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ý
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the quarterly period ended March 31, 2019
or
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o
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the transition period from__________ to __________
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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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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 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 5.
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Item 6.
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ENTITIES / DIVISIONS:
|
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ABA
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Alliance Bank of Arizona
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HOA Services
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Homeowner Associations Services
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BON
|
Bank of Nevada
|
LVSP
|
Las Vegas Sunset Properties
|
Bridge
|
Bridge Bank
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TPB
|
Torrey Pines Bank
|
Company
|
Western Alliance Bancorporation and subsidiaries
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WA PWI
|
Western Alliance Public Welfare Investments, LLC
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CSI
|
CS Insurance Company
|
WAB or Bank
|
Western Alliance Bank
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FIB
|
First Independent Bank
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WABT
|
Western Alliance Business Trust
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HFF
|
Hotel Franchise Finance
|
WAL or Parent
|
Western Alliance Bancorporation
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TERMS:
|
|||
AFS
|
Available-for-Sale
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HFI
|
Held for Investment
|
ALCO
|
Asset and Liability Management Committee
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HTM
|
Held-to-Maturity
|
AOCI
|
Accumulated Other Comprehensive Income
|
ICS
|
Insured Cash Sweep Service
|
ASC
|
Accounting Standards Codification
|
IRC
|
Internal Revenue Code
|
ASU
|
Accounting Standards Update
|
ISDA
|
International Swaps and Derivatives Association
|
Basel III
|
Banking Supervision's December 2010 final capital framework
|
LIBOR
|
London Interbank Offered Rate
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BOD
|
Board of Directors
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LIHTC
|
Low-Income Housing Tax Credit
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CCO
|
Chief Credit Officer
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MBS
|
Mortgage-Backed Securities
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CDARS
|
Certificate Deposit Account Registry Service
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NBL
|
National Business Lines
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CDO
|
Collateralized Debt Obligation
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NOL
|
Net Operating Loss
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CEO
|
Chief Executive Officer
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NPV
|
Net Present Value
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CFO
|
Chief Financial Officer
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OCI
|
Other Comprehensive Income
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CLO
|
Collateralized Loan Obligation
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OREO
|
Other Real Estate Owned
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CRA
|
Community Reinvestment Act
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OTTI
|
Other-than-Temporary Impairment
|
CRE
|
Commercial Real Estate
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PCI
|
Purchased Credit Impaired
|
EPS
|
Earnings per share
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PPNR
|
Pre-Provision Net Revenue
|
EVE
|
Economic Value of Equity
|
ROU
|
Right of use
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Exchange Act
|
Securities Exchange Act of 1934, as amended
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SBA
|
Small Business Administration
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FASB
|
Financial Accounting Standards Board
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SBIC
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Small Business Investment Company
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FDIC
|
Federal Deposit Insurance Corporation
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SEC
|
Securities and Exchange Commission
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FHLB
|
Federal Home Loan Bank
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SERP
|
Supplemental Executive Retirement Plan
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FRB
|
Federal Reserve Bank
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TDR
|
Troubled Debt Restructuring
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FVO
|
Fair Value Option
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TEB
|
Tax Equivalent Basis
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GAAP
|
U.S. Generally Accepted Accounting Principles
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XBRL
|
eXtensible Business Reporting Language
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GSE
|
Government-Sponsored Enterprise
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Item 1.
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Financial Statements
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|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(Unaudited)
|
|
|
||||
|
|
(in thousands,
except shares and per share amounts) |
||||||
Assets:
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
160,329
|
|
|
$
|
180,053
|
|
Interest-bearing deposits in other financial institutions
|
|
335,282
|
|
|
318,519
|
|
||
Federal funds sold
|
|
290,000
|
|
|
—
|
|
||
Cash, cash equivalents, and restricted cash
|
|
785,611
|
|
|
498,572
|
|
||
Money market investments
|
|
—
|
|
|
7
|
|
||
Investment securities - AFS, at fair value; amortized cost of $3,265,546 at March 31, 2019 and $3,339,888 at December 31, 2018
|
|
3,244,247
|
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|
3,276,988
|
|
||
Investment securities - HTM, at amortized cost; fair value of $331,083 at March 31, 2019 and $298,648 at December 31, 2018
|
|
310,865
|
|
|
302,905
|
|
||
Investment securities - equity
|
|
118,005
|
|
|
115,061
|
|
||
Investments in restricted stock, at cost
|
|
66,287
|
|
|
66,132
|
|
||
Loans, net of deferred loan fees and costs
|
|
18,116,748
|
|
|
17,710,629
|
|
||
Less: allowance for credit losses
|
|
(154,987
|
)
|
|
(152,717
|
)
|
||
Net loans held for investment
|
|
17,961,761
|
|
|
17,557,912
|
|
||
Premises and equipment, net
|
|
119,827
|
|
|
119,474
|
|
||
Operating lease right of use asset
|
|
72,841
|
|
|
—
|
|
||
Other assets acquired through foreclosure, net
|
|
17,707
|
|
|
17,924
|
|
||
Bank owned life insurance
|
|
171,126
|
|
|
170,145
|
|
||
Goodwill
|
|
289,895
|
|
|
289,895
|
|
||
Other intangible assets, net
|
|
8,873
|
|
|
9,260
|
|
||
Deferred tax assets, net
|
|
22,309
|
|
|
31,990
|
|
||
Investments in LIHTC
|
|
331,972
|
|
|
342,381
|
|
||
Other assets
|
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271,520
|
|
|
310,840
|
|
||
Total assets
|
|
$
|
23,792,846
|
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|
$
|
23,109,486
|
|
Liabilities:
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Non-interest-bearing demand
|
|
$
|
7,679,361
|
|
|
$
|
7,456,141
|
|
Interest-bearing
|
|
12,529,379
|
|
|
11,721,306
|
|
||
Total deposits
|
|
20,208,740
|
|
|
19,177,447
|
|
||
Customer repurchase agreements
|
|
15,141
|
|
|
22,411
|
|
||
Other borrowings
|
|
—
|
|
|
491,000
|
|
||
Qualifying debt
|
|
373,996
|
|
|
360,458
|
|
||
Operating lease liability
|
|
77,750
|
|
|
—
|
|
||
Other liabilities
|
|
396,599
|
|
|
444,436
|
|
||
Total liabilities
|
|
21,072,226
|
|
|
20,495,752
|
|
||
Commitments and contingencies (Note 13)
|
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
|
||||
Common stock - par value $0.0001; 200,000,000 authorized; 106,449,184 shares issued at March 31, 2019 and 106,741,870 at December 31, 2018
|
|
10
|
|
|
10
|
|
||
Treasury stock, at cost (1,966,238 shares at March 31, 2019 and 1,793,231 shares at December 31, 2018)
|
|
(60,983
|
)
|
|
(53,083
|
)
|
||
Additional paid in capital
|
|
1,390,569
|
|
|
1,417,724
|
|
||
Accumulated other comprehensive (loss)
|
|
(8,191
|
)
|
|
(33,622
|
)
|
||
Retained earnings
|
|
1,399,215
|
|
|
1,282,705
|
|
||
Total stockholders’ equity
|
|
2,720,620
|
|
|
2,613,734
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
23,792,846
|
|
|
$
|
23,109,486
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands, except per share amounts)
|
||||||
Interest income:
|
|
|
|
|
||||
Loans, including fees
|
|
$
|
258,818
|
|
|
$
|
205,959
|
|
Investment securities
|
|
28,178
|
|
|
25,772
|
|
||
Dividends
|
|
1,633
|
|
|
1,478
|
|
||
Other
|
|
2,539
|
|
|
1,488
|
|
||
Total interest income
|
|
291,168
|
|
|
234,697
|
|
||
Interest expense:
|
|
|
|
|
||||
Deposits
|
|
35,788
|
|
|
14,173
|
|
||
Other borrowings
|
|
1,277
|
|
|
1,326
|
|
||
Qualifying debt
|
|
6,105
|
|
|
4,969
|
|
||
Other
|
|
662
|
|
|
9
|
|
||
Total interest expense
|
|
43,832
|
|
|
20,477
|
|
||
Net interest income
|
|
247,336
|
|
|
214,220
|
|
||
Provision for credit losses
|
|
3,500
|
|
|
6,000
|
|
||
Net interest income after provision for credit losses
|
|
243,836
|
|
|
208,220
|
|
||
Non-interest income:
|
|
|
|
|
||||
Service charges and fees
|
|
5,412
|
|
|
5,745
|
|
||
Income from equity investments
|
|
2,009
|
|
|
1,460
|
|
||
Card income
|
|
1,841
|
|
|
1,972
|
|
||
Foreign currency income
|
|
1,095
|
|
|
1,202
|
|
||
Income from bank owned life insurance
|
|
981
|
|
|
928
|
|
||
Lending related income and gains (losses) on sale of loans, net
|
|
251
|
|
|
978
|
|
||
Unrealized gains (losses) on assets measured at fair value, net
|
|
2,834
|
|
|
(1,074
|
)
|
||
Other income
|
|
987
|
|
|
432
|
|
||
Total non-interest income
|
|
15,410
|
|
|
11,643
|
|
||
Non-interest expense:
|
|
|
|
|
||||
Salaries and employee benefits
|
|
68,556
|
|
|
62,133
|
|
||
Occupancy
|
|
8,227
|
|
|
6,864
|
|
||
Legal, professional, and directors' fees
|
|
7,532
|
|
|
6,003
|
|
||
Data processing
|
|
6,332
|
|
|
5,207
|
|
||
Deposit costs
|
|
5,724
|
|
|
2,926
|
|
||
Insurance
|
|
2,809
|
|
|
3,869
|
|
||
Business development
|
|
2,085
|
|
|
1,728
|
|
||
Loan and repossessed asset expenses
|
|
2,006
|
|
|
583
|
|
||
Marketing
|
|
741
|
|
|
596
|
|
||
Card expense
|
|
634
|
|
|
942
|
|
||
Intangible amortization
|
|
387
|
|
|
398
|
|
||
Net loss (gain) on sales / valuations of repossessed and other assets
|
|
97
|
|
|
(1,228
|
)
|
||
Other expense
|
|
7,784
|
|
|
8,128
|
|
||
Total non-interest expense
|
|
112,914
|
|
|
98,149
|
|
||
Income before provision for income taxes
|
|
146,332
|
|
|
121,714
|
|
||
Income tax expense
|
|
25,536
|
|
|
20,814
|
|
||
Net income
|
|
$
|
120,796
|
|
|
$
|
100,900
|
|
|
|
|
|
|
||||
Earnings per share:
|
|
|
|
|
||||
Basic
|
|
$
|
1.16
|
|
|
$
|
0.97
|
|
Diluted
|
|
1.16
|
|
|
0.96
|
|
||
Weighted average number of common shares outstanding:
|
|
|
|
|
||||
Basic
|
|
104,033
|
|
|
104,530
|
|
||
Diluted
|
|
104,475
|
|
|
105,324
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands)
|
||||||
Net income
|
|
$
|
120,796
|
|
|
$
|
100,900
|
|
Other comprehensive income (loss), net:
|
|
|
|
|
||||
Unrealized gain (loss) on AFS securities, net of tax effect of $(10,222) and $12,714, respectively
|
|
31,377
|
|
|
(38,914
|
)
|
||
Unrealized (loss) gain on SERP, net of tax effect of $6 and $2, respectively
|
|
(18
|
)
|
|
(11
|
)
|
||
Unrealized (loss) gain on junior subordinated debt, net of tax effect of $1,934 and $(478), respectively
|
|
(5,928
|
)
|
|
1,466
|
|
||
Net other comprehensive income (loss)
|
|
25,431
|
|
|
(37,459
|
)
|
||
Comprehensive income
|
|
$
|
146,227
|
|
|
$
|
63,441
|
|
|
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, 2017
|
105,487
|
|
|
$
|
10
|
|
|
$
|
1,424,540
|
|
|
$
|
(40,173
|
)
|
|
$
|
(3,145
|
)
|
|
$
|
848,466
|
|
|
$
|
2,229,698
|
|
Balance, January 1, 2018 (1)
|
105,487
|
|
|
10
|
|
|
1,424,540
|
|
|
(40,173
|
)
|
|
(4,203
|
)
|
|
849,524
|
|
|
2,229,698
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,900
|
|
|
100,900
|
|
||||||
Exercise of stock options
|
9
|
|
|
—
|
|
|
215
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
215
|
|
||||||
Restricted stock, performance stock units, and other grants, net
|
546
|
|
|
—
|
|
|
6,705
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,705
|
|
||||||
Restricted stock surrendered (2)
|
(181
|
)
|
|
—
|
|
|
—
|
|
|
(6,296
|
)
|
|
—
|
|
|
—
|
|
|
(6,296
|
)
|
||||||
Other comprehensive income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,459
|
)
|
|
—
|
|
|
(37,459
|
)
|
||||||
Balance, March 31, 2018
|
105,861
|
|
|
$
|
10
|
|
|
$
|
1,431,460
|
|
|
$
|
(46,469
|
)
|
|
$
|
(41,662
|
)
|
|
$
|
950,424
|
|
|
$
|
2,293,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2018
|
104,949
|
|
|
$
|
10
|
|
|
$
|
1,417,724
|
|
|
$
|
(53,083
|
)
|
|
$
|
(33,622
|
)
|
|
$
|
1,282,705
|
|
|
$
|
2,613,734
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120,796
|
|
|
120,796
|
|
||||||
Exercise of stock options
|
1
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||||
Restricted stock, performance stock unit, and other grants, net
|
647
|
|
|
—
|
|
|
6,472
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,472
|
|
||||||
Restricted stock surrendered (2)
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
(7,900
|
)
|
|
—
|
|
|
—
|
|
|
(7,900
|
)
|
||||||
Stock repurchase
|
(941
|
)
|
|
—
|
|
|
(33,663
|
)
|
|
—
|
|
|
—
|
|
|
(4,286
|
)
|
|
(37,949
|
)
|
||||||
Other comprehensive income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,431
|
|
|
—
|
|
|
25,431
|
|
||||||
Balance, March 31, 2019
|
104,483
|
|
|
$
|
10
|
|
|
$
|
1,390,569
|
|
|
$
|
(60,983
|
)
|
|
$
|
(8,191
|
)
|
|
$
|
1,399,215
|
|
|
$
|
2,720,620
|
|
(1)
|
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.
|
(2)
|
Share amounts represent Treasury Shares, see "
Note 1. Summary of Significant Accounting Policies
" for further discussion.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
120,796
|
|
|
$
|
100,900
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
||||
Provision for credit losses
|
|
3,500
|
|
|
6,000
|
|
||
Depreciation and amortization
|
|
4,209
|
|
|
3,407
|
|
||
Stock-based compensation
|
|
6,472
|
|
|
6,705
|
|
||
Deferred income taxes
|
|
1,398
|
|
|
(9,372
|
)
|
||
Amortization of net premiums for investment securities
|
|
3,004
|
|
|
3,920
|
|
||
Amortization of tax credit investments
|
|
10,145
|
|
|
8,128
|
|
||
Amortization of operating lease right of use asset
|
|
2,601
|
|
|
—
|
|
||
Accretion of fair market value adjustments on loans acquired from business combinations
|
|
(2,817
|
)
|
|
(5,738
|
)
|
||
Accretion and amortization of fair market value adjustments on other assets and liabilities acquired from business combinations
|
|
463
|
|
|
475
|
|
||
Income from bank owned life insurance
|
|
(981
|
)
|
|
(928
|
)
|
||
Losses / (Gains) on:
|
|
|
|
|
||||
Assets measured at fair value, net
|
|
(2,834
|
)
|
|
1,074
|
|
||
Sale of loans
|
|
408
|
|
|
(678
|
)
|
||
Other assets acquired through foreclosure, net
|
|
—
|
|
|
(1,242
|
)
|
||
Valuation adjustments of other repossessed assets, net
|
|
99
|
|
|
47
|
|
||
Sale of premises, equipment, and other assets, net
|
|
(2
|
)
|
|
(33
|
)
|
||
Changes in:
|
|
|
|
|
||||
Other assets
|
|
(33,071
|
)
|
|
5,773
|
|
||
Other liabilities
|
|
37,924
|
|
|
(30,122
|
)
|
||
Net cash provided by operating activities
|
|
$
|
151,314
|
|
|
$
|
88,316
|
|
Cash flows from investing activities:
|
|
|
|
|
||||
Investment securities - AFS
|
|
|
|
|
||||
Purchases
|
|
(26,342
|
)
|
|
(67,949
|
)
|
||
Principal pay downs and maturities
|
|
97,732
|
|
|
105,242
|
|
||
Investment securities - HTM
|
|
|
|
|
||||
Purchases
|
|
(10,825
|
)
|
|
(7,800
|
)
|
||
Principal pay downs and maturities
|
|
2,868
|
|
|
243
|
|
||
Equity securities carried at fair value
|
|
|
|
|
||||
Reinvestment of dividends
|
|
(151
|
)
|
|
—
|
|
||
Purchase of investment tax credits
|
|
(24,400
|
)
|
|
(13,376
|
)
|
||
Purchase of SBIC investments
|
|
(1,570
|
)
|
|
(263
|
)
|
||
Sale (purchase) of money market investments, net
|
|
7
|
|
|
(5
|
)
|
||
Proceeds from bank owned life insurance
|
|
—
|
|
|
72
|
|
||
(Purchase) liquidation of restricted stock, net
|
|
(155
|
)
|
|
(734
|
)
|
||
Loan fundings and principal collections, net
|
|
(385,497
|
)
|
|
(367,437
|
)
|
||
Purchase of premises, equipment, and other assets, net
|
|
(3,152
|
)
|
|
(576
|
)
|
||
Proceeds from sale of other real estate owned and repossessed assets, net
|
|
—
|
|
|
5,285
|
|
||
Net cash used in investing activities
|
|
$
|
(351,485
|
)
|
|
$
|
(347,298
|
)
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
||||
Net increase (decrease) in deposits
|
|
$
|
1,031,293
|
|
|
$
|
382,006
|
|
Net increase (decrease) in borrowings
|
|
(498,270
|
)
|
|
(94,340
|
)
|
||
Proceeds from exercise of common stock options
|
|
36
|
|
|
215
|
|
||
Cash paid for tax withholding on vested restricted stock
|
|
(7,900
|
)
|
|
(6,296
|
)
|
||
Common stock repurchases
|
|
(37,949
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
|
$
|
487,210
|
|
|
$
|
281,585
|
|
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
|
287,039
|
|
|
22,603
|
|
||
Cash, cash equivalents, and restricted cash at beginning of period
|
|
498,572
|
|
|
416,768
|
|
||
Cash, cash equivalents, and restricted cash at end of period
|
|
$
|
785,611
|
|
|
$
|
439,371
|
|
Supplemental disclosure:
|
|
|
|
|
||||
Cash paid (received) during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
43,832
|
|
|
$
|
25,303
|
|
Income taxes, net of refunds
|
|
(34,619
|
)
|
|
9,881
|
|
||
Non-cash operating, investing, and financing activity:
|
|
|
|
|
||||
Transfers to other assets acquired through foreclosure, net
|
|
—
|
|
|
5,744
|
|
||
Unfunded commitments originated
|
|
1,735
|
|
|
30,000
|
|
||
Change in unrealized gain (loss) on AFS securities, net of tax
|
|
31,377
|
|
|
(38,914
|
)
|
||
Change in unrealized (loss) gain on junior subordinated debt, net of tax
|
|
(5,928
|
)
|
|
1,466
|
|
||
Net increase (decrease) in unfunded obligations
|
|
12,787
|
|
|
120,512
|
|
•
|
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.
|
|
|
March 31, 2019
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized (Losses)
|
|
Fair Value
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Held-to-maturity debt securities
|
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
|
$
|
310,865
|
|
|
$
|
20,218
|
|
|
$
|
—
|
|
|
$
|
331,083
|
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
||||||||
CDO
|
|
$
|
50
|
|
|
$
|
14,976
|
|
|
$
|
—
|
|
|
$
|
15,026
|
|
Commercial MBS issued by GSEs
|
|
104,227
|
|
|
104
|
|
|
(5,232
|
)
|
|
99,099
|
|
||||
Corporate debt securities
|
|
105,026
|
|
|
116
|
|
|
(8,100
|
)
|
|
97,042
|
|
||||
Private label residential MBS
|
|
946,757
|
|
|
2,861
|
|
|
(14,271
|
)
|
|
935,347
|
|
||||
Residential MBS issued by GSEs
|
|
1,509,590
|
|
|
2,408
|
|
|
(19,762
|
)
|
|
1,492,236
|
|
||||
Tax-exempt
|
|
526,899
|
|
|
11,666
|
|
|
(1,575
|
)
|
|
536,990
|
|
||||
Trust preferred securities
|
|
32,000
|
|
|
—
|
|
|
(3,383
|
)
|
|
28,617
|
|
||||
U.S. government sponsored agency securities
|
|
40,000
|
|
|
—
|
|
|
(1,099
|
)
|
|
38,901
|
|
||||
U.S. treasury securities
|
|
997
|
|
|
—
|
|
|
(8
|
)
|
|
989
|
|
||||
Total AFS debt securities
|
|
$
|
3,265,546
|
|
|
$
|
32,131
|
|
|
$
|
(53,430
|
)
|
|
$
|
3,244,247
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
|
|
|
|
|
|
|
|
||||||||
CRA investments
|
|
$
|
52,361
|
|
|
$
|
—
|
|
|
$
|
(747
|
)
|
|
$
|
51,614
|
|
Preferred stock
|
|
65,913
|
|
|
954
|
|
|
(476
|
)
|
|
66,391
|
|
||||
Total equity securities
|
|
$
|
118,274
|
|
|
$
|
954
|
|
|
$
|
(1,223
|
)
|
|
$
|
118,005
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized (Losses)
|
|
Fair Value
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Held-to-maturity debt securities
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
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)
|
||||||||||||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial MBS issued by GSEs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,232
|
|
|
$
|
97,264
|
|
|
$
|
5,232
|
|
|
$
|
97,264
|
|
Corporate debt securities
|
—
|
|
|
—
|
|
|
8,100
|
|
|
91,900
|
|
|
8,100
|
|
|
91,900
|
|
||||||
Private label residential MBS
|
—
|
|
|
—
|
|
|
14,271
|
|
|
703,525
|
|
|
14,271
|
|
|
703,525
|
|
||||||
Residential MBS issued by GSEs
|
2
|
|
|
265
|
|
|
19,760
|
|
|
1,184,558
|
|
|
19,762
|
|
|
1,184,823
|
|
||||||
Tax-exempt
|
—
|
|
|
—
|
|
|
1,575
|
|
|
80,676
|
|
|
1,575
|
|
|
80,676
|
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
3,383
|
|
|
28,617
|
|
|
3,383
|
|
|
28,617
|
|
||||||
U.S. government sponsored agency securities
|
—
|
|
|
—
|
|
|
1,099
|
|
|
33,901
|
|
|
1,099
|
|
|
33,901
|
|
||||||
U.S. treasury securities
|
—
|
|
|
—
|
|
|
8
|
|
|
989
|
|
|
8
|
|
|
989
|
|
||||||
Total AFS securities
|
$
|
2
|
|
|
$
|
265
|
|
|
$
|
53,428
|
|
|
$
|
2,221,430
|
|
|
$
|
53,430
|
|
|
$
|
2,221,695
|
|
|
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 debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
March 31, 2019
|
||||||
|
|
Amortized Cost
|
|
Estimated Fair Value
|
||||
|
|
(in thousands)
|
||||||
Held-to-maturity
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
10,100
|
|
|
$
|
10,147
|
|
After five years through ten years
|
|
14,386
|
|
|
14,984
|
|
||
After ten years
|
|
286,379
|
|
|
305,952
|
|
||
Total HTM securities
|
|
$
|
310,865
|
|
|
$
|
331,083
|
|
|
|
|
|
|
||||
Available-for-sale
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
2,296
|
|
|
$
|
2,313
|
|
After one year through five years
|
|
12,036
|
|
|
12,206
|
|
||
After five years through ten years
|
|
211,149
|
|
|
203,258
|
|
||
After ten years
|
|
479,491
|
|
|
499,788
|
|
||
Mortgage-backed securities
|
|
2,560,574
|
|
|
2,526,682
|
|
||
Total AFS securities
|
|
$
|
3,265,546
|
|
|
$
|
3,244,247
|
|
|
|
March 31, 2019
|
||||||||||||||||||||||||||||||
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
310,865
|
|
|
$
|
310,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CDO
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,026
|
|
|
$
|
—
|
|
|
$
|
15,026
|
|
Commercial MBS issued by GSEs
|
|
—
|
|
|
99,099
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99,099
|
|
||||||||
Corporate debt securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,300
|
|
|
32,742
|
|
|
—
|
|
|
—
|
|
|
97,042
|
|
||||||||
Private label residential MBS
|
|
911,689
|
|
|
—
|
|
|
21,079
|
|
|
297
|
|
|
898
|
|
|
1,384
|
|
|
—
|
|
|
935,347
|
|
||||||||
Residential MBS issued by GSEs
|
|
—
|
|
|
1,492,236
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,492,236
|
|
||||||||
Tax-exempt
|
|
68,227
|
|
|
8,875
|
|
|
294,830
|
|
|
163,391
|
|
|
—
|
|
|
—
|
|
|
1,667
|
|
|
536,990
|
|
||||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,617
|
|
|
—
|
|
|
—
|
|
|
28,617
|
|
||||||||
U.S. government sponsored agency securities
|
|
—
|
|
|
38,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,901
|
|
||||||||
U.S. treasury securities
|
|
—
|
|
|
989
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
989
|
|
||||||||
Total AFS securities
|
|
$
|
979,916
|
|
|
$
|
1,640,100
|
|
|
$
|
315,909
|
|
|
$
|
227,988
|
|
|
$
|
62,257
|
|
|
$
|
16,410
|
|
|
$
|
1,667
|
|
|
$
|
3,244,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CRA investments
|
|
$
|
—
|
|
|
$
|
25,375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,239
|
|
|
$
|
51,614
|
|
Preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,931
|
|
|
3,925
|
|
|
14,535
|
|
|
66,391
|
|
||||||||
Total equity securities
|
|
$
|
—
|
|
|
$
|
25,375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,931
|
|
|
$
|
3,925
|
|
|
$
|
40,774
|
|
|
$
|
118,005
|
|
|
|
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
|
|
$
|
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
|
|
$
|
—
|
|
|
$
|
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.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Commercial and industrial
|
|
$
|
7,723,695
|
|
|
$
|
7,762,642
|
|
Commercial real estate - non-owner occupied
|
|
4,304,261
|
|
|
4,213,428
|
|
||
Commercial real estate - owner occupied
|
|
2,285,340
|
|
|
2,325,380
|
|
||
Construction and land development
|
|
2,283,527
|
|
|
2,134,753
|
|
||
Residential real estate
|
|
1,461,561
|
|
|
1,204,355
|
|
||
Consumer
|
|
58,364
|
|
|
70,071
|
|
||
Loans, net of deferred loan fees and costs
|
|
18,116,748
|
|
|
17,710,629
|
|
||
Allowance for credit losses
|
|
(154,987
|
)
|
|
(152,717
|
)
|
||
Total loans HFI
|
|
$
|
17,961,761
|
|
|
$
|
17,557,912
|
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
|
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
|
|
$
|
7,711,923
|
|
|
$
|
193
|
|
|
$
|
10,638
|
|
|
$
|
941
|
|
|
$
|
11,772
|
|
|
$
|
7,723,695
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
2,281,389
|
|
|
2,630
|
|
|
1,321
|
|
|
—
|
|
|
3,951
|
|
|
2,285,340
|
|
||||||
Non-owner occupied
|
|
4,143,704
|
|
|
984
|
|
|
—
|
|
|
—
|
|
|
984
|
|
|
4,144,688
|
|
||||||
Multi-family
|
|
159,573
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
159,573
|
|
||||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
1,497,960
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,497,960
|
|
||||||
Land
|
|
784,146
|
|
|
945
|
|
|
—
|
|
|
476
|
|
|
1,421
|
|
|
785,567
|
|
||||||
Residential real estate
|
|
1,439,763
|
|
|
13,660
|
|
|
2,736
|
|
|
5,402
|
|
|
21,798
|
|
|
1,461,561
|
|
||||||
Consumer
|
|
58,248
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
116
|
|
|
58,364
|
|
||||||
Total loans
|
|
$
|
18,076,706
|
|
|
$
|
18,412
|
|
|
$
|
14,695
|
|
|
$
|
6,935
|
|
|
$
|
40,042
|
|
|
$
|
18,116,748
|
|
|
|
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
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
|
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
|
|
$
|
19,438
|
|
|
$
|
11,636
|
|
|
$
|
31,074
|
|
|
$
|
—
|
|
|
$
|
7,639
|
|
|
$
|
7,451
|
|
|
$
|
15,090
|
|
|
$
|
—
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Owner occupied
|
|
420
|
|
|
—
|
|
|
420
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
594
|
|
||||||||
Non-owner occupied
|
|
—
|
|
|
580
|
|
|
580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
3,307
|
|
|
—
|
|
|
3,307
|
|
|
—
|
|
|
—
|
|
|
476
|
|
|
476
|
|
|
—
|
|
||||||||
Land
|
|
—
|
|
|
476
|
|
|
476
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Residential real estate
|
|
1,168
|
|
|
6,746
|
|
|
7,914
|
|
|
—
|
|
|
552
|
|
|
11,387
|
|
|
11,939
|
|
|
—
|
|
||||||||
Consumer
|
|
—
|
|
|
116
|
|
|
116
|
|
|
—
|
|
|
—
|
|
|
241
|
|
|
241
|
|
|
—
|
|
||||||||
Total
|
|
$
|
24,333
|
|
|
$
|
19,554
|
|
|
$
|
43,887
|
|
|
$
|
—
|
|
|
$
|
8,191
|
|
|
$
|
19,555
|
|
|
$
|
27,746
|
|
|
$
|
594
|
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
|
$
|
7,548,610
|
|
|
$
|
70,708
|
|
|
$
|
103,828
|
|
|
$
|
549
|
|
|
$
|
—
|
|
|
$
|
7,723,695
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
2,206,311
|
|
|
23,044
|
|
|
55,985
|
|
|
—
|
|
|
—
|
|
|
2,285,340
|
|
||||||
Non-owner occupied
|
|
4,095,492
|
|
|
36,114
|
|
|
13,082
|
|
|
—
|
|
|
—
|
|
|
4,144,688
|
|
||||||
Multi-family
|
|
159,573
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
159,573
|
|
||||||
Construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
1,470,710
|
|
|
4,088
|
|
|
23,162
|
|
|
—
|
|
|
—
|
|
|
1,497,960
|
|
||||||
Land
|
|
785,070
|
|
|
—
|
|
|
497
|
|
|
—
|
|
|
—
|
|
|
785,567
|
|
||||||
Residential real estate
|
|
1,452,919
|
|
|
365
|
|
|
8,277
|
|
|
—
|
|
|
—
|
|
|
1,461,561
|
|
||||||
Consumer
|
|
58,208
|
|
|
29
|
|
|
127
|
|
|
—
|
|
|
—
|
|
|
58,364
|
|
||||||
Total
|
|
$
|
17,776,893
|
|
|
$
|
134,348
|
|
|
$
|
204,958
|
|
|
$
|
549
|
|
|
$
|
—
|
|
|
$
|
18,116,748
|
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Current (up to 29 days past due)
|
|
$
|
17,760,118
|
|
|
$
|
134,268
|
|
|
$
|
181,862
|
|
|
$
|
458
|
|
|
$
|
—
|
|
|
$
|
18,076,706
|
|
Past due 30 - 59 days
|
|
14,947
|
|
|
35
|
|
|
3,339
|
|
|
91
|
|
|
—
|
|
|
18,412
|
|
||||||
Past due 60 - 89 days
|
|
1,494
|
|
|
45
|
|
|
13,156
|
|
|
—
|
|
|
—
|
|
|
14,695
|
|
||||||
Past due 90 days or more
|
|
334
|
|
|
—
|
|
|
6,601
|
|
|
—
|
|
|
—
|
|
|
6,935
|
|
||||||
Total
|
|
$
|
17,776,893
|
|
|
$
|
134,348
|
|
|
$
|
204,958
|
|
|
$
|
549
|
|
|
$
|
—
|
|
|
$
|
18,116,748
|
|
|
|
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
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Impaired loans with a specific valuation allowance under ASC 310 (1)
|
|
$
|
5,244
|
|
|
$
|
986
|
|
Impaired loans without a specific valuation allowance under ASC 310 (2)
|
|
138,154
|
|
|
111,266
|
|
||
Total impaired loans
|
|
$
|
143,398
|
|
|
$
|
112,252
|
|
Valuation allowance related to impaired loans
|
|
$
|
(1,357
|
)
|
|
$
|
(681
|
)
|
(1)
|
Includes
no
TDR loans as of each of the periods ended at
March 31, 2019
and
December 31, 2018
.
|
(2)
|
Includes TDR loans of
$68.9 million
and
$44.5 million
at
March 31, 2019
and
December 31, 2018
, respectively.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Commercial and industrial
|
|
$
|
78,768
|
|
|
$
|
63,896
|
|
Commercial real estate
|
|
|
|
|
||||
Owner occupied
|
|
8,185
|
|
|
6,530
|
|
||
Non-owner occupied
|
|
12,268
|
|
|
12,407
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
Construction and land development
|
|
|
|
|
||||
Construction
|
|
20,329
|
|
|
—
|
|
||
Land
|
|
8,286
|
|
|
9,403
|
|
||
Residential real estate
|
|
15,417
|
|
|
19,744
|
|
||
Consumer
|
|
145
|
|
|
272
|
|
||
Total
|
|
$
|
143,398
|
|
|
$
|
112,252
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Average balance on impaired loans
|
$
|
126,613
|
|
|
$
|
93,081
|
|
Interest income recognized on impaired loans
|
1,493
|
|
|
873
|
|
||
Interest recognized on non-accrual loans, cash basis
|
309
|
|
|
438
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Commercial and industrial
|
$
|
67,144
|
|
|
$
|
36,849
|
|
Commercial real estate
|
|
|
|
||||
Owner occupied
|
7,569
|
|
|
9,043
|
|
||
Non-owner occupied
|
12,311
|
|
|
18,925
|
|
||
Multi-family
|
—
|
|
|
—
|
|
||
Construction and land development
|
|
|
|
||||
Construction
|
12,451
|
|
|
—
|
|
||
Land
|
8,632
|
|
|
10,281
|
|
||
Residential real estate
|
18,278
|
|
|
17,799
|
|
||
Consumer
|
228
|
|
|
184
|
|
||
Total
|
$
|
126,613
|
|
|
$
|
93,081
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Commercial and industrial
|
$
|
769
|
|
|
$
|
250
|
|
Commercial real estate
|
|
|
|
||||
Owner occupied
|
123
|
|
|
127
|
|
||
Non-owner occupied
|
187
|
|
|
262
|
|
||
Multi-family
|
—
|
|
|
—
|
|
||
Construction and land development
|
|
|
|
||||
Construction
|
180
|
|
|
—
|
|
||
Land
|
129
|
|
|
130
|
|
||
Residential real estate
|
105
|
|
|
104
|
|
||
Consumer
|
—
|
|
|
—
|
|
||
Total
|
$
|
1,493
|
|
|
$
|
873
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Non-accrual loans (1)
|
|
$
|
43,887
|
|
|
$
|
27,746
|
|
Loans past due 90 days or more on accrual status
|
|
—
|
|
|
594
|
|
||
Accruing troubled debt restructured loans
|
|
52,488
|
|
|
36,458
|
|
||
Total nonperforming loans
|
|
96,375
|
|
|
64,798
|
|
||
Other assets acquired through foreclosure, net
|
|
17,707
|
|
|
17,924
|
|
||
Total nonperforming assets
|
|
$
|
114,082
|
|
|
$
|
82,722
|
|
(1)
|
Includes non-accrual TDR loans of
$16.4 million
and
$8.0 million
at
March 31, 2019
and
December 31, 2018
, respectively.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands)
|
||||||
Balance, at beginning of period
|
|
$
|
3,768
|
|
|
$
|
9,324
|
|
Reclassifications from non-accretable to accretable yield (1)
|
|
—
|
|
|
683
|
|
||
Accretion to interest income
|
|
(161
|
)
|
|
(313
|
)
|
||
Reversal of fair value adjustments upon disposition of loans
|
|
(470
|
)
|
|
(1,586
|
)
|
||
Balance, at end of period
|
|
$
|
3,137
|
|
|
$
|
8,108
|
|
(1)
|
The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
|
Construction and Land Development
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Commercial and Industrial
|
|
Consumer
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
|
$
|
22,513
|
|
|
$
|
34,829
|
|
|
$
|
11,276
|
|
|
$
|
83,118
|
|
|
$
|
981
|
|
|
$
|
152,717
|
|
Charge-offs
|
|
—
|
|
|
—
|
|
|
188
|
|
|
2,124
|
|
|
1
|
|
|
2,313
|
|
||||||
Recoveries
|
|
(55
|
)
|
|
(453
|
)
|
|
(93
|
)
|
|
(477
|
)
|
|
(5
|
)
|
|
(1,083
|
)
|
||||||
Provision
|
|
3,515
|
|
|
2,585
|
|
|
1,825
|
|
|
(4,217
|
)
|
|
(208
|
)
|
|
3,500
|
|
||||||
Ending balance
|
|
$
|
26,083
|
|
|
$
|
37,867
|
|
|
$
|
13,006
|
|
|
$
|
77,254
|
|
|
$
|
777
|
|
|
$
|
154,987
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
|
$
|
19,511
|
|
|
$
|
31,495
|
|
|
$
|
5,478
|
|
|
$
|
82,793
|
|
|
$
|
773
|
|
|
$
|
140,050
|
|
Charge-offs
|
|
—
|
|
|
—
|
|
|
107
|
|
|
3,517
|
|
|
—
|
|
|
3,624
|
|
||||||
Recoveries
|
|
(1,388
|
)
|
|
(126
|
)
|
|
(250
|
)
|
|
(459
|
)
|
|
(10
|
)
|
|
(2,233
|
)
|
||||||
Provision
|
|
1,695
|
|
|
1,247
|
|
|
(102
|
)
|
|
3,143
|
|
|
17
|
|
|
6,000
|
|
||||||
Ending balance
|
|
$
|
22,594
|
|
|
$
|
32,868
|
|
|
$
|
5,519
|
|
|
$
|
82,878
|
|
|
$
|
800
|
|
|
$
|
144,659
|
|
|
|
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 March 31, 2019;
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recorded Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
590
|
|
|
$
|
1,347
|
|
|
$
|
3,307
|
|
|
$
|
—
|
|
|
$
|
5,244
|
|
Impaired loans with no allowance recorded
|
|
8,185
|
|
|
12,268
|
|
|
78,178
|
|
|
14,070
|
|
|
25,308
|
|
|
145
|
|
|
138,154
|
|
|||||||
Total loans individually evaluated for impairment
|
|
8,185
|
|
|
12,268
|
|
|
78,768
|
|
|
15,417
|
|
|
28,615
|
|
|
145
|
|
|
143,398
|
|
|||||||
Loans collectively evaluated for impairment
|
|
2,273,235
|
|
|
4,232,710
|
|
|
7,644,927
|
|
|
1,446,125
|
|
|
2,254,912
|
|
|
58,219
|
|
|
17,910,128
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
3,920
|
|
|
59,283
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
63,222
|
|
|||||||
Total recorded investment
|
|
$
|
2,285,340
|
|
|
$
|
4,304,261
|
|
|
$
|
7,723,695
|
|
|
$
|
1,461,561
|
|
|
$
|
2,283,527
|
|
|
$
|
58,364
|
|
|
$
|
18,116,748
|
|
Unpaid Principal Balance
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,463
|
|
|
$
|
1,347
|
|
|
$
|
3,307
|
|
|
$
|
—
|
|
|
$
|
6,117
|
|
Impaired loans with no allowance recorded
|
|
13,479
|
|
|
14,398
|
|
|
117,839
|
|
|
22,428
|
|
|
41,528
|
|
|
10,505
|
|
|
220,177
|
|
|||||||
Total loans individually evaluated for impairment
|
|
13,479
|
|
|
14,398
|
|
|
119,302
|
|
|
23,775
|
|
|
44,835
|
|
|
10,505
|
|
|
226,294
|
|
|||||||
Loans collectively evaluated for impairment
|
|
2,273,235
|
|
|
4,232,710
|
|
|
7,644,927
|
|
|
1,446,125
|
|
|
2,254,912
|
|
|
58,219
|
|
|
17,910,128
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
5,257
|
|
|
74,453
|
|
|
4,347
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
84,129
|
|
|||||||
Total unpaid principal balance
|
|
$
|
2,291,971
|
|
|
$
|
4,321,561
|
|
|
$
|
7,768,576
|
|
|
$
|
1,469,972
|
|
|
$
|
2,299,747
|
|
|
$
|
68,724
|
|
|
$
|
18,220,551
|
|
Related Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans with an allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
297
|
|
|
$
|
250
|
|
|
$
|
810
|
|
|
$
|
—
|
|
|
$
|
1,357
|
|
Impaired loans with no allowance recorded
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total loans individually evaluated for impairment
|
|
—
|
|
|
—
|
|
|
297
|
|
|
250
|
|
|
810
|
|
|
—
|
|
|
1,357
|
|
|||||||
Loans collectively evaluated for impairment
|
|
14,746
|
|
|
23,020
|
|
|
76,949
|
|
|
12,756
|
|
|
25,273
|
|
|
777
|
|
|
153,521
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
101
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|||||||
Total allowance for credit losses
|
|
$
|
14,746
|
|
|
$
|
23,121
|
|
|
$
|
77,254
|
|
|
$
|
13,006
|
|
|
$
|
26,083
|
|
|
$
|
777
|
|
|
$
|
154,987
|
|
|
|
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
|
|
|
|
(in thousands)
|
||
Cash paid for amounts included in the measurement of operating lease liabilities
|
|
$
|
3,039
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
|
32,905
|
|
|
|
Three Months Ended March 31,
|
||||||||||
|
|
2019
|
||||||||||
|
|
Gross Balance
|
|
Valuation Allowance
|
|
Net Balance
|
||||||
|
|
(in thousands)
|
||||||||||
Balance, beginning of period
|
|
$
|
19,979
|
|
|
$
|
(2,055
|
)
|
|
$
|
17,924
|
|
Charitable contribution
|
|
(232
|
)
|
|
114
|
|
|
(118
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
(99
|
)
|
|
(99
|
)
|
|||
Balance, end of period
|
|
$
|
19,747
|
|
|
$
|
(2,040
|
)
|
|
$
|
17,707
|
|
|
|
|
|
|
|
|
||||||
|
|
2018
|
||||||||||
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
|
|
(5,294
|
)
|
|
9
|
|
|
(5,285
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
(47
|
)
|
|
(47
|
)
|
|||
Gains (losses), net (1)
|
|
1,242
|
|
|
—
|
|
|
1,242
|
|
|||
Balance, end of period
|
|
$
|
34,244
|
|
|
$
|
(4,050
|
)
|
|
$
|
30,194
|
|
(1)
|
There were
zero
and
$1.0 million
in
net gains related to initial transfers to other assets during the three months ended
March 31, 2019
and
2018
, respectively.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Short-Term:
|
|
|
|
|
||||
Federal funds purchased
|
|
$
|
—
|
|
|
$
|
256,000
|
|
FHLB advances
|
|
—
|
|
|
235,000
|
|
||
Total short-term borrowings
|
|
$
|
—
|
|
|
$
|
491,000
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||
|
|
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, 2018
|
|
$
|
(47,591
|
)
|
|
$
|
392
|
|
|
$
|
13,433
|
|
|
$
|
144
|
|
|
$
|
(33,622
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
31,377
|
|
|
(18
|
)
|
|
(5,928
|
)
|
|
—
|
|
|
25,431
|
|
|||||
Amounts reclassified from AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net current-period other comprehensive income (loss)
|
|
31,377
|
|
|
(18
|
)
|
|
(5,928
|
)
|
|
—
|
|
|
25,431
|
|
|||||
Balance, March 31, 2019
|
|
$
|
(16,214
|
)
|
|
$
|
374
|
|
|
$
|
7,505
|
|
|
$
|
144
|
|
|
$
|
(8,191
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
|
(38,914
|
)
|
|
(11
|
)
|
|
1,466
|
|
|
—
|
|
|
(37,459
|
)
|
|||||
Amounts reclassified from AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net current-period other comprehensive (loss) income
|
|
(38,914
|
)
|
|
(11
|
)
|
|
1,466
|
|
|
—
|
|
|
(37,459
|
)
|
|||||
Balance, March 31, 2018
|
|
$
|
(51,470
|
)
|
|
$
|
458
|
|
|
$
|
9,206
|
|
|
$
|
144
|
|
|
$
|
(41,662
|
)
|
(1)
|
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.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Carrying Value of Hedged Assets/(Liabilities)
|
|
Cumulative Fair Value Hedging Adjustment (1)
|
|
Carrying Value of Hedged Assets/(Liabilities)
|
|
Cumulative Fair Value Hedging Adjustment (1)
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Loans - HFI, net of deferred loan fees and costs
|
|
$
|
656,346
|
|
|
$
|
33,123
|
|
|
$
|
650,428
|
|
|
$
|
23,039
|
|
Qualifying debt
|
|
(305,002
|
)
|
|
14,222
|
|
|
(299,401
|
)
|
|
19,691
|
|
(1)
|
Included in the carrying value of the hedged assets/(liabilities).
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||||||||||||||||||||||||||
|
|
|
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
|
$
|
961,493
|
|
|
$
|
987
|
|
|
$
|
48,332
|
|
|
$
|
965,705
|
|
|
$
|
2,162
|
|
|
$
|
44,892
|
|
|
$
|
989,379
|
|
|
$
|
3,533
|
|
|
$
|
42,789
|
|
Total
|
961,493
|
|
|
987
|
|
|
48,332
|
|
|
965,705
|
|
|
2,162
|
|
|
44,892
|
|
|
989,379
|
|
|
3,533
|
|
|
42,789
|
|
|||||||||
Netting adjustments (1)
|
—
|
|
|
987
|
|
|
987
|
|
|
—
|
|
|
2,162
|
|
|
2,162
|
|
|
—
|
|
|
3,493
|
|
|
3,493
|
|
|||||||||
Net derivatives in the balance sheet
|
$
|
961,493
|
|
|
$
|
—
|
|
|
$
|
47,345
|
|
|
$
|
965,705
|
|
|
$
|
—
|
|
|
$
|
42,730
|
|
|
$
|
989,379
|
|
|
$
|
40
|
|
|
$
|
39,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency contracts
|
$
|
42,113
|
|
|
$
|
715
|
|
|
$
|
511
|
|
|
$
|
49,690
|
|
|
$
|
454
|
|
|
$
|
201
|
|
|
$
|
90,855
|
|
|
$
|
684
|
|
|
$
|
394
|
|
Interest rate swaps
|
2,348
|
|
|
12
|
|
|
12
|
|
|
2,378
|
|
|
27
|
|
|
27
|
|
|
36,840
|
|
|
1,170
|
|
|
1,170
|
|
|||||||||
Total
|
$
|
44,461
|
|
|
$
|
727
|
|
|
$
|
523
|
|
|
$
|
52,068
|
|
|
$
|
481
|
|
|
$
|
228
|
|
|
$
|
127,695
|
|
|
$
|
1,854
|
|
|
$
|
1,564
|
|
(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.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||
|
|
(in thousands)
|
||||||||||
Largest gross exposure (derivative asset) to an individual counterparty
|
|
$
|
987
|
|
|
$
|
1,411
|
|
|
$
|
2,515
|
|
Collateral posted by this counterparty
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Derivative liability with this counterparty
|
|
32,250
|
|
|
23,906
|
|
|
20,624
|
|
|||
Collateral pledged to this counterparty
|
|
40,035
|
|
|
25,761
|
|
|
29,719
|
|
|||
Net exposure after netting adjustments and collateral
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands, except per share amounts)
|
||||||
Weighted average shares - basic
|
|
104,033
|
|
|
104,530
|
|
||
Dilutive effect of stock awards
|
|
442
|
|
|
794
|
|
||
Weighted average shares - diluted
|
|
104,475
|
|
|
105,324
|
|
||
Net income
|
|
$
|
120,796
|
|
|
$
|
100,900
|
|
Earnings per share - basic
|
|
1.16
|
|
|
0.97
|
|
||
Earnings per share - diluted
|
|
1.16
|
|
|
0.96
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Commitments to extend credit, including unsecured loan commitments of $864,740 at March 31, 2019 and $770,114 at December 31, 2018
|
|
$
|
8,197,452
|
|
|
$
|
7,556,741
|
|
Credit card commitments and financial guarantees
|
|
251,675
|
|
|
237,312
|
|
||
Standby letters of credit, including unsecured letters of credit of $16,336 at March 31, 2019 and $21,879 at December 31, 2018
|
|
262,320
|
|
|
390,161
|
|
||
Total
|
|
$
|
8,711,447
|
|
|
$
|
8,184,214
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands)
|
||||||
Unrealized gains/(losses)
|
|
$
|
(7,862
|
)
|
|
$
|
1,944
|
|
Changes included in OCI, net of tax
|
|
(5,928
|
)
|
|
1,466
|
|
(1)
|
Derivative assets and liabilities relate to interest rate swaps, see "
Note 10. Derivatives and Hedging Activities
." In addition, the carrying value of loans is decreased by
$33,123
and the net carrying value of subordinated debt is increased by
$14,222
as of
March 31, 2019
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.
|
(2)
|
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)
|
Derivative assets and liabilities relate to interest rate swaps, see "
Note 10. 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.
|
(2)
|
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
|
||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands)
|
||||||
Beginning balance
|
|
$
|
(48,684
|
)
|
|
$
|
(56,234
|
)
|
Change in fair value (1)
|
|
(7,862
|
)
|
|
1,944
|
|
||
Ending balance
|
|
$
|
(56,546
|
)
|
|
$
|
(54,290
|
)
|
(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
$(5.9) million
and
$1.5 million
for three months ended
March 31, 2019
and
2018
, respectively.
|
|
|
March 31, 2019
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Input Value
|
|||
|
|
(in thousands)
|
|
|
|
|
|
|
|||
Junior subordinated debt
|
|
$
|
56,546
|
|
|
Discounted cash flow
|
|
Implied credit rating of the Company
|
|
6.65
|
%
|
|
|
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
|
%
|
|
|
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 March 31, 2019;
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans with specific valuation allowance
|
|
$
|
3,887
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,887
|
|
Impaired loans without specific valuation allowance (1)
|
|
122,723
|
|
|
—
|
|
|
—
|
|
|
122,723
|
|
||||
Other assets acquired through foreclosure
|
|
17,707
|
|
|
—
|
|
|
—
|
|
|
17,707
|
|
||||
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
|
|
(1)
|
Net of loan balances with charge-offs of
$15.4
million and
$19.4
million as of
March 31, 2019
and
December 31, 2018
, respectively.
|
|
March 31, 2019
|
|
Valuation Technique(s)
|
|
Significant Unobservable Inputs
|
|
Range
|
||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
126,610
|
|
|
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
|
17,707
|
|
|
Collateral method
|
|
Third party appraisal
|
|
Costs to sell
|
|
4.0% to 10.0%
|
|
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%
|
|
|
March 31, 2019
|
||||||||||||||||||
|
|
Carrying Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds sold
|
|
$
|
290,000
|
|
|
$
|
—
|
|
|
$
|
290,000
|
|
|
$
|
—
|
|
|
$
|
290,000
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
HTM
|
|
310,865
|
|
|
—
|
|
|
331,083
|
|
|
—
|
|
|
331,083
|
|
|||||
AFS
|
|
3,244,247
|
|
|
5,142
|
|
|
3,239,105
|
|
|
—
|
|
|
3,244,247
|
|
|||||
Equity
|
|
118,005
|
|
|
118,005
|
|
|
—
|
|
|
—
|
|
|
118,005
|
|
|||||
Derivative assets
|
|
1,714
|
|
|
—
|
|
|
1,714
|
|
|
—
|
|
|
1,714
|
|
|||||
Loans, net
|
|
17,961,761
|
|
|
—
|
|
|
17,344,300
|
|
|
126,610
|
|
|
17,470,910
|
|
|||||
Accrued interest receivable
|
|
98,128
|
|
|
—
|
|
|
98,128
|
|
|
—
|
|
|
98,128
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
20,208,740
|
|
|
$
|
—
|
|
|
$
|
20,225,997
|
|
|
$
|
—
|
|
|
$
|
20,225,997
|
|
Customer repurchase agreements
|
|
15,141
|
|
|
—
|
|
|
15,141
|
|
|
—
|
|
|
15,141
|
|
|||||
Qualifying debt
|
|
373,996
|
|
|
—
|
|
|
332,988
|
|
|
67,730
|
|
|
400,718
|
|
|||||
Derivative liabilities
|
|
48,855
|
|
|
—
|
|
|
48,855
|
|
|
—
|
|
|
48,855
|
|
|||||
Accrued interest payable
|
|
15,853
|
|
|
—
|
|
|
15,853
|
|
|
—
|
|
|
15,853
|
|
|
|
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
|
|
|
|
|
|
Regional Segments
|
||||||||||||||||
Balance Sheet:
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
At March 31, 2019
|
|
(in millions)
|
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents, and investment securities
|
|
$
|
4,525.0
|
|
|
$
|
2.3
|
|
|
$
|
9.1
|
|
|
$
|
2.0
|
|
|
$
|
1.9
|
|
Loans, net of deferred loan fees and costs
|
|
18,116.7
|
|
|
3,653.9
|
|
|
2,069.4
|
|
|
2,249.8
|
|
|
1,197.2
|
|
|||||
Less: allowance for credit losses
|
|
(155.0
|
)
|
|
(31.9
|
)
|
|
(18.3
|
)
|
|
(20.1
|
)
|
|
(9.4
|
)
|
|||||
Total loans
|
|
17,961.7
|
|
|
3,622.0
|
|
|
2,051.1
|
|
|
2,229.7
|
|
|
1,187.8
|
|
|||||
Other assets acquired through foreclosure, net
|
|
17.7
|
|
|
0.7
|
|
|
13.9
|
|
|
—
|
|
|
—
|
|
|||||
Goodwill and other intangible assets, net
|
|
298.8
|
|
|
—
|
|
|
23.2
|
|
|
—
|
|
|
155.3
|
|
|||||
Other assets
|
|
989.6
|
|
|
47.6
|
|
|
58.4
|
|
|
15.2
|
|
|
24.3
|
|
|||||
Total assets
|
|
$
|
23,792.8
|
|
|
$
|
3,672.6
|
|
|
$
|
2,155.7
|
|
|
$
|
2,246.9
|
|
|
$
|
1,369.3
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
20,208.7
|
|
|
$
|
5,319.9
|
|
|
$
|
4,006.8
|
|
|
$
|
2,793.8
|
|
|
$
|
2,008.7
|
|
Borrowings and qualifying debt
|
|
374.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other liabilities
|
|
489.5
|
|
|
11.6
|
|
|
12.0
|
|
|
0.5
|
|
|
13.4
|
|
|||||
Total liabilities
|
|
21,072.2
|
|
|
5,331.5
|
|
|
4,018.8
|
|
|
2,794.3
|
|
|
2,022.1
|
|
|||||
Allocated equity:
|
|
2,720.6
|
|
|
447.7
|
|
|
283.1
|
|
|
260.5
|
|
|
298.9
|
|
|||||
Total liabilities and stockholders' equity
|
|
$
|
23,792.8
|
|
|
$
|
5,779.2
|
|
|
$
|
4,301.9
|
|
|
$
|
3,054.8
|
|
|
$
|
2,321.0
|
|
Excess funds provided (used)
|
|
—
|
|
|
2,106.6
|
|
|
2,146.2
|
|
|
807.9
|
|
|
951.7
|
|
Income Statement:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2019
|
|
(in thousands)
|
||||||||||||||||||
Net interest income
|
|
$
|
247,336
|
|
|
$
|
55,226
|
|
|
$
|
39,096
|
|
|
$
|
30,477
|
|
|
$
|
23,033
|
|
Provision for (recovery of) credit losses
|
|
3,500
|
|
|
161
|
|
|
533
|
|
|
733
|
|
|
(719
|
)
|
|||||
Net interest income after provision for credit losses
|
|
243,836
|
|
|
55,065
|
|
|
38,563
|
|
|
29,744
|
|
|
23,752
|
|
|||||
Non-interest income
|
|
15,410
|
|
|
1,521
|
|
|
2,573
|
|
|
1,001
|
|
|
2,220
|
|
|||||
Non-interest expense
|
|
(112,914
|
)
|
|
(22,248
|
)
|
|
(15,781
|
)
|
|
(14,583
|
)
|
|
(13,490
|
)
|
|||||
Income (loss) before income taxes
|
|
146,332
|
|
|
34,338
|
|
|
25,355
|
|
|
16,162
|
|
|
12,482
|
|
|||||
Income tax expense (benefit)
|
|
25,536
|
|
|
8,584
|
|
|
5,325
|
|
|
4,525
|
|
|
3,495
|
|
|||||
Net income
|
|
$
|
120,796
|
|
|
$
|
25,754
|
|
|
$
|
20,030
|
|
|
$
|
11,637
|
|
|
$
|
8,987
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
Balance Sheet:
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
At March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
(in millions)
|
||||||||||||||||||||||
Cash, cash equivalents, and investment securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,509.7
|
|
Loans, net of deferred loan fees and costs
|
|
209.4
|
|
|
1,561.7
|
|
|
1,057.3
|
|
|
1,564.9
|
|
|
4,549.0
|
|
|
4.1
|
|
||||||
Less: allowance for credit losses
|
|
(1.9
|
)
|
|
(14.8
|
)
|
|
(8.4
|
)
|
|
(9.5
|
)
|
|
(40.7
|
)
|
|
—
|
|
||||||
Total loans
|
|
207.5
|
|
|
1,546.9
|
|
|
1,048.9
|
|
|
1,555.4
|
|
|
4,508.3
|
|
|
4.1
|
|
||||||
Other assets acquired through foreclosure, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
||||||
Goodwill and other intangible assets, net
|
|
—
|
|
|
—
|
|
|
120.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
||||||
Other assets
|
|
0.9
|
|
|
12.5
|
|
|
6.4
|
|
|
7.7
|
|
|
58.8
|
|
|
757.8
|
|
||||||
Total assets
|
|
$
|
208.4
|
|
|
$
|
1,559.4
|
|
|
$
|
1,175.5
|
|
|
$
|
1,563.2
|
|
|
$
|
4,567.1
|
|
|
$
|
5,274.7
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits
|
|
$
|
2,963.0
|
|
|
$
|
—
|
|
|
$
|
2,404.7
|
|
|
$
|
—
|
|
|
$
|
5.3
|
|
|
$
|
706.5
|
|
Borrowings and qualifying debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
374.0
|
|
||||||
Other liabilities
|
|
2.0
|
|
|
34.0
|
|
|
—
|
|
|
(0.3
|
)
|
|
60.9
|
|
|
355.4
|
|
||||||
Total liabilities
|
|
2,965.0
|
|
|
34.0
|
|
|
2,404.7
|
|
|
(0.3
|
)
|
|
66.2
|
|
|
1,435.9
|
|
||||||
Allocated equity:
|
|
77.7
|
|
|
126.0
|
|
|
253.3
|
|
|
130.3
|
|
|
374.3
|
|
|
468.8
|
|
||||||
Total liabilities and stockholders' equity
|
|
$
|
3,042.7
|
|
|
$
|
160.0
|
|
|
$
|
2,658.0
|
|
|
$
|
130.0
|
|
|
$
|
440.5
|
|
|
$
|
1,904.7
|
|
Excess funds provided (used)
|
|
2,834.3
|
|
|
(1,399.4
|
)
|
|
1,482.5
|
|
|
(1,433.2
|
)
|
|
(4,126.6
|
)
|
|
(3,370.0
|
)
|
Income Statement:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2019
|
|
(in thousands)
|
||||||||||||||||||||||
Net interest income
|
|
$
|
20,641
|
|
|
$
|
3,423
|
|
|
$
|
29,403
|
|
|
$
|
12,944
|
|
|
$
|
25,691
|
|
|
$
|
7,402
|
|
Provision for (recovery of) credit losses
|
|
(27
|
)
|
|
(41
|
)
|
|
(917
|
)
|
|
799
|
|
|
2,978
|
|
|
—
|
|
||||||
Net interest income after provision for credit losses
|
|
20,668
|
|
|
3,464
|
|
|
30,320
|
|
|
12,145
|
|
|
22,713
|
|
|
7,402
|
|
||||||
Non-interest income
|
|
96
|
|
|
—
|
|
|
3,362
|
|
|
—
|
|
|
657
|
|
|
3,980
|
|
||||||
Non-interest expense
|
|
(8,460
|
)
|
|
(1,907
|
)
|
|
(11,889
|
)
|
|
(2,398
|
)
|
|
(9,336
|
)
|
|
(12,822
|
)
|
||||||
Income (loss) before income taxes
|
|
12,304
|
|
|
1,557
|
|
|
21,793
|
|
|
9,747
|
|
|
14,034
|
|
|
(1,440
|
)
|
||||||
Income tax expense (benefit)
|
|
2,830
|
|
|
358
|
|
|
5,012
|
|
|
2,242
|
|
|
3,228
|
|
|
(10,063
|
)
|
||||||
Net income
|
|
$
|
9,474
|
|
|
$
|
1,199
|
|
|
$
|
16,781
|
|
|
$
|
7,505
|
|
|
$
|
10,806
|
|
|
$
|
8,623
|
|
|
|
|
|
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
|
|
Income Statement:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2018
|
|
(in thousands)
|
||||||||||||||||||
Net interest income (expense)
|
|
$
|
214,220
|
|
|
$
|
54,555
|
|
|
$
|
36,690
|
|
|
$
|
27,802
|
|
|
$
|
22,255
|
|
Provision for (recovery of) credit losses
|
|
6,000
|
|
|
1,434
|
|
|
(1,723
|
)
|
|
729
|
|
|
1,548
|
|
|||||
Net interest income (expense) after provision for credit losses
|
|
208,220
|
|
|
53,121
|
|
|
38,413
|
|
|
27,073
|
|
|
20,707
|
|
|||||
Non-interest income
|
|
11,643
|
|
|
1,416
|
|
|
3,333
|
|
|
1,001
|
|
|
2,547
|
|
|||||
Non-interest expense
|
|
(98,149
|
)
|
|
(21,504
|
)
|
|
(14,084
|
)
|
|
(13,646
|
)
|
|
(12,503
|
)
|
|||||
Income (loss) before income taxes
|
|
121,714
|
|
|
33,033
|
|
|
27,662
|
|
|
14,428
|
|
|
10,751
|
|
|||||
Income tax expense (benefit)
|
|
20,814
|
|
|
8,321
|
|
|
5,903
|
|
|
4,135
|
|
|
3,098
|
|
|||||
Net income
|
|
$
|
100,900
|
|
|
$
|
24,712
|
|
|
$
|
21,759
|
|
|
$
|
10,293
|
|
|
$
|
7,653
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
At December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
)
|
Income Statement:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||||
Net interest income (expense)
|
|
$
|
15,359
|
|
|
$
|
3,746
|
|
|
$
|
22,821
|
|
|
$
|
14,185
|
|
|
$
|
18,811
|
|
|
$
|
(2,004
|
)
|
Provision for (recovery of) credit losses
|
|
47
|
|
|
(207
|
)
|
|
1,651
|
|
|
1,236
|
|
|
1,285
|
|
|
—
|
|
||||||
Net interest income (expense) after provision for credit losses
|
|
15,312
|
|
|
3,953
|
|
|
21,170
|
|
|
12,949
|
|
|
17,526
|
|
|
(2,004
|
)
|
||||||
Non-interest income
|
|
150
|
|
|
—
|
|
|
3,051
|
|
|
13
|
|
|
224
|
|
|
(92
|
)
|
||||||
Non-interest expense
|
|
(7,803
|
)
|
|
(2,174
|
)
|
|
(9,833
|
)
|
|
(2,206
|
)
|
|
(5,662
|
)
|
|
(8,734
|
)
|
||||||
Income (loss) before income taxes
|
|
7,659
|
|
|
1,779
|
|
|
14,388
|
|
|
10,756
|
|
|
12,088
|
|
|
(10,830
|
)
|
||||||
Income tax expense (benefit)
|
|
1,761
|
|
|
409
|
|
|
3,309
|
|
|
2,474
|
|
|
2,780
|
|
|
(11,376
|
)
|
||||||
Net income
|
|
$
|
5,898
|
|
|
$
|
1,370
|
|
|
$
|
11,079
|
|
|
$
|
8,282
|
|
|
$
|
9,308
|
|
|
$
|
546
|
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
Three Months Ended March 31, 2019
|
|
(in thousands)
|
||||||||||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges and fees
|
|
$
|
5,412
|
|
|
$
|
1,079
|
|
|
$
|
1,915
|
|
|
$
|
726
|
|
|
$
|
890
|
|
Debit and credit card interchange (1)
|
|
1,865
|
|
|
337
|
|
|
376
|
|
|
173
|
|
|
971
|
|
|||||
Success fees (2)
|
|
435
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other income
|
|
119
|
|
|
9
|
|
|
23
|
|
|
9
|
|
|
26
|
|
|||||
Total revenue from contracts with customers
|
|
$
|
7,831
|
|
|
$
|
1,425
|
|
|
$
|
2,314
|
|
|
$
|
908
|
|
|
$
|
1,887
|
|
Revenues outside the scope of ASC 606 (3)
|
|
7,579
|
|
|
96
|
|
|
259
|
|
|
93
|
|
|
333
|
|
|||||
Total non-interest income
|
|
$
|
15,410
|
|
|
$
|
1,521
|
|
|
$
|
2,573
|
|
|
$
|
1,001
|
|
|
$
|
2,220
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
Three Months Ended March 31, 2019
|
|
(in thousands)
|
||||||||||||||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
713
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Debit and credit card interchange (1)
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Success fees (2)
|
|
—
|
|
|
—
|
|
|
435
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
14
|
|
||||||
Total revenue from contracts with customers
|
|
$
|
96
|
|
|
$
|
—
|
|
|
$
|
1,148
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
14
|
|
Revenues outside the scope of ASC 606 (3)
|
|
—
|
|
|
—
|
|
|
2,214
|
|
|
—
|
|
|
618
|
|
|
3,966
|
|
||||||
Total non-interest income
|
|
$
|
96
|
|
|
$
|
—
|
|
|
$
|
3,362
|
|
|
$
|
—
|
|
|
$
|
657
|
|
|
$
|
3,980
|
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
Three Months Ended March 31, 2018
|
|
(in thousands)
|
||||||||||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges and fees
|
|
$
|
5,745
|
|
|
$
|
917
|
|
|
$
|
2,069
|
|
|
$
|
738
|
|
|
$
|
1,059
|
|
Debit and credit card interchange (1)
|
|
1,508
|
|
|
257
|
|
|
272
|
|
|
139
|
|
|
837
|
|
|||||
Success fees (2)
|
|
781
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Other income
|
|
235
|
|
|
61
|
|
|
69
|
|
|
27
|
|
|
73
|
|
|||||
Total revenue from contracts with customers
|
|
$
|
8,269
|
|
|
$
|
1,235
|
|
|
$
|
2,410
|
|
|
$
|
904
|
|
|
$
|
1,971
|
|
Revenues outside the scope of ASC 606 (3)
|
|
3,374
|
|
|
181
|
|
|
923
|
|
|
97
|
|
|
576
|
|
|||||
Total non-interest income
|
|
$
|
11,643
|
|
|
$
|
1,416
|
|
|
$
|
3,333
|
|
|
$
|
1,001
|
|
|
$
|
2,547
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
Three Months Ended March 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees
|
|
$
|
146
|
|
|
$
|
—
|
|
|
$
|
815
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Debit and credit card interchange (1)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Success fees (2)
|
|
—
|
|
|
—
|
|
|
779
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Total revenue from contracts with customers
|
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
1,594
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Revenues outside the scope of ASC 606 (3)
|
|
1
|
|
|
—
|
|
|
1,457
|
|
|
13
|
|
|
224
|
|
|
(98
|
)
|
||||||
Total non-interest income
|
|
$
|
150
|
|
|
$
|
—
|
|
|
$
|
3,051
|
|
|
$
|
13
|
|
|
$
|
224
|
|
|
$
|
(92
|
)
|
(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
."
|
Item 2.
|
Management's Discussions and Analysis of Financial Condition and Results of Operations.
|
•
|
Net income of
$120.8 million
, compared to
$100.9 million
for the
first
quarter
2018
|
•
|
Diluted earnings per share of
$1.16
, compared to
$0.96
per share for the
first
quarter
2018
|
•
|
Total loans of
$18.12 billion
, up
$406.1 million
from
December 31, 2018
|
•
|
Total deposits of
$20.21 billion
, up
$1.03 billion
from
December 31, 2018
|
•
|
Net interest margin of
4.71%
, compared to
4.66%
in the
first
quarter
2018
|
•
|
Net operating revenue of
$259.9 million
, an increase of
14.5%
, or
$33.0 million
, compared to the
first
quarter
2018
, and an increase in operating non-interest expenses of
13.5%
, or
$13.4 million
, compared to the
first
quarter
2018
1
|
•
|
Operating PPNR of
$147.1 million
,
up
15.3%
from
$127.6 million
in the
first
quarter
2018
1
|
•
|
Efficiency ratio of
42.0%
in the
first
quarter
2019
, compared to
42.4%
in the
first
quarter
2018
|
•
|
Operating efficiency ratio of
42.4%
in the
first
quarter
2019
, compared to
42.7%
in the
first
quarter
2018
1
|
•
|
Nonperforming assets (nonaccrual loans and repossessed assets) increased to
0.26%
of total assets, from
0.20%
at
December 31, 2018
|
•
|
Annualized net loan charge-offs to average loans outstanding of
0.03%
, compared to
0.04%
for the
first
quarter
2018
|
•
|
Tangible common equity ratio of
10.3%
, compared to
9.8%
at
March 31, 2018
1
|
•
|
Stockholders' equity of
$2.72 billion
,
an increase
of
$106.9 million
from
December 31, 2018
|
•
|
Book value per common share of
$26.04
,
an increase
of
20.2%
from
$21.67
at
March 31, 2018
|
•
|
Tangible book value per share, net of tax, of
$23.20
,
an increase
of
$4.34
from
$18.86
at
March 31, 2018
1
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands, except per share amounts)
|
||||||
Net income
|
|
$
|
120,796
|
|
|
$
|
100,900
|
|
Earnings per share - basic
|
|
1.16
|
|
|
0.97
|
|
||
Earnings per share - diluted
|
|
1.16
|
|
|
0.96
|
|
||
Return on average assets
|
|
2.12
|
%
|
|
2.02
|
%
|
||
Return on average tangible common equity (1)
|
|
20.49
|
|
|
20.74
|
|
||
Net interest margin
|
|
4.71
|
|
|
4.66
|
|
(1)
|
See Non-GAAP Financial Measures section beginning on page 62.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Total assets
|
|
$
|
23,792,846
|
|
|
$
|
23,109,486
|
|
Total loans, net of deferred loan fees and costs
|
|
18,116,748
|
|
|
17,710,629
|
|
||
Total deposits
|
|
20,208,740
|
|
|
19,177,447
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(dollars in thousands)
|
||||||
Non-accrual loans
|
|
$
|
43,887
|
|
|
$
|
27,746
|
|
Non-performing assets
|
|
114,082
|
|
|
82,722
|
|
||
Non-accrual loans to gross loans
|
|
0.24
|
%
|
|
0.16
|
%
|
||
Net charge-offs to average loans outstanding (1)
|
|
0.03
|
|
|
0.06
|
|
(1)
|
Annualized on an actual/actual basis for the three months ended
March 31, 2019
. Actual year-to-date for the year ended
December 31, 2018
.
|
|
|
Three Months Ended March 31,
|
|
Increase
|
||||||||
|
|
2019
|
|
2018
|
|
(Decrease)
|
||||||
|
|
(in thousands, except per share amounts)
|
||||||||||
Consolidated Income Statement Data:
|
||||||||||||
Interest income
|
|
$
|
291,168
|
|
|
$
|
234,697
|
|
|
$
|
56,471
|
|
Interest expense
|
|
43,832
|
|
|
20,477
|
|
|
23,355
|
|
|||
Net interest income
|
|
247,336
|
|
|
214,220
|
|
|
33,116
|
|
|||
Provision for credit losses
|
|
3,500
|
|
|
6,000
|
|
|
(2,500
|
)
|
|||
Net interest income after provision for credit losses
|
|
243,836
|
|
|
208,220
|
|
|
35,616
|
|
|||
Non-interest income
|
|
15,410
|
|
|
11,643
|
|
|
3,767
|
|
|||
Non-interest expense
|
|
112,914
|
|
|
98,149
|
|
|
14,765
|
|
|||
Income before provision for income taxes
|
|
146,332
|
|
|
121,714
|
|
|
24,618
|
|
|||
Income tax expense
|
|
25,536
|
|
|
20,814
|
|
|
4,722
|
|
|||
Net income
|
|
$
|
120,796
|
|
|
$
|
100,900
|
|
|
$
|
19,896
|
|
Earnings per share - basic
|
|
$
|
1.16
|
|
|
$
|
0.97
|
|
|
$
|
0.19
|
|
Earnings per share - diluted
|
|
$
|
1.16
|
|
|
$
|
0.96
|
|
|
$
|
0.20
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in thousands)
|
||||||
Total non-interest income
|
|
$
|
15,410
|
|
|
$
|
11,643
|
|
Less:
|
|
|
|
|
||||
Unrealized gains (losses) on assets measured at fair value, net (1)
|
|
2,834
|
|
|
(1,074
|
)
|
||
Total operating non-interest income
|
|
12,576
|
|
|
12,717
|
|
||
Plus: net interest income
|
|
247,336
|
|
|
214,220
|
|
||
Net operating revenue
|
|
$
|
259,912
|
|
|
$
|
226,937
|
|
Total non-interest expense
|
|
$
|
112,914
|
|
|
$
|
98,149
|
|
Less:
|
|
|
|
|
||||
Net loss (gain) on sales / valuations of repossessed and other assets (1)
|
|
97
|
|
|
(1,228
|
)
|
||
Total operating non-interest expense
|
|
$
|
112,817
|
|
|
$
|
99,377
|
|
Operating pre-provision net revenue (2)
|
|
$
|
147,095
|
|
|
$
|
127,560
|
|
Plus:
|
|
|
|
|
||||
Revenue adjustments
|
|
2,834
|
|
|
(1,074
|
)
|
||
Less:
|
|
|
|
|
||||
Provision for credit losses
|
|
3,500
|
|
|
6,000
|
|
||
Expense adjustments
|
|
97
|
|
|
(1,228
|
)
|
||
Income before provision for income taxes
|
|
146,332
|
|
|
121,714
|
|
||
Income tax expense
|
|
25,536
|
|
|
20,814
|
|
||
Net income
|
|
$
|
120,796
|
|
|
$
|
100,900
|
|
(1)
|
The operating PPNR non-GAAP performance metric is adjusted to exclude the effects of these non-operational items.
|
(2)
|
There were no adjustments made for non-recurring items during the
three
months ended
March 31, 2019
and
2018
.
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Total operating non-interest expense
|
$
|
112,817
|
|
|
$
|
99,377
|
|
|
|
|
|
||||
Divided by:
|
|
|
|
||||
Total net interest income
|
$
|
247,336
|
|
|
$
|
214,220
|
|
Plus:
|
|
|
|
||||
Tax equivalent interest adjustment
|
6,094
|
|
|
5,727
|
|
||
Operating non-interest income
|
12,576
|
|
|
12,717
|
|
||
Net operating revenue - TEB
|
$
|
266,006
|
|
|
$
|
232,664
|
|
|
|
|
|
||||
Operating efficiency ratio - TEB
|
42.4
|
%
|
|
42.7
|
%
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(dollars and shares in thousands)
|
||||||
Total stockholders' equity
|
$
|
2,720,620
|
|
|
$
|
2,613,734
|
|
Less: goodwill and intangible assets
|
298,768
|
|
|
299,155
|
|
||
Total tangible stockholders' equity
|
2,421,852
|
|
|
2,314,579
|
|
||
Plus: deferred tax - attributed to intangible assets
|
2,183
|
|
|
1,885
|
|
||
Total tangible common equity, net of tax
|
$
|
2,424,035
|
|
|
$
|
2,316,464
|
|
|
|
|
|
||||
Total assets
|
$
|
23,792,846
|
|
|
$
|
23,109,486
|
|
Less: goodwill and intangible assets, net
|
298,768
|
|
|
299,155
|
|
||
Tangible assets
|
23,494,078
|
|
|
22,810,331
|
|
||
Plus: deferred tax - attributed to intangible assets
|
2,183
|
|
|
1,885
|
|
||
Total tangible assets, net of tax
|
$
|
23,496,261
|
|
|
$
|
22,812,216
|
|
|
|
|
|
||||
Tangible common equity ratio
|
10.3
|
%
|
|
10.2
|
%
|
||
Common shares outstanding
|
104,483
|
|
|
104,949
|
|
||
Book value per share
|
$
|
26.04
|
|
|
$
|
24.90
|
|
Tangible book value per share, net of tax
|
23.20
|
|
|
22.07
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(dollars in thousands)
|
||||||
Common Equity Tier 1:
|
|
|
|
||||
Common Equity
|
$
|
2,720,620
|
|
|
$
|
2,613,734
|
|
Less:
|
|
|
|
||||
Non-qualifying goodwill and intangibles
|
296,496
|
|
|
296,769
|
|
||
Disallowed deferred tax asset
|
2,134
|
|
|
768
|
|
||
AOCI related adjustments
|
(15,695
|
)
|
|
(47,055
|
)
|
||
Unrealized gain on changes in fair value liabilities
|
7,490
|
|
|
13,432
|
|
||
Common Equity Tier 1
|
$
|
2,430,195
|
|
|
$
|
2,349,820
|
|
Divided by: Risk-weighted assets
|
$
|
22,610,882
|
|
|
$
|
21,983,976
|
|
Common Equity Tier 1 ratio
|
10.7
|
%
|
|
10.7
|
%
|
||
|
|
|
|
||||
Common Equity Tier 1
|
$
|
2,430,195
|
|
|
$
|
2,349,820
|
|
Plus:
|
|
|
|
||||
Trust preferred securities
|
81,500
|
|
|
81,500
|
|
||
Less:
|
|
|
|
||||
Disallowed deferred tax asset
|
—
|
|
|
—
|
|
||
Unrealized gain on changes in fair value liabilities
|
—
|
|
|
—
|
|
||
Tier 1 capital
|
$
|
2,511,695
|
|
|
$
|
2,431,320
|
|
Divided by: Tangible average assets
|
$
|
22,867,069
|
|
|
$
|
22,204,799
|
|
Tier 1 leverage ratio
|
11.0
|
%
|
|
10.9
|
%
|
||
|
|
|
|
||||
Total Capital:
|
|
|
|
||||
Tier 1 capital
|
$
|
2,511,695
|
|
|
$
|
2,431,320
|
|
Plus:
|
|
|
|
||||
Subordinated debt
|
304,903
|
|
|
305,131
|
|
||
Qualifying allowance for credit losses
|
154,987
|
|
|
152,717
|
|
||
Other
|
9,224
|
|
|
8,188
|
|
||
Less: Tier 2 qualifying capital deductions
|
—
|
|
|
—
|
|
||
Tier 2 capital
|
$
|
469,114
|
|
|
$
|
466,036
|
|
|
|
|
|
||||
Total capital
|
$
|
2,980,809
|
|
|
$
|
2,897,356
|
|
|
|
|
|
||||
Total capital ratio
|
13.2
|
%
|
|
13.2
|
%
|
||
|
|
|
|
||||
Classified assets to Tier 1 capital plus allowance for credit losses:
|
|
|
|
||||
Classified assets
|
$
|
238,241
|
|
|
$
|
242,101
|
|
Divided by:
|
|
|
|
||||
Tier 1 capital
|
2,511,695
|
|
|
2,431,320
|
|
||
Plus: Allowance for credit losses
|
154,987
|
|
|
152,717
|
|
||
Total Tier 1 capital plus allowance for credit losses
|
$
|
2,666,682
|
|
|
$
|
2,584,037
|
|
|
|
|
|
||||
Classified assets to Tier 1 capital plus allowance
|
8.9
|
%
|
|
9.4
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
|
|
Average
Yield / Cost |
|
Average
Balance |
|
Interest
|
|
Average
Yield / Cost |
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||
Interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
7,538,711
|
|
|
$
|
109,089
|
|
|
6.03
|
%
|
|
$
|
6,580,935
|
|
|
$
|
85,547
|
|
|
5.46
|
%
|
CRE - non-owner-occupied
|
|
4,211,088
|
|
|
62,441
|
|
|
6.03
|
|
|
3,920,777
|
|
|
56,285
|
|
|
5.84
|
|
||||
CRE - owner-occupied
|
|
2,327,495
|
|
|
30,084
|
|
|
5.35
|
|
|
2,241,787
|
|
|
28,551
|
|
|
5.28
|
|
||||
Construction and land development
|
|
2,178,312
|
|
|
39,704
|
|
|
7.41
|
|
|
1,789,356
|
|
|
29,619
|
|
|
6.72
|
|
||||
Residential real estate
|
|
1,391,109
|
|
|
16,567
|
|
|
4.83
|
|
|
425,267
|
|
|
5,280
|
|
|
5.04
|
|
||||
Consumer
|
|
62,367
|
|
|
933
|
|
|
6.07
|
|
|
47,935
|
|
|
677
|
|
|
5.73
|
|
||||
Total loans (1), (2), (3)
|
|
17,709,082
|
|
|
258,818
|
|
|
6.02
|
|
|
15,006,057
|
|
|
205,959
|
|
|
5.67
|
|
||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities - taxable
|
|
2,762,640
|
|
|
20,336
|
|
|
2.99
|
|
|
2,875,345
|
|
|
19,149
|
|
|
2.70
|
|
||||
Securities - tax-exempt
|
|
895,582
|
|
|
8,798
|
|
|
4.98
|
|
|
836,914
|
|
|
7,472
|
|
|
4.53
|
|
||||
Total securities (1)
|
|
3,658,222
|
|
|
29,134
|
|
|
3.47
|
|
|
3,712,259
|
|
|
26,621
|
|
|
3.11
|
|
||||
Other
|
|
450,837
|
|
|
3,216
|
|
|
2.89
|
|
|
425,667
|
|
|
2,117
|
|
|
2.02
|
|
||||
Total interest earning assets
|
|
21,818,141
|
|
|
291,168
|
|
|
5.53
|
|
|
19,143,983
|
|
|
234,697
|
|
|
5.09
|
|
||||
Non-interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
162,167
|
|
|
|
|
|
|
142,356
|
|
|
|
|
|
||||||||
Allowance for credit losses
|
|
(154,249
|
)
|
|
|
|
|
|
(141,030
|
)
|
|
|
|
|
||||||||
Bank owned life insurance
|
|
170,480
|
|
|
|
|
|
|
168,070
|
|
|
|
|
|
||||||||
Other assets
|
|
1,112,937
|
|
|
|
|
|
|
990,845
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
23,109,476
|
|
|
|
|
|
|
$
|
20,304,224
|
|
|
|
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing transaction accounts
|
|
$
|
2,495,848
|
|
|
$
|
5,583
|
|
|
0.91
|
%
|
|
$
|
1,654,720
|
|
|
$
|
1,380
|
|
|
0.34
|
%
|
Savings and money market accounts
|
|
7,446,639
|
|
|
22,007
|
|
|
1.20
|
|
|
6,226,611
|
|
|
8,915
|
|
|
0.58
|
|
||||
Time certificates of deposit
|
|
1,817,787
|
|
|
8,198
|
|
|
1.83
|
|
|
1,579,940
|
|
|
3,878
|
|
|
1.00
|
|
||||
Total interest-bearing deposits
|
|
11,760,274
|
|
|
35,788
|
|
|
1.23
|
|
|
9,461,271
|
|
|
14,173
|
|
|
0.61
|
|
||||
Short-term borrowings
|
|
315,755
|
|
|
1,939
|
|
|
2.49
|
|
|
351,616
|
|
|
1,335
|
|
|
1.54
|
|
||||
Qualifying debt
|
|
363,044
|
|
|
6,105
|
|
|
6.82
|
|
|
368,849
|
|
|
4,969
|
|
|
5.46
|
|
||||
Total interest-bearing liabilities
|
|
12,439,073
|
|
|
43,832
|
|
|
1.43
|
|
|
10,181,736
|
|
|
20,477
|
|
|
0.82
|
|
||||
Interest cost of funding earning assets
|
|
|
|
|
|
0.82
|
|
|
|
|
|
|
0.43
|
|
||||||||
Non-interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing demand deposits
|
|
7,555,584
|
|
|
|
|
|
|
7,510,614
|
|
|
|
|
|
||||||||
Other liabilities
|
|
424,998
|
|
|
|
|
|
|
338,530
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
2,689,821
|
|
|
|
|
|
|
2,273,344
|
|
|
|
|
|
||||||||
Total liabilities and stockholders' equity
|
|
$
|
23,109,476
|
|
|
|
|
|
|
$
|
20,304,224
|
|
|
|
|
|
||||||
Net interest income and margin (4)
|
|
|
|
$
|
247,336
|
|
|
4.71
|
%
|
|
|
|
$
|
214,220
|
|
|
4.66
|
%
|
(1)
|
Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was
$6.1 million
and
$5.7 million
for the three months ended
March 31, 2019
and
2018
, respectively.
|
(2)
|
Included in the yield computation are net loan fees of
$12.3 million
and accretion on acquired loans of
$2.8 million
for the three months ended
March 31, 2019
, compared to
$10.0 million
and
$5.7 million
for the three months ended
March 31, 2018
, respectively.
|
(3)
|
Includes non-accrual loans.
|
(4)
|
Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
|
|
|
Three Months Ended March 31,
|
||||||||||
|
|
2019 versus 2018
|
||||||||||
|
|
Increase (Decrease) Due to Changes in (1)
|
||||||||||
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
|
(in thousands)
|
||||||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans:
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
13,860
|
|
|
$
|
9,682
|
|
|
$
|
23,542
|
|
CRE - non-owner occupied
|
|
4,305
|
|
|
1,851
|
|
|
6,156
|
|
|||
CRE - owner-occupied
|
|
1,108
|
|
|
425
|
|
|
1,533
|
|
|||
Construction and land development
|
|
7,089
|
|
|
2,996
|
|
|
10,085
|
|
|||
Residential real estate
|
|
11,502
|
|
|
(215
|
)
|
|
11,287
|
|
|||
Consumer
|
|
216
|
|
|
40
|
|
|
256
|
|
|||
Total loans
|
|
38,080
|
|
|
14,779
|
|
|
52,859
|
|
|||
Securities:
|
|
|
|
|
|
|
||||||
Securities - taxable
|
|
(830
|
)
|
|
2,017
|
|
|
1,187
|
|
|||
Securities - tax-exempt
|
|
576
|
|
|
750
|
|
|
1,326
|
|
|||
Total securities
|
|
(254
|
)
|
|
2,767
|
|
|
2,513
|
|
|||
Other
|
|
180
|
|
|
919
|
|
|
1,099
|
|
|||
Total interest income
|
|
38,006
|
|
|
18,465
|
|
|
56,471
|
|
|||
|
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
||||||
Interest-bearing transaction accounts
|
|
$
|
1,882
|
|
|
$
|
2,321
|
|
|
$
|
4,203
|
|
Savings and money market
|
|
3,606
|
|
|
9,486
|
|
|
13,092
|
|
|||
Time certificates of deposit
|
|
1,073
|
|
|
3,247
|
|
|
4,320
|
|
|||
Short-term borrowings
|
|
(220
|
)
|
|
824
|
|
|
604
|
|
|||
Qualifying debt
|
|
(98
|
)
|
|
1,234
|
|
|
1,136
|
|
|||
Total interest expense
|
|
6,243
|
|
|
17,112
|
|
|
23,355
|
|
|||
|
|
|
|
|
|
|
||||||
Net increase
|
|
$
|
31,763
|
|
|
$
|
1,353
|
|
|
$
|
33,116
|
|
(1)
|
Changes attributable to both volume and rate are designated as volume changes.
|
|
|
Three Months Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
Increase (Decrease)
|
||||||
|
|
(in thousands)
|
||||||||||
Service charges and fees
|
|
$
|
5,412
|
|
|
$
|
5,745
|
|
|
$
|
(333
|
)
|
Income from equity investments
|
|
2,009
|
|
|
1,460
|
|
|
549
|
|
|||
Card income
|
|
1,841
|
|
|
1,972
|
|
|
(131
|
)
|
|||
Foreign currency income
|
|
1,095
|
|
|
1,202
|
|
|
(107
|
)
|
|||
Income from bank owned life insurance
|
|
981
|
|
|
928
|
|
|
53
|
|
|||
Lending related income and gains (losses) on sale of loans, net
|
|
251
|
|
|
978
|
|
|
(727
|
)
|
|||
Unrealized gains (losses) on assets measured at fair value, net
|
|
2,834
|
|
|
(1,074
|
)
|
|
3,908
|
|
|||
Other income
|
|
987
|
|
|
432
|
|
|
555
|
|
|||
Total non-interest income
|
|
$
|
15,410
|
|
|
$
|
11,643
|
|
|
$
|
3,767
|
|
|
Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease)
|
||||||
|
(in thousands)
|
||||||||||
Salaries and employee benefits
|
$
|
68,556
|
|
|
$
|
62,133
|
|
|
$
|
6,423
|
|
Occupancy
|
8,227
|
|
|
6,864
|
|
|
1,363
|
|
|||
Legal, professional, and directors' fees
|
7,532
|
|
|
6,003
|
|
|
1,529
|
|
|||
Data processing
|
6,332
|
|
|
5,207
|
|
|
1,125
|
|
|||
Deposit costs
|
5,724
|
|
|
2,926
|
|
|
2,798
|
|
|||
Insurance
|
2,809
|
|
|
3,869
|
|
|
(1,060
|
)
|
|||
Business development
|
2,085
|
|
|
1,728
|
|
|
357
|
|
|||
Loan and repossessed asset expenses
|
2,006
|
|
|
583
|
|
|
1,423
|
|
|||
Marketing
|
741
|
|
|
596
|
|
|
145
|
|
|||
Card expense
|
634
|
|
|
942
|
|
|
(308
|
)
|
|||
Intangible amortization
|
387
|
|
|
398
|
|
|
(11
|
)
|
|||
Net loss (gain) on sales / valuations of repossessed and other assets
|
97
|
|
|
(1,228
|
)
|
|
1,325
|
|
|||
Other expense
|
7,784
|
|
|
8,128
|
|
|
(344
|
)
|
|||
Total non-interest expense
|
$
|
112,914
|
|
|
$
|
98,149
|
|
|
$
|
14,765
|
|
|
|
|
|
Regional Segments
|
||||||||||||||||
|
|
Consolidated Company
|
|
Arizona
|
|
Nevada
|
|
Southern California
|
|
Northern California
|
||||||||||
At March 31, 2019
|
|
(in millions)
|
||||||||||||||||||
Loans, net of deferred loan fees and costs
|
|
$
|
18,116.7
|
|
|
$
|
3,653.9
|
|
|
$
|
2,069.4
|
|
|
$
|
2,249.8
|
|
|
$
|
1,197.2
|
|
Deposits
|
|
20,208.7
|
|
|
5,319.9
|
|
|
4,006.8
|
|
|
2,793.8
|
|
|
2,008.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
|
|
|
(in thousands)
|
||||||||||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax income
|
|
$
|
146,332
|
|
|
$
|
34,338
|
|
|
$
|
25,355
|
|
|
$
|
16,162
|
|
|
$
|
12,482
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax income
|
|
$
|
121,714
|
|
|
$
|
33,033
|
|
|
$
|
27,662
|
|
|
$
|
14,428
|
|
|
$
|
10,751
|
|
|
|
National Business Lines
|
|
|
||||||||||||||||||||
|
|
HOA
Services |
|
Public & Nonprofit Finance
|
|
Technology & Innovation
|
|
Hotel Franchise Finance
|
|
Other NBLs
|
|
Corporate & Other
|
||||||||||||
At March 31, 2019
|
|
(in millions)
|
||||||||||||||||||||||
Loans, net of deferred loan fees and costs
|
|
$
|
209.4
|
|
|
$
|
1,561.7
|
|
|
$
|
1,057.3
|
|
|
$
|
1,564.9
|
|
|
$
|
4,549.0
|
|
|
$
|
4.1
|
|
Deposits
|
|
2,963.0
|
|
|
—
|
|
|
2,404.7
|
|
|
—
|
|
|
5.3
|
|
|
706.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
At December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
(in thousands)
|
||||||||||||||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pre-tax income
|
|
$
|
12,304
|
|
|
$
|
1,557
|
|
|
$
|
21,793
|
|
|
$
|
9,747
|
|
|
$
|
14,034
|
|
|
$
|
(1,440
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pre-tax income
|
|
$
|
7,659
|
|
|
$
|
1,779
|
|
|
$
|
14,388
|
|
|
$
|
10,756
|
|
|
$
|
12,088
|
|
|
$
|
(10,830
|
)
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Debt securities
|
|
|
|
|
||||
CDO
|
|
$
|
15,026
|
|
|
$
|
15,327
|
|
Commercial MBS issued by GSEs
|
|
99,099
|
|
|
100,106
|
|
||
Corporate debt securities
|
|
97,042
|
|
|
99,380
|
|
||
Private label residential MBS
|
|
935,347
|
|
|
924,594
|
|
||
Residential MBS issued by GSEs
|
|
1,492,236
|
|
|
1,530,124
|
|
||
Tax-exempt
|
|
847,855
|
|
|
841,573
|
|
||
Trust preferred securities
|
|
28,617
|
|
|
28,617
|
|
||
U.S. government sponsored agency securities
|
|
38,901
|
|
|
38,188
|
|
||
U.S. treasury securities
|
|
989
|
|
|
1,984
|
|
||
Total debt securities
|
|
$
|
3,555,112
|
|
|
$
|
3,579,893
|
|
|
|
|
|
|
||||
Equity securities
|
|
|
|
|
||||
CRA investments
|
|
$
|
51,614
|
|
|
$
|
51,142
|
|
Preferred stock
|
|
66,391
|
|
|
63,919
|
|
||
Total equity securities
|
|
$
|
118,005
|
|
|
$
|
115,061
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Commercial and industrial
|
|
$
|
7,723,695
|
|
|
$
|
7,762,642
|
|
Commercial real estate - non-owner occupied
|
|
4,304,261
|
|
|
4,213,428
|
|
||
Commercial real estate - owner occupied
|
|
2,285,340
|
|
|
2,325,380
|
|
||
Construction and land development
|
|
2,283,527
|
|
|
2,134,753
|
|
||
Residential real estate
|
|
1,461,561
|
|
|
1,204,355
|
|
||
Consumer
|
|
58,364
|
|
|
70,071
|
|
||
Loans, net of deferred loan fees and costs
|
|
18,116,748
|
|
|
17,710,629
|
|
||
Allowance for credit losses
|
|
(154,987
|
)
|
|
(152,717
|
)
|
||
Total loans HFI
|
|
$
|
17,961,761
|
|
|
$
|
17,557,912
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(dollars in thousands)
|
||||||
Total non-accrual loans (1)
|
|
$
|
43,887
|
|
|
$
|
27,746
|
|
Loans past due 90 days or more on accrual status
|
|
—
|
|
|
594
|
|
||
Accruing troubled debt restructured loans
|
|
52,488
|
|
|
36,458
|
|
||
Total nonperforming loans, excluding loans acquired with deteriorated credit quality
|
|
96,375
|
|
|
64,798
|
|
||
Other impaired loans
|
|
47,023
|
|
|
47,454
|
|
||
Total impaired loans
|
|
$
|
143,398
|
|
|
$
|
112,252
|
|
Other assets acquired through foreclosure, net
|
|
$
|
17,707
|
|
|
$
|
17,924
|
|
Non-accrual loans to gross loans held for investment
|
|
0.24
|
%
|
|
0.16
|
%
|
||
Loans past due 90 days or more on accrual status to gross loans held for investment
|
|
—
|
|
|
0.00
|
|
(1)
|
Includes non-accrual TDR loans of
$16.4 million
and
$8.0 million
at
March 31, 2019
and
December 31, 2018
, respectively.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
|
|
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
|
|
$
|
31,074
|
|
|
70.81
|
%
|
|
0.17
|
%
|
|
$
|
15,090
|
|
|
54.39
|
%
|
|
0.09
|
%
|
Commercial real estate
|
|
1,000
|
|
|
2.28
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction and land development
|
|
3,783
|
|
|
8.62
|
|
|
0.02
|
|
|
476
|
|
|
1.71
|
|
|
0.00
|
|
||
Residential real estate
|
|
7,914
|
|
|
18.03
|
|
|
0.04
|
|
|
11,939
|
|
|
43.03
|
|
|
0.07
|
|
||
Consumer
|
|
116
|
|
|
0.26
|
|
|
0.00
|
|
|
241
|
|
|
0.87
|
|
|
0.00
|
|
||
Total non-accrual loans
|
|
$
|
43,887
|
|
|
100.00
|
%
|
|
0.24
|
%
|
|
$
|
27,746
|
|
|
100.00
|
%
|
|
0.16
|
%
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
|
Nonaccrual Loans
|
|
Percent of Segment's Total Loans
|
|
Nonaccrual Loans
|
|
Percent of Segment's Total Loans
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
Arizona
|
|
$
|
5,332
|
|
|
0.15
|
%
|
|
$
|
8,312
|
|
|
0.23
|
%
|
Nevada
|
|
5,730
|
|
|
0.28
|
|
|
6,374
|
|
|
0.32
|
|
||
Southern California
|
|
3,768
|
|
|
0.17
|
|
|
8,564
|
|
|
0.40
|
|
||
Northern California
|
|
14,643
|
|
|
1.22
|
|
|
4,255
|
|
|
0.33
|
|
||
Public & Nonprofit Finance
|
|
3,307
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
||
Technology and Innovation
|
|
10,991
|
|
|
1.04
|
|
|
—
|
|
|
—
|
|
||
Other NBLS
|
|
116
|
|
|
0.00
|
|
|
241
|
|
|
0.00
|
|
||
Total non-accrual loans
|
|
$
|
43,887
|
|
|
0.24
|
%
|
|
$
|
27,746
|
|
|
0.16
|
%
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
Arizona
|
|
$
|
32,217
|
|
|
$
|
34,899
|
|
Nevada
|
|
48,973
|
|
|
33,860
|
|
||
Southern California
|
|
4,080
|
|
|
8,576
|
|
||
Northern California
|
|
15,314
|
|
|
4,928
|
|
||
Public & Nonprofit Finance
|
|
3,307
|
|
|
—
|
|
||
Technology & Innovation
|
|
39,391
|
|
|
29,748
|
|
||
Other NBLs
|
|
116
|
|
|
241
|
|
||
Total impaired loans
|
|
$
|
143,398
|
|
|
$
|
112,252
|
|
|
|
March 31, 2019
|
||||||||||||||||||
|
|
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
|
|
$
|
78,768
|
|
|
54.93
|
%
|
|
0.43
|
%
|
|
$
|
297
|
|
|
21.89
|
%
|
|
0.19
|
%
|
Commercial real estate
|
|
20,453
|
|
|
14.26
|
|
|
0.11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction and land development
|
|
28,615
|
|
|
19.96
|
|
|
0.16
|
|
|
810
|
|
|
59.69
|
|
|
0.52
|
|
||
Residential real estate
|
|
15,417
|
|
|
10.75
|
|
|
0.09
|
|
|
250
|
|
|
18.42
|
|
|
0.16
|
|
||
Consumer
|
|
145
|
|
|
0.10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total impaired loans
|
|
$
|
143,398
|
|
|
100.00
|
%
|
|
0.79
|
%
|
|
$
|
1,357
|
|
|
100.00
|
%
|
|
0.88
|
%
|
|
|
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
|
%
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Allowance for credit losses:
|
|
|
|
||||
Balance at beginning of period
|
$
|
152,717
|
|
|
$
|
140,050
|
|
Provision charged to operating expense:
|
|
|
|
||||
Commercial and industrial
|
(4,217
|
)
|
|
3,143
|
|
||
Commercial real estate
|
2,585
|
|
|
1,247
|
|
||
Construction and land development
|
3,515
|
|
|
1,695
|
|
||
Residential real estate
|
1,825
|
|
|
(102
|
)
|
||
Consumer
|
(208
|
)
|
|
17
|
|
||
Total Provision
|
3,500
|
|
|
6,000
|
|
||
Recoveries of loans previously charged-off:
|
|
|
|
||||
Commercial and industrial
|
(477
|
)
|
|
(459
|
)
|
||
Commercial real estate
|
(453
|
)
|
|
(126
|
)
|
||
Construction and land development
|
(55
|
)
|
|
(1,388
|
)
|
||
Residential real estate
|
(93
|
)
|
|
(250
|
)
|
||
Consumer
|
(5
|
)
|
|
(10
|
)
|
||
Total recoveries
|
(1,083
|
)
|
|
(2,233
|
)
|
||
Loans charged-off:
|
|
|
|
||||
Commercial and industrial
|
2,124
|
|
|
3,517
|
|
||
Commercial real estate
|
—
|
|
|
—
|
|
||
Construction and land development
|
—
|
|
|
—
|
|
||
Residential real estate
|
188
|
|
|
107
|
|
||
Consumer
|
1
|
|
|
—
|
|
||
Total charged-off
|
2,313
|
|
|
3,624
|
|
||
Net charge-offs
|
1,230
|
|
|
1,391
|
|
||
Balance at end of period
|
$
|
154,987
|
|
|
$
|
144,659
|
|
Net charge-offs to average loans outstanding
|
0.03
|
%
|
|
0.04
|
%
|
||
Allowance for credit losses to gross loans
|
0.86
|
|
|
0.93
|
|
||
Allowance for credit losses to gross organic loans
|
0.90
|
|
|
1.02
|
|
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Construction and Land Development
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for credit losses
|
|
$
|
77,254
|
|
|
$
|
37,867
|
|
|
$
|
26,083
|
|
|
$
|
13,006
|
|
|
$
|
777
|
|
|
$
|
154,987
|
|
Percent of total allowance for credit losses
|
|
49.9
|
%
|
|
24.4
|
%
|
|
16.8
|
%
|
|
8.4
|
%
|
|
0.5
|
%
|
|
100.0
|
%
|
||||||
Percent of loan type to total loans
|
|
42.6
|
|
|
36.4
|
|
|
12.6
|
|
|
8.1
|
|
|
0.3
|
|
|
100.0
|
|
||||||
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
|
|
|
|
March 31, 2019
|
|||||||||||
|
|
Number of Loans
|
|
Loan Balance
|
|
Percent of Loan Balance
|
|
Percent of Total Loans
|
|||||
|
|
(dollars in thousands)
|
|||||||||||
Commercial and industrial
|
|
94
|
|
|
$
|
77,909
|
|
|
40.27
|
%
|
|
0.43
|
%
|
Commercial real estate
|
|
50
|
|
|
108,166
|
|
|
55.92
|
|
|
0.60
|
|
|
Construction and land development
|
|
5
|
|
|
6,921
|
|
|
3.58
|
|
|
0.04
|
|
|
Residential real estate
|
|
2
|
|
|
412
|
|
|
0.21
|
|
|
0.00
|
|
|
Consumer
|
|
2
|
|
|
40
|
|
|
0.02
|
|
|
0.00
|
|
|
Total
|
|
153
|
|
|
$
|
193,448
|
|
|
100.00
|
%
|
|
1.07
|
%
|
|
|
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
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||
|
|
2019
|
||||||||||
|
|
Gross Balance
|
|
Valuation Allowance
|
|
Net Balance
|
||||||
|
|
(in thousands)
|
||||||||||
Balance, beginning of period
|
|
$
|
19,979
|
|
|
$
|
(2,055
|
)
|
|
$
|
17,924
|
|
Charitable contribution
|
|
(232
|
)
|
|
114
|
|
|
(118
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
(99
|
)
|
|
(99
|
)
|
|||
Balance, end of period
|
|
$
|
19,747
|
|
|
$
|
(2,040
|
)
|
|
$
|
17,707
|
|
|
|
|
|
|
|
|
||||||
|
|
2018
|
||||||||||
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
|
|
(5,294
|
)
|
|
9
|
|
|
(5,285
|
)
|
|||
Valuation adjustments, net
|
|
—
|
|
|
(47
|
)
|
|
(47
|
)
|
|||
Gains (losses), net (1)
|
|
1,242
|
|
|
—
|
|
|
1,242
|
|
|||
Balance, end of period
|
|
$
|
34,244
|
|
|
$
|
(4,050
|
)
|
|
$
|
30,194
|
|
(1)
|
There were
zero
and
$1.0 million
in
net gains related to initial transfers to other assets during the three months ended
March 31, 2019
and
2018
, respectively.
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
|
|
Average Balance
|
|
Rate
|
|
Average Balance
|
|
Rate
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
Interest-bearing transaction accounts
|
|
$
|
2,495,848
|
|
|
0.91
|
%
|
|
$
|
1,654,720
|
|
|
0.34
|
%
|
Savings and money market accounts
|
|
7,446,639
|
|
|
1.20
|
|
|
6,226,611
|
|
|
0.58
|
|
||
Time certificates of deposit
|
|
1,817,787
|
|
|
1.83
|
|
|
1,579,940
|
|
|
1.00
|
|
||
Total interest-bearing deposits
|
|
11,760,274
|
|
|
1.23
|
|
|
9,461,271
|
|
|
0.61
|
|
||
Non-interest-bearing demand deposits
|
|
7,555,584
|
|
|
—
|
|
|
7,510,614
|
|
|
—
|
|
||
Total deposits
|
|
$
|
19,315,858
|
|
|
0.75
|
%
|
|
$
|
16,971,885
|
|
|
0.34
|
%
|
|
|
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)
|
||||||||||||||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
WAL
|
|
$
|
2,980,809
|
|
|
$
|
2,511,695
|
|
|
$
|
22,610,882
|
|
|
$
|
22,867,069
|
|
|
13.2
|
%
|
|
11.1
|
%
|
|
11.0
|
%
|
|
10.7
|
%
|
WAB
|
|
2,708,654
|
|
|
2,394,443
|
|
|
22,666,493
|
|
|
22,901,348
|
|
|
12.0
|
|
|
10.6
|
|
|
10.5
|
|
|
10.6
|
|
||||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
1.5
|
|
|
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
|
|
|
|
March 31, 2019
|
||||||
|
|
Available
Balance |
|
Outstanding Balance
|
||||
|
|
(in millions)
|
||||||
Unsecured fed funds credit lines at correspondent banks
|
|
|
|
|
||||
Committed amounts
|
|
$
|
261.0
|
|
|
$
|
—
|
|
Uncommitted amounts
|
|
694.0
|
|
|
—
|
|
||
Total other lines with correspondent banks
|
|
$
|
955.0
|
|
|
$
|
—
|
|
Item 3.
|
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
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Interest Income
|
|
$
|
1,095,269
|
|
|
$
|
1,209,475
|
|
|
$
|
1,334,788
|
|
|
$
|
1,458,891
|
|
|
$
|
1,583,245
|
|
|
$
|
1,708,597
|
|
Interest Expense
|
|
143,884
|
|
|
191,537
|
|
|
243,275
|
|
|
295,011
|
|
|
346,741
|
|
|
398,465
|
|
||||||
Net Interest Income
|
|
$
|
951,385
|
|
|
$
|
1,017,938
|
|
|
$
|
1,091,513
|
|
|
$
|
1,163,880
|
|
|
$
|
1,236,504
|
|
|
$
|
1,310,132
|
|
% Change
|
|
(6.5
|
)%
|
|
|
|
7.2
|
%
|
|
14.3
|
%
|
|
21.5
|
%
|
|
28.7
|
%
|
|
|
Interest Rate Scenario (change in basis points from Base)
|
||||||||||||||||||||||
|
|
Down 100
|
|
Base
|
|
Up 100
|
|
Up 200
|
|
Up 300
|
|
Up 400
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Assets
|
|
$
|
24,364,198
|
|
|
$
|
23,897,897
|
|
|
$
|
23,399,623
|
|
|
$
|
22,921,308
|
|
|
$
|
22,486,388
|
|
|
$
|
22,063,822
|
|
Liabilities
|
|
19,585,436
|
|
|
19,098,672
|
|
|
18,708,135
|
|
|
18,370,937
|
|
|
18,076,868
|
|
|
17,819,255
|
|
||||||
Net Present Value
|
|
$
|
4,778,762
|
|
|
$
|
4,799,225
|
|
|
$
|
4,691,488
|
|
|
$
|
4,550,371
|
|
|
$
|
4,409,520
|
|
|
$
|
4,244,567
|
|
% Change
|
|
(0.4
|
)%
|
|
|
|
(2.2
|
)%
|
|
(5.2
|
)%
|
|
(8.1
|
)%
|
|
(11.6
|
)%
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||
Notional
|
|
Net Value
|
|
Weighted Average Term (Years)
|
|
Notional
|
|
Net Value
|
|
Weighted Average Term (Years)
|
||||||||||
(dollars in thousands)
|
||||||||||||||||||||
$
|
1,005,954
|
|
|
$
|
(47,141
|
)
|
|
15.7
|
|
|
$
|
1,017,773
|
|
|
$
|
(42,477
|
)
|
|
15.8
|
|
Item 4.
|
Controls and Procedures.
|
Item 1.
|
Legal Proceedings.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
|
|
(a)
|
|
(b)
|
|
( c)
|
|
(d)
|
|||||
|
|
Total Number of Shares Purchased (1)(2)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)
|
|
Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs
|
|||||
1/1/2019 through 1/31/2019
|
|
99,757
|
|
|
$
|
45.15
|
|
|
—
|
|
|
214,339,618
|
|
2/1/2019 through 2/28/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
214,339,618
|
|
|
3/1/2019 through 3/31/2019
|
|
1,014,165
|
|
|
40.74
|
|
|
940,915
|
|
|
176,418,392
|
|
|
Total
|
|
1,113,922
|
|
|
$
|
41.13
|
|
|
940,915
|
|
|
176,418,392
|
|
(1)
|
Shares purchased during the period outside of the publicly announced repurchase program were transferred to the Company from employees in satisfaction of minimum tax withholding obligations associated with the vesting of restricted 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 5.
|
Other Information
|
Item 6.
|
Exhibits
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
3.4
|
|
|
|
|
|
10.1*
|
|
|
|
|
|
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.
|
**
|
Furnished herewith.
|
±
|
Management contract or compensatory arrangement.
|
|
|
WESTERN ALLIANCE BANCORPORATION
|
||
|
|
|
|
|
April 30, 2019
|
|
By:
|
|
/s/ Kenneth A. Vecchione
|
|
|
|
|
Kenneth A. Vecchione
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
April 30, 2019
|
|
By:
|
|
/s/ Dale Gibbons
|
|
|
|
|
Dale Gibbons
|
|
|
|
|
Vice Chairman
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
|
April 30, 2019
|
|
By:
|
|
/s/ J. Kelly Ardrey Jr.
|
|
|
|
|
J. Kelly Ardrey Jr.
|
|
|
|
|
Senior Vice President and
|
|
|
|
|
Chief Accounting Officer
|
Position/Duties:
|
You will serve as Executive Vice President and Chief Human Resources Officer of the Company and will report to Kenneth A. Vecchione, the Company’s CEO. Start of employment shall be on or before April 16, 2018 (“Employment Date”). You will also serve as a member of the Senior Operating Committee (SOC).
|
Base Salary:
|
Beginning on hire date, your base salary will be $355,000 annually.
|
Long Term Incentive:
|
On your hire date, you will be eligible for annual grants of restricted stock under WAL’s 2005 Stock Incentive Plan (as amended) in accordance with our standard compensation policies and practices as these may change from time to time. Your 2018 equity grant will consist of 3,000 shares and a three year vesting schedule. Those shares will vest 50% at the end of year two and 50% at the end of year three. You will also be granted 3,000 shares of performance-based stock units with a three year performance period. The performance-based stock units will cliff vest at the end of a three year performance period if the cumulative EPS and relative TSR thresholds are achieved. You will also be granted 10,000 shares of restricted stock with a four year vesting cycle vesting 25% per year. Both one-time grants and the annual stock grants are subject to approval by the WAL Compensation Committee
.
|
Annual Bonus:
|
You will be eligible to participate in the WAL Annual Bonus Plan and will be eligible for an annual cash award based on the Company’s annual performance relative to pre-established targets that are subject to the WAL Compensation Committee’s review and approval. As EVP/CHRO of the Company, your target bonus percentage for 2018 will be 65% of your Base Salary, and payment will be prorated based on base salary received in 2018.
|
Change in Control:
|
As an Executive Vice President of WAL, you will be eligible to participate in the Change in Control (CIC) plan. The CIC Plan provides for the payment of severance benefits upon a “double trigger” event. Following a double trigger event, benefits are payable in a lump sum cash payment equal to two times the sum of your base salary and target annual bonus amount.
|
Benefits:
|
Subject to proper documentation and applicable Company policies, you will be reimbursed for ordinary and necessary business expenses. You will be able to participate in any group benefits plan established by the Company for which you are or may be eligible, including medical plans, disability insurance plans, life insurance plans, 401(k), restoration plans, profit sharing or other similar plans. You will also be covered as an executive officer under the Company’s D&O insurance policy. These benefits are governed by the terms and conditions contained in the applicable plans or policies, and they are subject to change or discontinuation at any time.
|
No Restrictions:
|
You represent and warrant that you are not subject to any non-competition, non-solicitation or similar obligations to any former employer that could impair your ability to perform your duties and responsibilities in connection with the Company. In addition, you agree that you will not use or disclose any confidential or proprietary information of any former employer in performing these duties and responsibilities. You also agree to execute such documentation and to comply with such procedures as the Company may require or establish from time to time to confirm the above representations and warranties and ensure your compliance with these obligations.
|
Confidentiality:
|
You agree to hold in the strictest confidence all confidential business information of the Company, including, without limitation, information relating to customers, employees, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, financing methods, or plans of the Company and will not disclose or communicate (directly or indirectly) any such information to any other person, firm or corporation in any manner whatsoever without the Company’s prior written consent.
|
Governing Law:
|
The terms of your employment shall be governed by the laws of the State of Arizona for so long as you are an employee of WAL and, thereafter, by the laws of the State in which WAL’s successor in interest has its main office.
|
Employment Policies:
|
You agree to observe and comply with all applicable Company policies and guidelines, including, without limitation, WAL’s Employee Guide, Code of Business Conduct and Ethics, and Related Party Transactions Policy.
|
Screening:
|
Your employment and these terms are subject to your successful completion of WAL’s drug testing, fingerprinting and other pre-employment background check requirements.
|
1.
|
I have reviewed this
Quarterly
Report on Form
10-Q
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/ Kenneth A. Vecchione
|
|
|
|
|
Kenneth A. Vecchione
|
|
|
|
|
Chief Executive Officer
|
Date:
|
April 30, 2019
|
|
|
Western Alliance Bancorporation
|
1.
|
I have reviewed this
Quarterly
Report on Form
10-Q
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:
|
April 30, 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:
|
April 30, 2019
|
|
|
/s/ Kenneth A. Vecchione
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
Western Alliance Bancorporation
|
|
|
|
|
|
Date:
|
April 30, 2019
|
|
|
/s/ Dale Gibbons
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
Western Alliance Bancorporation
|