|
Title of each class
|
|
Trading
Symbol(s)
|
|
Name of each exchange
on which registered
|
|
Common Stock, $0.001 Par Value
|
|
EWBC
|
|
The Nasdaq Global Select Market
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
Page
|
|
|
|
|
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
|
|
|
|||
|
|||
|
|||
|
|
|
|
|
|
|
|
|
|||
|
|||
|
|||
|
|||
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
475,291
|
|
|
$
|
516,291
|
|
Interest-bearing cash with banks
|
|
2,566,990
|
|
|
2,485,086
|
|
||
Cash and cash equivalents
|
|
3,042,281
|
|
|
3,001,377
|
|
||
Interest-bearing deposits with banks
|
|
160,423
|
|
|
371,000
|
|
||
Securities purchased under resale agreements (“resale agreements”)
|
|
860,000
|
|
|
1,035,000
|
|
||
Securities:
|
|
|
|
|
||||
Available-for-sale investment securities, at fair value (includes assets pledged as collateral of $524,413 in 2019 and $435,833 in 2018)
|
|
3,284,034
|
|
|
2,741,847
|
|
||
Restricted equity securities, at cost
|
|
78,334
|
|
|
74,069
|
|
||
Loans held-for-sale
|
|
294
|
|
|
275
|
|
||
Loans held-for-investment (net of allowance for loan losses of $345,576 in 2019 and $311,322 in 2018; includes assets pledged as collateral of $21,825,918 in 2019 and $20,590,035 in 2018)
|
|
33,679,400
|
|
|
32,073,867
|
|
||
Investments in qualified affordable housing partnerships, net
|
|
190,000
|
|
|
184,873
|
|
||
Investments in tax credit and other investments, net
|
|
211,603
|
|
|
231,635
|
|
||
Premises and equipment (net of accumulated depreciation of $114,418 in 2019 and $118,547 in 2018)
|
|
120,859
|
|
|
119,180
|
|
||
Goodwill
|
|
465,697
|
|
|
465,547
|
|
||
Operating lease right-of-use assets
|
|
103,894
|
|
|
—
|
|
||
Other assets
|
|
1,077,840
|
|
|
743,686
|
|
||
TOTAL
|
|
$
|
43,274,659
|
|
|
$
|
41,042,356
|
|
LIABILITIES
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
10,806,937
|
|
|
$
|
11,377,009
|
|
Interest-bearing
|
|
25,852,589
|
|
|
24,062,619
|
|
||
Total deposits
|
|
36,659,526
|
|
|
35,439,628
|
|
||
Short-term borrowings
|
|
47,689
|
|
|
57,638
|
|
||
Federal Home Loan Bank (“FHLB”) advances
|
|
745,494
|
|
|
326,172
|
|
||
Securities sold under repurchase agreements (“repurchase agreements”)
|
|
50,000
|
|
|
50,000
|
|
||
Long-term debt and finance lease liabilities
|
|
152,390
|
|
|
146,835
|
|
||
Operating lease liabilities
|
|
112,142
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
|
624,754
|
|
|
598,109
|
|
||
Total liabilities
|
|
38,391,995
|
|
|
36,618,382
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 12)
|
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 166,554,706 and 165,867,587 shares issued in 2019 and 2018, respectively
|
|
166
|
|
|
166
|
|
||
Additional paid-in capital
|
|
1,817,100
|
|
|
1,789,811
|
|
||
Retained earnings
|
|
3,545,824
|
|
|
3,160,132
|
|
||
Treasury stock, at cost — 20,986,994 shares in 2019 and 20,906,224 shares in 2018
|
|
(479,459
|
)
|
|
(467,961
|
)
|
||
Accumulated other comprehensive loss (“AOCI”), net of tax
|
|
(967
|
)
|
|
(58,174
|
)
|
||
Total stockholders’ equity
|
|
4,882,664
|
|
|
4,423,974
|
|
||
TOTAL
|
|
$
|
43,274,659
|
|
|
$
|
41,042,356
|
|
|
|
||||||||||||||||
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
|
|
|
|
|
||||||||
Loans receivable, including fees
|
|
$
|
433,658
|
|
|
$
|
385,538
|
|
|
$
|
1,291,642
|
|
|
$
|
1,088,997
|
|
Available-for-sale investment securities
|
|
15,945
|
|
|
15,180
|
|
|
47,378
|
|
|
45,695
|
|
||||
Resale agreements
|
|
6,881
|
|
|
7,393
|
|
|
22,070
|
|
|
21,509
|
|
||||
Restricted equity securities
|
|
656
|
|
|
721
|
|
|
1,874
|
|
|
2,155
|
|
||||
Interest-bearing cash and deposits with banks
|
|
19,772
|
|
|
13,353
|
|
|
52,103
|
|
|
36,013
|
|
||||
Total interest and dividend income
|
|
476,912
|
|
|
422,185
|
|
|
1,415,067
|
|
|
1,194,369
|
|
||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
96,820
|
|
|
65,032
|
|
|
286,789
|
|
|
155,433
|
|
||||
Federal funds purchased and other short-term borrowings
|
|
382
|
|
|
643
|
|
|
1,359
|
|
|
774
|
|
||||
FHLB advances
|
|
5,021
|
|
|
2,732
|
|
|
12,011
|
|
|
7,544
|
|
||||
Repurchase agreements
|
|
3,239
|
|
|
3,366
|
|
|
10,200
|
|
|
8,714
|
|
||||
Long-term debt and finance lease liabilities
|
|
1,643
|
|
|
1,692
|
|
|
5,114
|
|
|
4,812
|
|
||||
Total interest expense
|
|
107,105
|
|
|
73,465
|
|
|
315,473
|
|
|
177,277
|
|
||||
Net interest income before provision for credit losses
|
|
369,807
|
|
|
348,720
|
|
|
1,099,594
|
|
|
1,017,092
|
|
||||
Provision for credit losses
|
|
38,284
|
|
|
10,542
|
|
|
80,108
|
|
|
46,296
|
|
||||
Net interest income after provision for credit losses
|
|
331,523
|
|
|
338,178
|
|
|
1,019,486
|
|
|
970,796
|
|
||||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
||||||||
Lending fees
|
|
14,846
|
|
|
15,367
|
|
|
45,884
|
|
|
44,072
|
|
||||
Deposit account fees
|
|
9,918
|
|
|
9,777
|
|
|
29,347
|
|
|
30,347
|
|
||||
Foreign exchange income
|
|
8,065
|
|
|
6,077
|
|
|
20,366
|
|
|
14,069
|
|
||||
Wealth management fees
|
|
4,841
|
|
|
3,535
|
|
|
12,453
|
|
|
10,989
|
|
||||
Interest rate contracts and other derivative income
|
|
8,423
|
|
|
4,595
|
|
|
22,037
|
|
|
17,855
|
|
||||
Net gains on sales of loans
|
|
2,037
|
|
|
1,145
|
|
|
2,967
|
|
|
5,081
|
|
||||
Net gains on sales of available-for-sale investment securities
|
|
58
|
|
|
35
|
|
|
3,066
|
|
|
2,374
|
|
||||
Net gains on sales of fixed assets
|
|
48
|
|
|
3,402
|
|
|
48
|
|
|
5,602
|
|
||||
Net gain on sale of business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,470
|
|
||||
Other income
|
|
3,238
|
|
|
2,569
|
|
|
10,196
|
|
|
7,355
|
|
||||
Total noninterest income
|
|
51,474
|
|
|
46,502
|
|
|
146,364
|
|
|
169,214
|
|
||||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
||||||||
Compensation and employee benefits
|
|
97,819
|
|
|
96,733
|
|
|
300,649
|
|
|
285,832
|
|
||||
Occupancy and equipment expense
|
|
17,912
|
|
|
17,292
|
|
|
52,592
|
|
|
50,879
|
|
||||
Deposit insurance premiums and regulatory assessments
|
|
3,550
|
|
|
6,013
|
|
|
9,557
|
|
|
18,118
|
|
||||
Legal expense
|
|
1,720
|
|
|
1,544
|
|
|
6,300
|
|
|
6,636
|
|
||||
Data processing
|
|
3,328
|
|
|
3,289
|
|
|
9,945
|
|
|
10,017
|
|
||||
Consulting expense
|
|
2,559
|
|
|
2,683
|
|
|
6,687
|
|
|
10,155
|
|
||||
Deposit related expense
|
|
3,584
|
|
|
2,600
|
|
|
10,426
|
|
|
8,201
|
|
||||
Computer software expense
|
|
6,556
|
|
|
5,478
|
|
|
18,845
|
|
|
16,081
|
|
||||
Other operating expense
|
|
22,769
|
|
|
23,394
|
|
|
67,737
|
|
|
61,780
|
|
||||
Amortization of tax credit and other investments
|
|
16,833
|
|
|
20,789
|
|
|
58,477
|
|
|
58,670
|
|
||||
Total noninterest expense
|
|
176,630
|
|
|
179,815
|
|
|
541,215
|
|
|
526,369
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
206,367
|
|
|
204,865
|
|
|
624,635
|
|
|
613,641
|
|
||||
INCOME TAX EXPENSE
|
|
34,951
|
|
|
33,563
|
|
|
138,815
|
|
|
82,958
|
|
||||
NET INCOME
|
|
$
|
171,416
|
|
|
$
|
171,302
|
|
|
$
|
485,820
|
|
|
$
|
530,683
|
|
EARNINGS PER SHARE (“EPS”)
|
|
|
|
|
|
|
|
|
||||||||
BASIC
|
|
$
|
1.18
|
|
|
$
|
1.18
|
|
|
$
|
3.34
|
|
|
$
|
3.66
|
|
DILUTED
|
|
$
|
1.17
|
|
|
$
|
1.17
|
|
|
$
|
3.33
|
|
|
$
|
3.63
|
|
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
||||||||
BASIC
|
|
145,559
|
|
|
144,921
|
|
|
145,455
|
|
|
144,829
|
|
||||
DILUTED
|
|
146,120
|
|
|
146,173
|
|
|
146,088
|
|
|
146,158
|
|
||||
|
|
||||||||||||||||
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
|
$
|
171,416
|
|
|
$
|
171,302
|
|
|
$
|
485,820
|
|
|
$
|
530,683
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Net changes in unrealized gains (losses) on available-for-sale investment securities
|
|
11,863
|
|
|
(13,608
|
)
|
|
62,901
|
|
|
(41,261
|
)
|
||||
Foreign currency translation adjustments
|
|
(2,858
|
)
|
|
(4,761
|
)
|
|
(5,694
|
)
|
|
(4,785
|
)
|
||||
Other comprehensive income (loss)
|
|
9,005
|
|
|
(18,369
|
)
|
|
57,207
|
|
|
(46,046
|
)
|
||||
COMPREHENSIVE INCOME
|
|
$
|
180,421
|
|
|
$
|
152,933
|
|
|
$
|
543,027
|
|
|
$
|
484,637
|
|
|
|
|||||||||||||||||||||||
|
|
Common Stock and
Additional Paid-in Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
AOCI,
Net of Tax |
|
Total
Stockholders’ Equity |
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
BALANCE, JULY 1, 2018
|
|
144,904,629
|
|
|
$
|
1,770,038
|
|
|
$
|
2,883,201
|
|
|
$
|
(467,488
|
)
|
|
$
|
(71,467
|
)
|
|
$
|
4,114,284
|
|
Net income
|
|
—
|
|
|
—
|
|
|
171,302
|
|
|
—
|
|
|
—
|
|
|
171,302
|
|
|||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,369
|
)
|
|
(18,369
|
)
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
24,802
|
|
|
11,685
|
|
|
—
|
|
|
(341
|
)
|
|
—
|
|
|
11,344
|
|
|||||
Cash dividends on common stock ($0.23 per share)
|
|
—
|
|
|
—
|
|
|
(33,711
|
)
|
|
—
|
|
|
—
|
|
|
(33,711
|
)
|
|||||
BALANCE, SEPTEMBER 30, 2018
|
|
144,929,431
|
|
|
$
|
1,781,723
|
|
|
$
|
3,020,792
|
|
|
$
|
(467,829
|
)
|
|
$
|
(89,836
|
)
|
|
$
|
4,244,850
|
|
BALANCE, JULY 1, 2019
|
|
145,546,569
|
|
|
$
|
1,809,062
|
|
|
$
|
3,414,901
|
|
|
$
|
(479,398
|
)
|
|
$
|
(9,972
|
)
|
|
$
|
4,734,593
|
|
Net income
|
|
—
|
|
|
—
|
|
|
171,416
|
|
|
—
|
|
|
—
|
|
|
171,416
|
|
|||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,005
|
|
|
9,005
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
21,143
|
|
|
8,204
|
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
8,143
|
|
|||||
Cash dividends on common stock ($0.275 per share)
|
|
—
|
|
|
—
|
|
|
(40,493
|
)
|
|
—
|
|
|
—
|
|
|
(40,493
|
)
|
|||||
BALANCE, SEPTEMBER 30, 2019
|
|
145,567,712
|
|
|
$
|
1,817,266
|
|
|
$
|
3,545,824
|
|
|
$
|
(479,459
|
)
|
|
$
|
(967
|
)
|
|
$
|
4,882,664
|
|
|
|
|||||||||||||||||||||||
|
|
Common Stock and
Additional Paid-in Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
AOCI,
Net of Tax |
|
Total
Stockholders’ Equity |
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
BALANCE, JANUARY 1, 2018
|
|
144,543,060
|
|
|
$
|
1,755,495
|
|
|
$
|
2,576,302
|
|
|
$
|
(452,327
|
)
|
|
$
|
(37,519
|
)
|
|
$
|
3,841,951
|
|
Cumulative effect of change in accounting principle related to marketable equity securities (1)
|
|
—
|
|
|
—
|
|
|
(545
|
)
|
|
—
|
|
|
385
|
|
|
(160
|
)
|
|||||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate (2)
|
|
—
|
|
|
—
|
|
|
6,656
|
|
|
—
|
|
|
(6,656
|
)
|
|
—
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
530,683
|
|
|
—
|
|
|
—
|
|
|
530,683
|
|
|||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46,046
|
)
|
|
(46,046
|
)
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
386,371
|
|
|
26,228
|
|
|
—
|
|
|
(15,502
|
)
|
|
—
|
|
|
10,726
|
|
|||||
Cash dividends on common stock ($0.63 per share)
|
|
—
|
|
|
—
|
|
|
(92,304
|
)
|
|
—
|
|
|
—
|
|
|
(92,304
|
)
|
|||||
BALANCE, SEPTEMBER 30, 2018
|
|
144,929,431
|
|
|
$
|
1,781,723
|
|
|
$
|
3,020,792
|
|
|
$
|
(467,829
|
)
|
|
$
|
(89,836
|
)
|
|
$
|
4,244,850
|
|
BALANCE, JANUARY 1, 2019
|
|
144,961,363
|
|
|
$
|
1,789,977
|
|
|
$
|
3,160,132
|
|
|
$
|
(467,961
|
)
|
|
$
|
(58,174
|
)
|
|
$
|
4,423,974
|
|
Cumulative effect of change in accounting principle related to leases (3)
|
|
—
|
|
|
—
|
|
|
14,668
|
|
|
—
|
|
|
—
|
|
|
14,668
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
485,820
|
|
|
—
|
|
|
—
|
|
|
485,820
|
|
|||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,207
|
|
|
57,207
|
|
|||||
Warrants exercised
|
|
180,226
|
|
|
1,711
|
|
|
—
|
|
|
2,732
|
|
|
—
|
|
|
4,443
|
|
|||||
Net activity of common stock pursuant to various stock compensation plans and agreements
|
|
426,123
|
|
|
25,578
|
|
|
—
|
|
|
(14,230
|
)
|
|
—
|
|
|
11,348
|
|
|||||
Cash dividends on common stock ($0.78 per share)
|
|
—
|
|
|
—
|
|
|
(114,796
|
)
|
|
—
|
|
|
—
|
|
|
(114,796
|
)
|
|||||
BALANCE, SEPTEMBER 30, 2019
|
|
145,567,712
|
|
|
$
|
1,817,266
|
|
|
$
|
3,545,824
|
|
|
$
|
(479,459
|
)
|
|
$
|
(967
|
)
|
|
$
|
4,882,664
|
|
|
(1)
|
Represents the impact of the adoption of Accounting Standards Update (“ASU”) 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of 2018.
|
(2)
|
Represents amounts reclassified from AOCI to retained earnings due to early adoption of ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2018.
|
(3)
|
Represents the impact of the adoption of ASU 2016-02, Leases (Topic 842) and subsequent related ASUs in the first quarter of 2019. Refer to Note 2 — Current Accounting Developments and Note 11 — Leases to the Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
||||||||
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
Net income
|
|
$
|
485,820
|
|
|
$
|
530,683
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
103,220
|
|
|
95,777
|
|
||
Accretion of discount and amortization of premiums, net
|
|
(12,917
|
)
|
|
(14,471
|
)
|
||
Stock compensation costs
|
|
23,012
|
|
|
24,201
|
|
||
Deferred income tax (benefit) expense
|
|
(2,434
|
)
|
|
1,371
|
|
||
Provision for credit losses
|
|
80,108
|
|
|
46,296
|
|
||
Net gains on sales of loans
|
|
(2,967
|
)
|
|
(5,081
|
)
|
||
Net gains on sales of available-for-sale investment securities
|
|
(3,066
|
)
|
|
(2,374
|
)
|
||
Net gains on sales of fixed assets
|
|
(48
|
)
|
|
(5,602
|
)
|
||
Net gain on sale of business
|
|
—
|
|
|
(31,470
|
)
|
||
Loans held-for-sale:
|
|
|
|
|
||||
Originations and purchases
|
|
(6,341
|
)
|
|
(17,642
|
)
|
||
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale
|
|
6,341
|
|
|
16,652
|
|
||
Proceeds from distributions received from equity method investees
|
|
3,012
|
|
|
2,670
|
|
||
Net change in accrued interest receivable and other assets
|
|
(363,187
|
)
|
|
(38,164
|
)
|
||
Net change in accrued expenses and other liabilities
|
|
77,693
|
|
|
92,036
|
|
||
Other net operating activities
|
|
773
|
|
|
(1,566
|
)
|
||
Total adjustments
|
|
(96,801
|
)
|
|
162,633
|
|
||
Net cash provided by operating activities
|
|
389,019
|
|
|
693,316
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Net (increase) decrease in:
|
|
|
|
|
|
|
||
Investments in qualified affordable housing partnerships, tax credit and other investments
|
|
(103,284
|
)
|
|
(72,983
|
)
|
||
Interest-bearing deposits with banks
|
|
204,474
|
|
|
(24,925
|
)
|
||
Resale agreements:
|
|
|
|
|
||||
Proceeds from paydowns and maturities
|
|
300,000
|
|
|
175,000
|
|
||
Purchases
|
|
(125,000
|
)
|
|
(160,000
|
)
|
||
Available-for-sale investment securities:
|
|
|
|
|
||||
Proceeds from sales
|
|
476,231
|
|
|
296,252
|
|
||
Proceeds from repayments, maturities and redemptions
|
|
283,974
|
|
|
404,070
|
|
||
Purchases
|
|
(1,219,300
|
)
|
|
(514,622
|
)
|
||
Loans held-for-investment:
|
|
|
|
|
||||
Proceeds from sales of loans originally classified as held-for-investment
|
|
224,662
|
|
|
363,209
|
|
||
Purchases
|
|
(395,502
|
)
|
|
(451,037
|
)
|
||
Other changes in loans held-for-investment, net
|
|
(1,509,235
|
)
|
|
(2,160,858
|
)
|
||
Premises and equipment:
|
|
|
|
|
|
|
||
Purchases
|
|
(8,504
|
)
|
|
(9,418
|
)
|
||
Payment on sale of business, net of cash transferred
|
|
—
|
|
|
(503,687
|
)
|
||
Proceeds from sales of other real estate owned (“OREO”)
|
|
—
|
|
|
3,602
|
|
||
Proceeds from distributions received from equity method investees
|
|
4,563
|
|
|
4,264
|
|
||
Other net investing activities
|
|
(1,897
|
)
|
|
(3,002
|
)
|
||
Net cash used in investing activities
|
|
(1,868,818
|
)
|
|
(2,654,135
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Net increase in deposits
|
|
1,252,237
|
|
|
2,092,022
|
|
||
Net (decrease) increase in short-term borrowings
|
|
(9,035
|
)
|
|
63,131
|
|
||
FHLB advances:
|
|
|
|
|
||||
Proceeds
|
|
1,500,000
|
|
|
—
|
|
||
Repayment
|
|
(1,082,000
|
)
|
|
—
|
|
||
Repayment of long-term debt and finance lease liabilities
|
|
(658
|
)
|
|
(15,000
|
)
|
||
Common stock:
|
|
|
|
|
||||
Proceeds from issuance pursuant to various stock compensation plans and agreements
|
|
1,895
|
|
|
1,328
|
|
||
Stock tendered for payment of withholding taxes
|
|
(14,230
|
)
|
|
(15,502
|
)
|
||
Cash dividends paid
|
|
(114,986
|
)
|
|
(92,632
|
)
|
||
Net cash provided by financing activities
|
|
1,533,223
|
|
|
2,033,347
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(12,520
|
)
|
|
(28,333
|
)
|
||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
40,904
|
|
|
44,195
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
3,001,377
|
|
|
2,174,592
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
3,042,281
|
|
|
$
|
2,218,787
|
|
|
|
||||||||
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
313,793
|
|
|
$
|
166,422
|
|
Income taxes, net
|
|
$
|
116,074
|
|
|
$
|
71,064
|
|
Non-cash investing and financing activities:
|
|
|
|
|
||||
Loans transferred from held-for-investment to held-for-sale
|
|
$
|
222,434
|
|
|
$
|
363,591
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
—
|
|
|
$
|
2,306
|
|
Loans transferred to OREO
|
|
$
|
2,013
|
|
|
$
|
—
|
|
|
•
|
Level 1 — Valuation is based on quoted prices for identical instruments traded in active markets.
|
•
|
Level 2 — Valuation is based on quoted prices for similar instruments traded in active markets; quoted prices for identical or similar instruments traded in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data.
|
•
|
Level 3 — Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of September 30, 2019 |
||||||||||||||
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
Fair Value
|
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
426,113
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
426,113
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
—
|
|
|
691,368
|
|
|
—
|
|
|
691,368
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
549,793
|
|
|
—
|
|
|
549,793
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
925,387
|
|
|
—
|
|
|
925,387
|
|
||||
Municipal securities
|
|
—
|
|
|
78,159
|
|
|
—
|
|
|
78,159
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
70,243
|
|
|
—
|
|
|
70,243
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
31,495
|
|
|
—
|
|
|
31,495
|
|
||||
Corporate debt securities
|
|
—
|
|
|
11,022
|
|
|
—
|
|
|
11,022
|
|
||||
Foreign bonds
|
|
—
|
|
|
453,179
|
|
|
—
|
|
|
453,179
|
|
||||
Asset-backed securities
|
|
—
|
|
|
47,275
|
|
|
—
|
|
|
47,275
|
|
||||
Total available-for-sale investment securities
|
|
$
|
426,113
|
|
|
$
|
2,857,921
|
|
|
$
|
—
|
|
|
$
|
3,284,034
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investments in tax credit and other investments:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities (1)
|
|
$
|
21,737
|
|
|
$
|
9,987
|
|
|
$
|
—
|
|
|
$
|
31,724
|
|
Total investments in tax credit and other investments
|
|
$
|
21,737
|
|
|
$
|
9,987
|
|
|
$
|
—
|
|
|
$
|
31,724
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
264,603
|
|
|
$
|
—
|
|
|
$
|
264,603
|
|
Foreign exchange contracts
|
|
—
|
|
|
59,512
|
|
|
—
|
|
|
59,512
|
|
||||
Credit contracts
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Equity contracts
|
|
—
|
|
|
1,140
|
|
|
402
|
|
|
1,542
|
|
||||
Commodity contracts
|
|
—
|
|
|
32,978
|
|
|
—
|
|
|
32,978
|
|
||||
Gross derivative assets
|
|
$
|
—
|
|
|
$
|
358,237
|
|
|
$
|
402
|
|
|
$
|
358,639
|
|
Netting adjustments (2)
|
|
$
|
—
|
|
|
$
|
(69,328
|
)
|
|
$
|
—
|
|
|
$
|
(69,328
|
)
|
Net derivative assets
|
|
$
|
—
|
|
|
$
|
288,909
|
|
|
$
|
402
|
|
|
$
|
289,311
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
170,917
|
|
|
$
|
—
|
|
|
$
|
170,917
|
|
Foreign exchange contracts
|
|
—
|
|
|
50,828
|
|
|
—
|
|
|
50,828
|
|
||||
Credit contracts
|
|
—
|
|
|
122
|
|
|
—
|
|
|
122
|
|
||||
Commodity contracts
|
|
—
|
|
|
41,867
|
|
|
—
|
|
|
41,867
|
|
||||
Gross derivative liabilities
|
|
$
|
—
|
|
|
$
|
263,734
|
|
|
$
|
—
|
|
|
$
|
263,734
|
|
Netting adjustments (2)
|
|
$
|
—
|
|
|
$
|
(110,720
|
)
|
|
$
|
—
|
|
|
$
|
(110,720
|
)
|
Net derivative liabilities
|
|
$
|
—
|
|
|
$
|
153,014
|
|
|
$
|
—
|
|
|
$
|
153,014
|
|
|
(1)
|
Equity securities were comprised of mutual funds with readily determinable fair values.
|
(2)
|
Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 7 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 2018 |
||||||||||||||
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
Fair Value
|
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
564,815
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
564,815
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
—
|
|
|
217,173
|
|
|
—
|
|
|
217,173
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
408,603
|
|
|
—
|
|
|
408,603
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
946,693
|
|
|
—
|
|
|
946,693
|
|
||||
Municipal securities
|
|
—
|
|
|
82,020
|
|
|
—
|
|
|
82,020
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
26,052
|
|
|
—
|
|
|
26,052
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
9,931
|
|
|
—
|
|
|
9,931
|
|
||||
Corporate debt securities
|
|
—
|
|
|
10,869
|
|
|
—
|
|
|
10,869
|
|
||||
Foreign bonds
|
|
—
|
|
|
463,048
|
|
|
—
|
|
|
463,048
|
|
||||
Asset-backed securities
|
|
—
|
|
|
12,643
|
|
|
—
|
|
|
12,643
|
|
||||
Total available-for-sale investment securities
|
|
$
|
564,815
|
|
|
$
|
2,177,032
|
|
|
$
|
—
|
|
|
$
|
2,741,847
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment in tax credit and other investments:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities (1)
|
|
$
|
20,678
|
|
|
$
|
10,531
|
|
|
$
|
—
|
|
|
$
|
31,209
|
|
Total investments in tax credit and other investments
|
|
$
|
20,678
|
|
|
$
|
10,531
|
|
|
$
|
—
|
|
|
$
|
31,209
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
69,818
|
|
|
$
|
—
|
|
|
$
|
69,818
|
|
Foreign exchange contracts
|
|
—
|
|
|
21,624
|
|
|
—
|
|
|
21,624
|
|
||||
Credit contracts
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Equity contracts
|
|
—
|
|
|
1,278
|
|
|
673
|
|
|
1,951
|
|
||||
Commodity contracts
|
|
—
|
|
|
14,422
|
|
|
—
|
|
|
14,422
|
|
||||
Gross derivative assets
|
|
$
|
—
|
|
|
$
|
107,143
|
|
|
$
|
673
|
|
|
$
|
107,816
|
|
Netting adjustments (2)
|
|
$
|
—
|
|
|
$
|
(45,146
|
)
|
|
$
|
—
|
|
|
$
|
(45,146
|
)
|
Net derivative assets
|
|
$
|
—
|
|
|
$
|
61,997
|
|
|
$
|
673
|
|
|
$
|
62,670
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
$
|
—
|
|
|
$
|
75,133
|
|
|
$
|
—
|
|
|
$
|
75,133
|
|
Foreign exchange contracts
|
|
—
|
|
|
19,940
|
|
|
—
|
|
|
19,940
|
|
||||
Credit contracts
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
||||
Commodity contracts
|
|
—
|
|
|
23,068
|
|
|
—
|
|
|
23,068
|
|
||||
Gross derivative liabilities
|
|
$
|
—
|
|
|
$
|
118,305
|
|
|
$
|
—
|
|
|
$
|
118,305
|
|
Netting adjustments (2)
|
|
$
|
—
|
|
|
$
|
(38,402
|
)
|
|
$
|
—
|
|
|
$
|
(38,402
|
)
|
Net derivative liabilities
|
|
$
|
—
|
|
|
$
|
79,903
|
|
|
$
|
—
|
|
|
$
|
79,903
|
|
|
(1)
|
Equity securities were comprised of mutual funds with readily determinable fair values.
|
(2)
|
Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 7 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Equity warrants
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
392
|
|
|
$
|
648
|
|
|
$
|
673
|
|
|
$
|
679
|
|
Total gains (losses) included in earnings (1)
|
|
10
|
|
|
(7
|
)
|
|
548
|
|
|
161
|
|
||||
Issuances
|
|
—
|
|
|
31
|
|
|
28
|
|
|
65
|
|
||||
Settlements
|
|
—
|
|
|
—
|
|
|
(847
|
)
|
|
(233
|
)
|
||||
Ending balance
|
|
$
|
402
|
|
|
$
|
672
|
|
|
$
|
402
|
|
|
$
|
672
|
|
|
(1)
|
Includes unrealized gains (losses) of $10 thousand and $(7) thousand for the three months ended September 30, 2019 and 2018, respectively, and $(225) thousand and $224 thousand for the nine months ended September 30, 2019 and 2018, respectively. The realized/unrealized gains (losses) of equity warrants are included in Lending fees on the Consolidated Statement of Income.
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements
(Level 3)
|
|
Valuation
Technique
|
|
Unobservable
Inputs
|
|
Range of Inputs
|
|
Weighted-
Average (1)
|
||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||
Equity warrants
|
|
$
|
402
|
|
|
Black-Scholes option pricing model
|
|
Equity volatility
|
|
45% — 56%
|
|
54%
|
|
|
|
|
|
|
Liquidity discount
|
|
47%
|
|
47%
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
||
Equity warrants
|
|
$
|
673
|
|
|
Black-Scholes option pricing model
|
|
Equity volatility
|
|
49% — 52%
|
|
51%
|
|
|
|
|
|
|
Liquidity discount
|
|
47%
|
|
47%
|
||
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Weighted-average is calculated based on fair value of equity warrants as of September 30, 2019 and December 31, 2018.
|
•
|
Discounted cash flows valuation techniques that consist of developing an expected stream of cash flows over the life of the loans and then valuing the loans at the present value by discounting the expected cash flows at a designated discount rate.
|
•
|
A specific reserve is established for an impaired loan based on the fair value of the underlying collateral, which may take the form of real estate, inventory, equipment, contracts or guarantees. The fair value of the underlying collateral is generally based on third-party appraisals, or an internal valuation if a third-party appraisal is not required by regulations, which utilize one or more valuation techniques such as income, market and/or cost approaches.
|
•
|
The current fair value of the tax credit investment based upon the expected future cash flows is less than the carrying amount;
|
•
|
Change in the economic, market or technological environment that could adversely affect the investee’s operations; and
|
•
|
Other factors that raise doubt about the investee’s ability to continue as a going concern, such as negative cash flows from operations and the continuing prospects of the underlying operations of the investment.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets Measured at Fair Value on a Nonrecurring Basis
as of September 30, 2019 |
||||||||||||||
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair Value
Measurements |
|||||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial (“C&I”)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,087
|
|
|
$
|
43,087
|
|
Commercial real estate (“CRE”)
|
|
—
|
|
|
—
|
|
|
764
|
|
|
764
|
|
||||
Total non-PCI impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,851
|
|
|
$
|
43,851
|
|
OREO (1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
590
|
|
|
$
|
590
|
|
Investments in tax credit and other investments, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
830
|
|
|
$
|
830
|
|
|
(1)
|
Amounts are included in Other assets on the Consolidated Balance Sheet and represent the carrying value of OREO properties that were written down subsequent to their initial classification as OREO.
|
|
||||||||||||||||
($ in thousands)
|
|
Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 2018 |
||||||||||||||
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair Value
Measurements |
|||||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,873
|
|
|
$
|
26,873
|
|
CRE
|
|
—
|
|
|
—
|
|
|
3,434
|
|
|
3,434
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
—
|
|
|
—
|
|
|
2,551
|
|
|
2,551
|
|
||||
Total non-PCI impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,858
|
|
|
$
|
32,858
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Non-PCI impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
(20,484
|
)
|
|
$
|
(8,508
|
)
|
|
$
|
(43,109
|
)
|
|
$
|
(7,204
|
)
|
CRE
|
|
2
|
|
|
50
|
|
|
6
|
|
|
61
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||
Home equity lines of credit (“HELOCs”)
|
|
—
|
|
|
(188
|
)
|
|
—
|
|
|
(262
|
)
|
||||
Total non-PCI impaired loans
|
|
$
|
(20,482
|
)
|
|
$
|
(8,646
|
)
|
|
$
|
(43,103
|
)
|
|
$
|
(7,390
|
)
|
OREO (1)
|
|
$
|
(1,020
|
)
|
|
$
|
—
|
|
|
$
|
(1,023
|
)
|
|
$
|
—
|
|
Investments in tax credit and other investments, net
|
|
$
|
(1,703
|
)
|
|
$
|
—
|
|
|
$
|
(11,573
|
)
|
|
$
|
—
|
|
|
(1)
|
Includes losses recorded within the first 90 days after transferring a loan to OREO.
|
|
||||||||||||
($ in thousands)
|
|
Fair Value
Measurements (Level 3) |
|
Valuation
Technique(s) |
|
Unobservable
Input(s)
|
|
Range of
Input(s)
|
|
Weighted-
Average (1)
|
||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||
Non-PCI impaired loans
|
|
$
|
4,407
|
|
|
Discounted cash flows
|
|
Discount
|
|
4% — 12%
|
|
7%
|
|
|
$
|
14,094
|
|
|
Fair value of collateral
|
|
Discount
|
|
20% — 50%
|
|
34%
|
|
|
$
|
25,350
|
|
|
Fair value of collateral
|
|
Contract value
|
|
NM
|
|
NM
|
OREO
|
|
$
|
590
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8%
|
Investments in tax credit and other investments, net
|
|
$
|
830
|
|
|
Individual analysis of each investment
|
|
Expected future tax
benefits and
distributions
|
|
NM
|
|
NM
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||
Non-PCI impaired loans
|
|
$
|
16,921
|
|
|
Discounted cash flows
|
|
Discount
|
|
4% — 7%
|
|
6%
|
|
|
$
|
2,751
|
|
|
Fair value of collateral
|
|
Discount
|
|
15% — 50%
|
|
21%
|
|
|
$
|
11,499
|
|
|
Fair value of collateral
|
|
Contract value
|
|
NM
|
|
NM
|
|
|
$
|
1,687
|
|
|
Fair value of property
|
|
Selling cost
|
|
8%
|
|
8%
|
|
(1)
|
Weighted-average is based on the relative fair value of the respective assets as of September 30, 2019 and December 31, 2018.
|
|
||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
3,042,281
|
|
|
$
|
3,042,281
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,042,281
|
|
Interest-bearing deposits with banks
|
|
$
|
160,423
|
|
|
$
|
—
|
|
|
$
|
160,423
|
|
|
$
|
—
|
|
|
$
|
160,423
|
|
Resale agreements (1)
|
|
$
|
860,000
|
|
|
$
|
—
|
|
|
$
|
857,935
|
|
|
$
|
—
|
|
|
$
|
857,935
|
|
Restricted equity securities, at cost
|
|
$
|
78,334
|
|
|
$
|
—
|
|
|
$
|
78,334
|
|
|
$
|
—
|
|
|
$
|
78,334
|
|
Loans held-for-sale
|
|
$
|
294
|
|
|
$
|
—
|
|
|
$
|
294
|
|
|
$
|
—
|
|
|
$
|
294
|
|
Loans held-for-investment, net
|
|
$
|
33,679,400
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,998,189
|
|
|
$
|
33,998,189
|
|
Mortgage servicing rights
|
|
$
|
6,380
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,412
|
|
|
$
|
8,412
|
|
Accrued interest receivable
|
|
$
|
143,804
|
|
|
$
|
—
|
|
|
$
|
143,804
|
|
|
$
|
—
|
|
|
$
|
143,804
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, checking, savings and money market deposits
|
|
$
|
26,139,319
|
|
|
$
|
—
|
|
|
$
|
26,139,319
|
|
|
$
|
—
|
|
|
$
|
26,139,319
|
|
Time deposits
|
|
$
|
10,520,207
|
|
|
$
|
—
|
|
|
$
|
10,519,103
|
|
|
$
|
—
|
|
|
$
|
10,519,103
|
|
Short-term borrowings
|
|
$
|
47,689
|
|
|
$
|
—
|
|
|
$
|
47,689
|
|
|
$
|
—
|
|
|
$
|
47,689
|
|
FHLB advances
|
|
$
|
745,494
|
|
|
$
|
—
|
|
|
$
|
754,902
|
|
|
$
|
—
|
|
|
$
|
754,902
|
|
Repurchase agreements (1)
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
85,028
|
|
|
$
|
—
|
|
|
$
|
85,028
|
|
Long-term debt
|
|
$
|
147,033
|
|
|
$
|
—
|
|
|
$
|
145,923
|
|
|
$
|
—
|
|
|
$
|
145,923
|
|
Accrued interest payable
|
|
$
|
24,573
|
|
|
$
|
—
|
|
|
$
|
24,573
|
|
|
$
|
—
|
|
|
$
|
24,573
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Carrying
Amount |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value |
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
3,001,377
|
|
|
$
|
3,001,377
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,001,377
|
|
Interest-bearing deposits with banks
|
|
$
|
371,000
|
|
|
$
|
—
|
|
|
$
|
371,000
|
|
|
$
|
—
|
|
|
$
|
371,000
|
|
Resale agreements (1)
|
|
$
|
1,035,000
|
|
|
$
|
—
|
|
|
$
|
1,016,724
|
|
|
$
|
—
|
|
|
$
|
1,016,724
|
|
Restricted equity securities, at cost
|
|
$
|
74,069
|
|
|
$
|
—
|
|
|
$
|
74,069
|
|
|
$
|
—
|
|
|
$
|
74,069
|
|
Loans held-for-sale
|
|
$
|
275
|
|
|
$
|
—
|
|
|
$
|
275
|
|
|
$
|
—
|
|
|
$
|
275
|
|
Loans held-for-investment, net
|
|
$
|
32,073,867
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,273,157
|
|
|
$
|
32,273,157
|
|
Mortgage servicing rights
|
|
$
|
7,836
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,427
|
|
|
$
|
11,427
|
|
Accrued interest receivable
|
|
$
|
146,262
|
|
|
$
|
—
|
|
|
$
|
146,262
|
|
|
$
|
—
|
|
|
$
|
146,262
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, checking, savings and money market deposits
|
|
$
|
26,370,562
|
|
|
$
|
—
|
|
|
$
|
26,370,562
|
|
|
$
|
—
|
|
|
$
|
26,370,562
|
|
Time deposits
|
|
$
|
9,069,066
|
|
|
$
|
—
|
|
|
$
|
9,084,597
|
|
|
$
|
—
|
|
|
$
|
9,084,597
|
|
Short-term borrowings
|
|
$
|
57,638
|
|
|
$
|
—
|
|
|
$
|
57,638
|
|
|
$
|
—
|
|
|
$
|
57,638
|
|
FHLB advances
|
|
$
|
326,172
|
|
|
$
|
—
|
|
|
$
|
334,793
|
|
|
$
|
—
|
|
|
$
|
334,793
|
|
Repurchase agreements (1)
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
87,668
|
|
|
$
|
—
|
|
|
$
|
87,668
|
|
Long-term debt
|
|
$
|
146,835
|
|
|
$
|
—
|
|
|
$
|
152,556
|
|
|
$
|
—
|
|
|
$
|
152,556
|
|
Accrued interest payable
|
|
$
|
22,893
|
|
|
$
|
—
|
|
|
$
|
22,893
|
|
|
$
|
—
|
|
|
$
|
22,893
|
|
|
(1)
|
Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. As of both September 30, 2019 and December 31, 2018, $400.0 million out of $450.0 million of gross repurchase agreements were eligible for netting against gross resale agreements.
|
|
|
|
||
($ in thousands)
|
|
Repurchase
Agreements
|
||
Remainder of 2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
—
|
|
|
2022
|
|
150,000
|
|
|
2023
|
|
300,000
|
|
|
Thereafter
|
|
—
|
|
|
Total
|
|
$
|
450,000
|
|
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
Gross
Amounts
of Recognized Assets |
|
Gross Amounts
Offset on the Consolidated Balance Sheet |
|
Net Amounts of
Assets Presented on the Consolidated
Balance Sheet
|
|
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
|
Net
Amount
|
||||||||||
|
|
|
|
Collateral Received
|
|
|||||||||||||||
Resale agreements
|
|
$
|
1,260,000
|
|
|
$
|
(400,000
|
)
|
|
$
|
860,000
|
|
|
$
|
(859,396
|
)
|
(1)
|
$
|
604
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
Gross
Amounts
of Recognized Liabilities |
|
Gross Amounts
Offset on the Consolidated Balance Sheet |
|
Net Amounts of
Liabilities Presented
on the Consolidated
Balance Sheet
|
|
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
|
Net
Amount
|
||||||||||
|
|
|
|
Collateral Pledged
|
|
|||||||||||||||
Repurchase agreements
|
|
$
|
450,000
|
|
|
$
|
(400,000
|
)
|
|
$
|
50,000
|
|
|
$
|
(50,000
|
)
|
(2)
|
$
|
—
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
Gross
Amounts
of Recognized Assets |
|
Gross Amounts
Offset on the Consolidated Balance Sheet |
|
Net Amounts of
Assets Presented on the Consolidated
Balance Sheet
|
|
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
|
Net
Amount
|
||||||||||
|
|
|
|
Collateral Received
|
|
|||||||||||||||
Resale agreements
|
|
$
|
1,435,000
|
|
|
$
|
(400,000
|
)
|
|
$
|
1,035,000
|
|
|
$
|
(1,025,066
|
)
|
(1)
|
$
|
9,934
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
Gross
Amounts
of Recognized Liabilities |
|
Gross Amounts
Offset on the Consolidated Balance Sheet |
|
Net Amounts of
Liabilities Presented on the Consolidated
Balance Sheet
|
|
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
|
Net
Amount
|
||||||||||
|
|
|
|
Collateral Pledged
|
|
|||||||||||||||
Repurchase agreements
|
|
$
|
450,000
|
|
|
$
|
(400,000
|
)
|
|
$
|
50,000
|
|
|
$
|
(50,000
|
)
|
(2)
|
$
|
—
|
|
|
(1)
|
Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.
|
(2)
|
Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability due to each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.
|
|
||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
427,535
|
|
|
$
|
—
|
|
|
$
|
(1,422
|
)
|
|
$
|
426,113
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
688,529
|
|
|
2,924
|
|
|
(85
|
)
|
|
691,368
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
539,957
|
|
|
12,500
|
|
|
(2,664
|
)
|
|
549,793
|
|
||||
Residential mortgage-backed securities
|
|
914,379
|
|
|
11,914
|
|
|
(906
|
)
|
|
925,387
|
|
||||
Municipal securities
|
|
76,948
|
|
|
1,218
|
|
|
(7
|
)
|
|
78,159
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
|
67,518
|
|
|
2,731
|
|
|
(6
|
)
|
|
70,243
|
|
||||
Residential mortgage-backed securities
|
|
31,209
|
|
|
425
|
|
|
(139
|
)
|
|
31,495
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
—
|
|
|
(228
|
)
|
|
11,022
|
|
||||
Foreign bonds
|
|
454,431
|
|
|
607
|
|
|
(1,859
|
)
|
|
453,179
|
|
||||
Asset-backed securities
|
|
48,028
|
|
|
—
|
|
|
(753
|
)
|
|
47,275
|
|
||||
Total available-for-sale investment securities
|
|
$
|
3,259,784
|
|
|
$
|
32,319
|
|
|
$
|
(8,069
|
)
|
|
$
|
3,284,034
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
577,561
|
|
|
$
|
153
|
|
|
$
|
(12,899
|
)
|
|
$
|
564,815
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
219,485
|
|
|
382
|
|
|
(2,694
|
)
|
|
217,173
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial mortgage-backed securities
|
|
420,486
|
|
|
811
|
|
|
(12,694
|
)
|
|
408,603
|
|
||||
Residential mortgage-backed securities
|
|
957,219
|
|
|
4,026
|
|
|
(14,552
|
)
|
|
946,693
|
|
||||
Municipal securities
|
|
82,965
|
|
|
87
|
|
|
(1,032
|
)
|
|
82,020
|
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial mortgage-backed securities
|
|
25,826
|
|
|
226
|
|
|
—
|
|
|
26,052
|
|
||||
Residential mortgage-backed securities
|
|
10,109
|
|
|
7
|
|
|
(185
|
)
|
|
9,931
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
—
|
|
|
(381
|
)
|
|
10,869
|
|
||||
Foreign bonds
|
|
489,378
|
|
|
—
|
|
|
(26,330
|
)
|
|
463,048
|
|
||||
Asset-backed securities
|
|
12,621
|
|
|
22
|
|
|
—
|
|
|
12,643
|
|
||||
Total available-for-sale investment securities
|
|
$
|
2,806,900
|
|
|
$
|
5,714
|
|
|
$
|
(70,767
|
)
|
|
$
|
2,741,847
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
199,711
|
|
|
$
|
(76
|
)
|
|
$
|
226,402
|
|
|
$
|
(1,346
|
)
|
|
$
|
426,113
|
|
|
$
|
(1,422
|
)
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
354,916
|
|
|
(85
|
)
|
|
—
|
|
|
—
|
|
|
354,916
|
|
|
(85
|
)
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
60,336
|
|
|
(573
|
)
|
|
116,139
|
|
|
(2,091
|
)
|
|
176,475
|
|
|
(2,664
|
)
|
||||||
Residential mortgage-backed securities
|
|
87,356
|
|
|
(553
|
)
|
|
43,403
|
|
|
(353
|
)
|
|
130,759
|
|
|
(906
|
)
|
||||||
Municipal securities
|
|
979
|
|
|
(1
|
)
|
|
5,046
|
|
|
(6
|
)
|
|
6,025
|
|
|
(7
|
)
|
||||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
7,914
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
7,914
|
|
|
(6
|
)
|
||||||
Residential mortgage-backed securities
|
|
11,145
|
|
|
(139
|
)
|
|
—
|
|
|
—
|
|
|
11,145
|
|
|
(139
|
)
|
||||||
Corporate debt securities
|
|
1,247
|
|
|
(3
|
)
|
|
9,775
|
|
|
(225
|
)
|
|
11,022
|
|
|
(228
|
)
|
||||||
Foreign bonds
|
|
14,338
|
|
|
(101
|
)
|
|
123,243
|
|
|
(1,758
|
)
|
|
137,581
|
|
|
(1,859
|
)
|
||||||
Asset-backed securities
|
|
47,275
|
|
|
(753
|
)
|
|
—
|
|
|
—
|
|
|
47,275
|
|
|
(753
|
)
|
||||||
Total available-for-sale investment securities
|
|
$
|
785,217
|
|
|
$
|
(2,290
|
)
|
|
$
|
524,008
|
|
|
$
|
(5,779
|
)
|
|
$
|
1,309,225
|
|
|
$
|
(8,069
|
)
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
516,520
|
|
|
$
|
(12,899
|
)
|
|
$
|
516,520
|
|
|
$
|
(12,899
|
)
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
22,755
|
|
|
(238
|
)
|
|
159,814
|
|
|
(2,456
|
)
|
|
182,569
|
|
|
(2,694
|
)
|
||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
|
26,886
|
|
|
(245
|
)
|
|
274,666
|
|
|
(12,449
|
)
|
|
301,552
|
|
|
(12,694
|
)
|
||||||
Residential mortgage-backed securities
|
|
75,675
|
|
|
(491
|
)
|
|
653,660
|
|
|
(14,061
|
)
|
|
729,335
|
|
|
(14,552
|
)
|
||||||
Municipal securities
|
|
9,458
|
|
|
(104
|
)
|
|
30,295
|
|
|
(928
|
)
|
|
39,753
|
|
|
(1,032
|
)
|
||||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities
|
|
3,067
|
|
|
(19
|
)
|
|
3,949
|
|
|
(166
|
)
|
|
7,016
|
|
|
(185
|
)
|
||||||
Corporate debt securities
|
|
10,869
|
|
|
(381
|
)
|
|
—
|
|
|
—
|
|
|
10,869
|
|
|
(381
|
)
|
||||||
Foreign bonds
|
|
14,418
|
|
|
(40
|
)
|
|
448,630
|
|
|
(26,290
|
)
|
|
463,048
|
|
|
(26,330
|
)
|
||||||
Total available-for-sale investment securities
|
|
$
|
163,128
|
|
|
$
|
(1,518
|
)
|
|
$
|
2,087,534
|
|
|
$
|
(69,249
|
)
|
|
$
|
2,250,662
|
|
|
$
|
(70,767
|
)
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Proceeds from sales
|
|
$
|
101,129
|
|
|
$
|
39,377
|
|
|
$
|
476,231
|
|
|
$
|
296,252
|
|
Gross realized gains
|
|
$
|
58
|
|
|
$
|
35
|
|
|
$
|
3,066
|
|
|
$
|
2,374
|
|
Related tax expense
|
|
$
|
17
|
|
|
$
|
11
|
|
|
$
|
906
|
|
|
$
|
701
|
|
|
|
||||||||
($ in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due within one year
|
|
$
|
1,100,414
|
|
|
$
|
1,099,412
|
|
Due after one year through five years
|
|
430,577
|
|
|
429,725
|
|
||
Due after five years through ten years
|
|
185,633
|
|
|
189,981
|
|
||
Due after ten years
|
|
1,543,160
|
|
|
1,564,916
|
|
||
Total available-for-sale investment securities
|
|
$
|
3,259,784
|
|
|
$
|
3,284,034
|
|
|
|
||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
FRB stock
|
|
$
|
58,084
|
|
|
$
|
56,819
|
|
FHLB stock
|
|
20,250
|
|
|
17,250
|
|
||
Total restricted equity securities
|
|
$
|
78,334
|
|
|
$
|
74,069
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
Notional
Amount
|
|
Fair Value
|
|||||||||||||||||
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
$
|
31,026
|
|
|
$
|
—
|
|
|
$
|
2,804
|
|
|
$
|
35,811
|
|
|
$
|
—
|
|
|
$
|
5,866
|
|
Net investment hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
84,831
|
|
|
—
|
|
|
431
|
|
|
90,245
|
|
|
—
|
|
|
611
|
|
||||||
Total derivatives designated as hedging instruments
|
|
$
|
115,857
|
|
|
$
|
—
|
|
|
$
|
3,235
|
|
|
$
|
126,056
|
|
|
$
|
—
|
|
|
$
|
6,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
$
|
14,139,233
|
|
|
$
|
264,603
|
|
|
$
|
168,113
|
|
|
$
|
11,695,499
|
|
|
$
|
69,818
|
|
|
$
|
69,267
|
|
Foreign exchange contracts
|
|
4,638,136
|
|
|
59,512
|
|
|
50,397
|
|
|
3,407,522
|
|
|
21,624
|
|
|
19,329
|
|
||||||
Credit contracts
|
|
211,343
|
|
|
4
|
|
|
122
|
|
|
119,320
|
|
|
1
|
|
|
164
|
|
||||||
Equity contracts
|
|
—
|
|
(1)
|
1,542
|
|
|
—
|
|
|
—
|
|
(1)
|
1,951
|
|
|
—
|
|
||||||
Commodity contracts
|
|
—
|
|
(2)
|
32,978
|
|
|
41,867
|
|
|
—
|
|
(2)
|
14,422
|
|
|
23,068
|
|
||||||
Total derivatives not designated as hedging instruments
|
|
$
|
18,988,712
|
|
|
$
|
358,639
|
|
|
$
|
260,499
|
|
|
$
|
15,222,341
|
|
|
$
|
107,816
|
|
|
$
|
111,828
|
|
Gross derivative assets/liabilities
|
|
|
|
$
|
358,639
|
|
|
$
|
263,734
|
|
|
|
|
$
|
107,816
|
|
|
$
|
118,305
|
|
||||
Less: Master netting agreements
|
|
|
|
(62,741
|
)
|
|
(62,741
|
)
|
|
|
|
(31,569
|
)
|
|
(31,569
|
)
|
||||||||
Less: Cash collateral received/paid
|
|
|
|
(6,587
|
)
|
|
(47,979
|
)
|
|
|
|
(13,577
|
)
|
|
(6,833
|
)
|
||||||||
Net derivative assets/liabilities
|
|
|
|
$
|
289,311
|
|
|
$
|
153,014
|
|
|
|
|
$
|
62,670
|
|
|
$
|
79,903
|
|
||||
|
(1)
|
The Company held equity contracts in three public companies and 17 private companies as of September 30, 2019. In comparison, the Company held equity contracts in four public companies and 18 private companies as of December 31, 2018.
|
(2)
|
The notional amount of the Company’s commodity contracts entered with its customers totaled 7,166 thousand barrels of crude oil and 33,089 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of September 30, 2019. In comparison, the notional amount of the Company’s commodity contracts entered with its customers totaled 2,507 thousand barrels of crude oil and 14,722 thousand MMBTUs of natural gas as of December 31, 2018. The Company simultaneously entered into the offsetting commodity contracts with mirrored terms with third-party financial institutions.
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Gains (losses) recorded in interest expense:
|
|
|
|
|
|
|
|
|
||||||||
Recognized on interest rate swaps
|
|
$
|
202
|
|
|
$
|
(241
|
)
|
|
$
|
3,056
|
|
|
$
|
(2,089
|
)
|
Recognized on certificates of deposit
|
|
$
|
(37
|
)
|
|
$
|
520
|
|
|
$
|
(2,732
|
)
|
|
$
|
2,239
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Carrying Value (1)
|
|
Cumulative Fair
Value Adjustment (2)
|
||||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2019
|
|
December 31, 2018
|
|||||||||
Certificates of deposit
|
|
$
|
(29,276
|
)
|
|
$
|
(26,877
|
)
|
|
$
|
1,408
|
|
|
$
|
4,141
|
|
|
(1)
|
Represents the full carrying amount of the hedged certificates of deposit.
|
(2)
|
For liabilities, decrease to carrying value.
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Gains recognized in AOCI
|
|
$
|
2,954
|
|
|
$
|
2,960
|
|
|
$
|
351
|
|
|
$
|
6,745
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount
|
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Written options
|
|
$
|
1,009,823
|
|
|
$
|
—
|
|
|
$
|
59
|
|
|
Purchased options
|
|
$
|
1,009,823
|
|
|
$
|
61
|
|
|
$
|
—
|
|
Sold collars and corridors
|
|
495,511
|
|
|
3,592
|
|
|
6
|
|
|
Collars and corridors
|
|
495,511
|
|
|
6
|
|
|
3,641
|
|
||||||
Swaps
|
|
5,560,947
|
|
|
260,251
|
|
|
975
|
|
|
Swaps
|
|
5,567,618
|
|
|
693
|
|
|
163,432
|
|
||||||
Total
|
|
$
|
7,066,281
|
|
|
$
|
263,843
|
|
|
$
|
1,040
|
|
|
Total
|
|
$
|
7,072,952
|
|
|
$
|
760
|
|
|
$
|
167,073
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount
|
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Written options
|
|
$
|
931,601
|
|
|
$
|
—
|
|
|
$
|
492
|
|
|
Purchased options
|
|
$
|
931,601
|
|
|
$
|
503
|
|
|
$
|
—
|
|
Sold collars and corridors
|
|
429,879
|
|
|
1,121
|
|
|
305
|
|
|
Collars and corridors
|
|
429,879
|
|
|
308
|
|
|
1,140
|
|
||||||
Swaps
|
|
4,482,881
|
|
|
41,457
|
|
|
41,545
|
|
|
Swaps
|
|
4,489,658
|
|
|
26,429
|
|
|
25,785
|
|
||||||
Total
|
|
$
|
5,844,361
|
|
|
$
|
42,578
|
|
|
$
|
42,342
|
|
|
Total
|
|
$
|
5,851,138
|
|
|
$
|
27,240
|
|
|
$
|
26,925
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Forwards and spot
|
|
$
|
3,205,662
|
|
|
$
|
46,233
|
|
|
$
|
34,023
|
|
|
Forwards and spot
|
|
$
|
321,044
|
|
|
$
|
2,538
|
|
|
$
|
5,171
|
|
Swaps
|
|
10,091
|
|
|
77
|
|
|
217
|
|
|
Swaps
|
|
760,748
|
|
|
7,239
|
|
|
7,554
|
|
||||||
Written options
|
|
85,379
|
|
|
640
|
|
|
—
|
|
|
Purchased options
|
|
85,379
|
|
|
—
|
|
|
640
|
|
||||||
Collars
|
|
5,344
|
|
|
30
|
|
|
209
|
|
|
Collars
|
|
164,489
|
|
|
2,755
|
|
|
2,583
|
|
||||||
Total
|
|
$
|
3,306,476
|
|
|
$
|
46,980
|
|
|
$
|
34,449
|
|
|
Total
|
|
$
|
1,331,660
|
|
|
$
|
12,532
|
|
|
$
|
15,948
|
|
|
|
||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
|
Notional
Amount |
|
Fair Value
|
||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Forwards and spot
|
|
$
|
2,023,425
|
|
|
$
|
11,719
|
|
|
$
|
13,079
|
|
|
Forwards and spot
|
|
$
|
506,342
|
|
|
$
|
3,407
|
|
|
$
|
2,285
|
|
Swaps
|
|
21,108
|
|
|
348
|
|
|
243
|
|
|
Swaps
|
|
687,845
|
|
|
5,764
|
|
|
3,336
|
|
||||||
Written options
|
|
537
|
|
|
16
|
|
|
—
|
|
|
Purchased options
|
|
537
|
|
|
—
|
|
|
16
|
|
||||||
Collars
|
|
83,864
|
|
|
—
|
|
|
370
|
|
|
Collars
|
|
83,864
|
|
|
370
|
|
|
—
|
|
||||||
Total
|
|
$
|
2,128,934
|
|
|
$
|
12,083
|
|
|
$
|
13,692
|
|
|
Total
|
|
$
|
1,278,588
|
|
|
$
|
9,541
|
|
|
$
|
5,637
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Notional
Amount
|
|
Fair Value
|
|
Notional
Amount
|
|
Fair Value
|
|||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
Assets
|
|
Liabilities
|
|||||||||||||||
RPAs - protection sold
|
|
$
|
200,629
|
|
|
$
|
—
|
|
|
$
|
122
|
|
|
$
|
108,606
|
|
|
$
|
—
|
|
|
$
|
164
|
|
RPAs - protection purchased
|
|
10,714
|
|
|
4
|
|
|
—
|
|
|
10,714
|
|
|
1
|
|
|
—
|
|
||||||
Total RPAs
|
|
$
|
211,343
|
|
|
$
|
4
|
|
|
$
|
122
|
|
|
$
|
119,320
|
|
|
$
|
1
|
|
|
$
|
164
|
|
|
|
||||||||||||||||||||||||||||
($ and units
in thousands)
|
|
September 30, 2019
|
||||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ and units
in thousands)
|
|
Financial Counterparty
|
|||||||||||||||||||||||
|
Notional
Unit
|
|
Fair Value
|
|
|
Notional
Unit
|
|
Fair Value
|
||||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||||
Crude oil:
|
|
|
|
|
|
|
|
|
|
Crude oil:
|
|
|
|
|
|
|
|
|
||||||||||
Written options
|
|
148
|
|
|
Barrels
|
|
$
|
—
|
|
|
$
|
305
|
|
|
Purchased options
|
|
148
|
|
|
Barrels
|
|
$
|
225
|
|
|
$
|
—
|
|
Collars
|
|
2,838
|
|
|
Barrels
|
|
19
|
|
|
5,523
|
|
|
Collars
|
|
3,384
|
|
|
Barrels
|
|
6,141
|
|
|
713
|
|
||||
Swaps
|
|
4,180
|
|
|
Barrels
|
|
1,454
|
|
|
22,806
|
|
|
Swaps
|
|
4,299
|
|
|
Barrels
|
|
14,922
|
|
|
1,939
|
|
||||
Total
|
|
7,166
|
|
|
|
|
$
|
1,473
|
|
|
$
|
28,634
|
|
|
Total
|
|
7,831
|
|
|
|
|
$
|
21,288
|
|
|
$
|
2,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas:
|
|
|
|
|
|
|
|
|
|
Natural gas:
|
|
|
|
|
|
|
|
|
||||||||||
Written options
|
|
570
|
|
|
MMBTUs
|
|
$
|
—
|
|
|
$
|
42
|
|
|
Purchased Options
|
|
560
|
|
|
MMBTUs
|
|
$
|
35
|
|
|
$
|
—
|
|
Collars
|
|
10,742
|
|
|
MMBTUs
|
|
$
|
228
|
|
|
$
|
447
|
|
|
Collars
|
|
10,672
|
|
|
MMBTUs
|
|
$
|
387
|
|
|
$
|
183
|
|
Swaps
|
|
21,777
|
|
|
MMBTUs
|
|
2,588
|
|
|
7,024
|
|
|
Swaps
|
|
22,938
|
|
|
MMBTUs
|
|
6,979
|
|
|
2,885
|
|
||||
Total
|
|
33,089
|
|
|
|
|
$
|
2,816
|
|
|
$
|
7,513
|
|
|
Total
|
|
34,170
|
|
|
|
|
$
|
7,401
|
|
|
$
|
3,068
|
|
Total
|
|
|
|
|
|
$
|
4,289
|
|
|
$
|
36,147
|
|
|
Total
|
|
|
|
|
|
$
|
28,689
|
|
|
$
|
5,720
|
|
||
|
|
||||||||||||||||||||||||||||
($ and units
in thousands) |
|
December 31, 2018
|
||||||||||||||||||||||||||
|
Customer Counterparty
|
|
($ and units
in thousands) |
|
Financial Counterparty
|
|||||||||||||||||||||||
|
Notional
Unit
|
|
Fair Value
|
|
|
Notional
Unit
|
|
Fair Value
|
||||||||||||||||||||
|
|
Assets
|
|
Liabilities
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||||||||
Crude oil:
|
|
|
|
|
|
|
|
|
|
Crude oil:
|
|
|
|
|
|
|
|
|
||||||||||
Written options
|
|
524
|
|
|
Barrels
|
|
$
|
—
|
|
|
$
|
2,628
|
|
|
Purchased options
|
|
524
|
|
|
Barrels
|
|
$
|
2,251
|
|
|
$
|
—
|
|
Collars
|
|
872
|
|
|
Barrels
|
|
—
|
|
|
3,772
|
|
|
Collars
|
|
872
|
|
|
Barrels
|
|
3,225
|
|
|
—
|
|
||||
Swaps
|
|
1,111
|
|
|
Barrels
|
|
—
|
|
|
14,278
|
|
|
Swaps
|
|
1,111
|
|
|
Barrels
|
|
5,799
|
|
|
—
|
|
||||
Total
|
|
2,507
|
|
|
|
|
$
|
—
|
|
|
$
|
20,678
|
|
|
Total
|
|
2,507
|
|
|
|
|
$
|
11,275
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas:
|
|
|
|
|
|
|
|
|
|
Natural gas:
|
|
|
|
|
|
|
|
|
||||||||||
Collars
|
|
3,063
|
|
|
MMBTUs
|
|
$
|
78
|
|
|
$
|
152
|
|
|
Collars
|
|
3,063
|
|
|
MMBTUs
|
|
$
|
151
|
|
|
$
|
64
|
|
Swaps
|
|
11,659
|
|
|
MMBTUs
|
|
1,049
|
|
|
1,857
|
|
|
Swaps
|
|
11,659
|
|
|
MMBTUs
|
|
1,869
|
|
|
317
|
|
||||
Total
|
|
14,722
|
|
|
|
|
$
|
1,127
|
|
|
$
|
2,009
|
|
|
Total
|
|
14,722
|
|
|
|
|
$
|
2,020
|
|
|
$
|
381
|
|
Total
|
|
|
|
|
|
$
|
1,127
|
|
|
$
|
22,687
|
|
|
Total
|
|
|
|
|
|
$
|
13,295
|
|
|
$
|
381
|
|
||
|
|
||||||||||||||||||
($ in thousands)
|
|
Classification on
Consolidated
Statement of Income
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
Interest rate contracts and other derivative income
|
|
$
|
(2,738
|
)
|
|
$
|
653
|
|
|
$
|
(5,876
|
)
|
|
$
|
1,847
|
|
Foreign exchange contracts
|
|
Foreign exchange income
|
|
5,306
|
|
|
4,612
|
|
|
15,127
|
|
|
11,115
|
|
||||
Credit contracts
|
|
Interest rate contracts and other derivative income
|
|
(3
|
)
|
|
20
|
|
|
44
|
|
|
(49
|
)
|
||||
Equity contracts
|
|
Lending fees
|
|
(442
|
)
|
|
531
|
|
|
725
|
|
|
970
|
|
||||
Commodity contracts
|
|
Interest rate contracts and other derivative income
|
|
14
|
|
|
(45
|
)
|
|
(4
|
)
|
|
(5
|
)
|
||||
Net gains
|
|
|
|
$
|
2,137
|
|
|
$
|
5,771
|
|
|
$
|
10,016
|
|
|
$
|
13,878
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Gross
Amounts Recognized (1) |
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net Amount
|
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Received (3)
|
|
|
Security Collateral
Received (5) |
|
||||||||||||||||
Derivative Assets
|
|
$
|
358,639
|
|
|
$
|
(62,741
|
)
|
|
$
|
(6,587
|
)
|
|
$
|
289,311
|
|
|
$
|
—
|
|
|
$
|
289,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Gross
Amounts
Recognized (2)
|
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net Amount
|
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Pledged (4)
|
|
|
Security Collateral
Pledged (5) |
|
||||||||||||||||
Derivative Liabilities
|
|
$
|
263,734
|
|
|
$
|
(62,741
|
)
|
|
$
|
(47,979
|
)
|
|
$
|
153,014
|
|
|
$
|
(113,365
|
)
|
|
$
|
39,649
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Gross
Amounts Recognized (1) |
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net Amount
|
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Received (3)
|
|
|
Security Collateral
Received (5) |
|
||||||||||||||||
Derivative Assets
|
|
$
|
107,816
|
|
|
$
|
(31,569
|
)
|
|
$
|
(13,577
|
)
|
|
$
|
62,670
|
|
|
$
|
(13,975
|
)
|
|
$
|
48,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Gross
Amounts
Recognized (2)
|
|
Gross Amounts Offset
on the Consolidated Balance Sheet |
|
Net Amounts
Presented on the Consolidated Balance Sheet |
|
Gross Amounts Not Offset
on the Consolidated Balance Sheet |
|
Net Amount
|
||||||||||||||
|
|
Master Netting Arrangements
|
|
Cash Collateral Pledged (4)
|
|
|
Security Collateral
Pledged (5) |
|
||||||||||||||||
Derivative Liabilities
|
|
$
|
118,305
|
|
|
$
|
(31,569
|
)
|
|
$
|
(6,833
|
)
|
|
$
|
79,903
|
|
|
$
|
(11,231
|
)
|
|
$
|
68,672
|
|
|
(1)
|
Gross amounts recognized for derivative assets include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of $357.0 million and $105.9 million, respectively, as of September 30, 2019 and December 31, 2018, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of $1.6 million and $2.0 million, respectively, as of September 30, 2019 and December 31, 2018.
|
(2)
|
Gross amounts recognized for derivative liabilities include amounts with counterparties subject to enforceable master netting arrangements or similar agreements of $263.7 million and $118.2 million, respectively, as of September 30, 2019 and December 31, 2018, and amounts with counterparties not subject to enforceable master netting arrangements or similar agreements of $67 thousand and $102 thousand, respectively, as of September 30, 2019 and December 31, 2018.
|
(3)
|
Gross cash collateral received under master netting arrangements or similar agreements were $7.2 million and $15.8 million, respectively, as of September 30, 2019 and December 31, 2018. Of the gross cash collateral received, $6.6 million and $13.6 million were used to offset against derivative assets, respectively, as of September 30, 2019 and December 31, 2018.
|
(4)
|
Gross cash collateral pledged under master netting arrangements or similar agreements were $50.9 million and $8.4 million, respectively, as of September 30, 2019 and December 31, 2018. Of the gross cash collateral pledged, $48.0 million and $6.8 million were used to offset against derivative liabilities, respectively, as of September 30, 2019 and December 31, 2018.
|
(5)
|
Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of non-cash collateral on the Consolidated Balance Sheet but requires disclosure of such amounts.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Non-PCI
Loans (1)
|
|
PCI
Loans (2)
|
|
Total (1)(2)
|
|
Non-PCI
Loans (1)
|
|
PCI
Loans (2)
|
|
Total (1)(2)
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
12,299,163
|
|
|
$
|
1,839
|
|
|
$
|
12,301,002
|
|
|
$
|
12,054,818
|
|
|
$
|
2,152
|
|
|
$
|
12,056,970
|
|
CRE
|
|
9,627,330
|
|
|
122,253
|
|
|
9,749,583
|
|
|
9,097,165
|
|
|
163,034
|
|
|
9,260,199
|
|
||||||
Multifamily residential
|
|
2,564,758
|
|
|
24,445
|
|
|
2,589,203
|
|
|
2,433,924
|
|
|
36,744
|
|
|
2,470,668
|
|
||||||
Construction and land
|
|
719,859
|
|
|
41
|
|
|
719,900
|
|
|
538,752
|
|
|
42
|
|
|
538,794
|
|
||||||
Total commercial
|
|
25,211,110
|
|
|
148,578
|
|
|
25,359,688
|
|
|
24,124,659
|
|
|
201,972
|
|
|
24,326,631
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
6,725,574
|
|
|
85,440
|
|
|
6,811,014
|
|
|
5,939,258
|
|
|
97,196
|
|
|
6,036,454
|
|
||||||
HELOCs
|
|
1,533,433
|
|
|
6,688
|
|
|
1,540,121
|
|
|
1,681,979
|
|
|
8,855
|
|
|
1,690,834
|
|
||||||
Other consumer
|
|
314,153
|
|
|
—
|
|
|
314,153
|
|
|
331,270
|
|
|
—
|
|
|
331,270
|
|
||||||
Total consumer
|
|
8,573,160
|
|
|
92,128
|
|
|
8,665,288
|
|
|
7,952,507
|
|
|
106,051
|
|
|
8,058,558
|
|
||||||
Total loans held-for-investment
|
|
$
|
33,784,270
|
|
|
$
|
240,706
|
|
|
$
|
34,024,976
|
|
|
$
|
32,077,166
|
|
|
$
|
308,023
|
|
|
$
|
32,385,189
|
|
Allowance for loan losses
|
|
(345,576
|
)
|
|
—
|
|
|
(345,576
|
)
|
|
(311,300
|
)
|
|
(22
|
)
|
|
(311,322
|
)
|
||||||
Loans held-for-investment, net
|
|
$
|
33,438,694
|
|
|
$
|
240,706
|
|
|
$
|
33,679,400
|
|
|
$
|
31,765,866
|
|
|
$
|
308,001
|
|
|
$
|
32,073,867
|
|
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(39.8) million and $(48.9) million as of September 30, 2019 and December 31, 2018, respectively.
|
(2)
|
Includes ASC 310-30 discount of $16.7 million and $22.2 million as of September 30, 2019 and December 31, 2018, respectively.
|
|
||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
Non-PCI Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
11,632,851
|
|
|
$
|
390,052
|
|
|
$
|
262,387
|
|
|
$
|
13,873
|
|
|
$
|
12,299,163
|
|
CRE
|
|
9,454,709
|
|
|
90,583
|
|
|
82,038
|
|
|
—
|
|
|
9,627,330
|
|
|||||
Multifamily residential
|
|
2,535,702
|
|
|
20,393
|
|
|
8,663
|
|
|
—
|
|
|
2,564,758
|
|
|||||
Construction and land
|
|
666,597
|
|
|
—
|
|
|
53,262
|
|
|
—
|
|
|
719,859
|
|
|||||
Total commercial
|
|
24,289,859
|
|
|
501,028
|
|
|
406,350
|
|
|
13,873
|
|
|
25,211,110
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
6,708,317
|
|
|
7,773
|
|
|
9,484
|
|
|
—
|
|
|
6,725,574
|
|
|||||
HELOCs
|
|
1,518,542
|
|
|
4,966
|
|
|
9,925
|
|
|
—
|
|
|
1,533,433
|
|
|||||
Other consumer
|
|
299,659
|
|
|
11,999
|
|
|
2,495
|
|
|
—
|
|
|
314,153
|
|
|||||
Total consumer
|
|
8,526,518
|
|
|
24,738
|
|
|
21,904
|
|
|
—
|
|
|
8,573,160
|
|
|||||
Total
|
|
$
|
32,816,377
|
|
|
$
|
525,766
|
|
|
$
|
428,254
|
|
|
$
|
13,873
|
|
|
$
|
33,784,270
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
Non-PCI Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
11,644,470
|
|
|
$
|
260,089
|
|
|
$
|
139,844
|
|
|
$
|
10,415
|
|
|
$
|
12,054,818
|
|
CRE
|
|
8,957,228
|
|
|
49,705
|
|
|
90,232
|
|
|
—
|
|
|
9,097,165
|
|
|||||
Multifamily residential
|
|
2,402,991
|
|
|
20,551
|
|
|
10,382
|
|
|
—
|
|
|
2,433,924
|
|
|||||
Construction and land
|
|
485,217
|
|
|
19,838
|
|
|
33,697
|
|
|
—
|
|
|
538,752
|
|
|||||
Total commercial
|
|
23,489,906
|
|
|
350,183
|
|
|
274,155
|
|
|
10,415
|
|
|
24,124,659
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
5,925,584
|
|
|
6,376
|
|
|
7,298
|
|
|
—
|
|
|
5,939,258
|
|
|||||
HELOCs
|
|
1,669,300
|
|
|
1,576
|
|
|
11,103
|
|
|
—
|
|
|
1,681,979
|
|
|||||
Other consumer
|
|
328,767
|
|
|
1
|
|
|
2,502
|
|
|
—
|
|
|
331,270
|
|
|||||
Total consumer
|
|
7,923,651
|
|
|
7,953
|
|
|
20,903
|
|
|
—
|
|
|
7,952,507
|
|
|||||
Total
|
|
$
|
31,413,557
|
|
|
$
|
358,136
|
|
|
$
|
295,058
|
|
|
$
|
10,415
|
|
|
$
|
32,077,166
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
PCI Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
1,839
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,839
|
|
CRE
|
|
106,164
|
|
|
—
|
|
|
16,089
|
|
|
—
|
|
|
122,253
|
|
|||||
Multifamily residential
|
|
23,870
|
|
|
—
|
|
|
575
|
|
|
—
|
|
|
24,445
|
|
|||||
Construction and land
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|||||
Total commercial
|
|
131,914
|
|
|
—
|
|
|
16,664
|
|
|
—
|
|
|
148,578
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
85,338
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
85,440
|
|
|||||
HELOCs
|
|
6,265
|
|
|
—
|
|
|
423
|
|
|
—
|
|
|
6,688
|
|
|||||
Total consumer
|
|
91,603
|
|
|
—
|
|
|
525
|
|
|
—
|
|
|
92,128
|
|
|||||
Total (1)
|
|
$
|
223,517
|
|
|
$
|
—
|
|
|
$
|
17,189
|
|
|
$
|
—
|
|
|
$
|
240,706
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Pass/Watch
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
PCI Loans
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
1,996
|
|
|
$
|
—
|
|
|
$
|
156
|
|
|
$
|
—
|
|
|
$
|
2,152
|
|
CRE
|
|
143,839
|
|
|
—
|
|
|
19,195
|
|
|
—
|
|
|
163,034
|
|
|||||
Multifamily residential
|
|
35,221
|
|
|
—
|
|
|
1,523
|
|
|
—
|
|
|
36,744
|
|
|||||
Construction and land
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Total commercial
|
|
181,098
|
|
|
—
|
|
|
20,874
|
|
|
—
|
|
|
201,972
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
95,789
|
|
|
1,021
|
|
|
386
|
|
|
—
|
|
|
97,196
|
|
|||||
HELOCs
|
|
8,314
|
|
|
256
|
|
|
285
|
|
|
—
|
|
|
8,855
|
|
|||||
Total consumer
|
|
104,103
|
|
|
1,277
|
|
|
671
|
|
|
—
|
|
|
106,051
|
|
|||||
Total (1)
|
|
$
|
285,201
|
|
|
$
|
1,277
|
|
|
$
|
21,545
|
|
|
$
|
—
|
|
|
$
|
308,023
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||||||||||||||
|
Accruing
Loans
30-59 Days
Past Due
|
|
Accruing
Loans
60-89 Days
Past Due
|
|
Total
Accruing
Past Due
Loans
|
|
Nonaccrual
Loans Less
Than 90
Days
Past Due
|
|
Nonaccrual
Loans
90 or More
Days
Past Due
|
|
Total
Nonaccrual
Loans
|
|
Current
Accruing
Loans
|
|
Total
Non-PCI
Loans
|
|||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
C&I
|
|
$
|
4,105
|
|
|
$
|
6,889
|
|
|
$
|
10,994
|
|
|
$
|
38,049
|
|
|
$
|
52,781
|
|
|
$
|
90,830
|
|
|
$
|
12,197,339
|
|
|
$
|
12,299,163
|
|
CRE
|
|
2,828
|
|
|
—
|
|
|
2,828
|
|
|
1,879
|
|
|
17,063
|
|
|
18,942
|
|
|
9,605,560
|
|
|
9,627,330
|
|
||||||||
Multifamily residential
|
|
689
|
|
|
289
|
|
|
978
|
|
|
551
|
|
|
—
|
|
|
551
|
|
|
2,563,229
|
|
|
2,564,758
|
|
||||||||
Construction and land
|
|
19,687
|
|
|
—
|
|
|
19,687
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
700,172
|
|
|
719,859
|
|
||||||||
Total commercial
|
|
27,309
|
|
|
7,178
|
|
|
34,487
|
|
|
40,479
|
|
|
69,844
|
|
|
110,323
|
|
|
25,066,300
|
|
|
25,211,110
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family residential
|
|
13,503
|
|
|
8,374
|
|
|
21,877
|
|
|
1,122
|
|
|
8,362
|
|
|
9,484
|
|
|
6,694,213
|
|
|
6,725,574
|
|
||||||||
HELOCs
|
|
8,372
|
|
|
4,967
|
|
|
13,339
|
|
|
195
|
|
|
9,729
|
|
|
9,924
|
|
|
1,510,170
|
|
|
1,533,433
|
|
||||||||
Other consumer
|
|
49
|
|
|
21
|
|
|
70
|
|
|
—
|
|
|
2,495
|
|
|
2,495
|
|
|
311,588
|
|
|
314,153
|
|
||||||||
Total consumer
|
|
21,924
|
|
|
13,362
|
|
|
35,286
|
|
|
1,317
|
|
|
20,586
|
|
|
21,903
|
|
|
8,515,971
|
|
|
8,573,160
|
|
||||||||
Total
|
|
$
|
49,233
|
|
|
$
|
20,540
|
|
|
$
|
69,773
|
|
|
$
|
41,796
|
|
|
$
|
90,430
|
|
|
$
|
132,226
|
|
|
$
|
33,582,271
|
|
|
$
|
33,784,270
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
Accruing
Loans
30-59 Days
Past Due
|
|
Accruing
Loans
60-89 Days
Past Due
|
|
Total
Accruing
Past Due
Loans
|
|
Nonaccrual
Loans Less
Than 90
Days
Past Due
|
|
Nonaccrual
Loans
90 or More
Days
Past Due
|
|
Total
Nonaccrual
Loans
|
|
Current
Accruing
Loans
|
|
Total
Non-PCI Loans |
|||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
C&I
|
|
$
|
21,032
|
|
|
$
|
19,170
|
|
|
$
|
40,202
|
|
|
$
|
17,097
|
|
|
$
|
26,743
|
|
|
$
|
43,840
|
|
|
$
|
11,970,776
|
|
|
$
|
12,054,818
|
|
CRE
|
|
7,740
|
|
|
—
|
|
|
7,740
|
|
|
3,704
|
|
|
20,514
|
|
|
24,218
|
|
|
9,065,207
|
|
|
9,097,165
|
|
||||||||
Multifamily residential
|
|
4,174
|
|
|
—
|
|
|
4,174
|
|
|
1,067
|
|
|
193
|
|
|
1,260
|
|
|
2,428,490
|
|
|
2,433,924
|
|
||||||||
Construction and land
|
|
207
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
538,545
|
|
|
538,752
|
|
||||||||
Total commercial
|
|
33,153
|
|
|
19,170
|
|
|
52,323
|
|
|
21,868
|
|
|
47,450
|
|
|
69,318
|
|
|
24,003,018
|
|
|
24,124,659
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family residential
|
|
14,645
|
|
|
7,850
|
|
|
22,495
|
|
|
509
|
|
|
4,750
|
|
|
5,259
|
|
|
5,911,504
|
|
|
5,939,258
|
|
||||||||
HELOCs
|
|
2,573
|
|
|
1,816
|
|
|
4,389
|
|
|
1,423
|
|
|
7,191
|
|
|
8,614
|
|
|
1,668,976
|
|
|
1,681,979
|
|
||||||||
Other consumer
|
|
11
|
|
|
12
|
|
|
23
|
|
|
—
|
|
|
2,502
|
|
|
2,502
|
|
|
328,745
|
|
|
331,270
|
|
||||||||
Total consumer
|
|
17,229
|
|
|
9,678
|
|
|
26,907
|
|
|
1,932
|
|
|
14,443
|
|
|
16,375
|
|
|
7,909,225
|
|
|
7,952,507
|
|
||||||||
Total
|
|
$
|
50,382
|
|
|
$
|
28,848
|
|
|
$
|
79,230
|
|
|
$
|
23,800
|
|
|
$
|
61,893
|
|
|
$
|
85,693
|
|
|
$
|
31,912,243
|
|
|
$
|
32,077,166
|
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Three Months Ended September 30,
|
||||||||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||||||||
|
Number
of Loans |
|
Pre-
Modification
Outstanding Recorded Investment |
|
Post-
Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
|
Number
of Loans |
|
Pre-
Modification
Outstanding Recorded Investment |
|
Post-
Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
1
|
|
$
|
7,933
|
|
|
$
|
6,000
|
|
|
$
|
2,396
|
|
|
4
|
|
$
|
7,992
|
|
|
$
|
8,006
|
|
|
$
|
3,619
|
|
CRE
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
1
|
|
$
|
903
|
|
|
$
|
893
|
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
HELOCs
|
|
1
|
|
$
|
139
|
|
|
$
|
136
|
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs During the Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||||||||
|
Number
of Loans |
|
Pre-
Modification
Outstanding Recorded Investment |
|
Post-
Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
|
Number
of Loans |
|
Pre-
Modification
Outstanding Recorded Investment |
|
Post-
Modification
Outstanding Recorded Investment (1) |
|
Financial
Impact (2) |
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
9
|
|
$
|
85,073
|
|
|
$
|
81,038
|
|
|
$
|
9,231
|
|
|
4
|
|
$
|
7,992
|
|
|
$
|
8,006
|
|
|
$
|
3,727
|
|
CRE
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
$
|
750
|
|
|
$
|
798
|
|
|
$
|
—
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
|
2
|
|
$
|
1,123
|
|
|
$
|
1,109
|
|
|
$
|
2
|
|
|
2
|
|
$
|
404
|
|
|
$
|
395
|
|
|
$
|
(28
|
)
|
HELOCs
|
|
1
|
|
$
|
139
|
|
|
$
|
136
|
|
|
$
|
—
|
|
|
2
|
|
$
|
1,546
|
|
|
$
|
1,467
|
|
|
$
|
—
|
|
|
(1)
|
Includes subsequent payments after modification and reflects the balance as of September 30, 2019 and 2018.
|
(2)
|
The financial impact includes charge-offs and specific reserves recorded since the modification date.
|
|
||||||||||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Three Months Ended September 30,
|
||||||||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||||||||||||||||||||
|
Principal (1)
|
|
Interest
Rate Reduction |
|
Interest
Deferments |
|
Other
|
|
Total
|
|
Principal (1)
|
|
Interest
Rate Reduction |
|
Interest
Deferments |
|
Other
|
|
Total
|
|||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
C&I
|
|
$
|
6,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,000
|
|
|
$
|
8,006
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,006
|
|
Total commercial
|
|
6,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,000
|
|
|
8,006
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,006
|
|
||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Single-family residential
|
|
—
|
|
|
—
|
|
|
893
|
|
|
—
|
|
|
893
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
HELOCs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total consumer
|
|
—
|
|
|
—
|
|
|
893
|
|
|
136
|
|
|
1,029
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
|
$
|
6,000
|
|
|
$
|
—
|
|
|
$
|
893
|
|
|
$
|
136
|
|
|
$
|
7,029
|
|
|
$
|
8,006
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,006
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Modification Type During the Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||||||||||||||||||||
|
Principal (1)
|
|
Interest
Rate Reduction |
|
Interest
Deferments |
|
Other (2)
|
|
Total
|
|
Principal (1)
|
|
Interest
Rate Reduction |
|
Interest
Deferments |
|
Other
|
|
Total
|
|||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
C&I
|
|
$
|
44,271
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36,767
|
|
|
$
|
81,038
|
|
|
$
|
8,006
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,006
|
|
CRE
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
798
|
|
|
—
|
|
|
—
|
|
|
798
|
|
||||||||||
Total commercial
|
|
44,271
|
|
|
—
|
|
|
—
|
|
|
36,767
|
|
|
81,038
|
|
|
8,006
|
|
|
798
|
|
|
—
|
|
|
—
|
|
|
8,804
|
|
||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Single-family residential
|
|
—
|
|
|
—
|
|
|
1,109
|
|
|
—
|
|
|
1,109
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
331
|
|
|
395
|
|
||||||||||
HELOCs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
136
|
|
|
1,400
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
1,467
|
|
||||||||||
Total consumer
|
|
—
|
|
|
—
|
|
|
1,109
|
|
|
136
|
|
|
1,245
|
|
|
1,464
|
|
|
—
|
|
|
—
|
|
|
398
|
|
|
1,862
|
|
||||||||||
Total
|
|
$
|
44,271
|
|
|
$
|
—
|
|
|
$
|
1,109
|
|
|
$
|
36,903
|
|
|
$
|
82,283
|
|
|
$
|
9,470
|
|
|
$
|
798
|
|
|
$
|
—
|
|
|
$
|
398
|
|
|
$
|
10,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.
|
(2)
|
Includes primarily funding to secure additional collateral and provides liquidity to collateral-dependent C&I loans.
|
|
||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|||||||||||
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
4
|
|
|
$
|
27,040
|
|
|
—
|
|
|
$
|
—
|
|
CRE
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
186
|
|
|
|
||||||||||||||
($ in thousands)
|
|
Loans Modified as TDRs that Subsequently Defaulted During the Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|||||||||||
|
Number of
Loans |
|
Recorded
Investment |
|
Number of
Loans |
|
Recorded
Investment |
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
5
|
|
|
$
|
28,415
|
|
|
—
|
|
|
$
|
—
|
|
CRE
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
186
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
With No
Allowance
|
|
Recorded
Investment
With
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
154,618
|
|
|
$
|
82,798
|
|
|
$
|
38,305
|
|
|
$
|
121,103
|
|
|
$
|
13,783
|
|
CRE
|
|
30,573
|
|
|
23,653
|
|
|
1,223
|
|
|
24,876
|
|
|
98
|
|
|||||
Multifamily residential
|
|
5,190
|
|
|
1,891
|
|
|
2,848
|
|
|
4,739
|
|
|
44
|
|
|||||
Total commercial
|
|
190,381
|
|
|
108,342
|
|
|
42,376
|
|
|
150,718
|
|
|
13,925
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
18,299
|
|
|
4,311
|
|
|
12,689
|
|
|
17,000
|
|
|
34
|
|
|||||
HELOCs
|
|
12,569
|
|
|
7,992
|
|
|
4,506
|
|
|
12,498
|
|
|
4
|
|
|||||
Other consumer
|
|
2,495
|
|
|
—
|
|
|
2,495
|
|
|
2,495
|
|
|
2,491
|
|
|||||
Total consumer
|
|
33,363
|
|
|
12,303
|
|
|
19,690
|
|
|
31,993
|
|
|
2,529
|
|
|||||
Total non-PCI impaired loans
|
|
$
|
223,744
|
|
|
$
|
120,645
|
|
|
$
|
62,066
|
|
|
$
|
182,711
|
|
|
$
|
16,454
|
|
|
|
||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
With No
Allowance
|
|
Recorded
Investment
With
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
82,963
|
|
|
$
|
48,479
|
|
|
$
|
8,609
|
|
|
$
|
57,088
|
|
|
$
|
1,219
|
|
CRE
|
|
36,426
|
|
|
28,285
|
|
|
2,067
|
|
|
30,352
|
|
|
208
|
|
|||||
Multifamily residential
|
|
6,031
|
|
|
2,949
|
|
|
2,611
|
|
|
5,560
|
|
|
75
|
|
|||||
Total commercial
|
|
125,420
|
|
|
79,713
|
|
|
13,287
|
|
|
93,000
|
|
|
1,502
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family residential
|
|
14,670
|
|
|
2,552
|
|
|
10,908
|
|
|
13,460
|
|
|
34
|
|
|||||
HELOCs
|
|
10,035
|
|
|
5,547
|
|
|
4,409
|
|
|
9,956
|
|
|
5
|
|
|||||
Other consumer
|
|
2,502
|
|
|
—
|
|
|
2,502
|
|
|
2,502
|
|
|
2,491
|
|
|||||
Total consumer
|
|
27,207
|
|
|
8,099
|
|
|
17,819
|
|
|
25,918
|
|
|
2,530
|
|
|||||
Total non-PCI impaired loans
|
|
$
|
152,627
|
|
|
$
|
87,812
|
|
|
$
|
31,106
|
|
|
$
|
118,918
|
|
|
$
|
4,032
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||||||||||||||||
|
Average
Recorded Investment |
|
Recognized
Interest
Income (1)
|
|
Average
Recorded Investment |
|
Recognized
Interest
Income (1)
|
|
Average
Recorded
Investment
|
|
Recognized
Interest
Income (1)
|
|
Average
Recorded Investment |
|
Recognized
Interest
Income (1)
|
|||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
C&I
|
|
$
|
150,063
|
|
|
$
|
340
|
|
|
$
|
94,095
|
|
|
$
|
328
|
|
|
$
|
198,024
|
|
|
$
|
2,156
|
|
|
$
|
142,259
|
|
|
$
|
685
|
|
CRE
|
|
28,846
|
|
|
114
|
|
|
31,891
|
|
|
116
|
|
|
33,329
|
|
|
363
|
|
|
35,311
|
|
|
375
|
|
||||||||
Multifamily residential
|
|
5,226
|
|
|
58
|
|
|
6,740
|
|
|
56
|
|
|
5,856
|
|
|
179
|
|
|
11,776
|
|
|
190
|
|
||||||||
Construction and land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,973
|
|
|
—
|
|
||||||||
Total commercial
|
|
184,135
|
|
|
512
|
|
|
132,726
|
|
|
500
|
|
|
237,209
|
|
|
2,698
|
|
|
193,319
|
|
|
1,250
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single-family residential
|
|
23,779
|
|
|
124
|
|
|
18,423
|
|
|
119
|
|
|
27,758
|
|
|
382
|
|
|
21,208
|
|
|
347
|
|
||||||||
HELOCs
|
|
15,382
|
|
|
37
|
|
|
10,474
|
|
|
18
|
|
|
19,529
|
|
|
93
|
|
|
11,897
|
|
|
51
|
|
||||||||
Other consumer
|
|
2,504
|
|
|
—
|
|
|
2,491
|
|
|
—
|
|
|
2,526
|
|
|
—
|
|
|
2,491
|
|
|
—
|
|
||||||||
Total consumer
|
|
41,665
|
|
|
161
|
|
|
31,388
|
|
|
137
|
|
|
49,813
|
|
|
475
|
|
|
35,596
|
|
|
398
|
|
||||||||
Total non-PCI impaired loans
|
|
$
|
225,800
|
|
|
$
|
673
|
|
|
$
|
164,114
|
|
|
$
|
637
|
|
|
$
|
287,022
|
|
|
$
|
3,173
|
|
|
$
|
228,915
|
|
|
$
|
1,648
|
|
|
(1)
|
Includes interest income recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal, not as interest income.
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Non-PCI Loans
|
|
|
|
|
|
|
|
|
||||||||
Allowance for non-PCI loans, beginning of period
|
|
$
|
330,620
|
|
|
$
|
301,511
|
|
|
$
|
311,300
|
|
|
$
|
287,070
|
|
Provision for loan losses on non-PCI loans
|
|
37,884
|
|
|
12,650
|
|
|
79,272
|
|
|
47,722
|
|
||||
Gross charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
(25,098
|
)
|
|
(4,462
|
)
|
|
(54,087
|
)
|
|
(36,441
|
)
|
||||
CRE
|
|
(1,021
|
)
|
|
—
|
|
|
(1,021
|
)
|
|
—
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|
(1
|
)
|
||||
Other consumer
|
|
(12
|
)
|
|
(6
|
)
|
|
(40
|
)
|
|
(185
|
)
|
||||
Total gross charge-offs
|
|
(26,142
|
)
|
|
(4,468
|
)
|
|
(55,159
|
)
|
|
(36,627
|
)
|
||||
Gross recoveries:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
1,648
|
|
|
411
|
|
|
5,612
|
|
|
8,841
|
|
||||
CRE
|
|
1,896
|
|
|
2
|
|
|
3,955
|
|
|
431
|
|
||||
Multifamily residential
|
|
42
|
|
|
77
|
|
|
376
|
|
|
1,471
|
|
||||
Construction and land
|
|
21
|
|
|
23
|
|
|
523
|
|
|
716
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
60
|
|
|
295
|
|
|
134
|
|
|
1,108
|
|
||||
HELOCs
|
|
5
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Other consumer
|
|
7
|
|
|
1
|
|
|
14
|
|
|
2
|
|
||||
Total gross recoveries
|
|
3,679
|
|
|
809
|
|
|
10,621
|
|
|
12,569
|
|
||||
Net charge-offs
|
|
(22,463
|
)
|
|
(3,659
|
)
|
|
(44,538
|
)
|
|
(24,058
|
)
|
||||
Foreign currency translation adjustments
|
|
(465
|
)
|
|
(492
|
)
|
|
(458
|
)
|
|
(724
|
)
|
||||
Allowance for non-PCI loans, end of period
|
|
345,576
|
|
|
310,010
|
|
|
345,576
|
|
|
310,010
|
|
||||
PCI Loans
|
|
|
|
|
|
|
|
|
||||||||
Allowance for PCI loans, beginning of period
|
|
5
|
|
|
39
|
|
|
22
|
|
|
58
|
|
||||
Reversal of loan losses on PCI loans
|
|
(5
|
)
|
|
(8
|
)
|
|
(22
|
)
|
|
(27
|
)
|
||||
Allowance for PCI loans, end of period
|
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
||||
Allowance for loan losses
|
|
$
|
345,576
|
|
|
$
|
310,041
|
|
|
$
|
345,576
|
|
|
$
|
310,041
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Allowance for unfunded credit reserves, beginning of period
|
|
$
|
13,019
|
|
|
$
|
14,019
|
|
|
$
|
12,566
|
|
|
$
|
13,318
|
|
Provision for (reversal of) unfunded credit reserves
|
|
405
|
|
|
(2,100
|
)
|
|
858
|
|
|
(1,399
|
)
|
||||
Allowance for unfunded credit reserves, end of period
|
|
$
|
13,424
|
|
|
$
|
11,919
|
|
|
$
|
13,424
|
|
|
$
|
11,919
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential
|
|
Construction
and Land
|
|
Single-
Family
Residential
|
|
HELOCs
|
|
Other
Consumer
|
|
||||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
13,783
|
|
|
$
|
98
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
4
|
|
|
$
|
2,491
|
|
|
$
|
16,454
|
|
Collectively evaluated for impairment
|
|
205,086
|
|
|
37,375
|
|
|
20,263
|
|
|
29,171
|
|
|
29,901
|
|
|
5,852
|
|
|
1,474
|
|
|
329,122
|
|
||||||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
218,869
|
|
|
$
|
37,473
|
|
|
$
|
20,307
|
|
|
$
|
29,171
|
|
|
$
|
29,935
|
|
|
$
|
5,856
|
|
|
$
|
3,965
|
|
|
$
|
345,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
121,103
|
|
|
$
|
24,876
|
|
|
$
|
4,739
|
|
|
$
|
—
|
|
|
$
|
17,000
|
|
|
$
|
12,498
|
|
|
$
|
2,495
|
|
|
$
|
182,711
|
|
Collectively evaluated for impairment
|
|
12,178,060
|
|
|
9,602,454
|
|
|
2,560,019
|
|
|
719,859
|
|
|
6,708,574
|
|
|
1,520,935
|
|
|
311,658
|
|
|
33,601,559
|
|
||||||||
Acquired with deteriorated credit quality (1)
|
|
1,839
|
|
|
122,253
|
|
|
24,445
|
|
|
41
|
|
|
85,440
|
|
|
6,688
|
|
|
—
|
|
|
240,706
|
|
||||||||
Total (1)
|
|
$
|
12,301,002
|
|
|
$
|
9,749,583
|
|
|
$
|
2,589,203
|
|
|
$
|
719,900
|
|
|
$
|
6,811,014
|
|
|
$
|
1,540,121
|
|
|
$
|
314,153
|
|
|
$
|
34,024,976
|
|
|
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential
|
|
Construction
and Land
|
|
Single-
Family
Residential
|
|
HELOCs
|
|
Other
Consumer
|
|
||||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
1,219
|
|
|
$
|
208
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
5
|
|
|
$
|
2,491
|
|
|
$
|
4,032
|
|
Collectively evaluated for impairment
|
|
187,898
|
|
|
40,436
|
|
|
19,810
|
|
|
20,290
|
|
|
31,306
|
|
|
5,769
|
|
|
1,759
|
|
|
307,268
|
|
||||||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||||||||
Total
|
|
$
|
189,117
|
|
|
$
|
40,666
|
|
|
$
|
19,885
|
|
|
$
|
20,290
|
|
|
$
|
31,340
|
|
|
$
|
5,774
|
|
|
$
|
4,250
|
|
|
$
|
311,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
|
$
|
57,088
|
|
|
$
|
30,352
|
|
|
$
|
5,560
|
|
|
$
|
—
|
|
|
$
|
13,460
|
|
|
$
|
9,956
|
|
|
$
|
2,502
|
|
|
$
|
118,918
|
|
Collectively evaluated for impairment
|
|
11,997,730
|
|
|
9,066,813
|
|
|
2,428,364
|
|
|
538,752
|
|
|
5,925,798
|
|
|
1,672,023
|
|
|
328,768
|
|
|
31,958,248
|
|
||||||||
Acquired with deteriorated credit quality (1)
|
|
2,152
|
|
|
163,034
|
|
|
36,744
|
|
|
42
|
|
|
97,196
|
|
|
8,855
|
|
|
—
|
|
|
308,023
|
|
||||||||
Total (1)
|
|
$
|
12,056,970
|
|
|
$
|
9,260,199
|
|
|
$
|
2,470,668
|
|
|
$
|
538,794
|
|
|
$
|
6,036,454
|
|
|
$
|
1,690,834
|
|
|
$
|
331,270
|
|
|
$
|
32,385,189
|
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Accretable yield for PCI loans, beginning of period
|
|
$
|
64,053
|
|
|
$
|
85,052
|
|
|
$
|
74,870
|
|
|
$
|
101,977
|
|
Accretion
|
|
(6,198
|
)
|
|
(7,357
|
)
|
|
(18,205
|
)
|
|
(27,575
|
)
|
||||
Changes in expected cash flows
|
|
(934
|
)
|
|
1,638
|
|
|
256
|
|
|
4,931
|
|
||||
Accretable yield for PCI loans, end of period
|
|
$
|
56,921
|
|
|
$
|
79,333
|
|
|
$
|
56,921
|
|
|
$
|
79,333
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
||||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
34,071
|
|
|
$
|
14,969
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,040
|
|
Sales (2)(3)(4)
|
|
$
|
37,986
|
|
|
$
|
14,969
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,708
|
|
|
$
|
55,663
|
|
Purchases (5)
|
|
$
|
38,047
|
|
|
$
|
—
|
|
|
$
|
1,350
|
|
|
$
|
—
|
|
|
$
|
29,568
|
|
|
$
|
68,965
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
||||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
53,149
|
|
|
$
|
9,830
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,981
|
|
|
$
|
77,960
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
2,306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,306
|
|
Sales (2)(3)(4)
|
|
$
|
62,744
|
|
|
$
|
9,830
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,844
|
|
|
$
|
93,418
|
|
Purchases (5)
|
|
$
|
47,809
|
|
|
$
|
—
|
|
|
$
|
2,518
|
|
|
$
|
—
|
|
|
$
|
10,759
|
|
|
$
|
61,086
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
|
Total
|
|||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
||||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
189,237
|
|
|
$
|
31,624
|
|
|
$
|
—
|
|
|
$
|
1,573
|
|
|
$
|
—
|
|
|
$
|
222,434
|
|
Sales (2)(3)(4)
|
|
$
|
189,663
|
|
|
$
|
31,624
|
|
|
$
|
—
|
|
|
$
|
1,573
|
|
|
$
|
6,322
|
|
|
$
|
229,182
|
|
Purchases (5)
|
|
$
|
304,341
|
|
|
$
|
—
|
|
|
$
|
7,302
|
|
|
$
|
—
|
|
|
$
|
83,607
|
|
|
$
|
395,250
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
|
Commercial
|
|
Consumer
|
Total
|
||||||||||||||||||||
|
C&I
|
|
CRE
|
|
Multifamily
Residential |
|
Construction
and Land |
|
Single-Family
Residential |
|
||||||||||||||
Loans transferred from held-for-investment to held-for-sale (1)
|
|
$
|
298,989
|
|
|
$
|
49,621
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,981
|
|
|
$
|
363,591
|
|
Loans transferred from held-for-sale to held-for-investment
|
|
$
|
2,306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,306
|
|
Sales (2)(3)(4)
|
|
$
|
305,435
|
|
|
$
|
49,621
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,565
|
|
|
$
|
386,621
|
|
Purchases (5)
|
|
$
|
398,171
|
|
|
$
|
—
|
|
|
$
|
5,953
|
|
|
$
|
—
|
|
|
$
|
46,784
|
|
|
$
|
450,908
|
|
|
(1)
|
The Company recorded $36 thousand and $426 thousand in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale and subsequently sold during the three and nine months ended September 30, 2019, respectively, and $110 thousand and $13.5 million during the same periods in 2018, respectively.
|
(2)
|
Includes originated loans sold of $47.8 million and $180.0 million for the three and nine months ended September 30, 2019, respectively, and $58.9 million and $252.1 million during the same periods in 2018, respectively. Originated loans sold during the three and nine months ended September 30, 2019 were primarily C&I loans. In comparison, originated loans sold during the three months ended September 30, 2018 were primarily C&I loans and single-family residential loans. Originated loans sold during the nine months ended September 30, 2018 were primarily C&I loans.
|
(3)
|
Includes purchased loans sold in the secondary market of $7.9 million and $49.2 million for the three and nine months ended September 30, 2019, respectively, and $34.5 million and $134.5 million during the same periods in 2018, respectively.
|
(4)
|
Net gains on sales of loans were $2.0 million and $3.0 million for the three and nine months ended September 30, 2019, respectively, and $1.1 million and $5.1 million during the same periods in 2018, respectively.
|
(5)
|
C&I loan purchases for each of the three and nine months ended September 30, 2019 and 2018 were comprised of broadly syndicated C&I term loans.
|
|
||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Investments in qualified affordable housing partnerships, net
|
|
$
|
190,000
|
|
|
$
|
184,873
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
66,213
|
|
|
$
|
80,764
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Tax credits and other tax benefits recognized
|
|
$
|
11,539
|
|
|
$
|
9,425
|
|
|
$
|
34,871
|
|
|
$
|
27,520
|
|
Amortization expense included in income tax expense
|
|
$
|
8,452
|
|
|
$
|
7,236
|
|
|
$
|
27,006
|
|
|
$
|
21,009
|
|
|
|
||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Investments in tax credit and other investments, net
|
|
$
|
211,603
|
|
|
$
|
231,635
|
|
Accrued expenses and other liabilities — Unfunded commitments
|
|
$
|
69,649
|
|
|
$
|
80,228
|
|
|
|
||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Total
|
||||||
Balance, January 1, 2018
|
|
$
|
357,207
|
|
|
$
|
112,226
|
|
|
$
|
469,433
|
|
Disposition of the DCB branches
|
|
(3,886
|
)
|
|
—
|
|
|
(3,886
|
)
|
|||
Balance, September 30, 2018
|
|
$
|
353,321
|
|
|
$
|
112,226
|
|
|
$
|
465,547
|
|
|
|
|
|
|
|
|
||||||
Balance, January 1, 2019
|
|
$
|
353,321
|
|
|
$
|
112,226
|
|
|
$
|
465,547
|
|
Acquisition of Enstream Capital Markets, LLC
|
|
—
|
|
|
150
|
|
|
150
|
|
|||
Balance, September 30, 2019
|
|
$
|
353,321
|
|
|
$
|
112,376
|
|
|
$
|
465,697
|
|
|
|
||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Gross balance (1)
|
|
$
|
86,099
|
|
|
$
|
86,099
|
|
Accumulated amortization (1)
|
|
(75,044
|
)
|
|
(71,570
|
)
|
||
Net carrying balance (1)
|
|
$
|
11,055
|
|
|
$
|
14,529
|
|
|
(1)
|
Excludes fully amortized core deposit intangible assets.
|
|
||||
($ in thousands)
|
|
Amount
|
||
Remainder of 2019
|
|
$
|
1,044
|
|
2020
|
|
3,634
|
|
|
2021
|
|
2,749
|
|
|
2022
|
|
1,865
|
|
|
2023
|
|
1,199
|
|
|
Thereafter
|
|
564
|
|
|
Total
|
|
$
|
11,055
|
|
|
|
||||||
($ in thousands)
|
|
Classification on the Consolidated Balance Sheet
|
|
September 30, 2019
|
||
Assets:
|
|
|
|
|
||
Operating lease assets
|
|
Operating lease right-of use assets
|
|
$
|
103,894
|
|
Finance lease assets
|
|
Premises and equipment
|
|
7,932
|
|
|
Total lease assets
|
|
|
|
$
|
111,826
|
|
Liabilities:
|
|
|
|
|
||
Operating lease liabilities
|
|
Operating lease liabilities
|
|
$
|
112,142
|
|
Finance lease liabilities
|
|
Long-term debt and finance lease liabilities
|
|
5,356
|
|
|
Total lease liabilities
|
|
|
|
$
|
117,498
|
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2019 |
||||
Operating lease cost
|
|
$
|
8,596
|
|
|
$
|
26,346
|
|
Finance lease cost:
|
|
|
|
|
||||
Amortization of right-of-use assets
|
|
251
|
|
|
733
|
|
||
Interest on lease liabilities
|
|
38
|
|
|
125
|
|
||
Variable lease cost
|
|
31
|
|
|
93
|
|
||
Sublease income
|
|
—
|
|
|
(81
|
)
|
||
Net lease cost
|
|
$
|
8,916
|
|
|
$
|
27,216
|
|
|
|
||||||||
($ in thousands)
|
|
Three Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2019 |
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
|
||||
Operating cash flows from operating leases
|
|
$
|
8,798
|
|
|
$
|
26,779
|
|
Operating cash flows from finance leases
|
|
$
|
38
|
|
|
$
|
125
|
|
Financing cash flows from finance leases
|
|
$
|
222
|
|
|
$
|
658
|
|
Right-of-use assets obtained in exchange for new lease liabilities:
|
|
|
|
|
||||
Operating leases
|
|
$
|
2,794
|
|
|
$
|
17,961
|
|
Financing leases
|
|
$
|
39
|
|
|
$
|
265
|
|
|
|
|||
|
|
September 30, 2019
|
|
Weighted-average remaining lease term (in years):
|
|
|
|
Operating leases
|
|
4.8
|
|
Finance leases
|
|
16.1
|
|
Weighted-average discount rate:
|
|
|
|
Operating leases
|
|
3.23
|
%
|
Finance leases
|
|
2.75
|
%
|
|
|
||||||||
($ in thousands)
|
|
Operating Leases
|
|
Finance Leases
|
||||
Remainder of 2019
|
|
$
|
8,713
|
|
|
$
|
260
|
|
2020
|
|
32,177
|
|
|
1,037
|
|
||
2021
|
|
27,962
|
|
|
1,031
|
|
||
2022
|
|
18,278
|
|
|
691
|
|
||
2023
|
|
11,254
|
|
|
404
|
|
||
Thereafter
|
|
22,559
|
|
|
3,465
|
|
||
Total minimum lease payments
|
|
$
|
120,943
|
|
|
$
|
6,888
|
|
Less: imputed interest
|
|
(8,801
|
)
|
|
(1,532
|
)
|
||
Present value of lease liabilities
|
|
$
|
112,142
|
|
|
$
|
5,356
|
|
|
|
||||
($ in thousands)
|
|
September 30, 2019
|
||
Lease receivables
|
|
$
|
132,431
|
|
Unguaranteed residual assets
|
|
14,767
|
|
|
Net investment in direct financing and sales-type leases
|
|
$
|
147,198
|
|
|
|
||||
($ in thousands)
|
|
Direct Financing
and
Sales-Type Leases
|
||
Remainder of 2019
|
|
$
|
6,884
|
|
2020
|
|
27,566
|
|
|
2021
|
|
25,584
|
|
|
2022
|
|
18,190
|
|
|
2023
|
|
11,995
|
|
|
Thereafter
|
|
20,342
|
|
|
Total minimum lease payments
|
|
$
|
110,561
|
|
Less: imputed interest
|
|
(10,842
|
)
|
|
Present value of lease receivables
|
|
$
|
99,719
|
|
|
|
||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Loan commitments
|
|
$
|
5,468,590
|
|
|
$
|
5,147,821
|
|
Commercial letters of credit and SBLCs
|
|
$
|
1,912,783
|
|
|
$
|
1,796,647
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Maximum Potential
Future Payments |
|
Carrying Value
|
||||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2019
|
|
December 31, 2018
|
|||||||||
Single-family residential loans sold or securitized with recourse
|
|
$
|
13,918
|
|
|
$
|
16,700
|
|
|
$
|
13,918
|
|
|
$
|
16,700
|
|
Multifamily residential loans sold or securitized with recourse
|
|
15,959
|
|
|
17,058
|
|
|
47,664
|
|
|
69,974
|
|
||||
Total
|
|
$
|
29,877
|
|
|
$
|
33,758
|
|
|
$
|
61,582
|
|
|
$
|
86,674
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30, 2019
|
||||||||||||||
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
5,345
|
|
|
$
|
3,434
|
|
|
$
|
9
|
|
|
$
|
8,788
|
|
Card income
|
|
985
|
|
|
145
|
|
|
—
|
|
|
1,130
|
|
||||
Wealth management fees
|
|
4,644
|
|
|
197
|
|
|
—
|
|
|
4,841
|
|
||||
Total revenue from contracts with customers
|
|
$
|
10,974
|
|
|
$
|
3,776
|
|
|
$
|
9
|
|
|
$
|
14,759
|
|
Other sources of noninterest income (1)
|
|
4,129
|
|
|
29,955
|
|
|
2,631
|
|
|
36,715
|
|
||||
Total noninterest income
|
|
$
|
15,103
|
|
|
$
|
33,731
|
|
|
$
|
2,640
|
|
|
$
|
51,474
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30, 2018
|
||||||||||||||
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
5,488
|
|
|
$
|
3,133
|
|
|
$
|
6
|
|
|
$
|
8,627
|
|
Card income
|
|
949
|
|
|
201
|
|
|
—
|
|
|
1,150
|
|
||||
Wealth management fees
|
|
3,401
|
|
|
134
|
|
|
—
|
|
|
3,535
|
|
||||
Total revenue from contracts with customers
|
|
$
|
9,838
|
|
|
$
|
3,468
|
|
|
$
|
6
|
|
|
$
|
13,312
|
|
Other sources of noninterest income (1)
|
|
3,299
|
|
|
24,393
|
|
|
5,498
|
|
|
33,190
|
|
||||
Total noninterest income
|
|
$
|
13,137
|
|
|
$
|
27,861
|
|
|
$
|
5,504
|
|
|
$
|
46,502
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
15,975
|
|
|
$
|
10,007
|
|
|
$
|
35
|
|
|
$
|
26,017
|
|
Card income
|
|
2,846
|
|
|
484
|
|
|
—
|
|
|
3,330
|
|
||||
Wealth management fees
|
|
11,915
|
|
|
538
|
|
|
—
|
|
|
12,453
|
|
||||
Total revenue from contracts with customers
|
|
$
|
30,736
|
|
|
$
|
11,029
|
|
|
$
|
35
|
|
|
$
|
41,800
|
|
Other sources of noninterest income (1)
|
|
12,642
|
|
|
80,902
|
|
|
11,020
|
|
|
104,564
|
|
||||
Total noninterest income
|
|
$
|
43,378
|
|
|
$
|
91,931
|
|
|
$
|
11,055
|
|
|
$
|
146,364
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
Deposit account fees:
|
|
|
|
|
|
|
|
|
||||||||
Deposit service charges and related fee income
|
|
$
|
17,240
|
|
|
$
|
9,147
|
|
|
$
|
412
|
|
|
$
|
26,799
|
|
Card income
|
|
2,952
|
|
|
596
|
|
|
—
|
|
|
3,548
|
|
||||
Wealth management fees
|
|
10,698
|
|
|
291
|
|
|
—
|
|
|
10,989
|
|
||||
Total revenue from contracts with customers
|
|
$
|
30,890
|
|
|
$
|
10,034
|
|
|
$
|
412
|
|
|
$
|
41,336
|
|
Other sources of noninterest income (1)
|
|
41,280
|
|
|
76,009
|
|
|
10,589
|
|
|
127,878
|
|
||||
Total noninterest income
|
|
$
|
72,170
|
|
|
$
|
86,043
|
|
|
$
|
11,001
|
|
|
$
|
169,214
|
|
|
(1)
|
Primarily represents revenue from contracts with customers that are out of the scope of ASC 606, Revenue from Contracts with Customers.
|
|
||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|||||||||||
Income before income taxes
|
|
$
|
206,367
|
|
|
$
|
204,865
|
|
|
1
|
%
|
|
$
|
624,635
|
|
|
$
|
613,641
|
|
|
2
|
%
|
Income tax expense
|
|
$
|
34,951
|
|
|
$
|
33,563
|
|
|
4
|
%
|
|
$
|
138,815
|
|
|
$
|
82,958
|
|
|
67
|
%
|
Effective tax rate
|
|
16.9
|
%
|
|
16.4
|
%
|
|
|
|
|
22.2
|
%
|
|
13.5
|
%
|
|
|
|
||||
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Stock compensation costs
|
|
$
|
7,487
|
|
|
$
|
10,986
|
|
|
$
|
23,012
|
|
|
$
|
24,201
|
|
Related net tax benefits for stock compensation plans
|
|
$
|
15
|
|
|
$
|
187
|
|
|
$
|
4,723
|
|
|
$
|
5,062
|
|
|
|
||||||||||||||
|
|
Time-Based RSUs
|
|
Performance-Based RSUs
|
||||||||||
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|||||||
Outstanding, January 1, 2019
|
|
1,121,391
|
|
|
$
|
51.22
|
|
|
411,290
|
|
|
$
|
49.93
|
|
Granted
|
|
495,191
|
|
|
52.53
|
|
|
134,600
|
|
|
54.64
|
|
||
Vested
|
|
(359,242
|
)
|
|
31.62
|
|
|
(159,407
|
)
|
|
29.18
|
|
||
Forfeited
|
|
(68,511
|
)
|
|
57.20
|
|
|
—
|
|
|
—
|
|
||
Outstanding, September 30, 2019
|
|
1,188,829
|
|
|
$
|
57.34
|
|
|
386,483
|
|
|
$
|
60.13
|
|
|
|
|||
|
|
Shares
|
|
Outstanding, January 1, 2019
|
|
—
|
|
Granted
|
|
12,145
|
|
Vested
|
|
—
|
|
Forfeited
|
|
(360
|
)
|
Outstanding, September 30, 2019
|
|
11,785
|
|
|
|
||||||||||||||||
($ and shares in thousands, except per share data)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Basic:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
171,416
|
|
|
$
|
171,302
|
|
|
$
|
485,820
|
|
|
$
|
530,683
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average number of shares outstanding
|
|
145,559
|
|
|
144,921
|
|
|
145,455
|
|
|
144,829
|
|
||||
Basic EPS
|
|
$
|
1.18
|
|
|
$
|
1.18
|
|
|
$
|
3.34
|
|
|
$
|
3.66
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
171,416
|
|
|
$
|
171,302
|
|
|
$
|
485,820
|
|
|
$
|
530,683
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average number of shares outstanding
|
|
145,559
|
|
|
144,921
|
|
|
145,455
|
|
|
144,829
|
|
||||
Diluted potential common shares (1)
|
|
561
|
|
|
1,252
|
|
|
633
|
|
|
1,329
|
|
||||
Diluted weighted-average number of shares outstanding (1)
|
|
146,120
|
|
|
146,173
|
|
|
146,088
|
|
|
146,158
|
|
||||
Diluted EPS
|
|
$
|
1.17
|
|
|
$
|
1.17
|
|
|
$
|
3.33
|
|
|
$
|
3.63
|
|
|
(1)
|
Includes dilutive shares from RSUs for the three and nine months ended September 30, 2019, and from RSUs and warrants for the three and nine months ended September 30, 2018.
|
|
||||||||||||
($ in thousands)
|
|
Available-
for-Sale Investment Securities |
|
Foreign
Currency Translation Adjustments, Net of Hedges (1) |
|
Total
|
||||||
Balance, July 1, 2018
|
|
$
|
(64,822
|
)
|
|
$
|
(6,645
|
)
|
|
$
|
(71,467
|
)
|
Net unrealized (losses) arising during the period
|
|
(13,584
|
)
|
|
(4,761
|
)
|
|
(18,345
|
)
|
|||
Amounts reclassified from AOCI
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|||
Changes, net of tax
|
|
(13,608
|
)
|
|
(4,761
|
)
|
|
(18,369
|
)
|
|||
Balance, September 30, 2018
|
|
$
|
(78,430
|
)
|
|
$
|
(11,406
|
)
|
|
$
|
(89,836
|
)
|
Balance, July 1, 2019
|
|
$
|
5,217
|
|
|
$
|
(15,189
|
)
|
|
$
|
(9,972
|
)
|
Net unrealized gains (losses) arising during the period
|
|
11,904
|
|
|
(2,858
|
)
|
|
9,046
|
|
|||
Amounts reclassified from AOCI
|
|
(41
|
)
|
|
—
|
|
|
(41
|
)
|
|||
Changes, net of tax
|
|
11,863
|
|
|
(2,858
|
)
|
|
9,005
|
|
|||
Balance, September 30, 2019
|
|
$
|
17,080
|
|
|
$
|
(18,047
|
)
|
|
$
|
(967
|
)
|
|
|
||||||||||||
($ in thousands)
|
|
Available-
for-Sale Investment Securities |
|
Foreign
Currency Translation Adjustments, Net of Hedges (1) |
|
Total
|
||||||
Balance, January 1, 2018
|
|
$
|
(30,898
|
)
|
|
$
|
(6,621
|
)
|
|
$
|
(37,519
|
)
|
Cumulative effect of change in accounting principle related to marketable equity securities (2)
|
|
385
|
|
|
—
|
|
|
385
|
|
|||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate (3)
|
|
(6,656
|
)
|
|
—
|
|
|
(6,656
|
)
|
|||
Balance, January 1, 2018, Adjusted
|
|
(37,169
|
)
|
|
(6,621
|
)
|
|
(43,790
|
)
|
|||
Net unrealized (losses) arising during the period
|
|
(39,588
|
)
|
|
(4,785
|
)
|
|
(44,373
|
)
|
|||
Amounts reclassified from AOCI
|
|
(1,673
|
)
|
|
—
|
|
|
(1,673
|
)
|
|||
Changes, net of tax
|
|
(41,261
|
)
|
|
(4,785
|
)
|
|
(46,046
|
)
|
|||
Balance, September 30, 2018
|
|
$
|
(78,430
|
)
|
|
$
|
(11,406
|
)
|
|
$
|
(89,836
|
)
|
Balance, January 1, 2019
|
|
$
|
(45,821
|
)
|
|
$
|
(12,353
|
)
|
|
$
|
(58,174
|
)
|
Net unrealized gains (losses) arising during the period
|
|
65,061
|
|
|
(5,694
|
)
|
|
59,367
|
|
|||
Amounts reclassified from AOCI
|
|
(2,160
|
)
|
|
—
|
|
|
(2,160
|
)
|
|||
Changes, net of tax
|
|
62,901
|
|
|
(5,694
|
)
|
|
57,207
|
|
|||
Balance, September 30, 2019
|
|
$
|
17,080
|
|
|
$
|
(18,047
|
)
|
|
$
|
(967
|
)
|
|
(1)
|
Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was Chinese Renminbi and USD, respectively.
|
(2)
|
Represents the impact of the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of 2018.
|
(3)
|
Represents amounts reclassified from AOCI to retained earnings due to early adoption of ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2018.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||||
|
Before-Tax
|
|
Tax Effect
|
|
Net-of-Tax
|
|
Before-Tax
|
|
Tax Effect
|
|
Net-of-Tax
|
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains (losses) arising during the period
|
|
$
|
16,900
|
|
|
$
|
(4,996
|
)
|
|
$
|
11,904
|
|
|
$
|
(19,319
|
)
|
|
$
|
5,735
|
|
|
$
|
(13,584
|
)
|
Net realized gains reclassified into net income (1)
|
|
(58
|
)
|
|
17
|
|
|
(41
|
)
|
|
(35
|
)
|
|
11
|
|
|
(24
|
)
|
||||||
Net change
|
|
16,842
|
|
|
(4,979
|
)
|
|
11,863
|
|
|
(19,354
|
)
|
|
5,746
|
|
|
(13,608
|
)
|
||||||
Foreign currency translation adjustments, net of hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized (losses) arising during the period (2)
|
|
(1,618
|
)
|
|
(1,240
|
)
|
|
(2,858
|
)
|
|
(4,761
|
)
|
|
—
|
|
|
(4,761
|
)
|
||||||
Net change
|
|
(1,618
|
)
|
|
(1,240
|
)
|
|
(2,858
|
)
|
|
(4,761
|
)
|
|
—
|
|
|
(4,761
|
)
|
||||||
Other comprehensive income (loss)
|
|
$
|
15,224
|
|
|
$
|
(6,219
|
)
|
|
$
|
9,005
|
|
|
$
|
(24,115
|
)
|
|
$
|
5,746
|
|
|
$
|
(18,369
|
)
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||||
|
Before-Tax
|
|
Tax Effect
|
|
Net-of-Tax
|
|
Before-Tax
|
|
Tax Effect
|
|
Net-of-Tax
|
|||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains (losses) arising during the period
|
|
$
|
92,369
|
|
|
$
|
(27,308
|
)
|
|
$
|
65,061
|
|
|
$
|
(56,238
|
)
|
|
$
|
16,650
|
|
|
$
|
(39,588
|
)
|
Net realized gains reclassified into net income (1)
|
|
(3,066
|
)
|
|
906
|
|
|
(2,160
|
)
|
|
(2,374
|
)
|
|
701
|
|
|
(1,673
|
)
|
||||||
Net change
|
|
89,303
|
|
|
(26,402
|
)
|
|
62,901
|
|
|
(58,612
|
)
|
|
17,351
|
|
|
(41,261
|
)
|
||||||
Foreign currency translation adjustments, net of hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized (losses) arising during the period (2)
|
|
(1,427
|
)
|
|
(4,267
|
)
|
|
(5,694
|
)
|
|
(4,785
|
)
|
|
—
|
|
|
(4,785
|
)
|
||||||
Net change
|
|
(1,427
|
)
|
|
(4,267
|
)
|
|
(5,694
|
)
|
|
(4,785
|
)
|
|
—
|
|
|
(4,785
|
)
|
||||||
Other comprehensive income (loss)
|
|
$
|
87,876
|
|
|
$
|
(30,669
|
)
|
|
$
|
57,207
|
|
|
$
|
(63,397
|
)
|
|
$
|
17,351
|
|
|
$
|
(46,046
|
)
|
|
(1)
|
For the three and nine months ended September 30, 2019 and 2018, before-tax amounts were reported in Net gains on sales of available-for-sale investment securities on the Consolidated Statement of Income.
|
(2)
|
The tax effects on foreign currency translation adjustments represent the cumulative net deferred tax liabilities since inception on net investment hedges that were recorded during the three and nine months ended September 30, 2019.
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking
|
|
Other
|
|
Total
|
||||||||
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
170,183
|
|
|
$
|
166,106
|
|
|
$
|
33,518
|
|
|
$
|
369,807
|
|
Provision for credit losses
|
|
4,251
|
|
|
34,033
|
|
|
—
|
|
|
38,284
|
|
||||
Noninterest income
|
|
15,103
|
|
|
33,731
|
|
|
2,640
|
|
|
51,474
|
|
||||
Noninterest expense
|
|
86,489
|
|
|
62,246
|
|
|
27,895
|
|
|
176,630
|
|
||||
Segment income before income taxes
|
|
94,546
|
|
|
103,558
|
|
|
8,263
|
|
|
206,367
|
|
||||
Segment net income
|
|
$
|
67,592
|
|
|
$
|
74,111
|
|
|
$
|
29,713
|
|
|
$
|
171,416
|
|
As of September 30, 2019
|
|
|
|
|
|
|
|
|
|
|||||||
Segment assets
|
|
$
|
11,277,171
|
|
|
$
|
24,885,849
|
|
|
$
|
7,111,639
|
|
|
$
|
43,274,659
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
182,272
|
|
|
$
|
149,770
|
|
|
$
|
16,678
|
|
|
$
|
348,720
|
|
Provision for credit losses
|
|
705
|
|
|
9,837
|
|
|
—
|
|
|
10,542
|
|
||||
Noninterest Income
|
|
13,137
|
|
|
27,861
|
|
|
5,504
|
|
|
46,502
|
|
||||
Noninterest expense
|
|
87,640
|
|
|
57,376
|
|
|
34,799
|
|
|
179,815
|
|
||||
Segment income (loss) before income taxes
|
|
107,064
|
|
|
110,418
|
|
|
(12,617
|
)
|
|
204,865
|
|
||||
Segment net income
|
|
$
|
76,711
|
|
|
$
|
79,344
|
|
|
$
|
15,247
|
|
|
$
|
171,302
|
|
As of September 30, 2018
|
|
|
|
|
|
|
|
|
|
|||||||
Segment assets
|
|
$
|
10,194,291
|
|
|
$
|
22,930,768
|
|
|
$
|
5,917,654
|
|
|
$
|
39,042,713
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
536,153
|
|
|
$
|
477,755
|
|
|
$
|
85,686
|
|
|
$
|
1,099,594
|
|
Provision for credit losses
|
|
8,880
|
|
|
71,228
|
|
|
—
|
|
|
80,108
|
|
||||
Noninterest Income
|
|
43,378
|
|
|
91,931
|
|
|
11,055
|
|
|
146,364
|
|
||||
Noninterest expense
|
|
258,051
|
|
|
200,093
|
|
|
83,071
|
|
|
541,215
|
|
||||
Segment income before income taxes
|
|
312,600
|
|
|
298,365
|
|
|
13,670
|
|
|
624,635
|
|
||||
Segment net income
|
|
$
|
223,478
|
|
|
$
|
213,331
|
|
|
$
|
49,011
|
|
|
$
|
485,820
|
|
As of September 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
11,277,171
|
|
|
$
|
24,885,849
|
|
|
$
|
7,111,639
|
|
|
$
|
43,274,659
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Consumer
and Business Banking |
|
Commercial
Banking |
|
Other
|
|
Total
|
||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Net interest income before provision for credit losses
|
|
$
|
538,568
|
|
|
$
|
448,128
|
|
|
$
|
30,396
|
|
|
$
|
1,017,092
|
|
Provision for credit losses
|
|
7,212
|
|
|
39,084
|
|
|
—
|
|
|
46,296
|
|
||||
Noninterest income
|
|
72,170
|
|
|
86,043
|
|
|
11,001
|
|
|
169,214
|
|
||||
Noninterest expense
|
|
259,416
|
|
|
179,251
|
|
|
87,702
|
|
|
526,369
|
|
||||
Segment income (loss) before income taxes
|
|
344,110
|
|
|
315,836
|
|
|
(46,305
|
)
|
|
613,641
|
|
||||
Segment net income
|
|
$
|
246,555
|
|
|
$
|
226,798
|
|
|
$
|
57,330
|
|
|
$
|
530,683
|
|
As of September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Segment assets
|
|
$
|
10,194,291
|
|
|
$
|
22,930,768
|
|
|
$
|
5,917,654
|
|
|
$
|
39,042,713
|
|
|
|
|
|
Page
|
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|
|
||||||||||||||||||||
($ and shares in thousands, except per share, ratio and headcount data)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||||||
|
September 30,
2019 |
|
June 30,
2019 |
|
September 30,
2018 |
|
September 30,
2019 |
|
September 30,
2018 |
|
|||||||||||
Summary of operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
|
$
|
476,912
|
|
|
$
|
474,844
|
|
|
$
|
422,185
|
|
|
$
|
1,415,067
|
|
|
$
|
1,194,369
|
|
|
Interest expense
|
|
107,105
|
|
|
107,518
|
|
|
73,465
|
|
|
315,473
|
|
|
177,277
|
|
|
|||||
Net interest income before provision for credit losses
|
|
369,807
|
|
|
367,326
|
|
|
348,720
|
|
|
1,099,594
|
|
|
1,017,092
|
|
|
|||||
Provision for credit losses
|
|
38,284
|
|
|
19,245
|
|
|
10,542
|
|
|
80,108
|
|
|
46,296
|
|
|
|||||
Net interest income after provision for credit losses
|
|
331,523
|
|
|
348,081
|
|
|
338,178
|
|
|
1,019,486
|
|
|
970,796
|
|
|
|||||
Noninterest income
|
|
51,474
|
|
|
52,759
|
|
|
46,502
|
|
|
146,364
|
|
|
169,214
|
|
(1)
|
|||||
Noninterest expense
|
|
176,630
|
|
|
177,663
|
|
|
179,815
|
|
|
541,215
|
|
|
526,369
|
|
|
|||||
Income before income taxes
|
|
206,367
|
|
|
223,177
|
|
|
204,865
|
|
|
624,635
|
|
|
613,641
|
|
|
|||||
Income tax expense
|
|
34,951
|
|
|
72,797
|
|
(2)
|
33,563
|
|
|
138,815
|
|
(2)
|
82,958
|
|
|
|||||
Net income
|
|
$
|
171,416
|
|
|
$
|
150,380
|
|
|
$
|
171,302
|
|
|
$
|
485,820
|
|
|
$
|
530,683
|
|
|
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings
|
|
$
|
1.18
|
|
|
$
|
1.03
|
|
|
$
|
1.18
|
|
|
$
|
3.34
|
|
|
$
|
3.66
|
|
|
Diluted earnings
|
|
$
|
1.17
|
|
|
$
|
1.03
|
|
|
$
|
1.17
|
|
|
$
|
3.33
|
|
|
$
|
3.63
|
|
|
Dividends declared
|
|
$
|
0.275
|
|
|
$
|
0.275
|
|
|
$
|
0.230
|
|
|
$
|
0.780
|
|
|
$
|
0.630
|
|
|
Book value
|
|
$
|
33.54
|
|
|
$
|
32.53
|
|
|
$
|
29.29
|
|
|
$
|
33.54
|
|
|
$
|
29.29
|
|
|
Non-United States generally accepted accounting principles (“GAAP”) tangible common equity per share (3)
|
|
$
|
30.22
|
|
|
$
|
29.20
|
|
|
$
|
25.91
|
|
|
$
|
30.22
|
|
|
$
|
25.91
|
|
|
Weighted-average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
145,559
|
|
|
145,546
|
|
|
144,921
|
|
|
145,455
|
|
|
144,829
|
|
|
|||||
Diluted
|
|
146,120
|
|
|
146,052
|
|
|
146,173
|
|
|
146,088
|
|
|
146,158
|
|
|
|||||
Common shares outstanding at period-end
|
|
145,568
|
|
|
145,547
|
|
|
144,929
|
|
|
145,568
|
|
|
144,929
|
|
|
|||||
At period end:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets (4)
|
|
$
|
43,274,659
|
|
|
$
|
42,892,358
|
|
|
$
|
39,042,713
|
|
|
$
|
43,274,659
|
|
|
$
|
39,042,713
|
|
|
Total loans (4)
|
|
$
|
34,025,270
|
|
|
$
|
33,734,256
|
|
|
$
|
31,213,299
|
|
|
$
|
34,025,270
|
|
|
$
|
31,213,299
|
|
|
Available-for-sale investment securities
|
|
$
|
3,284,034
|
|
|
$
|
2,592,913
|
|
|
$
|
2,676,510
|
|
|
$
|
3,284,034
|
|
|
$
|
2,676,510
|
|
|
Total deposits
|
|
$
|
36,659,526
|
|
|
$
|
36,477,542
|
|
|
$
|
33,629,124
|
|
|
$
|
36,659,526
|
|
|
$
|
33,629,124
|
|
|
Long-term debt and finance lease liabilities
|
|
$
|
152,390
|
|
|
$
|
152,506
|
|
|
$
|
156,770
|
|
|
$
|
152,390
|
|
|
$
|
156,770
|
|
|
Federal Home Loan Bank (“FHLB”) advances
|
|
$
|
745,494
|
|
|
$
|
745,074
|
|
|
$
|
325,596
|
|
|
$
|
745,494
|
|
|
$
|
325,596
|
|
|
Stockholders’ equity
|
|
$
|
4,882,664
|
|
|
$
|
4,734,593
|
|
|
$
|
4,244,850
|
|
|
$
|
4,882,664
|
|
|
$
|
4,244,850
|
|
|
Non-GAAP tangible common equity (3)
|
|
$
|
4,399,532
|
|
|
$
|
4,249,944
|
|
|
$
|
3,755,647
|
|
|
$
|
4,399,532
|
|
|
$
|
3,755,647
|
|
|
Head count (full-time equivalent)
|
|
3,282
|
|
|
3,261
|
|
|
2,930
|
|
|
3,282
|
|
|
2,930
|
|
|
|||||
Performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets (“ROA”)
|
|
1.58
|
%
|
|
1.45
|
%
|
|
1.76
|
%
|
|
1.55
|
%
|
|
1.87
|
%
|
|
|||||
Return on average equity (“ROE”)
|
|
14.06
|
%
|
|
12.88
|
%
|
|
16.19
|
%
|
|
13.86
|
%
|
|
17.47
|
%
|
|
|||||
Net interest margin
|
|
3.59
|
%
|
|
3.73
|
%
|
|
3.76
|
%
|
|
3.70
|
%
|
|
3.77
|
%
|
|
|||||
Efficiency ratio (5)
|
|
41.93
|
%
|
|
42.29
|
%
|
|
45.50
|
%
|
|
43.44
|
%
|
|
44.37
|
%
|
|
|||||
Non-GAAP efficiency ratio (3)
|
|
37.66
|
%
|
|
38.03
|
%
|
|
39.89
|
%
|
|
38.47
|
%
|
|
40.13
|
%
|
|
|||||
Credit quality metrics:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
|
$
|
345,576
|
|
|
$
|
330,625
|
|
|
$
|
310,041
|
|
|
$
|
345,576
|
|
|
$
|
310,041
|
|
|
Allowance for loan losses to loans held-for-investment (4)
|
|
1.02
|
%
|
|
0.98
|
%
|
|
0.99
|
%
|
|
1.02
|
%
|
|
0.99
|
%
|
|
|||||
Non-purchased credit-impaired (“PCI”) nonperforming assets to total assets (4)
|
|
0.31
|
%
|
|
0.28
|
%
|
|
0.29
|
%
|
|
0.31
|
%
|
|
0.29
|
%
|
|
|||||
Annualized net charge-offs to average loans held-for-investment
|
|
0.26
|
%
|
|
0.09
|
%
|
|
0.05
|
%
|
|
0.18
|
%
|
|
0.11
|
%
|
|
|||||
Selected metrics:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total average equity to total average assets
|
|
11.22
|
%
|
|
11.28
|
%
|
|
10.86
|
%
|
|
11.21
|
%
|
|
10.72
|
%
|
|
|||||
Common dividend payout ratio
|
|
23.62
|
%
|
|
26.95
|
%
|
|
19.68
|
%
|
|
23.63
|
%
|
|
17.39
|
%
|
|
|||||
Loan-to-deposit ratio (4)
|
|
92.81
|
%
|
|
92.48
|
%
|
|
92.82
|
%
|
|
92.81
|
%
|
|
92.82
|
%
|
|
|||||
EWBC capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Equity Tier 1 (“CET1”) capital
|
|
12.8
|
%
|
|
12.5
|
%
|
|
12.3
|
%
|
|
12.8
|
%
|
|
12.3
|
%
|
|
|||||
Tier 1 capital
|
|
12.8
|
%
|
|
12.5
|
%
|
|
12.3
|
%
|
|
12.8
|
%
|
|
12.3
|
%
|
|
|||||
Total capital
|
|
14.2
|
%
|
|
13.9
|
%
|
|
13.8
|
%
|
|
14.2
|
%
|
|
13.8
|
%
|
|
|||||
Tier 1 leverage capital
|
|
10.3
|
%
|
|
10.4
|
%
|
|
10.0
|
%
|
|
10.3
|
%
|
|
10.0
|
%
|
|
|||||
|
|
|
|
|
|
(1)
|
Includes $31.5 million of pretax gain recognized from the sale of the Desert Community Bank (“DCB”) branches during the first nine months of 2018.
|
(2)
|
Includes $30.1 million of additional tax expense to reverse certain previously claimed tax credits related to the DC Solar tax credit investments during the second quarter of 2019.
|
(3)
|
Tangible common equity, tangible common equity per share and adjusted efficiency ratio are non-GAAP financial measures. For a discussion of these measures, refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-Q.
|
(4)
|
Total assets and loans held-for-investment include PCI loans of $240.7 million, $270.9 million and $345.0 million as of September 30, 2019, June 30, 2019 and September 30, 2018, respectively.
|
(5)
|
The efficiency ratio is noninterest expense divided by total revenue (net interest income before provision for credit losses and noninterest income).
|
•
|
Earnings: Third quarter 2019 net income was $171.4 million or $1.17 in diluted earnings per share (“EPS”), compared with third quarter 2018 net income of $171.3 million or $1.17 in diluted EPS. This slight increase in net income was primarily due to net interest income growth, partially offset by increased provision for credit losses. Net income for the first nine months of 2019 was $485.8 million or $3.33 in diluted EPS, compared with net income of $530.7 million or $3.63 in diluted EPS for the same period in 2018, a decrease of 8%. The year-over-year decrease primarily reflected the $30.1 million of additional income tax expense recorded in the second quarter of 2019 to reverse certain previously claimed tax credits related to DC Solar. Pre-tax income of $624.6 million for the first nine months of 2019 increased $11.0 million or 2% compared with the same period a year ago.
|
•
|
Adjusted Earnings: There were no adjustments for non-recurring items in the third quarters of 2019 and 2018 that affected non-GAAP net income and diluted EPS. Non-GAAP net income and non-GAAP diluted EPS for the first nine months of 2019 were $520.8 million and $3.57, respectively, compared with $508.5 million and $3.48 for the first nine months of 2018, respectively, a year-over-year increase of 2%. During the second quarter of 2019, the Company recorded $30.1 million in additional income tax expense to reverse certain previously claimed tax credits related to DC Solar. During the first quarter of 2019, the Company recorded a $7.0 million pre-tax impairment charge related to DC Solar or $4.9 million after tax (Refer to Item 2. MD&A — Results of Operations — Income Taxes in this Form 10-Q for a discussion related to the Company’s investment in DC Solar). During the first quarter of 2018, the Company recognized a $31.5 million pre-tax gain from the sale of its DCB branches or $22.2 million after tax. (See reconciliations of non-GAAP measures presented under Item 2. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-Q.)
|
•
|
Revenue: Revenue, or the sum of net interest income before provision for credit losses and noninterest income, was $421.3 million for the third quarter of 2019, compared with $395.2 million for the third quarter of 2018, an increase of $26.1 million or 7%. This increase was primarily due to increased net interest income. Revenue for the first nine months of 2019 was $1.25 billion, compared with $1.19 billion for the first nine months of 2018, an increase of $59.7 million or 5%. This increase was primarily due to increased net interest income, partially offset by a decrease in noninterest income. Noninterest income for the first nine months of 2018 included a $31.5 million pre-tax gain from the sale of DCB branches.
|
•
|
Net Interest Income and Net Interest Margin: Third quarter 2019 net interest income was $369.8 million, compared with third quarter 2018 net interest income of $348.7 million, an increase of $21.1 million or 6%. Third quarter 2019 net interest margin was 3.59%, a decrease of 17 basis points from 3.76% for the third quarter of 2018. Net interest income for the first nine months of 2019 was $1.10 billion, compared with $1.02 billion for the first nine months of 2018, an increase of $82.5 million or 8%. Net interest margin was 3.70% for the first nine months of 2019, a decrease of seven basis points from 3.77% for the first nine months of 2018.
|
•
|
Operating Efficiency: Efficiency ratio, calculated as noninterest expense divided by revenue, was 41.93% and 45.50% for the third quarters of 2019 and 2018, respectively. The efficiency ratio was 43.44% and 44.37% for the first nine months of 2019 and 2018, respectively. Adjusting for non-recurring items, amortization of tax credit and other investments, and the amortization of core deposit intangibles, the non-GAAP efficiency ratio for the third quarter 2019 was 37.66%, a 223 basis point improvement from 39.89% for the third quarter of 2018. Adjusting for the amortization of tax credit and other investments, the amortization of core deposit intangibles in both the first nine months of 2019 and 2018, and the $31.5 million pre-tax gain from the sale of the Company’s DCB branches in the first nine months of 2018, the non-GAAP efficiency ratio was 38.47% for the first nine months of 2019, a 166 basis point improvement from 40.13% for the first nine months of 2018. (See reconciliations of non-GAAP measures presented under Item 2. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-Q.)
|
•
|
Tax: The effective tax rates were 16.9% and 16.4% for the third quarters of 2019 and 2018, respectively, and 22.2% and 13.5% for the first nine months of 2019 and 2018, respectively. The higher effective tax rate during the first nine months of 2019 was primarily due to the $30.1 million reversal of certain previously claimed tax credits related to DC Solar in the second quarter of 2019.
|
•
|
Profitability: ROA for the third quarters of 2019 and 2018 were 1.58% and 1.76%, respectively. ROA for the first nine months of 2019 and 2018 were 1.55% and 1.87%, respectively. Third quarters 2019 and 2018 ROE were 14.06% and 16.19%, respectively. ROE for the first nine months of 2019 and 2018 were 13.86% and 17.47%, respectively. Adjusting for non-recurring items that only affected year-to-date calculations, non-GAAP ROA was 1.67% for the first nine months of 2019, compared with 1.80% for the first nine months of 2018. For the first nine months of 2019, non-GAAP ROE was 14.85%, compared with 16.74% for the first nine months of 2018. (See reconciliations of non-GAAP measures presented under Item 2. MD&A — Supplemental Information — Explanation of GAAP and Non-GAAP Financial Measures in this Form 10-Q.)
|
•
|
Loans: Total loans were $34.03 billion as of September 30, 2019, an increase of $1.64 billion or 5% from $32.39 billion as of December 31, 2018. Growth was well-diversified across single-family residential, commercial real estate (“CRE”), and commercial and industrial (“C&I”) loans.
|
•
|
Deposits: Total deposits were $36.66 billion as of September 30, 2019, an increase of $1.22 billion or 3% from $35.44 billion as of December 31, 2018. This increase was primarily due to the $1.45 billion or 16% increase in time deposits.
|
•
|
Asset Quality Metrics: The allowance for loan losses was $345.6 million or 1.02% of loans held-for-investment as of September 30, 2019, compared with $311.3 million or 0.96% of loans held-for-investment as of December 31, 2018. Non-PCI nonperforming assets were $134.5 million or 0.31% of total assets as of September 30, 2019, an increase from $93.0 million or 0.23% of total assets as of December 31, 2018. Third quarter 2019 net charge-offs were $22.5 million or annualized 0.26% of average loans held-for-investment, an increase from $3.7 million or annualized 0.05% of average loans held-for-investment for the third quarter of 2018. For the first nine months of 2019, net charge-offs were $44.5 million or annualized 0.18% of average loans held-for-investment, compared with $24.1 million or annualized 0.11% of average loans held-for-investment for the first nine months of 2018.
|
•
|
Capital Levels: Our capital levels are strong. As of September 30, 2019, all of the Company’s and the Bank’s regulatory capital ratios were well above the required well-capitalized levels. See Item 2. MD&A — Balance Sheet Analysis — Regulatory Capital and Ratios in this Form 10-Q for more information regarding capital.
|
•
|
Cash Dividend Increase: The quarterly cash common stock dividend for the third quarter of 2019 was $0.275 per share, an increase of $0.045 or 20% from $0.23 per share for the third quarter of 2018. The Company returned $40.5 million and $114.8 million in cash dividends to stockholders during the third quarter and the first nine months of 2019, respectively, compared with $33.7 million and $92.3 million during the same periods in 2018.
|
|
||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate (1)
|
|
Average
Balance |
|
Interest
|
|
Average
Yield/
Rate (1)
|
|||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
3,547,626
|
|
|
$
|
19,772
|
|
|
2.21
|
%
|
|
$
|
2,521,002
|
|
|
$
|
13,353
|
|
|
2.10
|
%
|
Securities purchased under resale agreements (“Resale agreements”) (2)
|
|
981,196
|
|
|
6,881
|
|
|
2.78
|
%
|
|
1,002,500
|
|
|
7,393
|
|
|
2.93
|
%
|
||||
Available-for-sale investment securities (3)(4)
|
|
2,651,069
|
|
|
15,945
|
|
|
2.39
|
%
|
|
2,727,219
|
|
|
15,180
|
|
|
2.21
|
%
|
||||
Loans (5)(6)
|
|
33,661,282
|
|
|
433,658
|
|
|
5.11
|
%
|
|
30,498,037
|
|
|
385,538
|
|
|
5.02
|
%
|
||||
Restricted equity securities
|
|
78,213
|
|
|
656
|
|
|
3.33
|
%
|
|
73,535
|
|
|
721
|
|
|
3.89
|
%
|
||||
Total interest-earning assets
|
|
$
|
40,919,386
|
|
|
$
|
476,912
|
|
|
4.62
|
%
|
|
$
|
36,822,293
|
|
|
$
|
422,185
|
|
|
4.55
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
441,898
|
|
|
|
|
|
|
424,350
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(328,523
|
)
|
|
|
|
|
|
(301,557
|
)
|
|
|
|
|
||||||||
Other assets
|
|
2,103,512
|
|
|
|
|
|
|
1,714,176
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
43,136,273
|
|
|
|
|
|
|
$
|
38,659,262
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Checking deposits
|
|
$
|
4,947,511
|
|
|
$
|
14,488
|
|
|
1.16
|
%
|
|
$
|
4,515,256
|
|
|
$
|
9,551
|
|
|
0.84
|
%
|
Money market deposits
|
|
8,344,993
|
|
|
26,943
|
|
|
1.28
|
%
|
|
7,613,030
|
|
|
21,411
|
|
|
1.12
|
%
|
||||
Savings deposits
|
|
2,154,592
|
|
|
2,656
|
|
|
0.49
|
%
|
|
2,194,792
|
|
|
2,308
|
|
|
0.42
|
%
|
||||
Time deposits
|
|
10,337,990
|
|
|
52,733
|
|
|
2.02
|
%
|
|
8,277,129
|
|
|
31,762
|
|
|
1.52
|
%
|
||||
Federal funds purchased and other short-term borrowings
|
|
40,433
|
|
|
382
|
|
|
3.75
|
%
|
|
58,218
|
|
|
643
|
|
|
4.38
|
%
|
||||
FHLB advances
|
|
745,263
|
|
|
5,021
|
|
|
2.67
|
%
|
|
325,246
|
|
|
2,732
|
|
|
3.33
|
%
|
||||
Repurchase agreements (2)
|
|
50,000
|
|
|
3,239
|
|
|
25.70
|
%
|
|
50,000
|
|
|
3,366
|
|
|
26.71
|
%
|
||||
Long-term debt and finance lease liabilities
|
|
152,471
|
|
|
1,643
|
|
|
4.28
|
%
|
|
156,794
|
|
|
1,692
|
|
|
4.28
|
%
|
||||
Total interest-bearing liabilities
|
|
$
|
26,773,253
|
|
|
$
|
107,105
|
|
|
1.59
|
%
|
|
$
|
23,190,465
|
|
|
$
|
73,465
|
|
|
1.26
|
%
|
Noninterest-bearing liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand deposits
|
|
10,712,612
|
|
|
|
|
|
|
10,639,554
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
|
812,127
|
|
|
|
|
|
|
631,568
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
4,838,281
|
|
|
|
|
|
|
4,197,675
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
43,136,273
|
|
|
|
|
|
|
$
|
38,659,262
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.03
|
%
|
|
|
|
|
|
3.29
|
%
|
||||||||
Net interest income and net interest margin
|
|
|
|
$
|
369,807
|
|
|
3.59
|
%
|
|
|
|
$
|
348,720
|
|
|
3.76
|
%
|
||||
|
(1)
|
Annualized.
|
(2)
|
Average balances of resale and repurchase agreements have been reported net, pursuant to Accounting Standards Codification (“ASC”) 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale agreements were 2.57% and 2.63% for the third quarters of 2019 and 2018, respectively. The weighted-average interest rates of gross repurchase agreements were 4.68% and 4.65% for the third quarters of 2019 and 2018, respectively.
|
(3)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
(4)
|
Includes the amortization of premiums on investment securities of $3.0 million and $3.4 million for the third quarters of 2019 and 2018, respectively.
|
(5)
|
Average balances include nonperforming loans and loans held-for-sale.
|
(6)
|
Includes the accretion of net deferred loan fees, unearned fees and ASC 310-30 discounts, and amortization of premiums, which totaled $7.8 million and $8.6 million for the third quarters of 2019 and 2018, respectively.
|
|
||||||||||||||||||||||
($ in thousands)
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate (1)
|
|
Average
Balance |
|
Interest
|
|
Average
Yield/
Rate (1)
|
|||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
2,996,340
|
|
|
$
|
52,103
|
|
|
2.32
|
%
|
|
$
|
2,387,712
|
|
|
$
|
36,013
|
|
|
2.02
|
%
|
Resale agreements (2)
|
|
1,005,147
|
|
|
22,070
|
|
|
2.94
|
%
|
|
1,016,044
|
|
|
21,509
|
|
|
2.83
|
%
|
||||
Available-for-sale investment securities (3)(4)
|
|
2,614,949
|
|
|
47,378
|
|
|
2.42
|
%
|
|
2,771,727
|
|
|
45,695
|
|
|
2.20
|
%
|
||||
Loans (5)(6)
|
|
33,023,713
|
|
|
1,291,642
|
|
|
5.23
|
%
|
|
29,790,281
|
|
|
1,088,997
|
|
|
4.89
|
%
|
||||
Restricted equity securities
|
|
76,313
|
|
|
1,874
|
|
|
3.28
|
%
|
|
73,618
|
|
|
2,155
|
|
|
3.91
|
%
|
||||
Total interest-earning assets
|
|
$
|
39,716,462
|
|
|
$
|
1,415,067
|
|
|
4.76
|
%
|
|
$
|
36,039,382
|
|
|
$
|
1,194,369
|
|
|
4.43
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
449,739
|
|
|
|
|
|
|
433,299
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(321,486
|
)
|
|
|
|
|
|
(293,403
|
)
|
|
|
|
|
||||||||
Other assets
|
|
1,970,775
|
|
|
|
|
|
|
1,695,156
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
41,815,490
|
|
|
|
|
|
|
$
|
37,874,434
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Checking deposits
|
|
$
|
5,145,308
|
|
|
$
|
44,579
|
|
|
1.16
|
%
|
|
$
|
4,487,314
|
|
|
$
|
24,694
|
|
|
0.74
|
%
|
Money market deposits
|
|
8,094,933
|
|
|
85,858
|
|
|
1.42
|
%
|
|
7,919,845
|
|
|
56,056
|
|
|
0.95
|
%
|
||||
Savings deposits
|
|
2,117,773
|
|
|
7,360
|
|
|
0.46
|
%
|
|
2,286,402
|
|
|
6,364
|
|
|
0.37
|
%
|
||||
Time deposits
|
|
9,887,274
|
|
|
148,992
|
|
|
2.01
|
%
|
|
6,976,359
|
|
|
68,319
|
|
|
1.31
|
%
|
||||
Federal funds purchased and other short-term borrowings
|
|
45,410
|
|
|
1,359
|
|
|
4.00
|
%
|
|
23,805
|
|
|
774
|
|
|
4.35
|
%
|
||||
FHLB advances
|
|
540,535
|
|
|
12,011
|
|
|
2.97
|
%
|
|
327,978
|
|
|
7,544
|
|
|
3.08
|
%
|
||||
Repurchase agreements (2)
|
|
50,000
|
|
|
10,200
|
|
|
27.27
|
%
|
|
50,000
|
|
|
8,714
|
|
|
23.30
|
%
|
||||
Long-term debt and finance lease liabilities
|
|
152,480
|
|
|
5,114
|
|
|
4.48
|
%
|
|
161,691
|
|
|
4,812
|
|
|
3.98
|
%
|
||||
Total interest-bearing liabilities
|
|
$
|
26,033,713
|
|
|
$
|
315,473
|
|
|
1.62
|
%
|
|
$
|
22,233,394
|
|
|
$
|
177,277
|
|
|
1.07
|
%
|
Noninterest-bearing liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand deposits
|
|
10,342,966
|
|
|
|
|
|
|
10,968,958
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
|
751,065
|
|
|
|
|
|
|
610,105
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
4,687,746
|
|
|
|
|
|
|
4,061,977
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
41,815,490
|
|
|
|
|
|
|
$
|
37,874,434
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.14
|
%
|
|
|
|
|
|
3.36
|
%
|
||||||||
Net interest income and net interest margin
|
|
|
|
$
|
1,099,594
|
|
|
3.70
|
%
|
|
|
|
$
|
1,017,092
|
|
|
3.77
|
%
|
||||
|
(1)
|
Annualized.
|
(2)
|
Average balances of resale and repurchase agreements have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale agreements were 2.69% and 2.59% for the first nine months of 2019 and 2018, respectively. The weighted-average interest rates of gross repurchase agreements were 4.87% and 4.36% for the first nine months of 2019 and 2018, respectively.
|
(3)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
(4)
|
Includes the amortization of premiums on investment securities of $9.0 million and $11.6 million for the first nine months of 2019 and 2018, respectively.
|
(5)
|
Average balances include nonperforming loans and loans held-for-sale.
|
(6)
|
Includes the accretion of net deferred loan fees, unearned fees and ASC 310-30 discounts, and amortization of premiums, which totaled $24.6 million and $28.0 million for the first nine months of 2019 and 2018, respectively.
|
|
||||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2019 vs. 2018
|
|
2019 vs. 2018
|
|||||||||||||||||||||
|
Total
Change
|
|
Changes Due to
|
|
Total
Change
|
|
Changes Due to
|
|||||||||||||||||
|
|
Volume
|
|
Yield/Rate
|
|
|
Volume
|
|
Yield/Rate
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing cash and deposits with banks
|
|
$
|
6,419
|
|
|
$
|
5,689
|
|
|
$
|
730
|
|
|
$
|
16,090
|
|
|
$
|
10,057
|
|
|
$
|
6,033
|
|
Resale agreements
|
|
(512
|
)
|
|
(155
|
)
|
|
(357
|
)
|
|
561
|
|
|
(233
|
)
|
|
794
|
|
||||||
Available-for-sale investment securities
|
|
765
|
|
|
(433
|
)
|
|
1,198
|
|
|
1,683
|
|
|
(2,678
|
)
|
|
4,361
|
|
||||||
Loans
|
|
48,120
|
|
|
40,633
|
|
|
7,487
|
|
|
202,645
|
|
|
123,227
|
|
|
79,418
|
|
||||||
Restricted equity securities
|
|
(65
|
)
|
|
44
|
|
|
(109
|
)
|
|
(281
|
)
|
|
77
|
|
|
(358
|
)
|
||||||
Total interest and dividend income
|
|
$
|
54,727
|
|
|
$
|
45,778
|
|
|
$
|
8,949
|
|
|
$
|
220,698
|
|
|
$
|
130,450
|
|
|
$
|
90,248
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Checking deposits
|
|
$
|
4,937
|
|
|
$
|
984
|
|
|
$
|
3,953
|
|
|
$
|
19,885
|
|
|
$
|
4,044
|
|
|
$
|
15,841
|
|
Money market deposits
|
|
5,532
|
|
|
2,179
|
|
|
3,353
|
|
|
29,802
|
|
|
1,265
|
|
|
28,537
|
|
||||||
Savings deposits
|
|
348
|
|
|
(43
|
)
|
|
391
|
|
|
996
|
|
|
(496
|
)
|
|
1,492
|
|
||||||
Time deposits
|
|
20,971
|
|
|
9,029
|
|
|
11,942
|
|
|
80,673
|
|
|
35,210
|
|
|
45,463
|
|
||||||
Federal funds purchased and other short-term borrowings
|
|
(261
|
)
|
|
(177
|
)
|
|
(84
|
)
|
|
585
|
|
|
651
|
|
|
(66
|
)
|
||||||
FHLB advances
|
|
2,289
|
|
|
2,923
|
|
|
(634
|
)
|
|
4,467
|
|
|
4,731
|
|
|
(264
|
)
|
||||||
Repurchase agreements
|
|
(127
|
)
|
|
—
|
|
|
(127
|
)
|
|
1,486
|
|
|
—
|
|
|
1,486
|
|
||||||
Long-term debt and finance lease liabilities
|
|
(49
|
)
|
|
(47
|
)
|
|
(2
|
)
|
|
302
|
|
|
(285
|
)
|
|
587
|
|
||||||
Total interest expense
|
|
$
|
33,640
|
|
|
$
|
14,848
|
|
|
$
|
18,792
|
|
|
$
|
138,196
|
|
|
$
|
45,120
|
|
|
$
|
93,076
|
|
Change in net interest income
|
|
$
|
21,087
|
|
|
$
|
30,930
|
|
|
$
|
(9,843
|
)
|
|
$
|
82,502
|
|
|
$
|
85,330
|
|
|
$
|
(2,828
|
)
|
|
|
||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|||||||||||
Lending fees
|
|
$
|
14,846
|
|
|
$
|
15,367
|
|
|
(3
|
)%
|
|
$
|
45,884
|
|
|
$
|
44,072
|
|
|
4
|
%
|
Deposit account fees
|
|
9,918
|
|
|
9,777
|
|
|
1
|
%
|
|
29,347
|
|
|
30,347
|
|
|
(3
|
)%
|
||||
Foreign exchange income
|
|
8,065
|
|
|
6,077
|
|
|
33
|
%
|
|
20,366
|
|
|
14,069
|
|
|
45
|
%
|
||||
Wealth management fees
|
|
4,841
|
|
|
3,535
|
|
|
37
|
%
|
|
12,453
|
|
|
10,989
|
|
|
13
|
%
|
||||
Interest rate contracts and other derivative income
|
|
8,423
|
|
|
4,595
|
|
|
83
|
%
|
|
22,037
|
|
|
17,855
|
|
|
23
|
%
|
||||
Net gains on sales of loans
|
|
2,037
|
|
|
1,145
|
|
|
78
|
%
|
|
2,967
|
|
|
5,081
|
|
|
(42
|
)%
|
||||
Net gains on sales of available-for-sale investment securities
|
|
58
|
|
|
35
|
|
|
66
|
%
|
|
3,066
|
|
|
2,374
|
|
|
29
|
%
|
||||
Net gains on sales of fixed assets
|
|
48
|
|
|
3,402
|
|
|
(99
|
)%
|
|
48
|
|
|
5,602
|
|
|
(99
|
)%
|
||||
Net gain on sale of business
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
31,470
|
|
|
(100
|
)%
|
||||
Other income
|
|
3,238
|
|
|
2,569
|
|
|
26
|
%
|
|
10,196
|
|
|
7,355
|
|
|
39
|
%
|
||||
Total noninterest income
|
|
$
|
51,474
|
|
|
$
|
46,502
|
|
|
11
|
%
|
|
$
|
146,364
|
|
|
$
|
169,214
|
|
|
(14
|
)%
|
|
|
||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|||||||||||
Compensation and employee benefits
|
|
$
|
97,819
|
|
|
$
|
96,733
|
|
|
1
|
%
|
|
$
|
300,649
|
|
|
$
|
285,832
|
|
|
5
|
%
|
Occupancy and equipment expense
|
|
17,912
|
|
|
17,292
|
|
|
4
|
%
|
|
52,592
|
|
|
50,879
|
|
|
3
|
%
|
||||
Deposit insurance premiums and regulatory assessments
|
|
3,550
|
|
|
6,013
|
|
|
(41
|
)%
|
|
9,557
|
|
|
18,118
|
|
|
(47
|
)%
|
||||
Legal expense
|
|
1,720
|
|
|
1,544
|
|
|
11
|
%
|
|
6,300
|
|
|
6,636
|
|
|
(5
|
)%
|
||||
Data processing
|
|
3,328
|
|
|
3,289
|
|
|
1
|
%
|
|
9,945
|
|
|
10,017
|
|
|
(1
|
)%
|
||||
Consulting expense
|
|
2,559
|
|
|
2,683
|
|
|
(5
|
)%
|
|
6,687
|
|
|
10,155
|
|
|
(34
|
)%
|
||||
Deposit related expense
|
|
3,584
|
|
|
2,600
|
|
|
38
|
%
|
|
10,426
|
|
|
8,201
|
|
|
27
|
%
|
||||
Computer software expense
|
|
6,556
|
|
|
5,478
|
|
|
20
|
%
|
|
18,845
|
|
|
16,081
|
|
|
17
|
%
|
||||
Other operating expense
|
|
22,769
|
|
|
23,394
|
|
|
(3
|
)%
|
|
67,737
|
|
|
61,780
|
|
|
10
|
%
|
||||
Amortization of tax credit and other investments
|
|
16,833
|
|
|
20,789
|
|
|
(19
|
)%
|
|
58,477
|
|
|
58,670
|
|
|
—
|
%
|
||||
Total noninterest expense
|
|
$
|
176,630
|
|
|
$
|
179,815
|
|
|
(2
|
)%
|
|
$
|
541,215
|
|
|
$
|
526,369
|
|
|
3
|
%
|
|
|
||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|||||||||||
Income before income taxes
|
|
$
|
206,367
|
|
|
$
|
204,865
|
|
|
1
|
%
|
|
$
|
624,635
|
|
|
$
|
613,641
|
|
|
2
|
%
|
Income tax expense
|
|
$
|
34,951
|
|
|
$
|
33,563
|
|
|
4
|
%
|
|
$
|
138,815
|
|
|
$
|
82,958
|
|
|
67
|
%
|
Effective tax rate
|
|
16.9
|
%
|
|
16.4
|
%
|
|
|
|
|
22.2
|
%
|
|
13.5
|
%
|
|
|
|
||||
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30, 2019
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
170,183
|
|
|
$
|
166,106
|
|
|
$
|
33,518
|
|
|
$
|
369,807
|
|
Provision for credit losses
|
|
4,251
|
|
|
34,033
|
|
|
—
|
|
|
38,284
|
|
||||
Noninterest income
|
|
15,103
|
|
|
33,731
|
|
|
2,640
|
|
|
51,474
|
|
||||
Noninterest expense
|
|
86,489
|
|
|
62,246
|
|
|
27,895
|
|
|
176,630
|
|
||||
Segment income before income taxes
|
|
94,546
|
|
|
103,558
|
|
|
8,263
|
|
|
206,367
|
|
||||
Segment net income
|
|
$
|
67,592
|
|
|
$
|
74,111
|
|
|
$
|
29,713
|
|
|
$
|
171,416
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30, 2018
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
182,272
|
|
|
$
|
149,770
|
|
|
$
|
16,678
|
|
|
$
|
348,720
|
|
Provision for credit losses
|
|
705
|
|
|
9,837
|
|
|
—
|
|
|
10,542
|
|
||||
Noninterest income
|
|
13,137
|
|
|
27,861
|
|
|
5,504
|
|
|
46,502
|
|
||||
Noninterest expense
|
|
87,640
|
|
|
57,376
|
|
|
34,799
|
|
|
179,815
|
|
||||
Segment income (loss) before income taxes
|
|
107,064
|
|
|
110,418
|
|
|
(12,617
|
)
|
|
204,865
|
|
||||
Segment net income
|
|
$
|
76,711
|
|
|
$
|
79,344
|
|
|
$
|
15,247
|
|
|
$
|
171,302
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
536,153
|
|
|
$
|
477,755
|
|
|
$
|
85,686
|
|
|
$
|
1,099,594
|
|
Provision for credit losses
|
|
8,880
|
|
|
71,228
|
|
|
—
|
|
|
80,108
|
|
||||
Noninterest income
|
|
43,378
|
|
|
91,931
|
|
|
11,055
|
|
|
146,364
|
|
||||
Noninterest expense
|
|
258,051
|
|
|
200,093
|
|
|
83,071
|
|
|
541,215
|
|
||||
Segment income before income taxes
|
|
312,600
|
|
|
298,365
|
|
|
13,670
|
|
|
624,635
|
|
||||
Segment net income
|
|
$
|
223,478
|
|
|
$
|
213,331
|
|
|
$
|
49,011
|
|
|
$
|
485,820
|
|
|
|
|
|
||||||||||||||||
($ in thousands)
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
Consumer
and
Business
Banking
|
|
Commercial
Banking
|
|
Other
|
|
Total
|
|||||||||
Net interest income before provision for credit losses
|
|
$
|
538,568
|
|
|
$
|
448,128
|
|
|
$
|
30,396
|
|
|
$
|
1,017,092
|
|
Provision for credit losses
|
|
7,212
|
|
|
39,084
|
|
|
—
|
|
|
46,296
|
|
||||
Noninterest income
|
|
72,170
|
|
|
86,043
|
|
|
11,001
|
|
|
169,214
|
|
||||
Noninterest expense
|
|
259,416
|
|
|
179,251
|
|
|
87,702
|
|
|
526,369
|
|
||||
Segment income (loss) before income taxes
|
|
344,110
|
|
|
315,836
|
|
|
(46,305
|
)
|
|
613,641
|
|
||||
Segment net income
|
|
$
|
246,555
|
|
|
$
|
226,798
|
|
|
$
|
57,330
|
|
|
$
|
530,683
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
|
Change
|
|||||||||
|
|
|
$
|
|
%
|
||||||||||
|
|
(Unaudited)
|
|
|
|
|
|
|
|||||||
ASSETS
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
|
$
|
3,042,281
|
|
|
$
|
3,001,377
|
|
|
$
|
40,904
|
|
|
1
|
%
|
Interest-bearing deposits with banks
|
|
160,423
|
|
|
371,000
|
|
|
(210,577
|
)
|
|
(57
|
)%
|
|||
Resale agreements
|
|
860,000
|
|
|
1,035,000
|
|
|
(175,000
|
)
|
|
(17
|
)%
|
|||
Available-for-sale investment securities, at fair value
|
|
3,284,034
|
|
|
2,741,847
|
|
|
542,187
|
|
|
20
|
%
|
|||
Restricted equity securities, at cost
|
|
78,334
|
|
|
74,069
|
|
|
4,265
|
|
|
6
|
%
|
|||
Loans held-for-sale
|
|
294
|
|
|
275
|
|
|
19
|
|
|
7
|
%
|
|||
Loans held-for-investment (net of allowance for loan losses of $345,576 in 2019 and $311,322 in 2018)
|
|
33,679,400
|
|
|
32,073,867
|
|
|
1,605,533
|
|
|
5
|
%
|
|||
Investments in qualified affordable housing partnerships, net
|
|
190,000
|
|
|
184,873
|
|
|
5,127
|
|
|
3
|
%
|
|||
Investments in tax credit and other investments, net
|
|
211,603
|
|
|
231,635
|
|
|
(20,032
|
)
|
|
(9
|
)%
|
|||
Premises and equipment
|
|
120,859
|
|
|
119,180
|
|
|
1,679
|
|
|
1
|
%
|
|||
Goodwill
|
|
465,697
|
|
|
465,547
|
|
|
150
|
|
|
0
|
%
|
|||
Operating lease right-of-use assets
|
|
103,894
|
|
|
—
|
|
|
103,894
|
|
|
100
|
%
|
|||
Other assets
|
|
1,077,840
|
|
|
743,686
|
|
|
334,154
|
|
|
45
|
%
|
|||
TOTAL
|
|
$
|
43,274,659
|
|
|
$
|
41,042,356
|
|
|
$
|
2,232,303
|
|
|
5
|
%
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing
|
|
$
|
10,806,937
|
|
|
$
|
11,377,009
|
|
|
$
|
(570,072
|
)
|
|
(5
|
)%
|
Interest-bearing
|
|
25,852,589
|
|
|
24,062,619
|
|
|
1,789,970
|
|
|
7
|
%
|
|||
Total deposits
|
|
36,659,526
|
|
|
35,439,628
|
|
|
1,219,898
|
|
|
3
|
%
|
|||
Short-term borrowings
|
|
47,689
|
|
|
57,638
|
|
|
(9,949
|
)
|
|
(17
|
)%
|
|||
FHLB advances
|
|
745,494
|
|
|
326,172
|
|
|
419,322
|
|
|
129
|
%
|
|||
Repurchase agreements
|
|
50,000
|
|
|
50,000
|
|
|
—
|
|
|
—
|
%
|
|||
Long-term debt and finance lease liabilities
|
|
152,390
|
|
|
146,835
|
|
|
5,555
|
|
|
4
|
%
|
|||
Operating lease liabilities
|
|
112,142
|
|
|
—
|
|
|
112,142
|
|
|
100
|
%
|
|||
Accrued expenses and other liabilities
|
|
624,754
|
|
|
598,109
|
|
|
26,645
|
|
|
4
|
%
|
|||
Total liabilities
|
|
38,391,995
|
|
|
36,618,382
|
|
|
1,773,613
|
|
|
5
|
%
|
|||
STOCKHOLDERS’ EQUITY
|
|
4,882,664
|
|
|
4,423,974
|
|
|
458,690
|
|
|
10
|
%
|
|||
TOTAL
|
|
$
|
43,274,659
|
|
|
$
|
41,042,356
|
|
|
$
|
2,232,303
|
|
|
5
|
%
|
|
•
|
interest income for earnings and yield enhancement;
|
•
|
availability for funding needs that arise during the normal course of business;
|
•
|
the ability to execute interest rate risk management strategies in response to changes in economic or market conditions; and
|
•
|
collateral to support pledging agreements as required and/or to enhance the Company’s borrowing capacity.
|
|
||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
427,535
|
|
|
$
|
426,113
|
|
|
$
|
577,561
|
|
|
$
|
564,815
|
|
U.S. government agency and U.S. government sponsored enterprise debt securities
|
|
688,529
|
|
|
691,368
|
|
|
219,485
|
|
|
217,173
|
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities
|
|
1,454,336
|
|
|
1,475,180
|
|
|
1,377,705
|
|
|
1,355,296
|
|
||||
Municipal securities
|
|
76,948
|
|
|
78,159
|
|
|
82,965
|
|
|
82,020
|
|
||||
Non-agency mortgage-backed securities
|
|
98,727
|
|
|
101,738
|
|
|
35,935
|
|
|
35,983
|
|
||||
Corporate debt securities
|
|
11,250
|
|
|
11,022
|
|
|
11,250
|
|
|
10,869
|
|
||||
Foreign bonds
|
|
454,431
|
|
|
453,179
|
|
|
489,378
|
|
|
463,048
|
|
||||
Asset-backed securities
|
|
48,028
|
|
|
47,275
|
|
|
12,621
|
|
|
12,643
|
|
||||
Total available-for-sale investment securities
|
|
$
|
3,259,784
|
|
|
$
|
3,284,034
|
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
|
||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
Amortized
Cost |
|
Fair
Value
|
|
Yield (1)
|
|
Amortized
Cost |
|
Fair
Value
|
|
Yield (1)
|
|||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
$
|
199,786
|
|
|
$
|
199,711
|
|
|
1.80
|
%
|
|
$
|
50,134
|
|
|
$
|
49,773
|
|
|
1.08
|
%
|
Maturing after one year through five years
|
|
227,749
|
|
|
226,402
|
|
|
1.35
|
%
|
|
527,427
|
|
|
515,042
|
|
|
1.69
|
%
|
||||
Total
|
|
427,535
|
|
|
426,113
|
|
|
1.56
|
%
|
|
577,561
|
|
|
564,815
|
|
|
1.64
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
406,381
|
|
|
406,572
|
|
|
2.17
|
%
|
|
26,955
|
|
|
26,909
|
|
|
3.51
|
%
|
||||
Maturing after one year through five years
|
|
133,500
|
|
|
133,713
|
|
|
2.71
|
%
|
|
10,181
|
|
|
10,037
|
|
|
2.18
|
%
|
||||
Maturing after five years through ten years
|
|
94,900
|
|
|
95,510
|
|
|
2.21
|
%
|
|
114,771
|
|
|
113,812
|
|
|
2.30
|
%
|
||||
Maturing after ten years
|
|
53,748
|
|
|
55,573
|
|
|
2.78
|
%
|
|
67,578
|
|
|
66,415
|
|
|
2.79
|
%
|
||||
Total
|
|
688,529
|
|
|
691,368
|
|
|
2.33
|
%
|
|
219,485
|
|
|
217,173
|
|
|
2.59
|
%
|
||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
2,986
|
|
|
2,983
|
|
|
1.76
|
%
|
|
2,633
|
|
|
2,600
|
|
|
1.62
|
%
|
||||
Maturing after one year through five years
|
|
26,631
|
|
|
26,841
|
|
|
2.25
|
%
|
|
30,808
|
|
|
30,487
|
|
|
2.11
|
%
|
||||
Maturing after five years through ten years
|
|
78,533
|
|
|
81,705
|
|
|
2.74
|
%
|
|
96,822
|
|
|
95,365
|
|
|
2.68
|
%
|
||||
Maturing after ten years
|
|
1,346,186
|
|
|
1,363,651
|
|
|
2.64
|
%
|
|
1,247,442
|
|
|
1,226,844
|
|
|
2.74
|
%
|
||||
Total
|
|
1,454,336
|
|
|
1,475,180
|
|
|
2.63
|
%
|
|
1,377,705
|
|
|
1,355,296
|
|
|
2.72
|
%
|
||||
Municipal securities (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
35,580
|
|
|
35,720
|
|
|
2.65
|
%
|
|
29,167
|
|
|
28,974
|
|
|
2.60
|
%
|
||||
Maturing after one year through five years
|
|
24,777
|
|
|
25,080
|
|
|
2.47
|
%
|
|
48,398
|
|
|
47,681
|
|
|
2.39
|
%
|
||||
Maturing after five years through ten years
|
|
12,200
|
|
|
12,766
|
|
|
3.15
|
%
|
|
500
|
|
|
476
|
|
|
2.38
|
%
|
||||
Maturing after ten years
|
|
4,391
|
|
|
4,593
|
|
|
3.40
|
%
|
|
4,900
|
|
|
4,889
|
|
|
5.03
|
%
|
||||
Total
|
|
76,948
|
|
|
78,159
|
|
|
2.71
|
%
|
|
82,965
|
|
|
82,020
|
|
|
2.62
|
%
|
||||
Non-agency mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after one year through five years
|
|
7,920
|
|
|
7,914
|
|
|
3.90
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Maturing after ten years
|
|
90,807
|
|
|
93,824
|
|
|
3.30
|
%
|
|
35,935
|
|
|
35,983
|
|
|
3.67
|
%
|
||||
Total
|
|
98,727
|
|
|
101,738
|
|
|
3.35
|
%
|
|
35,935
|
|
|
35,983
|
|
|
3.67
|
%
|
||||
Corporate debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
1,250
|
|
|
1,247
|
|
|
5.42
|
%
|
|
1,250
|
|
|
1,231
|
|
|
5.50
|
%
|
||||
Maturing after one year through five years
|
|
10,000
|
|
|
9,775
|
|
|
4.00
|
%
|
|
10,000
|
|
|
9,638
|
|
|
4.00
|
%
|
||||
Total
|
|
11,250
|
|
|
11,022
|
|
|
4.16
|
%
|
|
11,250
|
|
|
10,869
|
|
|
4.17
|
%
|
||||
Foreign bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
454,431
|
|
|
453,179
|
|
|
2.33
|
%
|
|
439,378
|
|
|
414,065
|
|
|
2.19
|
%
|
||||
Maturing after one year through five years
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
50,000
|
|
|
48,983
|
|
|
3.12
|
%
|
||||
Total
|
|
454,431
|
|
|
453,179
|
|
|
2.33
|
%
|
|
489,378
|
|
|
463,048
|
|
|
2.28
|
%
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing after ten years
|
|
48,028
|
|
|
47,275
|
|
|
2.53
|
%
|
|
12,621
|
|
|
12,643
|
|
|
3.22
|
%
|
||||
Total available-for-sale investment securities
|
|
$
|
3,259,784
|
|
|
$
|
3,284,034
|
|
|
2.42
|
%
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
2.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maturing in one year or less
|
|
$
|
1,100,414
|
|
|
$
|
1,099,412
|
|
|
2.19
|
%
|
|
$
|
549,517
|
|
|
$
|
523,552
|
|
|
2.18
|
%
|
Maturing after one year through five years
|
|
430,577
|
|
|
429,725
|
|
|
2.00
|
%
|
|
676,814
|
|
|
661,868
|
|
|
1.91
|
%
|
||||
Maturing after five years through ten years
|
|
185,633
|
|
|
189,981
|
|
|
2.50
|
%
|
|
212,093
|
|
|
209,653
|
|
|
2.47
|
%
|
||||
Maturing after ten years
|
|
1,543,160
|
|
|
1,564,916
|
|
|
2.68
|
%
|
|
1,368,476
|
|
|
1,346,774
|
|
|
2.78
|
%
|
||||
Total available-for-sale investment securities
|
|
$
|
3,259,784
|
|
|
$
|
3,284,034
|
|
|
2.42
|
%
|
|
$
|
2,806,900
|
|
|
$
|
2,741,847
|
|
|
2.43
|
%
|
|
(1)
|
Weighted-average yields are computed based on amortized cost balances.
|
(2)
|
Yields on tax-exempt securities are not presented on a tax-equivalent basis.
|
|
|||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
|
Change
|
|||||||||
|
Amount (1)
|
|
Amount (1)
|
|
$
|
|
%
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|||||||
C&I
|
|
$
|
12,301,002
|
|
|
$
|
12,056,970
|
|
|
$
|
244,032
|
|
|
2
|
%
|
CRE
|
|
9,749,583
|
|
|
9,260,199
|
|
|
489,384
|
|
|
5
|
%
|
|||
Multifamily residential
|
|
2,589,203
|
|
|
2,470,668
|
|
|
118,535
|
|
|
5
|
%
|
|||
Construction and land
|
|
719,900
|
|
|
538,794
|
|
|
181,106
|
|
|
34
|
%
|
|||
Total commercial
|
|
25,359,688
|
|
|
24,326,631
|
|
|
1,033,057
|
|
|
4
|
%
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
6,811,014
|
|
|
6,036,454
|
|
|
774,560
|
|
|
13
|
%
|
|||
HELOCs
|
|
1,540,121
|
|
|
1,690,834
|
|
|
(150,713
|
)
|
|
(9
|
)%
|
|||
Other consumer
|
|
314,153
|
|
|
331,270
|
|
|
(17,117
|
)
|
|
(5
|
)%
|
|||
Total consumer
|
|
8,665,288
|
|
|
8,058,558
|
|
|
606,730
|
|
|
8
|
%
|
|||
Total loans held-for-investment (2)
|
|
$
|
34,024,976
|
|
|
$
|
32,385,189
|
|
|
$
|
1,639,787
|
|
|
5
|
%
|
Allowance for loan losses
|
|
(345,576
|
)
|
|
(311,322
|
)
|
|
(34,254
|
)
|
|
11
|
%
|
|||
Loans held-for-sale
|
|
294
|
|
|
275
|
|
|
19
|
|
|
7
|
%
|
|||
Total loans, net
|
|
$
|
33,679,694
|
|
|
$
|
32,074,142
|
|
|
$
|
1,605,552
|
|
|
5
|
%
|
|
(1)
|
Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(39.8) million and $(48.9) million as of September 30, 2019 and December 31, 2018, respectively.
|
(2)
|
Includes ASC 310-30 discount of $16.7 million and $22.2 million as of September 30, 2019 and December 31, 2018, respectively.
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total
|
|
%
|
|||||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Southern California
|
|
$
|
5,245,303
|
|
|
|
|
$
|
1,584,951
|
|
|
|
|
$
|
258,133
|
|
|
|
|
$
|
7,088,387
|
|
|
|
|
|||
Northern California
|
|
2,250,000
|
|
|
|
|
585,412
|
|
|
|
|
168,707
|
|
|
|
|
3,004,119
|
|
|
|
|
|||||||
California
|
|
7,495,303
|
|
|
77
|
%
|
|
2,170,363
|
|
|
84
|
%
|
|
426,840
|
|
|
60
|
%
|
|
10,092,506
|
|
|
78
|
%
|
||||
New York
|
|
684,403
|
|
|
7
|
%
|
|
108,550
|
|
|
4
|
%
|
|
93,065
|
|
|
13
|
%
|
|
886,018
|
|
|
7
|
%
|
||||
Texas
|
|
566,688
|
|
|
6
|
%
|
|
119,404
|
|
|
5
|
%
|
|
8,720
|
|
|
1
|
%
|
|
694,812
|
|
|
5
|
%
|
||||
Washington
|
|
283,451
|
|
|
3
|
%
|
|
66,780
|
|
|
3
|
%
|
|
42,566
|
|
|
6
|
%
|
|
392,797
|
|
|
3
|
%
|
||||
Arizona
|
|
131,324
|
|
|
1
|
%
|
|
36,999
|
|
|
1
|
%
|
|
22,501
|
|
|
3
|
%
|
|
190,824
|
|
|
1
|
%
|
||||
Nevada
|
|
112,717
|
|
|
1
|
%
|
|
36,354
|
|
|
1
|
%
|
|
82,596
|
|
|
11
|
%
|
|
231,667
|
|
|
2
|
%
|
||||
Other markets
|
|
475,697
|
|
|
5
|
%
|
|
50,753
|
|
|
2
|
%
|
|
43,612
|
|
|
6
|
%
|
|
570,062
|
|
|
4
|
%
|
||||
Total loans (1)
|
|
$
|
9,749,583
|
|
|
100
|
%
|
|
$
|
2,589,203
|
|
|
100
|
%
|
|
$
|
719,900
|
|
|
100
|
%
|
|
$
|
13,058,686
|
|
|
100
|
%
|
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
CRE
|
|
%
|
|
Multifamily
Residential |
|
%
|
|
Construction
and Land |
|
%
|
|
Total
|
|
%
|
|||||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Southern California
|
|
$
|
5,106,098
|
|
|
|
|
$
|
1,512,753
|
|
|
|
|
$
|
215,370
|
|
|
|
|
$
|
6,834,221
|
|
|
|
|
|||
Northern California
|
|
2,112,789
|
|
|
|
|
600,566
|
|
|
|
|
133,828
|
|
|
|
|
2,847,183
|
|
|
|
|
|||||||
California
|
|
7,218,887
|
|
|
79
|
%
|
|
2,113,319
|
|
|
86
|
%
|
|
349,198
|
|
|
65
|
%
|
|
9,681,404
|
|
|
79
|
%
|
||||
New York
|
|
651,510
|
|
|
7
|
%
|
|
110,840
|
|
|
4
|
%
|
|
46,702
|
|
|
9
|
%
|
|
809,052
|
|
|
7
|
%
|
||||
Texas
|
|
508,473
|
|
|
5
|
%
|
|
72,585
|
|
|
3
|
%
|
|
12,055
|
|
|
2
|
%
|
|
593,113
|
|
|
5
|
%
|
||||
Washington
|
|
288,522
|
|
|
3
|
%
|
|
58,294
|
|
|
2
|
%
|
|
29,079
|
|
|
5
|
%
|
|
375,895
|
|
|
3
|
%
|
||||
Arizona
|
|
108,102
|
|
|
1
|
%
|
|
24,808
|
|
|
1
|
%
|
|
24,890
|
|
|
5
|
%
|
|
157,800
|
|
|
1
|
%
|
||||
Nevada
|
|
94,924
|
|
|
1
|
%
|
|
44,052
|
|
|
2
|
%
|
|
47,897
|
|
|
9
|
%
|
|
186,873
|
|
|
2
|
%
|
||||
Other markets
|
|
389,781
|
|
|
4
|
%
|
|
46,770
|
|
|
2
|
%
|
|
28,973
|
|
|
5
|
%
|
|
465,524
|
|
|
3
|
%
|
||||
Total loans (1)
|
|
$
|
9,260,199
|
|
|
100
|
%
|
|
$
|
2,470,668
|
|
|
100
|
%
|
|
$
|
538,794
|
|
|
100
|
%
|
|
$
|
12,269,661
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Property types:
|
|
|
|
|
|
|
|
|
||||||
Retail
|
|
$
|
3,251,398
|
|
|
33
|
%
|
|
$
|
3,171,374
|
|
|
34
|
%
|
Offices
|
|
2,216,628
|
|
|
23
|
%
|
|
2,160,382
|
|
|
23
|
%
|
||
Industrial
|
|
2,042,733
|
|
|
21
|
%
|
|
1,883,444
|
|
|
20
|
%
|
||
Hotel/Motel
|
|
1,785,148
|
|
|
18
|
%
|
|
1,619,905
|
|
|
17
|
%
|
||
Other
|
|
453,676
|
|
|
5
|
%
|
|
425,094
|
|
|
6
|
%
|
||
Total CRE loans (1)
|
|
$
|
9,749,583
|
|
|
100
|
%
|
|
$
|
9,260,199
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
|||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|||||||||||||||||||
|
Single-
Family
Residential
|
|
%
|
|
HELOCs
|
|
%
|
|
Total
|
|
%
|
||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Southern California
|
|
$
|
3,006,830
|
|
|
|
|
$
|
736,403
|
|
|
|
|
$
|
3,743,233
|
|
|
|
|||
Northern California
|
|
1,033,662
|
|
|
|
|
324,743
|
|
|
|
|
1,358,405
|
|
|
|
||||||
California
|
|
4,040,492
|
|
|
59
|
%
|
|
1,061,146
|
|
|
69
|
%
|
|
5,101,638
|
|
|
61
|
%
|
|||
New York
|
|
1,472,941
|
|
|
22
|
%
|
|
266,224
|
|
|
17
|
%
|
|
1,739,165
|
|
|
21
|
%
|
|||
Washington
|
|
618,858
|
|
|
9
|
%
|
|
140,040
|
|
|
9
|
%
|
|
758,898
|
|
|
9
|
%
|
|||
Massachusetts
|
|
225,533
|
|
|
3
|
%
|
|
34,380
|
|
|
2
|
%
|
|
259,913
|
|
|
3
|
%
|
|||
Texas
|
|
188,544
|
|
|
3
|
%
|
|
—
|
|
|
—
|
%
|
|
188,544
|
|
|
2
|
%
|
|||
Other markets
|
|
264,646
|
|
|
4
|
%
|
|
38,331
|
|
|
3
|
%
|
|
302,977
|
|
|
4
|
%
|
|||
Total (1)
|
|
$
|
6,811,014
|
|
|
100
|
%
|
|
$
|
1,540,121
|
|
|
100
|
%
|
|
$
|
8,351,135
|
|
|
100
|
%
|
Lien priority:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First mortgage
|
|
$
|
6,811,011
|
|
|
100
|
%
|
|
$
|
1,304,918
|
|
|
85
|
%
|
|
$
|
8,115,929
|
|
|
97
|
%
|
Junior lien mortgage
|
|
3
|
|
|
0
|
%
|
|
235,203
|
|
|
15
|
%
|
|
235,206
|
|
|
3
|
%
|
|||
Total (1)
|
|
$
|
6,811,014
|
|
|
100
|
%
|
|
$
|
1,540,121
|
|
|
100
|
%
|
|
$
|
8,351,135
|
|
|
100
|
%
|
|
|
|||||||||||||||||||||
($ in thousands)
|
|
December 31, 2018
|
|||||||||||||||||||
|
Single-
Family Residential |
|
%
|
|
HELOCs
|
|
%
|
|
Total
|
|
%
|
||||||||||
Geographic markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Southern California
|
|
$
|
2,768,725
|
|
|
|
|
$
|
839,790
|
|
|
|
|
$
|
3,608,515
|
|
|
|
|||
Northern California
|
|
954,835
|
|
|
|
|
350,008
|
|
|
|
|
1,304,843
|
|
|
|
||||||
California
|
|
3,723,560
|
|
|
62
|
%
|
|
1,189,798
|
|
|
70
|
%
|
|
4,913,358
|
|
|
64
|
%
|
|||
New York
|
|
1,165,135
|
|
|
19
|
%
|
|
279,792
|
|
|
17
|
%
|
|
1,444,927
|
|
|
19
|
%
|
|||
Washington
|
|
572,017
|
|
|
9
|
%
|
|
149,579
|
|
|
9
|
%
|
|
721,596
|
|
|
9
|
%
|
|||
Massachusetts
|
|
206,920
|
|
|
3
|
%
|
|
32,333
|
|
|
2
|
%
|
|
239,253
|
|
|
3
|
%
|
|||
Texas
|
|
165,873
|
|
|
3
|
%
|
|
—
|
|
|
—
|
%
|
|
165,873
|
|
|
2
|
%
|
|||
Other markets
|
|
202,949
|
|
|
4
|
%
|
|
39,332
|
|
|
2
|
%
|
|
242,281
|
|
|
3
|
%
|
|||
Total (1)
|
|
$
|
6,036,454
|
|
|
100
|
%
|
|
$
|
1,690,834
|
|
|
100
|
%
|
|
$
|
7,727,288
|
|
|
100
|
%
|
Lien priority:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First mortgage
|
|
$
|
6,036,450
|
|
|
100
|
%
|
|
$
|
1,438,414
|
|
|
85
|
%
|
|
$
|
7,474,864
|
|
|
97
|
%
|
Junior lien mortgage
|
|
4
|
|
|
0
|
%
|
|
252,420
|
|
|
15
|
%
|
|
252,424
|
|
|
3
|
%
|
|||
Total (1)
|
|
$
|
6,036,454
|
|
|
100
|
%
|
|
$
|
1,690,834
|
|
|
100
|
%
|
|
$
|
7,727,288
|
|
|
100
|
%
|
|
(1)
|
Loans net of ASC 310-30 discount.
|
|
||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Nonaccrual loans:
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
||||
C&I
|
|
$
|
90,830
|
|
|
$
|
43,840
|
|
CRE
|
|
18,942
|
|
|
24,218
|
|
||
Multifamily residential
|
|
551
|
|
|
1,260
|
|
||
Consumer:
|
|
|
|
|
||||
Single-family residential
|
|
9,484
|
|
|
5,259
|
|
||
HELOCs
|
|
9,924
|
|
|
8,614
|
|
||
Other consumer
|
|
2,495
|
|
|
2,502
|
|
||
Total nonaccrual loans
|
|
132,226
|
|
|
85,693
|
|
||
OREO, net
|
|
1,122
|
|
|
133
|
|
||
Other nonperforming assets
|
|
1,167
|
|
|
7,167
|
|
||
Total nonperforming assets
|
|
$
|
134,515
|
|
|
$
|
92,993
|
|
Non-PCI nonperforming assets to total assets (1)
|
|
0.31
|
%
|
|
0.23
|
%
|
||
Non-PCI nonaccrual loans to loans held-for-investment (1)
|
|
0.39
|
%
|
|
0.26
|
%
|
||
Allowance for loan losses to non-PCI nonaccrual loans
|
|
261.35
|
%
|
|
363.30
|
%
|
||
|
(1)
|
Total assets and loans held-for-investment include PCI loans of $240.7 million and $308.0 million as of September 30, 2019 and December 31, 2018, respectively.
|
|
||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|
Performing
TDRs
|
|
Nonperforming
TDRs
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
$
|
30,273
|
|
|
$
|
62,261
|
|
|
$
|
13,248
|
|
|
$
|
10,715
|
|
CRE
|
|
5,934
|
|
|
12,044
|
|
|
6,134
|
|
|
17,272
|
|
||||
Multifamily residential
|
|
4,188
|
|
|
237
|
|
|
4,300
|
|
|
260
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
7,516
|
|
|
1,109
|
|
|
8,201
|
|
|
325
|
|
||||
HELOCs
|
|
2,574
|
|
|
611
|
|
|
1,342
|
|
|
1,743
|
|
||||
Total TDRs
|
|
$
|
50,485
|
|
|
$
|
76,262
|
|
|
$
|
33,225
|
|
|
$
|
30,315
|
|
|
|
||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
121,103
|
|
|
66
|
%
|
|
$
|
57,088
|
|
|
48
|
%
|
CRE
|
|
24,876
|
|
|
14
|
%
|
|
30,352
|
|
|
26
|
%
|
||
Multifamily residential
|
|
4,739
|
|
|
3
|
%
|
|
5,560
|
|
|
5
|
%
|
||
Total commercial
|
|
150,718
|
|
|
83
|
%
|
|
93,000
|
|
|
79
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
17,000
|
|
|
9
|
%
|
|
13,460
|
|
|
11
|
%
|
||
HELOCs
|
|
12,498
|
|
|
7
|
%
|
|
9,956
|
|
|
8
|
%
|
||
Other consumer
|
|
2,495
|
|
|
1
|
%
|
|
2,502
|
|
|
2
|
%
|
||
Total consumer
|
|
31,993
|
|
|
17
|
%
|
|
25,918
|
|
|
21
|
%
|
||
Total non-PCI impaired loans
|
|
$
|
182,711
|
|
|
100
|
%
|
|
$
|
118,918
|
|
|
100
|
%
|
|
|
||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Allowance for loan losses, beginning of period
|
|
$
|
330,625
|
|
|
$
|
301,550
|
|
|
$
|
311,322
|
|
|
$
|
287,128
|
|
Provision for loan losses
|
|
37,879
|
|
|
12,642
|
|
|
79,250
|
|
|
47,695
|
|
||||
Gross charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
(25,098
|
)
|
|
(4,462
|
)
|
|
(54,087
|
)
|
|
(36,441
|
)
|
||||
CRE
|
|
(1,021
|
)
|
|
—
|
|
|
(1,021
|
)
|
|
—
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|
(1
|
)
|
||||
Other consumer
|
|
(12
|
)
|
|
(6
|
)
|
|
(40
|
)
|
|
(185
|
)
|
||||
Total gross charge-offs
|
|
(26,142
|
)
|
|
(4,468
|
)
|
|
(55,159
|
)
|
|
(36,627
|
)
|
||||
Gross recoveries:
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
C&I
|
|
1,648
|
|
|
411
|
|
|
5,612
|
|
|
8,841
|
|
||||
CRE
|
|
1,896
|
|
|
2
|
|
|
3,955
|
|
|
431
|
|
||||
Multifamily residential
|
|
42
|
|
|
77
|
|
|
376
|
|
|
1,471
|
|
||||
Construction and land
|
|
21
|
|
|
23
|
|
|
523
|
|
|
716
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
|
60
|
|
|
295
|
|
|
134
|
|
|
1,108
|
|
||||
HELOCs
|
|
5
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Other consumer
|
|
7
|
|
|
1
|
|
|
14
|
|
|
2
|
|
||||
Total gross recoveries
|
|
3,679
|
|
|
809
|
|
|
10,621
|
|
|
12,569
|
|
||||
Net charge-offs
|
|
(22,463
|
)
|
|
(3,659
|
)
|
|
(44,538
|
)
|
|
(24,058
|
)
|
||||
Foreign currency translation adjustments
|
|
(465
|
)
|
|
(492
|
)
|
|
(458
|
)
|
|
(724
|
)
|
||||
Allowance for loan losses, end of period
|
|
345,576
|
|
|
310,041
|
|
|
345,576
|
|
|
310,041
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Allowance for unfunded credit reserves, beginning of period
|
|
13,019
|
|
|
14,019
|
|
|
12,566
|
|
|
13,318
|
|
||||
Provision for (reversal of) unfunded credit reserves
|
|
405
|
|
|
(2,100
|
)
|
|
858
|
|
|
(1,399
|
)
|
||||
Allowance for unfunded credit reserves, end of period
|
|
13,424
|
|
|
11,919
|
|
|
13,424
|
|
|
11,919
|
|
||||
Allowance for credit losses
|
|
$
|
359,000
|
|
|
$
|
321,960
|
|
|
$
|
359,000
|
|
|
$
|
321,960
|
|
|
|
|
|
|
|
|
|
|
||||||||
Average loans held-for-investment
|
|
$
|
33,661,077
|
|
|
$
|
30,488,140
|
|
|
$
|
33,023,468
|
|
|
$
|
29,762,719
|
|
Loans held-for-investment
|
|
$
|
34,024,976
|
|
|
$
|
31,210,185
|
|
|
$
|
34,024,976
|
|
|
$
|
31,210,185
|
|
Allowance for loan losses to loans held-for-investment
|
|
1.02
|
%
|
|
0.99
|
%
|
|
1.02
|
%
|
|
0.99
|
%
|
||||
Annualized net charge-offs to average loans held-for-investment
|
|
0.26
|
%
|
|
0.05
|
%
|
|
0.18
|
%
|
|
0.11
|
%
|
||||
|
|
||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
|
Allowance
Allocation
|
|
Loans as % of
Total Loans
|
|
Allowance
Allocation
|
|
Loans as % of
Total Loans
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
C&I
|
|
$
|
218,869
|
|
|
36
|
%
|
|
$
|
189,117
|
|
|
37
|
%
|
CRE
|
|
37,473
|
|
|
29
|
%
|
|
40,666
|
|
|
28
|
%
|
||
Multifamily residential
|
|
20,307
|
|
|
8
|
%
|
|
19,885
|
|
|
8
|
%
|
||
Construction and land
|
|
29,171
|
|
|
2
|
%
|
|
20,290
|
|
|
2
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
|
29,935
|
|
|
20
|
%
|
|
31,340
|
|
|
19
|
%
|
||
HELOCs
|
|
5,856
|
|
|
4
|
%
|
|
5,774
|
|
|
5
|
%
|
||
Other consumer
|
|
3,965
|
|
|
1
|
%
|
|
4,250
|
|
|
1
|
%
|
||
Total
|
|
$
|
345,576
|
|
|
100
|
%
|
|
$
|
311,322
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
|
Change
|
|||||||||
|
Amount
|
|
Amount
|
|
$
|
|
%
|
||||||||
Deposits
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing demand
|
|
$
|
10,806,937
|
|
|
$
|
11,377,009
|
|
|
$
|
(570,072
|
)
|
|
(5
|
)%
|
Interest-bearing checking
|
|
4,837,391
|
|
|
4,584,447
|
|
|
252,944
|
|
|
6
|
%
|
|||
Money market
|
|
8,400,353
|
|
|
8,262,677
|
|
|
137,676
|
|
|
2
|
%
|
|||
Savings
|
|
2,094,638
|
|
|
2,146,429
|
|
|
(51,791
|
)
|
|
(2
|
)%
|
|||
Time deposits
|
|
10,520,207
|
|
|
9,069,066
|
|
|
1,451,141
|
|
|
16
|
%
|
|||
Total deposits
|
|
$
|
36,659,526
|
|
|
$
|
35,439,628
|
|
|
$
|
1,219,898
|
|
|
3
|
%
|
Other Funds
|
|
|
|
|
|
|
|
|
|||||||
Short-term borrowings
|
|
$
|
47,689
|
|
|
$
|
57,638
|
|
|
$
|
(9,949
|
)
|
|
(17
|
)%
|
FHLB advances
|
|
745,494
|
|
|
326,172
|
|
|
419,322
|
|
|
129
|
%
|
|||
Repurchase agreements
|
|
50,000
|
|
|
50,000
|
|
|
—
|
|
|
—
|
%
|
|||
Long-term debt
|
|
147,033
|
|
|
146,835
|
|
|
198
|
|
|
0
|
%
|
|||
Total other funds
|
|
$
|
990,216
|
|
|
$
|
580,645
|
|
|
$
|
409,571
|
|
|
71
|
%
|
Total sources of funds
|
|
$
|
37,649,742
|
|
|
$
|
36,020,273
|
|
|
$
|
1,629,469
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
% of Total
Consolidated
Assets
|
|
Amount
|
|
% of Total
Consolidated
Assets
|
|||||||
Hong Kong Branch:
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
315,281
|
|
|
1
|
%
|
|
$
|
360,786
|
|
|
1
|
%
|
Available-for-sale investment securities (1)
|
|
$
|
204,829
|
|
|
0
|
%
|
|
$
|
221,932
|
|
|
1
|
%
|
Loans held-for-investment (2)(3)
|
|
$
|
684,058
|
|
|
2
|
%
|
|
$
|
653,860
|
|
|
2
|
%
|
Total assets
|
|
$
|
1,269,775
|
|
|
3
|
%
|
|
$
|
1,247,207
|
|
|
3
|
%
|
Subsidiary Bank in China:
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
657,210
|
|
|
2
|
%
|
|
$
|
695,527
|
|
|
2
|
%
|
Interest-bearing deposits with banks
|
|
$
|
127,524
|
|
|
0
|
%
|
|
$
|
221,000
|
|
|
1
|
%
|
Loans held-for-investment (3)
|
|
$
|
837,118
|
|
|
2
|
%
|
|
$
|
777,412
|
|
|
2
|
%
|
Total assets
|
|
$
|
1,625,828
|
|
|
4
|
%
|
|
$
|
1,700,357
|
|
|
4
|
%
|
|
(1)
|
Primarily comprised of foreign bonds and U.S. Treasury securities as of both September 30, 2019 and December 31, 2018.
|
(2)
|
Includes ASC 310-30 discount of $45 thousand and $103 thousand as of September 30, 2019 and December 31, 2018, respectively.
|
(3)
|
Primarily comprised of C&I loans as of both September 30, 2019 and December 31, 2018.
|
|
||||||||||||||||||||||||||||
($ in thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||||||||||||
|
Amount
|
|
% of Total
Consolidated
Revenue |
|
Amount
|
|
% of Total
Consolidated
Revenue |
|
Amount
|
|
% of Total
Consolidated Revenue |
|
Amount
|
|
% of Total
Consolidated Revenue |
|||||||||||||
Hong Kong Branch:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenue
|
|
$
|
8,161
|
|
|
2
|
%
|
|
$
|
8,001
|
|
|
2
|
%
|
|
$
|
25,909
|
|
|
2
|
%
|
|
$
|
22,859
|
|
|
2
|
%
|
Subsidiary Bank in China:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenue
|
|
$
|
9,393
|
|
|
2
|
%
|
|
$
|
9,655
|
|
|
2
|
%
|
|
$
|
25,584
|
|
|
2
|
%
|
|
$
|
26,157
|
|
|
2
|
%
|
|
|
|||||||||||||||||||||
|
|
Basel III Capital Rules
|
|||||||||||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
|
Minimum
Regulatory
Requirements
|
|
Well-
Capitalized
Requirements
|
|
Fully
Phased-in
Minimum
Regulatory
Requirements
|
||||||||||||
|
Company
|
|
East
West Bank |
|
Company
|
|
East
West Bank |
|
|
|
|||||||||||
CET1 risk-based capital
|
|
12.8
|
%
|
|
12.7
|
%
|
|
12.2
|
%
|
|
12.1
|
%
|
|
4.5
|
%
|
|
6.5
|
%
|
|
7.0
|
%
|
Tier 1 risk-based capital
|
|
12.8
|
%
|
|
12.7
|
%
|
|
12.2
|
%
|
|
12.1
|
%
|
|
6.0
|
%
|
|
8.0
|
%
|
|
8.5
|
%
|
Total risk-based capital
|
|
14.2
|
%
|
|
13.7
|
%
|
|
13.7
|
%
|
|
13.1
|
%
|
|
8.0
|
%
|
|
10.0
|
%
|
|
10.5
|
%
|
Tier 1 leverage capital (1)
|
|
10.3
|
%
|
|
10.2
|
%
|
|
9.9
|
%
|
|
9.8
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
|
4.0
|
%
|
|
(1)
|
The Tier 1 leverage capital well-capitalized requirement applies to the Bank only since there is no Tier 1 leverage ratio component in the definition of a well-capitalized bank-holding company.
|
|
|
|
||||||||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Encumbered
|
|
Unencumbered
|
|
Total
|
|
Encumbered
|
|
Unencumbered
|
|
Total
|
|||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
3,042,281
|
|
|
$
|
3,042,281
|
|
|
$
|
—
|
|
|
$
|
3,001,377
|
|
|
$
|
3,001,377
|
|
Interest-bearing deposits with banks
|
|
—
|
|
|
160,423
|
|
|
160,423
|
|
|
—
|
|
|
371,000
|
|
|
371,000
|
|
||||||
Short-term resale agreements
|
|
—
|
|
|
300,000
|
|
|
300,000
|
|
|
—
|
|
|
375,000
|
|
|
375,000
|
|
||||||
Available-for-sale investment securities
|
|
524,413
|
|
|
2,759,621
|
|
|
3,284,034
|
|
|
435,833
|
|
|
2,306,014
|
|
|
2,741,847
|
|
||||||
Total
|
|
$
|
524,413
|
|
|
$
|
6,262,325
|
|
|
$
|
6,786,738
|
|
|
$
|
435,833
|
|
|
$
|
6,053,391
|
|
|
$
|
6,489,224
|
|
|
|
|
|
||||||||
($ in thousands)
|
|
Nine Months Ended September 30,
|
||||||
|
2019
|
|
2018
|
|||||
Net cash provided by operating activities
|
|
$
|
389,019
|
|
|
$
|
693,316
|
|
Net cash used in investing activities
|
|
(1,868,818
|
)
|
|
(2,654,135
|
)
|
||
Net cash provided by financing activities
|
|
1,533,223
|
|
|
2,033,347
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(12,520
|
)
|
|
(28,333
|
)
|
||
Net increase in cash and cash equivalents
|
|
40,904
|
|
|
44,195
|
|
||
Cash and cash equivalents, beginning of period
|
|
3,001,377
|
|
|
2,174,592
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
3,042,281
|
|
|
$
|
2,218,787
|
|
|
|
|
|
|
|
||||||
Change in Interest Rates
(Basis Points) |
|
Net Interest Income Volatility (1)
|
||||
|
September 30, 2019
|
|
December 31, 2018
|
|||
+200
|
|
15.4
|
%
|
|
16.6
|
%
|
+100
|
|
7.8
|
%
|
|
8.4
|
%
|
-100
|
|
(6.6
|
)%
|
|
(8.3
|
)%
|
-200
|
|
(12.1
|
)%
|
|
(16.7
|
)%
|
|
(1)
|
The percentage change represents net interest income over 12 months in a stable interest rate environment versus net interest income in the various rate scenarios.
|
|
||||||
Change in Interest Rates
(Basis Points) |
|
Net Interest Income Volatility (1)
|
||||
|
September 30, 2019
|
|
December 31, 2018
|
|||
+200 Rate Ramp
|
|
6.1
|
%
|
|
6.3
|
%
|
+100 Rate Ramp
|
|
3.0
|
%
|
|
3.0
|
%
|
-100 Rate Ramp
|
|
(2.6
|
)%
|
|
(3.0
|
)%
|
-200 Rate Ramp
|
|
(5.2
|
)%
|
|
(6.3
|
)%
|
|
(1)
|
The percentage change represents net interest income under a gradual non-parallel shift in even quarterly increments over 12 months.
|
|
|
|
|
|
||
Change in Interest Rates
(Basis Points) |
|
EVE Volatility (1)
|
||||
|
September 30, 2019
|
|
December 31, 2018
|
|||
+200
|
|
6.4
|
%
|
|
6.3
|
%
|
+100
|
|
3.6
|
%
|
|
1.2
|
%
|
-100
|
|
(1.3
|
)%
|
|
(3.1
|
)%
|
-200
|
|
(3.4
|
)%
|
|
(11.9
|
)%
|
|
|
|
|
|
(1)
|
The percentage change represents net portfolio value of the Company in a stable interest rate environment versus net portfolio value in the various rate scenarios.
|
•
|
fair value of financial instruments;
|
•
|
allowance for credit losses;
|
•
|
goodwill impairment; and
|
•
|
income taxes.
|
|
||||||||||||||||||
($ and shares in thousands, except per share data)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||
Net income
|
|
(a)
|
|
$
|
171,416
|
|
|
$
|
171,302
|
|
|
$
|
485,820
|
|
|
$
|
530,683
|
|
Add: Impairment charge related to DC Solar (1)
|
|
|
|
—
|
|
|
—
|
|
|
6,978
|
|
|
—
|
|
||||
Less: Gain on sale of business
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31,470
|
)
|
||||
Tax effect of adjustments (2)
|
|
|
|
—
|
|
|
—
|
|
|
(2,063
|
)
|
|
9,303
|
|
||||
Add: Reversal of certain previously claimed tax credits related to DC Solar
|
|
|
|
—
|
|
|
—
|
|
|
30,104
|
|
|
—
|
|
||||
Non-GAAP net income
|
|
(b)
|
|
$
|
171,416
|
|
|
$
|
171,302
|
|
|
$
|
520,839
|
|
|
$
|
508,516
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted-average number of shares outstanding
|
|
|
|
146,120
|
|
|
146,173
|
|
|
146,088
|
|
|
146,158
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS
|
|
|
|
$
|
1.17
|
|
|
$
|
1.17
|
|
|
$
|
3.33
|
|
|
$
|
3.63
|
|
Diluted EPS impact of impairment charge related to DC Solar, net of tax
|
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
||||
Diluted EPS impact of gain on sale of business, net of tax
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.15
|
)
|
||||
Diluted EPS impact of reversal of certain previously claimed tax credits related to DC Solar
|
|
|
|
—
|
|
|
—
|
|
|
0.21
|
|
|
—
|
|
||||
Non-GAAP diluted EPS
|
|
|
|
$
|
1.17
|
|
|
$
|
1.17
|
|
|
$
|
3.57
|
|
|
$
|
3.48
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Average total assets
|
|
(c)
|
|
$
|
43,136,273
|
|
|
$
|
38,659,262
|
|
|
$
|
41,815,490
|
|
|
$
|
37,874,434
|
|
Average stockholders’ equity
|
|
(d)
|
|
$
|
4,838,281
|
|
|
$
|
4,197,675
|
|
|
$
|
4,687,746
|
|
|
$
|
4,061,977
|
|
ROA (3)
|
|
(a)/(c)
|
|
1.58
|
%
|
|
1.76
|
%
|
|
1.55
|
%
|
|
1.87
|
%
|
||||
Non-GAAP ROA (3)
|
|
(b)/(c)
|
|
1.58
|
%
|
|
1.76
|
%
|
|
1.67
|
%
|
|
1.80
|
%
|
||||
ROE (3)
|
|
(a)/(d)
|
|
14.06
|
%
|
|
16.19
|
%
|
|
13.86
|
%
|
|
17.47
|
%
|
||||
Non-GAAP ROE (3)
|
|
(b)/(d)
|
|
14.06
|
%
|
|
16.19
|
%
|
|
14.85
|
%
|
|
16.74
|
%
|
||||
|
(1)
|
Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.
|
(2)
|
Applied statutory rate of 29.56%.
|
(3)
|
Annualized.
|
|
||||||||||||||||||
($ in thousands)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||
Income tax expense
|
|
(a)
|
|
$
|
34,951
|
|
|
$
|
33,563
|
|
|
$
|
138,815
|
|
|
$
|
82,958
|
|
Less: Reversal of certain previously claimed tax credits related to DC Solar
|
|
(b)
|
|
—
|
|
|
—
|
|
|
(30,104
|
)
|
|
—
|
|
||||
Non-GAAP income tax expense
|
|
(c)
|
|
$
|
34,951
|
|
|
$
|
33,563
|
|
|
$
|
108,711
|
|
|
$
|
82,958
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
|
(d)
|
|
$
|
206,367
|
|
|
$
|
204,865
|
|
|
$
|
624,635
|
|
|
$
|
613,641
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
|
(a)/(d)
|
|
16.9
|
%
|
|
16.4
|
%
|
|
22.2
|
%
|
|
13.5
|
%
|
||||
Less: Reversal of certain previously claimed tax credits related to DC Solar
|
|
(b)/(d)
|
|
—
|
%
|
|
—
|
%
|
|
(4.8
|
)%
|
|
—
|
%
|
||||
Non-GAAP effective tax rate
|
|
(c)/(d)
|
|
16.9
|
%
|
|
16.4
|
%
|
|
17.4
|
%
|
|
13.5
|
%
|
||||
|
|
||||||||||||||||||
($ in thousands)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||
Net interest income before provision for credit losses
|
|
(a)
|
|
$
|
369,807
|
|
|
$
|
348,720
|
|
|
$
|
1,099,594
|
|
|
$
|
1,017,092
|
|
Total noninterest income
|
|
|
|
51,474
|
|
|
46,502
|
|
|
146,364
|
|
|
169,214
|
|
||||
Total revenue
|
|
(b)
|
|
$
|
421,281
|
|
|
$
|
395,222
|
|
|
$
|
1,245,958
|
|
|
$
|
1,186,306
|
|
Noninterest income
|
|
|
|
$
|
51,474
|
|
|
$
|
46,502
|
|
|
$
|
146,364
|
|
|
$
|
169,214
|
|
Less: Gain on sale of business
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31,470
|
)
|
||||
Non-GAAP noninterest income
|
|
(c)
|
|
$
|
51,474
|
|
|
$
|
46,502
|
|
|
$
|
146,364
|
|
|
$
|
137,744
|
|
Non-GAAP revenue
|
|
(a)+(c)=(d)
|
|
$
|
421,281
|
|
|
$
|
395,222
|
|
|
$
|
1,245,958
|
|
|
$
|
1,154,836
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total noninterest expense
|
|
(e)
|
|
$
|
176,630
|
|
|
$
|
179,815
|
|
|
$
|
541,215
|
|
|
$
|
526,369
|
|
Less: Amortization of tax credit and other investments
|
|
|
|
(16,833
|
)
|
|
(20,789
|
)
|
|
(58,477
|
)
|
|
(58,670
|
)
|
||||
Amortization of core deposit intangibles
|
|
|
|
(1,148
|
)
|
|
(1,369
|
)
|
|
(3,474
|
)
|
|
(4,227
|
)
|
||||
Non-GAAP noninterest expense
|
|
(f)
|
|
$
|
158,649
|
|
|
$
|
157,657
|
|
|
$
|
479,264
|
|
|
$
|
463,472
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Efficiency ratio
|
|
(e)/(b)
|
|
41.93
|
%
|
|
45.50
|
%
|
|
43.44
|
%
|
|
44.37
|
%
|
||||
Non-GAAP efficiency ratio
|
|
(f)/(d)
|
|
37.66
|
%
|
|
39.89
|
%
|
|
38.47
|
%
|
|
40.13
|
%
|
||||
|
|
||||||||||||||
($ and shares in thousands, except per share data)
|
|
|
September 30,
2019 |
|
June 30,
2019 |
|
September 30,
2018 |
|||||||
Stockholders’ equity
|
|
(a)
|
|
$
|
4,882,664
|
|
|
$
|
4,734,593
|
|
|
$
|
4,244,850
|
|
Less: Goodwill
|
|
|
|
(465,697
|
)
|
|
(465,697
|
)
|
|
(465,547
|
)
|
|||
Other intangible assets (1)
|
|
|
|
(17,435
|
)
|
|
(18,952
|
)
|
|
(23,656
|
)
|
|||
Non-GAAP tangible common equity
|
|
(b)
|
|
$
|
4,399,532
|
|
|
$
|
4,249,944
|
|
|
$
|
3,755,647
|
|
|
|
|
|
|
|
|
|
|
||||||
Number of common shares at period-end
|
|
(c)
|
|
145,568
|
|
|
145,547
|
|
|
144,929
|
|
|||
Non-GAAP tangible common equity per share
|
|
(b)/(c)
|
|
$
|
30.22
|
|
|
$
|
29.20
|
|
|
$
|
25.91
|
|
|
(1)
|
Includes core deposit intangibles and mortgage servicing assets.
|
•
|
the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the U.S. and the People’s Republic of China;
|
•
|
the Company’s ability to compete effectively against other financial institutions in its banking markets;
|
•
|
success and timing of the Company’s business strategies;
|
•
|
the Company’s ability to retain key officers and employees;
|
•
|
impact on the Company’s funding costs, net interest income and net interest margin due to changes in key variable market interest rates, competition, regulatory requirements and the Company’s product mix;
|
•
|
changes in the Company’s costs of operation, compliance and expansion;
|
•
|
the Company’s ability to adopt and successfully integrate new technologies into its business in a strategic manner;
|
•
|
impact of failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused;
|
•
|
adequacy of the Company’s risk management framework, disclosure controls and procedures and internal control over financial reporting;
|
•
|
future credit quality and performance, including the Company’s expectations regarding future credit losses and allowance levels;
|
•
|
impact of adverse changes to the Company’s credit ratings from major credit rating agencies;
|
•
|
impact of adverse judgments or settlements in litigation;
|
•
|
changes in the commercial and consumer real estate markets;
|
•
|
changes in consumer spending and savings habits;
|
•
|
changes in the U.S. economy, including inflation, deflation, employment levels, rate of growth and general business conditions;
|
•
|
government intervention in the financial system, including changes in government interest rate policies;
|
•
|
impact of benchmark interest rate reform in the U.S. that resulted in the SOFR selected as the preferred alternative reference rate to LIBOR;
|
•
|
impact of political developments, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions;
|
•
|
changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board System, the FDIC, the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission (“SEC”), the Consumer Financial Protection Bureau and the California Department of Business Oversight - Division of Financial Institutions;
|
•
|
impact of the Dodd-Frank Act on the Company’s business, business practices, cost of operations and executive compensation;
|
•
|
heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers;
|
•
|
impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions and from the Company’s interactions with business partners, counterparties, service providers and other third parties;
|
•
|
impact of regulatory enforcement actions;
|
•
|
changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions;
|
•
|
changes in income tax laws and regulations;
|
•
|
impact of other potential federal tax changes and spending cuts;
|
•
|
the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms;
|
•
|
changes in the Company’s ability to receive dividends from its subsidiaries;
|
•
|
any future strategic acquisitions or divestitures;
|
•
|
continuing consolidation in the financial services industry;
|
•
|
changes in the equity and debt securities markets;
|
•
|
fluctuations in the Company’s stock price;
|
•
|
fluctuations in foreign currency exchange rates;
|
•
|
a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, a reduction in investor demand for mortgage loans and declines in asset values and/or recognition of OTTI on securities held in the Company’s available-for-sale investment securities portfolio; and
|
•
|
impact of natural or man-made disasters or calamities or conflicts or other events that may directly or indirectly result in a negative impact on the Company’s financial performance.
|
|
|
ALCO
|
Asset/Liability Committee
|
AOCI
|
Accumulated other comprehensive income (loss)
|
ARRC
|
Alternative Reference Rates Committee
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
C&I
|
Commercial and industrial
|
CECL
|
Current expected credit loss
|
CET1
|
Common Equity Tier 1
|
CME
|
Chicago Mercantile Exchange
|
CRA
|
Community Reinvestment Act
|
CRE
|
Commercial real estate
|
DCB
|
Desert Community Bank
|
EPS
|
Earnings per share
|
EVE
|
Economic value of equity
|
EWIS
|
East West Insurance Services, Inc.
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FITCH
|
Fitch Ratings
|
FOMC
|
Federal Open Market Committee
|
FRB
|
Federal Reserve Bank of San Francisco
|
FTP
|
Funds transfer pricing
|
GAAP
|
United States generally accepted accounting principles
|
HELOC
|
Home equity line of credit
|
LCH
|
London Clearing House
|
LIBOR
|
London Interbank Offered Rate
|
MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
MMBTU
|
Million British thermal units
|
MOODY’S
|
Moody’s Investors Service
|
NAV
|
Net asset value
|
OIS
|
Overnight Index Swap
|
OREO
|
Other real estate owned
|
OTTI
|
Other-than-temporary impairment
|
PCI
|
Purchased credit-impaired
|
ROA
|
Return on average assets
|
ROE
|
Return on average equity
|
RPA
|
Credit risk participation agreement
|
RSU
|
Restricted stock unit
|
S&P
|
Standard and Poor’s
|
SBLC
|
Standby letter of credit
|
SEC
|
U.S. Securities and Exchange Commission
|
SOFR
|
Secured Overnight Financing Rate
|
TDR
|
Troubled debt restructuring
|
U.S.
|
United States
|
USD
|
U.S. dollar
|
VIE
|
Variable interest entity
|
|
Dated:
|
November 8, 2019
|
|
||
|
|
|
||
|
|
EAST WEST BANCORP, INC.
(Registrant)
|
||
|
|
|
||
|
|
By
|
/s/ IRENE H. OH
|
|
|
|
|
Irene H. Oh
|
|
|
|
|
Executive Vice President and
Chief Financial Officer
|
1.
|
Section 2 (Term of Contract) of the Agreement is hereby modified in its entirety to read as follows: This Agreement and employment under this Agreement shall terminate on October 2, 2020, unless extended by Company.
|
2.
|
Except as expressly agreed to herein, the Employment Agreement between the parties shall remain in force and effect.
|
|
EAST WEST BANCORP, INC.
|
|
/s/ GARY TEO
|
|
Gary Teo
|
|
Head of Human Resources
|
|
|
|
/s/ CATHERINE ZHOU
|
|
Employee: Catherine Zhou
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of East West Bancorp, Inc. (the “registrant”);
|
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.
|
|
/s/ DOMINIC NG
|
|
Dominic Ng
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of East West Bancorp, Inc. (the “registrant”);
|
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.
|
|
/s/ IRENE H. OH
|
|
Irene H. Oh
|
|
Chief Financial Officer
|
a.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
b.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ DOMINIC NG
|
|
Dominic Ng
|
|
Chief Executive Officer
|
a.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
b.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ IRENE H. OH
|
|
Irene H. Oh
|
|
Chief Financial Officer
|