|
SECOND:
|
The address of the registered office of the Corporation in the State of Delaware and the County of Kent is 615 South DuPont Highway, Dover, DE 19901 and the name of the registered agent at that address is National Corporate Research, Ltd.
|
THIRD:
|
The purpose of the Corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of Delaware.
|
FOURTH:
|
A. The total number of shares of all classes of stock which the Corporation shall have authority to issue is 220,000,000 shares consisting of:
|
1.
|
200,000,000 shares of Common Stock, with a par value of $0.0001 per share (the “Common Stock”); and
|
2.
|
20,000,000 shares of Preferred Stock, with a par value of $0.0001 per share (the “Preferred Stock”).
|
FIFTH:
|
The following provisions are inserted for the management of the business and the conduct of the affairs of the Corporation, and for further definition, limitation and regulation of the powers of the Corporation and of its directors and stockholders:
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SIXTH:
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A. The number of directors shall be no fewer than one and shall be fixed in the manner in the manner provided for in the Bylaws. Each director who is nominated for election as a director as of the date of the 2015 annual meeting of stockholders of the Corporation shall, if elected, hold office until the 2016 annual meeting of
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SEVENTH:
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The Board of Directors is expressly empowered to adopt, amend, alter or repeal the Bylaws of the Corporation. The stockholders shall also have power to adopt, amend, alter or repeal the Bylaws of the Corporation. Any adoption, amendment, alteration or repeal of the Bylaws of the Corporation by the stockholders shall require, in addition to any vote of the holders of any class or series of stock of the Corporation required by law or by this Certificate of Incorporation, the affirmative vote of the holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting power of all of the then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.
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EIGHTH:
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A director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (i) for any breach of the director’s duty of loyalty to the Corporation or its stockholders, (ii) for acts or omissions not in good faith or which involved intentional misconduct or a knowing violation of law, (iii) under Section 174 of the Delaware General Corporation Law, or (iv) for any transaction from which the director derived an improper personal benefit.
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NINTH:
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Unless the corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (iii) any action asserting a claim against the Corporation arising pursuant to any provision of the Delaware General Corporation Law or the Corporation’s Certificate of Incorporation or Bylaws, or (iv) any action asserting a claim against the Corporation governed by the internal affairs doctrine
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TENTH:
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The Corporation reserves the right to amend or repeal any provision contained in this Certificate of Incorporation in any manner now or hereafter permitted by the laws of the State of Delaware and all rights of the stockholders of the Corporation are granted subject to this reservation;
provided
,
however
, that, notwithstanding any other provision of this Certificate of Incorporation or any provision of law which might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock of this Corporation required by law or by this Certificate of Incorporation, the affirmative vote of the holders of at least a majority of the voting power of all of the then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend or repeal this Article TENTH, Article FIFTH, Article SIXTH, Article SEVENTH, Article EIGHTH, or Article NINTH.
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WESTERN ALLIANCE BANCORPORATION
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By:
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/s/ Randall S. Theisen
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Name: Randall S. Theisen
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Title: Executive Vice President, General Counsel and Secretary
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Name
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Doing Business As
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Jurisdiction of Incorporation or Organization
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Western Alliance Bank
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Alliance Bank of Arizona
Bridge Bank
First Independent Bank
Bank of Nevada Torrey Pines Bank
Alliance Association Bank
Western Alliance Corporate Finance
Western Alliance Public Finance
Western Alliance Resort Finance
Western Alliance Warehouse Lending
|
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Arizona
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CS Insurance Co.
|
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Not applicable
|
|
Arizona
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Las Vegas Sunset Properties
|
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Not applicable
|
|
Nevada
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Helios Prime, Inc.
|
|
Not applicable
|
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Delaware
|
Western Alliance Business Trust
|
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Not applicable
|
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Delaware
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WA PWI, LLC
|
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Not applicable
|
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Arizona
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Western One, LLC
|
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Not applicable
|
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Arizona
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Western Alliance Equipment Finance
|
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Not applicable
|
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Arizona
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BW Real Estate, Inc.
|
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Not applicable
|
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Nevada
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BankWest Nevada Capital Trust II
|
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Not applicable
|
|
Delaware
|
Intermountain First Statutory Trust I
|
|
Not applicable
|
|
Connecticut
|
First Independent Statutory Trust I
|
|
Not applicable
|
|
Delaware
|
WAL Trust No. 1
|
|
Not applicable
|
|
Delaware
|
WAL Statutory Trust No. 2
|
|
Not applicable
|
|
Connecticut
|
WAL Statutory Trust No. 3
|
|
Not applicable
|
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Connecticut
|
Bridge Capital Holdings Trust I
|
|
Not applicable
|
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Delaware
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Bridge Capital Holdings Trust II
|
|
Not applicable
|
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Delaware
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1.
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I have reviewed this
Annual
Report on Form
10-K
of Western Alliance Bancorporation;
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ Kenneth A. Vecchione
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Kenneth A. Vecchione
|
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Chief Executive Officer
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Date:
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March 1, 2019
|
|
|
Western Alliance Bancorporation
|
1.
|
I have reviewed this
Annual
Report on Form
10-K
of Western Alliance Bancorporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
|
/s/ Dale Gibbons
|
|
|
|
|
Dale Gibbons
|
|
|
|
|
Chief Financial Officer
|
Date:
|
March 1, 2019
|
|
|
Western Alliance Bancorporation
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
|
|
|
|
|
Date:
|
March 1, 2019
|
|
|
/s/ Kenneth A. Vecchione
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
Western Alliance Bancorporation
|
|
|
|
|
|
Date:
|
March 1, 2019
|
|
|
/s/ Dale Gibbons
|
|
|
|
|
Chief Financial Officer
|
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|
|
|
Western Alliance Bancorporation
|