Delaware
|
|
33-0885320
|
(State of Incorporation)
|
|
(I.R.S. Employer Identification No.)
|
Common Stock, par value $0.01 per share
|
|
PACW
|
|
The Nasdaq Stock Market, LLC
|
(Title of Each Class)
|
|
(Trading Symbol)
|
|
(Name of Exchange on Which Registered)
|
|
|
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 Statements of 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
|
AFX
|
American Financial Exchange
|
|
FRBSF
|
Federal Reserve Bank of San Francisco
|
ALLL
|
Allowance for Loan and Lease Losses
|
|
IPO
|
Initial Public Offering
|
ALM
|
Asset Liability Management
|
|
IRR
|
Interest Rate Risk
|
ASC
|
Accounting Standards Codification
|
|
LIBOR
|
London Inter-bank Offered Rate
|
ASU
|
Accounting Standards Update
|
|
LIHTC
|
Low Income Housing Tax Credit
|
Basel III
|
A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013
|
|
MBS
|
Mortgage-Backed Securities
|
BHCA
|
Bank Holding Company Act of 1956, as amended
|
|
MVE
|
Market Value of Equity
|
BOLI
|
Bank Owned Life Insurance
|
|
NII
|
Net Interest Income
|
C&I
|
Commercial and Industrial
|
|
NIM
|
Net Interest Margin
|
CDI
|
Core Deposit Intangible Assets
|
|
Non-PCI
|
Non-Purchased Credit Impaired
|
CECL
|
Current Expected Credit Loss
|
|
NSF
|
Non-Sufficient Funds
|
CET1
|
Common Equity Tier 1
|
|
OREO
|
Other Real Estate Owned
|
CMOs
|
Collateralized Mortgage Obligations
|
|
PD/LGD
|
Probability of Default/Loss Given Default
|
CPI
|
Consumer Price Index
|
|
PCI
|
Purchased Credit Impaired
|
CRA
|
Community Reinvestment Act
|
|
PRSUs
|
Performance-Based Restricted Stock Units
|
CRI
|
Customer Relationship Intangible Assets
|
|
PWAM
|
Pacific Western Asset Management Inc.
|
CUB
|
CU Bancorp (a company acquired on October 20, 2017)
|
|
ROU
|
Right-of-use
|
CU Bank
|
California United Bank (a wholly-owned subsidiary of CUB)
|
|
SBA
|
Small Business Administration
|
DBO
|
California Department of Business Oversight
|
|
SEC
|
Securities and Exchange Commission
|
DTAs
|
Deferred Tax Assets
|
|
Square 1
|
Square 1 Financial, Inc. (a company acquired on October 6, 2015)
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
|
Tax Equivalent Net Interest Income
|
Net interest income adjusted for tax equivalent adjustments related to tax-exempt interest on certain loans and investment securities
|
Efficiency Ratio
|
Noninterest expense (less intangible asset amortization, net foreclosed assets income/expense, and acquisition, integration and reorganization costs) divided by net revenues (the sum of tax equivalent net interest income plus noninterest income, less gain/loss on sale of securities and gain/loss on sales of assets other than loans and leases)
|
|
Tax Equivalent NIM
|
NIM adjusted for tax equivalent adjustments related to tax-exempt interest on certain loans and investment securities
|
FASB
|
Financial Accounting Standards Board
|
|
TCJA
|
Tax Cuts and Jobs Act
|
FDIC
|
Federal Deposit Insurance Corporation
|
|
TDRs
|
Troubled Debt Restructurings
|
FHLB
|
Federal Home Loan Bank of San Francisco
|
|
TRSAs
|
Time-Based Restricted Stock Awards
|
FRB
|
Board of Governors of the Federal Reserve System
|
|
U.S. GAAP
|
U.S. Generally Accepted Accounting Principles
|
|
|
|
VIE
|
Variable Interest Entity
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(Unaudited)
|
||||||||||||||||||
|
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
$
|
284,236
|
|
|
$
|
274,229
|
|
|
$
|
260,300
|
|
|
$
|
558,465
|
|
|
$
|
511,385
|
|
Investment securities
|
28,948
|
|
|
29,680
|
|
|
27,730
|
|
|
58,628
|
|
|
53,868
|
|
|||||
Deposits in financial institutions
|
1,349
|
|
|
650
|
|
|
484
|
|
|
1,999
|
|
|
1,036
|
|
|||||
Total interest income
|
314,533
|
|
|
304,559
|
|
|
288,514
|
|
|
619,092
|
|
|
566,289
|
|
|||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
38,720
|
|
|
34,235
|
|
|
16,367
|
|
|
72,955
|
|
|
30,185
|
|
|||||
Borrowings
|
7,210
|
|
|
7,710
|
|
|
2,649
|
|
|
14,920
|
|
|
3,569
|
|
|||||
Subordinated debentures
|
7,705
|
|
|
7,738
|
|
|
7,166
|
|
|
15,443
|
|
|
13,703
|
|
|||||
Total interest expense
|
53,635
|
|
|
49,683
|
|
|
26,182
|
|
|
103,318
|
|
|
47,457
|
|
|||||
Net interest income
|
260,898
|
|
|
254,876
|
|
|
262,332
|
|
|
515,774
|
|
|
518,832
|
|
|||||
Provision for credit losses
|
8,000
|
|
|
4,000
|
|
|
17,500
|
|
|
12,000
|
|
|
21,500
|
|
|||||
Net interest income after provision for credit losses
|
252,898
|
|
|
250,876
|
|
|
244,832
|
|
|
503,774
|
|
|
497,332
|
|
|||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other commissions and fees
|
11,590
|
|
|
11,008
|
|
|
11,767
|
|
|
22,598
|
|
|
22,032
|
|
|||||
Leased equipment income
|
9,182
|
|
|
9,282
|
|
|
9,790
|
|
|
18,464
|
|
|
19,377
|
|
|||||
Service charges on deposit accounts
|
3,771
|
|
|
3,730
|
|
|
4,265
|
|
|
7,501
|
|
|
8,439
|
|
|||||
Gain on sale of loans and leases
|
326
|
|
|
—
|
|
|
106
|
|
|
326
|
|
|
4,675
|
|
|||||
Gain on sale of securities
|
22,192
|
|
|
2,161
|
|
|
253
|
|
|
24,353
|
|
|
6,564
|
|
|||||
Other income
|
3,832
|
|
|
4,883
|
|
|
13,457
|
|
|
8,715
|
|
|
17,110
|
|
|||||
Total noninterest income
|
50,893
|
|
|
31,064
|
|
|
39,638
|
|
|
81,957
|
|
|
78,197
|
|
|||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation
|
68,956
|
|
|
70,845
|
|
|
69,913
|
|
|
139,801
|
|
|
140,936
|
|
|||||
Occupancy
|
14,457
|
|
|
14,320
|
|
|
13,575
|
|
|
28,777
|
|
|
26,798
|
|
|||||
Data processing
|
6,817
|
|
|
6,925
|
|
|
6,896
|
|
|
13,742
|
|
|
13,555
|
|
|||||
Leased equipment depreciation
|
5,558
|
|
|
5,651
|
|
|
5,237
|
|
|
11,209
|
|
|
10,612
|
|
|||||
Intangible asset amortization
|
4,870
|
|
|
4,870
|
|
|
5,587
|
|
|
9,740
|
|
|
11,933
|
|
|||||
Other professional services
|
4,629
|
|
|
4,513
|
|
|
5,257
|
|
|
9,142
|
|
|
9,696
|
|
|||||
Insurance and assessments
|
4,098
|
|
|
4,038
|
|
|
5,330
|
|
|
8,136
|
|
|
11,057
|
|
|||||
Loan expense
|
3,451
|
|
|
2,885
|
|
|
3,058
|
|
|
6,336
|
|
|
5,329
|
|
|||||
Acquisition, integration and reorganization costs
|
—
|
|
|
618
|
|
|
—
|
|
|
618
|
|
|
—
|
|
|||||
Foreclosed assets (income) expense, net
|
(146
|
)
|
|
29
|
|
|
(61
|
)
|
|
(117
|
)
|
|
(183
|
)
|
|||||
Other expense
|
12,737
|
|
|
11,593
|
|
|
11,657
|
|
|
24,330
|
|
|
24,111
|
|
|||||
Total noninterest expense
|
125,427
|
|
|
126,287
|
|
|
126,449
|
|
|
251,714
|
|
|
253,844
|
|
|||||
Earnings before income taxes
|
178,364
|
|
|
155,653
|
|
|
158,021
|
|
|
334,017
|
|
|
321,685
|
|
|||||
Income tax expense
|
50,239
|
|
|
43,049
|
|
|
42,286
|
|
|
93,288
|
|
|
87,674
|
|
|||||
Net earnings
|
$
|
128,125
|
|
|
$
|
112,604
|
|
|
$
|
115,735
|
|
|
$
|
240,729
|
|
|
$
|
234,011
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
1.07
|
|
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
$
|
1.99
|
|
|
$
|
1.85
|
|
Diluted
|
$
|
1.07
|
|
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
$
|
1.99
|
|
|
$
|
1.85
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(Unaudited)
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||
Net earnings
|
$
|
128,125
|
|
|
$
|
112,604
|
|
|
$
|
115,735
|
|
|
$
|
240,729
|
|
|
$
|
234,011
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized net holding gains (losses) on securities
|
|
|
|
|
|
|
|
|
|
||||||||||
available-for-sale arising during the period
|
72,168
|
|
|
62,639
|
|
|
(14,325
|
)
|
|
134,807
|
|
|
(76,994
|
)
|
|||||
Income tax (expense) benefit related to net unrealized
|
|
|
|
|
|
|
|
|
|
||||||||||
holding gains (losses) arising during the period
|
(20,459
|
)
|
|
(17,758
|
)
|
|
4,102
|
|
|
(38,217
|
)
|
|
22,033
|
|
|||||
Unrealized net holding gains (losses) on securities
|
|
|
|
|
|
|
|
|
|
||||||||||
available-for-sale, net of tax
|
51,709
|
|
|
44,881
|
|
|
(10,223
|
)
|
|
96,590
|
|
|
(54,961
|
)
|
|||||
Reclassification adjustment for net gains
|
|
|
|
|
|
|
|
|
|
||||||||||
included in net earnings (1)
|
(22,192
|
)
|
|
(2,161
|
)
|
|
(253
|
)
|
|
(24,353
|
)
|
|
(6,564
|
)
|
|||||
Income tax expense related to reclassification
|
|
|
|
|
|
|
|
|
|
||||||||||
adjustment
|
6,291
|
|
|
613
|
|
|
72
|
|
|
6,904
|
|
|
1,878
|
|
|||||
Reclassification adjustment for net gains
|
|
|
|
|
|
|
|
|
|
||||||||||
included in net earnings, net of tax
|
(15,901
|
)
|
|
(1,548
|
)
|
|
(181
|
)
|
|
(17,449
|
)
|
|
(4,686
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
35,808
|
|
|
43,333
|
|
|
(10,404
|
)
|
|
79,141
|
|
|
(59,647
|
)
|
|||||
Comprehensive income
|
$
|
163,933
|
|
|
$
|
155,937
|
|
|
$
|
105,331
|
|
|
$
|
319,870
|
|
|
$
|
174,364
|
|
(1)
|
Entire amounts are recognized in "Gain on sale of securities" on the Condensed Consolidated Statements of Earnings.
|
|
Six Months Ended June 30, 2019
|
|||||||||||||||||||||||||
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||||||||
|
|
|
|
|
Additional
|
|
|
|
|
|
Other
|
|
|
|||||||||||||
|
|
|
Par
|
|
Paid-in
|
|
Retained
|
|
Treasury
|
|
Comprehensive
|
|
|
|||||||||||||
|
Shares
|
|
Value
|
|
Capital
|
|
Earnings
|
|
Stock
|
|
Income (Loss)
|
|
Total
|
|||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||
Balance, December 31, 2018
|
123,189,833
|
|
|
$
|
1,251
|
|
|
$
|
3,722,723
|
|
|
$
|
1,182,674
|
|
|
$
|
(74,985
|
)
|
|
$
|
(6,075
|
)
|
|
$
|
4,825,588
|
|
Cumulative effect of change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
accounting principle (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
938
|
|
|
—
|
|
|
—
|
|
|
938
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
112,604
|
|
|
—
|
|
|
—
|
|
|
112,604
|
|
||||||
Other comprehensive income - net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
unrealized gain on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
available-for-sale, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,333
|
|
|
43,333
|
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
195,536
|
|
|
2
|
|
|
5,806
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,808
|
|
||||||
Restricted stock surrendered
|
(113,544
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,522
|
)
|
|
—
|
|
|
(4,522
|
)
|
||||||
Common stock repurchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock Repurchase Program
|
(3,070,676
|
)
|
|
(31
|
)
|
|
(119,556
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119,587
|
)
|
||||||
Cash dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock, $0.60/share
|
—
|
|
|
—
|
|
|
(73,180
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73,180
|
)
|
||||||
Balance, March 31, 2019
|
120,201,149
|
|
|
$
|
1,222
|
|
|
$
|
3,535,793
|
|
|
$
|
1,296,216
|
|
|
$
|
(79,507
|
)
|
|
$
|
37,258
|
|
|
$
|
4,790,982
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
128,125
|
|
|
—
|
|
|
—
|
|
|
128,125
|
|
||||||
Other comprehensive income - net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
unrealized gain on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
available-for-sale, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,808
|
|
|
35,808
|
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
619,653
|
|
|
6
|
|
|
6,715
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,721
|
|
||||||
Restricted stock surrendered
|
(74,429
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,788
|
)
|
|
—
|
|
|
(2,788
|
)
|
||||||
Common stock repurchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock Repurchase Program
|
(917,269
|
)
|
|
(9
|
)
|
|
(34,920
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,929
|
)
|
||||||
Cash dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock, $0.60/share
|
—
|
|
|
—
|
|
|
(71,909
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,909
|
)
|
||||||
Balance, June 30, 2019
|
119,829,104
|
|
|
$
|
1,219
|
|
|
$
|
3,435,679
|
|
|
$
|
1,424,341
|
|
|
$
|
(82,295
|
)
|
|
$
|
73,066
|
|
|
$
|
4,852,010
|
|
(1)
|
Impact due to adoption on January 1, 2019 of ASU 2016-02, "Leases (Topic 842)," and the related amendments.
|
|
Six Months Ended June 30, 2018
|
|||||||||||||||||||||||||
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||||||||
|
|
|
|
|
Additional
|
|
|
|
|
|
Other
|
|
|
|||||||||||||
|
|
|
Par
|
|
Paid-in
|
|
Retained
|
|
Treasury
|
|
Comprehensive
|
|
|
|||||||||||||
|
Shares
|
|
Value
|
|
Capital
|
|
Earnings
|
|
Stock
|
|
Income (Loss)
|
|
Total
|
|||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||
Balance, December 31, 2017
|
128,782,878
|
|
|
$
|
1,305
|
|
|
$
|
4,287,487
|
|
|
$
|
723,471
|
|
|
$
|
(65,836
|
)
|
|
$
|
31,171
|
|
|
$
|
4,977,598
|
|
Cumulative effect of changes in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
accounting principles (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,136
|
)
|
|
—
|
|
|
6,136
|
|
|
—
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
118,276
|
|
|
—
|
|
|
—
|
|
|
118,276
|
|
||||||
Other comprehensive loss - net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
unrealized loss on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
available-for-sale, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49,243
|
)
|
|
(49,243
|
)
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
96,034
|
|
|
1
|
|
|
7,198
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,199
|
|
||||||
Restricted stock surrendered
|
(55,186
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,858
|
)
|
|
—
|
|
|
(2,858
|
)
|
||||||
Common stock repurchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock Repurchase Program
|
(2,285,855
|
)
|
|
(23
|
)
|
|
(119,770
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119,793
|
)
|
||||||
Cash dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock, $0.50/share
|
—
|
|
|
—
|
|
|
(63,689
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,689
|
)
|
||||||
Balance, March 31, 2018
|
126,537,871
|
|
|
$
|
1,283
|
|
|
$
|
4,111,226
|
|
|
$
|
835,611
|
|
|
$
|
(68,694
|
)
|
|
$
|
(11,936
|
)
|
|
$
|
4,867,490
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
115,735
|
|
|
—
|
|
|
—
|
|
|
115,735
|
|
||||||
Other comprehensive loss - net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
unrealized loss on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
available-for-sale, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,404
|
)
|
|
(10,404
|
)
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
398,132
|
|
|
4
|
|
|
7,542
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,546
|
|
||||||
Restricted stock surrendered
|
(81,172
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,332
|
)
|
|
—
|
|
|
(4,332
|
)
|
||||||
Common stock repurchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock Repurchase Program
|
(2,286,881
|
)
|
|
(23
|
)
|
|
(122,001
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(122,024
|
)
|
||||||
Cash dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock, $0.60/share
|
—
|
|
|
—
|
|
|
(76,052
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76,052
|
)
|
||||||
Balance, June 30, 2018
|
124,567,950
|
|
|
$
|
1,264
|
|
|
$
|
3,920,715
|
|
|
$
|
951,346
|
|
|
$
|
(73,026
|
)
|
|
$
|
(22,340
|
)
|
|
$
|
4,777,959
|
|
(2)
|
Impact due to adoption on January 1, 2018 of ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," and ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income."
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(Unaudited)
|
||||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net earnings
|
$
|
240,729
|
|
|
$
|
234,011
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
18,607
|
|
|
17,512
|
|
||
Amortization of net premiums on securities available-for-sale
|
7,933
|
|
|
14,164
|
|
||
Amortization of intangible assets
|
9,740
|
|
|
11,933
|
|
||
Amortization of operating lease ROU assets
|
14,723
|
|
|
—
|
|
||
Provision for credit losses
|
12,000
|
|
|
21,500
|
|
||
(Gain) loss on sale of foreclosed assets
|
(320
|
)
|
|
35
|
|
||
Provision for losses on foreclosed assets
|
—
|
|
|
65
|
|
||
Gain on sale of loans and leases
|
(326
|
)
|
|
(4,675
|
)
|
||
Gain on sale of premises and equipment
|
(37
|
)
|
|
(8
|
)
|
||
Gain on sale of securities
|
(24,353
|
)
|
|
(6,564
|
)
|
||
Gain on BOLI death benefit
|
—
|
|
|
(387
|
)
|
||
Unrealized (gain) loss on derivatives and foreign currencies, net
|
(40
|
)
|
|
20
|
|
||
Earned stock compensation
|
12,529
|
|
|
14,745
|
|
||
Decrease (increase) in deferred income taxes, net
|
14,714
|
|
|
(1,640
|
)
|
||
Decrease in other assets
|
29,635
|
|
|
53,534
|
|
||
Decrease in accrued interest payable and other liabilities
|
(55,550
|
)
|
|
(47,696
|
)
|
||
Net cash provided by operating activities
|
279,984
|
|
|
306,549
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Net increase in loans and leases
|
(605,228
|
)
|
|
(95,306
|
)
|
||
Proceeds from sales of loans and leases
|
80,440
|
|
|
643,261
|
|
||
Proceeds from maturities and paydowns of securities available-for-sale
|
150,766
|
|
|
157,806
|
|
||
Proceeds from sales of securities available-for-sale
|
1,410,510
|
|
|
368,775
|
|
||
Purchases of securities available-for-sale
|
(1,232,214
|
)
|
|
(708,167
|
)
|
||
Net purchases of Federal Home Loan Bank stock
|
(11,043
|
)
|
|
(5,481
|
)
|
||
Proceeds from sales of foreclosed assets
|
4,184
|
|
|
57
|
|
||
Purchases of premises and equipment, net
|
(8,621
|
)
|
|
(7,332
|
)
|
||
Proceeds from sales of premises and equipment
|
54
|
|
|
32
|
|
||
Proceeds from BOLI death benefit
|
555
|
|
|
313
|
|
||
Net (increase) decrease in equipment leased to others under operating leases
|
(18,986
|
)
|
|
7,746
|
|
||
Net cash (used in) provided by investing activities
|
(229,583
|
)
|
|
361,704
|
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Net decrease in noninterest-bearing deposits
|
(588,417
|
)
|
|
(379,436
|
)
|
||
Net increase (decrease) in interest-bearing deposits
|
524,957
|
|
|
(554,453
|
)
|
||
Net increase in borrowings
|
541,945
|
|
|
719,884
|
|
||
Net decrease in subordinated debentures
|
—
|
|
|
(12,372
|
)
|
||
Common stock repurchased and restricted stock surrendered
|
(161,826
|
)
|
|
(249,007
|
)
|
||
Cash dividends paid
|
(145,089
|
)
|
|
(139,741
|
)
|
||
Net cash provided by (used in) financing activities
|
171,570
|
|
|
(615,125
|
)
|
||
|
|
|
|
||||
Net increase in cash, cash equivalents, and restricted cash
|
221,971
|
|
|
53,128
|
|
||
Cash, cash equivalents, and restricted cash, beginning of period
|
385,767
|
|
|
398,437
|
|
||
Cash, cash equivalents, and restricted cash, end of period
|
$
|
607,738
|
|
|
$
|
451,565
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(Unaudited)
|
||||||
|
(In thousands)
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
97,238
|
|
|
$
|
47,569
|
|
Cash paid for income taxes
|
68,305
|
|
|
23,273
|
|
||
Loans transferred to foreclosed assets
|
37
|
|
|
1,059
|
|
||
Transfers from loans held for investment to loans held for sale
|
25,124
|
|
|
—
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||||||||||
Security Type
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
Agency residential CMOs
|
$
|
1,125,267
|
|
|
$
|
25,513
|
|
|
$
|
(306
|
)
|
|
$
|
1,150,474
|
|
|
$
|
634,774
|
|
|
$
|
3,448
|
|
|
$
|
(5,372
|
)
|
|
$
|
632,850
|
|
Agency commercial MBS
|
1,033,895
|
|
|
25,046
|
|
|
(95
|
)
|
|
1,058,846
|
|
|
1,133,846
|
|
|
383
|
|
|
(21,525
|
)
|
|
1,112,704
|
|
||||||||
Municipal securities
|
700,470
|
|
|
36,594
|
|
|
(494
|
)
|
|
736,570
|
|
|
1,298,514
|
|
|
21,000
|
|
|
(7,320
|
)
|
|
1,312,194
|
|
||||||||
Agency residential MBS
|
343,131
|
|
|
8,381
|
|
|
(152
|
)
|
|
351,360
|
|
|
281,486
|
|
|
1,902
|
|
|
(2,300
|
)
|
|
281,088
|
|
||||||||
Asset-backed securities
|
226,693
|
|
|
866
|
|
|
(438
|
)
|
|
227,121
|
|
|
81,762
|
|
|
104
|
|
|
(481
|
)
|
|
81,385
|
|
||||||||
Private label residential CMOs
|
108,526
|
|
|
3,610
|
|
|
(99
|
)
|
|
112,037
|
|
|
101,313
|
|
|
1,985
|
|
|
(2,093
|
)
|
|
101,205
|
|
||||||||
Collateralized loan obligations
|
94,149
|
|
|
—
|
|
|
(347
|
)
|
|
93,802
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
SBA securities
|
51,154
|
|
|
670
|
|
|
(12
|
)
|
|
51,812
|
|
|
68,158
|
|
|
—
|
|
|
(1,111
|
)
|
|
67,047
|
|
||||||||
Corporate debt securities
|
17,000
|
|
|
3,034
|
|
|
—
|
|
|
20,034
|
|
|
17,000
|
|
|
553
|
|
|
—
|
|
|
17,553
|
|
||||||||
U.S. Treasury securities
|
4,983
|
|
|
205
|
|
|
—
|
|
|
5,188
|
|
|
401,056
|
|
|
2,437
|
|
|
(88
|
)
|
|
403,405
|
|
||||||||
Total
|
$
|
3,705,268
|
|
|
$
|
103,919
|
|
|
$
|
(1,943
|
)
|
|
$
|
3,807,244
|
|
|
$
|
4,017,909
|
|
|
$
|
31,812
|
|
|
$
|
(40,290
|
)
|
|
$
|
4,009,431
|
|
|
June 30, 2019
|
||||||||||||||||||||||
|
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)
|
||||||||||||||||||||||
Agency residential CMOs
|
$
|
85,397
|
|
|
$
|
(267
|
)
|
|
$
|
7,696
|
|
|
$
|
(39
|
)
|
|
$
|
93,093
|
|
|
$
|
(306
|
)
|
Agency commercial MBS
|
—
|
|
|
—
|
|
|
29,902
|
|
|
(95
|
)
|
|
29,902
|
|
|
(95
|
)
|
||||||
Municipal securities
|
4,044
|
|
|
(12
|
)
|
|
25,874
|
|
|
(482
|
)
|
|
29,918
|
|
|
(494
|
)
|
||||||
Agency residential MBS
|
—
|
|
|
—
|
|
|
9,533
|
|
|
(152
|
)
|
|
9,533
|
|
|
(152
|
)
|
||||||
Asset-backed securities
|
84,083
|
|
|
(426
|
)
|
|
3,915
|
|
|
(12
|
)
|
|
87,998
|
|
|
(438
|
)
|
||||||
Private label residential CMOs
|
—
|
|
|
—
|
|
|
18,008
|
|
|
(99
|
)
|
|
18,008
|
|
|
(99
|
)
|
||||||
Collateralized loan obligations
|
93,802
|
|
|
(347
|
)
|
|
—
|
|
|
—
|
|
|
93,802
|
|
|
(347
|
)
|
||||||
SBA securities
|
—
|
|
|
—
|
|
|
2,063
|
|
|
(12
|
)
|
|
2,063
|
|
|
(12
|
)
|
||||||
Total
|
$
|
267,326
|
|
|
$
|
(1,052
|
)
|
|
$
|
96,991
|
|
|
$
|
(891
|
)
|
|
$
|
364,317
|
|
|
$
|
(1,943
|
)
|
|
December 31, 2018
|
||||||||||||||||||||||
|
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)
|
||||||||||||||||||||||
Agency residential CMOs
|
$
|
69,859
|
|
|
$
|
(326
|
)
|
|
$
|
164,097
|
|
|
$
|
(5,046
|
)
|
|
$
|
233,956
|
|
|
$
|
(5,372
|
)
|
Agency commercial MBS
|
40,641
|
|
|
(341
|
)
|
|
1,020,684
|
|
|
(21,184
|
)
|
|
1,061,325
|
|
|
(21,525
|
)
|
||||||
Municipal securities
|
52,386
|
|
|
(238
|
)
|
|
284,915
|
|
|
(7,082
|
)
|
|
337,301
|
|
|
(7,320
|
)
|
||||||
Agency residential MBS
|
60,164
|
|
|
(169
|
)
|
|
85,245
|
|
|
(2,131
|
)
|
|
145,409
|
|
|
(2,300
|
)
|
||||||
Asset-backed securities
|
11,548
|
|
|
(38
|
)
|
|
35,859
|
|
|
(443
|
)
|
|
47,407
|
|
|
(481
|
)
|
||||||
Private label residential CMOs
|
32,170
|
|
|
(831
|
)
|
|
49,237
|
|
|
(1,262
|
)
|
|
81,407
|
|
|
(2,093
|
)
|
||||||
SBA securities
|
249
|
|
|
(1
|
)
|
|
66,798
|
|
|
(1,110
|
)
|
|
67,047
|
|
|
(1,111
|
)
|
||||||
U.S. Treasury securities
|
49,729
|
|
|
(88
|
)
|
|
—
|
|
|
—
|
|
|
49,729
|
|
|
(88
|
)
|
||||||
Total
|
$
|
316,746
|
|
|
$
|
(2,032
|
)
|
|
$
|
1,706,835
|
|
|
$
|
(38,258
|
)
|
|
$
|
2,023,581
|
|
|
$
|
(40,290
|
)
|
|
June 30, 2019
|
||||||
|
Amortized
|
|
Fair
|
||||
Maturities
|
Cost
|
|
Value
|
||||
|
(In thousands)
|
||||||
Due in one year or less
|
$
|
14,660
|
|
|
$
|
14,647
|
|
Due after one year through five years
|
194,493
|
|
|
197,141
|
|
||
Due after five years through ten years
|
1,028,156
|
|
|
1,054,251
|
|
||
Due after ten years
|
2,467,959
|
|
|
2,541,205
|
|
||
Total securities available-for-sale
|
$
|
3,705,268
|
|
|
$
|
3,807,244
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Taxable interest
|
$
|
20,944
|
|
|
$
|
19,742
|
|
|
$
|
17,106
|
|
|
$
|
40,686
|
|
|
$
|
31,705
|
|
Non-taxable interest
|
7,547
|
|
|
9,593
|
|
|
10,276
|
|
|
17,140
|
|
|
21,383
|
|
|||||
Dividend income
|
457
|
|
|
345
|
|
|
348
|
|
|
802
|
|
|
780
|
|
|||||
Total interest income on investment securities
|
$
|
28,948
|
|
|
$
|
29,680
|
|
|
$
|
27,730
|
|
|
$
|
58,628
|
|
|
$
|
53,868
|
|
|
June 30,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Real estate mortgage
|
$
|
8,087,586
|
|
|
$
|
7,933,859
|
|
Real estate construction and land
|
2,405,073
|
|
|
2,262,710
|
|
||
Commercial
|
7,593,728
|
|
|
7,428,500
|
|
||
Consumer
|
446,353
|
|
|
401,296
|
|
||
Total gross loans and leases held for investment
|
18,532,740
|
|
|
18,026,365
|
|
||
Deferred fees, net
|
(59,888
|
)
|
|
(68,652
|
)
|
||
Total loans and leases held for investment,
|
|
|
|
||||
net of deferred fees
|
18,472,852
|
|
|
17,957,713
|
|
||
Allowance for loan and lease losses
|
(135,037
|
)
|
|
(132,472
|
)
|
||
Total loans and leases held for investment, net
|
$
|
18,337,815
|
|
|
$
|
17,825,241
|
|
|
June 30, 2019
|
||||||||||||||||||
|
30 - 89
|
|
90 or More
|
|
|
|
|
|
|
||||||||||
|
Days
|
|
Days
|
|
Total
|
|
|
|
|
||||||||||
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
4,516
|
|
|
$
|
6,632
|
|
|
$
|
11,148
|
|
|
$
|
4,424,126
|
|
|
$
|
4,435,274
|
|
Income producing and other residential
|
3,692
|
|
|
422
|
|
|
4,114
|
|
|
3,636,638
|
|
|
3,640,752
|
|
|||||
Total real estate mortgage
|
8,208
|
|
|
7,054
|
|
|
15,262
|
|
|
8,060,764
|
|
|
8,076,026
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
972,891
|
|
|
972,891
|
|
|||||
Residential
|
4,672
|
|
|
—
|
|
|
4,672
|
|
|
1,398,567
|
|
|
1,403,239
|
|
|||||
Total real estate construction and land
|
4,672
|
|
|
—
|
|
|
4,672
|
|
|
2,371,458
|
|
|
2,376,130
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
12,382
|
|
|
1,624
|
|
|
14,006
|
|
|
3,592,001
|
|
|
3,606,007
|
|
|||||
Venture capital
|
447
|
|
|
—
|
|
|
447
|
|
|
2,194,296
|
|
|
2,194,743
|
|
|||||
Other commercial
|
2,329
|
|
|
928
|
|
|
3,257
|
|
|
1,770,307
|
|
|
1,773,564
|
|
|||||
Total commercial
|
15,158
|
|
|
2,552
|
|
|
17,710
|
|
|
7,556,604
|
|
|
7,574,314
|
|
|||||
Consumer
|
964
|
|
|
169
|
|
|
1,133
|
|
|
445,249
|
|
|
446,382
|
|
|||||
Total
|
$
|
29,002
|
|
|
$
|
9,775
|
|
|
$
|
38,777
|
|
|
$
|
18,434,075
|
|
|
$
|
18,472,852
|
|
|
December 31, 2018
|
||||||||||||||||||
|
30 - 89
|
|
90 or More
|
|
|
|
|
|
|
||||||||||
|
Days
|
|
Days
|
|
Total
|
|
|
|
|
||||||||||
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
3,487
|
|
|
$
|
7,541
|
|
|
$
|
11,028
|
|
|
$
|
4,813,270
|
|
|
$
|
4,824,298
|
|
Income producing and other residential
|
1,557
|
|
|
476
|
|
|
2,033
|
|
|
3,091,810
|
|
|
3,093,843
|
|
|||||
Total real estate mortgage
|
5,044
|
|
|
8,017
|
|
|
13,061
|
|
|
7,905,080
|
|
|
7,918,141
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
442
|
|
|
442
|
|
|
912,141
|
|
|
912,583
|
|
|||||
Residential
|
1,527
|
|
|
—
|
|
|
1,527
|
|
|
1,319,546
|
|
|
1,321,073
|
|
|||||
Total real estate construction and land
|
1,527
|
|
|
442
|
|
|
1,969
|
|
|
2,231,687
|
|
|
2,233,656
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
47
|
|
|
646
|
|
|
693
|
|
|
3,304,728
|
|
|
3,305,421
|
|
|||||
Venture capital
|
4,705
|
|
|
—
|
|
|
4,705
|
|
|
2,034,043
|
|
|
2,038,748
|
|
|||||
Other commercial
|
5,181
|
|
|
1,285
|
|
|
6,466
|
|
|
2,053,960
|
|
|
2,060,426
|
|
|||||
Total commercial
|
9,933
|
|
|
1,931
|
|
|
11,864
|
|
|
7,392,731
|
|
|
7,404,595
|
|
|||||
Consumer
|
581
|
|
|
333
|
|
|
914
|
|
|
400,407
|
|
|
401,321
|
|
|||||
Total
|
$
|
17,085
|
|
|
$
|
10,723
|
|
|
$
|
27,808
|
|
|
$
|
17,929,905
|
|
|
$
|
17,957,713
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Nonaccrual
|
|
Performing
|
|
Total
|
|
Nonaccrual
|
|
Performing
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
17,012
|
|
|
$
|
4,418,262
|
|
|
$
|
4,435,274
|
|
|
$
|
15,321
|
|
|
$
|
4,808,977
|
|
|
$
|
4,824,298
|
|
Income producing and other residential
|
2,883
|
|
|
3,637,869
|
|
|
3,640,752
|
|
|
2,524
|
|
|
3,091,319
|
|
|
3,093,843
|
|
||||||
Total real estate mortgage
|
19,895
|
|
|
8,056,131
|
|
|
8,076,026
|
|
|
17,845
|
|
|
7,900,296
|
|
|
7,918,141
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
390
|
|
|
972,501
|
|
|
972,891
|
|
|
442
|
|
|
912,141
|
|
|
912,583
|
|
||||||
Residential
|
—
|
|
|
1,403,239
|
|
|
1,403,239
|
|
|
—
|
|
|
1,321,073
|
|
|
1,321,073
|
|
||||||
Total real estate construction and land
|
390
|
|
|
2,375,740
|
|
|
2,376,130
|
|
|
442
|
|
|
2,233,214
|
|
|
2,233,656
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-based
|
32,236
|
|
|
3,573,771
|
|
|
3,606,007
|
|
|
32,324
|
|
|
3,273,097
|
|
|
3,305,421
|
|
||||||
Venture capital
|
22,501
|
|
|
2,172,242
|
|
|
2,194,743
|
|
|
20,299
|
|
|
2,018,449
|
|
|
2,038,748
|
|
||||||
Other commercial
|
5,799
|
|
|
1,767,765
|
|
|
1,773,564
|
|
|
7,380
|
|
|
2,053,046
|
|
|
2,060,426
|
|
||||||
Total commercial
|
60,536
|
|
|
7,513,778
|
|
|
7,574,314
|
|
|
60,003
|
|
|
7,344,592
|
|
|
7,404,595
|
|
||||||
Consumer
|
444
|
|
|
445,938
|
|
|
446,382
|
|
|
1,043
|
|
|
400,278
|
|
|
401,321
|
|
||||||
Total
|
$
|
81,265
|
|
|
$
|
18,391,587
|
|
|
$
|
18,472,852
|
|
|
$
|
79,333
|
|
|
$
|
17,878,380
|
|
|
$
|
17,957,713
|
|
|
June 30, 2019
|
||||||||||||||
|
Classified
|
|
Special Mention
|
|
Pass
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
32,926
|
|
|
$
|
52,477
|
|
|
$
|
4,349,871
|
|
|
$
|
4,435,274
|
|
Income producing and other residential
|
8,693
|
|
|
355
|
|
|
3,631,704
|
|
|
3,640,752
|
|
||||
Total real estate mortgage
|
41,619
|
|
|
52,832
|
|
|
7,981,575
|
|
|
8,076,026
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
390
|
|
|
—
|
|
|
972,501
|
|
|
972,891
|
|
||||
Residential
|
—
|
|
|
5,268
|
|
|
1,397,971
|
|
|
1,403,239
|
|
||||
Total real estate construction and land
|
390
|
|
|
5,268
|
|
|
2,370,472
|
|
|
2,376,130
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
41,151
|
|
|
48,324
|
|
|
3,516,532
|
|
|
3,606,007
|
|
||||
Venture capital
|
42,105
|
|
|
68,426
|
|
|
2,084,212
|
|
|
2,194,743
|
|
||||
Other commercial
|
65,139
|
|
|
63,591
|
|
|
1,644,834
|
|
|
1,773,564
|
|
||||
Total commercial
|
148,395
|
|
|
180,341
|
|
|
7,245,578
|
|
|
7,574,314
|
|
||||
Consumer
|
575
|
|
|
863
|
|
|
444,944
|
|
|
446,382
|
|
||||
Total
|
$
|
190,979
|
|
|
$
|
239,304
|
|
|
$
|
18,042,569
|
|
|
$
|
18,472,852
|
|
|
December 31, 2018
|
||||||||||||||
|
Classified
|
|
Special Mention
|
|
Pass
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
57,734
|
|
|
$
|
74,785
|
|
|
$
|
4,691,779
|
|
|
$
|
4,824,298
|
|
Income producing and other residential
|
10,521
|
|
|
968
|
|
|
3,082,354
|
|
|
3,093,843
|
|
||||
Total real estate mortgage
|
68,255
|
|
|
75,753
|
|
|
7,774,133
|
|
|
7,918,141
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
442
|
|
|
7,041
|
|
|
905,100
|
|
|
912,583
|
|
||||
Residential
|
—
|
|
|
1,527
|
|
|
1,319,546
|
|
|
1,321,073
|
|
||||
Total real estate construction and land
|
442
|
|
|
8,568
|
|
|
2,224,646
|
|
|
2,233,656
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
45,957
|
|
|
48,338
|
|
|
3,211,126
|
|
|
3,305,421
|
|
||||
Venture capital
|
28,731
|
|
|
77,588
|
|
|
1,932,429
|
|
|
2,038,748
|
|
||||
Other commercial
|
92,526
|
|
|
50,136
|
|
|
1,917,764
|
|
|
2,060,426
|
|
||||
Total commercial
|
167,214
|
|
|
176,062
|
|
|
7,061,319
|
|
|
7,404,595
|
|
||||
Consumer
|
1,199
|
|
|
1,015
|
|
|
399,107
|
|
|
401,321
|
|
||||
Total
|
$
|
237,110
|
|
|
$
|
261,398
|
|
|
$
|
17,459,205
|
|
|
$
|
17,957,713
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
|
|
Total
|
|
|
|
|
|
Total
|
||||||||||||
|
Nonaccrual
|
|
|
|
Impaired
|
|
Nonaccrual
|
|
|
|
Impaired
|
||||||||||||
|
Loans
|
|
|
|
Loans
|
|
Loans
|
|
|
|
Loans
|
||||||||||||
|
and
|
|
Performing
|
|
and
|
|
and
|
|
Performing
|
|
and
|
||||||||||||
|
Leases
|
|
TDRs
|
|
Leases
|
|
Leases
|
|
TDRs
|
|
Leases
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage
|
$
|
19,895
|
|
|
$
|
10,457
|
|
|
$
|
30,352
|
|
|
$
|
17,845
|
|
|
$
|
11,484
|
|
|
$
|
29,329
|
|
Real estate construction and land
|
390
|
|
|
4,986
|
|
|
5,376
|
|
|
442
|
|
|
5,420
|
|
|
5,862
|
|
||||||
Commercial
|
60,536
|
|
|
931
|
|
|
61,467
|
|
|
60,003
|
|
|
692
|
|
|
60,695
|
|
||||||
Consumer
|
444
|
|
|
90
|
|
|
534
|
|
|
1,043
|
|
|
105
|
|
|
1,148
|
|
||||||
Total
|
$
|
81,265
|
|
|
$
|
16,464
|
|
|
$
|
97,729
|
|
|
$
|
79,333
|
|
|
$
|
17,701
|
|
|
$
|
97,034
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
Unpaid
|
|
|
|
|
|
Unpaid
|
|
|
||||||||||||
|
Recorded
|
|
Principal
|
|
Related
|
|
Recorded
|
|
Principal
|
|
Related
|
||||||||||||
Impaired Loans and Leases
|
Investment
|
|
Balance
|
|
Allowance
|
|
Investment
|
|
Balance
|
|
Allowance
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
493
|
|
|
$
|
493
|
|
|
$
|
69
|
|
|
$
|
1,736
|
|
|
$
|
1,648
|
|
|
$
|
170
|
|
Income producing and other residential
|
2,066
|
|
|
2,061
|
|
|
191
|
|
|
2,569
|
|
|
2,563
|
|
|
247
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset based
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Venture capital
|
22,265
|
|
|
24,353
|
|
|
4,482
|
|
|
11,621
|
|
|
13,255
|
|
|
3,141
|
|
||||||
Other commercial
|
618
|
|
|
618
|
|
|
—
|
|
|
473
|
|
|
482
|
|
|
473
|
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
19,994
|
|
|
$
|
34,694
|
|
|
|
|
$
|
17,783
|
|
|
$
|
32,035
|
|
|
|
||||
Income producing and other residential
|
7,799
|
|
|
10,234
|
|
|
|
|
7,241
|
|
|
9,425
|
|
|
|
||||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
5,376
|
|
|
5,419
|
|
|
|
|
5,862
|
|
|
5,870
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-based
|
32,236
|
|
|
49,853
|
|
|
|
|
32,324
|
|
|
38,100
|
|
|
|
||||||||
Venture capital
|
237
|
|
|
26,531
|
|
|
|
|
8,678
|
|
|
41,335
|
|
|
|
||||||||
Other commercial
|
6,111
|
|
|
26,562
|
|
|
|
|
7,599
|
|
|
25,740
|
|
|
|
||||||||
Consumer
|
534
|
|
|
702
|
|
|
|
|
1,148
|
|
|
1,470
|
|
|
|
||||||||
Total Loans and Leases With and
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Without an Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate mortgage
|
$
|
30,352
|
|
|
$
|
47,482
|
|
|
$
|
260
|
|
|
$
|
29,329
|
|
|
$
|
45,671
|
|
|
$
|
417
|
|
Real estate construction and land
|
5,376
|
|
|
5,419
|
|
|
—
|
|
|
5,862
|
|
|
5,870
|
|
|
—
|
|
||||||
Commercial
|
61,467
|
|
|
127,917
|
|
|
4,482
|
|
|
60,695
|
|
|
118,912
|
|
|
3,614
|
|
||||||
Consumer
|
534
|
|
|
702
|
|
|
—
|
|
|
1,148
|
|
|
1,470
|
|
|
—
|
|
||||||
Total
|
$
|
97,729
|
|
|
$
|
181,520
|
|
|
$
|
4,742
|
|
|
$
|
97,034
|
|
|
$
|
171,923
|
|
|
$
|
4,031
|
|
|
Three Months Ended June 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Weighted
|
|
Interest
|
|
Weighted
|
|
Interest
|
||||||||
|
Average
|
|
Income
|
|
Average
|
|
Income
|
||||||||
Impaired Loans and Leases
|
Balance(1)
|
|
Recognized
|
|
Balance(1)
|
|
Recognized
|
||||||||
|
(In thousands)
|
||||||||||||||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
493
|
|
|
$
|
8
|
|
|
$
|
7,786
|
|
|
$
|
103
|
|
Income producing and other residential
|
2,066
|
|
|
15
|
|
|
2,419
|
|
|
21
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Venture capital
|
19,242
|
|
|
—
|
|
|
18,449
|
|
|
—
|
|
||||
Other commercial
|
619
|
|
|
9
|
|
|
688
|
|
|
—
|
|
||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
16,716
|
|
|
$
|
54
|
|
|
$
|
58,733
|
|
|
$
|
725
|
|
Income producing and other residential
|
7,738
|
|
|
57
|
|
|
8,293
|
|
|
44
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
5,376
|
|
|
98
|
|
|
5,549
|
|
|
93
|
|
||||
Residential
|
—
|
|
|
—
|
|
|
10,450
|
|
|
—
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
31,148
|
|
|
—
|
|
|
29,677
|
|
|
—
|
|
||||
Venture capital
|
237
|
|
|
—
|
|
|
2,800
|
|
|
—
|
|
||||
Other commercial
|
6,111
|
|
|
20
|
|
|
8,508
|
|
|
335
|
|
||||
Consumer
|
511
|
|
|
1
|
|
|
355
|
|
|
2
|
|
||||
Total Loans and Leases With and
|
|
|
|
|
|
|
|
||||||||
Without an Allowance Recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage
|
$
|
27,013
|
|
|
$
|
134
|
|
|
$
|
77,231
|
|
|
$
|
893
|
|
Real estate construction and land
|
5,376
|
|
|
98
|
|
|
15,999
|
|
|
93
|
|
||||
Commercial
|
57,357
|
|
|
29
|
|
|
60,122
|
|
|
335
|
|
||||
Consumer
|
511
|
|
|
1
|
|
|
355
|
|
|
2
|
|
||||
Total
|
$
|
90,257
|
|
|
$
|
262
|
|
|
$
|
153,707
|
|
|
$
|
1,323
|
|
(1)
|
For loans and leases reported as impaired at June 30, 2019 and 2018, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.
|
|
Six Months Ended June 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Weighted
|
|
Interest
|
|
Weighted
|
|
Interest
|
||||||||
|
Average
|
|
Income
|
|
Average
|
|
Income
|
||||||||
Impaired Loans and Leases
|
Balance(1)
|
|
Recognized
|
|
Balance(1)
|
|
Recognized
|
||||||||
|
(In thousands)
|
||||||||||||||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
493
|
|
|
$
|
16
|
|
|
$
|
7,786
|
|
|
$
|
204
|
|
Income producing and other residential
|
2,066
|
|
|
29
|
|
|
2,419
|
|
|
42
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Venture capital
|
15,359
|
|
|
—
|
|
|
15,715
|
|
|
—
|
|
||||
Other commercial
|
619
|
|
|
18
|
|
|
346
|
|
|
—
|
|
||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
16,016
|
|
|
$
|
106
|
|
|
$
|
55,214
|
|
|
$
|
1,378
|
|
Income producing and other residential
|
7,647
|
|
|
110
|
|
|
8,277
|
|
|
88
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
5,376
|
|
|
196
|
|
|
5,549
|
|
|
184
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
30,881
|
|
|
—
|
|
|
29,677
|
|
|
—
|
|
||||
Venture capital
|
237
|
|
|
—
|
|
|
2,645
|
|
|
—
|
|
||||
Other commercial
|
6,052
|
|
|
51
|
|
|
7,946
|
|
|
1,377
|
|
||||
Consumer
|
485
|
|
|
3
|
|
|
341
|
|
|
4
|
|
||||
Total Loans and Leases With and
|
|
|
|
|
|
|
|
||||||||
Without an Allowance Recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage
|
$
|
26,222
|
|
|
$
|
261
|
|
|
$
|
73,696
|
|
|
$
|
1,712
|
|
Real estate construction and land
|
5,376
|
|
|
196
|
|
|
10,803
|
|
|
184
|
|
||||
Commercial
|
53,148
|
|
|
69
|
|
|
56,329
|
|
|
1,377
|
|
||||
Consumer
|
485
|
|
|
3
|
|
|
341
|
|
|
4
|
|
||||
Total
|
$
|
85,231
|
|
|
$
|
529
|
|
|
$
|
141,169
|
|
|
$
|
3,277
|
|
(1)
|
For loans and leases reported as impaired at June 30, 2019 and 2018, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.
|
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||
|
|
|
Pre-
|
|
Post-
|
|
|
|
Pre-
|
|
Post-
|
||||||||||
|
|
|
Modification
|
|
Modification
|
|
|
|
Modification
|
|
Modification
|
||||||||||
|
Number
|
|
Outstanding
|
|
Outstanding
|
|
Number
|
|
Outstanding
|
|
Outstanding
|
||||||||||
|
of
|
|
Recorded
|
|
Recorded
|
|
of
|
|
Recorded
|
|
Recorded
|
||||||||||
Troubled Debt Restructurings
|
Loans
|
|
Investment
|
|
Investment
|
|
Loans
|
|
Investment
|
|
Investment
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income producing and other residential
|
3
|
|
|
$
|
456
|
|
|
$
|
456
|
|
|
3
|
|
|
$
|
1,704
|
|
|
$
|
645
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
1
|
|
|
620
|
|
|
620
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Venture capital
|
4
|
|
|
13,971
|
|
|
14,972
|
|
|
4
|
|
|
5,236
|
|
|
5,236
|
|
||||
Other commercial
|
3
|
|
|
107
|
|
|
107
|
|
|
2
|
|
|
31
|
|
|
31
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
27
|
|
|
27
|
|
||||
Total
|
11
|
|
|
$
|
15,154
|
|
|
$
|
16,155
|
|
|
10
|
|
|
$
|
6,998
|
|
|
$
|
5,939
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||
|
|
|
Pre-
|
|
Post-
|
|
|
|
Pre-
|
|
Post-
|
||||||||||
|
|
|
Modification
|
|
Modification
|
|
|
|
Modification
|
|
Modification
|
||||||||||
|
Number
|
|
Outstanding
|
|
Outstanding
|
|
Number
|
|
Outstanding
|
|
Outstanding
|
||||||||||
|
of
|
|
Recorded
|
|
Recorded
|
|
of
|
|
Recorded
|
|
Recorded
|
||||||||||
Troubled Debt Restructurings
|
Loans
|
|
Investment
|
|
Investment
|
|
Loans
|
|
Investment
|
|
Investment
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
1
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Income producing and other residential
|
6
|
|
|
1,245
|
|
|
1,245
|
|
|
3
|
|
|
1,704
|
|
|
645
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
1
|
|
|
620
|
|
|
620
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Venture capital
|
10
|
|
|
16,076
|
|
|
16,214
|
|
|
4
|
|
|
5,236
|
|
|
5,236
|
|
||||
Other commercial
|
11
|
|
|
692
|
|
|
692
|
|
|
4
|
|
|
11,814
|
|
|
11,814
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
27
|
|
|
27
|
|
||||
Total
|
29
|
|
|
$
|
18,670
|
|
|
$
|
18,771
|
|
|
12
|
|
|
$
|
18,781
|
|
|
$
|
17,722
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30, 2019
|
|
June 30, 2019
|
||||
|
(In thousands)
|
||||||
Component of leases receivable income:
|
|
|
|
||||
Interest income on net investments in leases
|
$
|
2,886
|
|
|
$
|
6,026
|
|
|
June 30, 2019
|
||
|
(In thousands)
|
||
Period Ending December 31,
|
|
||
2019
|
$
|
35,758
|
|
2020
|
71,453
|
|
|
2021
|
50,719
|
|
|
2022
|
19,333
|
|
|
2023
|
11,265
|
|
|
Thereafter
|
8,763
|
|
|
Total undiscounted cash flows
|
197,291
|
|
|
Less: Unearned income
|
(17,112
|
)
|
|
Present value of lease payments
|
$
|
180,179
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for Loan and Lease Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
$
|
45,754
|
|
|
$
|
27,208
|
|
|
$
|
61,496
|
|
|
$
|
1,823
|
|
|
$
|
136,281
|
|
Charge-offs
|
(534
|
)
|
|
—
|
|
|
(16,927
|
)
|
|
(176
|
)
|
|
(17,637
|
)
|
|||||
Recoveries
|
240
|
|
|
—
|
|
|
6,080
|
|
|
73
|
|
|
6,393
|
|
|||||
Net charge-offs
|
(294
|
)
|
|
—
|
|
|
(10,847
|
)
|
|
(103
|
)
|
|
(11,244
|
)
|
|||||
Provision (negative provision)
|
1,366
|
|
|
(830
|
)
|
|
8,752
|
|
|
712
|
|
|
10,000
|
|
|||||
Balance, end of period
|
$
|
46,826
|
|
|
$
|
26,378
|
|
|
$
|
59,401
|
|
|
$
|
2,432
|
|
|
$
|
135,037
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for Loan and Lease Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
$
|
46,021
|
|
|
$
|
28,209
|
|
|
$
|
56,360
|
|
|
$
|
1,882
|
|
|
$
|
132,472
|
|
Charge-offs
|
(730
|
)
|
|
—
|
|
|
(19,930
|
)
|
|
(442
|
)
|
|
(21,102
|
)
|
|||||
Recoveries
|
383
|
|
|
—
|
|
|
9,186
|
|
|
98
|
|
|
9,667
|
|
|||||
Net charge-offs
|
(347
|
)
|
|
—
|
|
|
(10,744
|
)
|
|
(344
|
)
|
|
(11,435
|
)
|
|||||
Provision (negative provision)
|
1,152
|
|
|
(1,831
|
)
|
|
13,785
|
|
|
894
|
|
|
14,000
|
|
|||||
Balance, end of period
|
$
|
46,826
|
|
|
$
|
26,378
|
|
|
$
|
59,401
|
|
|
$
|
2,432
|
|
|
$
|
135,037
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Allowance by
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
260
|
|
|
$
|
—
|
|
|
$
|
4,482
|
|
|
$
|
—
|
|
|
$
|
4,742
|
|
Collectively evaluated for impairment
|
$
|
46,566
|
|
|
$
|
26,378
|
|
|
$
|
54,919
|
|
|
$
|
2,432
|
|
|
$
|
130,295
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Loans and Leases by
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
27,594
|
|
|
$
|
5,376
|
|
|
$
|
60,380
|
|
|
$
|
—
|
|
|
$
|
93,350
|
|
Collectively evaluated for impairment
|
8,048,432
|
|
|
2,370,754
|
|
|
7,513,934
|
|
|
446,382
|
|
|
18,379,502
|
|
|||||
Ending balance
|
$
|
8,076,026
|
|
|
$
|
2,376,130
|
|
|
$
|
7,574,314
|
|
|
$
|
446,382
|
|
|
$
|
18,472,852
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for Loan and Lease Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
$
|
40,158
|
|
|
$
|
18,190
|
|
|
$
|
73,780
|
|
|
$
|
2,147
|
|
|
$
|
134,275
|
|
Charge-offs
|
(4,747
|
)
|
|
—
|
|
|
(13,425
|
)
|
|
(63
|
)
|
|
(18,235
|
)
|
|||||
Recoveries
|
120
|
|
|
17
|
|
|
912
|
|
|
50
|
|
|
1,099
|
|
|||||
Net (charge-offs) recoveries
|
(4,627
|
)
|
|
17
|
|
|
(12,513
|
)
|
|
(13
|
)
|
|
(17,136
|
)
|
|||||
Provision (negative provision)
|
9,936
|
|
|
8,003
|
|
|
(2,461
|
)
|
|
(478
|
)
|
|
15,000
|
|
|||||
Balance, end of period
|
$
|
45,467
|
|
|
$
|
26,210
|
|
|
$
|
58,806
|
|
|
$
|
1,656
|
|
|
$
|
132,139
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for Loan and Lease Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period (1)
|
$
|
40,051
|
|
|
$
|
13,055
|
|
|
$
|
84,022
|
|
|
$
|
2,328
|
|
|
$
|
139,456
|
|
Charge-offs
|
(7,345
|
)
|
|
—
|
|
|
(22,949
|
)
|
|
(94
|
)
|
|
(30,388
|
)
|
|||||
Recoveries
|
1,777
|
|
|
26
|
|
|
6,399
|
|
|
95
|
|
|
8,297
|
|
|||||
Net (charge-offs) recoveries
|
(5,568
|
)
|
|
26
|
|
|
(16,550
|
)
|
|
1
|
|
|
(22,091
|
)
|
|||||
Provision (negative provision)
|
10,984
|
|
|
13,129
|
|
|
(8,666
|
)
|
|
(673
|
)
|
|
14,774
|
|
|||||
Balance, end of period
|
$
|
45,467
|
|
|
$
|
26,210
|
|
|
$
|
58,806
|
|
|
$
|
1,656
|
|
|
$
|
132,139
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Allowance by
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
472
|
|
|
$
|
—
|
|
|
$
|
8,480
|
|
|
$
|
—
|
|
|
$
|
8,952
|
|
Collectively evaluated for impairment
|
$
|
44,995
|
|
|
$
|
26,210
|
|
|
$
|
50,326
|
|
|
$
|
1,656
|
|
|
$
|
123,187
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Loans and Leases by
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
83,931
|
|
|
$
|
15,998
|
|
|
$
|
67,228
|
|
|
$
|
—
|
|
|
$
|
167,157
|
|
Collectively evaluated for impairment
|
7,482,443
|
|
|
1,858,028
|
|
|
6,998,884
|
|
|
378,680
|
|
|
16,718,035
|
|
|||||
Ending balance
|
$
|
7,566,374
|
|
|
$
|
1,874,026
|
|
|
$
|
7,066,112
|
|
|
$
|
378,680
|
|
|
$
|
16,885,192
|
|
(1)
|
The allowance for loan losses related to PCI loans of $6.4 million as of December 31, 2017 is reflected in the beginning balance of the allowance for loan and lease losses for the six months ended June 30, 2018.
|
|
Three Months Ended June 30, 2019
|
||||||||||
|
Allowance for
|
|
Reserve for
|
|
Total
|
||||||
|
Loan and
|
|
Unfunded Loan
|
|
Allowance for
|
||||||
|
Lease Losses
|
|
Commitments
|
|
Credit Losses
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of period
|
$
|
136,281
|
|
|
$
|
36,861
|
|
|
$
|
173,142
|
|
Charge-offs
|
(17,637
|
)
|
|
—
|
|
|
(17,637
|
)
|
|||
Recoveries
|
6,393
|
|
|
—
|
|
|
6,393
|
|
|||
Net charge-offs
|
(11,244
|
)
|
|
—
|
|
|
(11,244
|
)
|
|||
Provision (negative provision)
|
10,000
|
|
|
(2,000
|
)
|
|
8,000
|
|
|||
Balance, end of period
|
$
|
135,037
|
|
|
$
|
34,861
|
|
|
$
|
169,898
|
|
|
Six Months Ended June 30, 2019
|
||||||||||
|
Allowance for
|
|
Reserve for
|
|
Total
|
||||||
|
Loan and
|
|
Unfunded Loan
|
|
Allowance for
|
||||||
|
Lease Losses
|
|
Commitments
|
|
Credit Losses
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of period
|
$
|
132,472
|
|
|
$
|
36,861
|
|
|
$
|
169,333
|
|
Charge-offs
|
(21,102
|
)
|
|
—
|
|
|
(21,102
|
)
|
|||
Recoveries
|
9,667
|
|
|
—
|
|
|
9,667
|
|
|||
Net charge-offs
|
(11,435
|
)
|
|
—
|
|
|
(11,435
|
)
|
|||
Provision (negative provision)
|
14,000
|
|
|
(2,000
|
)
|
|
12,000
|
|
|||
Balance, end of period
|
$
|
135,037
|
|
|
$
|
34,861
|
|
|
$
|
169,898
|
|
|
Three Months Ended June 30, 2018
|
||||||||||
|
Allowance for
|
|
Reserve for
|
|
Total
|
||||||
|
Loan and
|
|
Unfunded Loan
|
|
Allowance for
|
||||||
|
Lease Losses
|
|
Commitments
|
|
Credit Losses
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of period
|
$
|
134,275
|
|
|
$
|
32,861
|
|
|
$
|
167,136
|
|
Charge-offs
|
(18,235
|
)
|
|
—
|
|
|
(18,235
|
)
|
|||
Recoveries
|
1,099
|
|
|
—
|
|
|
1,099
|
|
|||
Net charge-offs
|
(17,136
|
)
|
|
—
|
|
|
(17,136
|
)
|
|||
Provision
|
15,000
|
|
|
2,500
|
|
|
17,500
|
|
|||
Balance, end of period
|
$
|
132,139
|
|
|
$
|
35,361
|
|
|
$
|
167,500
|
|
|
Six Months Ended June 30, 2018
|
||||||||||
|
Allowance for
|
|
Reserve for
|
|
Total
|
||||||
|
Loan and
|
|
Unfunded Loan
|
|
Allowance for
|
||||||
|
Lease Losses
|
|
Commitments
|
|
Credit Losses
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of period (1)
|
$
|
139,456
|
|
|
$
|
28,635
|
|
|
$
|
168,091
|
|
Charge-offs
|
(30,388
|
)
|
|
—
|
|
|
(30,388
|
)
|
|||
Recoveries
|
8,297
|
|
|
—
|
|
|
8,297
|
|
|||
Net charge-offs
|
(22,091
|
)
|
|
—
|
|
|
(22,091
|
)
|
|||
Provision
|
14,774
|
|
|
6,726
|
|
|
21,500
|
|
|||
Balance, end of period
|
$
|
132,139
|
|
|
$
|
35,361
|
|
|
$
|
167,500
|
|
(1)
|
The allowance for loan losses related to PCI loans of $6.4 million as of December 31, 2017 is reflected in the beginning balance of the allowance for loan and lease losses for the six months ended June 30, 2018.
|
|
June 30,
|
|
December 31,
|
||||
Property Type
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Commercial real estate
|
$
|
253
|
|
|
$
|
2,004
|
|
Single-family residence
|
953
|
|
|
953
|
|
||
Construction and land development
|
219
|
|
|
219
|
|
||
Multi‑family
|
—
|
|
|
1,059
|
|
||
Total other real estate owned, net
|
1,425
|
|
|
4,235
|
|
||
Other foreclosed assets
|
47
|
|
|
1,064
|
|
||
Total foreclosed assets, net
|
$
|
1,472
|
|
|
$
|
5,299
|
|
|
Foreclosed
|
||
|
Assets
|
||
|
(In thousands)
|
||
Balance, December 31, 2018
|
$
|
5,299
|
|
Transfers to foreclosed assets from loans
|
37
|
|
|
Provision for losses
|
—
|
|
|
Reductions related to sales
|
(3,864
|
)
|
|
Balance, June 30, 2019
|
$
|
1,472
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Gross Amount of CDI and CRI:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
$
|
119,497
|
|
|
$
|
119,497
|
|
|
$
|
119,497
|
|
|
$
|
119,497
|
|
|
$
|
119,497
|
|
Balance, end of period
|
119,497
|
|
|
119,497
|
|
|
119,497
|
|
|
119,497
|
|
|
119,497
|
|
|||||
Accumulated Amortization:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
(67,247
|
)
|
|
(62,377
|
)
|
|
(46,217
|
)
|
|
(62,377
|
)
|
|
(39,871
|
)
|
|||||
Amortization
|
(4,870
|
)
|
|
(4,870
|
)
|
|
(5,587
|
)
|
|
(9,740
|
)
|
|
(11,933
|
)
|
|||||
Balance, end of period
|
(72,117
|
)
|
|
(67,247
|
)
|
|
(51,804
|
)
|
|
(72,117
|
)
|
|
(51,804
|
)
|
|||||
Net CDI and CRI, end of period
|
$
|
47,380
|
|
|
$
|
52,250
|
|
|
$
|
67,693
|
|
|
$
|
47,380
|
|
|
$
|
67,693
|
|
|
June 30,
|
|
December 31,
|
||||
Other Assets
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Cash surrender value of BOLI
|
$
|
196,745
|
|
|
$
|
194,897
|
|
Operating lease ROU assets, net
|
119,086
|
|
|
—
|
|
||
Interest receivable
|
83,308
|
|
|
88,754
|
|
||
LIHTC investments
|
63,151
|
|
|
59,507
|
|
||
CRA investments (1)
|
58,892
|
|
|
59,062
|
|
||
Taxes receivable
|
28,326
|
|
|
39,096
|
|
||
Prepaid expenses
|
19,576
|
|
|
18,006
|
|
||
Equity investments without readily determinable fair values
|
14,827
|
|
|
14,758
|
|
||
Equity warrants
|
3,931
|
|
|
4,793
|
|
||
Equity investments with readily determinable fair values
|
3,284
|
|
|
4,891
|
|
||
Other receivables/assets
|
20,993
|
|
|
39,132
|
|
||
Total other assets
|
$
|
612,119
|
|
|
$
|
522,896
|
|
(1)
|
Includes equity investments without readily determinable fair values of $14.0 million and $12.5 million at June 30, 2019 and December 31, 2018.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30, 2019
|
|
June 30, 2019
|
||||
|
(In thousands)
|
||||||
Operating lease expense:
|
|
|
|
||||
Fixed costs
|
$
|
8,534
|
|
|
$
|
16,836
|
|
Variable costs
|
46
|
|
|
70
|
|
||
Short-term lease costs
|
203
|
|
|
723
|
|
||
Sublease income
|
(1,054
|
)
|
|
(2,180
|
)
|
||
Net lease expense
|
$
|
7,729
|
|
|
$
|
15,449
|
|
|
Six Months Ended
|
||
|
June 30, 2019
|
||
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
16,408
|
|
ROU assets obtained in exchange for lease obligations:
|
|
||
Operating leases
|
$
|
149,621
|
|
|
June 30, 2019
|
||
|
(Dollars in thousands)
|
||
Operating leases:
|
|
||
Operating lease right-of-use assets, net
|
$
|
119,086
|
|
Operating lease liabilities
|
$
|
133,887
|
|
|
|
||
Weighted average remaining lease term (in years)
|
5.6
|
|
|
Weighted average discount rate
|
2.93
|
%
|
|
June 30, 2019
|
||
|
(In thousands)
|
||
Period ending December 31,
|
|
||
2019
|
$
|
16,440
|
|
2020
|
30,764
|
|
|
2021
|
27,348
|
|
|
2022
|
21,645
|
|
|
2023
|
18,735
|
|
|
Thereafter
|
31,185
|
|
|
Total operating lease liabilities
|
146,117
|
|
|
Less: Imputed interest
|
(12,230
|
)
|
|
Present value of operating lease liabilities
|
$
|
133,887
|
|
|
June 30, 2019
|
||
|
(In thousands)
|
||
Period Ending December 31,
|
|
||
2019
|
$
|
18,620
|
|
2020
|
35,919
|
|
|
2021
|
28,199
|
|
|
2022
|
21,337
|
|
|
2023
|
18,604
|
|
|
Thereafter
|
50,214
|
|
|
Total undiscounted cash flows
|
$
|
172,893
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
||||||
|
|
|
Average
|
|
|
|
Average
|
||||||
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Non‑recourse debt
|
$
|
59
|
|
|
7.50
|
%
|
|
$
|
114
|
|
|
7.50
|
%
|
FHLB secured advances
|
1,522,000
|
|
|
2.52
|
%
|
|
1,040,000
|
|
|
2.56
|
%
|
||
FHLB unsecured overnight advance
|
141,000
|
|
|
2.41
|
%
|
|
141,000
|
|
|
2.53
|
%
|
||
AFX borrowings
|
250,000
|
|
|
2.43
|
%
|
|
190,000
|
|
|
2.56
|
%
|
||
Total borrowings
|
$
|
1,913,059
|
|
|
2.50
|
%
|
|
$
|
1,371,114
|
|
|
2.56
|
%
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Date
|
|
Maturity
|
|
Rate Index
|
||||||||||
Series
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Issued
|
|
Date
|
|
(Quarterly Reset)
|
||||||
|
(Dollars in thousands)
|
|
|
|
|
|
|
||||||||||||
Trust V
|
$
|
10,310
|
|
|
5.51
|
%
|
|
$
|
10,310
|
|
|
5.89
|
%
|
|
8/15/2003
|
|
9/17/2033
|
|
3-month LIBOR + 3.10
|
Trust VI
|
10,310
|
|
|
5.46
|
%
|
|
10,310
|
|
|
5.84
|
%
|
|
9/3/2003
|
|
9/15/2033
|
|
3-month LIBOR + 3.05
|
||
Trust CII
|
5,155
|
|
|
5.36
|
%
|
|
5,155
|
|
|
5.74
|
%
|
|
9/17/2003
|
|
9/17/2033
|
|
3-month LIBOR + 2.95
|
||
Trust VII
|
61,856
|
|
|
5.33
|
%
|
|
61,856
|
|
|
5.27
|
%
|
|
2/5/2004
|
|
4/23/2034
|
|
3-month LIBOR + 2.75
|
||
Trust CIII
|
20,619
|
|
|
4.10
|
%
|
|
20,619
|
|
|
4.48
|
%
|
|
8/15/2005
|
|
9/15/2035
|
|
3-month LIBOR + 1.69
|
||
Trust FCCI
|
16,495
|
|
|
4.01
|
%
|
|
16,495
|
|
|
4.39
|
%
|
|
1/25/2007
|
|
3/15/2037
|
|
3-month LIBOR + 1.60
|
||
Trust FCBI
|
10,310
|
|
|
3.96
|
%
|
|
10,310
|
|
|
4.34
|
%
|
|
9/30/2005
|
|
12/15/2035
|
|
3-month LIBOR + 1.55
|
||
Trust CS 2005-1
|
82,475
|
|
|
4.36
|
%
|
|
82,475
|
|
|
4.74
|
%
|
|
11/21/2005
|
|
12/15/2035
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2005-2
|
128,866
|
|
|
4.53
|
%
|
|
128,866
|
|
|
4.47
|
%
|
|
12/14/2005
|
|
1/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-1
|
51,545
|
|
|
4.53
|
%
|
|
51,545
|
|
|
4.47
|
%
|
|
2/22/2006
|
|
4/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-2
|
51,550
|
|
|
4.53
|
%
|
|
51,550
|
|
|
4.47
|
%
|
|
9/27/2006
|
|
10/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-3 (1)
|
29,314
|
|
|
1.74
|
%
|
|
29,556
|
|
|
1.73
|
%
|
|
9/29/2006
|
|
10/30/2036
|
|
3-month EURIBOR + 2.05
|
||
Trust CS 2006-4
|
16,470
|
|
|
4.53
|
%
|
|
16,470
|
|
|
4.47
|
%
|
|
12/5/2006
|
|
1/30/2037
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-5
|
6,650
|
|
|
4.53
|
%
|
|
6,650
|
|
|
4.47
|
%
|
|
12/19/2006
|
|
1/30/2037
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2007-2
|
39,177
|
|
|
4.53
|
%
|
|
39,177
|
|
|
4.47
|
%
|
|
6/13/2007
|
|
7/30/2037
|
|
3-month LIBOR + 1.95
|
||
Gross subordinated debentures
|
541,102
|
|
|
4.45
|
%
|
|
541,344
|
|
|
4.51
|
%
|
|
|
|
|
|
|
||
Unamortized discount (2)
|
(84,990
|
)
|
|
|
|
(87,498
|
)
|
|
|
|
|
|
|
|
|
||||
Net subordinated debentures
|
$
|
456,112
|
|
|
|
|
$
|
453,846
|
|
|
|
|
|
|
|
|
|
(1)
|
Denomination is in Euros with a value of €25.8 million.
|
(2)
|
Amount represents the fair value adjustment on trust preferred securities assumed in acquisitions.
|
|
June 30,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Loan commitments to extend credit
|
$
|
7,610,899
|
|
|
$
|
7,528,248
|
|
Standby letters of credit
|
387,012
|
|
|
364,210
|
|
||
Commitments to contribute capital to low income housing project partnerships
|
|
|
|
||||
and small business investment companies
|
109,103
|
|
|
101,991
|
|
||
Commitments to contribute capital to private equity funds
|
50
|
|
|
50
|
|
||
Total
|
$
|
8,107,064
|
|
|
$
|
7,994,499
|
|
•
|
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, corporate debt securities, SBA securities, 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
|
||||||||||||||
|
June 30, 2019
|
||||||||||||||
Measured on a Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities available‑for‑sale:
|
|
|
|
|
|
|
|
||||||||
Agency residential CMOs
|
$
|
1,150,474
|
|
|
$
|
—
|
|
|
$
|
1,150,474
|
|
|
$
|
—
|
|
Agency commercial MBS
|
1,058,846
|
|
|
—
|
|
|
1,058,846
|
|
|
—
|
|
||||
Municipal securities
|
736,570
|
|
|
—
|
|
|
736,570
|
|
|
—
|
|
||||
Agency residential MBS
|
351,360
|
|
|
—
|
|
|
351,360
|
|
|
—
|
|
||||
Asset-backed securities
|
227,121
|
|
|
—
|
|
|
193,624
|
|
|
33,497
|
|
||||
Private label residential CMOs
|
112,037
|
|
|
—
|
|
|
105,138
|
|
|
6,899
|
|
||||
Collateralized loan obligations
|
93,802
|
|
|
—
|
|
|
93,802
|
|
|
—
|
|
||||
SBA securities
|
51,812
|
|
|
—
|
|
|
51,812
|
|
|
—
|
|
||||
Corporate debt securities
|
20,034
|
|
|
—
|
|
|
20,034
|
|
|
—
|
|
||||
U.S. Treasury securities
|
5,188
|
|
|
5,188
|
|
|
—
|
|
|
—
|
|
||||
Total securities available-for-sale
|
3,807,244
|
|
|
5,188
|
|
|
3,761,660
|
|
|
40,396
|
|
||||
Equity warrants
|
3,931
|
|
|
—
|
|
|
—
|
|
|
3,931
|
|
||||
Other derivative assets
|
1,459
|
|
|
—
|
|
|
1,459
|
|
|
—
|
|
||||
Equity investments with readily determinable fair values
|
3,284
|
|
|
3,284
|
|
|
—
|
|
|
—
|
|
||||
Total recurring assets
|
$
|
3,815,918
|
|
|
$
|
8,472
|
|
|
$
|
3,763,119
|
|
|
$
|
44,327
|
|
Derivative liabilities
|
$
|
317
|
|
|
$
|
—
|
|
|
$
|
317
|
|
|
$
|
—
|
|
|
Fair Value Measurements as of
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
Measured on a Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities available‑for‑sale:
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
$
|
1,312,194
|
|
|
$
|
—
|
|
|
$
|
1,312,194
|
|
|
$
|
—
|
|
Agency commercial MBS
|
1,112,704
|
|
|
—
|
|
|
1,112,704
|
|
|
—
|
|
||||
Agency residential CMOs
|
632,850
|
|
|
—
|
|
|
632,850
|
|
|
—
|
|
||||
U.S. Treasury securities
|
403,405
|
|
|
403,405
|
|
|
—
|
|
|
—
|
|
||||
Agency residential MBS
|
281,088
|
|
|
—
|
|
|
281,088
|
|
|
—
|
|
||||
Private label residential CMOs
|
101,205
|
|
|
—
|
|
|
93,917
|
|
|
7,288
|
|
||||
Asset-backed securities
|
81,385
|
|
|
—
|
|
|
41,440
|
|
|
39,945
|
|
||||
SBA securities
|
67,047
|
|
|
—
|
|
|
67,047
|
|
|
—
|
|
||||
Corporate debt securities
|
17,553
|
|
|
—
|
|
|
17,553
|
|
|
—
|
|
||||
Total securities available-for-sale
|
4,009,431
|
|
|
403,405
|
|
|
3,558,793
|
|
|
47,233
|
|
||||
Equity warrants
|
4,793
|
|
|
—
|
|
|
—
|
|
|
4,793
|
|
||||
Other derivative assets
|
3,292
|
|
|
—
|
|
|
3,292
|
|
|
—
|
|
||||
Equity investments with readily determinable fair values
|
4,891
|
|
|
4,891
|
|
|
—
|
|
|
—
|
|
||||
Total recurring assets
|
$
|
4,022,407
|
|
|
$
|
408,296
|
|
|
$
|
3,562,085
|
|
|
$
|
52,026
|
|
Derivative liabilities
|
$
|
142
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
—
|
|
|
June 30, 2019
|
||||||
|
Private Label CMOs
|
|
Asset-Backed Securities
|
||||
|
|
|
Weighted
|
|
Input or
|
|
Weighted
|
|
Range
|
|
Average
|
|
Range
|
|
Average
|
Unobservable Inputs
|
of Inputs
|
|
Input
|
|
of Inputs
|
|
Input
|
Voluntary annual prepayment speeds
|
3.6% - 100.0%
|
|
11.2%
|
|
12.0% - 15.0%
|
|
13.7%
|
Annual default rates (1)
|
0.4% - 82.0%
|
|
1.9%
|
|
2.0%
|
|
2.0%
|
Loss severity rates (1)
|
1.5% - 145.8%
|
|
57.8%
|
|
60.0%
|
|
60.0%
|
Discount rates
|
2.5% - 9.3%
|
|
6.4%
|
|
3.2% - 5.2%
|
|
4.3%
|
(1)
|
The annual default rates and loss severity rates were the same for all of the asset-backed securities.
|
|
June 30, 2019
|
|
Equity Warrants
|
|
Weighted
|
|
Average
|
Unobservable Inputs
|
Input
|
Volatility
|
16.7%
|
Risk-free interest rate
|
1.7%
|
Remaining life assumption (in years)
|
3.36
|
|
Private
|
|
Asset-Backed
|
|
Equity
|
||||||
|
Label CMOs
|
|
Securities
|
|
Warrants
|
||||||
|
(In thousands)
|
||||||||||
Balance, December 31, 2018
|
$
|
7,288
|
|
|
$
|
39,945
|
|
|
$
|
4,793
|
|
Total included in earnings
|
224
|
|
|
(56
|
)
|
|
3,493
|
|
|||
Total included in other comprehensive income
|
(64
|
)
|
|
559
|
|
|
—
|
|
|||
Issuances
|
—
|
|
|
—
|
|
|
161
|
|
|||
Sales and dispositions (1)
|
—
|
|
|
—
|
|
|
(4,453
|
)
|
|||
Net settlements
|
(549
|
)
|
|
(6,951
|
)
|
|
—
|
|
|||
Transfers to Level 1
|
—
|
|
|
—
|
|
|
(63
|
)
|
|||
Balance, June 30, 2019
|
$
|
6,899
|
|
|
$
|
33,497
|
|
|
$
|
3,931
|
|
(1)
|
Includes the exercise of warrants that upon exercise become equity securities in public companies. These are often subject to lock-up restrictions that must be met before the equity security can be sold, during which time they are reported as equity investments with readily determinable fair values.
|
|
Fair Value Measurement as of
|
||||||||||||||
|
June 30, 2019
|
||||||||||||||
Measured on a Non‑Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Impaired loans
|
$
|
23,517
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,517
|
|
Total non-recurring
|
$
|
23,517
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,517
|
|
|
Fair Value Measurement as of
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
Measured on a Non‑Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Impaired loans
|
$
|
24,432
|
|
|
$
|
—
|
|
|
$
|
1,800
|
|
|
$
|
22,632
|
|
OREO
|
1,136
|
|
|
—
|
|
|
1,136
|
|
|
—
|
|
||||
Total non-recurring
|
$
|
25,568
|
|
|
$
|
—
|
|
|
$
|
2,936
|
|
|
$
|
22,632
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Losses on Assets
|
June 30,
|
|
June 30,
|
||||||||||||
Measured on a Non‑Recurring Basis
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In thousands)
|
||||||||||||||
Impaired loans
|
$
|
1,842
|
|
|
$
|
12,076
|
|
|
$
|
3,038
|
|
|
$
|
15,994
|
|
OREO
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
||||
Total losses
|
$
|
1,842
|
|
|
$
|
12,076
|
|
|
$
|
3,038
|
|
|
$
|
16,059
|
|
|
|
June 30, 2019
|
||||||||||
|
|
|
|
Valuation
|
|
Unobservable
|
|
|
|
Weighted
|
||
Asset
|
|
Fair Value
|
|
Technique
|
|
Inputs
|
|
Range
|
|
Average
|
||
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
17,073
|
|
|
Discounted cash flows
|
|
Discount rates
|
|
3.75% - 8.00%
|
|
6.48%
|
Impaired loans
|
|
6,444
|
|
|
Third party appraisals
|
|
No discounts
|
|
|
|
|
|
Total non-recurring Level 3
|
|
$
|
23,517
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
||||||||||||||||||
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
185,075
|
|
|
$
|
185,075
|
|
|
$
|
185,075
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest‑earning deposits in financial institutions
|
422,663
|
|
|
422,663
|
|
|
422,663
|
|
|
—
|
|
|
—
|
|
|||||
Securities available‑for‑sale
|
3,807,244
|
|
|
3,807,244
|
|
|
5,188
|
|
|
3,761,660
|
|
|
40,396
|
|
|||||
Investment in FHLB stock
|
43,146
|
|
|
43,146
|
|
|
—
|
|
|
43,146
|
|
|
—
|
|
|||||
Loans and leases held for investment, net
|
18,337,815
|
|
|
17,841,445
|
|
|
—
|
|
|
—
|
|
|
17,841,445
|
|
|||||
Equity warrants
|
3,931
|
|
|
3,931
|
|
|
—
|
|
|
—
|
|
|
3,931
|
|
|||||
Other derivative assets
|
1,459
|
|
|
1,459
|
|
|
—
|
|
|
1,459
|
|
|
—
|
|
|||||
Equity investments with readily determinable fair values
|
3,284
|
|
|
3,284
|
|
|
3,284
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Core deposits
|
15,617,488
|
|
|
15,617,488
|
|
|
—
|
|
|
15,617,488
|
|
|
—
|
|
|||||
Non-core non-maturity deposits
|
436,833
|
|
|
436,833
|
|
|
—
|
|
|
436,833
|
|
|
—
|
|
|||||
Time deposits
|
2,751,435
|
|
|
2,749,828
|
|
|
—
|
|
|
2,749,828
|
|
|
—
|
|
|||||
Borrowings
|
1,913,059
|
|
|
1,913,059
|
|
|
1,903,000
|
|
|
10,059
|
|
|
—
|
|
|||||
Subordinated debentures
|
456,112
|
|
|
439,635
|
|
|
—
|
|
|
439,635
|
|
|
—
|
|
|||||
Derivative liabilities
|
317
|
|
|
317
|
|
|
—
|
|
|
317
|
|
|
—
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
175,830
|
|
|
$
|
175,830
|
|
|
$
|
175,830
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest‑earning deposits in financial institutions
|
209,937
|
|
|
209,937
|
|
|
209,937
|
|
|
—
|
|
|
—
|
|
|||||
Securities available‑for‑sale
|
4,009,431
|
|
|
4,009,431
|
|
|
403,405
|
|
|
3,558,793
|
|
|
47,233
|
|
|||||
Investment in FHLB stock
|
32,103
|
|
|
32,103
|
|
|
—
|
|
|
32,103
|
|
|
—
|
|
|||||
Loans and leases held for investment, net
|
17,825,241
|
|
|
17,013,860
|
|
|
—
|
|
|
1,800
|
|
|
17,012,060
|
|
|||||
Equity warrants
|
4,793
|
|
|
4,793
|
|
|
—
|
|
|
—
|
|
|
4,793
|
|
|||||
Other derivative assets
|
3,292
|
|
|
3,292
|
|
|
—
|
|
|
3,292
|
|
|
—
|
|
|||||
Equity investments with readily determinable fair values
|
4,891
|
|
|
4,891
|
|
|
4,891
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Core deposits
|
16,346,671
|
|
|
16,346,671
|
|
|
—
|
|
|
16,346,671
|
|
|
—
|
|
|||||
Non-core non-maturity deposits
|
518,192
|
|
|
518,192
|
|
|
—
|
|
|
518,192
|
|
|
—
|
|
|||||
Time deposits
|
2,005,638
|
|
|
2,017,137
|
|
|
—
|
|
|
2,017,137
|
|
|
—
|
|
|||||
Borrowings
|
1,371,114
|
|
|
1,371,114
|
|
|
1,371,000
|
|
|
114
|
|
|
—
|
|
|||||
Subordinated debentures
|
453,846
|
|
|
435,251
|
|
|
—
|
|
|
435,251
|
|
|
—
|
|
|||||
Derivative liabilities
|
142
|
|
|
142
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
Basic Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings
|
$
|
128,125
|
|
|
$
|
112,604
|
|
|
$
|
115,735
|
|
|
$
|
240,729
|
|
|
$
|
234,011
|
|
Less: Earnings allocated to unvested restricted stock(1)
|
(1,190
|
)
|
|
(1,163
|
)
|
|
(1,348
|
)
|
|
(2,343
|
)
|
|
(2,469
|
)
|
|||||
Net earnings allocated to common shares
|
$
|
126,935
|
|
|
$
|
111,441
|
|
|
$
|
114,387
|
|
|
$
|
238,386
|
|
|
$
|
231,542
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average basic shares and unvested restricted
|
|
|
|
|
|
|
|
|
|
||||||||||
stock outstanding
|
120,042
|
|
|
122,227
|
|
|
126,082
|
|
|
121,128
|
|
|
126,780
|
|
|||||
Less: Weighted-average unvested restricted stock
|
|
|
|
|
|
|
|
|
|
||||||||||
outstanding
|
(1,462
|
)
|
|
(1,352
|
)
|
|
(1,466
|
)
|
|
(1,407
|
)
|
|
(1,439
|
)
|
|||||
Weighted-average basic shares outstanding
|
118,580
|
|
|
120,875
|
|
|
124,616
|
|
|
119,721
|
|
|
125,341
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per share
|
$
|
1.07
|
|
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
$
|
1.99
|
|
|
$
|
1.85
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings allocated to common shares
|
$
|
126,935
|
|
|
$
|
111,441
|
|
|
$
|
114,387
|
|
|
$
|
238,386
|
|
|
$
|
231,542
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average basic shares outstanding
|
118,580
|
|
|
120,875
|
|
|
124,616
|
|
|
119,721
|
|
|
125,341
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share
|
$
|
1.07
|
|
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
$
|
1.99
|
|
|
$
|
1.85
|
|
(1)
|
Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.
|
|
Three Months Ended June 30, 2019
|
|
Three Months Ended June 30, 2018
|
||||||||||||
|
Total
|
|
Revenue from
|
|
Total
|
|
Revenue from
|
||||||||
|
Recorded
|
|
Contracts with
|
|
Recorded
|
|
Contracts with
|
||||||||
|
Revenue
|
|
Customers
|
|
Revenue
|
|
Customers
|
||||||||
|
(In thousands)
|
||||||||||||||
Total interest income
|
$
|
314,533
|
|
|
$
|
—
|
|
|
$
|
288,514
|
|
|
$
|
—
|
|
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
3,771
|
|
|
3,771
|
|
|
4,265
|
|
|
4,265
|
|
||||
Other commissions and fees
|
11,590
|
|
|
5,158
|
|
|
11,767
|
|
|
5,101
|
|
||||
Leased equipment income
|
9,182
|
|
|
—
|
|
|
9,790
|
|
|
—
|
|
||||
Gain on sale of loans
|
326
|
|
|
—
|
|
|
106
|
|
|
—
|
|
||||
Gain on sale of securities
|
22,192
|
|
|
—
|
|
|
253
|
|
|
—
|
|
||||
Other income
|
3,832
|
|
|
454
|
|
|
13,457
|
|
|
436
|
|
||||
Total noninterest income
|
50,893
|
|
|
9,383
|
|
|
39,638
|
|
|
9,802
|
|
||||
Total revenue
|
$
|
365,426
|
|
|
$
|
9,383
|
|
|
$
|
328,152
|
|
|
$
|
9,802
|
|
|
Three Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Products and services transferred at a point in time
|
$
|
4,987
|
|
|
$
|
4,930
|
|
Products and services transferred over time
|
4,396
|
|
|
4,872
|
|
||
Total revenue from contracts with customers
|
$
|
9,383
|
|
|
$
|
9,802
|
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
||||||||||||
|
Total
|
|
Revenue from
|
|
Total
|
|
Revenue from
|
||||||||
|
Recorded
|
|
Contracts with
|
|
Recorded
|
|
Contracts with
|
||||||||
|
Revenue
|
|
Customers
|
|
Revenue
|
|
Customers
|
||||||||
|
(In thousands)
|
||||||||||||||
Total interest income
|
$
|
619,092
|
|
|
$
|
—
|
|
|
$
|
566,289
|
|
|
$
|
—
|
|
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
7,501
|
|
|
7,501
|
|
|
8,439
|
|
|
8,439
|
|
||||
Other commissions and fees
|
22,598
|
|
|
9,696
|
|
|
22,032
|
|
|
9,752
|
|
||||
Leased equipment income
|
18,464
|
|
|
—
|
|
|
19,377
|
|
|
—
|
|
||||
Gain on sale of loans
|
326
|
|
|
—
|
|
|
4,675
|
|
|
—
|
|
||||
Gain on sale of securities
|
24,353
|
|
|
—
|
|
|
6,564
|
|
|
—
|
|
||||
Other income
|
8,715
|
|
|
825
|
|
|
17,110
|
|
|
897
|
|
||||
Total noninterest income
|
81,957
|
|
|
18,022
|
|
|
78,197
|
|
|
19,088
|
|
||||
Total revenue
|
$
|
701,049
|
|
|
$
|
18,022
|
|
|
$
|
644,486
|
|
|
$
|
19,088
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Products and services transferred at a point in time
|
$
|
9,533
|
|
|
$
|
9,591
|
|
Products and services transferred over time
|
8,489
|
|
|
9,497
|
|
||
Total revenue from contracts with customers
|
$
|
18,022
|
|
|
$
|
19,088
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(In thousands)
|
||||||
Receivables, which are included in "Other assets"
|
$
|
1,494
|
|
|
$
|
1,334
|
|
Contract assets, which are included in "Other assets"
|
$
|
—
|
|
|
$
|
—
|
|
Contract liabilities, which are included in "Accrued interest payable and other liabilities"
|
$
|
556
|
|
|
$
|
621
|
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2016-13, "Measurement of Credit Losses on Financial Instruments,"
ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,”
and ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief"
|
|
1. This Update changes the accounting and recognition of credit losses and impairment of financial assets recorded at amortized cost. Under the CECL model, the standard requires immediate recognition of estimated credit losses expected to occur over the remaining life of the asset. The forward-looking concept of CECL requires loss estimates for the remaining estimated life of the financial assets using historical experience, current conditions and reasonable and supportable forecasts. 2. The Update amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Receivables arising from operating leases are not within the scope of CECL. 3. The Update must be applied using the modified retrospective method with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. A prospective transition approach is required for available-for-sale debt securities for which an other-than-temporary impairment had been recognized before the adoption date. Early adoption is permitted.
|
|
January 1, 2020
|
|
1. The Company has established a multidisciplinary project team and implementation plan, selected a software solution, reached accounting decisions on various matters, developed a conceptual framework, and developed econometric regression models for the reasonable and supportable ("R&S") forecast period. 2. The Company continues to test and refine the CECL models and has completed three preliminary calculations with two more scheduled before adoption. The Company continues to perform testing and sensitivity analysis on its modeling assumptions and results. 3. Our planned approach for estimating expected life-time credit losses include the following key components for all loan portfolio segments: a. The use of a probability of default/loss given default methodology; b. A single scenario based on the consensus forecast from Moody's to develop an economic forecast for the R&S period; c. An initial R&S forecast period of four quarters for all loan portfolio segments, which reflects management's expectation of losses based on forward-looking economic scenarios over that time; d. A post-R&S reversion period of two quarters using a straight-line approach; e. A historical loss period of at least 40 quarters, which represents a full economic credit cycle; and f. Prepayments rates based on our historical experience. 4. The ultimate impact is influenced by our portfolio characteristics, of which the vast majority is comprised of short-duration commercial loans; the macroeconomic conditions and forecasts at adoption; and other management judgments. 5. We plan to adopt this new standard on January 1, 2020. The new standard will be significant to the policies, processes, and methodology used to determine credit losses; however, we are not yet in a position to disclose the quantitative effect on the Company's consolidated financial position and results of operations as the calculations and models continue to be evaluated and assumptions are subject to change.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment"
|
|
1. This Update simplifies goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. 2. The goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and an impairment charge would be recognized for any amount by which the carrying amount exceeds the reporting unit's fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. 3. The Update must be applied prospectively and early adoption is permitted.
|
|
January 1, 2020
|
|
The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial position or results of operations and we plan to adopt this standard on January 1, 2020.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to Disclosure Requirements for Fair Value Measurements”
|
|
1. This Update modified the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. 2. Certain disclosure requirements in Topic 820 are also removed or modified. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis and early adoption is permitted.
|
|
January 1, 2020
|
|
The adoption of this guidance will modify disclosures but will not have an impact on the Company’s consolidated financial position or results of operations. The Company has early adopted any removed or modified disclosures effective January 1, 2019 but will defer adoption of the additional disclosures until January 1, 2020 as permitted in the transition guidance of the standard.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments"
|
|
1. This Update made clarifications and amendments to five topics: (i) Topic A: Codification Improvements Resulting from the June and November 2018 Credit Losses Transition Resource Group ("TRG") Meetings, (ii) Topic B: Codification Improvements to ASU 2016-13, (iii) Topic C: Codification Improvements to ASU 2017-12, "Derivatives and Hedging (Topic 815)" and Other Hedging Items, (iv) Topic D: Codification Improvements to ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10)," and (v) Topic E: Codification Improvements Resulting from the November 2018 Credit Losses TRG Meeting. 2. In addition to conforming amendments that correct for errors and oversights, the Update in Topics A, B, and E, which impacts CECL implementation, amends or clarifies guidance for accrued interest; transfers between classifications or categories of loans and debt securities; recoveries; effect of prepayments in determining the effective interest rate; estimated costs to sell when foreclosure is probable; vintage disclosure presentation related to line-of-credit arrangements converted to term loans; contractual extensions or renewals; and others. 3. Transition requirements for the amendments are the same as ASU 2016-13 for the Update in Topics A, B, and E. The Update in Topic C may be applied retrospectively as of the date of initial adoption of ASU 2017-12 or prospectively. The Update in Topic D must be applied on a modified retrospective method with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption and early adoption is permitted.
|
|
January 1, 2020; except for Topic C - January 1, 2019
|
|
1. Impacts from the adoption of Topics A, B, and E within this Update will be considered in the Company's overall CECL implementation and we plan to adopt this Update concurrent with the adoption of ASU 2016-13. 2. The adoption of Topic D within this Update is not expected to have a material impact on the Company's consolidated financial position or results of operations and we plan to adopt this standard on January 1, 2020. 3. Topic C within this Update is not applicable to us and therefore there is no impact on the Company's consolidated financial position or results of operations.
|
•
|
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 or at all;
|
•
|
our ability to compete effectively against other financial service providers in our markets;
|
•
|
the impact of changes in interest rates or levels of market activity, especially on the fair value of our loan and investment portfolios;
|
•
|
deterioration, weaker than expected improvement, or other changes in the state of the economy or the markets in which we conduct business (including the levels of IPOs and mergers and acquisitions), which may affect the ability of borrowers to repay their loans and the value of real property or other property held as collateral for such loans;
|
•
|
changes in credit quality and the effect of credit quality on our provision for credit losses and allowance for loan and lease losses;
|
•
|
our ability to attract deposits and other sources of funding or liquidity;
|
•
|
the need to retain capital for strategic or regulatory reasons;
|
•
|
compression of the net interest margin due to changes in the interest rate environment, forward yield curves, loan products offered, spreads on newly originated loans and leases, changes in our asset or liability mix, and/or changes to the cost of deposits and borrowings;
|
•
|
reduced demand for our services due to strategic or regulatory reasons;
|
•
|
our ability to successfully execute on initiatives relating to enhancements of our technology infrastructure, including client-facing systems and applications;
|
•
|
legislative or regulatory requirements or changes, including an increase of capital requirements, and increased political and regulatory uncertainty;
|
•
|
the impact on our reputation and business from our interactions with business partners, counterparties, service providers and other third parties;
|
•
|
higher than anticipated increases in operating expenses;
|
•
|
lower than expected dividends paid from the Bank to the holding company;
|
•
|
the amount and exact timing of any common stock repurchases will depend upon market conditions and other factors;
|
•
|
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 non-cash charge;
|
•
|
the effectiveness of our risk management framework and quantitative models;
|
•
|
the costs and effects of legal, compliance, and regulatory actions, changes and developments, including the impact of adverse judgments or settlements in litigation, the initiation and resolution of regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews;
|
•
|
the impact of changes made to 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
|
•
|
our success at managing risks involved in the foregoing items and all other risk factors described in our audited consolidated financial statements, and other risk factors described in this Form 10-Q and other documents filed or furnished by PacWest with the SEC.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
Efficiency Ratio
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||
Noninterest expense
|
$
|
125,427
|
|
|
$
|
126,287
|
|
|
$
|
126,449
|
|
|
$
|
251,714
|
|
|
$
|
253,844
|
|
|
Less:
|
Intangible asset amortization
|
4,870
|
|
|
4,870
|
|
|
5,587
|
|
|
9,740
|
|
|
11,933
|
|
|||||
|
Foreclosed assets (income) expense, net
|
(146
|
)
|
|
29
|
|
|
(61
|
)
|
|
(117
|
)
|
|
(183
|
)
|
|||||
|
Acquisition, integration and reorganization costs
|
—
|
|
|
618
|
|
|
—
|
|
|
618
|
|
|
—
|
|
|||||
Noninterest expense used for efficiency ratio
|
$
|
120,703
|
|
|
$
|
120,770
|
|
|
$
|
120,923
|
|
|
$
|
241,473
|
|
|
$
|
242,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (tax equivalent)
|
$
|
261,689
|
|
|
$
|
256,052
|
|
|
$
|
264,798
|
|
|
$
|
517,742
|
|
|
$
|
523,270
|
|
|
Noninterest income
|
50,893
|
|
|
31,064
|
|
|
39,638
|
|
|
81,957
|
|
|
78,197
|
|
||||||
Net revenues
|
312,582
|
|
|
287,116
|
|
|
304,436
|
|
|
599,699
|
|
|
601,467
|
|
||||||
Less:
|
Gain on sale of securities
|
22,192
|
|
|
2,161
|
|
|
253
|
|
|
24,353
|
|
|
6,564
|
|
|||||
Net revenues used for efficiency ratio
|
$
|
290,390
|
|
|
$
|
284,955
|
|
|
$
|
304,183
|
|
|
$
|
575,346
|
|
|
$
|
594,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio
|
41.6
|
%
|
|
42.4
|
%
|
|
39.8
|
%
|
|
42.0
|
%
|
|
40.7
|
%
|
•
|
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 reconciliations of these non-GAAP measurements to the GAAP measurements are presented in the following tables for and as of the periods presented.
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
Return on Average Tangible Equity
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
|
|
|
(Dollars in thousands)
|
||||||||||||||||||
Net earnings
|
|
$
|
128,125
|
|
|
$
|
112,604
|
|
|
$
|
115,735
|
|
|
$
|
240,729
|
|
|
$
|
234,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average stockholders' equity
|
|
$
|
4,818,889
|
|
|
$
|
4,815,965
|
|
|
$
|
4,832,480
|
|
|
$
|
4,817,435
|
|
|
$
|
4,866,654
|
|
|
Less:
|
Average intangible assets
|
|
2,598,762
|
|
|
2,603,842
|
|
|
2,619,351
|
|
|
2,601,288
|
|
|
2,622,455
|
|
|||||
Average tangible common equity
|
|
$
|
2,220,127
|
|
|
$
|
2,212,123
|
|
|
$
|
2,213,129
|
|
|
$
|
2,216,147
|
|
|
$
|
2,244,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average equity (1)
|
|
10.66
|
%
|
|
9.48
|
%
|
|
9.61
|
%
|
|
10.08
|
%
|
|
9.70
|
%
|
||||||
Return on average tangible equity (2)
|
|
23.15
|
%
|
|
20.64
|
%
|
|
20.98
|
%
|
|
21.91
|
%
|
|
21.03
|
%
|
(1)
|
Annualized net earnings divided by average stockholders' equity.
|
(2)
|
Annualized net earnings divided by average tangible common equity.
|
Tangible Common Equity Ratio/
|
June 30,
|
|
December 31,
|
||||
Tangible Book Value Per Share
|
2019
|
|
2018
|
||||
|
(Dollars in thousands, except per share data)
|
||||||
Stockholders’ equity
|
$
|
4,852,010
|
|
|
$
|
4,825,588
|
|
Less: Intangible assets
|
2,596,050
|
|
|
2,605,790
|
|
||
Tangible common equity
|
$
|
2,255,960
|
|
|
$
|
2,219,798
|
|
|
|
|
|
||||
Total assets
|
$
|
26,344,414
|
|
|
$
|
25,731,354
|
|
Less: Intangible assets
|
2,596,050
|
|
|
2,605,790
|
|
||
Tangible assets
|
$
|
23,748,364
|
|
|
$
|
23,125,564
|
|
|
|
|
|
||||
Equity to assets ratio
|
18.42
|
%
|
|
18.75
|
%
|
||
Tangible common equity ratio (1)
|
9.50
|
%
|
|
9.60
|
%
|
||
Book value per share
|
$
|
40.49
|
|
|
$
|
39.17
|
|
Tangible book value per share (2)
|
$
|
18.83
|
|
|
$
|
18.02
|
|
Shares outstanding
|
119,829,104
|
|
|
123,189,833
|
|
(1)
|
Tangible common equity divided by tangible assets.
|
(2)
|
Tangible common equity divided by shares outstanding.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
Earnings Summary:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
260,898
|
|
|
$
|
254,876
|
|
|
$
|
262,332
|
|
|
$
|
515,774
|
|
|
$
|
518,832
|
|
Provision for credit losses
|
(8,000
|
)
|
|
(4,000
|
)
|
|
(17,500
|
)
|
|
(12,000
|
)
|
|
(21,500
|
)
|
|||||
Noninterest income
|
50,893
|
|
|
31,064
|
|
|
39,638
|
|
|
81,957
|
|
|
78,197
|
|
|||||
Noninterest expense
|
(125,427
|
)
|
|
(126,287
|
)
|
|
(126,449
|
)
|
|
(251,714
|
)
|
|
(253,844
|
)
|
|||||
Earnings before income taxes
|
178,364
|
|
|
155,653
|
|
|
158,021
|
|
|
334,017
|
|
|
321,685
|
|
|||||
Income tax expense
|
(50,239
|
)
|
|
(43,049
|
)
|
|
(42,286
|
)
|
|
(93,288
|
)
|
|
(87,674
|
)
|
|||||
Net earnings
|
$
|
128,125
|
|
|
$
|
112,604
|
|
|
$
|
115,735
|
|
|
$
|
240,729
|
|
|
$
|
234,011
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance Measures:
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share
|
$
|
1.07
|
|
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
$
|
1.99
|
|
|
$
|
1.85
|
|
Annualized return on:
|
|
|
|
|
|
|
|
|
|
||||||||||
Average assets
|
1.99
|
%
|
|
1.77
|
%
|
|
1.93
|
%
|
|
1.88
|
%
|
|
1.96
|
%
|
|||||
Average tangible equity (1)(2)
|
23.15
|
%
|
|
20.64
|
%
|
|
20.98
|
%
|
|
21.91
|
%
|
|
21.03
|
%
|
|||||
Net interest margin (tax equivalent)
|
4.72
|
%
|
|
4.69
|
%
|
|
5.18
|
%
|
|
4.70
|
%
|
|
5.15
|
%
|
|||||
Yield on average loans and leases (tax equivalent)
|
6.26
|
%
|
|
6.16
|
%
|
|
6.30
|
%
|
|
6.21
|
%
|
|
6.21
|
%
|
|||||
Cost of average total deposits
|
0.81
|
%
|
|
0.73
|
%
|
|
0.37
|
%
|
|
0.77
|
%
|
|
0.34
|
%
|
|||||
Efficiency ratio
|
41.6
|
%
|
|
42.4
|
%
|
|
39.8
|
%
|
|
42.0
|
%
|
|
40.7
|
%
|
(1)
|
Calculation reduces average stockholder's equity by average intangible assets.
|
(2)
|
See "- Non-GAAP Measurements."
|
(1)
|
Includes nonaccrual loans and leases and loan fees. Includes tax-equivalent adjustments related to tax-exempt interest on loans.
|
(2)
|
Tax equivalent.
|
(3)
|
Includes discount accretion on acquired loans of $3.1 million, $3.0 million, and $8.7 million for the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, respectively.
|
(4)
|
Includes tax-equivalent adjustments of $0.5 million, $0.9 million, and $2.2 million for the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, respectively, related to tax-exempt income on investment securities. The federal statutory tax rate utilized was 21%.
|
(5)
|
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 total deposits divided by average total deposits.
|
(1)
|
Includes nonaccrual loans and leases and loan fees. Includes tax-equivalent adjustments related to tax-exempt interest on loans.
|
(2)
|
Tax equivalent.
|
(3)
|
Includes discount accretion on acquired loans of $6.2 million and $16.3 million for the six months ended June 30, 2019 and 2018, respectively.
|
(4)
|
Includes tax-equivalent adjustments of $1.4 million and $4.0 million for the six months ended June 30, 2019 and 2018, respectively, related to tax-exempt income on investment securities. The federal statutory tax rate utilized was 21%.
|
(5)
|
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 total deposits divided by average total deposits.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Provision For Credit Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Addition to allowance for loan and lease losses
|
$
|
10,000
|
|
|
$
|
4,000
|
|
|
$
|
15,000
|
|
|
$
|
14,000
|
|
|
$
|
14,774
|
|
(Reduction in) addition to reserve for unfunded
|
|
|
|
|
|
|
|
|
|
||||||||||
loan commitments
|
(2,000
|
)
|
|
—
|
|
|
2,500
|
|
|
(2,000
|
)
|
|
6,726
|
|
|||||
Total provision for credit losses
|
$
|
8,000
|
|
|
$
|
4,000
|
|
|
$
|
17,500
|
|
|
$
|
12,000
|
|
|
$
|
21,500
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Quality Metrics:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge‑offs on loans and leases held for
|
|
|
|
|
|
|
|
|
|
||||||||||
investment (1)
|
$
|
11,244
|
|
|
$
|
191
|
|
|
$
|
17,136
|
|
|
$
|
11,435
|
|
|
$
|
22,091
|
|
Annualized net charge‑offs to average loans and leases
|
0.25
|
%
|
|
—
|
%
|
|
0.41
|
%
|
|
0.13
|
%
|
|
0.27
|
%
|
|||||
At period end:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses
|
$
|
169,898
|
|
|
$
|
173,142
|
|
|
$
|
167,500
|
|
|
|
|
|
||||
Allowance for credit losses to loans and leases
|
|
|
|
|
|
|
|
|
|
||||||||||
held for investment
|
0.92
|
%
|
|
0.95
|
%
|
|
0.99
|
%
|
|
|
|
|
|||||||
Allowance for credit losses to nonaccrual
|
|
|
|
|
|
|
|
|
|
||||||||||
loans and leases held for investment
|
209.1
|
%
|
|
195.6
|
%
|
|
147.3
|
%
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans and leases held for investment
|
$
|
81,265
|
|
|
$
|
88,527
|
|
|
$
|
113,745
|
|
|
|
|
|
||||
Performing TDRs held for investment
|
16,464
|
|
|
17,027
|
|
|
58,148
|
|
|
|
|
|
|||||||
Total impaired loans and leases
|
$
|
97,729
|
|
|
$
|
105,554
|
|
|
$
|
171,893
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Classified loans and leases held for investment
|
$
|
190,979
|
|
|
$
|
190,305
|
|
|
$
|
236,292
|
|
|
|
|
|
(1)
|
See "- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment" for detail of charge-offs and recoveries by loan portfolio segment, class, and subclass for the periods presented.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
Noninterest Income
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Other commissions and fees
|
$
|
11,590
|
|
|
$
|
11,008
|
|
|
$
|
11,767
|
|
|
$
|
22,598
|
|
|
$
|
22,032
|
|
Leased equipment income
|
9,182
|
|
|
9,282
|
|
|
9,790
|
|
|
18,464
|
|
|
19,377
|
|
|||||
Service charges on deposit accounts
|
3,771
|
|
|
3,730
|
|
|
4,265
|
|
|
7,501
|
|
|
8,439
|
|
|||||
Gain on sale of loans and leases
|
326
|
|
|
—
|
|
|
106
|
|
|
326
|
|
|
4,675
|
|
|||||
Gain on sale of securities
|
22,192
|
|
|
2,161
|
|
|
253
|
|
|
24,353
|
|
|
6,564
|
|
|||||
Other income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends and (losses) gains on equity investments
|
(83
|
)
|
|
296
|
|
|
1,992
|
|
|
213
|
|
|
2,243
|
|
|||||
Warrant income
|
1,214
|
|
|
2,279
|
|
|
1,225
|
|
|
3,493
|
|
|
1,473
|
|
|||||
Other
|
2,701
|
|
|
2,308
|
|
|
10,240
|
|
|
5,009
|
|
|
13,394
|
|
|||||
Total noninterest income
|
$
|
50,893
|
|
|
$
|
31,064
|
|
|
$
|
39,638
|
|
|
$
|
81,957
|
|
|
$
|
78,197
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
Noninterest Expense
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Compensation
|
$
|
68,956
|
|
|
$
|
70,845
|
|
|
$
|
69,913
|
|
|
$
|
139,801
|
|
|
$
|
140,936
|
|
Occupancy
|
14,457
|
|
|
14,320
|
|
|
13,575
|
|
|
28,777
|
|
|
26,798
|
|
|||||
Data processing
|
6,817
|
|
|
6,925
|
|
|
6,896
|
|
|
13,742
|
|
|
13,555
|
|
|||||
Leased equipment depreciation
|
5,558
|
|
|
5,651
|
|
|
5,237
|
|
|
11,209
|
|
|
10,612
|
|
|||||
Intangible asset amortization
|
4,870
|
|
|
4,870
|
|
|
5,587
|
|
|
9,740
|
|
|
11,933
|
|
|||||
Other professional services
|
4,629
|
|
|
4,513
|
|
|
5,257
|
|
|
9,142
|
|
|
9,696
|
|
|||||
Insurance and assessments
|
4,098
|
|
|
4,038
|
|
|
5,330
|
|
|
8,136
|
|
|
11,057
|
|
|||||
Loan expense
|
3,451
|
|
|
2,885
|
|
|
3,058
|
|
|
6,336
|
|
|
5,329
|
|
|||||
Acquisition, integration and reorganization costs
|
—
|
|
|
618
|
|
|
—
|
|
|
618
|
|
|
—
|
|
|||||
Foreclosed assets (income) expense, net
|
(146
|
)
|
|
29
|
|
|
(61
|
)
|
|
(117
|
)
|
|
(183
|
)
|
|||||
Other
|
12,737
|
|
|
11,593
|
|
|
11,657
|
|
|
24,330
|
|
|
24,111
|
|
|||||
Total noninterest expense
|
$
|
125,427
|
|
|
$
|
126,287
|
|
|
$
|
126,449
|
|
|
$
|
251,714
|
|
|
$
|
253,844
|
|
|
June 30, 2019
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||
|
Fair
|
|
% of
|
|
Duration
|
|
Fair
|
|
% of
|
|
Duration
|
|
Fair
|
|
% of
|
|
Duration
|
||||||||||||
Security Type
|
Value
|
|
Total
|
|
(in years)
|
|
Value
|
|
Total
|
|
(in years)
|
|
Value
|
|
Total
|
|
(in years)
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Agency residential CMOs
|
$
|
1,150,474
|
|
|
30
|
%
|
|
3.5
|
|
|
$
|
717,776
|
|
|
18
|
%
|
|
4.1
|
|
|
$
|
632,850
|
|
|
16
|
%
|
|
4.3
|
|
Agency commercial MBS
|
1,058,846
|
|
|
28
|
%
|
|
5.0
|
|
|
1,078,911
|
|
|
27
|
%
|
|
5.1
|
|
|
1,112,704
|
|
|
28
|
%
|
|
4.9
|
|
|||
Municipal securities
|
736,570
|
|
|
19
|
%
|
|
7.3
|
|
|
1,185,001
|
|
|
30
|
%
|
|
7.1
|
|
|
1,312,194
|
|
|
33
|
%
|
|
7.3
|
|
|||
Agency residential MBS
|
351,360
|
|
|
9
|
%
|
|
3.4
|
|
|
343,176
|
|
|
9
|
%
|
|
3.4
|
|
|
281,088
|
|
|
7
|
%
|
|
3.7
|
|
|||
Asset-backed securities
|
227,121
|
|
|
6
|
%
|
|
0.9
|
|
|
185,156
|
|
|
5
|
%
|
|
0.9
|
|
|
81,385
|
|
|
2
|
%
|
|
2.4
|
|
|||
Private label residential CMOs
|
112,037
|
|
|
3
|
%
|
|
4.6
|
|
|
123,247
|
|
|
3
|
%
|
|
3.5
|
|
|
101,205
|
|
|
2
|
%
|
|
4.2
|
|
|||
Collateralized loan obligations
|
93,802
|
|
|
3
|
%
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|||
SBA securities
|
51,812
|
|
|
1
|
%
|
|
4.0
|
|
|
52,024
|
|
|
1
|
%
|
|
4.1
|
|
|
67,047
|
|
|
2
|
%
|
|
3.5
|
|
|||
Corporate debt securities
|
20,034
|
|
|
1
|
%
|
|
11.4
|
|
|
18,700
|
|
|
—
|
%
|
|
11.0
|
|
|
17,553
|
|
|
—
|
%
|
|
11.0
|
|
|||
U.S. Treasury securities
|
5,188
|
|
|
—
|
%
|
|
3.6
|
|
|
290,717
|
|
|
7
|
%
|
|
2.5
|
|
|
403,405
|
|
|
10
|
%
|
|
3.0
|
|
|||
Total securities available-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
for-sale
|
$
|
3,807,244
|
|
|
100
|
%
|
|
4.5
|
|
|
$
|
3,994,708
|
|
|
100
|
%
|
|
5.0
|
|
|
$
|
4,009,431
|
|
|
100
|
%
|
|
5.2
|
|
|
June 30, 2019
|
|||||
|
Fair
|
|
% of
|
|||
Municipal Securities by State
|
Value
|
|
Total
|
|||
|
(Dollars in thousands)
|
|||||
California
|
$
|
183,273
|
|
|
25
|
%
|
Washington
|
115,878
|
|
|
16
|
%
|
|
Utah
|
66,599
|
|
|
9
|
%
|
|
New York
|
52,236
|
|
|
7
|
%
|
|
Texas
|
43,117
|
|
|
6
|
%
|
|
Idaho
|
37,974
|
|
|
5
|
%
|
|
Florida
|
29,840
|
|
|
4
|
%
|
|
Oregon
|
26,073
|
|
|
3
|
%
|
|
Illinois
|
24,944
|
|
|
3
|
%
|
|
Ohio
|
19,020
|
|
|
3
|
%
|
|
Total of ten largest states
|
598,954
|
|
|
81
|
%
|
|
All other states
|
137,616
|
|
|
19
|
%
|
|
Total municipal securities
|
$
|
736,570
|
|
|
100
|
%
|
|
June 30, 2019
|
|
March 31, 2019
|
|
December 31, 2018
|
|||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||
Loan and Lease Portfolio
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Healthcare real estate
|
$
|
328,089
|
|
|
2
|
%
|
|
$
|
415,314
|
|
|
2
|
%
|
|
$
|
451,776
|
|
|
3
|
%
|
Hospitality
|
534,765
|
|
|
3
|
%
|
|
587,675
|
|
|
3
|
%
|
|
575,516
|
|
|
3
|
%
|
|||
SBA program
|
557,070
|
|
|
3
|
%
|
|
553,563
|
|
|
3
|
%
|
|
559,113
|
|
|
3
|
%
|
|||
Other commercial real estate
|
3,015,350
|
|
|
16
|
%
|
|
3,083,958
|
|
|
17
|
%
|
|
3,237,893
|
|
|
18
|
%
|
|||
Total commercial real estate mortgage
|
4,435,274
|
|
|
24
|
%
|
|
4,640,510
|
|
|
25
|
%
|
|
4,824,298
|
|
|
27
|
%
|
|||
Income producing and other residential
|
3,534,999
|
|
|
19
|
%
|
|
3,406,373
|
|
|
18
|
%
|
|
2,971,213
|
|
|
16
|
%
|
|||
Other residential real estate
|
105,753
|
|
|
1
|
%
|
|
112,575
|
|
|
1
|
%
|
|
122,630
|
|
|
1
|
%
|
|||
Total income producing and other
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
residential real estate mortgage
|
3,640,752
|
|
|
20
|
%
|
|
3,518,948
|
|
|
19
|
%
|
|
3,093,843
|
|
|
17
|
%
|
|||
Total real estate mortgage
|
8,076,026
|
|
|
44
|
%
|
|
8,159,458
|
|
|
44
|
%
|
|
7,918,141
|
|
|
44
|
%
|
|||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
972,891
|
|
|
5
|
%
|
|
943,596
|
|
|
5
|
%
|
|
912,583
|
|
|
5
|
%
|
|||
Residential
|
1,403,239
|
|
|
8
|
%
|
|
1,408,128
|
|
|
8
|
%
|
|
1,321,073
|
|
|
8
|
%
|
|||
Total real estate construction and land
|
2,376,130
|
|
|
13
|
%
|
|
2,351,724
|
|
|
13
|
%
|
|
2,233,656
|
|
|
13
|
%
|
|||
Total real estate
|
10,452,156
|
|
|
57
|
%
|
|
10,511,182
|
|
|
57
|
%
|
|
10,151,797
|
|
|
57
|
%
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Lender finance & timeshare
|
2,021,989
|
|
|
11
|
%
|
|
1,860,670
|
|
|
10
|
%
|
|
1,780,731
|
|
|
10
|
%
|
|||
Equipment finance
|
764,662
|
|
|
4
|
%
|
|
749,124
|
|
|
4
|
%
|
|
734,331
|
|
|
4
|
%
|
|||
Other asset-based
|
407,923
|
|
|
2
|
%
|
|
422,623
|
|
|
3
|
%
|
|
434,005
|
|
|
2
|
%
|
|||
Premium finance
|
411,433
|
|
|
2
|
%
|
|
389,785
|
|
|
2
|
%
|
|
356,354
|
|
|
2
|
%
|
|||
Total asset-based
|
3,606,007
|
|
|
19
|
%
|
|
3,422,202
|
|
|
19
|
%
|
|
3,305,421
|
|
|
18
|
%
|
|||
Equity fund loans
|
1,115,677
|
|
|
6
|
%
|
|
871,399
|
|
|
5
|
%
|
|
797,500
|
|
|
4
|
%
|
|||
Early stage
|
221,274
|
|
|
1
|
%
|
|
207,431
|
|
|
1
|
%
|
|
225,566
|
|
|
1
|
%
|
|||
Expansion stage
|
785,003
|
|
|
4
|
%
|
|
858,711
|
|
|
5
|
%
|
|
908,047
|
|
|
5
|
%
|
|||
Late stage
|
72,789
|
|
|
1
|
%
|
|
89,909
|
|
|
—
|
%
|
|
107,635
|
|
|
1
|
%
|
|||
Total venture capital
|
2,194,743
|
|
|
12
|
%
|
|
2,027,450
|
|
|
11
|
%
|
|
2,038,748
|
|
|
11
|
%
|
|||
Secured business loans
|
557,111
|
|
|
3
|
%
|
|
744,179
|
|
|
4
|
%
|
|
788,012
|
|
|
4
|
%
|
|||
Security monitoring
|
630,210
|
|
|
3
|
%
|
|
632,899
|
|
|
3
|
%
|
|
643,369
|
|
|
4
|
%
|
|||
Other lending
|
498,561
|
|
|
3
|
%
|
|
485,936
|
|
|
3
|
%
|
|
514,947
|
|
|
3
|
%
|
|||
Cash flow
|
87,682
|
|
|
1
|
%
|
|
111,688
|
|
|
1
|
%
|
|
114,098
|
|
|
1
|
%
|
|||
Total other commercial
|
1,773,564
|
|
|
10
|
%
|
|
1,974,702
|
|
|
11
|
%
|
|
2,060,426
|
|
|
12
|
%
|
|||
Total commercial
|
7,574,314
|
|
|
41
|
%
|
|
7,424,354
|
|
|
41
|
%
|
|
7,404,595
|
|
|
41
|
%
|
|||
Consumer
|
446,382
|
|
|
2
|
%
|
|
372,161
|
|
|
2
|
%
|
|
401,321
|
|
|
2
|
%
|
|||
Total loans and leases held for investment,
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
net of deferred fees
|
$
|
18,472,852
|
|
|
100
|
%
|
|
$
|
18,307,697
|
|
|
100
|
%
|
|
$
|
17,957,713
|
|
|
100
|
%
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
|
|
% of
|
|
|
|
% of
|
||||||
Real Estate Loans by State
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||||
California
|
$
|
6,249,546
|
|
|
60
|
%
|
|
$
|
5,798,045
|
|
|
57
|
%
|
New York
|
747,155
|
|
|
7
|
%
|
|
855,644
|
|
|
8
|
%
|
||
Florida
|
451,413
|
|
|
4
|
%
|
|
547,054
|
|
|
5
|
%
|
||
Texas
|
336,653
|
|
|
3
|
%
|
|
378,834
|
|
|
4
|
%
|
||
Washington
|
305,143
|
|
|
3
|
%
|
|
253,545
|
|
|
3
|
%
|
||
Oregon
|
274,567
|
|
|
3
|
%
|
|
227,067
|
|
|
2
|
%
|
||
Virginia
|
193,334
|
|
|
2
|
%
|
|
206,920
|
|
|
2
|
%
|
||
Arizona
|
185,604
|
|
|
2
|
%
|
|
235,425
|
|
|
2
|
%
|
||
Illinois
|
179,592
|
|
|
2
|
%
|
|
154,808
|
|
|
2
|
%
|
||
New Jersey
|
158,840
|
|
|
1
|
%
|
|
179,045
|
|
|
2
|
%
|
||
Total of 10 largest states
|
9,081,847
|
|
|
87
|
%
|
|
8,836,387
|
|
|
87
|
%
|
||
All other states
|
1,370,309
|
|
|
13
|
%
|
|
1,315,410
|
|
|
13
|
%
|
||
Total real estate loans held for investment, net of deferred fees
|
$
|
10,452,156
|
|
|
100
|
%
|
|
$
|
10,151,797
|
|
|
100
|
%
|
(1)
|
Includes direct financing leases but excludes equipment leased to others under operating leases.
|
(2)
|
The weighted average rate on production presents contractual rates on a tax equivalent basis and does not include amortized fees. Amortized fees added approximately 32 basis points to loan yields for the six months ended June 30, 2019.
|
•
|
current economic trends and forecasts;
|
•
|
current collateral 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;
|
•
|
loan and lease portfolio composition and any loan concentrations;
|
•
|
current lending policies and the effects of any new policies or policy amendments;
|
•
|
loan and lease production volume and mix;
|
•
|
loan and lease portfolio credit performance trends;
|
•
|
results of our independent credit review; and
|
•
|
changes in management related to credit administration functions.
|
•
|
Pass: Loans and leases rated as "pass" are not adversely classified and collection and repayment in full are expected.
|
•
|
Special Mention: Loans and leases rated 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 rated 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 rated as "doubtful" have all the weaknesses of those rated as "substandard," with the additional trait that the weaknesses make collection or repayment in full highly questionable and improbable.
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
June 30,
|
||||||||
Allowance for Credit Losses Data
|
2019
|
|
2019
|
|
2018
|
|
2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Allowance for loan and lease losses
|
$
|
135,037
|
|
|
$
|
136,281
|
|
|
$
|
132,472
|
|
|
$
|
132,139
|
|
Reserve for unfunded loan commitments
|
34,861
|
|
|
36,861
|
|
|
36,861
|
|
|
35,361
|
|
||||
Total allowance for credit losses
|
$
|
169,898
|
|
|
$
|
173,142
|
|
|
$
|
169,333
|
|
|
$
|
167,500
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance for credit losses to loans and leases held for investment
|
0.92
|
%
|
|
0.95
|
%
|
|
0.94
|
%
|
|
0.99
|
%
|
||||
Allowance for credit losses to nonaccrual loans and leases held for investment
|
209.1
|
%
|
|
195.6
|
%
|
|
213.5
|
%
|
|
147.3
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
Allowance for Credit Losses Roll Forward
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Balance, beginning of period (1)
|
$
|
173,142
|
|
|
$
|
169,333
|
|
|
$
|
167,136
|
|
|
$
|
169,333
|
|
|
$
|
168,091
|
|
Provision for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Addition to allowance for loan and lease losses
|
10,000
|
|
|
4,000
|
|
|
15,000
|
|
|
14,000
|
|
|
14,774
|
|
|||||
(Reduction in) addition to reserve for unfunded
|
|
|
|
|
|
|
|
|
|
||||||||||
loan commitments
|
(2,000
|
)
|
|
—
|
|
|
2,500
|
|
|
(2,000
|
)
|
|
6,726
|
|
|||||
Total provision for credit losses
|
8,000
|
|
|
4,000
|
|
|
17,500
|
|
|
12,000
|
|
|
21,500
|
|
|||||
Loans and leases charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate mortgage
|
(534
|
)
|
|
(196
|
)
|
|
(4,747
|
)
|
|
(730
|
)
|
|
(7,344
|
)
|
|||||
Real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
(16,927
|
)
|
|
(3,003
|
)
|
|
(13,424
|
)
|
|
(19,930
|
)
|
|
(22,949
|
)
|
|||||
Consumer
|
(176
|
)
|
|
(266
|
)
|
|
(64
|
)
|
|
(442
|
)
|
|
(95
|
)
|
|||||
Total loans and leases charged off
|
(17,637
|
)
|
|
(3,465
|
)
|
|
(18,235
|
)
|
|
(21,102
|
)
|
|
(30,388
|
)
|
|||||
Recoveries on loans charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate mortgage
|
240
|
|
|
143
|
|
|
119
|
|
|
383
|
|
|
1,776
|
|
|||||
Real estate construction and land
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
27
|
|
|||||
Commercial
|
6,080
|
|
|
3,106
|
|
|
912
|
|
|
9,186
|
|
|
6,399
|
|
|||||
Consumer
|
73
|
|
|
25
|
|
|
50
|
|
|
98
|
|
|
95
|
|
|||||
Total recoveries on loans charged off
|
6,393
|
|
|
3,274
|
|
|
1,099
|
|
|
9,667
|
|
|
8,297
|
|
|||||
Net charge-offs
|
(11,244
|
)
|
|
(191
|
)
|
|
(17,136
|
)
|
|
(11,435
|
)
|
|
(22,091
|
)
|
|||||
Balance, end of period
|
$
|
169,898
|
|
|
$
|
173,142
|
|
|
$
|
167,500
|
|
|
$
|
169,898
|
|
|
$
|
167,500
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized net charge-offs to average loans and leases
|
0.25
|
%
|
|
—
|
%
|
|
0.41
|
%
|
|
0.13
|
%
|
|
0.27
|
%
|
(1)
|
The allowance for credit losses related to PCI loans of $6.4 million as of December 31, 2017 is reflected in the beginning balance for the six months ended June 30, 2018.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
Allowance for Credit Losses Charge-offs
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Healthcare real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Hospitality
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SBA program
|
534
|
|
|
96
|
|
|
111
|
|
|
630
|
|
|
2,126
|
|
|||||
Other commercial real estate
|
—
|
|
|
9
|
|
|
4,492
|
|
|
9
|
|
|
5,013
|
|
|||||
Total commercial real estate mortgage
|
534
|
|
|
105
|
|
|
4,603
|
|
|
639
|
|
|
7,139
|
|
|||||
Income producing and other residential
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
144
|
|
|||||
Other residential real estate
|
—
|
|
|
91
|
|
|
—
|
|
|
91
|
|
|
61
|
|
|||||
Total income producing and other residential
|
|
|
|
|
|
|
|
|
|
||||||||||
real estate mortgage
|
—
|
|
|
91
|
|
|
144
|
|
|
91
|
|
|
205
|
|
|||||
Total real estate mortgage
|
534
|
|
|
196
|
|
|
4,747
|
|
|
730
|
|
|
7,344
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lender finance & timeshare
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Equipment finance
|
—
|
|
|
—
|
|
|
2,934
|
|
|
—
|
|
|
2,934
|
|
|||||
Other asset-based
|
11,800
|
|
|
—
|
|
|
—
|
|
|
11,800
|
|
|
360
|
|
|||||
Premium finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total asset-based
|
11,800
|
|
|
—
|
|
|
2,934
|
|
|
11,800
|
|
|
3,302
|
|
|||||
Expansion stage
|
1,463
|
|
|
204
|
|
|
2,195
|
|
|
1,667
|
|
|
4,669
|
|
|||||
Early stage
|
—
|
|
|
96
|
|
|
3,888
|
|
|
96
|
|
|
3,721
|
|
|||||
Equity fund loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Late stage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total venture capital
|
1,463
|
|
|
300
|
|
|
6,083
|
|
|
1,763
|
|
|
8,390
|
|
|||||
Security monitoring
|
—
|
|
|
1,707
|
|
|
—
|
|
|
1,707
|
|
|
—
|
|
|||||
Secured business loans
|
100
|
|
|
9
|
|
|
88
|
|
|
109
|
|
|
553
|
|
|||||
Other lending
|
1,182
|
|
|
514
|
|
|
78
|
|
|
1,696
|
|
|
764
|
|
|||||
Cash flow
|
2,382
|
|
|
473
|
|
|
4,241
|
|
|
2,855
|
|
|
9,940
|
|
|||||
Total other commercial
|
3,664
|
|
|
2,703
|
|
|
4,407
|
|
|
6,367
|
|
|
11,257
|
|
|||||
Total commercial
|
16,927
|
|
|
3,003
|
|
|
13,424
|
|
|
19,930
|
|
|
22,949
|
|
|||||
Consumer
|
176
|
|
|
266
|
|
|
64
|
|
|
442
|
|
|
95
|
|
|||||
Total charge-offs
|
$
|
17,637
|
|
|
$
|
3,465
|
|
|
$
|
18,235
|
|
|
$
|
21,102
|
|
|
$
|
30,388
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
Allowance for Credit Losses Recoveries
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Healthcare real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Hospitality
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SBA program
|
88
|
|
|
33
|
|
|
19
|
|
|
121
|
|
|
275
|
|
|||||
Other commercial real estate
|
59
|
|
|
72
|
|
|
—
|
|
|
131
|
|
|
162
|
|
|||||
Total commercial real estate mortgage
|
147
|
|
|
105
|
|
|
19
|
|
|
252
|
|
|
437
|
|
|||||
Income producing and other residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,208
|
|
|||||
Other residential real estate
|
93
|
|
|
38
|
|
|
100
|
|
|
131
|
|
|
131
|
|
|||||
Total income producing and other residential
|
|
|
|
|
|
|
|
|
|
||||||||||
real estate mortgage
|
93
|
|
|
38
|
|
|
100
|
|
|
131
|
|
|
1,339
|
|
|||||
Total real estate mortgage
|
240
|
|
|
143
|
|
|
119
|
|
|
383
|
|
|
1,776
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
20
|
|
|||||
Residential
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||
Total real estate construction and land
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
27
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lender finance & timeshare
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|||||
Equipment finance
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
90
|
|
|||||
Other asset-based
|
239
|
|
|
79
|
|
|
69
|
|
|
318
|
|
|
119
|
|
|||||
Premium finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total asset-based
|
240
|
|
|
91
|
|
|
70
|
|
|
331
|
|
|
210
|
|
|||||
Expansion stage
|
1,961
|
|
|
97
|
|
|
(9
|
)
|
|
2,058
|
|
|
4,411
|
|
|||||
Early stage
|
2,862
|
|
|
2,155
|
|
|
65
|
|
|
5,017
|
|
|
281
|
|
|||||
Equity fund loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Late stage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total venture capital
|
4,823
|
|
|
2,252
|
|
|
56
|
|
|
7,075
|
|
|
4,692
|
|
|||||
Security monitoring
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Secured business loans
|
818
|
|
|
627
|
|
|
241
|
|
|
1,445
|
|
|
393
|
|
|||||
Other lending
|
190
|
|
|
125
|
|
|
545
|
|
|
315
|
|
|
1,104
|
|
|||||
Cash flow
|
9
|
|
|
11
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|||||
Total other commercial
|
1,017
|
|
|
763
|
|
|
786
|
|
|
1,780
|
|
|
1,497
|
|
|||||
Total commercial
|
6,080
|
|
|
3,106
|
|
|
912
|
|
|
9,186
|
|
|
6,399
|
|
|||||
Consumer
|
73
|
|
|
25
|
|
|
50
|
|
|
98
|
|
|
95
|
|
|||||
Total recoveries
|
$
|
6,393
|
|
|
$
|
3,274
|
|
|
$
|
1,099
|
|
|
$
|
9,667
|
|
|
$
|
8,297
|
|
|
June 30, 2019
|
|
March 31, 2019
|
|
December 31, 2018
|
|||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||
Deposit Composition
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Noninterest-bearing demand
|
$
|
7,299,213
|
|
|
39
|
%
|
|
$
|
7,712,409
|
|
|
40
|
%
|
|
$
|
7,888,915
|
|
|
42
|
%
|
Interest checking
|
3,220,353
|
|
|
17
|
%
|
|
3,163,228
|
|
|
16
|
%
|
|
2,842,463
|
|
|
15
|
%
|
|||
Money market
|
4,578,083
|
|
|
24
|
%
|
|
4,714,078
|
|
|
25
|
%
|
|
5,043,871
|
|
|
27
|
%
|
|||
Savings
|
519,839
|
|
|
3
|
%
|
|
537,923
|
|
|
3
|
%
|
|
571,422
|
|
|
3
|
%
|
|||
Total core deposits
|
15,617,488
|
|
|
83
|
%
|
|
16,127,638
|
|
|
84
|
%
|
|
16,346,671
|
|
|
87
|
%
|
|||
Non-core non-maturity deposits
|
436,833
|
|
|
2
|
%
|
|
454,277
|
|
|
2
|
%
|
|
518,192
|
|
|
3
|
%
|
|||
Total non-maturity deposits
|
16,054,321
|
|
|
85
|
%
|
|
16,581,915
|
|
|
86
|
%
|
|
16,864,863
|
|
|
90
|
%
|
|||
Time deposits $250,000 and under
|
2,284,023
|
|
|
12
|
%
|
|
2,258,989
|
|
|
12
|
%
|
|
1,593,453
|
|
|
8
|
%
|
|||
Time deposits over $250,000
|
467,412
|
|
|
3
|
%
|
|
445,023
|
|
|
2
|
%
|
|
412,185
|
|
|
2
|
%
|
|||
Total time deposits
|
2,751,435
|
|
|
15
|
%
|
|
2,704,012
|
|
|
14
|
%
|
|
2,005,638
|
|
|
10
|
%
|
|||
Total deposits
|
$
|
18,805,756
|
|
|
100
|
%
|
|
$
|
19,285,927
|
|
|
100
|
%
|
|
$
|
18,870,501
|
|
|
100
|
%
|
|
Time Deposits
|
||||||||||
|
$250,000
|
|
Over
|
|
|
||||||
June 30, 2019
|
and Under
|
|
$250,000
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Maturities:
|
|
|
|
|
|
||||||
Due in three months or less
|
$
|
1,045,315
|
|
|
$
|
187,812
|
|
|
$
|
1,233,127
|
|
Due in over three months through six months
|
533,849
|
|
|
168,196
|
|
|
702,045
|
|
|||
Due in over six months through twelve months
|
598,434
|
|
|
91,573
|
|
|
690,007
|
|
|||
Total due within twelve months
|
2,177,598
|
|
|
447,581
|
|
|
2,625,179
|
|
|||
Due in over 12 months through 24 months
|
84,045
|
|
|
18,395
|
|
|
102,440
|
|
|||
Due in over 24 months
|
22,380
|
|
|
1,436
|
|
|
23,816
|
|
|||
Total
|
$
|
2,284,023
|
|
|
$
|
467,412
|
|
|
$
|
2,751,435
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
June 30,
|
||||||||
|
2019
|
|
2019
|
|
2018
|
|
2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Nonaccrual loans and leases held for investment
|
$
|
81,265
|
|
|
$
|
88,527
|
|
|
$
|
79,333
|
|
|
$
|
113,745
|
|
Accruing loans contractually past due 90 days or more
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreclosed assets, net
|
1,472
|
|
|
3,291
|
|
|
5,299
|
|
|
2,231
|
|
||||
Total nonperforming assets
|
$
|
82,737
|
|
|
$
|
91,818
|
|
|
$
|
84,632
|
|
|
$
|
115,976
|
|
|
|
|
|
|
|
|
|
||||||||
Performing TDRs held for investment
|
$
|
16,464
|
|
|
$
|
17,027
|
|
|
$
|
17,701
|
|
|
$
|
58,148
|
|
Classified loans and leases held for investment
|
$
|
190,979
|
|
|
$
|
190,305
|
|
|
$
|
237,110
|
|
|
$
|
236,292
|
|
Nonaccrual loans and leases held for investment to
|
|
|
|
|
|
|
|
||||||||
loans and leases held for investment
|
0.44
|
%
|
|
0.48
|
%
|
|
0.44
|
%
|
|
0.67
|
%
|
||||
Nonperforming assets to loans and leases held for investment
|
|
|
|
|
|
|
|
||||||||
and foreclosed assets, net
|
0.45
|
%
|
|
0.50
|
%
|
|
0.47
|
%
|
|
0.69
|
%
|
||||
Classified loans and leases held for investment
|
|
|
|
|
|
|
|
||||||||
to loans and leases held for investment
|
1.03
|
%
|
|
1.04
|
%
|
|
1.32
|
%
|
|
1.40
|
%
|
|
Nonaccrual Loans and Leases
|
|
Accruing and
|
||||||||||||||||||
|
June 30, 2019
|
|
March 31, 2019
|
|
30 - 89 Days Past Due
|
||||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
June 30,
|
|
March 31,
|
||||||||||
|
|
|
Loan
|
|
|
|
Loan
|
|
2019
|
|
2019
|
||||||||||
|
Amount
|
|
Category
|
|
Amount
|
|
Category
|
|
Amount
|
|
Amount
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
17,012
|
|
|
0.4
|
%
|
|
$
|
12,750
|
|
|
0.3
|
%
|
|
$
|
3,948
|
|
|
$
|
6,863
|
|
Income producing and other residential
|
2,883
|
|
|
0.1
|
%
|
|
2,444
|
|
|
0.1
|
%
|
|
3,262
|
|
|
1,853
|
|
||||
Total real estate mortgage
|
19,895
|
|
|
0.2
|
%
|
|
15,194
|
|
|
0.2
|
%
|
|
7,210
|
|
|
8,716
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
390
|
|
|
—
|
%
|
|
430
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
||||
Residential
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
4,672
|
|
|
8,949
|
|
||||
Total real estate construction and land
|
390
|
|
|
—
|
%
|
|
430
|
|
|
—
|
%
|
|
4,672
|
|
|
8,949
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
32,236
|
|
|
0.9
|
%
|
|
43,406
|
|
|
1.3
|
%
|
|
12,382
|
|
|
3,750
|
|
||||
Venture capital
|
22,501
|
|
|
1.0
|
%
|
|
20,437
|
|
|
1.0
|
%
|
|
—
|
|
|
4,500
|
|
||||
Other commercial
|
5,799
|
|
|
0.3
|
%
|
|
8,633
|
|
|
0.4
|
%
|
|
439
|
|
|
1,694
|
|
||||
Total commercial
|
60,536
|
|
|
0.8
|
%
|
|
72,476
|
|
|
1.0
|
%
|
|
12,821
|
|
|
9,944
|
|
||||
Consumer
|
444
|
|
|
0.1
|
%
|
|
427
|
|
|
0.1
|
%
|
|
964
|
|
|
614
|
|
||||
Total held for investment
|
$
|
81,265
|
|
|
0.4
|
%
|
|
$
|
88,527
|
|
|
0.5
|
%
|
|
$
|
25,667
|
|
|
$
|
28,223
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
June 30,
|
||||||||
Property Type
|
2019
|
|
2019
|
|
2018
|
|
2018
|
||||||||
|
(In thousands)
|
||||||||||||||
Commercial real estate
|
$
|
253
|
|
|
$
|
2,041
|
|
|
$
|
2,004
|
|
|
$
|
—
|
|
Single-family residence
|
953
|
|
|
953
|
|
|
953
|
|
|
953
|
|
||||
Construction and land development
|
219
|
|
|
219
|
|
|
219
|
|
|
219
|
|
||||
Multi-family
|
—
|
|
|
—
|
|
|
1,059
|
|
|
1,059
|
|
||||
Total OREO, net
|
1,425
|
|
|
3,213
|
|
|
4,235
|
|
|
2,231
|
|
||||
Other foreclosed assets
|
47
|
|
|
78
|
|
|
1,064
|
|
|
—
|
|
||||
Total foreclosed assets
|
$
|
1,472
|
|
|
$
|
3,291
|
|
|
$
|
5,299
|
|
|
$
|
2,231
|
|
|
June 30, 2019
|
|
March 31, 2019
|
|
December 31, 2018
|
|||||||||||||||
|
|
|
Number
|
|
|
|
Number
|
|
|
|
Number
|
|||||||||
|
|
|
of
|
|
|
|
of
|
|
|
|
of
|
|||||||||
Performing TDRs
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Real estate mortgage
|
$
|
10,457
|
|
|
25
|
|
|
$
|
11,355
|
|
|
27
|
|
|
$
|
11,484
|
|
|
27
|
|
Real estate construction and land
|
4,986
|
|
|
2
|
|
|
5,002
|
|
|
2
|
|
|
5,420
|
|
|
2
|
|
|||
Commercial
|
931
|
|
|
8
|
|
|
573
|
|
|
8
|
|
|
692
|
|
|
6
|
|
|||
Consumer
|
90
|
|
|
3
|
|
|
97
|
|
|
3
|
|
|
105
|
|
|
3
|
|
|||
Total performing TDRs held for investment
|
$
|
16,464
|
|
|
38
|
|
|
$
|
17,027
|
|
|
40
|
|
|
$
|
17,701
|
|
|
38
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
June 30,
|
||||||||
Loan and Lease Credit Risk Ratings
|
2019
|
|
2019
|
|
2018
|
|
2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Pass
|
$
|
18,042,569
|
|
|
$
|
17,824,612
|
|
|
$
|
17,459,205
|
|
|
$
|
16,142,052
|
|
Special mention
|
239,304
|
|
|
292,780
|
|
|
261,398
|
|
|
506,848
|
|
||||
Classified
|
190,979
|
|
|
190,305
|
|
|
237,110
|
|
|
236,292
|
|
||||
Total loans and leases held for investment,
|
|
|
|
|
|
|
|
||||||||
net of deferred fees
|
$
|
18,472,852
|
|
|
$
|
18,307,697
|
|
|
$
|
17,957,713
|
|
|
$
|
16,885,192
|
|
|
|
|
Minimum Required
|
||||
|
|
|
|
|
Plus Capital
|
|
|
|
|
|
For Capital
|
|
Conservation
|
|
For Well
|
|
|
|
Adequacy
|
|
Buffer Fully
|
|
Capitalized
|
|
Actual
|
|
Purposes
|
|
Phased-In
|
|
Requirement
|
June 30, 2019
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
9.49%
|
|
4.00%
|
|
4.000%
|
|
N/A
|
CET1 capital (to risk weighted assets)
|
9.53%
|
|
4.50%
|
|
7.000%
|
|
N/A
|
Tier 1 capital (to risk weighted assets)
|
9.53%
|
|
6.00%
|
|
8.500%
|
|
N/A
|
Total capital (to risk weighted assets)
|
12.18%
|
|
8.00%
|
|
10.500%
|
|
N/A
|
|
|
|
|
|
|
|
|
Pacific Western Bank
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
10.76%
|
|
4.00%
|
|
4.000%
|
|
5.00%
|
CET1 capital (to risk weighted assets)
|
10.80%
|
|
4.50%
|
|
7.000%
|
|
6.50%
|
Tier 1 capital (to risk weighted assets)
|
10.80%
|
|
6.00%
|
|
8.500%
|
|
8.00%
|
Total capital (to risk weighted assets)
|
11.54%
|
|
8.00%
|
|
10.500%
|
|
10.00%
|
|
|
|
Minimum Required
|
||||||
|
|
|
|
|
Plus Capital
|
|
|
|
Plus Capital
|
|
|
|
For Capital
|
|
Conservation
|
|
For Well
|
|
Conservation
|
|
|
|
Adequacy
|
|
Buffer
|
|
Capitalized
|
|
Buffer Fully
|
|
Actual
|
|
Purposes
|
|
Phase-In (1)
|
|
Requirement
|
|
Phased-In
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
10.13%
|
|
4.00%
|
|
4.000%
|
|
N/A
|
|
4.00%
|
CET1 capital (to risk weighted assets)
|
10.01%
|
|
4.50%
|
|
6.375%
|
|
N/A
|
|
7.00%
|
Tier 1 capital (to risk weighted assets)
|
10.01%
|
|
6.00%
|
|
7.875%
|
|
N/A
|
|
8.50%
|
Total capital (to risk weighted assets)
|
12.72%
|
|
8.00%
|
|
9.875%
|
|
N/A
|
|
10.50%
|
|
|
|
|
|
|
|
|
|
|
Pacific Western Bank
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
10.80%
|
|
4.00%
|
|
4.000%
|
|
5.00%
|
|
4.00%
|
CET1 capital (to risk weighted assets)
|
10.68%
|
|
4.50%
|
|
6.375%
|
|
6.50%
|
|
7.00%
|
Tier 1 capital (to risk weighted assets)
|
10.68%
|
|
6.00%
|
|
7.875%
|
|
8.00%
|
|
8.50%
|
Total capital (to risk weighted assets)
|
11.44%
|
|
8.00%
|
|
9.875%
|
|
10.00%
|
|
10.50%
|
(1)
|
Ratios for June 30, 2019 reflect the minimum required plus the fully phased-in capital conservation buffer of 2.50%; ratios for December 31, 2018 reflect the minimum required plus capital conservation buffer phase-in for 2018. The capital conservation buffer increased by 0.625% each year through 2019.
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||
Primary Liquidity - On-Balance Sheet
|
2019
|
|
2019
|
|
2018
|
||||||
|
(Dollars in thousands)
|
||||||||||
Cash and due from banks
|
$
|
185,075
|
|
|
$
|
224,758
|
|
|
$
|
175,830
|
|
Interest-earning deposits in financial institutions
|
422,663
|
|
|
332,124
|
|
|
209,937
|
|
|||
Securities available-for-sale
|
3,807,244
|
|
|
3,994,708
|
|
|
4,009,431
|
|
|||
Less: pledged securities
|
(493,795
|
)
|
|
(495,375
|
)
|
|
(458,143
|
)
|
|||
Total primary liquidity
|
$
|
3,921,187
|
|
|
$
|
4,056,215
|
|
|
$
|
3,937,055
|
|
|
|
|
|
|
|
||||||
Ratio of primary liquidity to total deposits
|
20.9
|
%
|
|
21.0
|
%
|
|
20.9
|
%
|
Secondary Liquidity - Off-Balance Sheet
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||
Available Secured Borrowing Capacity
|
2019
|
|
2019
|
|
2018
|
||||||
|
(In thousands)
|
||||||||||
Secured borrowing capacity with the FHLB
|
$
|
4,236,046
|
|
|
$
|
3,966,178
|
|
|
$
|
3,746,970
|
|
Less: secured advances outstanding
|
(1,522,000
|
)
|
|
(1,090,000
|
)
|
|
(1,040,000
|
)
|
|||
Available secured borrowing capacity with the FHLB
|
2,714,046
|
|
|
2,876,178
|
|
|
2,706,970
|
|
|||
Available secured borrowing capacity with the FRBSF
|
1,991,861
|
|
|
2,223,695
|
|
|
2,003,269
|
|
|||
Total secondary liquidity
|
$
|
4,705,907
|
|
|
$
|
5,099,873
|
|
|
$
|
4,710,239
|
|
|
June 30, 2019
|
||||||||||||||||||
|
|
|
Due After
|
|
Due After
|
|
|
|
|
||||||||||
|
Due
|
|
One Year
|
|
Three Years
|
|
Due
|
|
|
||||||||||
|
Within
|
|
Through
|
|
Through
|
|
After
|
|
|
||||||||||
|
One Year
|
|
Three Years
|
|
Five Years
|
|
Five Years
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Time deposits
|
$
|
2,625,179
|
|
|
$
|
120,782
|
|
|
$
|
5,474
|
|
|
$
|
—
|
|
|
$
|
2,751,435
|
|
Short-term borrowings
|
1,913,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,913,000
|
|
|||||
Long-term debt obligations (1)
|
59
|
|
|
—
|
|
|
—
|
|
|
541,102
|
|
|
541,161
|
|
|||||
Contractual interest (2)
|
19,917
|
|
|
2,954
|
|
|
150
|
|
|
—
|
|
|
23,021
|
|
|||||
Operating lease obligations
|
32,843
|
|
|
55,690
|
|
|
38,753
|
|
|
29,701
|
|
|
156,987
|
|
|||||
Other contractual obligations
|
58,834
|
|
|
58,354
|
|
|
14,520
|
|
|
26,014
|
|
|
157,722
|
|
|||||
Total
|
$
|
4,649,832
|
|
|
$
|
237,780
|
|
|
$
|
58,897
|
|
|
$
|
596,817
|
|
|
$
|
5,543,326
|
|
(1)
|
Excludes purchase accounting fair value adjustments.
|
(2)
|
Excludes interest on subordinated debentures as these instruments are variable rate.
|
|
Forecasted
|
|
|
|
Forecasted
|
|
Forecasted
|
||
|
Net Interest
|
|
Percentage
|
|
Net Interest
|
|
Net Interest
|
||
|
Income
|
|
Change
|
|
Margin
|
|
Margin Change
|
||
June 30, 2019
|
(Tax Equivalent)
|
|
From Base
|
|
(Tax Equivalent)
|
|
From Base
|
||
|
(Dollars in millions)
|
|
|
|
|
|
|
||
Interest Rate Scenario:
|
|
|
|
|
|
|
|
||
Up 300 basis points
|
$
|
1,074.7
|
|
|
12.3%
|
|
4.82%
|
|
0.49%
|
Up 200 basis points
|
$
|
1,030.2
|
|
|
7.6%
|
|
4.65%
|
|
0.32%
|
Up 100 basis points
|
$
|
984.6
|
|
|
2.9%
|
|
4.47%
|
|
0.14%
|
BASE CASE
|
$
|
957.2
|
|
|
—
|
|
4.33%
|
|
—
|
Down 100 basis points
|
$
|
910.8
|
|
|
(4.8)%
|
|
4.18%
|
|
(0.15)%
|
Down 200 basis points
|
$
|
872.7
|
|
|
(8.8)%
|
|
4.17%
|
|
(0.16)%
|
Down 300 basis points
|
$
|
872.1
|
|
|
(8.9)%
|
|
4.08%
|
|
(0.25)%
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|||||||
|
Projected
|
|
Dollar
|
|
Percentage
|
|
Percentage
|
|
Projected
|
|||||||
|
Market Value
|
|
Change
|
|
Change
|
|
of Total
|
|
Market Value
|
|||||||
June 30, 2019
|
of Equity
|
|
From Base
|
|
From Base
|
|
Assets
|
|
to Book Value
|
|||||||
|
(Dollars in millions)
|
|
|
|
|
|
|
|||||||||
Interest Rate Scenario:
|
|
|
|
|
|
|
|
|
|
|||||||
Up 300 basis points
|
$
|
5,681.2
|
|
|
$
|
40.2
|
|
|
0.7
|
%
|
|
21.6
|
%
|
|
117.1
|
%
|
Up 200 basis points
|
$
|
5,664.2
|
|
|
$
|
23.3
|
|
|
0.4
|
%
|
|
21.5
|
%
|
|
116.7
|
%
|
Up 100 basis points
|
$
|
5,651.1
|
|
|
$
|
10.1
|
|
|
0.2
|
%
|
|
21.5
|
%
|
|
116.5
|
%
|
BASE CASE
|
$
|
5,641.0
|
|
|
$
|
—
|
|
|
—
|
%
|
|
21.4
|
%
|
|
116.3
|
%
|
Down 100 basis points
|
$
|
5,659.4
|
|
|
$
|
18.5
|
|
|
0.3
|
%
|
|
21.5
|
%
|
|
116.6
|
%
|
Down 200 basis points
|
$
|
5,533.1
|
|
|
$
|
(107.9
|
)
|
|
(1.9
|
)%
|
|
21.0
|
%
|
|
114.0
|
%
|
Down 300 basis points
|
$
|
5,319.5
|
|
|
$
|
(321.5
|
)
|
|
(5.7
|
)%
|
|
20.2
|
%
|
|
109.6
|
%
|
|
|
|
|
|
Total Number of
|
|
Maximum Dollar
|
||||||
|
|
|
|
|
Shares Purchased
|
|
Value of Shares
|
||||||
|
Total
|
|
|
|
as Part of
|
|
That May Yet
|
||||||
|
Number of
|
|
Average
|
|
Publicly
|
|
Be Purchased
|
||||||
|
Shares
|
|
Price Paid
|
|
Announced
|
|
Under the
|
||||||
Purchase Dates
|
Purchased (1)
|
|
Per Share
|
|
Program (2)
|
|
Program (2)
|
||||||
|
|
|
|
|
|
|
(In thousands)
|
|
|||||
April 1 – April 30, 2019
|
126,574
|
|
|
$
|
38.95
|
|
|
126,574
|
|
|
$
|
154,707
|
|
May 1 – May 31, 2019
|
599,610
|
|
|
$
|
38.00
|
|
|
525,181
|
|
|
$
|
134,707
|
|
June 1 – June 30, 2019
|
265,514
|
|
|
$
|
37.66
|
|
|
265,514
|
|
|
$
|
124,707
|
|
Total
|
991,698
|
|
|
$
|
38.03
|
|
|
917,269
|
|
|
|
(1)
|
Includes shares repurchased pursuant to net settlement by employees in satisfaction of income tax withholding obligations incurred through the vesting of Company stock awards, and shares repurchased pursuant to the Company's publicly announced Stock Repurchase Program, described in (2) below.
|
(2)
|
On February 24, 2019, effective upon the maturity of the current Stock Repurchase Program on February 28, 2019, PacWest's Board of Directors authorized a new Stock Repurchase Program to purchase shares of its common stock for an aggregate purchase price not to exceed $225 million until February 29, 2020. All shares repurchased under the Stock Repurchase Program were retired upon settlement.
|
Exhibit Number
|
Description
|
2.4
|
|
3.1
|
|
3.2
|
|
3.5
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
10.6
|
|
10.7
|
|
10.8
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, (ii) the Condensed Consolidated Statements of Earnings for the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, and six months ended June 30, 2019 and 2018, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, and six months ended June 30, 2019 and 2018, (iv) the Condensed Consolidated Statements of Changes in Stockholders' Equity for the six months ended June 30, 2019 and 2018, (v) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018, and (vi) the Notes to Condensed Consolidated Financial Statements (Filed herewith).
|
|
|
PACWEST BANCORP
|
|
|
|
Date:
|
August 7, 2019
|
/s/ Bart R. Olson
|
|
|
Bart R. Olson
|
|
|
Executive Vice President and Chief Accounting Officer
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRANTEE:
By: ____________________________________
|
|
PACWEST BANCORP
By:
|
|
||||
Name:
|
|
|
|
|
|
||
|
|
|
|
||||
|
|
|
|
|
||
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:
|
|
___________________________________________________
|
|
||
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:
|
|
___________________________________________________
|
1.
|
I have reviewed this report on Form 10-Q for the quarterly period ended June 30, 2019 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:
|
August 7, 2019
|
/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 June 30, 2019 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:
|
August 7, 2019
|
/s/ Patrick J. Rusnak
|
|
|
Patrick J. Rusnak
Executive Vice President and Chief Financial Officer
|
Date:
|
August 7, 2019
|
/s/ Matthew P. Wagner
|
|
|
Matthew P. Wagner
Chief Executive Officer
|
Date:
|
August 7, 2019
|
/s/ Patrick J. Rusnak
|
|
|
Patrick J. Rusnak
Executive Vice President and Chief Financial Officer
|