Delaware
|
|
33-0885320
|
(State of Incorporation)
|
|
(I.R.S. Employer
Identification No.)
|
þ
Large accelerated filer
|
|
o
Accelerated filer
|
|
|
|
o
Non-accelerated filer
|
(Do not check if a smaller reporting company)
|
o
Smaller reporting company
|
|
|
Page
|
|
||
PART I. FINANCIAL INFORMATION
|
||
Item 1.
|
Condensed Consolidated Financial Statements (Unaudited)
|
|
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
Condensed Consolidated Statements of Earnings (Unaudited)
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
|
|
|
Condensed Consolidated Statement Changes in Stockholders' Equity (Unaudited)
|
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
|
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
Item 4.
|
Controls and Procedures
|
|
|
||
PART II. OTHER INFORMATION
|
||
|
|
|
Item 1.
|
Legal Proceedings
|
|
Item 1A.
|
Risk Factors
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Item 6.
|
Index to Exhibits
|
|
Signatures
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(Unaudited)
|
||||||||||||||||||
|
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
$
|
225,370
|
|
|
$
|
224,326
|
|
|
$
|
193,539
|
|
|
$
|
686,071
|
|
|
$
|
599,417
|
|
Investment securities
|
22,187
|
|
|
22,420
|
|
|
13,955
|
|
|
67,154
|
|
|
40,720
|
|
|||||
Deposits in financial institutions
|
298
|
|
|
308
|
|
|
178
|
|
|
914
|
|
|
304
|
|
|||||
Total interest income
|
247,855
|
|
|
247,054
|
|
|
207,672
|
|
|
754,139
|
|
|
640,441
|
|
|||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
7,247
|
|
|
7,823
|
|
|
10,400
|
|
|
24,143
|
|
|
32,112
|
|
|||||
Borrowings
|
695
|
|
|
352
|
|
|
72
|
|
|
1,628
|
|
|
395
|
|
|||||
Subordinated debentures
|
5,278
|
|
|
5,122
|
|
|
4,680
|
|
|
15,382
|
|
|
13,787
|
|
|||||
Total interest expense
|
13,220
|
|
|
13,297
|
|
|
15,152
|
|
|
41,153
|
|
|
46,294
|
|
|||||
Net interest income
|
234,635
|
|
|
233,757
|
|
|
192,520
|
|
|
712,986
|
|
|
594,147
|
|
|||||
Provision for credit losses
|
8,471
|
|
|
13,903
|
|
|
8,746
|
|
|
42,514
|
|
|
31,709
|
|
|||||
Net interest income after provision for credit losses
|
226,164
|
|
|
219,854
|
|
|
183,774
|
|
|
670,472
|
|
|
562,438
|
|
|||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges on deposit accounts
|
3,488
|
|
|
3,633
|
|
|
2,601
|
|
|
10,977
|
|
|
7,787
|
|
|||||
Other commissions and fees
|
12,528
|
|
|
11,073
|
|
|
6,376
|
|
|
35,090
|
|
|
18,895
|
|
|||||
Leased equipment income
|
8,538
|
|
|
8,523
|
|
|
5,475
|
|
|
25,305
|
|
|
16,232
|
|
|||||
Gain on sale of loans and leases
|
157
|
|
|
388
|
|
|
27
|
|
|
790
|
|
|
190
|
|
|||||
Gain on sale of securities
|
382
|
|
|
478
|
|
|
655
|
|
|
8,970
|
|
|
3,744
|
|
|||||
FDIC loss sharing expense, net
|
—
|
|
|
(6,502
|
)
|
|
(4,449
|
)
|
|
(8,917
|
)
|
|
(13,955
|
)
|
|||||
Other income
|
1,827
|
|
|
4,528
|
|
|
5,073
|
|
|
11,365
|
|
|
23,359
|
|
|||||
Total noninterest income
|
26,920
|
|
|
22,121
|
|
|
15,758
|
|
|
83,580
|
|
|
56,252
|
|
|||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation
|
62,661
|
|
|
62,174
|
|
|
48,152
|
|
|
185,900
|
|
|
144,922
|
|
|||||
Occupancy
|
12,010
|
|
|
12,193
|
|
|
10,762
|
|
|
36,835
|
|
|
31,950
|
|
|||||
Data processing
|
6,234
|
|
|
5,644
|
|
|
4,322
|
|
|
17,782
|
|
|
13,032
|
|
|||||
Other professional services
|
4,625
|
|
|
3,401
|
|
|
3,396
|
|
|
11,598
|
|
|
9,949
|
|
|||||
Insurance and assessments
|
4,324
|
|
|
4,951
|
|
|
3,805
|
|
|
14,240
|
|
|
11,546
|
|
|||||
Intangible asset amortization
|
4,224
|
|
|
4,371
|
|
|
1,497
|
|
|
13,341
|
|
|
4,500
|
|
|||||
Leased equipment depreciation
|
5,298
|
|
|
5,286
|
|
|
3,162
|
|
|
15,608
|
|
|
9,368
|
|
|||||
Foreclosed assets (income) expense, net
|
(248
|
)
|
|
(3
|
)
|
|
4,521
|
|
|
(812
|
)
|
|
2,517
|
|
|||||
Acquisition, integration and reorganization costs
|
—
|
|
|
—
|
|
|
747
|
|
|
200
|
|
|
3,647
|
|
|||||
Other expense
|
11,582
|
|
|
12,064
|
|
|
9,775
|
|
|
36,787
|
|
|
28,344
|
|
|||||
Total noninterest expense
|
110,710
|
|
|
110,081
|
|
|
90,139
|
|
|
331,479
|
|
|
259,775
|
|
|||||
Earnings before income taxes
|
142,374
|
|
|
131,894
|
|
|
109,393
|
|
|
422,573
|
|
|
358,915
|
|
|||||
Income tax expense
|
(48,479
|
)
|
|
(49,726
|
)
|
|
(39,777
|
)
|
|
(156,054
|
)
|
|
(131,137
|
)
|
|||||
Net earnings
|
$
|
93,895
|
|
|
$
|
82,168
|
|
|
$
|
69,616
|
|
|
$
|
266,519
|
|
|
$
|
227,778
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.77
|
|
|
$
|
0.68
|
|
|
$
|
0.68
|
|
|
$
|
2.19
|
|
|
$
|
2.21
|
|
Diluted
|
$
|
0.77
|
|
|
$
|
0.68
|
|
|
$
|
0.68
|
|
|
$
|
2.19
|
|
|
$
|
2.21
|
|
Dividends declared per share
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(Unaudited)
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||
Net earnings
|
$
|
93,895
|
|
|
$
|
82,168
|
|
|
$
|
69,616
|
|
|
$
|
266,519
|
|
|
$
|
227,778
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized net holding gains (losses) on securities
|
|
|
|
|
|
|
|
|
|
||||||||||
available-for-sale arising during the period
|
(15,954
|
)
|
|
56,514
|
|
|
14,466
|
|
|
83,653
|
|
|
616
|
|
|||||
Income tax (expense) benefit related to net unrealized
|
|
|
|
|
|
|
|
|
|
||||||||||
holding gains (losses) arising during the period
|
6,509
|
|
|
(22,965
|
)
|
|
(5,873
|
)
|
|
(34,111
|
)
|
|
(364
|
)
|
|||||
Unrealized net holding gains (losses) on securities
|
|
|
|
|
|
|
|
|
|
||||||||||
available-for-sale, net of tax
|
(9,445
|
)
|
|
33,549
|
|
|
8,593
|
|
|
49,542
|
|
|
252
|
|
|||||
Reclassification adjustment for net (gains) losses
|
|
|
|
|
|
|
|
|
|
||||||||||
included in net earnings
(1)
|
(382
|
)
|
|
(478
|
)
|
|
(655
|
)
|
|
(8,970
|
)
|
|
(3,744
|
)
|
|||||
Income tax expense (benefit) related to reclassification
|
|
|
|
|
|
|
|
|
|
||||||||||
adjustment
|
156
|
|
|
194
|
|
|
266
|
|
|
3,673
|
|
|
1,571
|
|
|||||
Reclassification adjustment for net (gains) losses
|
|
|
|
|
|
|
|
|
|
||||||||||
included in net earnings, net of tax
|
(226
|
)
|
|
(284
|
)
|
|
(389
|
)
|
|
(5,297
|
)
|
|
(2,173
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
(9,671
|
)
|
|
33,265
|
|
|
8,204
|
|
|
44,245
|
|
|
(1,921
|
)
|
|||||
Comprehensive income
|
$
|
84,224
|
|
|
$
|
115,433
|
|
|
$
|
77,820
|
|
|
$
|
310,764
|
|
|
$
|
225,857
|
|
(1)
|
Entire amounts are recognized in
"Gain on sale of securities"
on the Condensed Consolidated Statements of Earnings.
|
|
Nine Months Ended September 30, 2016
|
|||||||||||||||||||||||||
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||||||||
|
|
|
|
|
Additional
|
|
|
|
|
|
Other
|
|
|
|||||||||||||
|
|
|
Par
|
|
Paid-in
|
|
Retained
|
|
Treasury
|
|
Comprehensive
|
|
|
|||||||||||||
|
Shares
|
|
Value
|
|
Capital
|
|
Earnings
|
|
Stock
|
|
Income
|
|
Total
|
|||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||
Balance, December 31, 2015
|
121,413,727
|
|
|
$
|
1,228
|
|
|
$
|
4,405,775
|
|
|
$
|
13,907
|
|
|
$
|
(51,047
|
)
|
|
$
|
27,828
|
|
|
$
|
4,397,691
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
266,519
|
|
|
—
|
|
|
—
|
|
|
266,519
|
|
||||||
Other comprehensive income - net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
unrealized gain on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
available-for-sale, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,245
|
|
|
44,245
|
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
528,392
|
|
|
5
|
|
|
17,270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,275
|
|
||||||
Restricted stock surrendered
|
(124,595
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,611
|
)
|
|
—
|
|
|
(4,611
|
)
|
||||||
Tax effect from vesting of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
restricted stock
|
—
|
|
|
—
|
|
|
4,226
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,226
|
|
||||||
Cash dividends paid
|
—
|
|
|
—
|
|
|
(182,750
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(182,750
|
)
|
||||||
Balance, September 30, 2016
|
121,817,524
|
|
|
$
|
1,233
|
|
|
$
|
4,244,521
|
|
|
$
|
280,426
|
|
|
$
|
(55,658
|
)
|
|
$
|
72,073
|
|
|
$
|
4,542,595
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Unaudited)
|
||||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net earnings
|
$
|
266,519
|
|
|
$
|
227,778
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
66,114
|
|
|
33,239
|
|
||
Provision for credit losses
|
42,514
|
|
|
31,709
|
|
||
(Gain) loss on sale of foreclosed assets
|
(837
|
)
|
|
42
|
|
||
Provision for losses on foreclosed assets
|
—
|
|
|
5,163
|
|
||
Gain on sale of loans and leases
|
(790
|
)
|
|
(190
|
)
|
||
Gain on sale of premises and equipment
|
(23
|
)
|
|
(54
|
)
|
||
Gain on sale of securities
|
(8,970
|
)
|
|
(3,744
|
)
|
||
Unrealized gain on derivatives and foreign currencies, net
|
(374
|
)
|
|
(909
|
)
|
||
Earned stock compensation
|
17,275
|
|
|
11,836
|
|
||
Loss on sale of leasing unit
|
720
|
|
|
—
|
|
||
Tax effect included in stockholders' equity of restricted stock vesting
|
(4,226
|
)
|
|
(596
|
)
|
||
Decrease in accrued and deferred income taxes, net
|
74,946
|
|
|
108,553
|
|
||
Decrease in other assets
|
2,070
|
|
|
15,786
|
|
||
Decrease in accrued interest payable and other liabilities
|
(23,600
|
)
|
|
(25,336
|
)
|
||
Net cash provided by operating activities
|
431,338
|
|
|
403,277
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Net increase in loans and leases
|
(514,224
|
)
|
|
(612,008
|
)
|
||
Proceeds from sales of loans and leases
|
106,109
|
|
|
10,557
|
|
||
Securities available-for-sale:
|
|
|
|
||||
Proceeds from maturities and paydowns
|
184,644
|
|
|
93,389
|
|
||
Proceeds from sales
|
392,841
|
|
|
212,169
|
|
||
Purchases
|
(303,742
|
)
|
|
(557,769
|
)
|
||
Net redemptions of Federal Home Loan Bank stock
|
324
|
|
|
23,359
|
|
||
Proceeds from sales of foreclosed assets
|
7,973
|
|
|
18,772
|
|
||
Purchases of premises and equipment, net
|
(6,185
|
)
|
|
(5,872
|
)
|
||
Proceeds from sales of premises and equipment
|
24
|
|
|
108
|
|
||
Proceeds from sale of leasing unit
|
138,955
|
|
|
—
|
|
||
Proceeds from BOLI death benefit
|
1,853
|
|
|
—
|
|
||
Net increase of equipment leased to others under operating leases
|
(15,802
|
)
|
|
(26,174
|
)
|
||
Net cash used in investing activities
|
(7,230
|
)
|
|
(843,469
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Net increase (decrease) in deposits:
|
|
|
|
||||
Noninterest-bearing
|
352,784
|
|
|
573,101
|
|
||
Interest-bearing
|
(371,005
|
)
|
|
(216,717
|
)
|
||
Net (decrease) increase in borrowings
|
(78,873
|
)
|
|
169,095
|
|
||
Common stock repurchased
|
(4,611
|
)
|
|
(8,391
|
)
|
||
Tax effect included in stockholders' equity of restricted stock vesting
|
4,226
|
|
|
596
|
|
||
Cash dividends paid
|
(182,750
|
)
|
|
(154,424
|
)
|
||
Net cash (used in) provided by financing activities
|
(280,229
|
)
|
|
363,260
|
|
||
Net increase (decrease) in cash and cash equivalents
|
143,879
|
|
|
(76,932
|
)
|
||
Cash and cash equivalents, beginning of period
|
396,486
|
|
|
313,226
|
|
||
Cash and cash equivalents, end of period
|
$
|
540,365
|
|
|
$
|
236,294
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
41,392
|
|
|
$
|
51,218
|
|
Cash paid for income taxes
|
82,721
|
|
|
13,760
|
|
||
Loans transferred to foreclosed assets
|
129
|
|
|
13,472
|
|
||
Partnership interest transferred to equipment leased to others under operating leases
|
—
|
|
|
20,833
|
|
|
Goodwill
|
||
|
(In thousands)
|
||
Balance, December 31, 2015
|
$
|
2,176,291
|
|
Adjustment to acquired Square 1 tax assets
|
(1,842
|
)
|
|
Reduction due to sale of PWEF leasing unit
|
(500
|
)
|
|
Balance, September 30, 2016
|
$
|
2,173,949
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Gross Amount of CDI and CRI:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
$
|
76,513
|
|
|
$
|
93,824
|
|
|
$
|
53,090
|
|
|
$
|
95,524
|
|
|
$
|
53,090
|
|
Fully amortized portion
|
(2,811
|
)
|
|
(17,311
|
)
|
|
—
|
|
|
(20,122
|
)
|
|
—
|
|
|||||
Reduction due to sale of PWEF leasing unit
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,700
|
)
|
|
—
|
|
|||||
Balance, end of period
|
73,702
|
|
|
76,513
|
|
|
53,090
|
|
|
73,702
|
|
|
53,090
|
|
|||||
Accumulated Amortization:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
(32,747
|
)
|
|
(45,687
|
)
|
|
(38,889
|
)
|
|
(42,304
|
)
|
|
(35,886
|
)
|
|||||
Amortization
|
(4,224
|
)
|
|
(4,371
|
)
|
|
(1,497
|
)
|
|
(13,341
|
)
|
|
(4,500
|
)
|
|||||
Fully amortized portion
|
2,811
|
|
|
17,311
|
|
|
—
|
|
|
20,122
|
|
|
—
|
|
|||||
Reduction due to sale of PWEF leasing unit
|
—
|
|
|
—
|
|
|
—
|
|
|
1,363
|
|
|
—
|
|
|||||
Balance, end of period
|
(34,160
|
)
|
|
(32,747
|
)
|
|
(40,386
|
)
|
|
(34,160
|
)
|
|
(40,386
|
)
|
|||||
Net CDI and CRI, end of period
|
$
|
39,542
|
|
|
$
|
43,766
|
|
|
$
|
12,704
|
|
|
$
|
39,542
|
|
|
$
|
12,704
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||||||||||
Security Type:
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
securities ("MBS") and collateralized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
mortgage obligations ("CMOs"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency MBS
|
$
|
518,996
|
|
|
$
|
10,639
|
|
|
$
|
(694
|
)
|
|
$
|
528,941
|
|
|
$
|
660,069
|
|
|
$
|
11,517
|
|
|
$
|
(3,746
|
)
|
|
$
|
667,840
|
|
Agency CMOs
|
154,216
|
|
|
3,196
|
|
|
(181
|
)
|
|
157,231
|
|
|
193,148
|
|
|
2,633
|
|
|
(1,026
|
)
|
|
194,755
|
|
||||||||
Private label CMOs
|
133,917
|
|
|
5,377
|
|
|
(669
|
)
|
|
138,625
|
|
|
140,065
|
|
|
5,837
|
|
|
(1,106
|
)
|
|
144,796
|
|
||||||||
Municipal securities
|
1,437,952
|
|
|
84,571
|
|
|
(29
|
)
|
|
1,522,494
|
|
|
1,508,968
|
|
|
39,435
|
|
|
(1,072
|
)
|
|
1,547,331
|
|
||||||||
Agency commercial MBS
|
517,163
|
|
|
15,299
|
|
|
(1,189
|
)
|
|
531,273
|
|
|
392,729
|
|
|
1,509
|
|
|
(2,797
|
)
|
|
391,441
|
|
||||||||
Corporate debt securities
|
47,155
|
|
|
1,856
|
|
|
—
|
|
|
49,011
|
|
|
49,047
|
|
|
327
|
|
|
(950
|
)
|
|
48,424
|
|
||||||||
Collateralized loan obligations
|
155,373
|
|
|
1,511
|
|
|
(237
|
)
|
|
156,647
|
|
|
133,192
|
|
|
128
|
|
|
(1,131
|
)
|
|
132,189
|
|
||||||||
SBA securities
|
185,639
|
|
|
1,909
|
|
|
(248
|
)
|
|
187,300
|
|
|
211,946
|
|
|
41
|
|
|
(830
|
)
|
|
211,157
|
|
||||||||
US Treasury securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70,196
|
|
|
—
|
|
|
(816
|
)
|
|
69,380
|
|
||||||||
Agency debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,302
|
|
|
611
|
|
|
—
|
|
|
36,913
|
|
||||||||
Asset-backed and other securities
|
69,189
|
|
|
722
|
|
|
(98
|
)
|
|
69,813
|
|
|
116,723
|
|
|
119
|
|
|
(1,631
|
)
|
|
115,211
|
|
||||||||
Total
|
$
|
3,219,600
|
|
|
$
|
125,080
|
|
|
$
|
(3,345
|
)
|
|
$
|
3,341,335
|
|
|
$
|
3,512,385
|
|
|
$
|
62,157
|
|
|
$
|
(15,105
|
)
|
|
$
|
3,559,437
|
|
|
September 30, 2016
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
|
Gross
|
|
|
|
Gross
|
|
|
|
Gross
|
||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Security Type:
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Residential MBS and CMOs:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Agency MBS
|
$
|
33,817
|
|
|
$
|
(100
|
)
|
|
$
|
130,786
|
|
|
$
|
(594
|
)
|
|
$
|
164,603
|
|
|
$
|
(694
|
)
|
Agency CMOs
|
18,893
|
|
|
(95
|
)
|
|
26,476
|
|
|
(86
|
)
|
|
45,369
|
|
|
(181
|
)
|
||||||
Private label CMOs
|
14,552
|
|
|
(98
|
)
|
|
29,058
|
|
|
(571
|
)
|
|
43,610
|
|
|
(669
|
)
|
||||||
Municipal securities
|
5,338
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
5,338
|
|
|
(29
|
)
|
||||||
Agency commercial MBS
|
77,706
|
|
|
(1,189
|
)
|
|
—
|
|
|
—
|
|
|
77,706
|
|
|
(1,189
|
)
|
||||||
Collateralized loan obligations
|
2,506
|
|
|
(5
|
)
|
|
39,197
|
|
|
(232
|
)
|
|
41,703
|
|
|
(237
|
)
|
||||||
SBA securities
|
2,956
|
|
|
(9
|
)
|
|
39,842
|
|
|
(239
|
)
|
|
42,798
|
|
|
(248
|
)
|
||||||
Asset-backed and other securities
|
5
|
|
|
(2
|
)
|
|
14,974
|
|
|
(96
|
)
|
|
14,979
|
|
|
(98
|
)
|
||||||
Total
|
$
|
155,773
|
|
|
$
|
(1,527
|
)
|
|
$
|
280,333
|
|
|
$
|
(1,818
|
)
|
|
$
|
436,106
|
|
|
$
|
(3,345
|
)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
|
Gross
|
|
|
|
Gross
|
|
|
|
Gross
|
||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Security Type:
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Residential MBS and CMOs:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Agency MBS
|
$
|
352,042
|
|
|
$
|
(3,480
|
)
|
|
$
|
9,342
|
|
|
$
|
(266
|
)
|
|
$
|
361,384
|
|
|
$
|
(3,746
|
)
|
Agency CMOs
|
117,786
|
|
|
(1,026
|
)
|
|
—
|
|
|
—
|
|
|
117,786
|
|
|
(1,026
|
)
|
||||||
Private label CMOs
|
93,533
|
|
|
(1,000
|
)
|
|
1,638
|
|
|
(106
|
)
|
|
95,171
|
|
|
(1,106
|
)
|
||||||
Municipal securities
|
126,892
|
|
|
(1,061
|
)
|
|
531
|
|
|
(11
|
)
|
|
127,423
|
|
|
(1,072
|
)
|
||||||
Agency commercial MBS
|
236,098
|
|
|
(2,156
|
)
|
|
14,230
|
|
|
(641
|
)
|
|
250,328
|
|
|
(2,797
|
)
|
||||||
US Treasury securities
|
69,380
|
|
|
(816
|
)
|
|
—
|
|
|
—
|
|
|
69,380
|
|
|
(816
|
)
|
||||||
Corporate debt securities
|
29,379
|
|
|
(950
|
)
|
|
—
|
|
|
—
|
|
|
29,379
|
|
|
(950
|
)
|
||||||
Collateralized loan obligations
|
100,993
|
|
|
(1,131
|
)
|
|
—
|
|
|
—
|
|
|
100,993
|
|
|
(1,131
|
)
|
||||||
SBA securities
|
179,942
|
|
|
(830
|
)
|
|
—
|
|
|
—
|
|
|
179,942
|
|
|
(830
|
)
|
||||||
Asset-backed and other securities
|
71,619
|
|
|
(1,182
|
)
|
|
16,091
|
|
|
(449
|
)
|
|
87,710
|
|
|
(1,631
|
)
|
||||||
Total
|
$
|
1,377,664
|
|
|
$
|
(13,632
|
)
|
|
$
|
41,832
|
|
|
$
|
(1,473
|
)
|
|
$
|
1,419,496
|
|
|
$
|
(15,105
|
)
|
|
September 30, 2016
|
||||||
|
Amortized
|
|
Fair
|
||||
Maturity:
|
Cost
|
|
Value
|
||||
|
(In thousands)
|
||||||
Due in one year or less
|
$
|
8,352
|
|
|
$
|
8,562
|
|
Due after one year through five years
|
252,427
|
|
|
259,096
|
|
||
Due after five years through ten years
|
714,467
|
|
|
738,034
|
|
||
Due after ten years
|
2,244,354
|
|
|
2,335,643
|
|
||
Total securities available-for-sale
|
$
|
3,219,600
|
|
|
$
|
3,341,335
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Taxable interest
|
$
|
11,446
|
|
|
$
|
11,406
|
|
|
$
|
7,323
|
|
|
$
|
34,248
|
|
|
$
|
22,373
|
|
Non-taxable interest
|
10,333
|
|
|
10,503
|
|
|
6,058
|
|
|
31,562
|
|
|
14,760
|
|
|||||
Dividend income
|
408
|
|
|
511
|
|
|
574
|
|
|
1,344
|
|
|
3,587
|
|
|||||
Total interest income on investment securities
|
$
|
22,187
|
|
|
$
|
22,420
|
|
|
$
|
13,955
|
|
|
$
|
67,154
|
|
|
$
|
40,720
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Non-PCI
|
|
|
|
|
|
Non-PCI
|
|
|
|
|
||||||||||||
|
Loans
|
|
PCI
|
|
|
|
Loans
|
|
PCI
|
|
|
||||||||||||
|
and Leases
|
|
Loans
|
|
Total
|
|
and Leases
|
|
Loans
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage
|
$
|
5,481,922
|
|
|
$
|
104,896
|
|
|
$
|
5,586,818
|
|
|
$
|
5,706,903
|
|
|
$
|
168,725
|
|
|
$
|
5,875,628
|
|
Real estate construction and land
|
843,097
|
|
|
2,423
|
|
|
845,520
|
|
|
534,307
|
|
|
2,656
|
|
|
536,963
|
|
||||||
Commercial
|
8,104,711
|
|
|
12,649
|
|
|
8,117,360
|
|
|
7,977,067
|
|
|
17,415
|
|
|
7,994,482
|
|
||||||
Consumer
|
256,476
|
|
|
253
|
|
|
256,729
|
|
|
120,793
|
|
|
299
|
|
|
121,092
|
|
||||||
Total gross loans and leases
|
14,686,206
|
|
|
120,221
|
|
|
14,806,427
|
|
|
14,339,070
|
|
|
189,095
|
|
|
14,528,165
|
|
||||||
Deferred fees, net
|
(63,559
|
)
|
|
(22
|
)
|
|
(63,581
|
)
|
|
(49,861
|
)
|
|
(50
|
)
|
|
(49,911
|
)
|
||||||
Total loans and leases, net of deferred fees
|
14,622,647
|
|
|
120,199
|
|
|
14,742,846
|
|
|
14,289,209
|
|
|
189,045
|
|
|
14,478,254
|
|
||||||
Allowance for loan and lease losses
|
(136,747
|
)
|
|
(11,229
|
)
|
|
(147,976
|
)
|
|
(105,534
|
)
|
|
(9,577
|
)
|
|
(115,111
|
)
|
||||||
Total net loans and leases
|
$
|
14,485,900
|
|
|
$
|
108,970
|
|
|
$
|
14,594,870
|
|
|
$
|
14,183,675
|
|
|
$
|
179,468
|
|
|
$
|
14,363,143
|
|
|
September 30, 2016
|
||||||||||||||||||
|
30 - 89
|
|
90 or More
|
|
|
|
|
|
|
||||||||||
|
Days
|
|
Days
|
|
Total
|
|
|
|
|
||||||||||
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
10,489
|
|
|
$
|
5,772
|
|
|
$
|
16,261
|
|
|
$
|
4,262,571
|
|
|
$
|
4,278,832
|
|
Residential
|
266
|
|
|
2,520
|
|
|
2,786
|
|
|
1,183,323
|
|
|
1,186,109
|
|
|||||
Total real estate mortgage
|
10,755
|
|
|
8,292
|
|
|
19,047
|
|
|
5,445,894
|
|
|
5,464,941
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
1,245
|
|
|
—
|
|
|
1,245
|
|
|
507,166
|
|
|
508,411
|
|
|||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
323,104
|
|
|
323,104
|
|
|||||
Total real estate construction and land
|
1,245
|
|
|
—
|
|
|
1,245
|
|
|
830,270
|
|
|
831,515
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow
|
66
|
|
|
2,128
|
|
|
2,194
|
|
|
3,063,297
|
|
|
3,065,491
|
|
|||||
Asset-based
|
6,644
|
|
|
15
|
|
|
6,659
|
|
|
2,565,142
|
|
|
2,571,801
|
|
|||||
Venture capital
|
—
|
|
|
1,095
|
|
|
1,095
|
|
|
1,760,517
|
|
|
1,761,612
|
|
|||||
Equipment finance
|
3,304
|
|
|
350
|
|
|
3,654
|
|
|
667,129
|
|
|
670,783
|
|
|||||
Total commercial
|
10,014
|
|
|
3,588
|
|
|
13,602
|
|
|
8,056,085
|
|
|
8,069,687
|
|
|||||
Consumer
|
—
|
|
|
4
|
|
|
4
|
|
|
256,500
|
|
|
256,504
|
|
|||||
Total Non-PCI loans and leases
|
$
|
22,014
|
|
|
$
|
11,884
|
|
|
$
|
33,898
|
|
|
$
|
14,588,749
|
|
|
$
|
14,622,647
|
|
|
December 31, 2015
|
||||||||||||||||||
|
30 - 89
|
|
90 or More
|
|
|
|
|
|
|
||||||||||
|
Days
|
|
Days
|
|
Total
|
|
|
|
|
||||||||||
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
3,947
|
|
|
$
|
13,075
|
|
|
$
|
17,022
|
|
|
$
|
4,534,936
|
|
|
$
|
4,551,958
|
|
Residential
|
3,391
|
|
|
905
|
|
|
4,296
|
|
|
1,131,809
|
|
|
1,136,105
|
|
|||||
Total real estate mortgage
|
7,338
|
|
|
13,980
|
|
|
21,318
|
|
|
5,666,745
|
|
|
5,688,063
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
343,360
|
|
|
343,360
|
|
|||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
184,360
|
|
|
184,360
|
|
|||||
Total real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
527,720
|
|
|
527,720
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow
|
2,048
|
|
|
1,427
|
|
|
3,475
|
|
|
3,058,793
|
|
|
3,062,268
|
|
|||||
Asset-based
|
1
|
|
|
—
|
|
|
1
|
|
|
2,547,532
|
|
|
2,547,533
|
|
|||||
Venture capital
|
250
|
|
|
700
|
|
|
950
|
|
|
1,451,477
|
|
|
1,452,427
|
|
|||||
Equipment finance
|
359
|
|
|
94
|
|
|
453
|
|
|
889,896
|
|
|
890,349
|
|
|||||
Total commercial
|
2,658
|
|
|
2,221
|
|
|
4,879
|
|
|
7,947,698
|
|
|
7,952,577
|
|
|||||
Consumer
|
626
|
|
|
1,307
|
|
|
1,933
|
|
|
118,916
|
|
|
120,849
|
|
|||||
Total Non-PCI loans and leases
|
$
|
10,622
|
|
|
$
|
17,508
|
|
|
$
|
28,130
|
|
|
$
|
14,261,079
|
|
|
$
|
14,289,209
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Nonaccrual
|
|
Performing
|
|
Total
|
|
Nonaccrual
|
|
Performing
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
74,606
|
|
|
$
|
4,204,226
|
|
|
$
|
4,278,832
|
|
|
$
|
52,363
|
|
|
$
|
4,499,595
|
|
|
$
|
4,551,958
|
|
Residential
|
5,089
|
|
|
1,181,020
|
|
|
1,186,109
|
|
|
4,914
|
|
|
1,131,191
|
|
|
1,136,105
|
|
||||||
Total real estate mortgage
|
79,695
|
|
|
5,385,246
|
|
|
5,464,941
|
|
|
57,277
|
|
|
5,630,786
|
|
|
5,688,063
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,245
|
|
|
507,166
|
|
|
508,411
|
|
|
—
|
|
|
343,360
|
|
|
343,360
|
|
||||||
Residential
|
366
|
|
|
322,738
|
|
|
323,104
|
|
|
372
|
|
|
183,988
|
|
|
184,360
|
|
||||||
Total real estate construction and land
|
1,611
|
|
|
829,904
|
|
|
831,515
|
|
|
372
|
|
|
527,348
|
|
|
527,720
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow
|
27,831
|
|
|
3,037,660
|
|
|
3,065,491
|
|
|
15,800
|
|
|
3,046,468
|
|
|
3,062,268
|
|
||||||
Asset-based
|
4,044
|
|
|
2,567,757
|
|
|
2,571,801
|
|
|
2,505
|
|
|
2,545,028
|
|
|
2,547,533
|
|
||||||
Venture capital
|
10,782
|
|
|
1,750,830
|
|
|
1,761,612
|
|
|
124
|
|
|
1,452,303
|
|
|
1,452,427
|
|
||||||
Equipment finance
|
46,916
|
|
|
623,867
|
|
|
670,783
|
|
|
51,410
|
|
|
838,939
|
|
|
890,349
|
|
||||||
Total commercial
|
89,573
|
|
|
7,980,114
|
|
|
8,069,687
|
|
|
69,839
|
|
|
7,882,738
|
|
|
7,952,577
|
|
||||||
Consumer
|
206
|
|
|
256,298
|
|
|
256,504
|
|
|
1,531
|
|
|
119,318
|
|
|
120,849
|
|
||||||
Total Non-PCI loans and leases
|
$
|
171,085
|
|
|
$
|
14,451,562
|
|
|
$
|
14,622,647
|
|
|
$
|
129,019
|
|
|
$
|
14,160,190
|
|
|
$
|
14,289,209
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Classified
|
|
Nonclassified
|
|
Total
|
|
Classified
|
|
Nonclassified
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
104,914
|
|
|
$
|
4,173,918
|
|
|
$
|
4,278,832
|
|
|
$
|
98,436
|
|
|
$
|
4,453,522
|
|
|
$
|
4,551,958
|
|
Residential
|
15,876
|
|
|
1,170,233
|
|
|
1,186,109
|
|
|
12,627
|
|
|
1,123,478
|
|
|
1,136,105
|
|
||||||
Total real estate mortgage
|
120,790
|
|
|
5,344,151
|
|
|
5,464,941
|
|
|
111,063
|
|
|
5,577,000
|
|
|
5,688,063
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,839
|
|
|
506,572
|
|
|
508,411
|
|
|
571
|
|
|
342,789
|
|
|
343,360
|
|
||||||
Residential
|
366
|
|
|
322,738
|
|
|
323,104
|
|
|
1,395
|
|
|
182,965
|
|
|
184,360
|
|
||||||
Total real estate construction and land
|
2,205
|
|
|
829,310
|
|
|
831,515
|
|
|
1,966
|
|
|
525,754
|
|
|
527,720
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow
|
174,490
|
|
|
2,891,001
|
|
|
3,065,491
|
|
|
183,726
|
|
|
2,878,542
|
|
|
3,062,268
|
|
||||||
Asset-based
|
34,791
|
|
|
2,537,010
|
|
|
2,571,801
|
|
|
19,340
|
|
|
2,528,193
|
|
|
2,547,533
|
|
||||||
Venture capital
|
37,986
|
|
|
1,723,626
|
|
|
1,761,612
|
|
|
19,105
|
|
|
1,433,322
|
|
|
1,452,427
|
|
||||||
Equipment finance
|
46,916
|
|
|
623,867
|
|
|
670,783
|
|
|
54,054
|
|
|
836,295
|
|
|
890,349
|
|
||||||
Total commercial
|
294,183
|
|
|
7,775,504
|
|
|
8,069,687
|
|
|
276,225
|
|
|
7,676,352
|
|
|
7,952,577
|
|
||||||
Consumer
|
363
|
|
|
256,141
|
|
|
256,504
|
|
|
2,500
|
|
|
118,349
|
|
|
120,849
|
|
||||||
Total Non-PCI loans and leases
|
$
|
417,541
|
|
|
$
|
14,205,106
|
|
|
$
|
14,622,647
|
|
|
$
|
391,754
|
|
|
$
|
13,897,455
|
|
|
$
|
14,289,209
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
|
|
Performing
|
|
Total
|
|
|
|
Performing
|
|
Total
|
||||||||||||
|
Nonaccrual
|
|
Troubled
|
|
Impaired
|
|
Nonaccrual
|
|
Troubled
|
|
Impaired
|
||||||||||||
|
Loans
|
|
Debt
|
|
Loans
|
|
Loans
|
|
Debt
|
|
Loans
|
||||||||||||
|
and
|
|
Restructured
|
|
and
|
|
and
|
|
Restructured
|
|
and
|
||||||||||||
|
Leases
|
|
Loans
|
|
Leases
|
|
Leases
|
|
Loans
|
|
Leases
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage
|
$
|
79,695
|
|
|
$
|
59,793
|
|
|
$
|
139,488
|
|
|
$
|
57,277
|
|
|
$
|
27,133
|
|
|
$
|
84,410
|
|
Real estate construction and land
|
1,611
|
|
|
7,089
|
|
|
8,700
|
|
|
372
|
|
|
7,631
|
|
|
8,003
|
|
||||||
Commercial
|
89,573
|
|
|
3,250
|
|
|
92,823
|
|
|
69,839
|
|
|
5,221
|
|
|
75,060
|
|
||||||
Consumer
|
206
|
|
|
216
|
|
|
422
|
|
|
1,531
|
|
|
197
|
|
|
1,728
|
|
||||||
Total
|
$
|
171,085
|
|
|
$
|
70,348
|
|
|
$
|
241,433
|
|
|
$
|
129,019
|
|
|
$
|
40,182
|
|
|
$
|
169,201
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
|
|
Unpaid
|
|
|
|
|
|
Unpaid
|
|
|
||||||||||||
|
Recorded
|
|
Principal
|
|
Related
|
|
Recorded
|
|
Principal
|
|
Related
|
||||||||||||
|
Investment
|
|
Balance
|
|
Allowance
|
|
Investment
|
|
Balance
|
|
Allowance
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
67,821
|
|
|
$
|
68,852
|
|
|
$
|
7,055
|
|
|
$
|
17,967
|
|
|
$
|
19,219
|
|
|
$
|
777
|
|
Residential
|
2,517
|
|
|
2,573
|
|
|
244
|
|
|
2,278
|
|
|
2,435
|
|
|
681
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
736
|
|
|
736
|
|
|
11
|
|
|
747
|
|
|
747
|
|
|
26
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow
|
25,936
|
|
|
26,971
|
|
|
4,686
|
|
|
14,072
|
|
|
20,312
|
|
|
7,079
|
|
||||||
Asset-based
|
4,136
|
|
|
4,584
|
|
|
2,899
|
|
|
3,901
|
|
|
4,423
|
|
|
2,511
|
|
||||||
Venture capital
|
10,781
|
|
|
10,856
|
|
|
3,331
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Equipment finance
|
46,916
|
|
|
52,908
|
|
|
12,715
|
|
|
11,193
|
|
|
11,894
|
|
|
8,032
|
|
||||||
Consumer
|
346
|
|
|
355
|
|
|
179
|
|
|
365
|
|
|
372
|
|
|
157
|
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
59,090
|
|
|
$
|
68,390
|
|
|
|
|
$
|
58,678
|
|
|
$
|
68,333
|
|
|
|
||||
Residential
|
10,060
|
|
|
15,309
|
|
|
|
|
5,487
|
|
|
11,406
|
|
|
|
||||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
7,964
|
|
|
7,964
|
|
|
|
|
7,256
|
|
|
7,256
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow
|
2,519
|
|
|
4,783
|
|
|
|
|
2,825
|
|
|
5,121
|
|
|
|
||||||||
Asset-based
|
2,535
|
|
|
2,575
|
|
|
|
|
2,729
|
|
|
2,726
|
|
|
|
||||||||
Venture capital
|
—
|
|
|
—
|
|
|
|
|
124
|
|
|
125
|
|
|
|
||||||||
Equipment finance
|
—
|
|
|
11,709
|
|
|
|
|
40,216
|
|
|
44,194
|
|
|
|
||||||||
Consumer
|
76
|
|
|
146
|
|
|
|
|
1,363
|
|
|
1,945
|
|
|
|
||||||||
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate mortgage
|
$
|
139,488
|
|
|
$
|
155,124
|
|
|
$
|
7,299
|
|
|
$
|
84,410
|
|
|
$
|
101,393
|
|
|
$
|
1,458
|
|
Real estate construction and land
|
8,700
|
|
|
8,700
|
|
|
11
|
|
|
8,003
|
|
|
8,003
|
|
|
26
|
|
||||||
Commercial
|
92,823
|
|
|
114,386
|
|
|
23,631
|
|
|
75,060
|
|
|
88,795
|
|
|
17,622
|
|
||||||
Consumer
|
422
|
|
|
501
|
|
|
179
|
|
|
1,728
|
|
|
2,317
|
|
|
157
|
|
||||||
Total
|
$
|
241,433
|
|
|
$
|
278,711
|
|
|
$
|
31,120
|
|
|
$
|
169,201
|
|
|
$
|
200,508
|
|
|
$
|
19,263
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
|
Weighted
|
|
Interest
|
|
Weighted
|
|
Interest
|
||||||||
|
Average
|
|
Income
|
|
Average
|
|
Income
|
||||||||
|
Balance
(1)
|
|
Recognized
|
|
Balance
(1)
|
|
Recognized
|
||||||||
|
(In thousands)
|
||||||||||||||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
18,580
|
|
|
$
|
262
|
|
|
$
|
13,230
|
|
|
$
|
152
|
|
Residential
|
2,505
|
|
|
15
|
|
|
2,478
|
|
|
9
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Residential
|
736
|
|
|
4
|
|
|
751
|
|
|
4
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Cash flow
|
25,933
|
|
|
9
|
|
|
13,653
|
|
|
13
|
|
||||
Asset-based
|
2,730
|
|
|
5
|
|
|
4,906
|
|
|
48
|
|
||||
Venture capital
|
6,878
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Equipment finance
|
42,913
|
|
|
—
|
|
|
9,654
|
|
|
—
|
|
||||
Consumer
|
346
|
|
|
3
|
|
|
394
|
|
|
4
|
|
||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
59,090
|
|
|
$
|
518
|
|
|
$
|
36,534
|
|
|
$
|
243
|
|
Residential
|
9,573
|
|
|
70
|
|
|
6,061
|
|
|
14
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
7,870
|
|
|
57
|
|
|
7,193
|
|
|
62
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Cash flow
|
2,330
|
|
|
1
|
|
|
2,942
|
|
|
1
|
|
||||
Asset-based
|
2,535
|
|
|
37
|
|
|
1,487
|
|
|
21
|
|
||||
Equipment finance
|
—
|
|
|
—
|
|
|
43,406
|
|
|
—
|
|
||||
Consumer
|
76
|
|
|
—
|
|
|
3,208
|
|
|
—
|
|
||||
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage
|
$
|
89,748
|
|
|
$
|
865
|
|
|
$
|
58,303
|
|
|
$
|
418
|
|
Real estate construction and land
|
8,606
|
|
|
61
|
|
|
7,944
|
|
|
66
|
|
||||
Commercial
|
83,319
|
|
|
52
|
|
|
76,048
|
|
|
83
|
|
||||
Consumer
|
422
|
|
|
3
|
|
|
3,602
|
|
|
4
|
|
||||
Total
|
$
|
182,095
|
|
|
$
|
981
|
|
|
$
|
145,897
|
|
|
$
|
571
|
|
(1)
|
For Non-PCI loans and leases reported as impaired at
September 30, 2016
and
2015
, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
|
Weighted
|
|
Interest
|
|
Weighted
|
|
Interest
|
||||||||
|
Average
|
|
Income
|
|
Average
|
|
Income
|
||||||||
|
Balance
(1)
|
|
Recognized
|
|
Balance
(1)
|
|
Recognized
|
||||||||
|
(In thousands)
|
||||||||||||||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
18,220
|
|
|
$
|
781
|
|
|
$
|
13,155
|
|
|
$
|
449
|
|
Residential
|
2,325
|
|
|
42
|
|
|
2,334
|
|
|
24
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Residential
|
736
|
|
|
11
|
|
|
751
|
|
|
12
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Cash flow
|
20,417
|
|
|
26
|
|
|
13,225
|
|
|
35
|
|
||||
Asset-based
|
2,278
|
|
|
14
|
|
|
3,906
|
|
|
67
|
|
||||
Venture capital
|
2,542
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Equipment finance
|
41,587
|
|
|
—
|
|
|
6,905
|
|
|
—
|
|
||||
Consumer
|
330
|
|
|
8
|
|
|
375
|
|
|
11
|
|
||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
54,747
|
|
|
$
|
1,209
|
|
|
$
|
33,263
|
|
|
$
|
674
|
|
Residential
|
6,990
|
|
|
130
|
|
|
5,046
|
|
|
26
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
7,106
|
|
|
169
|
|
|
7,021
|
|
|
176
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Cash flow
|
2,232
|
|
|
1
|
|
|
2,917
|
|
|
86
|
|
||||
Asset-based
|
1,828
|
|
|
77
|
|
|
1,238
|
|
|
51
|
|
||||
Equipment finance
|
—
|
|
|
—
|
|
|
29,088
|
|
|
—
|
|
||||
Consumer
|
74
|
|
|
1
|
|
|
3,208
|
|
|
—
|
|
||||
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage
|
$
|
82,282
|
|
|
$
|
2,162
|
|
|
$
|
53,798
|
|
|
$
|
1,173
|
|
Real estate construction and land
|
7,842
|
|
|
180
|
|
|
7,772
|
|
|
188
|
|
||||
Commercial
|
70,884
|
|
|
118
|
|
|
57,279
|
|
|
239
|
|
||||
Consumer
|
404
|
|
|
9
|
|
|
3,583
|
|
|
11
|
|
||||
Total
|
$
|
161,412
|
|
|
$
|
2,469
|
|
|
$
|
122,432
|
|
|
$
|
1,611
|
|
(1)
|
For Non-PCI loans and leases reported as impaired at
September 30, 2016
and
2015
, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.
|
|
Three Months Ended September 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
|
|
|
Pre-
|
|
Post-
|
|
|
|
Pre-
|
|
Post-
|
||||||||||
|
|
|
Modification
|
|
Modification
|
|
|
|
Modification
|
|
Modification
|
||||||||||
|
|
|
Outstanding
|
|
Outstanding
|
|
|
|
Outstanding
|
|
Outstanding
|
||||||||||
|
Number
|
|
Recorded
|
|
Recorded
|
|
Number
|
|
Recorded
|
|
Recorded
|
||||||||||
Troubled Debt Restructurings:
|
of Loans
|
|
Investment
|
|
Investment
|
|
of Loans
|
|
Investment
|
|
Investment
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
2
|
|
|
$
|
1,147
|
|
|
$
|
1,147
|
|
|
3
|
|
|
$
|
574
|
|
|
$
|
574
|
|
Residential
|
1
|
|
|
93
|
|
|
93
|
|
|
2
|
|
|
382
|
|
|
382
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
1
|
|
|
1,245
|
|
|
1,245
|
|
|
3
|
|
|
7,333
|
|
|
7,333
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow
|
2
|
|
|
25
|
|
|
25
|
|
|
9
|
|
|
883
|
|
|
883
|
|
||||
Asset-based
|
1
|
|
|
25
|
|
|
25
|
|
|
1
|
|
|
3,431
|
|
|
3,431
|
|
||||
Equipment finance
|
1
|
|
|
39,912
|
|
|
39,912
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
1
|
|
|
21
|
|
|
21
|
|
|
1
|
|
|
106
|
|
|
106
|
|
||||
Total
|
9
|
|
|
$
|
42,468
|
|
|
$
|
42,468
|
|
|
19
|
|
|
$
|
12,709
|
|
|
$
|
12,709
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
|
|
|
Pre-
|
|
Post-
|
|
|
|
Pre-
|
|
Post-
|
||||||||||
|
|
|
Modification
|
|
Modification
|
|
|
|
Modification
|
|
Modification
|
||||||||||
|
|
|
Outstanding
|
|
Outstanding
|
|
|
|
Outstanding
|
|
Outstanding
|
||||||||||
|
Number
|
|
Recorded
|
|
Recorded
|
|
Number
|
|
Recorded
|
|
Recorded
|
||||||||||
Troubled Debt Restructurings:
|
of Loans
|
|
Investment
|
|
Investment
|
|
of Loans
|
|
Investment
|
|
Investment
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
7
|
|
|
$
|
5,287
|
|
|
$
|
5,287
|
|
|
15
|
|
|
$
|
7,080
|
|
|
$
|
7,031
|
|
Residential
|
7
|
|
|
5,136
|
|
|
5,136
|
|
|
14
|
|
|
2,426
|
|
|
2,260
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
1
|
|
|
1,245
|
|
|
1,245
|
|
|
6
|
|
|
16,947
|
|
|
16,947
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow
|
12
|
|
|
30,582
|
|
|
30,582
|
|
|
17
|
|
|
1,756
|
|
|
1,577
|
|
||||
Asset-based
|
5
|
|
|
2,158
|
|
|
2,158
|
|
|
13
|
|
|
8,139
|
|
|
8,139
|
|
||||
Equipment finance
|
7
|
|
|
44,196
|
|
|
42,572
|
|
|
9
|
|
|
53,338
|
|
|
53,338
|
|
||||
Consumer
|
4
|
|
|
819
|
|
|
111
|
|
|
2
|
|
|
197
|
|
|
197
|
|
||||
Total
|
43
|
|
|
$
|
89,423
|
|
|
$
|
87,091
|
|
|
76
|
|
|
$
|
89,883
|
|
|
$
|
89,489
|
|
|
Three Months Ended September 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
||||||||||
Troubled Debt Restructurings
|
Number
|
|
Recorded
|
|
Number
|
|
Recorded
|
|
||||||
That Subsequently Defaulted:
|
of Loans
|
|
Investment
(1)
|
|
of Loans
|
|
Investment
(1)
|
|
||||||
|
(Dollars in thousands)
|
|
||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
1,761
|
|
|
Residential
|
—
|
|
|
—
|
|
|
2
|
|
|
276
|
|
|
||
Real estate construction:
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
1
|
|
|
1,245
|
|
|
—
|
|
|
—
|
|
|
||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
Asset-based
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
||
Total
|
2
|
|
|
$
|
1,247
|
|
(2)
|
3
|
|
|
$
|
2,037
|
|
(3)
|
(1)
|
The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.
|
(2)
|
Represents the balance at
September 30, 2016
, and there were
no
charge-offs.
|
(3)
|
Represents the balance at
September 30, 2015
, and there were
no
charge-offs.
|
|
Nine Months Ended September 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
||||||||||
Troubled Debt Restructurings
|
Number
|
|
Recorded
|
|
Number
|
|
Recorded
|
|
||||||
That Subsequently Defaulted:
|
of Loans
|
|
Investment
(1)
|
|
of Loans
|
|
Investment
(1)
|
|
||||||
|
(Dollars in thousands)
|
|
||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
2,710
|
|
|
Residential
|
—
|
|
|
—
|
|
|
3
|
|
|
530
|
|
|
||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
1
|
|
|
1,245
|
|
|
—
|
|
|
—
|
|
|
||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
Asset-based
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
||
Equipment finance
|
1
|
|
|
39,912
|
|
(4)
|
—
|
|
|
—
|
|
|
||
Total
|
3
|
|
|
$
|
41,159
|
|
(2)
|
5
|
|
|
$
|
3,240
|
|
(3)
|
(1)
|
The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.
|
(2)
|
Represents the balance at
September 30, 2016
, and there were
no
charge-offs.
|
(3)
|
Represents the balance at
September 30, 2015
, and there were
no
charge-offs.
|
(4)
|
The term of the modification for this loan expired in the second quarter of 2016 and was not renewed until the third quarter of 2016. Thus, the loan was in payment default under the loan's original terms at June 30, 2016.
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
Total
|
|
Total
|
|
|
||||||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Non-PCI
|
|
PCI
|
|
Total
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
Allowance for Loan and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, beginning of period
|
$
|
29,331
|
|
|
$
|
7,853
|
|
|
$
|
93,404
|
|
|
$
|
1,412
|
|
|
$
|
132,000
|
|
|
$
|
11,289
|
|
|
$
|
143,289
|
|
Charge-offs
|
(302
|
)
|
|
—
|
|
|
(9,606
|
)
|
|
(16
|
)
|
|
(9,924
|
)
|
|
(531
|
)
|
|
(10,455
|
)
|
|||||||
Recoveries
|
2,414
|
|
|
27
|
|
|
3,553
|
|
|
56
|
|
|
6,050
|
|
|
—
|
|
|
6,050
|
|
|||||||
Provision
|
5,498
|
|
|
803
|
|
|
2,240
|
|
|
80
|
|
|
8,621
|
|
|
471
|
|
|
9,092
|
|
|||||||
Balance, end of period
|
$
|
36,941
|
|
|
$
|
8,683
|
|
|
$
|
89,591
|
|
|
$
|
1,532
|
|
|
$
|
136,747
|
|
|
$
|
11,229
|
|
|
$
|
147,976
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
Total
|
|
Total
|
|
|
||||||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Non-PCI
|
|
PCI
|
|
Total
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
Allowance for Loan and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, beginning of period
|
$
|
36,654
|
|
|
$
|
7,137
|
|
|
$
|
61,082
|
|
|
$
|
661
|
|
|
$
|
105,534
|
|
|
$
|
9,577
|
|
|
$
|
115,111
|
|
Charge-offs
|
(1,905
|
)
|
|
—
|
|
|
(14,306
|
)
|
|
(798
|
)
|
|
(17,009
|
)
|
|
(862
|
)
|
|
(17,871
|
)
|
|||||||
Recoveries
|
4,352
|
|
|
185
|
|
|
4,179
|
|
|
95
|
|
|
8,811
|
|
|
—
|
|
|
8,811
|
|
|||||||
Provision (negative provision)
|
(2,160
|
)
|
|
1,361
|
|
|
38,636
|
|
|
1,574
|
|
|
39,411
|
|
|
2,514
|
|
|
41,925
|
|
|||||||
Balance, end of period
|
$
|
36,941
|
|
|
$
|
8,683
|
|
|
$
|
89,591
|
|
|
$
|
1,532
|
|
|
$
|
136,747
|
|
|
$
|
11,229
|
|
|
$
|
147,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Amount of the allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
applicable to loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
7,299
|
|
|
$
|
11
|
|
|
$
|
23,631
|
|
|
$
|
179
|
|
|
$
|
31,120
|
|
|
|
|
|
||||
Collectively evaluated for impairment
|
$
|
29,642
|
|
|
$
|
8,672
|
|
|
$
|
65,960
|
|
|
$
|
1,353
|
|
|
$
|
105,627
|
|
|
|
|
|
||||
Acquired loans with deteriorated credit quality
|
|
|
|
|
|
|
|
|
|
|
$
|
11,229
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
The ending balance of the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
loan and lease portfolio is
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
composed of loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
139,059
|
|
|
$
|
8,700
|
|
|
$
|
92,637
|
|
|
$
|
376
|
|
|
$
|
240,772
|
|
|
|
|
|
||||
Collectively evaluated for impairment
|
$
|
5,325,882
|
|
|
$
|
822,815
|
|
|
$
|
7,977,050
|
|
|
$
|
256,128
|
|
|
$
|
14,381,875
|
|
|
|
|
|
||||
Acquired loans with deteriorated credit quality
|
|
|
|
|
|
|
|
|
|
|
$
|
120,199
|
|
|
|
||||||||||||
Ending balance of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
loans and leases
|
$
|
5,464,941
|
|
|
$
|
831,515
|
|
|
$
|
8,069,687
|
|
|
$
|
256,504
|
|
|
$
|
14,622,647
|
|
|
$
|
120,199
|
|
|
$
|
14,742,846
|
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
Total
|
|
Total
|
|
|
||||||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Non-PCI
|
|
PCI
|
|
Total
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
Allowance for Loan and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, beginning of period
|
$
|
29,908
|
|
|
$
|
3,908
|
|
|
$
|
50,531
|
|
|
$
|
700
|
|
|
$
|
85,047
|
|
|
$
|
14,328
|
|
|
$
|
99,375
|
|
Charge-offs
|
(252
|
)
|
|
—
|
|
|
(4,035
|
)
|
|
(25
|
)
|
|
(4,312
|
)
|
|
(1,119
|
)
|
|
(5,431
|
)
|
|||||||
Recoveries
|
288
|
|
|
390
|
|
|
239
|
|
|
164
|
|
|
1,081
|
|
|
—
|
|
|
1,081
|
|
|||||||
Provision (negative provision)
|
4,355
|
|
|
93
|
|
|
6,137
|
|
|
(85
|
)
|
|
10,500
|
|
|
(2,254
|
)
|
|
8,246
|
|
|||||||
Balance, end of period
|
$
|
34,299
|
|
|
$
|
4,391
|
|
|
$
|
52,872
|
|
|
$
|
754
|
|
|
$
|
92,316
|
|
|
$
|
10,955
|
|
|
$
|
103,271
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
Total
|
|
Total
|
|
|
||||||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Non-PCI
|
|
PCI
|
|
Total
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
Allowance for Loan and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, beginning of period
|
$
|
25,097
|
|
|
$
|
4,248
|
|
|
$
|
39,858
|
|
|
$
|
1,253
|
|
|
$
|
70,456
|
|
|
$
|
13,999
|
|
|
$
|
84,455
|
|
Charge-offs
|
(1,767
|
)
|
|
—
|
|
|
(12,964
|
)
|
|
(115
|
)
|
|
(14,846
|
)
|
|
(1,698
|
)
|
|
(16,544
|
)
|
|||||||
Recoveries
|
1,783
|
|
|
1,034
|
|
|
2,393
|
|
|
392
|
|
|
5,602
|
|
|
112
|
|
|
5,714
|
|
|||||||
Provision (negative provision)
|
9,186
|
|
|
(891
|
)
|
|
23,585
|
|
|
(776
|
)
|
|
31,104
|
|
|
(1,458
|
)
|
|
29,646
|
|
|||||||
Balance, end of period
|
$
|
34,299
|
|
|
$
|
4,391
|
|
|
$
|
52,872
|
|
|
$
|
754
|
|
|
$
|
92,316
|
|
|
$
|
10,955
|
|
|
$
|
103,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Amount of the allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
applicable to loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
1,443
|
|
|
$
|
31
|
|
|
$
|
10,343
|
|
|
$
|
158
|
|
|
$
|
11,975
|
|
|
|
|
|
||||
Collectively evaluated for impairment
|
$
|
32,856
|
|
|
$
|
4,360
|
|
|
$
|
42,529
|
|
|
$
|
596
|
|
|
$
|
80,341
|
|
|
|
|
|
||||
Acquired loans with deteriorated credit quality
|
|
|
|
|
|
|
|
|
|
|
$
|
10,955
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
The ending balance of the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
loan and lease portfolio is
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
composed of loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
58,393
|
|
|
$
|
8,047
|
|
|
$
|
76,088
|
|
|
$
|
3,540
|
|
|
$
|
146,068
|
|
|
|
|
|
||||
Collectively evaluated for impairment
|
$
|
5,446,694
|
|
|
$
|
364,433
|
|
|
$
|
6,175,440
|
|
|
$
|
126,281
|
|
|
$
|
12,112,848
|
|
|
|
|
|
||||
Acquired loans with deteriorated credit quality
|
|
|
|
|
|
|
|
|
|
|
$
|
193,289
|
|
|
|
||||||||||||
Ending balance of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
loans and leases
|
$
|
5,505,087
|
|
|
$
|
372,480
|
|
|
$
|
6,251,528
|
|
|
$
|
129,821
|
|
|
$
|
12,258,916
|
|
|
$
|
193,289
|
|
|
$
|
12,452,205
|
|
|
September 30,
|
|
December 31,
|
||||
Property Type:
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Commercial real estate
|
$
|
—
|
|
|
$
|
487
|
|
Construction and land development
|
13,800
|
|
|
13,801
|
|
||
Single family residence
|
—
|
|
|
952
|
|
||
Total other real estate owned, net
|
13,800
|
|
|
15,240
|
|
||
Other foreclosed assets
|
1,313
|
|
|
6,880
|
|
||
Total foreclosed assets, net
|
$
|
15,113
|
|
|
$
|
22,120
|
|
|
Foreclosed
|
||
|
Assets
|
||
|
(In thousands)
|
||
Balance, December 31, 2015
|
$
|
22,120
|
|
Foreclosures
|
129
|
|
|
Reductions related to sales
|
(7,136
|
)
|
|
Balance, September 30, 2016
|
$
|
15,113
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Non‑recourse debt
|
$
|
1,011
|
|
|
6.31
|
%
|
|
$
|
3,914
|
|
|
5.49
|
%
|
FHLB secured advances
|
410,000
|
|
|
0.37
|
%
|
|
618,000
|
|
|
0.27
|
%
|
||
FHLB unsecured overnight advance
|
90,000
|
|
|
0.35
|
%
|
|
—
|
|
|
—
|
%
|
||
American Financial Exchange overnight borrowing
|
40,000
|
|
|
0.55
|
%
|
|
—
|
|
|
—
|
%
|
||
Total borrowings
|
$
|
541,011
|
|
|
|
|
$
|
621,914
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|
Date
|
|
Maturity
|
|
Rate Index
|
||||||||||
Series:
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Issued
|
|
Date
|
|
(Quarterly Reset)
|
||||||
|
(Dollars in thousands)
|
|
|
|
|
|
|
||||||||||||
Trust V
|
$
|
10,310
|
|
|
3.96
|
%
|
|
$
|
10,310
|
|
|
3.63
|
%
|
|
8/15/2003
|
|
9/17/2033
|
|
3 month LIBOR + 3.10
|
Trust VI
|
10,310
|
|
|
3.90
|
%
|
|
10,310
|
|
|
3.39
|
%
|
|
9/3/2003
|
|
9/15/2033
|
|
3 month LIBOR + 3.05
|
||
Trust CII
|
5,155
|
|
|
3.81
|
%
|
|
5,155
|
|
|
3.35
|
%
|
|
9/17/2003
|
|
9/17/2033
|
|
3 month LIBOR + 2.95
|
||
Trust VII
|
61,856
|
|
|
3.51
|
%
|
|
61,856
|
|
|
3.07
|
%
|
|
2/5/2004
|
|
4/23/2034
|
|
3 month LIBOR + 2.75
|
||
Trust CIII
|
20,619
|
|
|
2.54
|
%
|
|
20,619
|
|
|
2.20
|
%
|
|
8/15/2005
|
|
9/15/2035
|
|
3 month LIBOR + 1.69
|
||
Trust FCCI
|
16,495
|
|
|
2.45
|
%
|
|
16,495
|
|
|
2.11
|
%
|
|
1/25/2007
|
|
3/15/2037
|
|
3 month LIBOR + 1.60
|
||
Trust FCBI
|
10,310
|
|
|
2.40
|
%
|
|
10,310
|
|
|
2.06
|
%
|
|
9/30/2005
|
|
12/15/2035
|
|
3 month LIBOR + 1.55
|
||
Trust CS 2005-1
|
82,475
|
|
|
2.80
|
%
|
|
82,475
|
|
|
2.46
|
%
|
|
11/21/2005
|
|
12/15/2035
|
|
3 month LIBOR + 1.95
|
||
Trust CS 2005-2
|
128,866
|
|
|
2.71
|
%
|
|
128,866
|
|
|
2.27
|
%
|
|
12/14/2005
|
|
1/30/2036
|
|
3 month LIBOR + 1.95
|
||
Trust CS 2006-1
|
51,545
|
|
|
2.71
|
%
|
|
51,545
|
|
|
2.27
|
%
|
|
2/22/2006
|
|
4/30/2036
|
|
3 month LIBOR + 1.95
|
||
Trust CS 2006-2
|
51,550
|
|
|
2.71
|
%
|
|
51,550
|
|
|
2.27
|
%
|
|
9/27/2006
|
|
10/30/2036
|
|
3 month LIBOR + 1.95
|
||
Trust CS 2006-3
(1)
|
28,940
|
|
|
1.75
|
%
|
|
28,007
|
|
|
1.98
|
%
|
|
9/29/2006
|
|
10/30/2036
|
|
3 month EURIBOR + 2.05
|
||
Trust CS 2006-4
|
16,470
|
|
|
2.71
|
%
|
|
16,470
|
|
|
2.27
|
%
|
|
12/5/2006
|
|
1/30/2037
|
|
3 month LIBOR + 1.95
|
||
Trust CS 2006-5
|
6,650
|
|
|
2.71
|
%
|
|
6,650
|
|
|
2.27
|
%
|
|
12/19/2006
|
|
1/30/2037
|
|
3 month LIBOR + 1.95
|
||
Trust CS 2007-2
|
39,177
|
|
|
2.71
|
%
|
|
39,177
|
|
|
2.27
|
%
|
|
6/13/2007
|
|
7/30/2037
|
|
3 month LIBOR + 1.95
|
||
Gross subordinated debentures
|
540,728
|
|
|
|
|
539,795
|
|
|
|
|
|
|
|
|
|
||||
Unamortized discount
(2)
|
(99,616
|
)
|
|
|
|
(103,795
|
)
|
|
|
|
|
|
|
|
|
||||
Net subordinated debentures
|
$
|
441,112
|
|
|
|
|
$
|
436,000
|
|
|
|
|
|
|
|
|
|
(1)
|
Denomination is in Euros with a value of
€25.8 million
.
|
(2)
|
Amount represents the fair value adjustment on subordinated debentures assumed in acquisitions.
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Loan commitments to extend credit
|
$
|
4,156,147
|
|
|
$
|
3,580,655
|
|
Standby letters of credit
|
204,616
|
|
|
210,292
|
|
||
Commitments to purchase equipment being acquired for lease to others
|
—
|
|
|
6,663
|
|
||
|
$
|
4,360,763
|
|
|
$
|
3,797,610
|
|
•
|
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2: Observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data, either directly or indirectly, for substantially the full term of the financial instrument. This category generally includes municipal securities, agency residential and commercial MBS, collateralized loan obligations, registered publicly rated private label CMOs and asset-backed securitizations.
|
•
|
Level 3: Inputs to a valuation methodology that are unobservable, supported by little or no market activity, and significant to the fair value measurement. These valuation methodologies generally include pricing models, discounted cash flow models, or a determination of fair value that requires significant management judgment or estimation. This category also includes observable inputs from a pricing service not corroborated by observable market data, and includes our non-rated private label CMOs, non-rated private label asset-backed securities, and equity warrants.
|
|
Fair Value Measurements as of
|
||||||||||||||
|
September 30, 2016
|
||||||||||||||
Measured on a Recurring Basis:
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities available‑for‑sale:
|
|
|
|
|
|
|
|
||||||||
Residential MBS and CMOs:
|
|
|
|
|
|
|
|
||||||||
Agency MBS
|
$
|
528,941
|
|
|
$
|
—
|
|
|
$
|
528,941
|
|
|
$
|
—
|
|
Agency CMOs
|
157,231
|
|
|
—
|
|
|
157,231
|
|
|
—
|
|
||||
Private label CMOs
|
138,625
|
|
|
—
|
|
|
75,804
|
|
|
62,821
|
|
||||
Municipal securities
|
1,522,494
|
|
|
—
|
|
|
1,522,494
|
|
|
—
|
|
||||
Agency commercial MBS
|
531,273
|
|
|
—
|
|
|
531,273
|
|
|
—
|
|
||||
Corporate debt securities
|
49,011
|
|
|
—
|
|
|
49,011
|
|
|
—
|
|
||||
Collateralized loan obligations
|
156,647
|
|
|
—
|
|
|
156,647
|
|
|
—
|
|
||||
SBA securities
|
187,300
|
|
|
—
|
|
|
187,300
|
|
|
—
|
|
||||
Asset-backed and other securities
|
69,813
|
|
|
2,177
|
|
|
52,612
|
|
|
15,024
|
|
||||
Total securities available-for-sale
|
3,341,335
|
|
|
2,177
|
|
|
3,261,313
|
|
|
77,845
|
|
||||
Derivative assets
|
1,261
|
|
|
—
|
|
|
1,261
|
|
|
—
|
|
||||
Equity warrants
|
5,108
|
|
|
—
|
|
|
—
|
|
|
5,108
|
|
||||
Total recurring assets
|
$
|
3,347,704
|
|
|
$
|
2,177
|
|
|
$
|
3,262,574
|
|
|
$
|
82,953
|
|
Derivative liabilities
|
$
|
1,829
|
|
|
$
|
—
|
|
|
$
|
1,829
|
|
|
$
|
—
|
|
|
Fair Value Measurements as of
|
||||||||||||||
|
December 31, 2015
|
||||||||||||||
Measured on a Recurring Basis:
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities available‑for‑sale:
|
|
|
|
|
|
|
|
||||||||
Residential MBS and CMOs:
|
|
|
|
|
|
|
|
||||||||
Agency MBS
|
$
|
667,840
|
|
|
$
|
—
|
|
|
$
|
667,840
|
|
|
$
|
—
|
|
Agency CMOs
|
194,755
|
|
|
—
|
|
|
194,755
|
|
|
—
|
|
||||
Private label CMOs
|
144,796
|
|
|
—
|
|
|
63,555
|
|
|
81,241
|
|
||||
Municipal securities
|
1,547,331
|
|
|
—
|
|
|
1,547,331
|
|
|
—
|
|
||||
Agency commercial MBS
|
391,441
|
|
|
—
|
|
|
391,441
|
|
|
—
|
|
||||
Corporate debt securities
|
48,424
|
|
|
—
|
|
|
48,424
|
|
|
—
|
|
||||
Collateralized loan obligations
|
132,189
|
|
|
—
|
|
|
132,189
|
|
|
—
|
|
||||
SBA securities
|
211,157
|
|
|
—
|
|
|
211,157
|
|
|
—
|
|
||||
US Treasury securities
|
69,380
|
|
|
69,380
|
|
|
—
|
|
|
—
|
|
||||
Agency debt securities
|
36,913
|
|
|
—
|
|
|
36,913
|
|
|
—
|
|
||||
Asset-backed and other securities
|
115,211
|
|
|
2,562
|
|
|
94,449
|
|
|
18,200
|
|
||||
Total securities available-for-sale
|
3,559,437
|
|
|
71,942
|
|
|
3,388,054
|
|
|
99,441
|
|
||||
Derivative assets
|
11,919
|
|
|
—
|
|
|
11,919
|
|
|
—
|
|
||||
Equity warrants
|
4,914
|
|
|
—
|
|
|
—
|
|
|
4,914
|
|
||||
Total recurring assets
|
$
|
3,576,270
|
|
|
$
|
71,942
|
|
|
$
|
3,399,973
|
|
|
$
|
104,355
|
|
Derivative liabilities
|
$
|
1,397
|
|
|
$
|
—
|
|
|
$
|
1,397
|
|
|
$
|
—
|
|
|
Private Label CMOs
|
|
Asset-Backed Securities
|
||||
|
|
|
Weighted
|
|
|
|
Weighted
|
|
Range
|
|
Average
|
|
Range
|
|
Average
|
Unobservable Inputs:
|
of Inputs
|
|
Input
|
|
of Inputs
|
|
Input
|
Voluntary annual prepayment speeds
|
0.0% - 27.6%
|
|
11.5%
|
|
5% - 40%
|
|
14.7%
|
Annual default rates
|
0.0% - 15.0%
|
|
2.1%
|
|
1% - 8%
|
|
3.7%
|
Loss severity rates
|
0.0% - 94.5%
|
|
33.1%
|
|
10% - 91%
|
|
54.3%
|
Discount rates
|
0.9% - 15.0%
|
|
3.6%
|
|
2.1% - 7.2%
|
|
2.9%
|
|
Equity Warrants
|
|
Weighted
|
|
Average
|
Unobservable Inputs:
|
Input
|
Volatility
|
19.3%
|
Risk-free interest rate
|
1.0%
|
Remaining life assumption (in years)
|
3.8
|
|
Private
|
|
Asset-Backed
|
|
Equity
|
||||||
|
Label CMOs
|
|
Securities
|
|
Warrants
|
||||||
|
(In thousands)
|
||||||||||
Balance, December 31, 2015
|
$
|
81,241
|
|
|
$
|
18,200
|
|
|
$
|
4,914
|
|
Total included in earnings
|
1,252
|
|
|
47
|
|
|
301
|
|
|||
Total included in other comprehensive income
|
(1,399
|
)
|
|
(5
|
)
|
|
—
|
|
|||
Sales
|
—
|
|
|
—
|
|
|
(1,597
|
)
|
|||
Issuances
|
—
|
|
|
—
|
|
|
1,490
|
|
|||
Net settlements
|
(18,273
|
)
|
|
(3,218
|
)
|
|
—
|
|
|||
Balance, September 30, 2016
|
$
|
62,821
|
|
|
$
|
15,024
|
|
|
$
|
5,108
|
|
|
Fair Value Measurement as of
|
||||||||||||||
|
December 31, 2015
|
||||||||||||||
Measured on a Non‑Recurring Basis:
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Impaired Non‑PCI loans
|
$
|
40,817
|
|
|
$
|
—
|
|
|
$
|
9,367
|
|
|
$
|
31,450
|
|
Other real estate owned
|
14,101
|
|
|
—
|
|
|
14,101
|
|
|
—
|
|
||||
Investments carried at cost
|
107
|
|
|
—
|
|
|
—
|
|
|
107
|
|
||||
Total non-recurring
|
$
|
55,025
|
|
|
$
|
—
|
|
|
$
|
23,468
|
|
|
$
|
31,557
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
Losses on Assets Measured on a Non‑Recurring Basis:
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Impaired Non‑PCI loans
|
$
|
12,935
|
|
|
$
|
873
|
|
|
$
|
27,301
|
|
|
$
|
7,623
|
|
Other real estate owned
|
—
|
|
|
4,758
|
|
|
—
|
|
|
4,882
|
|
||||
Total losses
|
$
|
12,935
|
|
|
$
|
5,631
|
|
|
$
|
27,301
|
|
|
$
|
12,505
|
|
|
|
|
|
Valuation
|
|
Unobservable
|
|
|
|
Weighted
|
||
Asset:
|
|
Fair Value
|
|
Technique
|
|
Inputs
|
|
Range
|
|
Average
|
||
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
||
Impaired Non-PCI loans
|
|
$
|
45,571
|
|
|
Discounted cash flows
|
|
Discount rates
|
|
0% - 8.00%
|
|
6.12%
|
|
|
73,775
|
|
|
Third party appraisals
|
|
Discounts
|
|
9.00% - 22.00%
|
|
17.17%
|
|
|
|
10,986
|
|
|
Third party appraisals
|
|
No discounts
|
|
|
|
|
|
Total non-recurring Level 3
|
|
$
|
130,332
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
||||||||||||||||||
|
Carrying or
Contract
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(
In thousands
)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
286,371
|
|
|
$
|
286,371
|
|
|
$
|
286,371
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest‑earning deposits in financial institutions
|
253,994
|
|
|
253,994
|
|
|
253,994
|
|
|
—
|
|
|
—
|
|
|||||
Securities available‑for‑sale
|
3,341,335
|
|
|
3,341,335
|
|
|
2,177
|
|
|
3,261,313
|
|
|
77,845
|
|
|||||
Investment in FHLB stock
|
19,386
|
|
|
19,386
|
|
|
—
|
|
|
19,386
|
|
|
—
|
|
|||||
Investments carried at cost
|
1,700
|
|
|
4,408
|
|
|
—
|
|
|
—
|
|
|
4,408
|
|
|||||
Loans and leases, net
|
14,594,870
|
|
|
14,707,667
|
|
|
—
|
|
|
817
|
|
|
14,706,850
|
|
|||||
Derivative assets
|
1,261
|
|
|
1,261
|
|
|
—
|
|
|
1,261
|
|
|
—
|
|
|||||
Equity warrants
|
5,108
|
|
|
5,108
|
|
|
—
|
|
|
—
|
|
|
5,108
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, money market, interest checking,
|
|
|
|
|
|
|
|
|
|
||||||||||
and savings deposits
|
13,092,753
|
|
|
13,092,753
|
|
|
—
|
|
|
13,092,753
|
|
|
—
|
|
|||||
Time deposits
|
2,552,915
|
|
|
2,549,662
|
|
|
—
|
|
|
2,549,662
|
|
|
—
|
|
|||||
Borrowings
|
541,011
|
|
|
541,067
|
|
|
340,000
|
|
|
201,067
|
|
|
—
|
|
|||||
Subordinated debentures
|
441,112
|
|
|
424,874
|
|
|
—
|
|
|
424,874
|
|
|
—
|
|
|||||
Derivative liabilities
|
1,829
|
|
|
1,829
|
|
|
—
|
|
|
1,829
|
|
|
—
|
|
|
December 31, 2015
|
||||||||||||||||||
|
Carrying or
Contract
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(
In thousands
)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
161,020
|
|
|
$
|
161,020
|
|
|
$
|
161,020
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest‑earning deposits in financial institutions
|
235,466
|
|
|
235,466
|
|
|
235,466
|
|
|
—
|
|
|
—
|
|
|||||
Securities available‑for‑sale
|
3,559,437
|
|
|
3,559,437
|
|
|
71,942
|
|
|
3,388,054
|
|
|
99,441
|
|
|||||
Investment in FHLB stock
|
19,710
|
|
|
19,710
|
|
|
—
|
|
|
19,710
|
|
|
—
|
|
|||||
Investments carried at cost
|
2,267
|
|
|
6,789
|
|
|
—
|
|
|
—
|
|
|
6,789
|
|
|||||
Loans and leases, net
|
14,363,143
|
|
|
14,393,558
|
|
|
—
|
|
|
9,367
|
|
|
14,384,191
|
|
|||||
Derivative assets
|
11,919
|
|
|
11,919
|
|
|
—
|
|
|
11,919
|
|
|
—
|
|
|||||
Equity warrants
|
4,914
|
|
|
4,914
|
|
|
—
|
|
|
—
|
|
|
4,914
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, money market, interest checking,
|
|
|
|
|
|
|
|
|
|
||||||||||
and savings deposits
|
11,513,826
|
|
|
11,513,826
|
|
|
—
|
|
|
11,513,826
|
|
|
—
|
|
|||||
Time deposits
|
4,152,356
|
|
|
4,152,920
|
|
|
—
|
|
|
4,152,920
|
|
|
—
|
|
|||||
Borrowings
|
621,914
|
|
|
622,438
|
|
|
618,000
|
|
|
4,438
|
|
|
—
|
|
|||||
Subordinated debentures
|
436,000
|
|
|
419,762
|
|
|
—
|
|
|
419,762
|
|
|
—
|
|
|||||
Derivative liabilities
|
1,397
|
|
|
1,397
|
|
|
—
|
|
|
1,397
|
|
|
—
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
Basic Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings
|
$
|
93,895
|
|
|
$
|
82,168
|
|
|
$
|
69,616
|
|
|
$
|
266,519
|
|
|
$
|
227,778
|
|
Less: Earnings allocated to unvested restricted stock (1)
|
(1,048
|
)
|
|
(863
|
)
|
|
(649
|
)
|
|
(2,983
|
)
|
|
(2,213
|
)
|
|||||
Net earnings allocated to common shares
|
$
|
92,847
|
|
|
$
|
81,305
|
|
|
$
|
68,967
|
|
|
$
|
263,536
|
|
|
$
|
225,565
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average basic shares and unvested restricted
|
|
|
|
|
|
|
|
|
|
||||||||||
stock outstanding
|
121,818
|
|
|
121,799
|
|
|
103,048
|
|
|
121,739
|
|
|
103,038
|
|
|||||
Less: Weighted-average unvested restricted stock
|
|
|
|
|
|
|
|
|
|
||||||||||
outstanding
|
(1,401
|
)
|
|
(1,481
|
)
|
|
(985
|
)
|
|
(1,425
|
)
|
|
(1,055
|
)
|
|||||
Weighted-average basic shares outstanding
|
120,417
|
|
|
120,318
|
|
|
102,063
|
|
|
120,314
|
|
|
101,983
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per share
|
$
|
0.77
|
|
|
$
|
0.68
|
|
|
$
|
0.68
|
|
|
$
|
2.19
|
|
|
$
|
2.21
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings allocated to common shares
|
$
|
92,847
|
|
|
$
|
81,305
|
|
|
$
|
68,967
|
|
|
$
|
263,536
|
|
|
$
|
225,565
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average basic shares outstanding
|
120,417
|
|
|
120,318
|
|
|
102,063
|
|
|
120,314
|
|
|
101,983
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share
|
$
|
0.77
|
|
|
$
|
0.68
|
|
|
$
|
0.68
|
|
|
$
|
2.19
|
|
|
$
|
2.21
|
|
(1)
|
Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.
|
•
|
our ability to complete future acquisitions and to successfully integrate such acquired entities or achieve expected benefits, synergies and/or operating efficiencies within expected time frames;
|
•
|
business disruption following the Square 1 acquisition;
|
•
|
the reaction to the Square 1 acquisition of the companies’ customers, employees and counterparties;
|
•
|
changes in our stock price;
|
•
|
the need to retain capital for strategic or regulatory reasons;
|
•
|
the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business and business strategies;
|
•
|
compression of the net interest margin due to changes in our interest rate environment, loan products, spreads on newly originated loans and leases and/or asset mix;
|
•
|
credit quality deterioration or pronounced and sustained reduction in market values or other economic factors which adversely affect our borrowers’ ability to repay loans and leases and/or require an increased provision for loan and lease losses;
|
•
|
changes in economic or competitive market conditions could negatively impact investment or lending opportunities or product pricing and services;
|
•
|
reduced demand for our services due to strategic or regulatory reasons;
|
•
|
our inability to grow deposits and access wholesale funding sources;
|
•
|
legislative or regulatory requirements or changes could negatively impact our business, including an increase to capital requirements;
|
•
|
higher than expected loan repayments;
|
•
|
higher than anticipated delinquencies, charge-offs, and loan and lease losses;
|
•
|
the impact of asset/liability repricing risk and liquidity risk on net interest margin and the value of investments;
|
•
|
increased costs to manage and sell foreclosed assets;
|
•
|
higher than anticipated increases in operating expenses;
|
•
|
lower than expected dividends paid from the Bank to the holding company;
|
•
|
a deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a noncash charge to net income;
|
•
|
the success and timing of other business strategies;
|
•
|
changes in the forward yield curve;
|
•
|
changes in tax laws or regulations affecting our business, including the disallowance of tax benefits by tax authorities and/or changes in tax filing jurisdictions or entity classifications; and
|
•
|
other risk factors described in our audited consolidated financial statements, and other risk factors described in this Form 10-Q and documents filed by PacWest with the U.S. Securities and Exchange Commission (“SEC”).
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
Efficiency Ratio:
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||
Noninterest expense
|
$
|
110,710
|
|
|
$
|
110,081
|
|
|
$
|
90,139
|
|
|
$
|
331,479
|
|
|
$
|
259,775
|
|
|
Less:
|
Intangible asset amortization
|
4,224
|
|
|
4,371
|
|
|
1,497
|
|
|
13,341
|
|
|
4,500
|
|
|||||
|
Foreclosed assets (income) expense, net
|
(248
|
)
|
|
(3
|
)
|
|
4,521
|
|
|
(812
|
)
|
|
2,517
|
|
|||||
|
Acquisition, integration, and reorganization costs
|
—
|
|
|
—
|
|
|
747
|
|
|
200
|
|
|
3,647
|
|
|||||
Noninterest expense used for efficiency ratio
|
$
|
106,734
|
|
|
$
|
105,713
|
|
|
$
|
83,374
|
|
|
$
|
318,750
|
|
|
$
|
249,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (tax equivalent)
|
$
|
239,473
|
|
|
$
|
238,667
|
|
|
$
|
195,274
|
|
|
$
|
727,680
|
|
|
$
|
600,855
|
|
|
Noninterest income
|
26,920
|
|
|
22,121
|
|
|
15,758
|
|
|
83,580
|
|
|
56,252
|
|
||||||
Net revenues
|
266,393
|
|
|
260,788
|
|
|
211,032
|
|
|
811,260
|
|
|
657,107
|
|
||||||
Less:
|
Gain on sale of securities
|
382
|
|
|
478
|
|
|
655
|
|
|
8,970
|
|
|
3,744
|
|
|||||
Net revenues used for efficiency ratio
|
$
|
266,011
|
|
|
$
|
260,310
|
|
|
$
|
210,377
|
|
|
$
|
802,290
|
|
|
$
|
653,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio
|
40.1
|
%
|
|
40.6
|
%
|
|
39.6
|
%
|
|
39.7
|
%
|
|
38.1
|
%
|
•
|
Core net interest margin and core loan and lease yield:
The tax equivalent net interest margin ("NIM") and loan and lease yield are impacted by volatility in accelerated accretion of acquisition discounts due to the prepayment of acquired loans and leases. We disclose the core NIM and core loan and lease yield to provide an indication of what these measures would be without the effects of accelerated accretion as this indicates a "normalized" measure and a more accurate indicator of future performance. See “-Results of Operations-
Net Interest Income
” for a reconciliation of these non-GAAP measurements to the GAAP measurements for the periods presented.
|
•
|
Adjusted allowance for credit losses to loans and leases:
As the allowance for credit losses takes into consideration credit deterioration on acquired loans and leases only after the purchase date and an estimate of credit losses is included in their initial fair values, we disclose two adjusted allowance for credit losses to loans and leases ratios in addition to the allowance for credit losses to loans and leases. The first adjusted allowance for credit losses to loans and leases excludes the allowance related to acquired loans and leases from the numerator and the acquired loans and leases from the denominator. The second ratio excludes the remaining unamortized purchase discount from both the numerator and the denominator. We disclose these ratios to more clearly illustrate the amounts established on our balance sheet for credit losses related to acquired loans in addition to the allowance for credit losses. See "-Balance Sheet Analysis-
Allowance for Credit Losses on Non-PCI Loans and Leases
" for a reconciliation of these non-GAAP measurements to the GAAP measurement as of the dates presented.
|
•
|
Return on average tangible equity, tangible common equity ratio, and tangible book value per share:
Given that the use of these measures is prevalent among banking regulators, investors and analysts, we disclose them in addition to the related GAAP measures of return on average equity, equity to assets ratio, and book value per share, respectively. The reconciliation of these non-GAAP measurements to the GAAP measurements is presented in the following tables for and as of the periods presented:
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
Return on Average Tangible Equity
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||
Net earnings
|
$
|
93,895
|
|
|
$
|
82,168
|
|
|
$
|
69,616
|
|
|
$
|
266,519
|
|
|
$
|
227,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average stockholders' equity
|
$
|
4,530,701
|
|
|
$
|
4,483,593
|
|
|
$
|
3,572,765
|
|
|
$
|
4,484,468
|
|
|
$
|
3,551,763
|
|
|
Less:
|
Average intangible assets
|
2,217,564
|
|
|
2,222,007
|
|
|
1,741,902
|
|
|
2,222,346
|
|
|
1,740,911
|
|
|||||
Average tangible common equity
|
$
|
2,313,137
|
|
|
$
|
2,261,586
|
|
|
$
|
1,830,863
|
|
|
$
|
2,262,122
|
|
|
$
|
1,810,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average equity
(1)
|
8.24
|
%
|
|
7.37
|
%
|
|
7.73
|
%
|
|
7.94
|
%
|
|
8.57
|
%
|
||||||
Return on average tangible equity
(2)
|
16.15
|
%
|
|
14.61
|
%
|
|
15.09
|
%
|
|
15.74
|
%
|
|
16.82
|
%
|
(1)
|
Annualized net earnings divided by average stockholders' equity.
|
(2)
|
Annualized net earnings divided by average tangible common equity.
|
Tangible Common Equity Ratio/
|
September 30,
|
|
December 31,
|
||||
Tangible Book Value Per Share
|
2016
|
|
2015
|
||||
|
(Dollars in thousands, except per share data)
|
||||||
PacWest Bancorp Consolidated:
|
|
|
|
||||
Stockholders’ equity
|
$
|
4,542,595
|
|
|
$
|
4,397,691
|
|
Less: Intangible assets
|
2,213,491
|
|
|
2,229,511
|
|
||
Tangible common equity
|
$
|
2,329,104
|
|
|
$
|
2,168,180
|
|
Total assets
|
$
|
21,315,291
|
|
|
$
|
21,288,490
|
|
Less: Intangible assets
|
2,213,491
|
|
|
2,229,511
|
|
||
Tangible assets
|
$
|
19,101,800
|
|
|
$
|
19,058,979
|
|
Equity to assets ratio
|
21.31
|
%
|
|
20.66
|
%
|
||
Tangible common equity ratio
(1)
|
12.19
|
%
|
|
11.38
|
%
|
||
Book value per share
|
$
|
37.29
|
|
|
$
|
36.22
|
|
Tangible book value per share
|
$
|
19.12
|
|
|
$
|
17.86
|
|
Shares outstanding
|
121,817,524
|
|
|
121,413,727
|
|
||
|
|
|
|
||||
Pacific Western Bank:
|
|
|
|
||||
Stockholder's equity
|
$
|
4,416,623
|
|
|
$
|
4,276,279
|
|
Less: Intangible assets
|
2,213,491
|
|
|
2,229,511
|
|
||
Tangible common equity
|
$
|
2,203,132
|
|
|
$
|
2,046,768
|
|
Total assets
|
$
|
21,266,705
|
|
|
$
|
21,180,689
|
|
Less: Intangible assets
|
2,213,491
|
|
|
2,229,511
|
|
||
Tangible assets
|
$
|
19,053,214
|
|
|
$
|
18,951,178
|
|
Equity to assets ratio
|
20.77
|
%
|
|
20.19
|
%
|
||
Tangible common equity ratio
(1)
|
11.56
|
%
|
|
10.80
|
%
|
(1)
|
Tangible common equity divided by tangible assets.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
Performance Measures:
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share
|
$
|
0.77
|
|
|
$
|
0.68
|
|
|
$
|
0.68
|
|
|
$
|
2.19
|
|
|
$
|
2.21
|
|
Annualized return on:
|
|
|
|
|
|
|
|
|
|
||||||||||
Average assets
|
1.77
|
%
|
|
1.57
|
%
|
|
1.65
|
%
|
|
1.69
|
%
|
|
1.85
|
%
|
|||||
Average tangible equity
(1)(2)
|
16.15
|
%
|
|
14.61
|
%
|
|
15.09
|
%
|
|
15.74
|
%
|
|
16.82
|
%
|
|||||
Net interest margin (tax equivalent)
|
5.26
|
%
|
|
5.33
|
%
|
|
5.46
|
%
|
|
5.37
|
%
|
|
5.76
|
%
|
|||||
Core net interest margin (tax equivalent)
(2)(3)
|
5.08
|
%
|
|
5.11
|
%
|
|
5.19
|
%
|
|
5.09
|
%
|
|
5.31
|
%
|
|||||
Efficiency ratio
|
40.1
|
%
|
|
40.6
|
%
|
|
39.6
|
%
|
|
39.7
|
%
|
|
38.1
|
%
|
(1)
|
Calculation reduces average stockholder's equity by average intangible assets.
|
(2)
|
See "Non-GAAP Measurements."
|
(3)
|
Calculation excludes accelerated accretion of acquisition discounts from early payoffs of acquired loans.
|
(1)
|
Includes nonaccrual loans and leases and loan fees.
|
(2)
|
Includes tax-equivalent adjustments of
$4.8 million
,
$4.9 million
, and
$2.8 million
for the three months ended
September 30, 2016
,
June 30, 2016
, and
September 30, 2015
, respectively, related to tax-exempt income on municipal securities. The federal statutory tax rate utilized was 35% for the periods.
|
(3)
|
Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
|
(4)
|
Funding sources is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of funding sources is calculated as annualized total interest expense divided by average funding sources.
|
(1)
|
Includes nonaccrual loans and leases and loan fees.
|
(2)
|
Includes tax-equivalent adjustments of
$14.7 million
and
$6.7 million
for the
nine months ended
September 30, 2016
, and
September 30, 2015
related to tax-exempt income on municipal securities. The federal statutory tax rate utilized was 35% for the periods.
|
(3)
|
Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
|
(4)
|
Funding sources is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of funding sources is calculated as annualized total interest expense divided by average funding sources.
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
NIM:
|
|
|
|
|
|
|
|
|
|
|||||
Reported
|
5.26
|
%
|
|
5.33
|
%
|
|
5.46
|
%
|
|
5.37
|
%
|
|
5.76
|
%
|
Less: Accelerated accretion of acquisition discounts
|
|
|
|
|
|
|
|
|
|
|||||
from early payoffs of acquired loans
|
(0.18
|
)%
|
|
(0.22
|
)%
|
|
(0.27
|
)%
|
|
(0.28
|
)%
|
|
(0.45
|
)%
|
Core
|
5.08
|
%
|
|
5.11
|
%
|
|
5.19
|
%
|
|
5.09
|
%
|
|
5.31
|
%
|
Loan and Lease Yield:
|
|
|
|
|
|
|
|
|
|
|||||
Reported
|
6.17
|
%
|
|
6.24
|
%
|
|
6.34
|
%
|
|
6.32
|
%
|
|
6.63
|
%
|
Less: Accelerated accretion of acquisition discounts
|
|
|
|
|
|
|
|
|
|
|||||
from early payoffs of acquired loans
|
(0.23
|
)%
|
|
(0.27
|
)%
|
|
(0.32
|
)%
|
|
(0.35
|
)%
|
|
(0.51
|
)%
|
Core
|
5.94
|
%
|
|
5.97
|
%
|
|
6.02
|
%
|
|
5.97
|
%
|
|
6.12
|
%
|
|
Three Months Ended
|
||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Impact on Net Interest Income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (tax equivalent)
|
$
|
239,473
|
|
|
$
|
238,667
|
|
|
$
|
249,540
|
|
|
$
|
233,959
|
|
|
$
|
195,274
|
|
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accelerated accretion of acquisition discounts
|
|
|
|
|
|
|
|
|
|
||||||||||
from early payoffs of acquired loans
|
(8,226
|
)
|
|
(9,780
|
)
|
|
(19,465
|
)
|
|
(5,511
|
)
|
|
(9,659
|
)
|
|||||
Remaining accretion of Non-PCI loan acquisition
|
|
|
|
|
|
|
|
|
|
||||||||||
discounts
|
(5,997
|
)
|
|
(6,407
|
)
|
|
(8,403
|
)
|
|
(10,553
|
)
|
|
(7,485
|
)
|
|||||
Total accretion of loan acquisition discounts
|
(14,223
|
)
|
|
(16,187
|
)
|
|
(27,868
|
)
|
|
(16,064
|
)
|
|
(17,144
|
)
|
|||||
Amortization of TruPS discount
|
1,391
|
|
|
1,393
|
|
|
1,395
|
|
|
1,397
|
|
|
1,399
|
|
|||||
Accretion of time deposits premium
|
(121
|
)
|
|
(172
|
)
|
|
(270
|
)
|
|
(384
|
)
|
|
(576
|
)
|
|||||
Total purchase accounting adjustments
|
(12,953
|
)
|
|
(14,966
|
)
|
|
(26,743
|
)
|
|
(15,051
|
)
|
|
(16,321
|
)
|
|||||
Net interest income - excluding purchase accounting
|
$
|
226,520
|
|
|
$
|
223,701
|
|
|
$
|
222,797
|
|
|
$
|
218,908
|
|
|
$
|
178,953
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact on Net Interest Margin:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin (tax equivalent)
|
5.26
|
%
|
|
5.33
|
%
|
|
5.53
|
%
|
|
5.22
|
%
|
|
5.46
|
%
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accelerated accretion of acquisition discounts
|
|
|
|
|
|
|
|
|
|
||||||||||
from early payoffs of acquired loans
|
(0.18
|
)%
|
|
(0.22
|
)%
|
|
(0.43
|
)%
|
|
(0.12
|
)%
|
|
(0.27
|
)%
|
|||||
Remaining accretion of Non-PCI loan acquisition
|
|
|
|
|
|
|
|
|
|
||||||||||
discounts
|
(0.13
|
)%
|
|
(0.14
|
)%
|
|
(0.19
|
)%
|
|
(0.24
|
)%
|
|
(0.21
|
)%
|
|||||
Total accretion of loan acquisition discounts
|
(0.31
|
)%
|
|
(0.36
|
)%
|
|
(0.62
|
)%
|
|
(0.36
|
)%
|
|
(0.48
|
)%
|
|||||
Amortization of TruPS discount
|
0.03
|
%
|
|
0.03
|
%
|
|
0.03
|
%
|
|
0.03
|
%
|
|
0.04
|
%
|
|||||
Accretion of time deposits premium
|
—
|
%
|
|
—
|
%
|
|
(0.01
|
)%
|
|
(0.01
|
)%
|
|
(0.02
|
)%
|
|||||
Total purchase accounting adjustments
|
(0.28
|
)%
|
|
(0.33
|
)%
|
|
(0.60
|
)%
|
|
(0.34
|
)%
|
|
(0.46
|
)%
|
|||||
Net interest margin - excluding purchase accounting
|
4.98
|
%
|
|
5.00
|
%
|
|
4.93
|
%
|
|
4.88
|
%
|
|
5.00
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Provision For Credit Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Addition to allowance for Non‑PCI loans and leases
|
$
|
8,621
|
|
|
$
|
11,625
|
|
|
$
|
10,500
|
|
|
$
|
39,411
|
|
|
$
|
31,104
|
|
Addition to reserve for unfunded loan commitments
|
(621
|
)
|
|
375
|
|
|
500
|
|
|
589
|
|
|
2,063
|
|
|||||
Total provision for Non‑PCI loans and leases
|
8,000
|
|
|
12,000
|
|
|
11,000
|
|
|
40,000
|
|
|
33,167
|
|
|||||
Provision for PCI Loans
|
471
|
|
|
1,903
|
|
|
(2,254
|
)
|
|
2,514
|
|
|
(1,458
|
)
|
|||||
Total provision for credit losses
|
$
|
8,471
|
|
|
$
|
13,903
|
|
|
$
|
8,746
|
|
|
$
|
42,514
|
|
|
$
|
31,709
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non‑PCI Credit Quality Metrics:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge‑offs on Non-PCI
|
|
|
|
|
|
|
|
|
|
||||||||||
loans and leases
|
$
|
3,874
|
|
|
$
|
432
|
|
|
$
|
3,231
|
|
|
$
|
8,198
|
|
|
$
|
9,244
|
|
Annualized net charge‑offs to
|
|
|
|
|
|
|
|
|
|
||||||||||
average Non-PCI loans and leases
|
0.11
|
%
|
|
0.01
|
%
|
|
0.11
|
%
|
|
0.08
|
%
|
|
0.10
|
%
|
|||||
At period end:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses
|
154,070
|
|
|
149,944
|
|
|
100,690
|
|
|
|
|
|
|||||||
Non‑PCI nonaccrual loans and leases
|
171,085
|
|
|
127,655
|
|
|
107,190
|
|
|
|
|
|
|||||||
Non‑PCI classified loans and leases
|
417,541
|
|
|
441,035
|
|
|
328,038
|
|
|
|
|
|
|||||||
Allowance for credit losses to Non‑PCI
|
|
|
|
|
|
|
|
|
|
||||||||||
loans and leases
|
1.05
|
%
|
|
1.03
|
%
|
|
0.82
|
%
|
|
|
|
|
|||||||
Allowance for credit losses to Non‑PCI
|
|
|
|
|
|
|
|
|
|
||||||||||
nonaccrual loans and leases
|
90.1
|
%
|
|
117.5
|
%
|
|
93.9
|
%
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Noninterest Income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges on deposit accounts
|
$
|
3,488
|
|
|
$
|
3,633
|
|
|
$
|
2,601
|
|
|
$
|
10,977
|
|
|
$
|
7,787
|
|
Other commissions and fees
|
12,528
|
|
|
11,073
|
|
|
6,376
|
|
|
35,090
|
|
|
18,895
|
|
|||||
Leased equipment income
|
8,538
|
|
|
8,523
|
|
|
5,475
|
|
|
25,305
|
|
|
16,232
|
|
|||||
Gain on sale of loans and leases
|
157
|
|
|
388
|
|
|
27
|
|
|
790
|
|
|
190
|
|
|||||
Gain on sale of securities
|
382
|
|
|
478
|
|
|
655
|
|
|
8,970
|
|
|
3,744
|
|
|||||
FDIC loss sharing expense, net
|
—
|
|
|
(6,502
|
)
|
|
(4,449
|
)
|
|
(8,917
|
)
|
|
(13,955
|
)
|
|||||
Other income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends and realized gains on equity investments
|
377
|
|
|
2,185
|
|
|
4,357
|
|
|
2,808
|
|
|
16,003
|
|
|||||
Foreign currency translation net (losses) gains
|
(224
|
)
|
|
324
|
|
|
(373
|
)
|
|
706
|
|
|
847
|
|
|||||
Other
|
1,674
|
|
|
2,019
|
|
|
1,089
|
|
|
7,851
|
|
|
6,509
|
|
|||||
Total noninterest income
|
$
|
26,920
|
|
|
$
|
22,121
|
|
|
$
|
15,758
|
|
|
$
|
83,580
|
|
|
$
|
56,252
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Noninterest Expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation
|
$
|
62,661
|
|
|
$
|
62,174
|
|
|
$
|
48,152
|
|
|
$
|
185,900
|
|
|
$
|
144,922
|
|
Occupancy
|
12,010
|
|
|
12,193
|
|
|
10,762
|
|
|
36,835
|
|
|
31,950
|
|
|||||
Data processing
|
6,234
|
|
|
5,644
|
|
|
4,322
|
|
|
17,782
|
|
|
13,032
|
|
|||||
Other professional services
|
4,625
|
|
|
3,401
|
|
|
3,396
|
|
|
11,598
|
|
|
9,949
|
|
|||||
Insurance and assessments
|
4,324
|
|
|
4,951
|
|
|
3,805
|
|
|
14,240
|
|
|
11,546
|
|
|||||
Intangible asset amortization
|
4,224
|
|
|
4,371
|
|
|
1,497
|
|
|
13,341
|
|
|
4,500
|
|
|||||
Leased equipment depreciation
|
5,298
|
|
|
5,286
|
|
|
3,162
|
|
|
15,608
|
|
|
9,368
|
|
|||||
Foreclosed assets (income) expense, net
|
(248
|
)
|
|
(3
|
)
|
|
4,521
|
|
|
(812
|
)
|
|
2,517
|
|
|||||
Acquisition, integration and reorganization costs
|
—
|
|
|
—
|
|
|
747
|
|
|
200
|
|
|
3,647
|
|
|||||
Other expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loan expense
|
1,931
|
|
|
2,145
|
|
|
1,494
|
|
|
6,231
|
|
|
3,319
|
|
|||||
Other
|
9,651
|
|
|
9,919
|
|
|
8,281
|
|
|
30,556
|
|
|
25,025
|
|
|||||
Total noninterest expense
|
$
|
110,710
|
|
|
$
|
110,081
|
|
|
$
|
90,139
|
|
|
$
|
331,479
|
|
|
$
|
259,775
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Foreclosed Assets (Income) Expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for losses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,757
|
|
|
$
|
—
|
|
|
$
|
5,163
|
|
Operating (income) expense
|
55
|
|
|
27
|
|
|
(152
|
)
|
|
25
|
|
|
(2,688
|
)
|
|||||
(Gain) loss on sale
|
(303
|
)
|
|
(30
|
)
|
|
(84
|
)
|
|
(837
|
)
|
|
42
|
|
|||||
Total foreclosed assets (income) expense, net
|
$
|
(248
|
)
|
|
$
|
(3
|
)
|
|
$
|
4,521
|
|
|
$
|
(812
|
)
|
|
$
|
2,517
|
|
|
September 30, 2016
|
||||||||||
|
Amortized
|
|
Fair
|
|
|
|
Duration
|
||||
Security Type:
|
Cost
|
|
Value
|
|
Yield
(1)(2)
|
|
(in years)
|
||||
|
(Dollars in thousands)
|
||||||||||
Residential mortgage-backed securities ("MBS")
|
|
|
|
|
|
|
|
||||
and collateralized mortgage obligations ("CMOs"):
|
|
|
|
|
|
|
|
||||
Agency MBS
|
$
|
518,996
|
|
|
$
|
528,941
|
|
|
2.08%
|
|
2.8
|
Agency CMOs
|
154,216
|
|
|
157,231
|
|
|
2.04%
|
|
2.2
|
||
Private label CMOs
|
133,917
|
|
|
138,625
|
|
|
5.00%
|
|
2.7
|
||
Municipal securities
|
1,437,952
|
|
|
1,522,494
|
|
|
4.13%
|
|
6.4
|
||
Agency commercial MBS
|
517,163
|
|
|
531,273
|
|
|
2.84%
|
|
5.4
|
||
Corporate debt securities
|
47,155
|
|
|
49,011
|
|
|
7.33%
|
|
5.1
|
||
Collateralized loan obligations
|
155,373
|
|
|
156,647
|
|
|
3.05%
|
|
0.1
|
||
SBA securities
|
185,639
|
|
|
187,300
|
|
|
0.30%
|
|
1.9
|
||
Asset-backed and other securities
|
69,189
|
|
|
69,813
|
|
|
2.71%
|
|
3.1
|
||
Total securities available-for-sale
|
$
|
3,219,600
|
|
|
$
|
3,341,335
|
|
|
3.29%
|
|
4.7
|
(1)
|
Represents the yield for the month of
September 30, 2016
.
|
(2)
|
Tax-equivalent basis.
|
|
September 30, 2016
|
|||||
|
Carrying
|
|
% of
|
|||
Municipal Securities by State:
|
Value
|
|
Total
|
|||
|
(Dollars in thousands)
|
|||||
California
|
$
|
217,170
|
|
|
14
|
%
|
New York
|
187,238
|
|
|
12
|
%
|
|
Washington
|
171,032
|
|
|
11
|
%
|
|
Texas
|
117,842
|
|
|
8
|
%
|
|
Ohio
|
97,965
|
|
|
6
|
%
|
|
District of Columbia
|
68,227
|
|
|
4
|
%
|
|
Massachusetts
|
67,631
|
|
|
4
|
%
|
|
Florida
|
53,652
|
|
|
4
|
%
|
|
Oregon
|
45,133
|
|
|
3
|
%
|
|
Illinois
|
40,559
|
|
|
3
|
%
|
|
Total of 10 largest states
|
1,066,449
|
|
|
69
|
%
|
|
All other states
|
456,045
|
|
|
31
|
%
|
|
Total municipal securities
|
$
|
1,522,494
|
|
|
100
|
%
|
|
September 30, 2016
|
|
June 30, 2016
|
|
December 31, 2015
|
|||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Healthcare real estate
|
$
|
959,993
|
|
|
7
|
%
|
|
$
|
1,152,433
|
|
|
8
|
%
|
|
$
|
1,230,787
|
|
|
9
|
%
|
Hospitality
|
666,523
|
|
|
5
|
%
|
|
712,900
|
|
|
5
|
%
|
|
656,750
|
|
|
5
|
%
|
|||
SBA program
|
468,138
|
|
|
3
|
%
|
|
473,465
|
|
|
3
|
%
|
|
473,960
|
|
|
3
|
%
|
|||
Other commercial real estate
|
2,232,911
|
|
|
15
|
%
|
|
2,180,411
|
|
|
15
|
%
|
|
2,284,036
|
|
|
16
|
%
|
|||
Total commercial real estate
|
4,327,565
|
|
|
30
|
%
|
|
4,519,209
|
|
|
31
|
%
|
|
4,645,533
|
|
|
33
|
%
|
|||
Income producing residential
|
1,070,842
|
|
|
7
|
%
|
|
1,011,651
|
|
|
7
|
%
|
|
1,035,164
|
|
|
7
|
%
|
|||
Owner-occupied residential
|
171,412
|
|
|
1
|
%
|
|
153,133
|
|
|
1
|
%
|
|
176,045
|
|
|
1
|
%
|
|||
Total residential real estate
|
1,242,254
|
|
|
8
|
%
|
|
1,164,784
|
|
|
8
|
%
|
|
1,211,209
|
|
|
8
|
%
|
|||
Total real estate mortgage
|
5,569,819
|
|
|
38
|
%
|
|
5,683,993
|
|
|
39
|
%
|
|
5,856,742
|
|
|
41
|
%
|
|||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
510,831
|
|
|
3
|
%
|
|
417,144
|
|
|
3
|
%
|
|
345,991
|
|
|
2
|
%
|
|||
Residential
|
323,104
|
|
|
2
|
%
|
|
281,788
|
|
|
2
|
%
|
|
184,382
|
|
|
1
|
%
|
|||
Total real estate construction and land
|
833,935
|
|
|
5
|
%
|
|
698,932
|
|
|
5
|
%
|
|
530,373
|
|
|
3
|
%
|
|||
Total real estate loans
|
6,403,754
|
|
|
43
|
%
|
|
6,382,925
|
|
|
44
|
%
|
|
6,387,115
|
|
|
44
|
%
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technology cash flow
|
1,097,041
|
|
|
7
|
%
|
|
1,002,709
|
|
|
7
|
%
|
|
978,283
|
|
|
7
|
%
|
|||
Security cash flow
|
416,648
|
|
|
3
|
%
|
|
430,591
|
|
|
3
|
%
|
|
450,544
|
|
|
3
|
%
|
|||
Healthcare cash flow
|
751,580
|
|
|
5
|
%
|
|
821,698
|
|
|
6
|
%
|
|
865,355
|
|
|
6
|
%
|
|||
Other cash flow
|
806,337
|
|
|
5
|
%
|
|
793,441
|
|
|
5
|
%
|
|
779,783
|
|
|
5
|
%
|
|||
Total cash flow
|
3,071,606
|
|
|
20
|
%
|
|
3,048,439
|
|
|
21
|
%
|
|
3,073,965
|
|
|
21
|
%
|
|||
Lender finance & timeshare
|
1,654,585
|
|
|
11
|
%
|
|
1,730,870
|
|
|
12
|
%
|
|
1,587,577
|
|
|
11
|
%
|
|||
Healthcare asset-based
|
174,362
|
|
|
1
|
%
|
|
214,242
|
|
|
1
|
%
|
|
228,445
|
|
|
2
|
%
|
|||
Other asset-based
|
744,490
|
|
|
5
|
%
|
|
738,801
|
|
|
5
|
%
|
|
731,643
|
|
|
5
|
%
|
|||
Total asset-based
|
2,573,437
|
|
|
17
|
%
|
|
2,683,913
|
|
|
18
|
%
|
|
2,547,665
|
|
|
18
|
%
|
|||
Equity funds group
|
282,874
|
|
|
2
|
%
|
|
270,722
|
|
|
2
|
%
|
|
228,863
|
|
|
2
|
%
|
|||
Early stage
|
412,537
|
|
|
3
|
%
|
|
369,803
|
|
|
3
|
%
|
|
347,298
|
|
|
2
|
%
|
|||
Expansion stage
|
790,117
|
|
|
5
|
%
|
|
725,482
|
|
|
5
|
%
|
|
600,541
|
|
|
4
|
%
|
|||
Later stage
|
280,981
|
|
|
2
|
%
|
|
300,345
|
|
|
2
|
%
|
|
281,311
|
|
|
2
|
%
|
|||
Venture capital
|
1,766,509
|
|
|
12
|
%
|
|
1,666,352
|
|
|
12
|
%
|
|
1,458,013
|
|
|
10
|
%
|
|||
Equipment finance
|
670,783
|
|
|
5
|
%
|
|
646,940
|
|
|
4
|
%
|
|
890,349
|
|
|
6
|
%
|
|||
Total commercial
|
8,082,335
|
|
|
54
|
%
|
|
8,045,644
|
|
|
55
|
%
|
|
7,969,992
|
|
|
55
|
%
|
|||
Consumer
|
256,757
|
|
|
3
|
%
|
|
212,891
|
|
|
1
|
%
|
|
121,147
|
|
|
1
|
%
|
|||
Total loans and leases, net of deferred fees
|
$
|
14,742,846
|
|
|
100
|
%
|
|
$
|
14,641,460
|
|
|
100
|
%
|
|
$
|
14,478,254
|
|
|
100
|
%
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
|
|
|
% of
|
|
|
|
% of
|
||||||
Real Estate Loans by State:
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||||
California
|
$
|
3,199,545
|
|
|
50
|
%
|
|
$
|
3,121,801
|
|
|
49
|
%
|
Florida
|
464,758
|
|
|
7
|
%
|
|
488,793
|
|
|
8
|
%
|
||
New York
|
448,448
|
|
|
7
|
%
|
|
315,433
|
|
|
5
|
%
|
||
Texas
|
301,872
|
|
|
5
|
%
|
|
342,815
|
|
|
5
|
%
|
||
Virginia
|
188,766
|
|
|
3
|
%
|
|
182,040
|
|
|
3
|
%
|
||
Illinois
|
179,118
|
|
|
3
|
%
|
|
157,431
|
|
|
2
|
%
|
||
Pennsylvania
|
149,345
|
|
|
2
|
%
|
|
215,945
|
|
|
4
|
%
|
||
Arizona
|
148,267
|
|
|
2
|
%
|
|
144,177
|
|
|
2
|
%
|
||
Georgia
|
124,487
|
|
|
2
|
%
|
|
71,992
|
|
|
1
|
%
|
||
Maryland
|
93,545
|
|
|
2
|
%
|
|
71,747
|
|
|
1
|
%
|
||
Total of 10 largest states
|
5,298,151
|
|
|
83
|
%
|
|
5,112,174
|
|
|
80
|
%
|
||
All other states
|
1,105,603
|
|
|
17
|
%
|
|
1,274,941
|
|
|
20
|
%
|
||
Total real estate loans
|
$
|
6,403,754
|
|
|
100
|
%
|
|
$
|
6,387,115
|
|
|
100
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
Loan and Lease Roll Forward:
(1)
|
September 30, 2016
|
|
September 30, 2016
|
||||
|
(Dollars in thousands)
|
||||||
Beginning balance
|
$
|
14,641,460
|
|
|
$
|
14,478,254
|
|
New production
|
1,071,943
|
|
|
2,845,430
|
|
||
Existing loans and leases:
|
|
|
|
||||
Principal repayments, net
(2)
|
(933,037
|
)
|
|
(2,318,321
|
)
|
||
Loan and lease sales
|
(27,065
|
)
|
|
(105,319
|
)
|
||
Transfers to foreclosed assets
|
—
|
|
|
(129
|
)
|
||
Charge-offs
|
(10,455
|
)
|
|
(17,871
|
)
|
||
Sale of Pacific Western Equipment Finance ("PWEF")
|
—
|
|
|
(139,198
|
)
|
||
Ending balance
|
$
|
14,742,846
|
|
|
$
|
14,742,846
|
|
|
|
|
|
||||
Weighted average rate on new production
|
5.11
|
%
|
|
4.95
|
%
|
(1)
|
Includes direct financing leases but excludes equipment leased to others under operating leases.
|
(2)
|
Includes principal repayments on existing loans, changes in revolving lines of credit (repayments and draws), loan participation sales and other changes within the loan portfolio.
|
|
September 30, 2016
|
||||||||
|
Obligors
|
|
Amount
|
|
% of Total
|
||||
|
(Dollars in thousands)
|
||||||||
Nonaccrual
|
2
|
|
|
$
|
40,262
|
|
|
39
|
%
|
Large, rated companies
(1)
|
2
|
|
|
41,410
|
|
|
41
|
%
|
|
All others
|
10
|
|
|
20,058
|
|
|
20
|
%
|
|
Total oil & gas support services
|
14
|
|
|
$
|
101,730
|
|
|
100
|
%
|
(1)
|
Borrowing entity or obligor contractual counterpart rated BB- or higher.
|
•
|
current economic trends and forecasts;
|
•
|
current commercial real estate values, performance trends, and overall outlook in the markets where we lend;
|
•
|
legal and regulatory matters that could impact our borrowers’ ability to repay our loans and leases;
|
•
|
our loan and lease portfolio composition and any loan concentrations;
|
•
|
our current lending policies and the effects of any new policies or policy amendments;
|
•
|
our new loan and lease origination volume and the nature of it;
|
•
|
our loan and lease portfolio credit performance trends; and
|
•
|
the results of our ongoing independent credit review.
|
•
|
Pass: Loans and leases classified as "pass" are not adversely classified and collection and repayment in full are expected.
|
•
|
Special Mention: Loans and leases classified as "special mention" have a potential weakness that requires management's attention. If not addressed, these potential weaknesses may result in further deterioration in the borrower's ability to repay the loan or lease.
|
•
|
Substandard: Loans and leases classified as "substandard" have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the possibility that we will sustain some loss if the weaknesses are not corrected.
|
•
|
Doubtful: Loans and leases classified as "doubtful" have all the weaknesses of those classified as "substandard," with the additional trait that the weaknesses make collection or repayment in full highly questionable and improbable.
|
|
September 30,
|
|
June 30,
|
|
December 31,
|
|
September 30,
|
||||||||
Non-PCI Allowance for Credit Losses Data:
|
2016
|
|
2016
|
|
2015
|
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Allowance for loan and lease losses
|
$
|
136,747
|
|
|
$
|
132,000
|
|
|
$
|
105,534
|
|
|
$
|
92,316
|
|
Reserve for unfunded loan commitments
|
17,323
|
|
|
17,944
|
|
|
16,734
|
|
|
8,374
|
|
||||
Total allowance for credit losses
|
$
|
154,070
|
|
|
$
|
149,944
|
|
|
$
|
122,268
|
|
|
$
|
100,690
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance for credit losses to loans and leases
|
1.05
|
%
|
|
1.03
|
%
|
|
0.85
|
%
|
|
0.82
|
%
|
||||
Allowance for credit losses to nonaccrual loans and leases
|
90.1
|
%
|
|
117.5
|
%
|
|
94.8
|
%
|
|
93.9
|
%
|
|
September 30, 2016
|
|
June 30, 2016
|
||||||||||||||||||
|
Non-PCI
|
|
|
|
|
|
Non-PCI
|
|
|
|
|
||||||||||
Non-PCI Adjusted Allowance for
|
Loans and
|
|
Allowance/
|
|
Coverage
|
|
Loans and
|
|
Allowance/
|
|
Coverage
|
||||||||||
Credit Losses to Loans and Leases:
|
Leases
|
|
Discount
|
|
Ratio
|
|
Leases
|
|
Discount
|
|
Ratio
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Adjustment for acquired loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
and related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
$
|
14,686,206
|
|
|
$
|
154,070
|
|
|
1.05
|
%
|
|
$
|
14,566,425
|
|
|
$
|
149,944
|
|
|
1.03
|
%
|
Acquired loans and leases
|
(4,612,787
|
)
|
|
(46,039
|
)
|
|
|
|
(5,131,674
|
)
|
|
(37,440
|
)
|
|
|
||||||
Adjusted balance
|
$
|
10,073,419
|
|
|
$
|
108,031
|
|
|
1.07
|
%
|
|
$
|
9,434,751
|
|
|
$
|
112,504
|
|
|
1.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustment for unamortized purchase
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
discount on acquired loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance
|
$
|
14,686,206
|
|
|
$
|
154,070
|
|
|
1.05
|
%
|
|
$
|
14,566,425
|
|
|
$
|
149,944
|
|
|
1.03
|
%
|
Unamortized purchase discount
|
53,041
|
|
|
53,041
|
|
|
|
|
65,391
|
|
|
65,391
|
|
|
|
||||||
Adjusted balance
|
$
|
14,739,247
|
|
|
$
|
207,111
|
|
|
1.41
|
%
|
|
$
|
14,631,816
|
|
|
$
|
215,335
|
|
|
1.47
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
Non-PCI Allowance for Credit Losses:
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Allowance for credit losses, beginning of period
|
$
|
149,944
|
|
|
$
|
138,376
|
|
|
$
|
92,921
|
|
|
$
|
122,268
|
|
|
$
|
76,767
|
|
Provision for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Addition to allowance for loan and lease losses
|
8,621
|
|
|
11,625
|
|
|
10,500
|
|
|
39,411
|
|
|
31,104
|
|
|||||
Addition to reserve for unfunded loan commitments
|
(621
|
)
|
|
375
|
|
|
500
|
|
|
589
|
|
|
2,063
|
|
|||||
Provision for credit losses
|
8,000
|
|
|
12,000
|
|
|
11,000
|
|
|
40,000
|
|
|
33,167
|
|
|||||
Loans and leases charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate mortgage
|
(302
|
)
|
|
(866
|
)
|
|
(252
|
)
|
|
(1,905
|
)
|
|
(1,767
|
)
|
|||||
Commercial
|
(9,606
|
)
|
|
(655
|
)
|
|
(4,035
|
)
|
|
(14,306
|
)
|
|
(12,964
|
)
|
|||||
Consumer
|
(16
|
)
|
|
(191
|
)
|
|
(25
|
)
|
|
(798
|
)
|
|
(115
|
)
|
|||||
Total loans and leases charged off
(1)
|
(9,924
|
)
|
|
(1,712
|
)
|
|
(4,312
|
)
|
|
(17,009
|
)
|
|
(14,846
|
)
|
|||||
Recoveries on loans charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate mortgage
|
2,414
|
|
|
939
|
|
|
288
|
|
|
4,352
|
|
|
1,783
|
|
|||||
Real estate construction and land
|
27
|
|
|
6
|
|
|
390
|
|
|
185
|
|
|
1,034
|
|
|||||
Commercial
|
3,553
|
|
|
312
|
|
|
239
|
|
|
4,179
|
|
|
2,393
|
|
|||||
Consumer
|
56
|
|
|
23
|
|
|
164
|
|
|
95
|
|
|
392
|
|
|||||
Total recoveries on loans charged off
|
6,050
|
|
|
1,280
|
|
|
1,081
|
|
|
8,811
|
|
|
5,602
|
|
|||||
Net (charge-offs) recoveries
|
(3,874
|
)
|
|
(432
|
)
|
|
(3,231
|
)
|
|
(8,198
|
)
|
|
(9,244
|
)
|
|||||
Allowance for credit losses, end of period
|
$
|
154,070
|
|
|
$
|
149,944
|
|
|
$
|
100,690
|
|
|
$
|
154,070
|
|
|
$
|
100,690
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized net charge-offs (recoveries) to
|
|
|
|
|
|
|
|
|
|
||||||||||
average loans and leases
|
0.11
|
%
|
|
0.01
|
%
|
|
0.11
|
%
|
|
0.08
|
%
|
|
0.10
|
%
|
(1)
|
The third quarter 2016 Non-PCI charge-offs included $9.7 million of loans and leases that were fully reserved at June 30, 2016.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
PCI Allowance for Credit Losses:
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for credit losses, beginning of period
|
$
|
11,289
|
|
|
$
|
9,554
|
|
|
$
|
14,328
|
|
|
$
|
9,577
|
|
|
$
|
13,999
|
|
Provision (negative provision)
|
471
|
|
|
1,903
|
|
|
(2,254
|
)
|
|
2,514
|
|
|
(1,458
|
)
|
|||||
Net charge-offs
|
(531
|
)
|
|
(168
|
)
|
|
(1,119
|
)
|
|
(862
|
)
|
|
(1,586
|
)
|
|||||
Allowance for credit losses, end of period
|
$
|
11,229
|
|
|
$
|
11,289
|
|
|
$
|
10,955
|
|
|
$
|
11,229
|
|
|
$
|
10,955
|
|
|
September 30,
|
|
June 30,
|
|
December 31,
|
|
September 30,
|
||||||||
|
2016
|
|
2016
|
|
2015
|
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Nonaccrual Non-PCI loans and leases
|
$
|
171,085
|
|
|
$
|
127,655
|
|
|
$
|
129,019
|
|
|
$
|
107,190
|
|
Nonaccrual PCI loans
|
3,478
|
|
|
2,025
|
|
|
4,596
|
|
|
4,823
|
|
||||
Total nonaccrual loans and leases
|
174,563
|
|
|
129,680
|
|
|
133,615
|
|
|
112,013
|
|
||||
Accruing Non-PCI loans contractually past due 90 days or more
|
—
|
|
|
—
|
|
|
700
|
|
|
—
|
|
||||
Foreclosed assets, net
|
15,113
|
|
|
16,181
|
|
|
22,120
|
|
|
33,216
|
|
||||
Total nonperforming assets
|
$
|
189,676
|
|
|
$
|
145,861
|
|
|
$
|
156,435
|
|
|
$
|
145,229
|
|
|
|
|
|
|
|
|
|
||||||||
Performing troubled debt restructured loans
(1)
|
$
|
70,348
|
|
|
$
|
71,709
|
|
|
$
|
40,182
|
|
|
$
|
39,956
|
|
Classified Non-PCI loans and leases
|
$
|
417,541
|
|
|
$
|
441,035
|
|
|
$
|
391,754
|
|
|
$
|
323,038
|
|
Nonaccrual loans and leases to loans and leases
|
1.18
|
%
|
|
0.88
|
%
|
|
0.92
|
%
|
|
0.90
|
%
|
||||
Nonperforming assets to loans and leases and foreclosed assets, net
|
1.28
|
%
|
|
0.99
|
%
|
|
1.08
|
%
|
|
1.16
|
%
|
||||
Classified Non-PCI loans and leases to Non-PCI loans and leases
|
2.84
|
%
|
|
3.03
|
%
|
|
2.73
|
%
|
|
2.67
|
%
|
(1)
|
Excludes PCI loans.
|
|
Nonaccrual Loans and Leases
|
|
Accruing and
|
||||||||||||||||||
|
September 30, 2016
|
|
June 30, 2016
|
|
30 - 89 Days Past Due
|
||||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
September 30,
|
|
June 30,
|
||||||||||
|
|
|
Loan
|
|
|
|
Loan
|
|
2016
|
|
2015
|
||||||||||
|
Amount
|
|
Category
|
|
Amount
|
|
Category
|
|
Amount
|
|
Amount
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
74,606
|
|
|
1.7
|
%
|
|
$
|
29,183
|
|
|
0.7
|
%
|
|
$
|
2,146
|
|
|
$
|
2,126
|
|
Residential
|
5,089
|
|
|
0.4
|
%
|
|
4,238
|
|
|
0.4
|
%
|
|
—
|
|
|
171
|
|
||||
Total real estate mortgage
|
79,695
|
|
|
1.5
|
%
|
|
33,421
|
|
|
0.6
|
%
|
|
2,146
|
|
|
2,297
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
1,245
|
|
|
0.2
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
||||
Residential
|
366
|
|
|
0.1
|
%
|
|
368
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
|
||||
Total real estate construction and land
|
1,611
|
|
|
0.2
|
%
|
|
368
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow
|
27,831
|
|
|
0.9
|
%
|
|
38,146
|
|
|
1.3
|
%
|
|
21
|
|
|
389
|
|
||||
Asset-based
|
4,044
|
|
|
0.2
|
%
|
|
1,986
|
|
|
0.1
|
%
|
|
6,644
|
|
|
—
|
|
||||
Venture capital
|
10,782
|
|
|
0.6
|
%
|
|
1,088
|
|
|
0.1
|
%
|
|
—
|
|
|
3,548
|
|
||||
Equipment finance
(1)
|
46,916
|
|
|
7.0
|
%
|
|
52,432
|
|
|
8.1
|
%
|
|
—
|
|
|
—
|
|
||||
Total commercial
|
89,573
|
|
|
1.1
|
%
|
|
93,652
|
|
|
1.2
|
%
|
|
6,665
|
|
|
3,937
|
|
||||
Consumer
|
206
|
|
|
0.1
|
%
|
|
214
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
|
||||
Total Non-PCI loans and leases
|
$
|
171,085
|
|
|
1.2
|
%
|
|
$
|
127,655
|
|
|
0.9
|
%
|
|
$
|
8,811
|
|
|
$
|
6,234
|
|
(1)
|
Includes nonaccrual loans and leases to companies involved in the oil and gas industries of
$40.3 million
and
$48.5 million
at
September 30, 2016
and
June 30, 2016
.
|
|
September 30,
|
|
June 30,
|
|
December 31,
|
|
September 30,
|
||||||||
Property Type:
|
2016
|
|
2016
|
|
2015
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Commercial real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
487
|
|
|
$
|
3,558
|
|
Construction and land development
|
13,800
|
|
|
13,800
|
|
|
13,801
|
|
|
14,343
|
|
||||
Multi-family
|
—
|
|
|
—
|
|
|
—
|
|
|
3,481
|
|
||||
Single family residence
|
—
|
|
|
852
|
|
|
952
|
|
|
1,663
|
|
||||
Total OREO, net
|
13,800
|
|
|
14,652
|
|
|
15,240
|
|
|
23,045
|
|
||||
Other foreclosed assets
|
1,313
|
|
|
1,529
|
|
|
6,880
|
|
|
10,171
|
|
||||
Total foreclosed assets
|
$
|
15,113
|
|
|
$
|
16,181
|
|
|
$
|
22,120
|
|
|
$
|
33,216
|
|
|
September 30, 2016
|
|
June 30, 2016
|
|
December 31, 2015
|
|||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||
Deposit Category:
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Noninterest-bearing demand deposits
|
$
|
6,521,946
|
|
|
42
|
%
|
|
$
|
6,222,696
|
|
|
41
|
%
|
|
$
|
6,171,455
|
|
|
39
|
%
|
Interest checking deposits
|
1,184,350
|
|
|
8
|
|
|
1,035,395
|
|
|
7
|
|
|
874,349
|
|
|
5
|
|
|||
Money market deposits
|
3,532,050
|
|
|
22
|
|
|
3,392,811
|
|
|
22
|
|
|
2,782,974
|
|
|
18
|
|
|||
Savings deposits
|
772,293
|
|
|
5
|
|
|
761,090
|
|
|
5
|
|
|
742,795
|
|
|
5
|
|
|||
Total core deposits
|
12,010,639
|
|
|
77
|
|
|
11,411,992
|
|
|
75
|
|
|
10,571,573
|
|
|
67
|
|
|||
Brokered non-maturity deposits
|
1,082,114
|
|
|
7
|
|
|
972,820
|
|
|
7
|
|
|
942,253
|
|
|
6
|
|
|||
Total non-maturity deposits
|
13,092,753
|
|
|
84
|
|
|
12,384,812
|
|
|
82
|
|
|
11,513,826
|
|
|
73
|
|
|||
Time deposits under $100,000
|
1,180,428
|
|
|
7
|
|
|
1,114,074
|
|
|
7
|
|
|
1,656,227
|
|
|
11
|
|
|||
Time deposits $100,000 and over
|
1,372,487
|
|
|
9
|
|
|
1,649,123
|
|
|
11
|
|
|
2,496,129
|
|
|
16
|
|
|||
Total time deposits
|
2,552,915
|
|
|
16
|
|
|
2,763,197
|
|
|
18
|
|
|
4,152,356
|
|
|
27
|
|
|||
Total deposits
|
$
|
15,645,668
|
|
|
100
|
%
|
|
$
|
15,148,009
|
|
|
100
|
%
|
|
$
|
15,666,182
|
|
|
100
|
%
|
|
September 30, 2016
|
||||||||||||
|
Time
|
|
Time
|
|
|
|
|
||||||
|
Deposits
|
|
Deposits
|
|
Total
|
|
|
||||||
|
Under
|
|
$100,000
|
|
Time
|
|
Contractual
|
||||||
Maturity:
|
$100,000
|
|
or More
|
|
Deposits
|
|
Rate
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Due in three months or less
|
$
|
402,305
|
|
|
$
|
473,136
|
|
|
$
|
875,441
|
|
|
0.43%
|
Due in over three months through six months
|
277,632
|
|
|
361,539
|
|
|
639,171
|
|
|
0.35%
|
|||
Due in over six months through twelve months
|
388,867
|
|
|
411,147
|
|
|
800,014
|
|
|
0.36%
|
|||
Due in over 12 months through 24 months
|
86,228
|
|
|
89,603
|
|
|
175,831
|
|
|
0.66%
|
|||
Due in over 24 months
|
25,396
|
|
|
37,062
|
|
|
62,458
|
|
|
0.77%
|
|||
Total
|
$
|
1,180,428
|
|
|
$
|
1,372,487
|
|
|
$
|
2,552,915
|
|
|
0.41%
|
|
|
|
|
|
|
|
|
||||||
At June 30, 2016
|
$
|
1,114,074
|
|
|
$
|
1,649,123
|
|
|
$
|
2,763,197
|
|
|
0.49%
|
|
|
|
|
|
Minimum
|
|
|
|
|
|
|
|
Required
|
|
|
|
|
|
Minimum
|
|
Plus Capital
|
|
Minimum
|
|
|
|
Required
|
|
Conservation
|
|
Required
|
|
|
|
For Capital
|
|
Buffer
|
|
For Well
|
|
|
|
Adequacy
|
|
Phase-In
|
|
Capitalized
|
|
Actual
|
|
Purposes
|
|
for 2016
|
|
Requirement
|
September 30, 2016
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
12.13%
|
|
4.00%
|
|
4.000%
|
|
N/A
|
CET1 capital (to risk weighted assets)
|
12.83%
|
|
4.50%
|
|
5.125%
|
|
N/A
|
Tier 1 capital (to risk weighted assets)
|
12.83%
|
|
6.00%
|
|
6.625%
|
|
N/A
|
Total capital (to risk weighted assets)
|
16.18%
|
|
8.00%
|
|
8.625%
|
|
N/A
|
|
|
|
|
|
|
|
|
Pacific Western Bank
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
11.54%
|
|
4.00%
|
|
4.000%
|
|
5.00%
|
CET1 capital (to risk weighted assets)
|
12.21%
|
|
4.50%
|
|
5.125%
|
|
6.50%
|
Tier 1 capital (to risk weighted assets)
|
12.21%
|
|
6.00%
|
|
6.625%
|
|
8.00%
|
Total capital (to risk weighted assets)
|
13.15%
|
|
8.00%
|
|
8.625%
|
|
10.00%
|
December 31, 2015
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
11.67%
|
|
4.00%
|
|
N/A
|
|
N/A
|
CET1 capital (to risk weighted assets)
|
12.58%
|
|
4.50%
|
|
N/A
|
|
N/A
|
Tier 1 capital (to risk weighted assets)
|
12.60%
|
|
6.00%
|
|
N/A
|
|
N/A
|
Total capital (to risk weighted assets)
|
15.65%
|
|
8.00%
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
Pacific Western Bank
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
11.40%
|
|
4.00%
|
|
N/A
|
|
5.00%
|
CET1 capital (to risk weighted assets)
|
12.03%
|
|
4.50%
|
|
N/A
|
|
6.50%
|
Tier 1 capital (to risk weighted assets)
|
12.03%
|
|
6.00%
|
|
N/A
|
|
8.00%
|
Total capital (to risk weighted assets)
|
12.80%
|
|
8.00%
|
|
N/A
|
|
10.00%
|
|
September 30,
|
|
June 30,
|
|
December
|
||||||
|
2016
|
|
2016
|
|
2015
|
||||||
|
(Dollars in thousands)
|
||||||||||
Primary Liquidity - On-Balance Sheet:
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
286,371
|
|
|
$
|
226,471
|
|
|
$
|
161,020
|
|
Interest-earning deposits in financial institutions
|
253,994
|
|
|
218,882
|
|
|
235,466
|
|
|||
Securities available-for-sale
|
3,341,335
|
|
|
3,347,546
|
|
|
3,559,437
|
|
|||
Less: pledged securities
|
(342,232
|
)
|
|
(442,884
|
)
|
|
(421,574
|
)
|
|||
Total primary liquidity
|
$
|
3,539,468
|
|
|
$
|
3,350,015
|
|
|
$
|
3,534,349
|
|
|
|
|
|
|
|
||||||
Ratio of primary liquidity to total deposits
|
22.6
|
%
|
|
22.1
|
%
|
|
22.6
|
%
|
|
September 30,
|
|
June 30,
|
|
December
|
||||||
|
2016
|
|
2016
|
|
2015
|
||||||
|
(In thousands)
|
||||||||||
Secondary Liquidity - Off-Balance Sheet
|
|
|
|
|
|
||||||
Available Secured Borrowing Capacity:
|
|
|
|
|
|
||||||
Total secured borrowing capacity with the FHLB
|
$
|
2,044,799
|
|
|
$
|
2,043,979
|
|
|
$
|
2,500,000
|
|
Less: secured advances outstanding
|
(410,000
|
)
|
|
(787,000
|
)
|
|
(618,000
|
)
|
|||
Net secured borrowing capacity with the FHLB
|
1,634,799
|
|
|
1,256,979
|
|
|
1,882,000
|
|
|||
Secured borrowing capacity with the FRBSF
|
2,429,729
|
|
|
1,829,572
|
|
|
2,078,292
|
|
|||
Total secondary liquidity
|
$
|
4,064,528
|
|
|
$
|
3,086,551
|
|
|
$
|
3,960,292
|
|
|
September 30, 2016
|
||||||||||||||||||
|
Due
|
|
Due in
|
|
Due in
|
|
Due
|
|
|
||||||||||
|
Within
|
|
One to
|
|
Three to
|
|
After
|
|
|
||||||||||
|
One Year
|
|
Three Years
|
|
Five Years
|
|
Five Years
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Time deposits
(1)
|
$
|
2,314,213
|
|
|
$
|
213,328
|
|
|
$
|
24,032
|
|
|
$
|
929
|
|
|
$
|
2,552,502
|
|
Short-term FHLB and American Financial
|
|
|
|
|
|
|
|
|
|
||||||||||
Exchange borrowings
|
540,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
540,000
|
|
|||||
Long-term debt obligations
(1)
|
613
|
|
|
368
|
|
|
30
|
|
|
540,329
|
|
|
541,340
|
|
|||||
Contractual interest
(2)
|
3,394
|
|
|
2,324
|
|
|
793
|
|
|
46
|
|
|
6,557
|
|
|||||
Operating lease obligations
|
29,136
|
|
|
52,179
|
|
|
39,915
|
|
|
41,074
|
|
|
162,304
|
|
|||||
Other contractual obligations
|
120,495
|
|
|
27,048
|
|
|
12,622
|
|
|
21,139
|
|
|
181,304
|
|
|||||
Total
|
$
|
3,007,851
|
|
|
$
|
295,247
|
|
|
$
|
77,392
|
|
|
$
|
603,517
|
|
|
$
|
3,984,007
|
|
(1)
|
Excludes purchase accounting fair value adjustments.
|
(2)
|
Excludes interest on subordinated debentures as these instruments are variable rate.
|
|
|
|
|
|
|
|
|
||
|
Forecasted
|
|
|
|
|
|
Forecasted
|
||
September 30, 2016
|
Net Interest
|
|
Percentage
|
|
Forecasted
|
|
Net Interest
|
||
Interest Rate Scenario:
|
Income
|
|
Change
|
|
Net Interest
|
|
Margin Change
|
||
|
(Tax Equivalent)
|
|
From Base
|
|
Margin
|
|
From Base
|
||
|
(Dollars in millions)
|
|
|
|
|
|
|
||
Up 300 basis points
|
$
|
1,061.8
|
|
|
16.3%
|
|
5.75%
|
|
0.80%
|
Up 200 basis points
|
$
|
1,013.7
|
|
|
11.0%
|
|
5.49%
|
|
0.54%
|
Up 100 basis points
|
$
|
963.5
|
|
|
5.6%
|
|
5.22%
|
|
0.27%
|
BASE CASE
|
$
|
912.8
|
|
|
—
|
|
4.95%
|
|
—
|
Down 100 basis points
|
$
|
887.3
|
|
|
(2.8)%
|
|
4.82%
|
|
(0.13)%
|
Down 200 basis points
|
$
|
879.1
|
|
|
(3.7)%
|
|
4.77%
|
|
(0.18)%
|
Down 300 basis points
|
$
|
873.0
|
|
|
(4.4)%
|
|
4.74%
|
|
(0.21)%
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|||||||
|
Projected
|
|
Dollar
|
|
Percentage
|
|
Percentage
|
|
Projected
|
|||||||
September 30, 2016
|
Market Value
|
|
Change
|
|
Change
|
|
of Total
|
|
Market Value
|
|||||||
Interest Rate Scenario:
|
of Equity
|
|
From Base
|
|
From Base
|
|
Assets
|
|
to Book Value
|
|||||||
|
(Dollars in millions)
|
|
|
|
|
|
|
|||||||||
Up 300 basis points
|
$
|
5,622
|
|
|
$
|
127
|
|
|
2.3
|
%
|
|
26.4
|
%
|
|
123.8
|
%
|
Up 200 basis points
|
$
|
5,590
|
|
|
$
|
95
|
|
|
1.7
|
%
|
|
26.2
|
%
|
|
123.1
|
%
|
Up 100 basis points
|
$
|
5,550
|
|
|
$
|
55
|
|
|
1.0
|
%
|
|
26.0
|
%
|
|
122.2
|
%
|
BASE CASE
|
$
|
5,495
|
|
|
$
|
—
|
|
|
—
|
%
|
|
25.8
|
%
|
|
121.0
|
%
|
Down 100 basis points
|
$
|
5,462
|
|
|
$
|
(33
|
)
|
|
(0.6
|
)%
|
|
25.6
|
%
|
|
120.2
|
%
|
Down 200 basis points
|
$
|
5,289
|
|
|
$
|
(207
|
)
|
|
(3.8
|
)%
|
|
24.8
|
%
|
|
116.4
|
%
|
Down 300 basis points
|
$
|
5,181
|
|
|
$
|
(314
|
)
|
|
(5.7
|
)%
|
|
24.3
|
%
|
|
114.1
|
%
|
|
Total
|
|
|
|||
|
Number of
|
|
Average
|
|||
|
Shares
|
|
Price Paid
|
|||
Purchase Dates
|
Purchased
(1)
|
|
Per Share
|
|||
July 1, 2016 - July 31, 2016
|
—
|
|
|
$
|
—
|
|
August 1, 2016 - August 31, 2016
|
4,704
|
|
|
41.50
|
|
|
September 1, 2016 - September 30, 2016
|
—
|
|
|
—
|
|
|
Total
|
4,704
|
|
|
$
|
41.50
|
|
(1)
|
Shares repurchased pursuant to net settlement by employees and directors, in satisfaction of income tax withholding obligations incurred through the vesting of Company stock awards.
|
Exhibit Number
|
Description
|
2.3
|
Agreement and Plan of Merger dated March 1, 2015 between PacWest Bancorp and Square 1 Financial, Inc. (Exhibit 2.1 to Form 8-K filed on March 5, 2015 and incorporated herein by this reference).
|
3.1
|
Certificate of Incorporation, as amended, of PacWest Bancorp, a Delaware corporation, dated April 22, 2008 (Exhibit 3.1 to Form 8-K filed on May 14, 2008 and incorporated herein by this reference).
|
3.2
|
Certificate of Amendment of Certificate of Incorporation of PacWest Bancorp, a Delaware Corporation, dated May 14, 2010 (Exhibit 3.1 to Form 8-K filed on May 14, 2010 and incorporated herein by this reference).
|
3.5
|
Amended and Restated Bylaws of PacWest Bancorp, a Delaware corporation, dated November 5, 2014 (Exhibit 3.5 to Form 10-Q filed on November 7, 2014 and incorporated herein by this reference).
|
10.1
|
PacWest Bancorp 2003 Stock Incentive Plan, as amended and restated, dated May 16, 2016 (Exhibit 10.1 to Form 8-K filed on May 18, 2016 and incorporated herein by this reference).
|
10.2
|
Form of Stock Award Agreement pursuant to the Company's 2003 Stock Incentive Plan, as amended. *
|
10.3
|
Form of Stock Unit Award Agreement pursuant to the Company's 2003 Stock Incentive Plan, as amended. *
|
31.1
|
Section 302 Certification of Chief Executive Officer. *
|
31.2
|
Section 302 Certification of Chief Financial Officer. *
|
32.1
|
Section 906 Certification of Chief Executive Officer. *
|
32.2
|
Section 906 Certification of Chief Financial Officer. *
|
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, (ii) the Condensed Consolidated Statements of Earnings for the three months ended September 30, 2016, June 30, 2016, and September 30, 2015 and nine months ended September 30, 2016 and 2015, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended September 30, 2016, June 30, 2016, and September 30, 2015 and nine months ended September 30, 2016 and 2015, (iv) the Condensed Consolidated Statement of Changes in Stockholders' Equity for the nine months ended September 30, 2016, (v) the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015, and (vi) the Notes to Condensed Consolidated Financial Statements. *
|
|
PACWEST BANCORP
|
|
|
November 4, 2016
|
/s/ Patrick J. Rusnak
|
|
Patrick J. Rusnak
|
|
Executive Vice President and Chief Financial Officer
|
You have been granted the following Stock Award:
|
|
|
Name of Grantee: |
|
|
Total Number of Shares Granted: ("Granted Stock") |
|
|
Type of Stock Award: |
|
[Restricted] [Performance] Stock Award |
Date of Grant: |
|
[insert date] |
Vesting Schedule: |
|
|
[Insert for Restricted Stock] |
|
|
By: |
|
|
Name:
|
|
|
|
|
|
|
|
|
|
GRANTEE:
|
|
PACWEST BANCORP
|
||||
By:
|
|
|
By:
|
|
||
Name:
|
|
Christopher D. Blake
Exec. Vice President |
1.
|
I have reviewed this report on Form 10-Q for the quarterly period ended
September 30, 2016
of PacWest Bancorp;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 4, 2016
|
/s/ Matthew P. Wagner
|
|
|
Matthew P. Wagner
Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-Q for the quarterly period ended
September 30, 2016
of PacWest Bancorp;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 4, 2016
|
/s/ Patrick J. Rusnak
|
|
|
Patrick J. Rusnak
Executive Vice President and Chief Financial Officer
|
Date:
|
November 4, 2016
|
/s/ Matthew P. Wagner
|
|
|
Matthew P. Wagner
Chief Executive Officer
|
Date:
|
November 4, 2016
|
/s/ Patrick J. Rusnak
|
|
|
Patrick J. Rusnak
Executive Vice President and Chief Financial Officer
|