☑
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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33-0885320
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(State of Incorporation)
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(I.R.S. Employer Identification No.)
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Common Stock, par value $0.01 per share
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PACW
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The Nasdaq Stock Market, LLC
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(Title of Each Class)
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(Trading Symbol)
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(Name of Exchange on Which Registered)
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PART I
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Forward‑Looking Information
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Available Information
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Glossary of Acronyms, Abbreviations, and Terms
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Item 1.
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Business
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Item 1A.
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Risk Factors
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosure
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PART II
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ITEM 5.
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Market For Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
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ITEM 6.
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Selected Financial Data
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ITEM 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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ITEM 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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ITEM 8.
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Financial Statements and Supplementary Data
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ITEM 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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ITEM 9A.
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Controls and Procedures
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ITEM 9B.
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Other Information
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PART III
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ITEM 10.
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Directors, Executive Officers and Corporate Governance
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ITEM 11.
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Executive Compensation
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ITEM 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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ITEM 13.
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Certain Relationships and Related Transactions, and Director Independence
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ITEM 14.
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Principal Accountant Fees and Services
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PART IV
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ITEM 15.
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Exhibits and Financial Statement Schedules
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ITEM 16.
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Form 10-K Summary
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SIGNATURES
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•
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our ability to compete effectively against other financial service providers in our markets including attracting and retaining qualified employees;
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•
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the effect of the current interest rate environment or impact of changes in interest rates or levels of market activity, especially on the fair value of our loan and investment portfolios;
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•
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economic deterioration or a recession that may affect the ability of borrowers to make contractual payments on loans and may affect the value of real property or other property held as collateral for such loans;
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changes in credit quality and the effect of credit quality and the new CECL accounting standard on our provision for credit losses and allowance for loan and lease losses;
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•
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our ability to attract and retain deposits and other sources of funding or liquidity;
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•
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the need to retain capital for strategic or regulatory reasons;
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•
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compression of the net interest margin due to changes in the interest rate environment, forward yield curves, loan products offered, spreads on newly originated loans and leases, and/or changes in our asset or liability mix;
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•
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failure to adequately manage the transition from LIBOR as a reference rate;
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•
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reduced demand for our services due to strategic or regulatory reasons or reduced demand for our products due to legislative changes such as new rent control laws;
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•
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our ability to successfully execute on initiatives relating to enhancements of our technology infrastructure, including client-facing systems and applications;
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•
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our ability to complete future acquisitions and to successfully integrate such acquired entities or achieve expected benefits, synergies and/or operating efficiencies within expected time frames or at all;
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•
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legislative or regulatory requirements or changes, including an increase to capital requirements, and increased political and regulatory uncertainty;
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Severe weather, natural disasters, acts of war or terrorism, public health issues, or other adverse external events could harm our business;
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the impact on our reputation and business from our interactions with business partners, counterparties, service providers and other third parties;
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higher than anticipated increases in operating expenses;
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lower than expected dividends paid from the Bank to the holding company;
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the amount and exact timing of any common stock repurchases will depend upon market conditions and other factors;
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a deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge;
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the effectiveness of our risk management framework and quantitative models;
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the costs and effects of failure, interruption or breach of security of our systems or the systems of our contracted vendors;
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the costs and effects of legal, compliance, and regulatory actions, changes and developments, including the impact of adverse judgments or settlements in litigation, the initiation and resolution of regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews;
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changes made to tax laws or regulations affecting our business, including the disallowance of tax benefits by tax authorities and/or changes in tax filing jurisdictions or entity classifications; and
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our success at managing risks involved in the foregoing items and all other risk factors described in our audited consolidated financial statements, and other risk factors described in this Form 10-K and other documents filed or furnished by PacWest with the SEC.
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AFX
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American Financial Exchange
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FSOC
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Financial Stability Oversight Council
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ALLL
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Allowance for Loan and Lease Losses
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IPO
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Initial Public Offering
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ALM
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Asset Liability Management
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IRR
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Interest Rate Risk
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ASC
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Accounting Standards Codification
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LIBOR
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London Inter-bank Offering Rate
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ASU
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Accounting Standards Update
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LIHTC
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Low Income Housing Tax Credit
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ATM
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Automated Teller Machine
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MBS
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Mortgage-Backed Securities
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Basel III
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A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013
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MVE
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Market Value of Equity
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BHCA
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Bank Holding Company Act of 1956, as amended
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NII
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Net Interest Income
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BOLI
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Bank Owned Life Insurance
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NIM
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Net Interest Margin
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Brexit
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Britain Exit (from the European Union)
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NSF
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Non-Sufficient Funds
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CDI
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Core Deposit Intangible Assets
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Non-PCI
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Non-Purchased Credit Impaired
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CECL
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Current Expected Credit Loss
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OCC
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Office of the Comptroller of the Currency
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CET1
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Common Equity Tier 1
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OFAC
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U.S Treasury Department of Office of Foreign Assets Control
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CFPB
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Consumer Financial Protection Bureau
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OREO
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Other Real Estate Owned
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CMOs
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Collateralized Mortgage Obligations
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PATRIOT Act
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Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
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CPI
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Consumer Price Index
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PCI
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Purchased Credit Impaired
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CRA
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Community Reinvestment Act
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PD/LGD
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Probability of Default/Loss Given Default
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CRI
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Customer Relationship Intangible Assets
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PRSUs
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Performance-Based Restricted Stock Units
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CUB
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CU Bancorp (a company acquired on October 20, 2017)
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PWAM
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Pacific Western Asset Management Inc.
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CU Bank
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California United Bank (a wholly-owned subsidiary of CUB)
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ROU
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Right-of-use
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DBO
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California Department of Business Oversight
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SBA
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Small Business Administration
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DGCL
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Delaware General Corporation Law
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SEC
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Securities and Exchange Commission
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Dodd-Frank Act
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Dodd-Frank Wall Street Reform and Consumer Protection Act
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SNCs
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Shared National Credits
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DTAs
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Deferred Tax Assets
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SOFR
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Secured Overnight Financing Rate
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Efficiency Ratio
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Noninterest expense (less intangible asset amortization, net foreclosed assets income/expense, and acquisition, integration and reorganization costs) divided by net revenues (the sum of tax equivalent net interest income plus noninterest income, less gain/loss on sale of securities and gain/loss on sales of assets other than loans and leases)
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Tax Equivalent Net Interest Income
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Net interest income reflecting adjustments related to tax-exempt interest on certain loans and investment securities
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FASB
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Financial Accounting Standards Board
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Tax Equivalent NIM
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NIM reflecting adjustments related to tax-exempt interest on certain loans and investment securities
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FDIA
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Federal Deposit Insurance Act
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TCJA
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Tax Cuts and Jobs Act
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FDIC
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Federal Deposit Insurance Corporation
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TDRs
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Troubled Debt Restructurings
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FDICIA
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Federal Deposit Insurance Corporation Improvement Act
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TRSAs
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Time-Based Restricted Stock Awards
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FHLB
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Federal Home Loan Bank of San Francisco
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TruPS
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Trust Preferred Securities
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FRB
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Board of Governors of the Federal Reserve System
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U.S. GAAP
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U.S. Generally Accepted Accounting Principles
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FRBSF
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Federal Reserve Bank of San Francisco
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VIE
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Variable Interest Entity
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•
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Commercial real estate mortgage. Our commercial real estate mortgage loans generally are collateralized by first deeds of trust on specific commercial properties. The most prevalent types of properties securing our commercial real estate loans are office properties, hotels, industrial properties, and retail properties. The properties are typically located in central business districts across the United States with a significant concentration of collateral properties located in California within our branch footprint. Our commercial real estate loans typically either have interest and principal payments due on an amortization schedule ranging from 25 to 30 years with a lump sum balloon payment due in one to ten years or may have an initial interest-only period followed by an amortization schedule with a lump sum balloon payment due in one to ten years. We also provide commercial real estate secured loans under the SBA's 7(a) Program and 504 Program. Compliant SBA 7(a) loans have an SBA guaranty for 75% of the principal balance. SBA 504 loans are first deed of trust mortgage loans on owner occupied commercial real estate which are 50% loan-to-value at origination where a second deed of trust is also provided by a non-profit certified development company. The SBA 7(a) and 504 mortgage loans repay on a twenty-five year amortization schedule.
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•
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Income producing and other residential real estate mortgage. Our income producing and other residential real estate mortgage loans generally are collateralized by first deeds of trust on multi-family and other for-rent, non-owner occupied residential properties. The most prevalent types of properties securing our income producing and other residential real estate loans are multi-family, condominium, pooled single-family rental properties, and individual single-family properties. We also purchase multi-family secured real estate mortgage loans from other banks due primarily to the favorable credit risk profile of multi-family loans. When we purchase multi-family loans from other banks, we re-underwrite the loans at time of purchase. Multi-family loans either repay on a 30-year amortization schedule or may have an initial interest-only period (up to two years) and then repay on a 30-year amortization schedule. We do not typically originate owner-occupied single-family mortgage loans but we do have a small portfolio of owner-occupied single-family mortgage loans stemming primarily from banks that we acquired.
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Real estate construction and land. Our real estate construction and land loans generally are collateralized by first deeds of trust on specific residential and commercial properties. The most prevalent types of properties securing our construction and land loans are multi-family, hotel properties, and residential condominium properties. Construction loans typically finance from 40% to 70% of the cost to construct residential and commercial properties. The terms are generally one to three years with short-term, performance-based extension options. A very small component of this portfolio are single-family construction loans to qualifying home builders within our branch footprint.
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increased competition in pricing and loan structure;
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the economic conditions of the United States and in the markets where we lend;
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decreased demand or decreased values as a result of legislative changes such as new rent control laws;
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interest rate increases;
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decreased real estate values in the markets where we lend;
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the borrower's inability to repay our loan due to decreased cash flow or operating losses;
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the borrower’s inability to refinance or payoff our loan upon maturity;
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loss of our loan principal stemming from a collateral foreclosure; and
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various environmental risks, including natural disasters.
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construction costs being more than anticipated;
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construction taking longer than anticipated;
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failure by developers and contractors to meet project specifications or timelines;
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disagreement between contractors, subcontractors and developers;
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demand for completed projects being less than anticipated; and
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buyers of the completed projects not being able to secure permanent financing.
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requiring borrowers to invest and maintain a meaningful cash equity interest in the properties securing our loans;
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reviewing each loan request and renewal individually;
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using a credit committee approval process for the approval of each loan request (or aggregated credit exposures) over a certain dollar amount;
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adhering to written loan acceptance standards, including among other factors, maximum loan to acquisition or construction cost ratios, maximum loan to as-is or stabilized value ratios, and minimum operating cash flow requirements;
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considering market rental and occupancy rates relative to our underwritten or projected rental and occupancy rates;
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considering the experience of our borrowers and our borrowers’ abilities to operate and manage the properties securing our loans;
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evaluating the supply of comparable real estate and new supply under construction in the collateral's market area;
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obtaining independent third-party appraisals that are reviewed by our appraisal department;
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obtaining environmental risk assessments; and
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obtaining seismic studies where appropriate.
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considering the experience of our borrowers and our borrowers’ abilities to manage the properties during construction and into the stabilization periods;
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obtaining project completion guaranties from our borrowers;
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including covenants in our construction loan agreements that require the borrowers to fund costs that exceed the initial construction budgets;
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implementing a controlled disbursement process for loan proceeds in accordance with an agreed upon schedule, which usually results in the borrowers' equity being invested before loan advances commence and which ensures the costs to complete the projects are in balance with our remaining unfunded loan commitments;
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conducting project site visits and using construction consultants who review the progress of the project; and
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monitoring the construction costs compared to the budgeted costs and the remaining costs to complete.
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Lender finance & timeshare. These are loans to companies used to purchase finance receivables or extend finance receivables to the underlying obligors and are secured primarily by the finance receivables owed to our borrowers. The borrowers include lenders to small businesses, consumer lenders, and timeshare operators. The primary sources of repayment are the operating incomes of the borrowers and the collection of the finance receivables securing the loans. The loans are typically revolving lines of credit with terms of one to three years with contractual borrowing availability as a percentage of eligible collateral.
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Equipment finance. These are loans and leases used to purchase equipment essential to the operations of our borrower or lessee and are secured by the specific equipment financed. The primary source of repayment is the operating income of the borrower or lessee. The loan and lease terms are two to ten years and generally amortize to either a full repayment or residual balance or investment that is expected to be collected through a sale of the equipment to the lessee or a third party.
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Other asset-based. These are loans used for working capital and are secured by trade accounts receivable and/or inventories. The primary sources of repayment are the operating incomes of the borrowers, the collection of the receivables securing the loans, and/or the sale of the inventories securing the loans. The loans are typically revolving lines of credit with terms of one to three years with contractual borrowing availability as a percentage of eligible collateral.
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Premium finance. These are loans used to finance annual life insurance premiums and are fully secured by the corresponding cash surrender value of life insurance contracts and other liquid collateral with one year terms that, generally, renew annually. The primary sources of repayment are the cash flow of the borrowers and guarantors, repayment from our loans being refinanced by other lenders, or the application of cash surrender value proceeds to the loans.
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Venture capital. These are loans directly to venture capital firms or loans to venture-backed companies. Equity fund loans are the loans made directly to venture capital firms, private equity funds, venture capital funds, and venture capital management companies to provide a bridge to the receipt of capital calls and to support the borrowers’ working capital needs, such as the cost of raising a new venture fund or leasehold improvements for new office space. The primary sources of repayment are receipt of capital calls, proceeds from sales of portfolio company investments, and management fees. The loan terms are generally one to four years, and the loans are typically secured by a first position lien on the assets of the business, an assignment of capital call rights and/or an assignment of management fees. Loans to venture-backed companies support the borrowers’ operations, including operating losses, working capital requirements, and fixed asset acquisitions. The borrowers are at various stages in their development (early, expansion, or late), and are, generally, reporting operating losses. The primary sources of repayment are future additional venture capital equity investments or the sale of the company or its assets. The loan terms are generally one to four years, and the loans are typically secured by a first priority, secured blanket lien on all corporate assets and/or a lien on intellectual property.
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Secured business. These are secured business loans originated through the Community Banking group. The primary source of repayment is the cash flow of the borrowers. The loans can be up to five years and are secured by a specific asset or assets of the borrower.
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Security monitoring. These are loans to security monitoring companies used to support the operations of companies that provide business and residential security systems and the accompanying alarm monitoring services. Loans to security monitoring companies are secured primarily by the monitoring contracts between the borrowers and their customers. The primary sources of repayment are the operating incomes of the borrowers, proceeds from the sales of security monitoring contracts to other monitoring companies, and proceeds from the sale of the borrowers themselves. The loans are typically revolving lines of credit with terms of one to three years with contractual borrowing availability as a ratio of the total recurring monthly billing amount from eligible monitoring contracts (collateral). Loans to security monitoring borrowers are usually considered leveraged loans. According to regulatory guidance, leveraged loans are typically loans where the proceeds are used for buyouts or acquisitions and where the resulting total debt levels are four or more times the annual adjusted earnings of the borrower. In October 2019, we decided to no longer originate new security monitoring loans. New technology is disrupting the security alarm business, causing increased customer acquisition costs and customer attrition and, thereby, adversely impacting business models and valuations.
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Other lending. Loans aggregated into the category of “Other lending” are various commercial loan types including Community Banking group business loans secured by a blanket lien on the borrowers’ businesses, loans to homeowner associations, loans to municipalities and non-profit borrowers, and SBA 7(a) loans for small business expansion. The primary sources of repayments for the Community Banking group business loans, non-profit borrowers, and SBA 7(a) business expansion loans are the operations of the borrowers. The primary sources of repayment for loans to municipalities are tax collections from their tax jurisdictions.
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Cash flow. Until December 2017, we actively originated cash flow loans to finance business acquisitions and recapitalizations to various types of borrowers, with greater emphasis on borrowers operating in the healthcare and technology industries. In December 2017, we exited most cash flow lending business lines, and agreed to sell $1.5 billion of cash flow loans (of which $481.1 million were held for sale at December 31, 2017 and were subsequently sold in the first quarter of 2018). At December 31, 2019, our remaining cash flow loans totaled $38.1 million.
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the economic conditions of the United States;
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•
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interest rate increases;
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•
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deterioration of the value of the underlying collateral;
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•
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increased competition in pricing and loan structure;
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the deterioration of a borrower’s or guarantor’s financial capabilities; and
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various environmental risks, including natural disasters, which can negatively affect a borrower’s business.
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considering the prospects for the borrower's industry and competition;
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considering our past experience with the borrower and with the collateral type;
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considering our current loan and lease portfolio concentration by loan type and collateral type;
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reviewing each loan request and renewal individually;
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using our credit committee approval process for the approval of each loan request (or aggregate credit exposure) over a certain dollar amount; and
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adhering to written loan underwriting policies and procedures including, among other factors, loan structures and covenants.
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monitoring the economic conditions in the regions or areas in which our borrowers are operating;
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measuring operating performance of our borrower or collateral and comparing it to our underwriting expectations;
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assessing compliance with financial and operating covenants as set forth in our loan agreements and considering the effects of incidences of noncompliance and taking corrective actions;
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assigning a credit risk rating to each loan and ensuring the accuracy of our credit risk ratings by using an independent credit review function to assess the appropriateness of the credit risk ratings assigned to loans;
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conducting loan portfolio review meetings where senior management and members of credit administration discuss the credit status and related action plans on loans with unfavorable credit risk ratings; and
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subjecting loan modifications and loan renewal requests to underwriting and assessment standards similar to the underwriting and assessment standards applied before closing the loans.
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•
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the economic conditions of the United States and the levels of unemployment;
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the amount of credit offered to consumers in the market;
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interest rate increases;
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consumer bankruptcy laws which allow consumers to discharge certain debts (excluding student loans);
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compliance with consumer lending regulations;
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•
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additional regulations and oversight by the CFPB; and
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•
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the ability of the sub-servicers of the Bank’s student loans to service the loans in accordance with the terms of the loan purchase agreements.
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December 31,
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|||||||||||||||||||
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2019
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2018
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2017
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|||||||||||||||
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|
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% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||
|
Balance
|
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Total
|
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Balance
|
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Total
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Balance
|
|
Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
$
|
4,202,687
|
|
|
22
|
%
|
|
$
|
4,824,298
|
|
|
27
|
%
|
|
$
|
5,385,740
|
|
|
32
|
%
|
Income producing and other residential
|
3,770,060
|
|
|
20
|
%
|
|
3,093,843
|
|
|
17
|
%
|
|
2,466,894
|
|
|
14
|
%
|
|||
Total real estate mortgage
|
7,972,747
|
|
|
42
|
%
|
|
7,918,141
|
|
|
44
|
%
|
|
7,852,634
|
|
|
46
|
%
|
|||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
1,082,368
|
|
|
6
|
%
|
|
912,583
|
|
|
5
|
%
|
|
769,075
|
|
|
5
|
%
|
|||
Residential
|
1,655,434
|
|
|
9
|
%
|
|
1,321,073
|
|
|
8
|
%
|
|
822,154
|
|
|
5
|
%
|
|||
Total real estate construction and land
|
2,737,802
|
|
|
15
|
%
|
|
2,233,656
|
|
|
13
|
%
|
|
1,591,229
|
|
|
10
|
%
|
|||
Total real estate
|
10,710,549
|
|
|
57
|
%
|
|
10,151,797
|
|
|
57
|
%
|
|
9,443,863
|
|
|
56
|
%
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Asset-based
|
3,748,407
|
|
|
20
|
%
|
|
3,305,421
|
|
|
18
|
%
|
|
2,924,950
|
|
|
17
|
%
|
|||
Venture capital
|
2,179,422
|
|
|
12
|
%
|
|
2,038,748
|
|
|
11
|
%
|
|
2,122,735
|
|
|
13
|
%
|
|||
Other commercial (1)
|
1,767,667
|
|
|
9
|
%
|
|
2,060,426
|
|
|
12
|
%
|
|
2,071,394
|
|
|
12
|
%
|
|||
Total commercial
|
7,695,496
|
|
|
41
|
%
|
|
7,404,595
|
|
|
41
|
%
|
|
7,119,079
|
|
|
42
|
%
|
|||
Consumer
|
440,827
|
|
|
2
|
%
|
|
401,321
|
|
|
2
|
%
|
|
409,801
|
|
|
2
|
%
|
|||
Total loans and leases held for
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
investment, net of deferred fees
|
$
|
18,846,872
|
|
|
100
|
%
|
|
$
|
17,957,713
|
|
|
100
|
%
|
|
$
|
16,972,743
|
|
|
100
|
%
|
(1)
|
At December 31, 2019, the remaining balances of cash flow loans held for investment totaled $38.1 million. At December 31, 2018 and 2017, the balances of these loans totaled $114.1 million and $278.9 million. Such cash flow loans are included in the "Other commercial" loan portfolio class in the table.
|
•
|
4.5% CET1 to risk‑weighted assets;
|
•
|
6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk‑weighted assets;
|
•
|
8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk‑weighted assets; and
|
•
|
4% Tier 1 capital to average consolidated assets as reported on regulatory financial statements (known as the “leverage ratio”).
|
•
|
a decrease in the demand for our loans and leases and other products and services offered by us;
|
•
|
a decrease in our deposit balances due to overall reductions in the accounts of customers;
|
•
|
a decrease in the value of collateral securing our loans and leases;
|
•
|
an increase in the level of nonperforming and classified loans and leases:
|
•
|
an increase in provisions for credit losses and loan and lease charge-offs;
|
•
|
a decrease in net interest income derived from our lending and deposit gathering activities;
|
•
|
a decrease in the Company's stock price;
|
•
|
a decrease in our ability to access the capital markets; or
|
•
|
an increase in our operating expenses associated with attending to the effects of certain circumstances listed above.
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
|
|
|
Number of Securities
|
|
|
Weighted
|
|
Number of Securities
|
|
||||
|
|
|
|
to be Issued Upon
|
|
|
Average Exercise
|
|
Remaining Available
|
|
||||
|
|
|
|
Exercise of
|
|
|
Price of
|
|
for Future Issuance
|
|
||||
|
|
|
|
Outstanding
|
|
|
Outstanding
|
|
Under Equity
|
|
||||
|
|
|
|
Options,
|
|
|
Options,
|
|
Compensation Plans
|
|
||||
|
|
|
|
Warrants, and
|
|
|
Warrants, and
|
|
(Excluding Securities
|
|
||||
|
|
|
|
Rights
|
|
|
Rights
|
|
Reflected in Column (a))
|
|
||||
Plan Category
|
|
Plan Name
|
|
(a)
|
|
|
(b)
|
|
(c)
|
|
||||
Equity compensation plans
|
|
PacWest Bancorp
|
|
|
|
|
|
|
|
|
||||
approved by security
|
|
2017 Stock Incentive
|
|
|
|
|
|
|
|
|
||||
holders
|
|
Plan (1)
|
|
195,293
|
|
(2)
|
|
$
|
—
|
|
|
2,257,923
|
|
(3)
|
|
|
PacWest Bancorp
|
|
|
|
|
|
|
|
|
||||
|
|
2003 Stock Incentive
|
|
|
|
|
|
|
|
|
||||
|
|
Plan (1)
|
|
86,349
|
|
(4)
|
|
—
|
|
|
—
|
|
|
|
Equity compensation plans
|
|
|
|
|
|
|
|
|
|
|
||||
not approved by security
|
|
|
|
|
|
|
|
|
|
|
||||
holders
|
|
None
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
Total
|
|
|
|
281,642
|
|
|
|
$
|
—
|
|
|
2,257,923
|
|
|
(1)
|
The PacWest Bancorp 2017 Stock Incentive Plan (the “2017 Incentive Plan”) was approved by our stockholders at our May 15, 2017 Annual Meeting of Stockholders, authorizing for issuance 4,000,000 shares. Upon approval of the 2017 Incentive Plan by our stockholders, the PacWest 2003 Stock Incentive Plan (the "2003 Incentive Plan") was frozen and no new awards can be granted under the 2003 Incentive Plan.
|
(2)
|
Amount includes PRSUs granted in 2019 and 2018 that may be issued at the end of their three-year performance period if certain financial metrics are met. The number of units shown represents a target amount and the number of units that will ultimately vest is unknown. Amount does not include 1,307,085 shares of unvested time-based restricted stock outstanding under the 2017 Incentive Plan with a zero exercise price as of December 31, 2019.
|
(3)
|
The 2017 Incentive Plan permits these remaining shares to be issued in the form of options, restricted stock, or stock appreciation rights.
|
|
|
|
|
|
Total Number of
|
|
Maximum Dollar
|
||||||
|
|
|
|
|
Shares Purchased
|
|
Value of Shares
|
||||||
|
Total
|
|
|
|
as Part of
|
|
That May Yet
|
||||||
|
Number of
|
|
Average
|
|
Publicly
|
|
Be Purchased
|
||||||
|
Shares
|
|
Price Paid
|
|
Announced
|
|
Under the
|
||||||
Purchase Dates
|
Purchased (1)
|
|
Per Share
|
|
Program (2)
|
|
Program (2)
|
||||||
|
|
|
|
|
|
|
(In thousands)
|
|
|||||
October 1 – October 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
124,707
|
|
November 1 – November 30, 2019
|
27,606
|
|
|
$
|
37.57
|
|
|
—
|
|
|
$
|
124,707
|
|
December 1 – December 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
124,707
|
|
Total
|
27,606
|
|
|
$
|
37.57
|
|
|
—
|
|
|
|
(1)
|
Includes shares repurchased pursuant to net settlement by employees in satisfaction of income tax withholding obligations incurred through the vesting of Company stock awards.
|
|
Year Ended December 31,
|
||||||||||||||||||||||
Index
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
||||||||||||
PacWest Bancorp
|
$
|
100.00
|
|
|
$
|
99.05
|
|
|
$
|
131.84
|
|
|
$
|
127.26
|
|
|
$
|
88.07
|
|
|
$
|
107.95
|
|
NASDAQ Composite Index
|
100.00
|
|
|
106.96
|
|
|
116.45
|
|
|
150.96
|
|
|
146.67
|
|
|
200.49
|
|
||||||
KBW Regional Banking Index
|
100.00
|
|
|
105.91
|
|
|
147.24
|
|
|
149.82
|
|
|
123.60
|
|
|
153.03
|
|
|
At or For the Year Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands, except per share amounts and percentages)
|
||||||||||||||||||
Results of Operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
1,219,893
|
|
|
$
|
1,161,670
|
|
|
$
|
1,052,516
|
|
|
$
|
1,015,912
|
|
|
$
|
883,938
|
|
Interest expense
|
(205,264
|
)
|
|
(120,756
|
)
|
|
(72,945
|
)
|
|
(54,621
|
)
|
|
(60,592
|
)
|
|||||
Net interest income
|
1,014,629
|
|
|
1,040,914
|
|
|
979,571
|
|
|
961,291
|
|
|
823,346
|
|
|||||
Provision for credit losses
|
(22,000
|
)
|
|
(45,000
|
)
|
|
(57,752
|
)
|
|
(65,729
|
)
|
|
(45,481
|
)
|
|||||
Net interest income after provision for credit losses
|
992,629
|
|
|
995,914
|
|
|
921,819
|
|
|
895,562
|
|
|
777,865
|
|
|||||
Gain (loss) on sale of securities
|
25,445
|
|
|
8,176
|
|
|
(541
|
)
|
|
9,485
|
|
|
3,744
|
|
|||||
FDIC loss sharing expense, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,917
|
)
|
|
(18,246
|
)
|
|||||
Other noninterest income
|
117,117
|
|
|
140,459
|
|
|
129,114
|
|
|
111,907
|
|
|
98,812
|
|
|||||
Total noninterest income
|
142,562
|
|
|
148,635
|
|
|
128,573
|
|
|
112,475
|
|
|
84,310
|
|
|||||
Foreclosed assets income (expense), net
|
3,555
|
|
|
751
|
|
|
(1,702
|
)
|
|
(1,881
|
)
|
|
668
|
|
|||||
Acquisition, integration and reorganization costs
|
(349
|
)
|
|
(1,770
|
)
|
|
(19,735
|
)
|
|
(200
|
)
|
|
(21,247
|
)
|
|||||
Other noninterest expense
|
(505,457
|
)
|
|
(510,213
|
)
|
|
(474,224
|
)
|
|
(448,020
|
)
|
|
(361,460
|
)
|
|||||
Total noninterest expense
|
(502,251
|
)
|
|
(511,232
|
)
|
|
(495,661
|
)
|
|
(450,101
|
)
|
|
(382,039
|
)
|
|||||
Earnings before income taxes
|
632,940
|
|
|
633,317
|
|
|
554,731
|
|
|
557,936
|
|
|
480,136
|
|
|||||
Income tax expense
|
(164,304
|
)
|
|
(167,978
|
)
|
|
(196,913
|
)
|
|
(205,770
|
)
|
|
(180,517
|
)
|
|||||
Net earnings
|
$
|
468,636
|
|
|
$
|
465,339
|
|
|
$
|
357,818
|
|
|
$
|
352,166
|
|
|
$
|
299,619
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Common Share Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted earnings per share (EPS)
|
$
|
3.90
|
|
|
$
|
3.72
|
|
|
$
|
2.91
|
|
|
$
|
2.90
|
|
|
$
|
2.79
|
|
Cash dividends declared per share
|
$
|
2.40
|
|
|
$
|
2.30
|
|
|
$
|
2.00
|
|
|
$
|
2.00
|
|
|
$
|
2.00
|
|
Book value per share (1)(2)
|
$
|
41.36
|
|
|
$
|
39.17
|
|
|
$
|
38.65
|
|
|
$
|
36.93
|
|
|
$
|
36.22
|
|
Tangible book value per share (1)(2)
|
$
|
19.77
|
|
|
$
|
18.02
|
|
|
$
|
18.24
|
|
|
$
|
18.71
|
|
|
$
|
17.86
|
|
Shares outstanding at year-end (2)
|
119,782
|
|
|
123,190
|
|
|
128,783
|
|
|
121,284
|
|
|
121,414
|
|
|||||
Average shares outstanding for basic and diluted EPS
|
118,966
|
|
|
123,640
|
|
|
121,613
|
|
|
120,239
|
|
|
106,327
|
|
(1)
|
For information regarding this calculation, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations -Non‑GAAP Measurements.”
|
(2)
|
Includes 1,513,197 shares, 1,344,656 shares, 1,436,120 shares, 1,476,132 shares, and 1,211,951 shares of unvested restricted stock outstanding at December 31, 2019, 2018, 2017, 2016, and 2015.
|
|
At or For the Year Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands, except per share amounts and percentages)
|
||||||||||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
26,770,806
|
|
|
$
|
25,731,354
|
|
|
$
|
24,994,876
|
|
|
$
|
21,869,767
|
|
|
$
|
21,288,490
|
|
Cash and cash equivalents
|
637,624
|
|
|
385,767
|
|
|
398,437
|
|
|
419,670
|
|
|
396,486
|
|
|||||
Investment securities
|
3,838,111
|
|
|
4,041,534
|
|
|
3,795,221
|
|
|
3,245,700
|
|
|
3,579,147
|
|
|||||
Loans and leases held for investment (3)
|
18,846,872
|
|
|
17,957,713
|
|
|
16,914,707
|
|
|
15,347,530
|
|
|
14,289,209
|
|
|||||
Goodwill
|
2,548,670
|
|
|
2,548,670
|
|
|
2,548,670
|
|
|
2,173,949
|
|
|
2,176,291
|
|
|||||
Core deposit and customer relationship intangibles
|
38,394
|
|
|
57,120
|
|
|
79,626
|
|
|
36,366
|
|
|
53,220
|
|
|||||
Deposits
|
19,233,036
|
|
|
18,870,501
|
|
|
18,865,536
|
|
|
15,870,611
|
|
|
15,666,182
|
|
|||||
Borrowings
|
1,759,008
|
|
|
1,371,114
|
|
|
467,342
|
|
|
905,812
|
|
|
621,914
|
|
|||||
Subordinated debentures
|
458,209
|
|
|
453,846
|
|
|
462,437
|
|
|
440,744
|
|
|
436,000
|
|
|||||
Stockholders’ equity
|
4,954,697
|
|
|
4,825,588
|
|
|
4,977,598
|
|
|
4,479,055
|
|
|
4,397,691
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.80
|
%
|
|
1.91
|
%
|
|
1.58
|
%
|
|
1.66
|
%
|
|
1.70
|
%
|
|||||
Return on average equity
|
9.63
|
%
|
|
9.68
|
%
|
|
7.71
|
%
|
|
7.85
|
%
|
|
7.99
|
%
|
|||||
Return on average tangible equity (1)
|
20.66
|
%
|
|
21.22
|
%
|
|
15.15
|
%
|
|
15.52
|
%
|
|
15.76
|
%
|
|||||
Net interest margin
|
4.54
|
%
|
|
5.05
|
%
|
|
5.10
|
%
|
|
5.40
|
%
|
|
5.60
|
%
|
|||||
Yield on average loans and leases
|
6.00
|
%
|
|
6.22
|
%
|
|
5.97
|
%
|
|
6.32
|
%
|
|
6.51
|
%
|
|||||
Cost of average total deposits
|
0.77
|
%
|
|
0.44
|
%
|
|
0.27
|
%
|
|
0.20
|
%
|
|
0.32
|
%
|
|||||
Efficiency ratio
|
42.7
|
%
|
|
41.0
|
%
|
|
40.8
|
%
|
|
39.8
|
%
|
|
38.5
|
%
|
|||||
Equity to assets ratio (1)
|
18.5
|
%
|
|
18.8
|
%
|
|
19.9
|
%
|
|
20.5
|
%
|
|
20.7
|
%
|
|||||
Tangible common equity ratio (1)
|
9.8
|
%
|
|
9.6
|
%
|
|
10.5
|
%
|
|
11.5
|
%
|
|
11.4
|
%
|
|||||
Average equity to average assets ratio
|
18.6
|
%
|
|
19.8
|
%
|
|
20.5
|
%
|
|
21.2
|
%
|
|
21.3
|
%
|
|||||
Dividend payout ratio
|
61.7
|
%
|
|
61.9
|
%
|
|
69.1
|
%
|
|
69.1
|
%
|
|
71.8
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios (consolidated):
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 leverage ratio
|
9.74
|
%
|
|
10.13
|
%
|
|
10.66
|
%
|
|
11.91
|
%
|
|
11.67
|
%
|
|||||
Tier 1 capital ratio
|
9.78
|
%
|
|
10.01
|
%
|
|
10.91
|
%
|
|
12.31
|
%
|
|
12.60
|
%
|
|||||
Total capital ratio
|
12.41
|
%
|
|
12.72
|
%
|
|
13.75
|
%
|
|
15.56
|
%
|
|
15.65
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Credit Losses Data (3):
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses
|
$
|
174,646
|
|
|
$
|
169,333
|
|
|
$
|
161,647
|
|
|
$
|
161,278
|
|
|
$
|
122,268
|
|
Allowance for credit losses to loans and leases
|
0.93
|
%
|
|
0.94
|
%
|
|
0.96
|
%
|
|
1.05
|
%
|
|
0.86
|
%
|
|||||
Allowance for credit losses to nonaccrual loans and leases
|
189.1
|
%
|
|
213.5
|
%
|
|
103.8
|
%
|
|
94.5
|
%
|
|
94.8
|
%
|
|||||
Net charge-offs to average loans and leases
|
0.09
|
%
|
|
0.26
|
%
|
|
0.40
|
%
|
|
0.15
|
%
|
|
0.06
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming Assets Data (4):
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans and leases
|
$
|
92,353
|
|
|
$
|
79,333
|
|
|
$
|
157,545
|
|
|
$
|
173,527
|
|
|
$
|
133,615
|
|
Accruing loan past due 90 days or more
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
700
|
|
|||||
Foreclosed assets, net
|
440
|
|
|
5,299
|
|
|
1,329
|
|
|
12,976
|
|
|
22,120
|
|
|||||
Total nonperforming assets
|
$
|
92,793
|
|
|
$
|
84,632
|
|
|
$
|
158,874
|
|
|
$
|
186,503
|
|
|
$
|
156,435
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans and leases to loans and leases
|
0.49
|
%
|
|
0.44
|
%
|
|
0.93
|
%
|
|
1.12
|
%
|
|
0.92
|
%
|
|||||
Nonperforming assets to loans and leases and
|
|
|
|
|
|
|
|
|
|
||||||||||
foreclosed assets
|
0.49
|
%
|
|
0.47
|
%
|
|
0.94
|
%
|
|
1.21
|
%
|
|
1.08
|
%
|
(3)
|
Amounts and ratios related to 2019 and 2018 are for total loans and leases held for investment, net of deferred fees. Amounts and ratios related to 2017 and prior years are for Non-PCI loans and leases held for investment, net of deferred fees.
|
(4)
|
Amounts and ratios are for total loans and leases held for investment, net of deferred fees.
|
•
|
Exiting the healthcare, technology, and general cash flow lending businesses by selling $1.5 billion of cash flow loans at year-end 2017 and reducing the cash flow loan portfolio from approximately $2.4 billion at the end of 2016 to approximately $38 million as of December 31, 2019.
|
•
|
Reducing our exposure to healthcare real estate from approximately $955 million at the end of 2016 to approximately $334 million as of December 31, 2019.
|
•
|
Shifting our Venture Banking strategy to emphasize growth in equity fund loans which, as a percentage of our Venture Banking loan portfolio, increased from 16% as of the end of 2016 to 55% as of December 31, 2019.
|
•
|
Ceasing the origination of security monitoring loans and healthcare real estate loans in our National Lending group effective October 2019.
|
•
|
Classified loans and leases were reduced to 0.93% of loans and leases as of December 31, 2019 from 2.67% at December 31, 2016.
|
•
|
Nonaccrual loans and leases were reduced to 0.49% of loans and leases as of December 31, 2019 from 1.11% at December 31, 2016.
|
•
|
The provision for credit losses as a percentage of average loans and leases was reduced to 0.12% for the year ended December 31, 2019 from 0.42% in 2016 (excluding PCI provision and average loans).
|
|
|
Year Ended December 31,
|
||||||||||
Efficiency Ratio
|
2019
|
|
2018
|
|
2017
|
|||||||
|
|
(Dollars in thousands)
|
||||||||||
Noninterest expense
|
$
|
502,251
|
|
|
$
|
511,232
|
|
|
$
|
495,661
|
|
|
Less:
|
Intangible asset amortization
|
18,726
|
|
|
22,506
|
|
|
14,240
|
|
|||
|
Foreclosed assets (income) expense, net
|
(3,555
|
)
|
|
(751
|
)
|
|
1,702
|
|
|||
|
Acquisition, integration and reorganization costs
|
349
|
|
|
1,770
|
|
|
19,735
|
|
|||
Noninterest expense used for efficiency ratio
|
$
|
486,731
|
|
|
$
|
487,707
|
|
|
$
|
459,984
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income (tax equivalent)
|
$
|
1,022,090
|
|
|
$
|
1,048,915
|
|
|
$
|
999,362
|
|
|
Noninterest income
|
142,562
|
|
|
148,635
|
|
|
128,573
|
|
||||
Net revenues
|
1,164,652
|
|
|
1,197,550
|
|
|
1,127,935
|
|
||||
Less:
|
Gain (loss) on sale of securities
|
25,445
|
|
|
8,176
|
|
|
(541
|
)
|
|||
Net revenues used for efficiency ratio
|
$
|
1,139,207
|
|
|
$
|
1,189,374
|
|
|
$
|
1,128,476
|
|
|
|
|
|
|
|
|
|
||||||
Efficiency ratio
|
42.7
|
%
|
|
41.0
|
%
|
|
40.8
|
%
|
•
|
current economic trends and forecasts;
|
•
|
current collateral values, performance trends, and overall outlook in the markets where we lend;
|
•
|
legal and regulatory matters that could impact our borrowers’ ability to repay loans and leases;
|
•
|
loan and lease portfolio composition and any loan concentrations;
|
•
|
current lending policies and the effects of any new policies or policy amendments;
|
•
|
loan and lease production volume and mix;
|
•
|
loan and lease portfolio credit performance trends;
|
•
|
results of independent credit reviews; and
|
•
|
changes in management related to credit administration functions.
|
•
|
Pass: Loans and leases rated as "pass" are not adversely classified and collection and repayment in full are expected.
|
•
|
Special Mention: Loans and leases rated as "special mention" have a potential weakness that requires management's attention. If not addressed, these potential weaknesses may result in further deterioration in the borrower's ability to repay the loan or lease.
|
•
|
Substandard: Loans and leases rated as "substandard" have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the possibility that we will sustain some loss if the weaknesses are not corrected.
|
•
|
Doubtful: Loans and leases rated as "doubtful" have all the weaknesses of those rated as "substandard," with the additional trait that the weaknesses make collection or repayment in full highly questionable and improbable.
|
•
|
Return on average tangible equity, tangible common equity ratio, and tangible book value per share: Given that the use of these measures is prevalent among banking regulators, investors and analysts, we disclose them in addition to the related GAAP measures of return on average equity, equity to assets ratio, and book value per share, respectively. The reconciliations of these non-GAAP measurements to the GAAP measurements are presented in the following tables for and as of the periods presented.
|
|
|
Year Ended December 31,
|
||||||||||
Return on Average Tangible Equity
|
2019
|
|
2018
|
|
2017
|
|||||||
|
|
(Dollars in thousands)
|
||||||||||
Net earnings
|
$
|
468,636
|
|
|
$
|
465,339
|
|
|
$
|
357,818
|
|
|
|
|
|
|
|
|
|
||||||
Average stockholders' equity
|
$
|
4,864,332
|
|
|
$
|
4,809,667
|
|
|
$
|
4,641,495
|
|
|
Less:
|
Average intangible assets
|
2,596,389
|
|
|
2,616,820
|
|
|
2,279,010
|
|
|||
Average tangible common equity
|
$
|
2,267,943
|
|
|
$
|
2,192,847
|
|
|
$
|
2,362,485
|
|
|
|
|
|
|
|
|
|
||||||
Return on average equity (1)
|
9.63
|
%
|
|
9.68
|
%
|
|
7.71
|
%
|
||||
Return on average tangible equity (2)
|
20.66
|
%
|
|
21.22
|
%
|
|
15.15
|
%
|
(1)
|
Net earnings divided by average stockholders' equity.
|
(2)
|
Net earnings divided by average tangible common equity.
|
Tangible Common Equity Ratio/
|
December 31,
|
||||||||||
Tangible Book Value Per Share
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands, except per share data)
|
||||||||||
Stockholders’ equity
|
$
|
4,954,697
|
|
|
$
|
4,825,588
|
|
|
$
|
4,977,598
|
|
Less: Intangible assets
|
2,587,064
|
|
|
2,605,790
|
|
|
2,628,296
|
|
|||
Tangible common equity
|
$
|
2,367,633
|
|
|
$
|
2,219,798
|
|
|
$
|
2,349,302
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
26,770,806
|
|
|
$
|
25,731,354
|
|
|
$
|
24,994,876
|
|
Less: Intangible assets
|
2,587,064
|
|
|
2,605,790
|
|
|
2,628,296
|
|
|||
Tangible assets
|
$
|
24,183,742
|
|
|
$
|
23,125,564
|
|
|
$
|
22,366,580
|
|
|
|
|
|
|
|
||||||
Equity to assets ratio
|
18.51
|
%
|
|
18.75
|
%
|
|
19.91
|
%
|
|||
Tangible common equity ratio (1)
|
9.79
|
%
|
|
9.60
|
%
|
|
10.50
|
%
|
|||
Book value per share
|
$
|
41.36
|
|
|
$
|
39.17
|
|
|
$
|
38.65
|
|
Tangible book value per share (2)
|
$
|
19.77
|
|
|
$
|
18.02
|
|
|
$
|
18.24
|
|
Shares outstanding
|
119,781,605
|
|
|
123,189,833
|
|
|
128,782,878
|
|
(1)
|
Tangible common equity divided by tangible assets.
|
(2)
|
Tangible common equity divided by shares outstanding.
|
(1)
|
Includes nonaccrual loans and leases and loan fees. Starting with the third quarter of 2017, includes tax-equivalent adjustments related to tax-exempt interest on loans.
|
(2)
|
Tax equivalent.
|
(3)
|
Includes discount accretion on acquired loans of $12.1 million, $29.3 million, and $26.1 million for 2019, 2018, and 2017, respectively.
|
(4)
|
Includes tax-equivalent adjustments of $6.2 million, $7.0 million, and $19.4 million for 2019, 2018, and 2017, respectively, related to tax-exempt interest on investment securities. The federal statutory rate utilized was 21% for 2019 and 2018 and 35% for 2017.
|
(5)
|
Total deposits is the sum of interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.
|
|
2019 Compared to 2018
|
|
2018 Compared to 2017
|
||||||||||||||||||||
|
Total
|
|
Increase (Decrease)
|
|
Total
|
|
Increase (Decrease)
|
||||||||||||||||
|
Increase
|
|
Due to
|
|
Increase
|
|
Due to
|
||||||||||||||||
|
(Decrease)
|
|
Rate
|
|
Volume
|
|
(Decrease)
|
|
Rate
|
|
Volume
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and leases (1)
|
$
|
50,134
|
|
|
$
|
(38,762
|
)
|
|
$
|
88,896
|
|
|
$
|
95,784
|
|
|
$
|
55,647
|
|
|
$
|
40,137
|
|
Investment securities (2)
|
3,152
|
|
|
2,058
|
|
|
1,094
|
|
|
1,041
|
|
|
9,815
|
|
|
(8,774
|
)
|
||||||
Deposits in financial institutions
|
4,397
|
|
|
284
|
|
|
4,113
|
|
|
539
|
|
|
(264
|
)
|
|
803
|
|
||||||
Total interest income (2)
|
57,683
|
|
|
(36,420
|
)
|
|
94,103
|
|
|
97,364
|
|
|
65,198
|
|
|
32,166
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest checking deposits
|
21,889
|
|
|
12,272
|
|
|
9,617
|
|
|
11,334
|
|
|
2,807
|
|
|
8,527
|
|
||||||
Money market deposits
|
17,188
|
|
|
16,943
|
|
|
245
|
|
|
16,270
|
|
|
373
|
|
|
15,897
|
|
||||||
Savings deposits
|
(118
|
)
|
|
74
|
|
|
(192
|
)
|
|
(153
|
)
|
|
(105
|
)
|
|
(48
|
)
|
||||||
Time deposits
|
29,361
|
|
|
18,686
|
|
|
10,675
|
|
|
6,995
|
|
|
(2,569
|
)
|
|
9,564
|
|
||||||
Total interest-bearing deposits
|
68,320
|
|
|
47,975
|
|
|
20,345
|
|
|
34,446
|
|
|
506
|
|
|
33,940
|
|
||||||
Borrowings
|
14,976
|
|
|
1,125
|
|
|
13,851
|
|
|
8,347
|
|
|
2,272
|
|
|
6,075
|
|
||||||
Subordinated debentures
|
1,212
|
|
|
1,159
|
|
|
53
|
|
|
5,018
|
|
|
375
|
|
|
4,643
|
|
||||||
Total interest expense
|
84,508
|
|
|
50,259
|
|
|
34,249
|
|
|
47,811
|
|
|
3,153
|
|
|
44,658
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income (2)
|
$
|
(26,825
|
)
|
|
$
|
(86,679
|
)
|
|
$
|
59,854
|
|
|
$
|
49,553
|
|
|
$
|
62,045
|
|
|
$
|
(12,492
|
)
|
(1)
|
Starting with the third quarter of 2017, includes tax-equivalent adjustments related to tax-exempt interest on loans.
|
(2)
|
Tax equivalent.
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
|
Increase
|
|
|
|
Increase
|
|
|
||||||||||
|
2019
|
|
(Decrease)
|
|
2018
|
|
(Decrease)
|
|
2017
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Provision For Credit Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Addition to allowance for loan and lease losses
|
$
|
23,000
|
|
|
$
|
(13,774
|
)
|
|
$
|
36,774
|
|
|
$
|
(14,192
|
)
|
|
$
|
50,966
|
|
(Reduction in) addition to reserve for unfunded
|
|
|
|
|
|
|
|
|
|
||||||||||
loan commitments
|
(1,000
|
)
|
|
(9,226
|
)
|
|
8,226
|
|
|
1,440
|
|
|
6,786
|
|
|||||
Total provision for credit losses
|
$
|
22,000
|
|
|
$
|
(23,000
|
)
|
|
$
|
45,000
|
|
|
$
|
(12,752
|
)
|
|
$
|
57,752
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Quality Metrics (1):
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge‑offs on loans and leases held for
|
|
|
|
|
|
|
|
|
|
||||||||||
investment (2)
|
$
|
16,687
|
|
|
$
|
(27,071
|
)
|
|
$
|
43,758
|
|
|
$
|
(19,199
|
)
|
|
$
|
62,957
|
|
Net charge‑offs to average loans and leases
|
0.09
|
%
|
|
|
|
0.26
|
%
|
|
|
|
0.40
|
%
|
|||||||
At year-end:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses
|
$
|
174,646
|
|
|
$
|
5,313
|
|
|
$
|
169,333
|
|
|
$
|
7,686
|
|
|
$
|
161,647
|
|
Allowance for credit losses to loans and leases
|
|
|
|
|
|
|
|
|
|
||||||||||
held for investment
|
0.93
|
%
|
|
|
|
0.94
|
%
|
|
|
|
0.96
|
%
|
|||||||
Allowance for credit losses to nonaccrual loans
|
|
|
|
|
|
|
|
|
|
||||||||||
and leases held for investment
|
189.1
|
%
|
|
|
|
213.5
|
%
|
|
|
|
103.8
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans and leases held for investment
|
$
|
92,353
|
|
|
$
|
13,020
|
|
|
$
|
79,333
|
|
|
$
|
(76,451
|
)
|
|
$
|
155,784
|
|
Performing TDRs held for investment
|
12,257
|
|
|
(5,444
|
)
|
|
17,701
|
|
|
(39,137
|
)
|
|
56,838
|
|
|||||
Total impaired loans and leases
|
$
|
104,610
|
|
|
$
|
7,576
|
|
|
$
|
97,034
|
|
|
$
|
(115,588
|
)
|
|
$
|
212,622
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Classified loans and leases held for investment
|
$
|
175,912
|
|
|
$
|
(61,198
|
)
|
|
$
|
237,110
|
|
|
$
|
(41,295
|
)
|
|
$
|
278,405
|
|
(1)
|
Amounts and ratios related to 2019 and 2018 are for total loans and leases held for investment, net of deferred fees. Amounts and ratios related to 2017 are for Non-PCI loans and leases held for investment, net of deferred fees.
|
(2)
|
See "- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment" for detail of charge-offs and recoveries by loan portfolio segment, class, and subclass for the periods presented.
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
|
Increase
|
|
|
|
Increase
|
|
|
||||||||||
Noninterest Income
|
2019
|
|
(Decrease)
|
|
2018
|
|
(Decrease)
|
|
2017
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Other commissions and fees
|
$
|
43,623
|
|
|
$
|
(1,920
|
)
|
|
$
|
45,543
|
|
|
$
|
4,121
|
|
|
$
|
41,422
|
|
Leased equipment income
|
38,727
|
|
|
846
|
|
|
37,881
|
|
|
181
|
|
|
37,700
|
|
|||||
Service charges on deposit accounts
|
14,637
|
|
|
(1,872
|
)
|
|
16,509
|
|
|
1,202
|
|
|
15,307
|
|
|||||
Gain on sale of loans and leases
|
1,114
|
|
|
(3,561
|
)
|
|
4,675
|
|
|
(1,522
|
)
|
|
6,197
|
|
|||||
Gain (loss) on sale of securities
|
25,445
|
|
|
17,269
|
|
|
8,176
|
|
|
8,717
|
|
|
(541
|
)
|
|||||
Other income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends and (losses) gains on equity investments
|
(567
|
)
|
|
(4,374
|
)
|
|
3,807
|
|
|
(1,312
|
)
|
|
5,119
|
|
|||||
Warrant income
|
8,669
|
|
|
1,191
|
|
|
7,478
|
|
|
4,946
|
|
|
2,532
|
|
|||||
Other
|
10,914
|
|
|
(13,652
|
)
|
|
24,566
|
|
|
3,729
|
|
|
20,837
|
|
|||||
Total noninterest income
|
$
|
142,562
|
|
|
$
|
(6,073
|
)
|
|
$
|
148,635
|
|
|
$
|
20,062
|
|
|
$
|
128,573
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
|
Increase
|
|
|
|
Increase
|
|
|
||||||||||
Noninterest Expense
|
2019
|
|
(Decrease)
|
|
2018
|
|
(Decrease)
|
|
2017
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Compensation
|
$
|
285,862
|
|
|
$
|
3,294
|
|
|
$
|
282,568
|
|
|
$
|
16,001
|
|
|
$
|
266,567
|
|
Occupancy
|
57,407
|
|
|
4,184
|
|
|
53,223
|
|
|
4,360
|
|
|
48,863
|
|
|||||
Data processing
|
27,556
|
|
|
331
|
|
|
27,225
|
|
|
650
|
|
|
26,575
|
|
|||||
Leased equipment depreciation
|
24,016
|
|
|
2,645
|
|
|
21,371
|
|
|
604
|
|
|
20,767
|
|
|||||
Intangible asset amortization
|
18,726
|
|
|
(3,780
|
)
|
|
22,506
|
|
|
8,266
|
|
|
14,240
|
|
|||||
Other professional services
|
17,803
|
|
|
(4,149
|
)
|
|
21,952
|
|
|
4,599
|
|
|
17,353
|
|
|||||
Insurance and assessments
|
16,404
|
|
|
(4,301
|
)
|
|
20,705
|
|
|
972
|
|
|
19,733
|
|
|||||
Customer related expense
|
13,839
|
|
|
3,486
|
|
|
10,353
|
|
|
2,056
|
|
|
8,297
|
|
|||||
Loan expense
|
12,931
|
|
|
2,362
|
|
|
10,569
|
|
|
(3,263
|
)
|
|
13,832
|
|
|||||
Acquisition, integration and reorganization costs
|
349
|
|
|
(1,421
|
)
|
|
1,770
|
|
|
(17,965
|
)
|
|
19,735
|
|
|||||
Foreclosed assets (income) expense, net
|
(3,555
|
)
|
|
(2,804
|
)
|
|
(751
|
)
|
|
(2,453
|
)
|
|
1,702
|
|
|||||
Other
|
30,913
|
|
|
(8,828
|
)
|
|
39,741
|
|
|
1,744
|
|
|
37,997
|
|
|||||
Total noninterest expense
|
$
|
502,251
|
|
|
$
|
(8,981
|
)
|
|
$
|
511,232
|
|
|
$
|
15,571
|
|
|
$
|
495,661
|
|
|
Three Months Ended
|
||||||
|
December 31,
|
|
September 30,
|
||||
|
2019
|
|
2019
|
||||
|
(Dollars in thousands, except per share data)
|
||||||
Earnings Summary:
|
|
|
|
||||
Interest income
|
$
|
293,593
|
|
|
$
|
307,208
|
|
Interest expense
|
(46,974
|
)
|
|
(54,972
|
)
|
||
Net interest income
|
246,619
|
|
|
252,236
|
|
||
Provision for credit losses
|
(3,000
|
)
|
|
(7,000
|
)
|
||
Net interest income after provision for credit losses
|
243,619
|
|
|
245,236
|
|
||
Gain on sale of securities
|
184
|
|
|
908
|
|
||
Other noninterest income
|
26,992
|
|
|
32,521
|
|
||
Total noninterest income
|
27,176
|
|
|
33,429
|
|
||
Foreclosed assets income (expense), net
|
3,446
|
|
|
(8
|
)
|
||
Acquisition, integration and reorganization costs
|
269
|
|
|
—
|
|
||
Other noninterest expense
|
(127,443
|
)
|
|
(126,801
|
)
|
||
Total noninterest expense
|
(123,728
|
)
|
|
(126,809
|
)
|
||
Earnings before income taxes
|
147,067
|
|
|
151,856
|
|
||
Income tax expense
|
29,186
|
|
|
41,830
|
|
||
Net earnings
|
$
|
117,881
|
|
|
$
|
110,026
|
|
|
|
|
|
||||
Performance Measures:
|
|
|
|
||||
Diluted earnings per share
|
$
|
0.98
|
|
|
$
|
0.92
|
|
Annualized return on:
|
|
|
|
||||
Average assets
|
1.77
|
%
|
|
1.65
|
%
|
||
Average tangible equity (1)(2)
|
19.98
|
%
|
|
19.01
|
%
|
||
Net interest margin (tax equivalent)
|
4.33
|
%
|
|
4.46
|
%
|
||
Yield on average loans and leases (tax equivalent)
|
5.67
|
%
|
|
5.91
|
%
|
||
Cost of average total deposits
|
0.71
|
%
|
|
0.83
|
%
|
||
Efficiency ratio
|
44.8
|
%
|
|
42.3
|
%
|
(1)
|
Calculation reduces average equity by average intangible assets.
|
(2)
|
See "Non-GAAP Measurements."
|
|
December 31,
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
Fair
|
|
% of
|
|
Duration
|
|
Fair
|
|
% of
|
|
Duration
|
|
Fair
|
|
% of
|
|
Duration
|
||||||||||||
Security Type
|
Value
|
|
Total
|
|
(in years)
|
|
Value
|
|
Total
|
|
(in years)
|
|
Value
|
|
Total
|
|
(in years)
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Agency residential CMOs
|
$
|
1,136,397
|
|
|
30
|
%
|
|
3.7
|
|
|
$
|
632,850
|
|
|
16
|
%
|
|
4.3
|
|
|
$
|
275,709
|
|
|
7
|
%
|
|
6.8
|
|
Agency commercial MBS
|
1,108,224
|
|
|
29
|
%
|
|
4.4
|
|
|
1,112,704
|
|
|
28
|
%
|
|
4.9
|
|
|
1,163,969
|
|
|
31
|
%
|
|
5.4
|
|
|||
Municipal securities
|
735,159
|
|
|
19
|
%
|
|
7.6
|
|
|
1,312,194
|
|
|
33
|
%
|
|
7.3
|
|
|
1,680,068
|
|
|
45
|
%
|
|
7.3
|
|
|||
Agency residential MBS
|
305,198
|
|
|
8
|
%
|
|
3.3
|
|
|
281,088
|
|
|
7
|
%
|
|
3.7
|
|
|
246,274
|
|
|
7
|
%
|
|
3.0
|
|
|||
Asset-backed securities
|
214,783
|
|
|
6
|
%
|
|
1.1
|
|
|
81,385
|
|
|
2
|
%
|
|
2.4
|
|
|
88,710
|
|
|
2
|
%
|
|
3.0
|
|
|||
Collateralized loan obligations
|
123,756
|
|
|
3
|
%
|
|
0.2
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
7,015
|
|
|
—
|
%
|
|
0.3
|
|
|||
Private label residential CMOs
|
99,483
|
|
|
3
|
%
|
|
3.2
|
|
|
101,205
|
|
|
2
|
%
|
|
4.2
|
|
|
125,987
|
|
|
3
|
%
|
|
5.1
|
|
|||
SBA securities
|
48,258
|
|
|
1
|
%
|
|
4.0
|
|
|
67,047
|
|
|
2
|
%
|
|
3.5
|
|
|
160,334
|
|
|
4
|
%
|
|
2.0
|
|
|||
Corporate debt securities
|
20,748
|
|
|
1
|
%
|
|
11.3
|
|
|
17,553
|
|
|
—
|
%
|
|
11.0
|
|
|
19,295
|
|
|
1
|
%
|
|
11.8
|
|
|||
U.S. Treasury securities
|
5,181
|
|
|
—
|
%
|
|
3.2
|
|
|
403,405
|
|
|
10
|
%
|
|
3.0
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|||
Equity investments (1)
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
7,070
|
|
|
—
|
%
|
|
—
|
|
|||
Total securities available-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
for-sale
|
$
|
3,797,187
|
|
|
100
|
%
|
|
4.4
|
|
|
$
|
4,009,431
|
|
|
100
|
%
|
|
5.2
|
|
|
$
|
3,774,431
|
|
|
100
|
%
|
|
6.0
|
|
(1)
|
In connection with our adoption of ASU 2016-01 and ASU 2018-03 on January 1, 2018, we reclassified $7.1 million of equity investments from securities available-for-sale to other assets in the first quarter of 2018. The reclassification was applied prospectively without prior period amounts being restated.
|
|
December 31, 2019
|
|||||
|
Fair
|
|
% of
|
|||
Municipal Securities by State
|
Value
|
|
Total
|
|||
|
(Dollars in thousands)
|
|||||
California
|
$
|
231,386
|
|
|
32
|
%
|
Washington
|
114,809
|
|
|
16
|
%
|
|
New York
|
52,228
|
|
|
7
|
%
|
|
Texas
|
40,672
|
|
|
6
|
%
|
|
Utah
|
37,717
|
|
|
5
|
%
|
|
Oregon
|
30,585
|
|
|
4
|
%
|
|
Florida
|
29,806
|
|
|
4
|
%
|
|
Illinois
|
24,943
|
|
|
3
|
%
|
|
District of Columbia
|
17,669
|
|
|
2
|
%
|
|
Ohio
|
17,476
|
|
|
2
|
%
|
|
Total of ten largest states
|
597,291
|
|
|
81
|
%
|
|
All other states
|
137,868
|
|
|
19
|
%
|
|
Total municipal securities
|
$
|
735,159
|
|
|
100
|
%
|
|
|
|
|
|
Due After
|
|
Due After
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Due
|
|
One Year
|
|
Five Years
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Within
|
|
Through
|
|
Through
|
|
Due After
|
|
|
|
|
|||||||||||||||||||||||
|
One Year
|
|
Five Years
|
|
Ten Years
|
|
Ten Years
|
|
Total
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Fair
|
|
|
|
Fair
|
|
|
|
Fair
|
|
|
|
Fair
|
|
|
|
Fair
|
|
|
|||||||||||||||
December 31, 2019
|
Value
|
|
Rate(1)
|
|
Value
|
|
Rate(1)
|
|
Value
|
|
Rate(1)
|
|
Value
|
|
Rate(1)
|
|
Value
|
|
Rate(1)
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Agency residential CMOs
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
116,479
|
|
|
3.40
|
%
|
|
$
|
1,019,918
|
|
|
2.96
|
%
|
|
$
|
1,136,397
|
|
|
3.00
|
%
|
Agency commercial MBS
|
1,693
|
|
|
2.96
|
%
|
|
202,084
|
|
|
2.88
|
%
|
|
780,510
|
|
|
2.78
|
%
|
|
123,937
|
|
|
3.22
|
%
|
|
1,108,224
|
|
|
2.85
|
%
|
|||||
Municipal securities
|
6,191
|
|
|
4.52
|
%
|
|
14,068
|
|
|
4.36
|
%
|
|
56,935
|
|
|
2.05
|
%
|
|
657,965
|
|
|
3.58
|
%
|
|
735,159
|
|
|
3.49
|
%
|
|||||
Agency residential MBS
|
11
|
|
|
4.65
|
%
|
|
6,010
|
|
|
4.01
|
%
|
|
20,502
|
|
|
3.78
|
%
|
|
278,675
|
|
|
3.95
|
%
|
|
305,198
|
|
|
3.94
|
%
|
|||||
Asset-backed securities
|
—
|
|
|
—
|
%
|
|
50,798
|
|
|
3.44
|
%
|
|
14,651
|
|
|
2.62
|
%
|
|
149,334
|
|
|
3.02
|
%
|
|
214,783
|
|
|
3.09
|
%
|
|||||
Collateralized loan obligations
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
10,890
|
|
|
3.71
|
%
|
|
112,866
|
|
|
3.23
|
%
|
|
123,756
|
|
|
3.28
|
%
|
|||||
Private label residential CMOs
|
2
|
|
|
5.07
|
%
|
|
353
|
|
|
3.59
|
%
|
|
—
|
|
|
—
|
%
|
|
99,128
|
|
|
3.59
|
%
|
|
99,483
|
|
|
3.59
|
%
|
|||||
SBA securities
|
—
|
|
|
—
|
%
|
|
4,565
|
|
|
3.66
|
%
|
|
13,087
|
|
|
2.80
|
%
|
|
30,606
|
|
|
2.91
|
%
|
|
48,258
|
|
|
2.95
|
%
|
|||||
Corporate debt securities
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
20,748
|
|
|
4.88
|
%
|
|
20,748
|
|
|
4.88
|
%
|
|||||
U.S. Treasury securities
|
—
|
|
|
—
|
|
|
5,181
|
|
|
2.65
|
%
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
5,181
|
|
|
2.65
|
%
|
|||||
Total securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
available-for-sale
|
$
|
7,897
|
|
|
4.18
|
%
|
|
$
|
283,059
|
|
|
3.09
|
%
|
|
$
|
1,013,054
|
|
|
2.84
|
%
|
|
$
|
2,493,177
|
|
|
3.30
|
%
|
|
$
|
3,797,187
|
|
|
3.17
|
%
|
(1)
|
Rates presented are weighted average rates. Rates on tax-exempt securities are contractual rates and are not presented on a tax-equivalent basis.
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Healthcare real estate
|
$
|
334,070
|
|
|
$
|
451,776
|
|
|
$
|
843,653
|
|
|
$
|
955,477
|
|
|
$
|
1,230,787
|
|
Hospitality
|
625,798
|
|
|
575,516
|
|
|
695,043
|
|
|
689,158
|
|
|
656,750
|
|
|||||
SBA program
|
556,889
|
|
|
559,113
|
|
|
551,606
|
|
|
454,196
|
|
|
473,960
|
|
|||||
Other commercial real estate
|
2,685,930
|
|
|
3,237,893
|
|
|
3,295,438
|
|
|
2,297,865
|
|
|
2,284,036
|
|
|||||
Total commercial real estate mortgage
|
4,202,687
|
|
|
4,824,298
|
|
|
5,385,740
|
|
|
4,396,696
|
|
|
4,645,533
|
|
|||||
Income producing residential
|
3,665,790
|
|
|
2,971,213
|
|
|
2,245,058
|
|
|
1,169,267
|
|
|
1,035,164
|
|
|||||
Other residential real estate
|
104,270
|
|
|
122,630
|
|
|
221,836
|
|
|
144,769
|
|
|
176,045
|
|
|||||
Total income producing and other residential
|
|
|
|
|
|
|
|
|
|
||||||||||
real estate mortgage
|
3,770,060
|
|
|
3,093,843
|
|
|
2,466,894
|
|
|
1,314,036
|
|
|
1,211,209
|
|
|||||
Total real estate mortgage
|
7,972,747
|
|
|
7,918,141
|
|
|
7,852,634
|
|
|
5,710,732
|
|
|
5,856,742
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
1,082,368
|
|
|
912,583
|
|
|
769,075
|
|
|
581,246
|
|
|
345,991
|
|
|||||
Residential
|
1,655,434
|
|
|
1,321,073
|
|
|
822,154
|
|
|
384,001
|
|
|
184,382
|
|
|||||
Total real estate construction and land (1)
|
2,737,802
|
|
|
2,233,656
|
|
|
1,591,229
|
|
|
965,247
|
|
|
530,373
|
|
|||||
Total real estate
|
10,710,549
|
|
|
10,151,797
|
|
|
9,443,863
|
|
|
6,675,979
|
|
|
6,387,115
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lender finance & timeshare
|
2,118,767
|
|
|
1,780,731
|
|
|
1,609,937
|
|
|
1,666,855
|
|
|
1,587,577
|
|
|||||
Equipment finance
|
852,278
|
|
|
734,331
|
|
|
656,995
|
|
|
691,967
|
|
|
890,349
|
|
|||||
Premium finance
|
467,469
|
|
|
356,354
|
|
|
232,664
|
|
|
161,835
|
|
|
108,738
|
|
|||||
Other asset-based
|
309,893
|
|
|
434,005
|
|
|
425,354
|
|
|
428,284
|
|
|
498,671
|
|
|||||
Total asset-based
|
3,748,407
|
|
|
3,305,421
|
|
|
2,924,950
|
|
|
2,948,941
|
|
|
3,085,335
|
|
|||||
Equity fund loans
|
1,199,268
|
|
|
797,500
|
|
|
471,163
|
|
|
325,047
|
|
|
228,863
|
|
|||||
Early stage
|
212,509
|
|
|
225,566
|
|
|
443,370
|
|
|
448,458
|
|
|
347,298
|
|
|||||
Expansion stage
|
693,459
|
|
|
908,047
|
|
|
953,199
|
|
|
920,006
|
|
|
600,541
|
|
|||||
Late stage
|
74,186
|
|
|
107,635
|
|
|
255,003
|
|
|
294,389
|
|
|
281,311
|
|
|||||
Total venture capital
|
2,179,422
|
|
|
2,038,748
|
|
|
2,122,735
|
|
|
1,987,900
|
|
|
1,458,013
|
|
|||||
Security monitoring
|
619,260
|
|
|
643,369
|
|
|
573,066
|
|
|
428,759
|
|
|
438,113
|
|
|||||
Secured business loans
|
583,300
|
|
|
788,012
|
|
|
743,824
|
|
|
354,822
|
|
|
352,679
|
|
|||||
Other lending
|
527,049
|
|
|
514,947
|
|
|
475,584
|
|
|
310,896
|
|
|
300,383
|
|
|||||
Cash flow
|
38,058
|
|
|
114,098
|
|
|
278,920
|
|
|
2,373,235
|
|
|
2,335,469
|
|
|||||
Total other commercial
|
1,767,667
|
|
|
2,060,426
|
|
|
2,071,394
|
|
|
3,467,712
|
|
|
3,426,644
|
|
|||||
Total commercial
|
7,695,496
|
|
|
7,404,595
|
|
|
7,119,079
|
|
|
8,404,553
|
|
|
7,969,992
|
|
|||||
Consumer
|
440,827
|
|
|
401,321
|
|
|
409,801
|
|
|
375,422
|
|
|
121,147
|
|
|||||
Total loans and leases held for investment,
|
|
|
|
|
|
|
|
|
|
||||||||||
net of deferred fees
|
$
|
18,846,872
|
|
|
$
|
17,957,713
|
|
|
$
|
16,972,743
|
|
|
$
|
15,455,954
|
|
|
$
|
14,478,254
|
|
(1)
|
Includes $173.4 million, $168.9 million, $180.1 million, $152.9 million, and $75.2 million at December 31, 2019, 2018, 2017, 2016, and 2015 of land acquisition and development loans.
|
•
|
Commercial real estate mortgage loans decreased by 13% to $4.2 billion or 22% of total loans and leases held for investment at December 31, 2019 from $4.8 billion or 27% at December 31, 2018. The lower balance and composition ratio was attributable primarily to the balance of other commercial real estate loans declining to $2.7 billion at December 31, 2019 from $3.2 billion at December 31, 2018. This decline occurred because loan prepayments exceeded the amount of newly originated loans. Also contributing to the lower balance and composition ratio was the balance of healthcare real estate loans declining to $334.1 million at December 31, 2019 from $451.8 million at December 31, 2018. This decline in new healthcare real estate lending resulted from having fewer loan opportunities meeting our credit standards and then ceasing the origination of healthcare real estate loans in our National Lending group in October 2019.
|
•
|
Income producing and other residential real estate mortgage loans increased by 22% to $3.8 billion or 20% of total loans and leases held for investment at December 31, 2019 from $3.1 billion or 17% at December 31, 2018. The higher balance and composition ratio was attributable to our continued emphasis on originating and purchasing multi-family secured real estate mortgage loans during 2019 due primarily to the favorable credit risk profile of those loans. We purchased $549 million of multi-family loans in 2019 compared to $473 million in 2018.
|
•
|
Commercial real estate construction and land loans increased by 19% to $1.1 billion or 6% of total loans and leases held for investment at December 31, 2019 from $912.6 million or 5% at December 31, 2018. The higher balance and comparable composition ratio was attributable to our continued origination of these types of loans and increases in balances on existing loans as disbursements occur during construction.
|
•
|
Residential real estate construction and land loans increased by 25% to $1.7 billion or 9% of total loans and leases held for investment at December 31, 2019 from $1.3 billion or 8% at December 31, 2018. The higher balance and composition ratio was attributable to our continued emphasis on originating multi-family secured real estate construction loans in markets with strong demand for new multi-family housing and increases in balances on existing loans as disbursements occur during construction.
|
•
|
Asset-based loans and leases increased by 13% to $3.7 billion or 20% of total loans and leases held for investment at December 31, 2019 from $3.3 billion or 18% at December 31, 2018. The higher balance and composition ratio was due primarily to net loan growth in lender finance & timeshare loans and premium finance loans attributable to continued emphasis on originations for these loan types because of their favorable historical credit performance. Lender finance & timeshare loans increased to $2.1 billion at December 31, 2019 from $1.8 billion at December 31, 2018, and premium finance loans increased to $467.5 million at December 31, 2019 from $356.4 million at December 31, 2018.
|
•
|
Venture capital loans increased by 7% to $2.2 billion or 12% of total loans and leases held for investment at December 31, 2019 from $2.0 billion or 11% at December 31, 2018. The higher balance and composition ratio was attributable primarily to higher equity fund loans, offset partially by lower expansion stage, early stage, and late stage loans to venture-backed companies. Equity fund loans increased to $1.2 billion at December 31, 2019 from $797.5 million at December 31, 2018. The increase in equity fund loans was due to continued emphasis on originations because of favorable historical credit performance. Expansion stage loans, early stage loans, and late stage loans decreased collectively to $980.2 million at December 31, 2019 from $1.2 billion at December 31, 2018.
|
•
|
Other commercial loans decreased by 14% to $1.8 billion or 9% of total loans and leases held for investment at December 31, 2019 from $2.1 billion or 12% at December 31, 2018. The lower balance was attributable primarily to lower secured business loans, which decreased to $583.3 million at December 31, 2019 from $788.0 million at December 31, 2018, and to the declining balance of the cash flow loans, which decreased to $38.1 million at December 31, 2019 from $114.1 million at December 31, 2018.
|
|
December 31,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
|
|
% of
|
|
|
|
% of
|
||||||
Real Estate Loans by State
|
Balance
|
|
Total
|
|
Balance
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||||
California
|
$
|
6,510,094
|
|
|
61
|
%
|
|
$
|
5,798,045
|
|
|
57
|
%
|
New York
|
711,301
|
|
|
7
|
%
|
|
855,644
|
|
|
8
|
%
|
||
Florida
|
598,561
|
|
|
6
|
%
|
|
547,054
|
|
|
5
|
%
|
||
Washington
|
324,588
|
|
|
3
|
%
|
|
253,545
|
|
|
3
|
%
|
||
Oregon
|
288,764
|
|
|
3
|
%
|
|
227,067
|
|
|
2
|
%
|
||
Texas
|
260,513
|
|
|
2
|
%
|
|
378,834
|
|
|
4
|
%
|
||
District of Columbia
|
166,641
|
|
|
2
|
%
|
|
81,174
|
|
|
1
|
%
|
||
Arizona
|
162,317
|
|
|
1
|
%
|
|
235,425
|
|
|
2
|
%
|
||
New Jersey
|
159,791
|
|
|
1
|
%
|
|
179,045
|
|
|
2
|
%
|
||
Virginia
|
150,646
|
|
|
1
|
%
|
|
206,920
|
|
|
2
|
%
|
||
Total of 10 largest states
|
9,333,216
|
|
|
87
|
%
|
|
8,762,753
|
|
|
86
|
%
|
||
All other states
|
1,377,333
|
|
|
13
|
%
|
|
1,389,044
|
|
|
14
|
%
|
||
Total real estate loans held for investment, net of deferred fees
|
$
|
10,710,549
|
|
|
100
|
%
|
|
$
|
10,151,797
|
|
|
100
|
%
|
Roll Forward of Loans and Leases Held for Investment,
|
Year Ended December 31,
|
||||||||||
Net of Deferred Fees (1)
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Balance, beginning of year
|
$
|
17,957,713
|
|
|
$
|
16,972,743
|
|
|
$
|
15,455,954
|
|
Additions:
|
|
|
|
|
|
||||||
Production
|
4,863,288
|
|
|
4,888,614
|
|
|
4,685,763
|
|
|||
Disbursements
|
5,092,219
|
|
|
4,104,335
|
|
|
3,204,272
|
|
|||
Total production and disbursements
|
9,955,507
|
|
|
8,992,949
|
|
|
7,890,035
|
|
|||
Reductions:
|
|
|
|
|
|
||||||
Payoffs
|
(4,669,530
|
)
|
|
(4,289,297
|
)
|
|
(3,801,592
|
)
|
|||
Paydowns
|
(4,262,977
|
)
|
|
(3,480,997
|
)
|
|
(2,769,309
|
)
|
|||
Total payoffs and paydowns
|
(8,932,507
|
)
|
|
(7,770,294
|
)
|
|
(6,570,901
|
)
|
|||
Sales
|
(76,335
|
)
|
|
(161,729
|
)
|
|
(1,316,259
|
)
|
|||
Transfers to foreclosed assets
|
(120
|
)
|
|
(16,914
|
)
|
|
(580
|
)
|
|||
Charge-offs
|
(32,262
|
)
|
|
(59,042
|
)
|
|
(80,296
|
)
|
|||
Transfers to loans held for sale
|
(25,124
|
)
|
|
—
|
|
|
(481,100
|
)
|
|||
Total reductions
|
(9,066,348
|
)
|
|
(8,007,979
|
)
|
|
(8,449,136
|
)
|
|||
Loans acquired through CUB acquisition
|
—
|
|
|
—
|
|
|
2,075,890
|
|
|||
Net increase
|
889,159
|
|
|
984,970
|
|
|
1,516,789
|
|
|||
Balance, end of year
|
$
|
18,846,872
|
|
|
$
|
17,957,713
|
|
|
$
|
16,972,743
|
|
|
|
|
|
|
|
||||||
Weighted average rate on production (2)
|
5.06
|
%
|
|
5.23
|
%
|
|
4.98
|
%
|
(1)
|
Includes direct financing leases but excludes equipment leased to others under operating leases.
|
(2)
|
The weighted average rate on production presents contractual rates on a tax equivalent basis and does not include amortized fees. Amortized fees added approximately 22 basis points to loan yields in 2019, 31 basis points to loan yields in 2018, and 30 basis points to loan yields in 2017.
|
|
|
|
Due After
|
|
|
|
|
||||||||
|
Due
|
|
One Year
|
|
Due
|
|
|
||||||||
|
Within
|
|
Through
|
|
After
|
|
|
||||||||
December 31, 2019
|
One Year
|
|
Five Years
|
|
Five Years
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Real estate mortgage
|
$
|
1,009,147
|
|
|
$
|
2,139,286
|
|
|
$
|
4,824,314
|
|
|
$
|
7,972,747
|
|
Real estate construction and land
|
1,159,167
|
|
|
1,416,937
|
|
|
161,698
|
|
|
2,737,802
|
|
||||
Commercial
|
2,639,470
|
|
|
4,057,286
|
|
|
998,740
|
|
|
7,695,496
|
|
||||
Consumer
|
16,344
|
|
|
75,783
|
|
|
348,700
|
|
|
440,827
|
|
||||
Total loans and leases held for investment, net of deferred fees
|
$
|
4,824,128
|
|
|
$
|
7,689,292
|
|
|
$
|
6,333,452
|
|
|
$
|
18,846,872
|
|
|
Due After One Year
|
||||||||||
|
Fixed
|
|
Variable
|
|
|
||||||
December 31, 2019
|
Rate
|
|
Rate
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Real estate mortgage
|
$
|
875,856
|
|
|
$
|
6,087,744
|
|
|
$
|
6,963,600
|
|
Real estate construction and land
|
274,608
|
|
|
1,304,027
|
|
|
1,578,635
|
|
|||
Commercial
|
1,574,448
|
|
|
3,481,578
|
|
|
5,056,026
|
|
|||
Consumer
|
382,467
|
|
|
42,016
|
|
|
424,483
|
|
|||
Total loans and leases held for investment, net of deferred fees
|
$
|
3,107,379
|
|
|
$
|
10,915,365
|
|
|
$
|
14,022,744
|
|
|
December 31,
|
||||||||||||||||||
Allowance for Credit Losses Data (1)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Allowance for loan and lease losses
|
$
|
138,785
|
|
|
$
|
132,472
|
|
|
$
|
133,012
|
|
|
$
|
143,755
|
|
|
$
|
105,534
|
|
Reserve for unfunded loan commitments
|
35,861
|
|
|
36,861
|
|
|
28,635
|
|
|
17,523
|
|
|
16,734
|
|
|||||
Total allowance for credit losses
|
$
|
174,646
|
|
|
$
|
169,333
|
|
|
$
|
161,647
|
|
|
$
|
161,278
|
|
|
$
|
122,268
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses to loans and leases
|
|
|
|
|
|
|
|
|
|
||||||||||
held for investment
|
0.93
|
%
|
|
0.94
|
%
|
|
0.96
|
%
|
|
1.05
|
%
|
|
0.86
|
%
|
|||||
Allowance for credit losses to nonaccrual loans and leases
|
|
|
|
|
|
|
|
|
|
||||||||||
held for investment
|
189.1
|
%
|
|
213.5
|
%
|
|
103.8
|
%
|
|
94.5
|
%
|
|
94.8
|
%
|
(1)
|
Amounts and ratios related to 2019 and 2018 are for total loans and leases. Amounts and ratios related to 2017 and prior years are for Non-PCI loans and leases.
|
|
Year Ended December 31,
|
||||||||||||||||||
Allowance for Credit Losses Roll Forward (1)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Balance, beginning of year (2)
|
$
|
169,333
|
|
|
$
|
168,091
|
|
|
$
|
161,278
|
|
|
$
|
122,268
|
|
|
$
|
76,767
|
|
Provision for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Addition to allowance for loan and lease losses
|
23,000
|
|
|
36,774
|
|
|
52,214
|
|
|
60,211
|
|
|
42,604
|
|
|||||
(Reduction in) addition to reserve for unfunded loan
|
|
|
|
|
|
|
|
|
|
||||||||||
commitments
|
(1,000
|
)
|
|
8,226
|
|
|
6,786
|
|
|
789
|
|
|
5,677
|
|
|||||
Total provision for credit losses
|
22,000
|
|
|
45,000
|
|
|
59,000
|
|
|
61,000
|
|
|
48,281
|
|
|||||
Loans and leases charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate mortgage
|
(997
|
)
|
|
(8,190
|
)
|
|
(2,410
|
)
|
|
(2,059
|
)
|
|
(2,489
|
)
|
|||||
Real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
(30,426
|
)
|
|
(50,481
|
)
|
|
(70,709
|
)
|
|
(32,210
|
)
|
|
(13,354
|
)
|
|||||
Consumer
|
(839
|
)
|
|
(371
|
)
|
|
(1,023
|
)
|
|
(823
|
)
|
|
(156
|
)
|
|||||
Total loans and leases charged off
|
(32,262
|
)
|
|
(59,042
|
)
|
|
(74,142
|
)
|
|
(35,092
|
)
|
|
(15,999
|
)
|
|||||
Recoveries on loans charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate mortgage
|
983
|
|
|
2,350
|
|
|
1,209
|
|
|
4,519
|
|
|
3,582
|
|
|||||
Real estate construction and land
|
—
|
|
|
195
|
|
|
429
|
|
|
673
|
|
|
1,082
|
|
|||||
Commercial
|
14,397
|
|
|
12,566
|
|
|
9,415
|
|
|
7,794
|
|
|
3,399
|
|
|||||
Consumer
|
195
|
|
|
173
|
|
|
132
|
|
|
116
|
|
|
410
|
|
|||||
Total recoveries on loans charged off
|
15,575
|
|
|
15,284
|
|
|
11,185
|
|
|
13,102
|
|
|
8,473
|
|
|||||
Net charge-offs
|
(16,687
|
)
|
|
(43,758
|
)
|
|
(62,957
|
)
|
|
(21,990
|
)
|
|
(7,526
|
)
|
|||||
Fair value of acquired reserve for unfunded loan
|
|
|
|
|
|
|
|
|
|
||||||||||
commitments
|
—
|
|
|
—
|
|
|
4,326
|
|
|
—
|
|
|
4,746
|
|
|||||
Balance, end of year
|
$
|
174,646
|
|
|
$
|
169,333
|
|
|
$
|
161,647
|
|
|
$
|
161,278
|
|
|
$
|
122,268
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs to average loans and leases
|
0.09
|
%
|
|
0.26
|
%
|
|
0.40
|
%
|
|
0.15
|
%
|
|
0.06
|
%
|
(1)
|
Amounts and ratios related to 2019 and 2018 are for total loans and leases. Amounts and ratios related to 2017 and prior years are for Non-PCI loans and leases.
|
(2)
|
The allowance for loan losses related to PCI loans of $6.4 million as of December 31, 2017 is reflected in the beginning balance for 2018.
|
|
Year Ended December 31,
|
||||||||||||||||||
Allowance for Credit Losses Charge-offs (1)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Healthcare real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Hospitality
|
—
|
|
|
—
|
|
|
692
|
|
|
163
|
|
|
615
|
|
|||||
SBA program
|
897
|
|
|
2,679
|
|
|
1,237
|
|
|
227
|
|
|
1,436
|
|
|||||
Other commercial real estate
|
9
|
|
|
5,305
|
|
|
65
|
|
|
885
|
|
|
281
|
|
|||||
Total commercial real estate mortgage
|
906
|
|
|
7,984
|
|
|
1,994
|
|
|
1,275
|
|
|
2,332
|
|
|||||
Income producing residential
|
—
|
|
|
145
|
|
|
—
|
|
|
231
|
|
|
30
|
|
|||||
Other residential real estate
|
91
|
|
|
61
|
|
|
416
|
|
|
553
|
|
|
127
|
|
|||||
Total income producing and other residential
|
|
|
|
|
|
|
|
|
|
||||||||||
real estate mortgage
|
91
|
|
|
206
|
|
|
416
|
|
|
784
|
|
|
157
|
|
|||||
Total real estate mortgage
|
997
|
|
|
8,190
|
|
|
2,410
|
|
|
2,059
|
|
|
2,489
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lender finance & timeshare
|
—
|
|
|
8
|
|
|
202
|
|
|
904
|
|
|
—
|
|
|||||
Equipment finance
|
—
|
|
|
2,934
|
|
|
19
|
|
|
24,911
|
|
|
8,088
|
|
|||||
Other asset-based
|
11,950
|
|
|
1,033
|
|
|
400
|
|
|
—
|
|
|
—
|
|
|||||
Premium finance
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total asset-based
|
11,981
|
|
|
3,975
|
|
|
621
|
|
|
25,815
|
|
|
8,088
|
|
|||||
Equity fund loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Early stage
|
2,161
|
|
|
15,070
|
|
|
20,317
|
|
|
927
|
|
|
—
|
|
|||||
Expansion stage
|
7,208
|
|
|
17,907
|
|
|
17,014
|
|
|
2,262
|
|
|
—
|
|
|||||
Late stage
|
—
|
|
|
—
|
|
|
2,970
|
|
|
—
|
|
|
—
|
|
|||||
Total venture capital
|
9,369
|
|
|
32,977
|
|
|
40,301
|
|
|
3,189
|
|
|
—
|
|
|||||
Security monitoring
|
1,707
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Secured business loans
|
1,426
|
|
|
1,984
|
|
|
948
|
|
|
684
|
|
|
2,260
|
|
|||||
Other lending
|
2,784
|
|
|
1,606
|
|
|
1,301
|
|
|
1,674
|
|
|
339
|
|
|||||
Cash flow
|
3,159
|
|
|
9,939
|
|
|
27,538
|
|
|
848
|
|
|
2,667
|
|
|||||
Total other commercial
|
9,076
|
|
|
13,529
|
|
|
29,787
|
|
|
3,206
|
|
|
5,266
|
|
|||||
Total commercial
|
30,426
|
|
|
50,481
|
|
|
70,709
|
|
|
32,210
|
|
|
13,354
|
|
|||||
Consumer
|
839
|
|
|
371
|
|
|
1,023
|
|
|
823
|
|
|
156
|
|
|||||
Total charge-offs
|
$
|
32,262
|
|
|
$
|
59,042
|
|
|
$
|
74,142
|
|
|
$
|
35,092
|
|
|
$
|
15,999
|
|
|
Year Ended December 31,
|
||||||||||||||||||
Allowance for Credit Losses Recoveries (1)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Healthcare real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Hospitality
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
269
|
|
|||||
SBA program
|
382
|
|
|
452
|
|
|
413
|
|
|
181
|
|
|
198
|
|
|||||
Other commercial real estate
|
162
|
|
|
477
|
|
|
567
|
|
|
3,836
|
|
|
2,712
|
|
|||||
Total commercial real estate mortgage
|
544
|
|
|
929
|
|
|
980
|
|
|
4,029
|
|
|
3,179
|
|
|||||
Income producing residential
|
276
|
|
|
1,208
|
|
|
—
|
|
|
115
|
|
|
103
|
|
|||||
Other residential real estate
|
163
|
|
|
213
|
|
|
229
|
|
|
375
|
|
|
300
|
|
|||||
Total income producing and other residential
|
|
|
|
|
|
|
|
|
|
||||||||||
real estate mortgage
|
439
|
|
|
1,421
|
|
|
229
|
|
|
490
|
|
|
403
|
|
|||||
Total real estate mortgage
|
983
|
|
|
2,350
|
|
|
1,209
|
|
|
4,519
|
|
|
3,582
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
61
|
|
|
90
|
|
|
381
|
|
|
29
|
|
|||||
Residential
|
—
|
|
|
134
|
|
|
339
|
|
|
292
|
|
|
1,053
|
|
|||||
Total real estate construction and land
|
—
|
|
|
195
|
|
|
429
|
|
|
673
|
|
|
1,082
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lender finance & timeshare
|
6
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Equipment finance
|
11
|
|
|
90
|
|
|
3,377
|
|
|
1,854
|
|
|
77
|
|
|||||
Other asset-based
|
1,416
|
|
|
255
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Premium finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total asset-based
|
1,433
|
|
|
368
|
|
|
3,377
|
|
|
1,854
|
|
|
78
|
|
|||||
Equity fund loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Early stage
|
5,811
|
|
|
2,664
|
|
|
3,827
|
|
|
—
|
|
|
—
|
|
|||||
Expansion stage
|
2,340
|
|
|
6,131
|
|
|
503
|
|
|
91
|
|
|
—
|
|
|||||
Late stage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total venture capital
|
8,151
|
|
|
8,795
|
|
|
4,330
|
|
|
91
|
|
|
—
|
|
|||||
Security monitoring
|
181
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Secured business loans
|
2,877
|
|
|
895
|
|
|
934
|
|
|
801
|
|
|
2,946
|
|
|||||
Other lending
|
760
|
|
|
1,620
|
|
|
774
|
|
|
2,522
|
|
|
375
|
|
|||||
Cash flow
|
995
|
|
|
888
|
|
|
—
|
|
|
2,526
|
|
|
—
|
|
|||||
Total other commercial
|
4,813
|
|
|
3,403
|
|
|
1,708
|
|
|
5,849
|
|
|
3,321
|
|
|||||
Total commercial
|
14,397
|
|
|
12,566
|
|
|
9,415
|
|
|
7,794
|
|
|
3,399
|
|
|||||
Consumer
|
195
|
|
|
173
|
|
|
132
|
|
|
116
|
|
|
410
|
|
|||||
Total recoveries
|
$
|
15,575
|
|
|
$
|
15,284
|
|
|
$
|
11,185
|
|
|
$
|
13,102
|
|
|
$
|
8,473
|
|
|
Allowance for Loan and Lease Losses by Portfolio Segment (1)
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan and lease losses
|
$
|
44,575
|
|
|
$
|
30,544
|
|
|
$
|
61,528
|
|
|
$
|
2,138
|
|
|
$
|
138,785
|
|
% of loans to total loans
|
42
|
%
|
|
15
|
%
|
|
41
|
%
|
|
2
|
%
|
|
100
|
%
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan and lease losses
|
$
|
46,021
|
|
|
$
|
28,209
|
|
|
$
|
56,360
|
|
|
$
|
1,882
|
|
|
$
|
132,472
|
|
% of loans to total loans
|
44
|
%
|
|
13
|
%
|
|
41
|
%
|
|
2
|
%
|
|
100
|
%
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan and lease losses
|
$
|
34,981
|
|
|
$
|
13,055
|
|
|
$
|
82,726
|
|
|
$
|
2,250
|
|
|
$
|
133,012
|
|
% of loans to total loans
|
46
|
%
|
|
10
|
%
|
|
42
|
%
|
|
2
|
%
|
|
100
|
%
|
|||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan and lease losses
|
$
|
37,765
|
|
|
$
|
10,045
|
|
|
$
|
93,853
|
|
|
$
|
2,092
|
|
|
$
|
143,755
|
|
% of loans to total loans
|
37
|
%
|
|
6
|
%
|
|
55
|
%
|
|
2
|
%
|
|
100
|
%
|
|||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
36,654
|
|
|
$
|
7,137
|
|
|
$
|
61,082
|
|
|
$
|
661
|
|
|
$
|
105,534
|
|
% of loans to total loans
|
40
|
%
|
|
4
|
%
|
|
55
|
%
|
|
1
|
%
|
|
100
|
%
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
|
|
|
Weighted
|
|||||||||
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|||||||||
Deposit Composition
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Interest checking
|
$
|
3,406,218
|
|
|
1.23
|
%
|
|
$
|
2,445,094
|
|
|
0.82
|
%
|
|
$
|
1,928,249
|
|
|
0.45
|
%
|
Money market
|
5,139,623
|
|
|
1.10
|
%
|
|
5,107,888
|
|
|
0.77
|
%
|
|
5,027,453
|
|
|
0.46
|
%
|
|||
Savings
|
525,809
|
|
|
0.17
|
%
|
|
641,720
|
|
|
0.16
|
%
|
|
707,301
|
|
|
0.16
|
%
|
|||
Time
|
2,641,135
|
|
|
1.86
|
%
|
|
1,856,126
|
|
|
1.07
|
%
|
|
2,247,168
|
|
|
0.57
|
%
|
|||
Total interest-bearing deposits
|
11,712,785
|
|
|
1.27
|
%
|
|
10,050,828
|
|
|
0.80
|
%
|
|
9,910,171
|
|
|
0.46
|
%
|
|||
Noninterest-bearing demand
|
7,537,172
|
|
|
—
|
|
|
8,211,475
|
|
|
—
|
|
|
7,076,445
|
|
|
—
|
|
|||
Total deposits
|
$
|
19,249,957
|
|
|
0.77
|
%
|
|
$
|
18,262,303
|
|
|
0.44
|
%
|
|
$
|
16,986,616
|
|
|
0.27
|
%
|
|
December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||
Deposit Composition
|
Balance
|
|
Total
|
|
Balance
|
|
Total
|
|
Balance
|
|
Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Noninterest-bearing demand
|
$
|
7,243,298
|
|
|
38
|
%
|
|
$
|
7,888,915
|
|
|
42
|
%
|
|
$
|
8,508,044
|
|
|
45
|
%
|
Interest checking
|
3,753,978
|
|
|
19
|
%
|
|
2,842,463
|
|
|
15
|
%
|
|
2,226,885
|
|
|
12
|
%
|
|||
Money market
|
4,690,420
|
|
|
24
|
%
|
|
5,043,871
|
|
|
27
|
%
|
|
4,511,730
|
|
|
24
|
%
|
|||
Savings
|
499,591
|
|
|
3
|
%
|
|
571,422
|
|
|
3
|
%
|
|
690,353
|
|
|
4
|
%
|
|||
Total core deposits
|
16,187,287
|
|
|
84
|
%
|
|
16,346,671
|
|
|
87
|
%
|
|
15,937,012
|
|
|
85
|
%
|
|||
Non-core non-maturity deposits
|
496,407
|
|
|
3
|
%
|
|
518,192
|
|
|
3
|
%
|
|
863,202
|
|
|
4
|
%
|
|||
Total non-maturity deposits
|
16,683,694
|
|
|
87
|
%
|
|
16,864,863
|
|
|
90
|
%
|
|
16,800,214
|
|
|
89
|
%
|
|||
Time deposits $250,000 and under
|
2,065,733
|
|
|
11
|
%
|
|
1,593,453
|
|
|
8
|
%
|
|
1,709,980
|
|
|
9
|
%
|
|||
Time deposits over $250,000
|
483,609
|
|
|
2
|
%
|
|
412,185
|
|
|
2
|
%
|
|
355,342
|
|
|
2
|
%
|
|||
Total time deposits
|
2,549,342
|
|
|
13
|
%
|
|
2,005,638
|
|
|
10
|
%
|
|
2,065,322
|
|
|
11
|
%
|
|||
Total deposits
|
$
|
19,233,036
|
|
|
100
|
%
|
|
$
|
18,870,501
|
|
|
100
|
%
|
|
$
|
18,865,536
|
|
|
100
|
%
|
|
Time Deposits
|
||||||||||
|
$250,000
|
|
Over
|
|
|
||||||
December 31, 2019
|
and Under
|
|
$250,000
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Maturities:
|
|
|
|
|
|
||||||
Due in three months or less
|
$
|
991,908
|
|
|
$
|
151,858
|
|
|
$
|
1,143,766
|
|
Due in over three months through six months
|
608,857
|
|
|
150,093
|
|
|
758,950
|
|
|||
Due in over six months through twelve months
|
368,597
|
|
|
159,343
|
|
|
527,940
|
|
|||
Total due within twelve months
|
1,969,362
|
|
|
461,294
|
|
|
2,430,656
|
|
|||
Due in over 12 months through 24 months
|
81,070
|
|
|
20,610
|
|
|
101,680
|
|
|||
Due in over 24 months
|
15,301
|
|
|
1,705
|
|
|
17,006
|
|
|||
Total
|
$
|
2,065,733
|
|
|
$
|
483,609
|
|
|
$
|
2,549,342
|
|
|
December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
|
|
|
Weighted
|
|||||||||
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Average
|
|||||||||
Borrowings
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
FHLB secured short-term advances
|
$
|
1,318,000
|
|
|
1.66
|
%
|
|
$
|
1,040,000
|
|
|
2.56
|
%
|
|
$
|
332,000
|
|
|
1.41
|
%
|
FHLB unsecured overnight advance
|
141,000
|
|
|
1.56
|
%
|
|
141,000
|
|
|
2.53
|
%
|
|
135,000
|
|
|
1.34
|
%
|
|||
AFX short-term borrowings
|
300,000
|
|
|
1.61
|
%
|
|
190,000
|
|
|
2.56
|
%
|
|
—
|
|
|
—
|
%
|
|||
Non‑recourse debt
|
8
|
|
|
7.50
|
%
|
|
114
|
|
|
7.50
|
%
|
|
342
|
|
|
6.87
|
%
|
|||
Total borrowings
|
$
|
1,759,008
|
|
|
1.64
|
%
|
|
$
|
1,371,114
|
|
|
2.56
|
%
|
|
$
|
467,342
|
|
|
1.39
|
%
|
Averages for the year:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total borrowings
|
$
|
1,180,164
|
|
|
2.28
|
%
|
|
$
|
570,216
|
|
|
2.10
|
%
|
|
$
|
388,896
|
|
|
0.94
|
%
|
|
December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
|
|
|
Weighted
|
|||||||||
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Average
|
|||||||||
Subordinated Debentures
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Gross subordinated debentures:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
With no unamortized discount
|
$
|
135,055
|
|
|
4.33
|
%
|
|
$
|
135,055
|
|
|
5.08
|
%
|
|
$
|
120,622
|
|
|
4.03
|
%
|
With unamortized discount
|
405,635
|
|
|
3.72
|
%
|
|
406,289
|
|
|
4.33
|
%
|
|
434,524
|
|
|
3.25
|
%
|
|||
Total gross subordinated debentures
|
540,690
|
|
|
3.87
|
%
|
|
541,344
|
|
|
4.51
|
%
|
|
555,146
|
|
|
3.42
|
%
|
|||
Unamortized discount
|
(82,481
|
)
|
|
|
|
(87,498
|
)
|
|
|
|
(92,709
|
)
|
|
|
||||||
Net subordinated debentures
|
$
|
458,209
|
|
|
|
|
$
|
453,846
|
|
|
|
|
$
|
462,437
|
|
|
|
|||
Averages for the year:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net subordinated debentures
|
$
|
455,537
|
|
|
6.55
|
%
|
|
$
|
454,702
|
|
|
6.30
|
%
|
|
$
|
447,684
|
|
|
5.27
|
%
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Nonaccrual loans and leases held for investment (1)
|
$
|
92,353
|
|
|
$
|
79,333
|
|
|
$
|
157,545
|
|
|
$
|
173,527
|
|
|
$
|
133,615
|
|
Accruing loan contractually past due 90 days or more
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
700
|
|
|||||
Foreclosed assets, net
|
440
|
|
|
5,299
|
|
|
1,329
|
|
|
12,976
|
|
|
22,120
|
|
|||||
Total nonperforming assets
|
$
|
92,793
|
|
|
$
|
84,632
|
|
|
$
|
158,874
|
|
|
$
|
186,503
|
|
|
$
|
156,435
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing TDRs held for investment (2)
|
$
|
12,257
|
|
|
$
|
17,701
|
|
|
$
|
56,838
|
|
|
$
|
64,952
|
|
|
$
|
40,182
|
|
Classified loans and leases held for investment (2)
|
$
|
175,912
|
|
|
$
|
237,110
|
|
|
$
|
278,405
|
|
|
$
|
409,645
|
|
|
$
|
391,754
|
|
Nonaccrual loans and leases held for investment to
|
|
|
|
|
|
|
|
|
|
||||||||||
loans and leases held for investment (1)
|
0.49
|
%
|
|
0.44
|
%
|
|
0.93
|
%
|
|
1.12
|
%
|
|
0.92
|
%
|
|||||
Nonperforming assets to loans and leases
|
|
|
|
|
|
|
|
|
|
||||||||||
held for investment and foreclosed assets, net (1)
|
0.49
|
%
|
|
0.47
|
%
|
|
0.94
|
%
|
|
1.21
|
%
|
|
1.08
|
%
|
|||||
Classified loans and leases held for investment to
|
|
|
|
|
|
|
|
|
|
||||||||||
loans and leases held for investment (2)
|
0.93
|
%
|
|
1.32
|
%
|
|
1.65
|
%
|
|
2.67
|
%
|
|
2.74
|
%
|
(1)
|
Amounts and ratios are for total loans and leases held for investment, net of deferred fees.
|
(2)
|
Amounts and ratio related to 2019 and 2018 are for total loans and leases held for investment, net of deferred fees. Amounts related to 2017 and prior years are for Non-PCI loans and leases held for investment, net of deferred fees.
|
|
Nonaccrual Loans and Leases
|
|
Accruing and
|
||||||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
|
30 - 89 Days Past Due
|
||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
December 31,
|
|
December 31,
|
||||||||
|
|
|
Loan
|
|
|
|
Loan
|
|
2019
|
|
2018
|
||||||||
|
Balance
|
|
Category
|
|
Balance
|
|
Category
|
|
Balance
|
|
Balance
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
18,346
|
|
|
0.4%
|
|
$
|
15,321
|
|
|
0.3%
|
|
$
|
1,735
|
|
|
$
|
3,276
|
|
Income producing and other residential
|
2,478
|
|
|
0.1%
|
|
2,524
|
|
|
0.1%
|
|
2,094
|
|
|
1,557
|
|
||||
Total real estate mortgage
|
20,824
|
|
|
0.3%
|
|
17,845
|
|
|
0.2%
|
|
3,829
|
|
|
4,833
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
364
|
|
|
—%
|
|
442
|
|
|
—%
|
|
—
|
|
|
—
|
|
||||
Residential
|
—
|
|
|
—%
|
|
—
|
|
|
—%
|
|
1,429
|
|
|
1,527
|
|
||||
Total real estate construction and land
|
364
|
|
|
—%
|
|
442
|
|
|
—%
|
|
1,429
|
|
|
1,527
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
30,162
|
|
|
0.8%
|
|
32,324
|
|
|
1.0%
|
|
19
|
|
|
47
|
|
||||
Venture capital
|
12,916
|
|
|
0.6%
|
|
20,299
|
|
|
1.0%
|
|
—
|
|
|
1,028
|
|
||||
Other commercial
|
27,594
|
|
|
1.6%
|
|
7,380
|
|
|
0.4%
|
|
2,258
|
|
|
2,467
|
|
||||
Total commercial
|
70,672
|
|
|
0.9%
|
|
60,003
|
|
|
0.8%
|
|
2,277
|
|
|
3,542
|
|
||||
Consumer
|
493
|
|
|
0.1%
|
|
1,043
|
|
|
0.3%
|
|
1,006
|
|
|
581
|
|
||||
Total held for investment
|
$
|
92,353
|
|
|
0.5%
|
|
$
|
79,333
|
|
|
0.4%
|
|
$
|
8,541
|
|
|
$
|
10,483
|
|
|
December 31,
|
||||||||||
Property Type
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Commercial real estate
|
$
|
221
|
|
|
$
|
2,004
|
|
|
$
|
64
|
|
Construction and land development
|
219
|
|
|
219
|
|
|
219
|
|
|||
Multi-family
|
—
|
|
|
1,059
|
|
|
—
|
|
|||
Single-family residence
|
—
|
|
|
953
|
|
|
1,019
|
|
|||
Total OREO, net
|
440
|
|
|
4,235
|
|
|
1,302
|
|
|||
Other foreclosed assets
|
—
|
|
|
1,064
|
|
|
27
|
|
|||
Total foreclosed assets
|
$
|
440
|
|
|
$
|
5,299
|
|
|
$
|
1,329
|
|
|
December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
|
Number
|
|
|
|
Number
|
|
|
|
Number
|
|||||||||
|
|
|
of
|
|
|
|
of
|
|
|
|
of
|
|||||||||
Performing TDRs (1)
|
Balance
|
|
Loans
|
|
Balance
|
|
Loans
|
|
Balance
|
|
Loans
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Real estate mortgage
|
$
|
10,165
|
|
|
22
|
|
|
$
|
11,484
|
|
|
27
|
|
|
$
|
47,560
|
|
|
23
|
|
Real estate construction and land
|
1,470
|
|
|
1
|
|
|
5,420
|
|
|
2
|
|
|
5,690
|
|
|
2
|
|
|||
Commercial
|
550
|
|
|
12
|
|
|
692
|
|
|
6
|
|
|
3,488
|
|
|
11
|
|
|||
Consumer
|
72
|
|
|
2
|
|
|
105
|
|
|
3
|
|
|
100
|
|
|
2
|
|
|||
Total performing TDRs held for investment
|
$
|
12,257
|
|
|
37
|
|
|
$
|
17,701
|
|
|
38
|
|
|
$
|
56,838
|
|
|
38
|
|
(1)
|
Amounts related to 2019 and 2018 are for total loans and leases held for investment, net of deferred fees. Amounts related to 2017 are for Non-PCI loans and leases held for investment, net of deferred fees.
|
|
December 31,
|
||||||||||
Loan and Lease Credit Risk Ratings (1)
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Pass
|
$
|
18,348,004
|
|
|
$
|
17,459,205
|
|
|
$
|
16,334,134
|
|
Special mention
|
322,956
|
|
|
261,398
|
|
|
302,168
|
|
|||
Classified
|
175,912
|
|
|
237,110
|
|
|
278,405
|
|
|||
Total loans and leases held for investment, net of deferred fees
|
$
|
18,846,872
|
|
|
$
|
17,957,713
|
|
|
$
|
16,914,707
|
|
(1)
|
Amounts related to 2019 and 2018 are for total loans and leases held for investment, net of deferred fees. Amounts related to 2017 are for Non-PCI loans and leases held for investment, net of deferred fees.
|
|
|
|
Minimum Required
|
||||
|
|
|
|
|
Plus Capital
|
|
|
|
|
|
For Capital
|
|
Conservation
|
|
For Well
|
|
|
|
Adequacy
|
|
Buffer
|
|
Capitalized
|
|
Actual
|
|
Purposes
|
|
Phase-In (1)
|
|
Requirement
|
December 31, 2019
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
9.74%
|
|
4.00%
|
|
4.00%
|
|
N/A
|
CET1 capital (to risk weighted assets)
|
9.78%
|
|
4.50%
|
|
7.00%
|
|
N/A
|
Tier 1 capital (to risk weighted assets)
|
9.78%
|
|
6.00%
|
|
8.50%
|
|
N/A
|
Total capital (to risk weighted assets)
|
12.41%
|
|
8.00%
|
|
10.50%
|
|
N/A
|
|
|
|
|
|
|
|
|
Pacific Western Bank
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
10.95%
|
|
4.00%
|
|
4.00%
|
|
5.00%
|
CET1 capital (to risk weighted assets)
|
11.00%
|
|
4.50%
|
|
7.00%
|
|
6.50%
|
Tier 1 capital (to risk weighted assets)
|
11.00%
|
|
6.00%
|
|
8.50%
|
|
8.00%
|
Total capital (to risk weighted assets)
|
11.74%
|
|
8.00%
|
|
10.50%
|
|
10.00%
|
|
|
|
Minimum Required
|
||||||
|
|
|
|
|
Plus Capital
|
|
|
|
Plus Capital
|
|
|
|
For Capital
|
|
Conservation
|
|
For Well
|
|
Conservation
|
|
|
|
Adequacy
|
|
Buffer
|
|
Capitalized
|
|
Buffer Fully
|
|
Actual
|
|
Purposes
|
|
Phase-In (1)
|
|
Requirement
|
|
Phased-In
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
10.13%
|
|
4.00%
|
|
4.000%
|
|
N/A
|
|
4.00%
|
CET1 capital (to risk weighted assets)
|
10.01%
|
|
4.50%
|
|
6.375%
|
|
N/A
|
|
7.00%
|
Tier 1 capital (to risk weighted assets)
|
10.01%
|
|
6.00%
|
|
7.875%
|
|
N/A
|
|
8.50%
|
Total capital (to risk weighted assets)
|
12.72%
|
|
8.00%
|
|
9.875%
|
|
N/A
|
|
10.50%
|
|
|
|
|
|
|
|
|
|
|
Pacific Western Bank
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
10.80%
|
|
4.00%
|
|
4.000%
|
|
5.00%
|
|
4.00%
|
CET1 capital (to risk weighted assets)
|
10.68%
|
|
4.50%
|
|
6.375%
|
|
6.50%
|
|
7.00%
|
Tier 1 capital (to risk weighted assets)
|
10.68%
|
|
6.00%
|
|
7.875%
|
|
8.00%
|
|
8.50%
|
Total capital (to risk weighted assets)
|
11.44%
|
|
8.00%
|
|
9.875%
|
|
10.00%
|
|
10.50%
|
(1)
|
Ratios for December 31, 2019 reflect the minimum required plus the fully phased-in capital conservation buffer of 2.50%; ratios for December 31, 2018 reflect the minimum required plus capital conservation buffer phase-in for 2018 of 1.875%.
|
|
December 31,
|
||||||||||
Primary Liquidity - On-Balance Sheet
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Cash and due from banks
|
$
|
172,585
|
|
|
$
|
175,830
|
|
|
$
|
233,215
|
|
Interest-earning deposits in financial institutions
|
465,039
|
|
|
209,937
|
|
|
165,222
|
|
|||
Securities available-for-sale
|
3,797,187
|
|
|
4,009,431
|
|
|
3,774,431
|
|
|||
Less: pledged securities
|
(486,200
|
)
|
|
(458,143
|
)
|
|
(449,187
|
)
|
|||
Total primary liquidity
|
$
|
3,948,611
|
|
|
$
|
3,937,055
|
|
|
$
|
3,723,681
|
|
|
|
|
|
|
|
||||||
Ratio of primary liquidity to total deposits
|
20.5
|
%
|
|
20.9
|
%
|
|
19.7
|
%
|
Secondary Liquidity - Off-Balance Sheet
|
December 31,
|
||||||||||
Available Secured Borrowing Capacity
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Total secured borrowing capacity with the FHLB
|
$
|
4,229,788
|
|
|
$
|
3,746,970
|
|
|
$
|
3,789,949
|
|
Less: secured advances outstanding
|
(1,318,000
|
)
|
|
(1,040,000
|
)
|
|
(332,000
|
)
|
|||
Available secured borrowing capacity with the FHLB
|
2,911,788
|
|
|
2,706,970
|
|
|
3,457,949
|
|
|||
Available secured borrowing capacity with the FRBSF
|
1,988,028
|
|
|
2,003,269
|
|
|
1,766,188
|
|
|||
Total secondary liquidity
|
$
|
4,899,816
|
|
|
$
|
4,710,239
|
|
|
$
|
5,224,137
|
|
|
|
|
Due After
|
|
Due After
|
|
|
|
|
||||||||||
|
Due
|
|
One Year
|
|
Three Years
|
|
Due
|
|
|
||||||||||
|
Within
|
|
Through
|
|
Through
|
|
After
|
|
|
||||||||||
December 31, 2019
|
One Year
|
|
Three Years
|
|
Five Years
|
|
Five Years
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Time deposits (1)
|
$
|
2,430,656
|
|
|
$
|
114,947
|
|
|
$
|
3,341
|
|
|
$
|
398
|
|
|
$
|
2,549,342
|
|
Short-term borrowings
|
1,759,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,759,000
|
|
|||||
Long-term debt obligations (1)
|
8
|
|
|
—
|
|
|
—
|
|
|
540,690
|
|
|
540,698
|
|
|||||
Contractual interest (2)
|
14,530
|
|
|
2,070
|
|
|
117
|
|
|
17
|
|
|
16,734
|
|
|||||
Operating lease obligations
|
33,221
|
|
|
56,123
|
|
|
37,278
|
|
|
33,575
|
|
|
160,197
|
|
|||||
Other contractual obligations
|
83,320
|
|
|
55,586
|
|
|
9,937
|
|
|
24,020
|
|
|
172,863
|
|
|||||
Total
|
$
|
4,320,735
|
|
|
$
|
228,726
|
|
|
$
|
50,673
|
|
|
$
|
598,700
|
|
|
$
|
5,198,834
|
|
(1)
|
Excludes purchase accounting fair value adjustments.
|
(2)
|
Excludes interest on subordinated debentures as these instruments are floating rate.
|
|
Forecasted
|
|
|
|
Forecasted
|
|
Forecasted
|
||
|
Net Interest
|
|
Percentage
|
|
Net Interest
|
|
Net Interest
|
||
|
Income
|
|
Change
|
|
Margin
|
|
Margin Change
|
||
December 31, 2019
|
(Tax Equivalent)
|
|
From Base
|
|
(Tax Equivalent)
|
|
From Base
|
||
|
(Dollars in millions)
|
||||||||
Interest Rate Scenario:
|
|
|
|
|
|
|
|
||
Up 300 basis points
|
$
|
1,119.6
|
|
|
16.4%
|
|
4.83%
|
|
0.68%
|
Up 200 basis points
|
$
|
1,063.6
|
|
|
10.6%
|
|
4.58%
|
|
0.43%
|
Up 100 basis points
|
$
|
1,007.3
|
|
|
4.7%
|
|
4.34%
|
|
0.19%
|
BASE CASE
|
$
|
961.8
|
|
|
—
|
|
4.15%
|
|
—
|
Down 25 basis points
|
$
|
955.1
|
|
|
(0.7)%
|
|
4.12%
|
|
(0.03)%
|
Down 50 basis points
|
$
|
948.5
|
|
|
(1.4)%
|
|
4.09%
|
|
(0.06)%
|
Down 100 basis points
|
$
|
931.3
|
|
|
(3.2)%
|
|
4.01%
|
|
(0.14)%
|
|
|
|
|
|
|
|
|
|
Ratio of
|
||||
|
Projected
|
|
Dollar
|
|
Percentage
|
|
Percentage
|
|
Projected
|
||||
|
Market Value
|
|
Change
|
|
Change
|
|
of Total
|
|
Market Value
|
||||
December 31, 2019
|
of Equity
|
|
From Base
|
|
From Base
|
|
Assets
|
|
to Book Value
|
||||
|
(Dollars in millions)
|
||||||||||||
Interest Rate Scenario:
|
|
|
|
|
|
|
|
|
|
||||
Up 300 basis points
|
$
|
7,964.5
|
|
|
$
|
600.6
|
|
|
8.2%
|
|
29.8%
|
|
160.7%
|
Up 200 basis points
|
$
|
7,799.0
|
|
|
$
|
435.0
|
|
|
5.9%
|
|
29.1%
|
|
157.4%
|
Up 100 basis points
|
$
|
7,615.3
|
|
|
$
|
251.4
|
|
|
3.4%
|
|
28.4%
|
|
153.7%
|
BASE CASE
|
$
|
7,363.9
|
|
|
$
|
—
|
|
|
—
|
|
27.5%
|
|
148.6%
|
Down 100 basis points
|
$
|
7,063.6
|
|
|
$
|
(300.4
|
)
|
|
(4.1)%
|
|
26.4%
|
|
142.6%
|
Down 200 basis points
|
$
|
6,590.1
|
|
|
$
|
(773.9
|
)
|
|
(10.5)%
|
|
24.6%
|
|
133.0%
|
Down 300 basis points
|
$
|
6,120.8
|
|
|
$
|
(1,243.2
|
)
|
|
(16.9)%
|
|
22.9%
|
|
123.5%
|
Management’s Report on Internal Control Over Financial Reporting
|
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Balance Sheets as of December 31, 2019 and 2018
|
|
Consolidated Statements of Earnings for the Years Ended December 31, 2019, 2018, and 2017
|
|
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2019, 2018, and 2017
|
|
Consolidated Statements of Changes in Stockholders’ Equity for the Years Ended December 31, 2019, 2018, and 2017
|
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019, 2018, and 2017
|
|
Notes to Consolidated Financial Statements
|
–
|
the general reserve methodology’s ability to produce an estimate in compliance with U.S. generally accepted accounting principles,
|
–
|
the determination of the loan segmentation, look-back period, and loss emergence period, by comparing these inputs and assumptions to the Company’s historical loss information, internal policies and procedures, external metrics, and portfolio risk characteristics,
|
–
|
the credit risk ratings across the non-consumer loan portfolio segments for a selection of loans based on knowledge of the Company’s credit policies and industry expertise, and
|
–
|
the evaluation of the methodology used to develop the resulting qualitative loss factors and the effect of those factors on the ALLL compared with both internal and external credit factors and consistency with credit trends.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands, except par value amounts)
|
||||||
ASSETS:
|
|
|
|
||||
Cash and due from banks
|
$
|
172,585
|
|
|
$
|
175,830
|
|
Interest-earning deposits in financial institutions
|
465,039
|
|
|
209,937
|
|
||
Total cash and cash equivalents
|
637,624
|
|
|
385,767
|
|
||
Securities available-for-sale, at fair value
|
3,797,187
|
|
|
4,009,431
|
|
||
Federal Home Loan Bank stock, at cost
|
40,924
|
|
|
32,103
|
|
||
Total investment securities
|
3,838,111
|
|
|
4,041,534
|
|
||
Gross loans and leases held for investment
|
18,910,740
|
|
|
18,026,365
|
|
||
Deferred fees, net
|
(63,868
|
)
|
|
(68,652
|
)
|
||
Allowance for loan and lease losses
|
(138,785
|
)
|
|
(132,472
|
)
|
||
Total loans and leases held for investment, net
|
18,708,087
|
|
|
17,825,241
|
|
||
Equipment leased to others under operating leases
|
324,084
|
|
|
292,677
|
|
||
Premises and equipment, net
|
38,585
|
|
|
34,661
|
|
||
Foreclosed assets, net
|
440
|
|
|
5,299
|
|
||
Goodwill
|
2,548,670
|
|
|
2,548,670
|
|
||
Core deposit and customer relationship intangibles, net
|
38,394
|
|
|
57,120
|
|
||
Other assets
|
636,811
|
|
|
540,385
|
|
||
Total assets
|
$
|
26,770,806
|
|
|
$
|
25,731,354
|
|
|
|
|
|
||||
LIABILITIES:
|
|
|
|
||||
Noninterest-bearing deposits
|
$
|
7,243,298
|
|
|
$
|
7,888,915
|
|
Interest-bearing deposits
|
11,989,738
|
|
|
10,981,586
|
|
||
Total deposits
|
19,233,036
|
|
|
18,870,501
|
|
||
Borrowings
|
1,759,008
|
|
|
1,371,114
|
|
||
Subordinated debentures
|
458,209
|
|
|
453,846
|
|
||
Accrued interest payable and other liabilities
|
365,856
|
|
|
210,305
|
|
||
Total liabilities
|
21,816,109
|
|
|
20,905,766
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
||
|
|
|
|
||||
STOCKHOLDERS' EQUITY:
|
|
|
|
||||
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued and outstanding)
|
—
|
|
|
—
|
|
||
Common stock ($0.01 par value, 200,000,000 shares authorized at December 31, 2019 and 2018;
|
|
|
|
||||
121,890,008 and 125,079,705 shares issued, respectively, includes 1,513,197 and 1,344,656
|
|
|
|
||||
shares of unvested restricted stock, respectively)
|
1,219
|
|
|
1,251
|
|
||
Additional paid-in capital
|
3,306,006
|
|
|
3,722,723
|
|
||
Retained earnings
|
1,652,248
|
|
|
1,182,674
|
|
||
Treasury stock, at cost (2,108,403 and 1,889,872 shares at December 31, 2019 and 2018)
|
(83,434
|
)
|
|
(74,985
|
)
|
||
Accumulated other comprehensive income (loss), net
|
78,658
|
|
|
(6,075
|
)
|
||
Total stockholders' equity
|
4,954,697
|
|
|
4,825,588
|
|
||
Total liabilities and stockholders' equity
|
$
|
26,770,806
|
|
|
$
|
25,731,354
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands, except per share amounts)
|
||||||||||
Interest income:
|
|
|
|
|
|
||||||
Loans and leases
|
$
|
1,097,845
|
|
|
$
|
1,047,969
|
|
|
$
|
952,771
|
|
Investment securities
|
115,569
|
|
|
111,619
|
|
|
98,202
|
|
|||
Deposits in financial institutions
|
6,479
|
|
|
2,082
|
|
|
1,543
|
|
|||
Total interest income
|
1,219,893
|
|
|
1,161,670
|
|
|
1,052,516
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Deposits
|
148,460
|
|
|
80,140
|
|
|
45,694
|
|
|||
Borrowings
|
26,961
|
|
|
11,985
|
|
|
3,638
|
|
|||
Subordinated debentures
|
29,843
|
|
|
28,631
|
|
|
23,613
|
|
|||
Total interest expense
|
205,264
|
|
|
120,756
|
|
|
72,945
|
|
|||
Net interest income
|
1,014,629
|
|
|
1,040,914
|
|
|
979,571
|
|
|||
Provision for credit losses
|
22,000
|
|
|
45,000
|
|
|
57,752
|
|
|||
Net interest income after provision for credit losses
|
992,629
|
|
|
995,914
|
|
|
921,819
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Other commissions and fees
|
43,623
|
|
|
45,543
|
|
|
41,422
|
|
|||
Leased equipment income
|
38,727
|
|
|
37,881
|
|
|
37,700
|
|
|||
Service charges on deposit accounts
|
14,637
|
|
|
16,509
|
|
|
15,307
|
|
|||
Gain on sale of loans and leases
|
1,114
|
|
|
4,675
|
|
|
6,197
|
|
|||
Gain (loss) on sale of securities
|
25,445
|
|
|
8,176
|
|
|
(541
|
)
|
|||
Other income
|
19,016
|
|
|
35,851
|
|
|
28,488
|
|
|||
Total noninterest income
|
142,562
|
|
|
148,635
|
|
|
128,573
|
|
|||
Noninterest expense:
|
|
|
|
|
|
||||||
Compensation
|
285,862
|
|
|
282,568
|
|
|
266,567
|
|
|||
Occupancy
|
57,407
|
|
|
53,223
|
|
|
48,863
|
|
|||
Data processing
|
27,556
|
|
|
27,225
|
|
|
26,575
|
|
|||
Leased equipment depreciation
|
24,016
|
|
|
21,371
|
|
|
20,767
|
|
|||
Intangible asset amortization
|
18,726
|
|
|
22,506
|
|
|
14,240
|
|
|||
Other professional services
|
17,803
|
|
|
21,952
|
|
|
17,353
|
|
|||
Insurance and assessments
|
16,404
|
|
|
20,705
|
|
|
19,733
|
|
|||
Customer related expense
|
13,839
|
|
|
10,353
|
|
|
8,297
|
|
|||
Loan expense
|
12,931
|
|
|
10,569
|
|
|
13,832
|
|
|||
Acquisition, integration and reorganization costs
|
349
|
|
|
1,770
|
|
|
19,735
|
|
|||
Foreclosed assets (income) expense, net
|
(3,555
|
)
|
|
(751
|
)
|
|
1,702
|
|
|||
Other expense
|
30,913
|
|
|
39,741
|
|
|
37,997
|
|
|||
Total noninterest expense
|
502,251
|
|
|
511,232
|
|
|
495,661
|
|
|||
Earnings before income taxes
|
632,940
|
|
|
633,317
|
|
|
554,731
|
|
|||
Income tax expense
|
164,304
|
|
|
167,978
|
|
|
196,913
|
|
|||
Net earnings
|
$
|
468,636
|
|
|
$
|
465,339
|
|
|
$
|
357,818
|
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
3.90
|
|
|
$
|
3.72
|
|
|
$
|
2.91
|
|
Diluted
|
$
|
3.90
|
|
|
$
|
3.72
|
|
|
$
|
2.91
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Net earnings
|
$
|
468,636
|
|
|
$
|
465,339
|
|
|
$
|
357,818
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized net holding gains (losses) on securities available-for-sale
|
|
|
|
|
|
||||||
arising during the year
|
143,019
|
|
|
(52,559
|
)
|
|
42,190
|
|
|||
Income tax (expense) benefit related to net unrealized holding gains
|
|
|
|
|
|
||||||
(losses) arising during the year
|
(40,058
|
)
|
|
15,015
|
|
|
(17,481
|
)
|
|||
Unrealized net holding gains (losses) on securities available-for-sale,
|
|
|
|
|
|
||||||
net of tax
|
102,961
|
|
|
(37,544
|
)
|
|
24,709
|
|
|||
Reclassification adjustment for net (gains) losses included in net earnings (1)
|
(25,445
|
)
|
|
(8,176
|
)
|
|
541
|
|
|||
Income tax expense (benefit) related to reclassification adjustment
|
7,217
|
|
|
2,338
|
|
|
(61
|
)
|
|||
Reclassification adjustment for net (gains) losses included in
|
|
|
|
|
|
||||||
net earnings, net of tax
|
(18,228
|
)
|
|
(5,838
|
)
|
|
480
|
|
|||
Other comprehensive income (loss), net of tax
|
84,733
|
|
|
(43,382
|
)
|
|
25,189
|
|
|||
Comprehensive income
|
$
|
553,369
|
|
|
$
|
421,957
|
|
|
$
|
383,007
|
|
(1)
|
Entire amount recognized in "Gain (loss) on sale of securities" on the Consolidated Statements of Earnings.
|
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||||||||
|
|
|
|
|
Additional
|
|
|
|
|
|
Other
|
|
|
|||||||||||||
|
|
|
Par
|
|
Paid-in
|
|
Retained
|
|
Treasury
|
|
Comprehensive
|
|
|
|||||||||||||
|
Shares
|
|
Value
|
|
Capital
|
|
Earnings
|
|
Stock
|
|
Income (Loss)
|
|
Total
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||
Balance, December 31, 2016
|
121,283,669
|
|
|
$
|
1,228
|
|
|
$
|
4,162,132
|
|
|
$
|
366,073
|
|
|
$
|
(56,360
|
)
|
|
$
|
5,982
|
|
|
$
|
4,479,055
|
|
Cumulative effect of change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
accounting principle (1)
|
—
|
|
|
—
|
|
|
711
|
|
|
(420
|
)
|
|
—
|
|
|
—
|
|
|
291
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
357,818
|
|
|
—
|
|
|
—
|
|
|
357,818
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,189
|
|
|
25,189
|
|
||||||
Issuance of common stock for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
acquisition of CU Bancorp
|
9,298,451
|
|
|
93
|
|
|
446,140
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
446,233
|
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
470,855
|
|
|
5
|
|
|
25,563
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,568
|
|
||||||
Restricted stock surrendered
|
(188,870
|
)
|
|
|
|
|
|
|
|
(9,476
|
)
|
|
|
|
(9,476
|
)
|
||||||||||
Common stock repurchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock Repurchase Program
|
(2,081,227
|
)
|
|
(21
|
)
|
|
(99,656
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99,677
|
)
|
||||||
Cash dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock, $2.00/share
|
—
|
|
|
—
|
|
|
(247,403
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(247,403
|
)
|
||||||
Balance, December 31, 2017
|
128,782,878
|
|
|
1,305
|
|
|
4,287,487
|
|
|
723,471
|
|
|
(65,836
|
)
|
|
31,171
|
|
|
4,977,598
|
|
||||||
Cumulative effect of changes in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
accounting principles (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,136
|
)
|
|
—
|
|
|
6,136
|
|
|
—
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
465,339
|
|
|
—
|
|
|
—
|
|
|
465,339
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,382
|
)
|
|
(43,382
|
)
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
437,831
|
|
|
4
|
|
|
29,764
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,768
|
|
||||||
Restricted stock surrendered
|
(181,642
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,149
|
)
|
|
—
|
|
|
(9,149
|
)
|
||||||
Common stock repurchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock Repurchase Program
|
(5,849,234
|
)
|
|
(58
|
)
|
|
(306,335
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(306,393
|
)
|
||||||
Cash dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock, $2.30/share
|
—
|
|
|
—
|
|
|
(288,193
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(288,193
|
)
|
||||||
Balance, December 31, 2018
|
123,189,833
|
|
|
1,251
|
|
|
3,722,723
|
|
|
1,182,674
|
|
|
(74,985
|
)
|
|
(6,075
|
)
|
|
4,825,588
|
|
||||||
Cumulative effect of change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
accounting principle (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
938
|
|
|
—
|
|
|
—
|
|
|
938
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
468,636
|
|
|
—
|
|
|
—
|
|
|
468,636
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,733
|
|
|
84,733
|
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
798,248
|
|
|
8
|
|
|
26,807
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,815
|
|
||||||
Restricted stock surrendered
|
(218,531
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,449
|
)
|
|
—
|
|
|
(8,449
|
)
|
||||||
Common stock repurchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock Repurchase Program
|
(3,987,945
|
)
|
|
(40
|
)
|
|
(154,476
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154,516
|
)
|
||||||
Cash dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock, $2.40/share
|
—
|
|
|
—
|
|
|
(289,048
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(289,048
|
)
|
||||||
Balance, December 31, 2019
|
119,781,605
|
|
|
$
|
1,219
|
|
|
$
|
3,306,006
|
|
|
$
|
1,652,248
|
|
|
$
|
(83,434
|
)
|
|
$
|
78,658
|
|
|
$
|
4,954,697
|
|
(1)
|
Impact due to adoption on January 1, 2017 of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting."
|
(2)
|
Impact due to adoption on January 1, 2018 of ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" and ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income."
|
(3)
|
Impact due to adoption on January 1, 2019 of ASU 2016-02, "Leases (Topic 842)," and the related amendments.
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net earnings
|
$
|
468,636
|
|
|
$
|
465,339
|
|
|
$
|
357,818
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
39,115
|
|
|
35,168
|
|
|
32,029
|
|
|||
Amortization of net premiums on securities available-for-sale
|
13,962
|
|
|
23,938
|
|
|
41,450
|
|
|||
Amortization of intangible assets
|
18,726
|
|
|
22,506
|
|
|
14,240
|
|
|||
Amortization of operating lease ROU assets
|
29,393
|
|
|
—
|
|
|
—
|
|
|||
Provision for credit losses
|
22,000
|
|
|
45,000
|
|
|
57,752
|
|
|||
Gain on sale of foreclosed assets, net
|
(3,689
|
)
|
|
(609
|
)
|
|
(871
|
)
|
|||
Provision for losses on foreclosed assets
|
78
|
|
|
74
|
|
|
2,138
|
|
|||
Gain on sale of loans and leases, net
|
(1,114
|
)
|
|
(4,675
|
)
|
|
(6,197
|
)
|
|||
Loss (gain) on sale of premises and equipment
|
599
|
|
|
(20
|
)
|
|
(386
|
)
|
|||
(Gain) loss on sale of securities, net
|
(25,445
|
)
|
|
(8,176
|
)
|
|
541
|
|
|||
Gain on BOLI death benefits
|
—
|
|
|
(1,338
|
)
|
|
(1,050
|
)
|
|||
Unrealized gain on derivatives and foreign currencies, net
|
(228
|
)
|
|
(325
|
)
|
|
(429
|
)
|
|||
Earned stock compensation
|
26,815
|
|
|
29,768
|
|
|
25,568
|
|
|||
Decrease (increase) in deferred income taxes, net
|
14,714
|
|
|
(136
|
)
|
|
76,860
|
|
|||
Decrease (increase) in other assets
|
15,547
|
|
|
25,117
|
|
|
(118,477
|
)
|
|||
(Decrease) increase in accrued interest payable and other liabilities
|
(36,449
|
)
|
|
(23,604
|
)
|
|
2,982
|
|
|||
Net cash provided by operating activities
|
582,660
|
|
|
608,027
|
|
|
483,968
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Cash acquired in acquisitions, net of cash consideration paid
|
—
|
|
|
—
|
|
|
160,318
|
|
|||
Net increase in loans and leases
|
(1,005,478
|
)
|
|
(1,209,986
|
)
|
|
(1,303,752
|
)
|
|||
Proceeds from sales of loans and leases
|
102,573
|
|
|
646,587
|
|
|
1,322,456
|
|
|||
Proceeds from maturities and paydowns of securities available-for-sale
|
325,863
|
|
|
290,177
|
|
|
435,925
|
|
|||
Proceeds from sales of securities available-for-sale
|
1,584,860
|
|
|
571,800
|
|
|
759,300
|
|
|||
Purchases of securities available-for-sale
|
(1,569,421
|
)
|
|
(1,180,545
|
)
|
|
(1,298,105
|
)
|
|||
Net (purchases) redemptions of Federal Home Loan Bank stock
|
(8,821
|
)
|
|
(11,313
|
)
|
|
12,982
|
|
|||
Proceeds from sales of foreclosed assets
|
8,590
|
|
|
13,479
|
|
|
12,345
|
|
|||
Purchases of premises and equipment, net
|
(15,104
|
)
|
|
(12,385
|
)
|
|
(7,919
|
)
|
|||
Proceeds from sales of premises and equipment
|
73
|
|
|
57
|
|
|
10,309
|
|
|||
Proceeds from BOLI death benefits
|
555
|
|
|
3,546
|
|
|
2,478
|
|
|||
Net increase in equipment leased to others under operating leases
|
(54,996
|
)
|
|
(28,610
|
)
|
|
(73,596
|
)
|
|||
Net cash (used in) provided by investing activities
|
(631,306
|
)
|
|
(917,193
|
)
|
|
32,741
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net (decrease) increase in noninterest-bearing deposits
|
(643,530
|
)
|
|
(615,263
|
)
|
|
343,663
|
|
|||
Net increase (decrease) in interest-bearing deposits
|
1,008,152
|
|
|
624,094
|
|
|
(63,700
|
)
|
|||
Net increase (decrease) in borrowings
|
387,894
|
|
|
903,772
|
|
|
(461,349
|
)
|
|||
Net decrease in subordinated debentures
|
—
|
|
|
(12,372
|
)
|
|
—
|
|
|||
Common stock repurchased and restricted stock surrendered
|
(162,965
|
)
|
|
(315,542
|
)
|
|
(109,153
|
)
|
|||
Cash dividends paid, net
|
(289,048
|
)
|
|
(288,193
|
)
|
|
(247,403
|
)
|
|||
Net cash provided by (used in) financing activities
|
300,503
|
|
|
296,496
|
|
|
(537,942
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
251,857
|
|
|
(12,670
|
)
|
|
(21,233
|
)
|
|||
Cash and cash equivalents, beginning of year
|
385,767
|
|
|
398,437
|
|
|
419,670
|
|
|||
Cash and cash equivalents, end of year
|
$
|
637,624
|
|
|
$
|
385,767
|
|
|
$
|
398,437
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
200,463
|
|
|
$
|
119,042
|
|
|
$
|
69,477
|
|
Cash paid for income taxes
|
123,533
|
|
|
98,575
|
|
|
208,066
|
|
|||
Loans transferred to foreclosed assets
|
120
|
|
|
16,914
|
|
|
580
|
|
|||
Transfers from loans held for investment to loans held for sale
|
25,124
|
|
|
—
|
|
|
481,100
|
|
|||
Common stock issued in acquisitions
|
—
|
|
|
—
|
|
|
446,233
|
|
•
|
current economic trends and forecasts;
|
•
|
current collateral values, performance trends, and overall outlook in the markets where we lend;
|
•
|
legal and regulatory matters that could impact our borrowers’ ability to repay loans and leases;
|
•
|
loan and lease portfolio composition and any loan concentrations;
|
•
|
current lending policies and the effects of any new policies or policy amendments;
|
•
|
loan and lease production volume and mix;
|
•
|
loan and lease portfolio credit performance trends;
|
•
|
results of independent credit reviews; and
|
•
|
changes in management related to credit administration functions.
|
•
|
Pass: Loans and leases rated as "pass" are not adversely classified and collection and repayment in full are expected.
|
•
|
Special Mention: Loans and leases rated as "special mention" have a potential weakness that requires management's attention. If not addressed, these potential weaknesses may result in further deterioration in the borrower's ability to repay the loan or lease.
|
•
|
Substandard: Loans and leases rated as "substandard" have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the possibility that we will sustain some loss if the weaknesses are not corrected.
|
•
|
Doubtful: Loans and leases rated as "doubtful" have all the weaknesses of those rated as "substandard," with the additional trait that the weaknesses make collection or repayment in full highly questionable and improbable.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2016-13, "Measurement of Credit Losses on Financial Instruments,"
ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,”
ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," and ASU 2019-11, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses"
|
|
This Update changes the accounting and recognition of credit losses and impairment of financial assets recorded at amortized cost. Under the CECL model, the standard requires immediate recognition of estimated credit losses expected to occur over the remaining life of the asset. The forward-looking concept of CECL requires loss estimates for the remaining estimated life of the financial assets using historical experience, current conditions and reasonable and supportable forecasts. The Update modifies the other-than-temporary impairment (OTTI) model for AFS debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for reversal of credit improvements in future periods.
In addition, the Update eliminates the existing guidance for PCI loans, but requires an allowance for purchased financial assets with credit deterioration.
Receivables arising from operating leases are not within the scope of CECL. The Update must be applied using the modified retrospective method with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. A prospective transition approach is required for available-for-sale debt securities for which an OTTI had been recognized before the adoption date. Early adoption is permitted.
|
|
January 1, 2020
|
|
The Company established a multidisciplinary project team in 2016 to work on the implementation of CECL. During this implementation project, we developed a detailed implementation plan, selected a new software solution, reached accounting decisions on various matters, developed econometric models for our reasonable and supportable ("R&S") forecast period, selected key assumptions used in the economic regression models of Real GDP, unemployment rates, CRE Price Index and BBB spreads, developed a prepayment model and framework based on our historical prepayment experience, completed the validation of new models, redesigned our qualitative framework, and conducted five preliminary calculations during 2019. Key decisions made in our planned approach under CECL include the use of a probability of default/loss given default methodology, the use of a single scenario based on the Moody's consensus forecast for our economic forecast over the R&S period, an R&S forecast period of four quarters, a post R&S reversion period of two quarters using a straight-line approach, and a historical loss period of at least 40 quarters among other decisions. As part of performing our preliminary calculations, we performed sensitivity analyses and other steps to assess modeling assumptions and results, while also updating our disclosures, internal controls, policies, and procedures. We adopted this new standard on January 1, 2020 and, using our December 31, 2019 loan and lease balances and other information, calculated the day one impact and transition adjustment to be an increase in our allowance for credit losses of approximately $7.3 million, or 4.2%. The day one impact is a decrease to retained earnings of $5.3 million, net of tax, or a decrease of approximately two basis points to our capital ratios. The impact reflects our loan composition, which is primarily a short-duration commercial portfolio. The calculation of the allowance for credit losses under CECL is sensitive and highly dependent on loan composition, model methodologies, the macroeconomic conditions, economic forecasts, model assumptions, and other decisions and judgments made by management. We expect the provisions for credit losses to be susceptible to more volatility post-adoption due to these same factors and influenced by the volume of new loan originations, loan payoffs, and the seasoning of the loan portfolio.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments"
|
|
This Update made clarifications and amendments to five topics: (i) Topic A: Codification Improvements Resulting from the June and November 2018 Credit Losses Transition Resource Group ("TRG") Meetings, (ii) Topic B: Codification Improvements to ASU 2016-13, (iii) Topic C: Codification Improvements to ASU 2017-12, "Derivatives and Hedging (Topic 815)" and Other Hedging Items, (iv) Topic D: Codification Improvements to ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10)," and (v) Topic E: Codification Improvements Resulting from the November 2018 Credit Losses TRG Meeting. In addition to conforming amendments that correct for errors and oversights, the Update in Topics A, B, and E, which impacts CECL implementation, amends or clarifies guidance for accrued interest; transfers between classifications or categories of loans and debt securities; recoveries; effect of prepayments in determining the effective interest rate; estimated costs to sell when foreclosure is probable; vintage disclosure presentation related to line-of-credit arrangements converted to term loans; contractual extensions or renewals; and others. Transition requirements for the amendments are the same as ASU 2016-13 for the Update in Topics A, B, and E. The Update in Topic C may be applied retrospectively as of the date of initial adoption of ASU 2017-12 or prospectively. The Update in Topic D must be applied on a modified retrospective method with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption and early adoption is permitted.
|
|
January 1, 2020; except for Topic C - January 1, 2019
|
|
Impacts from the adoption of Topics A, B, and E within this Update have been considered in the Company's overall CECL implementation and we adopted concurrent with the adoption of ASU 2016-13. The adoption of Topic D within this Update did not have a material impact on the Company's consolidated financial position or results of operations upon adoption on January 1, 2020. Topic C within this Update is not applicable to us and therefore had no impact on the Company's consolidated financial position or results of operations.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment"
|
|
This Update simplifies goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and an impairment charge would be recognized for any amount by which the carrying amount exceeds the reporting unit's fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. The Update must be applied prospectively and early adoption is permitted.
|
|
January 1, 2020
|
|
The Company adopted this standard on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial position or results of operations.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to Disclosure Requirements for Fair Value Measurements”
|
|
This Update modified the disclosure requirements in ASC Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in ASC Topic 820 are also removed or modified. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis and early adoption is permitted.
|
|
January 1, 2020
|
|
The Company has early adopted those provisions of the standard that permitted the removal or modification of certain disclosures effective January 1, 2019 but deferred adoption of the additional new disclosures until January 1, 2020. The adoption of this guidance will modify disclosures in 2020 but will not have an impact on the Company’s consolidated financial position or results of operations.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”
|
|
This Update does the following, among other things: (1) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date; (2) specifies that an entity is not required to allocate the consolidated amount of current and deferred income tax expense to a legal entity that is not subject to income tax in its separate financial statements; and (3) requires that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction.
|
|
January 1, 2021
|
|
The Company has not yet determined the impact of this standard on its consolidated financial position and results of operations.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2020-1 “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): "Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815”
|
|
This Update clarifies, among other things, that a company should consider observable transactions that require it to either apply or discontinue the equity method of accounting for purposes of the measurement alternative under ASC Topic 321 immediately before applying, or on discontinuing, the equity method of accounting under ASC Topic 323. Under the ASC Topic 321 measurement alternative, equity investments without readily determinable fair values are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.
|
|
January 1, 2021
|
|
The Company has not yet determined the impact of this standard on its consolidated financial position and results of operations.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2020-02 “Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842): "Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842)"
|
|
This Update adds an SEC paragraph to ASC Subtopic 326-20, "Financial Instruments - Credit Losses - Measured at Amortized Cost," pursuant to the issuance of SEC Staff Accounting Bulletin ("SAB") No. 119. The topic of SAB 119 is "Accounting for Loan Losses by Registrants Engaged in Lending Activities Subject to FASB ASC Topic 326." This Update also adds a note to an SEC paragraph in ASC Subtopic 842-10, "Leases - Overall." The note relates to effective date information related to certain public business entities for ASU 2016-02, "Leases (Topic 842)."
|
|
January 1, 2020
|
|
The Company adopted this standard on January 1, 2020 and it did not have a material impact on the Company's consolidated financial position or results of operations.
|
|
October 20, 2017
|
||
|
(In thousands)
|
||
Assets Acquired:
|
|
||
Cash and due from banks
|
$
|
51,857
|
|
Interest‑earning deposits in financial institutions
|
332,799
|
|
|
Total cash and cash equivalents
|
384,656
|
|
|
Securities available‑for‑sale
|
446,980
|
|
|
FHLB stock
|
11,902
|
|
|
Loans and leases
|
2,075,890
|
|
|
Premises and equipment
|
2,981
|
|
|
Goodwill
|
374,721
|
|
|
Core deposit and customer relationship intangibles
|
57,500
|
|
|
Other assets
|
103,498
|
|
|
Total assets acquired
|
$
|
3,458,128
|
|
|
|
||
Liabilities Assumed:
|
|
||
Noninterest‑bearing deposits
|
$
|
1,510,285
|
|
Interest‑bearing deposits
|
1,209,597
|
|
|
Total deposits
|
2,719,882
|
|
|
Borrowings
|
22,879
|
|
|
Subordinated debentures
|
12,372
|
|
|
Accrued interest payable and other liabilities
|
32,424
|
|
|
Total liabilities assumed
|
$
|
2,787,557
|
|
Total consideration paid
|
$
|
670,571
|
|
|
|
||
Summary of consideration:
|
|
||
Cash paid
|
$
|
224,338
|
|
PacWest common stock issued
|
446,233
|
|
|
Total
|
$
|
670,571
|
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||||||||||
Security Type
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
Agency residential CMOs
|
$
|
1,112,573
|
|
|
$
|
24,403
|
|
|
$
|
(579
|
)
|
|
$
|
1,136,397
|
|
|
$
|
634,774
|
|
|
$
|
3,448
|
|
|
$
|
(5,372
|
)
|
|
$
|
632,850
|
|
Agency commercial MBS
|
1,083,182
|
|
|
25,579
|
|
|
(537
|
)
|
|
1,108,224
|
|
|
1,133,846
|
|
|
383
|
|
|
(21,525
|
)
|
|
1,112,704
|
|
||||||||
Municipal securities
|
691,647
|
|
|
43,851
|
|
|
(339
|
)
|
|
735,159
|
|
|
1,298,514
|
|
|
21,000
|
|
|
(7,320
|
)
|
|
1,312,194
|
|
||||||||
Agency residential MBS
|
294,606
|
|
|
10,593
|
|
|
(1
|
)
|
|
305,198
|
|
|
281,486
|
|
|
1,902
|
|
|
(2,300
|
)
|
|
281,088
|
|
||||||||
Asset-backed securities
|
216,133
|
|
|
320
|
|
|
(1,670
|
)
|
|
214,783
|
|
|
81,762
|
|
|
104
|
|
|
(481
|
)
|
|
81,385
|
|
||||||||
Collateralized loan obligations
|
124,134
|
|
|
25
|
|
|
(403
|
)
|
|
123,756
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Private label residential CMOs
|
96,066
|
|
|
3,430
|
|
|
(13
|
)
|
|
99,483
|
|
|
101,313
|
|
|
1,985
|
|
|
(2,093
|
)
|
|
101,205
|
|
||||||||
SBA securities
|
47,765
|
|
|
506
|
|
|
(13
|
)
|
|
48,258
|
|
|
68,158
|
|
|
—
|
|
|
(1,111
|
)
|
|
67,047
|
|
||||||||
Corporate debt securities
|
17,000
|
|
|
3,748
|
|
|
—
|
|
|
20,748
|
|
|
17,000
|
|
|
553
|
|
|
—
|
|
|
17,553
|
|
||||||||
U.S. Treasury securities
|
4,985
|
|
|
196
|
|
|
—
|
|
|
5,181
|
|
|
401,056
|
|
|
2,437
|
|
|
(88
|
)
|
|
403,405
|
|
||||||||
Total
|
$
|
3,688,091
|
|
|
$
|
112,651
|
|
|
$
|
(3,555
|
)
|
|
$
|
3,797,187
|
|
|
$
|
4,017,909
|
|
|
$
|
31,812
|
|
|
$
|
(40,290
|
)
|
|
$
|
4,009,431
|
|
|
Year Ended December 31,
|
||||||||||
Sales of Securities Available-for-Sale
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Amortized cost of securities sold (1)
|
$
|
1,559,415
|
|
|
$
|
563,625
|
|
|
$
|
759,841
|
|
|
|
|
|
|
|
||||||
Gross realized gains
|
$
|
29,584
|
|
|
$
|
9,225
|
|
|
$
|
3,295
|
|
Gross realized losses
|
(4,139
|
)
|
|
(1,049
|
)
|
|
(3,836
|
)
|
|||
Net realized gains (losses)
|
$
|
25,445
|
|
|
$
|
8,176
|
|
|
$
|
(541
|
)
|
(1)
|
The securities sold in 2017 included $404.5 million of the $447.0 million of securities obtained in the CUB acquisition that were sold for no gain or loss as they were marked to fair value at the time of acquisition.
|
|
December 31, 2019
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
|
Gross
|
|
|
|
Gross
|
|
|
|
Gross
|
||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Security Type
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Agency residential CMOs
|
$
|
180,071
|
|
|
$
|
(572
|
)
|
|
$
|
1,456
|
|
|
$
|
(7
|
)
|
|
$
|
181,527
|
|
|
$
|
(579
|
)
|
Agency commercial MBS
|
214,862
|
|
|
(537
|
)
|
|
—
|
|
|
—
|
|
|
214,862
|
|
|
(537
|
)
|
||||||
Municipal securities
|
38,667
|
|
|
(339
|
)
|
|
—
|
|
|
—
|
|
|
38,667
|
|
|
(339
|
)
|
||||||
Agency residential MBS
|
—
|
|
|
—
|
|
|
186
|
|
|
(1
|
)
|
|
186
|
|
|
(1
|
)
|
||||||
Asset-backed securities
|
165,575
|
|
|
(1,670
|
)
|
|
—
|
|
|
—
|
|
|
165,575
|
|
|
(1,670
|
)
|
||||||
Collateralized loan obligations
|
102,469
|
|
|
(403
|
)
|
|
—
|
|
|
—
|
|
|
102,469
|
|
|
(403
|
)
|
||||||
Private label residential CMOs
|
9,872
|
|
|
(11
|
)
|
|
114
|
|
|
(2
|
)
|
|
9,986
|
|
|
(13
|
)
|
||||||
SBA securities
|
4,565
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
4,565
|
|
|
(13
|
)
|
||||||
Total
|
$
|
716,081
|
|
|
$
|
(3,545
|
)
|
|
$
|
1,756
|
|
|
$
|
(10
|
)
|
|
$
|
717,837
|
|
|
$
|
(3,555
|
)
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
|
Gross
|
|
|
|
Gross
|
|
|
|
Gross
|
||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Security Type
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Agency residential CMOs
|
$
|
69,859
|
|
|
$
|
(326
|
)
|
|
$
|
164,097
|
|
|
$
|
(5,046
|
)
|
|
$
|
233,956
|
|
|
$
|
(5,372
|
)
|
Agency commercial MBS
|
40,641
|
|
|
(341
|
)
|
|
1,020,684
|
|
|
(21,184
|
)
|
|
1,061,325
|
|
|
(21,525
|
)
|
||||||
Municipal securities
|
52,386
|
|
|
(238
|
)
|
|
284,915
|
|
|
(7,082
|
)
|
|
337,301
|
|
|
(7,320
|
)
|
||||||
Agency residential MBS
|
60,164
|
|
|
(169
|
)
|
|
85,245
|
|
|
(2,131
|
)
|
|
145,409
|
|
|
(2,300
|
)
|
||||||
Asset-backed securities
|
11,548
|
|
|
(38
|
)
|
|
35,859
|
|
|
(443
|
)
|
|
47,407
|
|
|
(481
|
)
|
||||||
Private label residential CMOs
|
32,170
|
|
|
(831
|
)
|
|
49,237
|
|
|
(1,262
|
)
|
|
81,407
|
|
|
(2,093
|
)
|
||||||
SBA securities
|
249
|
|
|
(1
|
)
|
|
66,798
|
|
|
(1,110
|
)
|
|
67,047
|
|
|
(1,111
|
)
|
||||||
U.S. Treasury securities
|
49,729
|
|
|
(88
|
)
|
|
—
|
|
|
—
|
|
|
49,729
|
|
|
(88
|
)
|
||||||
Total
|
$
|
316,746
|
|
|
$
|
(2,032
|
)
|
|
$
|
1,706,835
|
|
|
$
|
(38,258
|
)
|
|
$
|
2,023,581
|
|
|
$
|
(40,290
|
)
|
|
December 31, 2019
|
||||||
|
Amortized
|
|
Fair
|
||||
Maturity
|
Cost
|
|
Value
|
||||
|
(In thousands)
|
||||||
Due in one year or less
|
$
|
7,870
|
|
|
$
|
7,897
|
|
Due after one year through five years
|
278,393
|
|
|
283,059
|
|
||
Due after five years through ten years
|
988,421
|
|
|
1,013,054
|
|
||
Due after ten years
|
2,413,407
|
|
|
2,493,177
|
|
||
Total securities available-for-sale
|
$
|
3,688,091
|
|
|
$
|
3,797,187
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Taxable interest
|
$
|
85,968
|
|
|
$
|
68,504
|
|
|
$
|
52,981
|
|
Non-taxable interest
|
27,955
|
|
|
41,376
|
|
|
43,355
|
|
|||
Dividend income
|
1,646
|
|
|
1,739
|
|
|
1,866
|
|
|||
Total interest income on investment securities
|
$
|
115,569
|
|
|
$
|
111,619
|
|
|
$
|
98,202
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Real estate mortgage
|
$
|
7,982,383
|
|
|
$
|
7,933,859
|
|
Real estate construction and land
|
2,773,209
|
|
|
2,262,710
|
|
||
Commercial
|
7,714,358
|
|
|
7,428,500
|
|
||
Consumer
|
440,790
|
|
|
401,296
|
|
||
Total gross loans and leases held for investment
|
18,910,740
|
|
|
18,026,365
|
|
||
Deferred fees, net
|
(63,868
|
)
|
|
(68,652
|
)
|
||
Total loans and leases held for investment, net of deferred fees
|
18,846,872
|
|
|
17,957,713
|
|
||
Allowance for loan and lease losses
|
(138,785
|
)
|
|
(132,472
|
)
|
||
Total loans and leases held for investment, net
|
$
|
18,708,087
|
|
|
$
|
17,825,241
|
|
|
December 31, 2019
|
||||||||||||||||||
|
30 - 89
|
|
90 or More
|
|
|
|
|
|
|
||||||||||
|
Days
|
|
Days
|
|
Total
|
|
|
|
|
||||||||||
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
2,448
|
|
|
$
|
5,919
|
|
|
$
|
8,367
|
|
|
$
|
4,194,320
|
|
|
$
|
4,202,687
|
|
Income producing and other residential
|
2,105
|
|
|
802
|
|
|
2,907
|
|
|
3,767,153
|
|
|
3,770,060
|
|
|||||
Total real estate mortgage
|
4,553
|
|
|
6,721
|
|
|
11,274
|
|
|
7,961,473
|
|
|
7,972,747
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
1,082,368
|
|
|
1,082,368
|
|
|||||
Residential
|
1,429
|
|
|
—
|
|
|
1,429
|
|
|
1,654,005
|
|
|
1,655,434
|
|
|||||
Total real estate construction and land
|
1,429
|
|
|
—
|
|
|
1,429
|
|
|
2,736,373
|
|
|
2,737,802
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
19
|
|
|
—
|
|
|
19
|
|
|
3,748,388
|
|
|
3,748,407
|
|
|||||
Venture capital
|
—
|
|
|
—
|
|
|
—
|
|
|
2,179,422
|
|
|
2,179,422
|
|
|||||
Other commercial
|
2,781
|
|
|
4,164
|
|
|
6,945
|
|
|
1,760,722
|
|
|
1,767,667
|
|
|||||
Total commercial
|
2,800
|
|
|
4,164
|
|
|
6,964
|
|
|
7,688,532
|
|
|
7,695,496
|
|
|||||
Consumer
|
1,006
|
|
|
200
|
|
|
1,206
|
|
|
439,621
|
|
|
440,827
|
|
|||||
Total
|
$
|
9,788
|
|
|
$
|
11,085
|
|
|
$
|
20,873
|
|
|
$
|
18,825,999
|
|
|
$
|
18,846,872
|
|
|
December 31, 2018
|
||||||||||||||||||
|
30 - 89
|
|
90 or More
|
|
|
|
|
|
|
||||||||||
|
Days
|
|
Days
|
|
Total
|
|
|
|
|
||||||||||
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
3,487
|
|
|
$
|
7,541
|
|
|
$
|
11,028
|
|
|
$
|
4,813,270
|
|
|
$
|
4,824,298
|
|
Income producing and other residential
|
1,557
|
|
|
476
|
|
|
2,033
|
|
|
3,091,810
|
|
|
3,093,843
|
|
|||||
Total real estate mortgage
|
5,044
|
|
|
8,017
|
|
|
13,061
|
|
|
7,905,080
|
|
|
7,918,141
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
442
|
|
|
442
|
|
|
912,141
|
|
|
912,583
|
|
|||||
Residential
|
1,527
|
|
|
—
|
|
|
1,527
|
|
|
1,319,546
|
|
|
1,321,073
|
|
|||||
Total real estate construction and land
|
1,527
|
|
|
442
|
|
|
1,969
|
|
|
2,231,687
|
|
|
2,233,656
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
47
|
|
|
646
|
|
|
693
|
|
|
3,304,728
|
|
|
3,305,421
|
|
|||||
Venture capital
|
4,705
|
|
|
—
|
|
|
4,705
|
|
|
2,034,043
|
|
|
2,038,748
|
|
|||||
Other commercial
|
5,181
|
|
|
1,285
|
|
|
6,466
|
|
|
2,053,960
|
|
|
2,060,426
|
|
|||||
Total commercial
|
9,933
|
|
|
1,931
|
|
|
11,864
|
|
|
7,392,731
|
|
|
7,404,595
|
|
|||||
Consumer
|
581
|
|
|
333
|
|
|
914
|
|
|
400,407
|
|
|
401,321
|
|
|||||
Total
|
$
|
17,085
|
|
|
$
|
10,723
|
|
|
$
|
27,808
|
|
|
$
|
17,929,905
|
|
|
$
|
17,957,713
|
|
|
December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
Nonaccrual
|
|
Performing
|
|
Total
|
|
Nonaccrual
|
|
Performing
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
18,346
|
|
|
$
|
4,184,341
|
|
|
$
|
4,202,687
|
|
|
$
|
15,321
|
|
|
$
|
4,808,977
|
|
|
$
|
4,824,298
|
|
Income producing and other residential
|
2,478
|
|
|
3,767,582
|
|
|
3,770,060
|
|
|
2,524
|
|
|
3,091,319
|
|
|
3,093,843
|
|
||||||
Total real estate mortgage
|
20,824
|
|
|
7,951,923
|
|
|
7,972,747
|
|
|
17,845
|
|
|
7,900,296
|
|
|
7,918,141
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
364
|
|
|
1,082,004
|
|
|
1,082,368
|
|
|
442
|
|
|
912,141
|
|
|
912,583
|
|
||||||
Residential
|
—
|
|
|
1,655,434
|
|
|
1,655,434
|
|
|
—
|
|
|
1,321,073
|
|
|
1,321,073
|
|
||||||
Total real estate construction and land
|
364
|
|
|
2,737,438
|
|
|
2,737,802
|
|
|
442
|
|
|
2,233,214
|
|
|
2,233,656
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-based
|
30,162
|
|
|
3,718,245
|
|
|
3,748,407
|
|
|
32,324
|
|
|
3,273,097
|
|
|
3,305,421
|
|
||||||
Venture capital
|
12,916
|
|
|
2,166,506
|
|
|
2,179,422
|
|
|
20,299
|
|
|
2,018,449
|
|
|
2,038,748
|
|
||||||
Other commercial
|
27,594
|
|
|
1,740,073
|
|
|
1,767,667
|
|
|
7,380
|
|
|
2,053,046
|
|
|
2,060,426
|
|
||||||
Total commercial
|
70,672
|
|
|
7,624,824
|
|
|
7,695,496
|
|
|
60,003
|
|
|
7,344,592
|
|
|
7,404,595
|
|
||||||
Consumer
|
493
|
|
|
440,334
|
|
|
440,827
|
|
|
1,043
|
|
|
400,278
|
|
|
401,321
|
|
||||||
Total
|
$
|
92,353
|
|
|
$
|
18,754,519
|
|
|
$
|
18,846,872
|
|
|
$
|
79,333
|
|
|
$
|
17,878,380
|
|
|
$
|
17,957,713
|
|
|
December 31, 2019
|
||||||||||||||
|
Classified
|
|
Special Mention
|
|
Pass
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
33,535
|
|
|
$
|
30,070
|
|
|
$
|
4,139,082
|
|
|
$
|
4,202,687
|
|
Income producing and other residential
|
8,600
|
|
|
1,711
|
|
|
3,759,749
|
|
|
3,770,060
|
|
||||
Total real estate mortgage
|
42,135
|
|
|
31,781
|
|
|
7,898,831
|
|
|
7,972,747
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
364
|
|
|
—
|
|
|
1,082,004
|
|
|
1,082,368
|
|
||||
Residential
|
—
|
|
|
1,429
|
|
|
1,654,005
|
|
|
1,655,434
|
|
||||
Total real estate construction and land
|
364
|
|
|
1,429
|
|
|
2,736,009
|
|
|
2,737,802
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
32,223
|
|
|
38,936
|
|
|
3,677,248
|
|
|
3,748,407
|
|
||||
Venture capital
|
35,316
|
|
|
74,813
|
|
|
2,069,293
|
|
|
2,179,422
|
|
||||
Other commercial
|
65,261
|
|
|
174,785
|
|
|
1,527,621
|
|
|
1,767,667
|
|
||||
Total commercial
|
132,800
|
|
|
288,534
|
|
|
7,274,162
|
|
|
7,695,496
|
|
||||
Consumer
|
613
|
|
|
1,212
|
|
|
439,002
|
|
|
440,827
|
|
||||
Total
|
$
|
175,912
|
|
|
$
|
322,956
|
|
|
$
|
18,348,004
|
|
|
$
|
18,846,872
|
|
|
December 31, 2018
|
||||||||||||||
|
Classified
|
|
Special Mention
|
|
Pass
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
57,734
|
|
|
$
|
74,785
|
|
|
$
|
4,691,779
|
|
|
$
|
4,824,298
|
|
Income producing and other residential
|
10,521
|
|
|
968
|
|
|
3,082,354
|
|
|
3,093,843
|
|
||||
Total real estate mortgage
|
68,255
|
|
|
75,753
|
|
|
7,774,133
|
|
|
7,918,141
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
442
|
|
|
7,041
|
|
|
905,100
|
|
|
912,583
|
|
||||
Residential
|
—
|
|
|
1,527
|
|
|
1,319,546
|
|
|
1,321,073
|
|
||||
Total real estate construction and land
|
442
|
|
|
8,568
|
|
|
2,224,646
|
|
|
2,233,656
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
45,957
|
|
|
48,338
|
|
|
3,211,126
|
|
|
3,305,421
|
|
||||
Venture capital
|
28,731
|
|
|
77,588
|
|
|
1,932,429
|
|
|
2,038,748
|
|
||||
Other commercial
|
92,526
|
|
|
50,136
|
|
|
1,917,764
|
|
|
2,060,426
|
|
||||
Total commercial
|
167,214
|
|
|
176,062
|
|
|
7,061,319
|
|
|
7,404,595
|
|
||||
Consumer
|
1,199
|
|
|
1,015
|
|
|
399,107
|
|
|
401,321
|
|
||||
Total
|
$
|
237,110
|
|
|
$
|
261,398
|
|
|
$
|
17,459,205
|
|
|
$
|
17,957,713
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
|
|
Total
|
|
|
|
|
|
Total
|
||||||||||||
|
Nonaccrual
|
|
|
|
Impaired
|
|
Nonaccrual
|
|
|
|
Impaired
|
||||||||||||
|
Loans
|
|
|
|
Loans
|
|
Loans
|
|
|
|
Loans
|
||||||||||||
|
and
|
|
Performing
|
|
and
|
|
and
|
|
Performing
|
|
and
|
||||||||||||
|
Leases
|
|
TDRs
|
|
Leases
|
|
Leases
|
|
TDRs
|
|
Leases
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage
|
$
|
20,824
|
|
|
$
|
10,165
|
|
|
$
|
30,989
|
|
|
$
|
17,845
|
|
|
$
|
11,484
|
|
|
$
|
29,329
|
|
Real estate construction and land
|
364
|
|
|
1,470
|
|
|
1,834
|
|
|
442
|
|
|
5,420
|
|
|
5,862
|
|
||||||
Commercial
|
70,672
|
|
|
550
|
|
|
71,222
|
|
|
60,003
|
|
|
692
|
|
|
60,695
|
|
||||||
Consumer
|
493
|
|
|
72
|
|
|
565
|
|
|
1,043
|
|
|
105
|
|
|
1,148
|
|
||||||
Total
|
$
|
92,353
|
|
|
$
|
12,257
|
|
|
$
|
104,610
|
|
|
$
|
79,333
|
|
|
$
|
17,701
|
|
|
$
|
97,034
|
|
|
December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
|
|
Unpaid
|
|
|
|
|
|
Unpaid
|
|
|
||||||||||||
|
Recorded
|
|
Principal
|
|
Related
|
|
Recorded
|
|
Principal
|
|
Related
|
||||||||||||
Impaired Loans and Leases
|
Investment
|
|
Balance
|
|
Allowance
|
|
Investment
|
|
Balance
|
|
Allowance
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
479
|
|
|
$
|
479
|
|
|
$
|
71
|
|
|
$
|
1,736
|
|
|
$
|
1,648
|
|
|
$
|
170
|
|
Income producing and other residential
|
2,002
|
|
|
2,005
|
|
|
160
|
|
|
2,569
|
|
|
2,563
|
|
|
247
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Venture capital
|
7,811
|
|
|
9,106
|
|
|
2,581
|
|
|
11,621
|
|
|
13,255
|
|
|
3,141
|
|
||||||
Other commercial
|
14,805
|
|
|
15,191
|
|
|
3,385
|
|
|
473
|
|
|
482
|
|
|
473
|
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
21,264
|
|
|
$
|
36,247
|
|
|
$
|
—
|
|
|
$
|
17,783
|
|
|
$
|
32,035
|
|
|
$
|
—
|
|
Income producing and other residential
|
7,244
|
|
|
9,442
|
|
|
—
|
|
|
7,241
|
|
|
9,425
|
|
|
—
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,834
|
|
|
1,887
|
|
|
—
|
|
|
5,862
|
|
|
5,870
|
|
|
—
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-based
|
30,162
|
|
|
52,139
|
|
|
—
|
|
|
32,324
|
|
|
38,100
|
|
|
—
|
|
||||||
Venture capital
|
5,270
|
|
|
44,468
|
|
|
—
|
|
|
8,678
|
|
|
41,335
|
|
|
—
|
|
||||||
Other commercial
|
13,174
|
|
|
32,242
|
|
|
—
|
|
|
7,599
|
|
|
25,740
|
|
|
—
|
|
||||||
Consumer
|
565
|
|
|
728
|
|
|
—
|
|
|
1,148
|
|
|
1,470
|
|
|
—
|
|
||||||
Total Loans and Leases With and
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Without an Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate mortgage
|
$
|
30,989
|
|
|
$
|
48,173
|
|
|
$
|
231
|
|
|
$
|
29,329
|
|
|
$
|
45,671
|
|
|
$
|
417
|
|
Real estate construction and land
|
1,834
|
|
|
1,887
|
|
|
—
|
|
|
5,862
|
|
|
5,870
|
|
|
—
|
|
||||||
Commercial
|
71,222
|
|
|
153,146
|
|
|
5,966
|
|
|
60,695
|
|
|
118,912
|
|
|
3,614
|
|
||||||
Consumer
|
565
|
|
|
728
|
|
|
—
|
|
|
1,148
|
|
|
1,470
|
|
|
—
|
|
||||||
Total
|
$
|
104,610
|
|
|
$
|
203,934
|
|
|
$
|
6,197
|
|
|
$
|
97,034
|
|
|
$
|
171,923
|
|
|
$
|
4,031
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017 (2)
|
||||||||||||||||||
|
Weighted
|
|
Interest
|
|
Weighted
|
|
Interest
|
|
Weighted
|
|
Interest
|
||||||||||||
|
Average
|
|
Income
|
|
Average
|
|
Income
|
|
Average
|
|
Income
|
||||||||||||
Impaired Loans and Leases
|
Balance (1)
|
|
Recognized
|
|
Balance (1)
|
|
Recognized
|
|
Balance (1)
|
|
Recognized
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
479
|
|
|
$
|
31
|
|
|
$
|
1,736
|
|
|
$
|
72
|
|
|
$
|
15,538
|
|
|
$
|
881
|
|
Income producing and other residential
|
2,001
|
|
|
58
|
|
|
2,199
|
|
|
75
|
|
|
2,787
|
|
|
55
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Venture capital
|
7,008
|
|
|
—
|
|
|
9,449
|
|
|
—
|
|
|
10,228
|
|
|
—
|
|
||||||
Other commercial
|
3,710
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
20,329
|
|
|
60
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
8
|
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
16,252
|
|
|
$
|
230
|
|
|
$
|
15,714
|
|
|
$
|
236
|
|
|
$
|
89,554
|
|
|
$
|
2,648
|
|
Income producing and other residential
|
6,898
|
|
|
217
|
|
|
7,191
|
|
|
181
|
|
|
3,842
|
|
|
59
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,834
|
|
|
118
|
|
|
5,460
|
|
|
383
|
|
|
5,690
|
|
|
306
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-based
|
28,829
|
|
|
—
|
|
|
32,324
|
|
|
—
|
|
|
31,388
|
|
|
—
|
|
||||||
Venture capital
|
4,735
|
|
|
—
|
|
|
689
|
|
|
—
|
|
|
2,860
|
|
|
—
|
|
||||||
Other commercial
|
7,303
|
|
|
75
|
|
|
6,286
|
|
|
98
|
|
|
3,404
|
|
|
84
|
|
||||||
Consumer
|
413
|
|
|
5
|
|
|
844
|
|
|
7
|
|
|
20
|
|
|
—
|
|
||||||
Total Loans and Leases With and
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Without an Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate mortgage
|
$
|
25,630
|
|
|
$
|
536
|
|
|
$
|
26,840
|
|
|
$
|
564
|
|
|
$
|
111,721
|
|
|
$
|
3,643
|
|
Real estate construction and land
|
1,834
|
|
|
118
|
|
|
5,460
|
|
|
383
|
|
|
5,690
|
|
|
306
|
|
||||||
Commercial
|
51,585
|
|
|
75
|
|
|
48,783
|
|
|
98
|
|
|
68,209
|
|
|
144
|
|
||||||
Consumer
|
413
|
|
|
5
|
|
|
844
|
|
|
7
|
|
|
120
|
|
|
8
|
|
||||||
Total
|
$
|
79,462
|
|
|
$
|
734
|
|
|
$
|
81,927
|
|
|
$
|
1,052
|
|
|
$
|
185,740
|
|
|
$
|
4,101
|
|
(1)
|
For loans and leases reported as impaired at December 31, 2019, 2018, and 2017, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.
|
(2)
|
Excludes PCI loans. See Note 1(h). Nature of Operations and Summary of Significant Accounting Policies.
|
|
|
|
|
|
|
|
Troubled Debt Restructurings
|
||||||||||
|
Troubled Debt Restructurings
|
|
That Subsequently Defaulted(1)
|
||||||||||||||
|
|
|
Pre-Modification
|
|
Post-Modification
|
|
|
|
|
||||||||
|
Number
|
|
Outstanding
|
|
Outstanding
|
|
Number
|
|
|
||||||||
|
of
|
|
Recorded
|
|
Recorded
|
|
of
|
|
Recorded
|
||||||||
|
Loans
|
|
Investment
|
|
Investment
|
|
Loans
|
|
Investment(1)
|
||||||||
|
(Dollars In thousands)
|
||||||||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
3
|
|
|
$
|
121
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Income producing and other residential
|
9
|
|
|
1,591
|
|
|
1,591
|
|
|
1
|
|
|
254
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
5
|
|
|
3,082
|
|
|
3,082
|
|
|
—
|
|
|
—
|
|
|||
Venture capital
|
14
|
|
|
19,017
|
|
|
19,155
|
|
|
—
|
|
|
—
|
|
|||
Other commercial
|
20
|
|
|
3,835
|
|
|
3,835
|
|
|
4
|
|
|
154
|
|
|||
Total
|
51
|
|
|
$
|
27,646
|
|
|
$
|
27,663
|
|
|
5
|
|
|
$
|
408
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
10
|
|
|
$
|
17,181
|
|
|
$
|
2,604
|
|
|
—
|
|
|
$
|
—
|
|
Income producing and other residential
|
10
|
|
|
3,262
|
|
|
2,203
|
|
|
—
|
|
|
—
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||
Asset-based (2)
|
4
|
|
|
28,947
|
|
|
33,947
|
|
|
—
|
|
|
—
|
|
|||
Venture capital
|
14
|
|
|
37,416
|
|
|
36,919
|
|
|
—
|
|
|
—
|
|
|||
Other commercial
|
19
|
|
|
14,399
|
|
|
14,027
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
3
|
|
|
673
|
|
|
673
|
|
|
—
|
|
|
—
|
|
|||
Total
|
60
|
|
|
$
|
101,878
|
|
|
$
|
90,373
|
|
|
—
|
|
|
$
|
—
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
5
|
|
|
$
|
2,527
|
|
|
$
|
2,463
|
|
|
—
|
|
|
$
|
—
|
|
Income producing and other residential
|
8
|
|
|
1,328
|
|
|
489
|
|
|
—
|
|
|
—
|
|
|||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||
Residential
|
1
|
|
|
362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
5
|
|
|
4,219
|
|
|
4,219
|
|
|
—
|
|
|
—
|
|
|||
Venture capital
|
11
|
|
|
29,733
|
|
|
29,733
|
|
|
—
|
|
|
—
|
|
|||
Other commercial
|
19
|
|
|
31,471
|
|
|
22,236
|
|
|
1
|
|
|
1
|
|
|||
Consumer
|
1
|
|
|
97
|
|
|
97
|
|
|
—
|
|
|
—
|
|
|||
Total
|
50
|
|
|
$
|
69,737
|
|
|
$
|
59,237
|
|
|
1
|
|
|
$
|
1
|
|
(1)
|
The population of defaulted TDRs for the period indicated includes only those loans restructured during the preceding 12-month period. For example, for the year ended December 31, 2019, the population of defaulted TDRs includes only those loans restructured after December 31, 2018. The table excludes defaulted TDRs in those classes for which the recorded investment was zero at the end of the period.
|
(2)
|
One commercial asset-based loan with a pre-modification balance of $27.3 million and a post-modification balance of $32.3 million was previously restructured in December 2017.
|
|
Year Ended
|
||
|
December 31, 2019
|
||
|
(In thousands)
|
||
Component of leases receivable income:
|
|
||
Interest income on net investments in leases
|
$
|
11,061
|
|
|
December 31, 2019
|
||
|
(In thousands)
|
||
Year Ending December 31,
|
|
||
2020
|
$
|
66,113
|
|
2021
|
51,735
|
|
|
2022
|
20,562
|
|
|
2023
|
12,491
|
|
|
2024
|
8,856
|
|
|
2025 and thereafter
|
1,015
|
|
|
Total undiscounted cash flows
|
160,772
|
|
|
Less: Unearned income
|
(13,043
|
)
|
|
Present value of lease payments
|
$
|
147,729
|
|
|
Year Ended December 31, 2019
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for Loan and lease losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of year
|
$
|
46,021
|
|
|
$
|
28,209
|
|
|
$
|
56,360
|
|
|
$
|
1,882
|
|
|
$
|
132,472
|
|
Charge-offs
|
(997
|
)
|
|
—
|
|
|
(30,426
|
)
|
|
(839
|
)
|
|
(32,262
|
)
|
|||||
Recoveries
|
983
|
|
|
—
|
|
|
14,397
|
|
|
195
|
|
|
15,575
|
|
|||||
Net charge-offs
|
(14
|
)
|
|
—
|
|
|
(16,029
|
)
|
|
(644
|
)
|
|
(16,687
|
)
|
|||||
(Negative provision) provision
|
(1,432
|
)
|
|
2,335
|
|
|
21,197
|
|
|
900
|
|
|
23,000
|
|
|||||
Balance, end of year
|
$
|
44,575
|
|
|
$
|
30,544
|
|
|
$
|
61,528
|
|
|
$
|
2,138
|
|
|
$
|
138,785
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Allowance by
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
231
|
|
|
$
|
—
|
|
|
$
|
5,966
|
|
|
$
|
—
|
|
|
$
|
6,197
|
|
Collectively evaluated for impairment
|
$
|
44,344
|
|
|
$
|
30,544
|
|
|
$
|
55,562
|
|
|
$
|
2,138
|
|
|
$
|
132,588
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Loans and Leases by
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
28,038
|
|
|
$
|
1,834
|
|
|
$
|
69,674
|
|
|
$
|
—
|
|
|
$
|
99,546
|
|
Collectively evaluated for impairment
|
7,944,709
|
|
|
2,735,968
|
|
|
7,625,822
|
|
|
440,827
|
|
|
18,747,326
|
|
|||||
Ending balance
|
$
|
7,972,747
|
|
|
$
|
2,737,802
|
|
|
$
|
7,695,496
|
|
|
$
|
440,827
|
|
|
$
|
18,846,872
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for Loan and lease losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of year (1)
|
$
|
40,051
|
|
|
$
|
13,055
|
|
|
$
|
84,022
|
|
|
$
|
2,328
|
|
|
$
|
139,456
|
|
Charge-offs
|
(8,190
|
)
|
|
—
|
|
|
(50,481
|
)
|
|
(371
|
)
|
|
(59,042
|
)
|
|||||
Recoveries
|
2,350
|
|
|
195
|
|
|
12,566
|
|
|
173
|
|
|
15,284
|
|
|||||
Net (charge-offs) recoveries
|
(5,840
|
)
|
|
195
|
|
|
(37,915
|
)
|
|
(198
|
)
|
|
(43,758
|
)
|
|||||
Provision (negative provision)
|
11,810
|
|
|
14,959
|
|
|
10,253
|
|
|
(248
|
)
|
|
36,774
|
|
|||||
Balance, end of year
|
$
|
46,021
|
|
|
$
|
28,209
|
|
|
$
|
56,360
|
|
|
$
|
1,882
|
|
|
$
|
132,472
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Allowance by
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
417
|
|
|
$
|
—
|
|
|
$
|
3,614
|
|
|
$
|
—
|
|
|
$
|
4,031
|
|
Collectively evaluated for impairment
|
$
|
45,604
|
|
|
$
|
28,209
|
|
|
$
|
52,746
|
|
|
$
|
1,882
|
|
|
$
|
128,441
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Loans and Leases by
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
26,473
|
|
|
$
|
5,862
|
|
|
$
|
59,288
|
|
|
$
|
444
|
|
|
$
|
92,067
|
|
Collectively evaluated for impairment
|
7,891,668
|
|
|
2,227,794
|
|
|
7,345,307
|
|
|
400,877
|
|
|
17,865,646
|
|
|||||
Ending balance
|
$
|
7,918,141
|
|
|
$
|
2,233,656
|
|
|
$
|
7,404,595
|
|
|
$
|
401,321
|
|
|
$
|
17,957,713
|
|
(1)
|
The allowance for loan losses related to PCI loans of $6.4 million as of December 31, 2017 is reflected in the beginning balance of the allowance for loan and lease losses for the year ended December 31, 2018.
|
|
Year Ended December 31, 2019
|
||||||||||
|
Allowance for
|
|
Reserve for
|
|
Total
|
||||||
|
Loan and
|
|
Unfunded Loan
|
|
Allowance for
|
||||||
|
Lease Losses
|
|
Commitments
|
|
Credit Losses
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of year
|
$
|
132,472
|
|
|
$
|
36,861
|
|
|
$
|
169,333
|
|
Charge-offs
|
(32,262
|
)
|
|
—
|
|
|
(32,262
|
)
|
|||
Recoveries
|
15,575
|
|
|
—
|
|
|
15,575
|
|
|||
Net charge-offs
|
(16,687
|
)
|
|
—
|
|
|
(16,687
|
)
|
|||
Provision (negative provision)
|
23,000
|
|
|
(1,000
|
)
|
|
22,000
|
|
|||
Balance, end of year
|
$
|
138,785
|
|
|
$
|
35,861
|
|
|
$
|
174,646
|
|
|
Year Ended December 31, 2018
|
||||||||||
|
Allowance for
|
|
Reserve for
|
|
Total
|
||||||
|
Loan and
|
|
Unfunded Loan
|
|
Allowance for
|
||||||
|
Lease Losses
|
|
Commitments
|
|
Credit Losses
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of year (1)
|
$
|
139,456
|
|
|
$
|
28,635
|
|
|
$
|
168,091
|
|
Charge-offs
|
(59,042
|
)
|
|
—
|
|
|
(59,042
|
)
|
|||
Recoveries
|
15,284
|
|
|
—
|
|
|
15,284
|
|
|||
Net charge-offs
|
(43,758
|
)
|
|
—
|
|
|
(43,758
|
)
|
|||
Provision
|
36,774
|
|
|
8,226
|
|
|
45,000
|
|
|||
Balance, end of year
|
$
|
132,472
|
|
|
$
|
36,861
|
|
|
$
|
169,333
|
|
(1)
|
The allowance for loan losses related to PCI loans of $6.4 million as of December 31, 2017 is reflected in the beginning balance of the allowance for loan and lease losses for the year ended December 31, 2018.
|
|
December 31,
|
||||||
Property Type
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Commercial real estate
|
$
|
221
|
|
|
$
|
2,004
|
|
Construction and land development
|
219
|
|
|
219
|
|
||
Multi‑family
|
—
|
|
|
1,059
|
|
||
Single-family residence
|
—
|
|
|
953
|
|
||
Total other real estate owned, net
|
440
|
|
|
4,235
|
|
||
Other foreclosed assets
|
—
|
|
|
1,064
|
|
||
Total foreclosed assets, net
|
$
|
440
|
|
|
$
|
5,299
|
|
|
Year Ended December 31,
|
||||||||||
Foreclosed Assets
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of year
|
$
|
5,299
|
|
|
$
|
1,329
|
|
|
$
|
12,976
|
|
Transfers to foreclosed assets from loans
|
120
|
|
|
16,914
|
|
|
580
|
|
|||
Other additions
|
—
|
|
|
—
|
|
|
1,385
|
|
|||
Provision for losses
|
(78
|
)
|
|
(74
|
)
|
|
(2,138
|
)
|
|||
Reductions related to sales
|
(4,901
|
)
|
|
(12,870
|
)
|
|
(11,474
|
)
|
|||
Balance, end of year
|
$
|
440
|
|
|
$
|
5,299
|
|
|
$
|
1,329
|
|
|
Year Ended December 31,
|
||||||||||
Foreclosed Assets Valuation Allowance
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of year
|
$
|
88
|
|
|
$
|
14
|
|
|
$
|
12,696
|
|
Provision for losses
|
78
|
|
|
74
|
|
|
2,138
|
|
|||
Reductions related to sales
|
(79
|
)
|
|
—
|
|
|
(14,820
|
)
|
|||
Balance, end of year
|
$
|
87
|
|
|
$
|
88
|
|
|
$
|
14
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Land
|
$
|
1,243
|
|
|
$
|
1,243
|
|
Buildings
|
8,399
|
|
|
8,309
|
|
||
Furniture, fixtures and equipment
|
47,581
|
|
|
45,204
|
|
||
Leasehold improvements
|
55,335
|
|
|
50,214
|
|
||
Premises and equipment, gross
|
112,558
|
|
|
104,970
|
|
||
Less: accumulated depreciation and amortization
|
(73,973
|
)
|
|
(70,309
|
)
|
||
Premises and equipment, net
|
$
|
38,585
|
|
|
$
|
34,661
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Gross Amount of CDI and CRI:
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
119,497
|
|
|
$
|
119,497
|
|
|
$
|
64,187
|
|
Addition from the CUB acquisition
|
—
|
|
|
—
|
|
|
57,500
|
|
|||
Fully amortized portion
|
(1,924
|
)
|
|
—
|
|
|
(2,190
|
)
|
|||
Balance, end of year
|
117,573
|
|
|
119,497
|
|
|
119,497
|
|
|||
Accumulated Amortization:
|
|
|
|
|
|
||||||
Balance, beginning of year
|
(62,377
|
)
|
|
(39,871
|
)
|
|
(27,821
|
)
|
|||
Amortization
|
(18,726
|
)
|
|
(22,506
|
)
|
|
(14,240
|
)
|
|||
Fully amortized portion
|
1,924
|
|
|
—
|
|
|
2,190
|
|
|||
Balance, end of year
|
(79,179
|
)
|
|
(62,377
|
)
|
|
(39,871
|
)
|
|||
Net CDI and CRI, end of year
|
$
|
38,394
|
|
|
$
|
57,120
|
|
|
$
|
79,626
|
|
|
December 31,
|
||||||
Other Assets
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Cash surrender value of BOLI
|
$
|
199,029
|
|
|
$
|
194,897
|
|
Operating lease ROU assets, net
|
129,301
|
|
|
—
|
|
||
Interest receivable
|
81,479
|
|
|
88,754
|
|
||
LIHTC investments
|
75,149
|
|
|
59,507
|
|
||
CRA investments (1)
|
65,152
|
|
|
59,062
|
|
||
Taxes receivable
|
31,591
|
|
|
39,096
|
|
||
Prepaid expenses
|
17,099
|
|
|
18,006
|
|
||
Equity investments without readily determinable fair values
|
14,890
|
|
|
14,758
|
|
||
Equity warrants
|
3,434
|
|
|
4,793
|
|
||
Equity investments with readily determinable fair values
|
2,998
|
|
|
4,891
|
|
||
Deferred tax asset, net
|
—
|
|
|
17,489
|
|
||
Other receivables/assets
|
16,689
|
|
|
39,132
|
|
||
Total other assets
|
$
|
636,811
|
|
|
$
|
540,385
|
|
(1)
|
Includes equity investments without readily determinable fair values of $17.8 million and $12.5 million at December 31, 2019 and 2018.
|
|
Year Ended
|
||
|
December 31, 2019
|
||
|
(In thousands)
|
||
Operating lease expense:
|
|
||
Fixed costs
|
$
|
33,891
|
|
Variable costs
|
100
|
|
|
Short-term lease costs
|
926
|
|
|
Sublease income
|
(4,202
|
)
|
|
Net lease expense
|
$
|
30,715
|
|
|
Year Ended
|
||
|
December 31, 2019
|
||
|
(In thousands)
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
32,991
|
|
ROU assets obtained in exchange for lease obligations:
|
|
||
Operating leases
|
$
|
175,569
|
|
|
December 31, 2019
|
||
|
(Dollars in thousands)
|
||
Operating leases:
|
|
||
Operating lease right-of-use assets, net
|
$
|
129,301
|
|
Operating lease liabilities
|
$
|
145,354
|
|
|
|
||
Weighted average remaining lease term (in years)
|
6.1
|
|
|
Weighted average discount rate
|
2.82
|
%
|
|
December 31, 2019
|
||
|
(In thousands)
|
||
Year Ending December 31,
|
|
||
2020
|
$
|
32,898
|
|
2021
|
30,657
|
|
|
2022
|
24,849
|
|
|
2023
|
22,068
|
|
|
2024
|
14,885
|
|
|
2025 and thereafter
|
34,119
|
|
|
Total operating lease liabilities
|
159,476
|
|
|
Less: Imputed interest
|
(14,122
|
)
|
|
Present value of operating lease liabilities
|
$
|
145,354
|
|
|
December 31, 2018
|
||
|
(In thousands)
|
||
Year Ending December 31,
|
|
||
2019
|
$
|
32,845
|
|
2020
|
30,267
|
|
|
2021
|
26,852
|
|
|
2022
|
20,862
|
|
|
2023
|
17,745
|
|
|
2024 and thereafter
|
29,923
|
|
|
Total
|
$
|
158,494
|
|
|
December 31, 2019
|
||
|
(In thousands)
|
||
Year Ending December 31,
|
|
||
2020
|
$
|
41,296
|
|
2021
|
39,292
|
|
|
2022
|
32,240
|
|
|
2023
|
25,522
|
|
|
2024
|
20,912
|
|
|
2025 and thereafter
|
37,304
|
|
|
Total undiscounted cash flows
|
$
|
196,566
|
|
|
December 31,
|
||||||
Deposit Composition
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Interest checking
|
$
|
3,818,002
|
|
|
$
|
2,972,357
|
|
Money market
|
5,122,803
|
|
|
5,432,169
|
|
||
Savings
|
499,591
|
|
|
571,422
|
|
||
Time deposits $250,000 and under
|
2,065,733
|
|
|
1,593,453
|
|
||
Time deposits over $250,000
|
483,609
|
|
|
412,185
|
|
||
Total interest-bearing deposits
|
$
|
11,989,738
|
|
|
$
|
10,981,586
|
|
|
Time Deposits
|
||||||||||
|
$250,000
|
|
Over
|
|
|
||||||
December 31, 2019
|
and Under
|
|
$250,000
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Year of Maturity:
|
|
|
|
|
|
||||||
2020
|
$
|
1,969,362
|
|
|
$
|
461,294
|
|
|
$
|
2,430,656
|
|
2021
|
81,070
|
|
|
20,610
|
|
|
101,680
|
|
|||
2022
|
11,813
|
|
|
1,454
|
|
|
13,267
|
|
|||
2023
|
1,682
|
|
|
—
|
|
|
1,682
|
|
|||
2024
|
1,408
|
|
|
251
|
|
|
1,659
|
|
|||
2025
|
398
|
|
|
—
|
|
|
398
|
|
|||
Total
|
$
|
2,065,733
|
|
|
$
|
483,609
|
|
|
$
|
2,549,342
|
|
|
December 31,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
||||||
|
|
|
Average
|
|
|
|
Average
|
||||||
Borrowing Type
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Non‑recourse debt
|
$
|
8
|
|
|
7.50
|
%
|
|
$
|
114
|
|
|
7.50
|
%
|
FHLB secured advances
|
1,318,000
|
|
|
1.66
|
%
|
|
1,040,000
|
|
|
2.56
|
%
|
||
FHLB unsecured overnight advance
|
141,000
|
|
|
1.56
|
%
|
|
141,000
|
|
|
2.53
|
%
|
||
AFX borrowings
|
300,000
|
|
|
1.61
|
%
|
|
190,000
|
|
|
2.56
|
%
|
||
Total borrowings
|
$
|
1,759,008
|
|
|
1.64
|
%
|
|
$
|
1,371,114
|
|
|
2.56
|
%
|
|
December 31,
|
|
|
|
|
|
|
||||||||||||
|
2019
|
|
2018
|
|
Issue
|
|
Maturity
|
|
Rate Index
|
||||||||||
Series
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Date
|
|
Date
|
|
(Quarterly Reset)
|
||||||
|
(Dollars in thousands)
|
|
|
|
|
|
|
||||||||||||
Trust V
|
$
|
10,310
|
|
|
5.00
|
%
|
|
$
|
10,310
|
|
|
5.89
|
%
|
|
8/15/2003
|
|
9/17/2033
|
|
3-month LIBOR + 3.10
|
Trust VI
|
10,310
|
|
|
4.94
|
%
|
|
10,310
|
|
|
5.84
|
%
|
|
9/3/2003
|
|
9/15/2033
|
|
3-month LIBOR + 3.05
|
||
Trust CII
|
5,155
|
|
|
4.85
|
%
|
|
5,155
|
|
|
5.74
|
%
|
|
9/17/2003
|
|
9/17/2033
|
|
3-month LIBOR + 2.95
|
||
Trust VII
|
61,856
|
|
|
4.69
|
%
|
|
61,856
|
|
|
5.27
|
%
|
|
2/5/2004
|
|
4/23/2034
|
|
3-month LIBOR + 2.75
|
||
Trust CIII
|
20,619
|
|
|
3.58
|
%
|
|
20,619
|
|
|
4.48
|
%
|
|
8/15/2005
|
|
9/15/2035
|
|
3-month LIBOR + 1.69
|
||
Trust FCCI
|
16,495
|
|
|
3.49
|
%
|
|
16,495
|
|
|
4.39
|
%
|
|
1/25/2007
|
|
3/15/2037
|
|
3-month LIBOR + 1.60
|
||
Trust FCBI
|
10,310
|
|
|
3.44
|
%
|
|
10,310
|
|
|
4.34
|
%
|
|
9/30/2005
|
|
12/15/2035
|
|
3-month LIBOR + 1.55
|
||
Trust CS 2005-1
|
82,475
|
|
|
3.85
|
%
|
|
82,475
|
|
|
4.74
|
%
|
|
11/21/2005
|
|
12/15/2035
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2005-2
|
128,866
|
|
|
3.89
|
%
|
|
128,866
|
|
|
4.47
|
%
|
|
12/14/2005
|
|
1/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-1
|
51,545
|
|
|
3.89
|
%
|
|
51,545
|
|
|
4.47
|
%
|
|
2/22/2006
|
|
4/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-2
|
51,550
|
|
|
3.89
|
%
|
|
51,550
|
|
|
4.47
|
%
|
|
9/27/2006
|
|
10/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-3 (1)
|
28,902
|
|
|
1.64
|
%
|
|
29,556
|
|
|
1.73
|
%
|
|
9/29/2006
|
|
10/30/2036
|
|
3-month EURIBOR + 2.05
|
||
Trust CS 2006-4
|
16,470
|
|
|
3.89
|
%
|
|
16,470
|
|
|
4.47
|
%
|
|
12/5/2006
|
|
1/30/2037
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-5
|
6,650
|
|
|
3.89
|
%
|
|
6,650
|
|
|
4.47
|
%
|
|
12/19/2006
|
|
1/30/2037
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2007-2
|
39,177
|
|
|
3.89
|
%
|
|
39,177
|
|
|
4.47
|
%
|
|
6/13/2007
|
|
7/30/2037
|
|
3-month LIBOR + 1.95
|
||
Gross subordinated debentures
|
540,690
|
|
|
3.87
|
%
|
|
541,344
|
|
|
4.51
|
%
|
|
|
|
|
|
|
||
Unamortized discount (2)
|
(82,481
|
)
|
|
|
|
(87,498
|
)
|
|
|
|
|
|
|
|
|
||||
Net subordinated debentures
|
$
|
458,209
|
|
|
|
|
$
|
453,846
|
|
|
|
|
|
|
|
|
|
(1)
|
Denomination is in Euros with a value of €25.8 million.
|
(2)
|
Amount represents the fair value adjustment on trust preferred securities assumed in acquisitions.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Loan commitments to extend credit
|
$
|
8,183,158
|
|
|
$
|
7,528,248
|
|
Standby letters of credit
|
355,503
|
|
|
364,210
|
|
||
Commitments to contribute capital to low income housing project partnerships,
|
|
|
|
||||
small business investment companies, and CRA-related loan pools
|
129,213
|
|
|
101,991
|
|
||
Commitments to contribute capital to private equity funds
|
50
|
|
|
50
|
|
||
Total
|
$
|
8,667,924
|
|
|
$
|
7,994,499
|
|
|
December 31, 2019
|
||
|
(In thousands)
|
||
Year Ending December 31,
|
|
||
2020
|
$
|
78,106
|
|
2021
|
39,997
|
|
|
2022
|
4,812
|
|
|
2023
|
852
|
|
|
2024
|
503
|
|
|
2025 and thereafter
|
4,943
|
|
|
Total
|
$
|
129,213
|
|
•
|
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2: Observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data, either directly or indirectly, for substantially the full term of the financial instrument. This category generally includes agency residential CMOs, agency commercial and residential MBS, municipal securities, collateralized loan obligations, registered publicly rated private label CMOs, corporate debt securities, SBA securities, and asset-backed securitizations.
|
•
|
Level 3: Inputs to a valuation methodology that are unobservable, supported by little or no market activity, and significant to the fair value measurement. These valuation methodologies generally include pricing models, discounted cash flow models, or a determination of fair value that requires significant management judgment or estimation. This category also includes observable inputs from a pricing service not corroborated by observable market data, and includes our non-rated private label CMOs, non-rated private label asset-backed securities, and equity warrants.
|
|
Fair Value Measurements as of
|
||||||||||||||
|
December 31, 2019
|
||||||||||||||
Measured on a Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities available‑for‑sale:
|
|
|
|
|
|
|
|
||||||||
Agency residential CMOs
|
$
|
1,136,397
|
|
|
$
|
—
|
|
|
$
|
1,136,397
|
|
|
$
|
—
|
|
Agency commercial MBS
|
1,108,224
|
|
|
—
|
|
|
1,108,224
|
|
|
—
|
|
||||
Municipal securities
|
735,159
|
|
|
—
|
|
|
735,159
|
|
|
—
|
|
||||
Agency residential MBS
|
305,198
|
|
|
—
|
|
|
305,198
|
|
|
—
|
|
||||
Asset-backed securities
|
214,783
|
|
|
—
|
|
|
198,348
|
|
|
16,435
|
|
||||
Private label residential CMOs
|
99,483
|
|
|
—
|
|
|
93,219
|
|
|
6,264
|
|
||||
Collateralized loan obligations
|
123,756
|
|
|
—
|
|
|
123,756
|
|
|
—
|
|
||||
SBA securities
|
48,258
|
|
|
—
|
|
|
48,258
|
|
|
—
|
|
||||
Corporate debt securities
|
20,748
|
|
|
—
|
|
|
20,748
|
|
|
—
|
|
||||
U.S. Treasury securities
|
5,181
|
|
|
5,181
|
|
|
—
|
|
|
—
|
|
||||
Total securities available-for-sale
|
3,797,187
|
|
|
5,181
|
|
|
3,769,307
|
|
|
22,699
|
|
||||
Equity warrants
|
3,434
|
|
|
—
|
|
|
—
|
|
|
3,434
|
|
||||
Other derivative assets
|
1,234
|
|
|
—
|
|
|
1,234
|
|
|
—
|
|
||||
Equity investments with readily determinable fair values
|
2,998
|
|
|
2,998
|
|
|
—
|
|
|
—
|
|
||||
Total recurring assets
|
$
|
3,804,853
|
|
|
$
|
8,179
|
|
|
$
|
3,770,541
|
|
|
$
|
26,133
|
|
Derivative liabilities
|
$
|
755
|
|
|
$
|
—
|
|
|
$
|
755
|
|
|
$
|
—
|
|
|
Fair Value Measurements as of
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
Measured on a Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities available‑for‑sale:
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
$
|
1,312,194
|
|
|
$
|
—
|
|
|
$
|
1,312,194
|
|
|
$
|
—
|
|
Agency commercial MBS
|
1,112,704
|
|
|
—
|
|
|
1,112,704
|
|
|
—
|
|
||||
Agency residential CMOs
|
632,850
|
|
|
—
|
|
|
632,850
|
|
|
—
|
|
||||
U.S. Treasury securities
|
403,405
|
|
|
403,405
|
|
|
—
|
|
|
—
|
|
||||
Agency residential MBS
|
281,088
|
|
|
—
|
|
|
281,088
|
|
|
—
|
|
||||
Private label residential CMOs
|
101,205
|
|
|
—
|
|
|
93,917
|
|
|
7,288
|
|
||||
Asset-backed securities
|
81,385
|
|
|
—
|
|
|
41,440
|
|
|
39,945
|
|
||||
SBA securities
|
67,047
|
|
|
—
|
|
|
67,047
|
|
|
—
|
|
||||
Corporate debt securities
|
17,553
|
|
|
—
|
|
|
17,553
|
|
|
—
|
|
||||
Total securities available-for-sale
|
4,009,431
|
|
|
403,405
|
|
|
3,558,793
|
|
|
47,233
|
|
||||
Equity warrants
|
4,793
|
|
|
—
|
|
|
—
|
|
|
4,793
|
|
||||
Other derivative assets
|
3,292
|
|
|
—
|
|
|
3,292
|
|
|
—
|
|
||||
Equity investments with readily determinable fair values
|
4,891
|
|
|
4,891
|
|
|
—
|
|
|
—
|
|
||||
Total recurring assets
|
$
|
4,022,407
|
|
|
$
|
408,296
|
|
|
$
|
3,562,085
|
|
|
$
|
52,026
|
|
Derivative liabilities
|
$
|
142
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
—
|
|
|
December 31, 2019
|
||||||
|
Private Label Residential CMOs
|
|
Asset-Backed Securities
|
||||
|
|
|
Weighted
|
|
Input or
|
|
Weighted
|
|
Range of
|
|
Average
|
|
Range of
|
|
Average
|
Unobservable Inputs
|
Inputs
|
|
Input
|
|
Inputs
|
|
Input
|
Voluntary annual prepayment speeds
|
0.0% - 19.1%
|
|
11.3%
|
|
15.0%
|
|
15.0%
|
Annual default rates (1)
|
0.8% - 35.7%
|
|
1.7%
|
|
2.0%
|
|
2.0%
|
Loss severity rates (1)
|
1.6% - 132.6%
|
|
56.1%
|
|
60.0%
|
|
60.0%
|
Discount rates
|
2.5% - 11.4%
|
|
6.6%
|
|
3.2% - 3.8%
|
|
3.6%
|
(1)
|
The voluntary annual prepayment speeds, annual default rates, and loss severity rates were the same for all of the asset-backed securities.
|
|
December 31, 2019
|
|
Equity Warrants
|
|
Weighted
|
|
Average
|
Unobservable Inputs
|
Input
|
Volatility
|
16.6%
|
Risk-free interest rate
|
1.6%
|
Remaining life assumption (in years)
|
3.2
|
|
Year Ended December 31,
|
||||||||||
Level 3 Private Label Residential CMOs
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of year
|
$
|
7,288
|
|
|
$
|
22,874
|
|
|
$
|
56,902
|
|
Total included in earnings
|
432
|
|
|
1,737
|
|
|
2,256
|
|
|||
Total unrealized loss in comprehensive income
|
(265
|
)
|
|
(1,146
|
)
|
|
(742
|
)
|
|||
Sales
|
—
|
|
|
(4,880
|
)
|
|
(4,732
|
)
|
|||
Transfer from Level 2
|
—
|
|
|
—
|
|
|
574
|
|
|||
Transfers to Level 2
|
—
|
|
|
—
|
|
|
(21,165
|
)
|
|||
Net settlements
|
(1,191
|
)
|
|
(11,297
|
)
|
|
(10,219
|
)
|
|||
Balance, end of year
|
$
|
6,264
|
|
|
$
|
7,288
|
|
|
$
|
22,874
|
|
|
Year Ended December 31,
|
||||||||||
Level 3 Asset-Backed Securities
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of year
|
$
|
39,945
|
|
|
$
|
42,109
|
|
|
$
|
8,373
|
|
Total included in earnings
|
(77
|
)
|
|
(32
|
)
|
|
367
|
|
|||
Total unrealized gain (loss) in comprehensive income
|
463
|
|
|
495
|
|
|
(937
|
)
|
|||
Purchases
|
—
|
|
|
15,158
|
|
|
42,910
|
|
|||
Net settlements
|
(23,896
|
)
|
|
(17,785
|
)
|
|
(8,604
|
)
|
|||
Balance, end of year
|
$
|
16,435
|
|
|
$
|
39,945
|
|
|
$
|
42,109
|
|
|
Year Ended December 31,
|
||||||||||
Level 3 Equity Warrants
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of year
|
$
|
4,793
|
|
|
$
|
5,161
|
|
|
$
|
5,497
|
|
Total included in earnings
|
8,669
|
|
|
7,478
|
|
|
2,532
|
|
|||
Exercises and settlements (1)
|
(10,239
|
)
|
|
(8,589
|
)
|
|
(3,093
|
)
|
|||
Issuances
|
324
|
|
|
821
|
|
|
1,407
|
|
|||
Transfers to Level 1 (equity investments with readily
|
|
|
|
|
|
||||||
determinable fair values)
|
(113
|
)
|
|
(78
|
)
|
|
(1,182
|
)
|
|||
Balance, end of year
|
$
|
3,434
|
|
|
$
|
4,793
|
|
|
$
|
5,161
|
|
(1)
|
Includes the exercise of warrants that upon exercise become equity securities in public companies. These are often subject to lock-up restrictions that must be met before the equity security can be sold, during which time they are reported as equity investments with readily determinable fair values.
|
|
Fair Value Measurement as of
|
||||||||||||||
|
December 31, 2019
|
||||||||||||||
Measured on a Non‑Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Impaired loans
|
$
|
28,706
|
|
|
$
|
—
|
|
|
$
|
1,083
|
|
|
$
|
27,623
|
|
OREO
|
105
|
|
|
—
|
|
|
—
|
|
|
105
|
|
||||
Total non-recurring
|
$
|
28,811
|
|
|
$
|
—
|
|
|
$
|
1,083
|
|
|
$
|
27,728
|
|
|
Fair Value Measurement as of
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
Measured on a Non‑Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Impaired loans
|
$
|
24,432
|
|
|
$
|
—
|
|
|
$
|
1,800
|
|
|
$
|
22,632
|
|
OREO
|
1,136
|
|
|
—
|
|
|
1,136
|
|
|
—
|
|
||||
Total non-recurring
|
$
|
25,568
|
|
|
$
|
—
|
|
|
$
|
2,936
|
|
|
$
|
22,632
|
|
|
Year Ended December 31,
|
||||||||||
Loss on Assets Measured on a Non‑Recurring Basis
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Impaired loans
|
$
|
6,797
|
|
|
$
|
9,198
|
|
|
$
|
20,422
|
|
Loans held for sale
|
—
|
|
|
—
|
|
|
957
|
|
|||
OREO
|
78
|
|
|
74
|
|
|
14
|
|
|||
Total net loss
|
$
|
6,875
|
|
|
$
|
9,272
|
|
|
$
|
21,393
|
|
|
December 31, 2019
|
||||||||||
|
|
|
Valuation
|
|
Unobservable
|
|
Input or
|
|
Weighted
|
||
Asset
|
Fair Value
|
|
Technique
|
|
Inputs
|
|
Range
|
|
Average
|
||
|
(In thousands)
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
18,899
|
|
|
Discounted cash flows
|
|
Discount rates
|
|
3.75% - 8.77%
|
|
7.62%
|
Impaired loans
|
8,724
|
|
|
Third party appraisals
|
|
No discounts
|
|
|
|
|
|
OREO
|
105
|
|
|
Third party appraisals
|
|
Discount (1)
|
|
43.00%
|
|
43.00%
|
|
Total non-recurring Level 3
|
$
|
27,728
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||||||
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
172,585
|
|
|
$
|
172,585
|
|
|
$
|
172,585
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest‑earning deposits in financial institutions
|
465,039
|
|
|
465,039
|
|
|
465,039
|
|
|
—
|
|
|
—
|
|
|||||
Securities available‑for‑sale
|
3,797,187
|
|
|
3,797,187
|
|
|
5,181
|
|
|
3,769,307
|
|
|
22,699
|
|
|||||
Investment in FHLB stock
|
40,924
|
|
|
40,924
|
|
|
—
|
|
|
40,924
|
|
|
—
|
|
|||||
Loans and leases held for investment, net
|
18,708,087
|
|
|
19,055,004
|
|
|
—
|
|
|
1,083
|
|
|
19,053,921
|
|
|||||
Equity warrants
|
3,434
|
|
|
3,434
|
|
|
—
|
|
|
—
|
|
|
3,434
|
|
|||||
Other derivative assets
|
1,234
|
|
|
1,234
|
|
|
—
|
|
|
1,234
|
|
|
—
|
|
|||||
Equity investments with readily determinable fair values
|
2,998
|
|
|
2,998
|
|
|
2,998
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Core deposits
|
16,187,287
|
|
|
16,187,287
|
|
|
—
|
|
|
16,187,287
|
|
|
—
|
|
|||||
Non-core non-maturity deposits
|
496,407
|
|
|
496,407
|
|
|
—
|
|
|
496,407
|
|
|
—
|
|
|||||
Time deposits
|
2,549,342
|
|
|
2,549,260
|
|
|
—
|
|
|
2,549,260
|
|
|
—
|
|
|||||
Borrowings
|
1,759,008
|
|
|
1,759,008
|
|
|
1,759,000
|
|
|
8
|
|
|
—
|
|
|||||
Subordinated debentures
|
458,209
|
|
|
441,617
|
|
|
—
|
|
|
441,617
|
|
|
—
|
|
|||||
Derivative liabilities
|
755
|
|
|
755
|
|
|
—
|
|
|
755
|
|
|
—
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
175,830
|
|
|
$
|
175,830
|
|
|
$
|
175,830
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest‑earning deposits in financial institutions
|
209,937
|
|
|
209,937
|
|
|
209,937
|
|
|
—
|
|
|
—
|
|
|||||
Securities available‑for‑sale
|
4,009,431
|
|
|
4,009,431
|
|
|
403,405
|
|
|
3,558,793
|
|
|
47,233
|
|
|||||
Investment in FHLB stock
|
32,103
|
|
|
32,103
|
|
|
—
|
|
|
32,103
|
|
|
—
|
|
|||||
Loans and leases held for investment, net
|
17,825,241
|
|
|
17,013,860
|
|
|
—
|
|
|
1,800
|
|
|
17,012,060
|
|
|||||
Equity warrants
|
4,793
|
|
|
4,793
|
|
|
—
|
|
|
—
|
|
|
4,793
|
|
|||||
Other derivative assets
|
3,292
|
|
|
3,292
|
|
|
—
|
|
|
3,292
|
|
|
—
|
|
|||||
Equity investments with readily determinable fair values
|
4,891
|
|
|
4,891
|
|
|
4,891
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Core deposits
|
16,346,671
|
|
|
16,346,671
|
|
|
—
|
|
|
16,346,671
|
|
|
—
|
|
|||||
Non-core non-maturity deposits
|
518,192
|
|
|
518,192
|
|
|
—
|
|
|
518,192
|
|
|
—
|
|
|||||
Time deposits
|
2,005,638
|
|
|
2,017,137
|
|
|
—
|
|
|
2,017,137
|
|
|
—
|
|
|||||
Borrowings
|
1,371,114
|
|
|
1,371,114
|
|
|
1,371,000
|
|
|
114
|
|
|
—
|
|
|||||
Subordinated debentures
|
453,846
|
|
|
435,251
|
|
|
—
|
|
|
435,251
|
|
|
—
|
|
|||||
Derivative liabilities
|
142
|
|
|
142
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Current Income Tax Expense:
|
|
|
|
|
|
||||||
Federal
|
$
|
113,807
|
|
|
$
|
100,466
|
|
|
$
|
74,769
|
|
State
|
34,575
|
|
|
69,909
|
|
|
38,933
|
|
|||
Total current income tax expense
|
148,382
|
|
|
170,375
|
|
|
113,702
|
|
|||
Deferred Income Tax Expense (Benefit):
|
|
|
|
|
|
||||||
Federal
|
5,062
|
|
|
4,746
|
|
|
63,463
|
|
|||
State
|
10,860
|
|
|
(7,143
|
)
|
|
19,748
|
|
|||
Total deferred income tax expense (benefit)
|
15,922
|
|
|
(2,397
|
)
|
|
83,211
|
|
|||
Total income tax expense
|
$
|
164,304
|
|
|
$
|
167,978
|
|
|
$
|
196,913
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Computed expected income tax expense at federal statutory rate
|
$
|
132,917
|
|
|
$
|
132,997
|
|
|
$
|
194,156
|
|
State tax expense, net of federal tax benefit
|
43,575
|
|
|
45,945
|
|
|
33,729
|
|
|||
Tax‑exempt interest benefit
|
(8,092
|
)
|
|
(9,810
|
)
|
|
(15,510
|
)
|
|||
Increase in cash surrender value of life insurance
|
(1,298
|
)
|
|
(1,742
|
)
|
|
(1,853
|
)
|
|||
Low income housing tax credits, net of amortization
|
(3,217
|
)
|
|
(2,025
|
)
|
|
(2,054
|
)
|
|||
Nondeductible employee compensation
|
4,430
|
|
|
2,552
|
|
|
1,781
|
|
|||
Nondeductible acquisition‑related expense
|
—
|
|
|
71
|
|
|
1,608
|
|
|||
Nondeductible FDIC premiums
|
1,302
|
|
|
1,664
|
|
|
—
|
|
|||
Change in unrecognized tax benefits
|
941
|
|
|
(169
|
)
|
|
1,157
|
|
|||
Valuation allowance change
|
(32,036
|
)
|
|
(15,721
|
)
|
|
(13,071
|
)
|
|||
Expired capital loss carryforward
|
3,136
|
|
|
8,097
|
|
|
—
|
|
|||
Federal rate change
|
—
|
|
|
1,859
|
|
|
(1,156
|
)
|
|||
State rate and apportionment changes
|
19,138
|
|
|
3,736
|
|
|
(3,735
|
)
|
|||
Other, net
|
3,508
|
|
|
524
|
|
|
1,861
|
|
|||
Recorded income tax expense
|
$
|
164,304
|
|
|
$
|
167,978
|
|
|
$
|
196,913
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Deferred Tax Assets:
|
|
|
|
||||
Book allowance for loan losses in excess of tax specific charge-offs
|
$
|
54,664
|
|
|
$
|
58,375
|
|
Interest on nonaccrual loans
|
4,550
|
|
|
4,389
|
|
||
Deferred compensation
|
5,809
|
|
|
6,015
|
|
||
Premises and equipment, principally due to differences in depreciation
|
3,478
|
|
|
4,506
|
|
||
Foreclosed assets valuation allowance
|
263
|
|
|
263
|
|
||
State tax benefit
|
5,721
|
|
|
6,570
|
|
||
Net operating losses
|
39,517
|
|
|
68,026
|
|
||
Capital loss carryforwards
|
—
|
|
|
4,212
|
|
||
Accrued liabilities
|
28,158
|
|
|
35,750
|
|
||
Unrealized loss from FDIC‑assisted acquisitions
|
1,678
|
|
|
3,559
|
|
||
Unrealized loss on securities available-for-sale
|
—
|
|
|
2,435
|
|
||
Tax mark-to-market
|
5,052
|
|
|
—
|
|
||
Equity investments
|
5,953
|
|
|
4,896
|
|
||
Goodwill
|
5,434
|
|
|
10,418
|
|
||
Tax credits
|
3,426
|
|
|
5,237
|
|
||
Lease liability
|
40,533
|
|
|
—
|
|
||
Other
|
—
|
|
|
4,887
|
|
||
Gross deferred tax assets
|
204,236
|
|
|
219,538
|
|
||
Valuation allowance
|
(46,371
|
)
|
|
(78,407
|
)
|
||
Deferred tax assets, net of valuation allowance
|
157,865
|
|
|
141,131
|
|
||
Deferred Tax Liabilities:
|
|
|
|
||||
Core deposit and customer relationship intangibles
|
9,853
|
|
|
15,159
|
|
||
Deferred loan fees and costs
|
5,330
|
|
|
7,275
|
|
||
Unrealized gain on securities available‑for‑sale
|
30,438
|
|
|
—
|
|
||
FHLB stock
|
647
|
|
|
658
|
|
||
Tax mark-to-market
|
—
|
|
|
1,636
|
|
||
Subordinated debentures
|
20,183
|
|
|
23,164
|
|
||
Operating leases
|
83,878
|
|
|
75,750
|
|
||
ROU assets
|
36,359
|
|
|
—
|
|
||
Other
|
2,830
|
|
|
—
|
|
||
Gross deferred tax liabilities
|
189,518
|
|
|
123,642
|
|
||
Total net deferred tax (liabilities) assets
|
$
|
(31,653
|
)
|
|
$
|
17,489
|
|
|
Year Ended December 31,
|
||||||
Unrecognized Tax Benefits
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Balance, beginning of year
|
$
|
9,572
|
|
|
$
|
10,209
|
|
Increase based on tax positions related to prior years
|
1,733
|
|
|
1,278
|
|
||
Reductions related to settlements
|
(255
|
)
|
|
(684
|
)
|
||
Reductions for tax positions as a result of a lapse of the applicable statute of limitations
|
(302
|
)
|
|
(1,231
|
)
|
||
Balance, end of year
|
$
|
10,748
|
|
|
$
|
9,572
|
|
|
|
|
|
||||
Unrecognized tax benefits that would have impacted the effective tax rate if recognized
|
$
|
6,981
|
|
|
$
|
5,806
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands, except per share data)
|
||||||||||
Basic Earnings Per Share:
|
|
|
|
|
|
||||||
Net earnings
|
$
|
468,636
|
|
|
$
|
465,339
|
|
|
$
|
357,818
|
|
Less: earnings allocated to unvested restricted stock(1)
|
(5,182
|
)
|
|
(5,119
|
)
|
|
(4,184
|
)
|
|||
Net earnings allocated to common shares
|
$
|
463,454
|
|
|
$
|
460,220
|
|
|
$
|
353,634
|
|
|
|
|
|
|
|
||||||
Weighted-average basic shares and unvested restricted stock outstanding
|
120,468
|
|
|
125,100
|
|
|
123,060
|
|
|||
Less: weighted-average unvested restricted stock outstanding
|
(1,502
|
)
|
|
(1,460
|
)
|
|
(1,447
|
)
|
|||
Weighted-average basic shares outstanding
|
118,966
|
|
|
123,640
|
|
|
121,613
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
3.90
|
|
|
$
|
3.72
|
|
|
$
|
2.91
|
|
|
|
|
|
|
|
||||||
Diluted Earnings Per Share:
|
|
|
|
|
|
||||||
Net earnings allocated to common shares
|
$
|
463,454
|
|
|
$
|
460,220
|
|
|
$
|
353,634
|
|
|
|
|
|
|
|
||||||
Weighted-average diluted shares outstanding
|
118,966
|
|
|
123,640
|
|
|
121,613
|
|
|||
|
|
|
|
|
|
||||||
Diluted earnings per share
|
$
|
3.90
|
|
|
$
|
3.72
|
|
|
$
|
2.91
|
|
(1)
|
Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.
|
•
|
Revenue earned at a point in time. Examples of revenue earned at a point in time are ATM transaction fees, wire transfer fees, NSF fees, and credit and debit card interchange fees. Revenue is generally derived from transactional information accumulated by our systems and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer's transaction. The Company is the principal in each of these contracts with the exception of credit and debit card interchange fees, in which case the Company is acting as the agent and records revenue net of expenses paid to the principal.
|
•
|
Revenue earned over time. The Company earns certain revenue from contracts with customers monthly. Examples of this type of revenue are deposit account service fees, investment management fees, merchant referral services, MasterCard marketing incentives, and safe deposit box fees. Account service charges, management fees, and referral fees are recognized on a monthly basis while any transaction-based revenue is recorded as the activity occurs. Revenue is primarily based on the number and type of transactions and is generally derived from transactional information accumulated by our systems. Revenue is recorded in the same period as the related transactions occur or services are rendered to the customer.
|
|
Year Ended December 31,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Total
|
|
Revenue from
|
|
Total
|
|
Revenue from
|
||||||||
|
Recorded
|
|
Contracts with
|
|
Recorded
|
|
Contracts with
|
||||||||
|
Revenue
|
|
Customers
|
|
Revenue
|
|
Customers
|
||||||||
|
(In thousands)
|
||||||||||||||
Total interest income
|
$
|
1,219,893
|
|
|
$
|
—
|
|
|
$
|
1,161,670
|
|
|
$
|
—
|
|
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Other commissions and fees
|
43,623
|
|
|
19,216
|
|
|
45,543
|
|
|
19,080
|
|
||||
Leased equipment income
|
38,727
|
|
|
—
|
|
|
37,881
|
|
|
—
|
|
||||
Service charges on deposit accounts
|
14,637
|
|
|
14,637
|
|
|
16,509
|
|
|
16,509
|
|
||||
Gain on sale of loans
|
1,114
|
|
|
—
|
|
|
4,675
|
|
|
—
|
|
||||
Gain on sale of securities
|
25,445
|
|
|
—
|
|
|
8,176
|
|
|
—
|
|
||||
Other income
|
19,016
|
|
|
1,617
|
|
|
35,851
|
|
|
1,791
|
|
||||
Total noninterest income
|
142,562
|
|
|
35,470
|
|
|
148,635
|
|
|
37,380
|
|
||||
Total revenue
|
$
|
1,362,455
|
|
|
$
|
35,470
|
|
|
$
|
1,310,305
|
|
|
$
|
37,380
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Products and services transferred at a point in time
|
$
|
19,253
|
|
|
$
|
18,681
|
|
Products and services transferred over time
|
16,217
|
|
|
18,699
|
|
||
Total revenue from contracts with customers
|
$
|
35,470
|
|
|
$
|
37,380
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Receivables, which are included in "Other assets"
|
$
|
1,094
|
|
|
$
|
1,334
|
|
Contract assets, which are included in "Other assets"
|
$
|
—
|
|
|
$
|
—
|
|
Contract liabilities, which are included in "Accrued interest payable and other liabilities"
|
$
|
490
|
|
|
$
|
621
|
|
|
TRSAs
|
|
PRSUs
|
||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
||
|
|
|
Average
|
|
|
|
Average
|
||
|
Number
|
|
Grant Date
|
|
Number
|
|
Grant Date
|
||
|
of
|
|
Fair Value
|
|
of
|
|
Fair Value
|
||
Year Ended December 31, 2019
|
Shares
|
|
(Per Share)
|
|
Units
|
|
(Per Unit)
|
||
Unvested restricted stock, beginning of year
|
1,344,656
|
|
|
$47.43
|
|
325,741
|
|
|
$43.34
|
Granted
|
836,326
|
|
|
$38.66
|
|
112,815
|
|
|
$39.56
|
Vested
|
(471,798
|
)
|
|
$44.12
|
|
(106,008
|
)
|
|
$32.01
|
Forfeited
|
(195,987
|
)
|
|
$46.91
|
|
(56,162
|
)
|
|
$23.04
|
Unvested restricted stock, end of year
|
1,513,197
|
|
|
$43.68
|
|
276,386
|
|
|
$50.27
|
|
Year Ended December 31,
|
||||||||||
Stock Repurchases Under Stock Repurchase Programs
|
2019
|
|
2018
|
|
2017
|
||||||
Dollar amount of repurchases (in thousands)
|
$
|
154,516
|
|
|
$
|
306,393
|
|
|
$
|
99,677
|
|
Number of shares repurchased
|
3,987,945
|
|
|
5,849,234
|
|
|
2,081,227
|
|
|||
Weighted average price per share
|
$
|
38.75
|
|
|
$
|
52.38
|
|
|
$
|
47.89
|
|
|
|
|
|
|
Well Capitalized
|
|
Capital
|
||||||
|
|
|
|
|
Minimum
|
|
Conservation
|
||||||
|
Actual
|
|
Requirement
|
|
Buffer
|
||||||||
|
Balance
|
|
Ratio
|
|
Balance
|
|
Ratio
|
|
Phase-In (1)
|
||||
|
(Dollars in thousands)
|
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||
Tier I leverage:
|
|
|
|
|
|
|
|
|
|
||||
PacWest Bancorp Consolidated
|
$
|
2,306,966
|
|
|
9.74%
|
|
$
|
1,184,347
|
|
|
5.00%
|
|
4.00%
|
Pacific Western Bank
|
$
|
2,589,473
|
|
|
10.95%
|
|
$
|
1,182,683
|
|
|
5.00%
|
|
4.00%
|
Common equity Tier I capital:
|
|
|
|
|
|
|
|
|
|
||||
PacWest Bancorp Consolidated
|
$
|
2,306,966
|
|
|
9.78%
|
|
$
|
1,532,971
|
|
|
6.50%
|
|
7.00%
|
Pacific Western Bank
|
$
|
2,589,473
|
|
|
11.00%
|
|
$
|
1,530,088
|
|
|
6.50%
|
|
7.00%
|
Tier I capital:
|
|
|
|
|
|
|
|
|
|
||||
PacWest Bancorp Consolidated
|
$
|
2,306,966
|
|
|
9.78%
|
|
$
|
1,886,734
|
|
|
8.00%
|
|
8.50%
|
Pacific Western Bank
|
$
|
2,589,473
|
|
|
11.00%
|
|
$
|
1,883,185
|
|
|
8.00%
|
|
8.50%
|
Total capital:
|
|
|
|
|
|
|
|
|
|
||||
PacWest Bancorp Consolidated
|
$
|
2,926,075
|
|
|
12.41%
|
|
$
|
2,358,417
|
|
|
10.00%
|
|
10.50%
|
Pacific Western Bank
|
$
|
2,764,128
|
|
|
11.74%
|
|
$
|
2,353,981
|
|
|
10.00%
|
|
10.50%
|
|
|
|
|
|
Well Capitalized
|
|
Capital
|
||||||
|
|
|
|
|
Minimum
|
|
Conservation
|
||||||
|
Actual
|
|
Requirement
|
|
Buffer
|
||||||||
|
Balance
|
|
Ratio
|
|
Balance
|
|
Ratio
|
|
Phase-In (1)
|
||||
|
(Dollars in thousands)
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||
Tier I leverage:
|
|
|
|
|
|
|
|
|
|
||||
PacWest Bancorp Consolidated
|
$
|
2,255,588
|
|
|
10.13%
|
|
$
|
1,113,341
|
|
|
5.00%
|
|
4.000%
|
Pacific Western Bank
|
$
|
2,403,244
|
|
|
10.80%
|
|
$
|
1,112,356
|
|
|
5.00%
|
|
4.000%
|
Common equity Tier I capital:
|
|
|
|
|
|
|
|
|
|
||||
PacWest Bancorp Consolidated
|
$
|
2,255,588
|
|
|
10.01%
|
|
$
|
1,464,131
|
|
|
6.50%
|
|
6.375%
|
Pacific Western Bank
|
$
|
2,403,244
|
|
|
10.68%
|
|
$
|
1,462,083
|
|
|
6.50%
|
|
6.375%
|
Tier I capital:
|
|
|
|
|
|
|
|
|
|
||||
PacWest Bancorp Consolidated
|
$
|
2,255,588
|
|
|
10.01%
|
|
$
|
1,802,008
|
|
|
8.00%
|
|
7.875%
|
Pacific Western Bank
|
$
|
2,403,244
|
|
|
10.68%
|
|
$
|
1,799,487
|
|
|
8.00%
|
|
7.875%
|
Total capital:
|
|
|
|
|
|
|
|
|
|
||||
PacWest Bancorp Consolidated
|
$
|
2,865,152
|
|
|
12.72%
|
|
$
|
2,252,510
|
|
|
10.00%
|
|
9.875%
|
Pacific Western Bank
|
$
|
2,572,586
|
|
|
11.44%
|
|
$
|
2,249,359
|
|
|
10.00%
|
|
9.875%
|
(1)
|
Ratios for December 31, 2019 reflect the minimum required plus the fully phased-in capital conservation buffer of 2.50%; ratios for December 31, 2018 reflect the minimum required plus capital conservation buffer phase-in for 2018 of 1.875%.
|
Parent Company Only
|
December 31,
|
||||||
Condensed Balance Sheets
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
113,961
|
|
|
$
|
244,859
|
|
Investments in subsidiaries
|
4,905,033
|
|
|
4,641,649
|
|
||
Other assets
|
74,479
|
|
|
79,516
|
|
||
Total assets
|
$
|
5,093,473
|
|
|
$
|
4,966,024
|
|
Liabilities:
|
|
|
|
||||
Subordinated debentures
|
$
|
135,055
|
|
|
$
|
135,055
|
|
Other liabilities
|
3,721
|
|
|
5,381
|
|
||
Total liabilities
|
138,776
|
|
|
140,436
|
|
||
Stockholders’ equity
|
4,954,697
|
|
|
4,825,588
|
|
||
Total liabilities and stockholders’ equity
|
$
|
5,093,473
|
|
|
$
|
4,966,024
|
|
Parent Company Only
|
Year Ended December 31,
|
||||||||||
Condensed Statements of Earnings
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Miscellaneous income
|
$
|
9,739
|
|
|
$
|
8,358
|
|
|
$
|
3,393
|
|
Dividends from Bank subsidiary
|
336,000
|
|
|
684,000
|
|
|
265,000
|
|
|||
Total income
|
345,739
|
|
|
692,358
|
|
|
268,393
|
|
|||
Interest expense
|
6,637
|
|
|
6,550
|
|
|
5,519
|
|
|||
Operating expenses
|
9,833
|
|
|
10,068
|
|
|
8,273
|
|
|||
Total expenses
|
16,470
|
|
|
16,618
|
|
|
13,792
|
|
|||
Earnings before income taxes and equity in undistributed earnings of
|
|
|
|
|
|
||||||
subsidiaries
|
329,269
|
|
|
675,740
|
|
|
254,601
|
|
|||
Income tax benefit
|
2,202
|
|
|
7,262
|
|
|
19,957
|
|
|||
Earnings before equity in undistributed earnings of subsidiaries
|
331,471
|
|
|
683,002
|
|
|
274,558
|
|
|||
Equity in (distributions in excess of) undistributed earnings of subsidiaries
|
137,165
|
|
|
(217,663
|
)
|
|
83,260
|
|
|||
Net earnings
|
$
|
468,636
|
|
|
$
|
465,339
|
|
|
$
|
357,818
|
|
Parent Company Only
|
Year Ended December 31,
|
||||||||||
Condensed Statements of Cash Flows
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net earnings
|
$
|
468,636
|
|
|
$
|
465,339
|
|
|
$
|
357,818
|
|
Adjustments to reconcile net earnings to net cash provided by
|
|
|
|
|
|
||||||
operating activities:
|
|
|
|
|
|
||||||
Change in other assets
|
(35,510
|
)
|
|
(36,362
|
)
|
|
(34,274
|
)
|
|||
Change in liabilities
|
(1,661
|
)
|
|
(953
|
)
|
|
4,857
|
|
|||
Gain on sale of securities, net
|
—
|
|
|
—
|
|
|
(15
|
)
|
|||
Earned stock compensation
|
26,815
|
|
|
29,768
|
|
|
25,568
|
|
|||
(Equity in) distributions in excess of undistributed earnings
|
|
|
|
|
|
||||||
of subsidiaries
|
(137,165
|
)
|
|
217,663
|
|
|
(83,260
|
)
|
|||
Net cash provided by operating activities
|
321,115
|
|
|
675,455
|
|
|
270,694
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Proceeds from sales of securities available-for-sale
|
—
|
|
|
—
|
|
|
426
|
|
|||
Net cash and cash equivalents paid in acquisitions
|
—
|
|
|
—
|
|
|
(223,818
|
)
|
|||
Net cash used in investing activities
|
—
|
|
|
—
|
|
|
(223,392
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Common stock repurchased and restricted stock surrendered
|
(162,965
|
)
|
|
(315,542
|
)
|
|
(109,153
|
)
|
|||
Net decrease in subordinated debentures
|
—
|
|
|
(12,372
|
)
|
|
—
|
|
|||
Cash dividends paid, net
|
(289,048
|
)
|
|
(288,193
|
)
|
|
(247,403
|
)
|
|||
Net cash used in financing activities
|
(452,013
|
)
|
|
(616,107
|
)
|
|
(356,556
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
(130,898
|
)
|
|
59,348
|
|
|
(309,254
|
)
|
|||
Cash and cash equivalents, beginning of year
|
244,859
|
|
|
185,511
|
|
|
494,765
|
|
|||
Cash and cash equivalents, end of year
|
$
|
113,961
|
|
|
$
|
244,859
|
|
|
$
|
185,511
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure of noncash investing and financing activities:
|
|
|
|
|
|
||||||
Common stock issued for acquisitions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
446,233
|
|
|
Three Months Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
|
2019
|
|
2019
|
|
2019
|
|
2019
|
||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||
Interest income
|
$
|
293,593
|
|
|
$
|
307,208
|
|
|
$
|
314,533
|
|
|
$
|
304,559
|
|
Interest expense
|
(46,974
|
)
|
|
(54,972
|
)
|
|
(53,635
|
)
|
|
(49,683
|
)
|
||||
Net interest income
|
246,619
|
|
|
252,236
|
|
|
260,898
|
|
|
254,876
|
|
||||
Provision for credit losses
|
(3,000
|
)
|
|
(7,000
|
)
|
|
(8,000
|
)
|
|
(4,000
|
)
|
||||
Net interest income after provision for credit losses
|
243,619
|
|
|
245,236
|
|
|
252,898
|
|
|
250,876
|
|
||||
Gain on sale of securities
|
184
|
|
|
908
|
|
|
22,192
|
|
|
2,161
|
|
||||
Other noninterest income
|
26,992
|
|
|
32,521
|
|
|
28,701
|
|
|
28,903
|
|
||||
Total noninterest income
|
27,176
|
|
|
33,429
|
|
|
50,893
|
|
|
31,064
|
|
||||
Foreclosed assets income (expense), net
|
3,446
|
|
|
(8
|
)
|
|
146
|
|
|
(29
|
)
|
||||
Acquisition, integration and reorganization costs
|
269
|
|
|
—
|
|
|
—
|
|
|
(618
|
)
|
||||
Other noninterest expense
|
(127,443
|
)
|
|
(126,801
|
)
|
|
(125,573
|
)
|
|
(125,640
|
)
|
||||
Total noninterest expense
|
(123,728
|
)
|
|
(126,809
|
)
|
|
(125,427
|
)
|
|
(126,287
|
)
|
||||
Earnings before income taxes
|
147,067
|
|
|
151,856
|
|
|
178,364
|
|
|
155,653
|
|
||||
Income tax expense
|
(29,186
|
)
|
|
(41,830
|
)
|
|
(50,239
|
)
|
|
(43,049
|
)
|
||||
Net earnings
|
$
|
117,881
|
|
|
$
|
110,026
|
|
|
$
|
128,125
|
|
|
$
|
112,604
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per share
|
$
|
0.98
|
|
|
$
|
0.92
|
|
|
$
|
1.07
|
|
|
$
|
0.92
|
|
Cash dividends declared per share
|
$
|
0.60
|
|
|
$
|
0.60
|
|
|
$
|
0.60
|
|
|
$
|
0.60
|
|
|
Three Months Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
|
2018
|
|
2018
|
|
2018
|
|
2018
|
||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||
Interest income
|
$
|
302,739
|
|
|
$
|
292,642
|
|
|
$
|
288,514
|
|
|
$
|
277,775
|
|
Interest expense
|
(40,974
|
)
|
|
(32,325
|
)
|
|
(26,182
|
)
|
|
(21,275
|
)
|
||||
Net interest income
|
261,765
|
|
|
260,317
|
|
|
262,332
|
|
|
256,500
|
|
||||
Provision for credit losses
|
(12,000
|
)
|
|
(11,500
|
)
|
|
(17,500
|
)
|
|
(4,000
|
)
|
||||
Net interest income after provision for credit losses
|
249,765
|
|
|
248,817
|
|
|
244,832
|
|
|
252,500
|
|
||||
Gain on sale of securities
|
786
|
|
|
826
|
|
|
253
|
|
|
6,311
|
|
||||
Other noninterest income
|
32,740
|
|
|
36,086
|
|
|
39,385
|
|
|
32,248
|
|
||||
Total noninterest income
|
33,526
|
|
|
36,912
|
|
|
39,638
|
|
|
38,559
|
|
||||
Foreclosed assets income, net
|
311
|
|
|
257
|
|
|
61
|
|
|
122
|
|
||||
Acquisition, integration and reorganization costs
|
(970
|
)
|
|
(800
|
)
|
|
—
|
|
|
—
|
|
||||
Other noninterest expense
|
(128,576
|
)
|
|
(127,610
|
)
|
|
(126,510
|
)
|
|
(127,517
|
)
|
||||
Total noninterest expense
|
(129,235
|
)
|
|
(128,153
|
)
|
|
(126,449
|
)
|
|
(127,395
|
)
|
||||
Earnings before income taxes
|
154,056
|
|
|
157,576
|
|
|
158,021
|
|
|
163,664
|
|
||||
Income tax expense
|
(39,015
|
)
|
|
(41,289
|
)
|
|
(42,286
|
)
|
|
(45,388
|
)
|
||||
Net earnings
|
$
|
115,041
|
|
|
$
|
116,287
|
|
|
$
|
115,735
|
|
|
$
|
118,276
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per share
|
$
|
0.93
|
|
|
$
|
0.94
|
|
|
$
|
0.92
|
|
|
$
|
0.93
|
|
Cash dividends declared per share
|
$
|
0.60
|
|
|
$
|
0.60
|
|
|
$
|
0.60
|
|
|
$
|
0.50
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
(a)
|
1. Financial Statements
|
3.1
|
|
|
3.2
|
|
|
3.3
|
|
|
4.1
|
|
Other long‑term borrowing instruments are omitted pursuant to Item 601(b)(4)(iii) of Regulation S‑K. The Company undertakes to furnish copies of such instruments to the Commission upon request.
|
4.2
|
|
|
10.1*
|
|
|
10.2*
|
|
|
10.3*
|
|
|
10.4*
|
|
|
10.5*
|
|
|
10.6*
|
|
|
10.7*
|
|
|
10.8*
|
|
|
10.9*
|
|
(b)
|
Exhibits
|
(c)
|
Excluded Financial Statements
|
|
|
PACWEST BANCORP
|
|
Dated:
|
February 27, 2020
|
By:
|
/s/ Matthew P. Wagner
Matthew P. Wagner
(Chief Executive Officer)
|
Signature
|
Title
|
Date
|
|
|
|
/s/ JOHN M. EGGEMEYER
John M. Eggemeyer
|
Chairman of the Board of Directors
|
February 27, 2020
|
|
|
|
/s/ MATTHEW P. WAGNER
Matthew P. Wagner
|
Chief Executive Officer and Director (Principal Executive Officer)
|
February 27, 2020
|
|
|
|
/s/ PATRICK J. RUSNAK
Patrick J. Rusnak
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
February 27, 2020
|
|
|
|
/s/ BART R. OLSON
Bart R. Olson
|
Executive Vice President and Chief Accounting Officer (Principal Accounting Officer)
|
February 27, 2020
|
|
|
|
/s/ TANYA M. ACKER
Tanya M. Acker
|
Director
|
February 27, 2020
|
|
|
|
/s/ PAUL R. BURKE
Paul R. Burke
|
Director
|
February 27, 2020
|
|
|
|
/s/ CRAIG A. CARLSON
Craig A. Carlson
|
Director
|
February 27, 2020
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/s/ C. WILLIAM HOSLER
C. William Hosler
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Director
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February 27, 2020
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/s/ SUSAN E. LESTER
Susan E. Lester
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Director
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February 27, 2020
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/s/ ARNOLD W. MESSER
Arnold W. Messer
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Director
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February 27, 2020
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/s/ ROGER H. MOLVAR
Roger H. Molvar
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Director
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February 27, 2020
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/s/ JAMES J. PIECZYNSKI
James J. Pieczynski
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Director
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February 27, 2020
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/s/ DANIEL B. PLATT
Daniel B. Platt
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Director
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February 27, 2020
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/s/ ROBERT A. STINE
Robert A. Stine
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Director
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February 27, 2020
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/s/ MARK T. YUNG
Mark T. Yung
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Director
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February 27, 2020
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PACWEST BANCORP
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By:
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Name:
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Title:
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PACWEST BANCORP
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LIST OF SUBSIDIARIES
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December 31, 2019
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Subsidiaries of PacWest Bancorp:
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State:
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Pacific Western Bank
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California
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10700 West Jefferson Avenue SBL LLC
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Delaware
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10790 Civic Center Drive CRE LLC
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Delaware
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1127 East Gore Boulevard LLC
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Delaware
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12148 Sky Lane SBL LLC
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Delaware
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1238 Green Lane CRE LLC
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Delaware
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1246 East Turin Avenue CRE LLC
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Delaware
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1602 East Central Boulevard SBL LLC
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Delaware
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1602 Medical Parkway SBL LLC
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Delaware
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2015 East Marshall Avenue SBL LLC
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Delaware
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2030 Main Street SBL LLC
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Delaware
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22106 East Country Vista SBL LLC
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Delaware
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2425 West Fifth Street CRE LLC
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Delaware
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2723 Zinfandel Drive CRE LLC
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Delaware
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2921 New Highway 51 SBL LLC
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Delaware
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3889 Highway 69 North SBL LLC
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Delaware
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4635 North Black Canyon Highway SBL LLC
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Delaware
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600 North Arrowhead Avenue CRE LLC
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Delaware
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7120 West McNichols Avenue SBL LLC
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Delaware
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749 West Main Street SBL LLC
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Delaware
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75 North Main Street SBL LLC
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Delaware
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808 West Bartlett Road SBL LLC
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Delaware
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8805 South McClintock Drive SBL LLC
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Delaware
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ALTEC Capital Trust
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Delaware
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CapitalSource CF LLC
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Delaware
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CapitalSource Finance LLC
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Delaware
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CapitalSource Funding LLC
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Delaware
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CapitalSource International LLC
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Delaware
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CapitalSource Real Estate Loan LLC, 2006-A
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Delaware
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CapitalSource TRS LLC
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Delaware
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CapitalSource Trust Preferred Securities 2005-1
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Delaware
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CapitalSource Trust Preferred Securities 2005-2
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Delaware
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CapitalSource Trust Preferred Securities 2006-1
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Delaware
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CapitalSource Trust Preferred Securities 2006-2
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Delaware
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CapitalSource Trust Preferred Securities 2006-3
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Delaware
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CapitalSource Trust Preferred Securities 2006-4
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Delaware
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CapitalSource Trust Preferred Securities 2006-5
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Delaware
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CapitalSource Trust Preferred Securities 2007-2
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Delaware
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PACWEST BANCORP
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LIST OF SUBSIDIARIES
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December 31, 2019
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Cheron Holdings LLC
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Delaware
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Chestnut Assets, LLC
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California
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CIMC Master Trust
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Delaware
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Coastline JX Holdings LLC
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Delaware
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Coastline Michigan LLC
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Michigan
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Coastline Ohio LLC
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Ohio
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Coastline RE Holdings Corp.
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California
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Coastline RE Holdings Moorpark Corp.
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California
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Coastline RE Holdings NV Corp.
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Nevada
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Community (CA) Capital Statutory Trust II
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Connecticut
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Community (CA) Capital Statutory Trust III
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Delaware
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CRE Assets, LLC
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California
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CS CF Equity I LLC
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Delaware
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CS Equity II LLC
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Delaware
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CS Equity III LLC
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Delaware
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CS Equity Investments LLC
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Delaware
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CS Linton Oaks Holdings LLC
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Delaware
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CS SBA Servicing LLC
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Delaware
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CSE Equity Holdings LLC
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Delaware
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CSE Mortgage LLC
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Delaware
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CSE Owned LLC
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Delaware
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FCB Statutory Trust I
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Delaware
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First California Capital Trust I
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Delaware
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FIRST COMMUNITY BANCORP/CA STATUTORY TRUST VII
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Delaware
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First Community/CA Statutory Trust V
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Connecticut
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First Community/CA Statutory Trust VI
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Delaware
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Hudson Housing Tax Credit Fund LXXXIV LP
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Delaware
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Hudson Kings Canyon LP
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Delaware
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Hudson Vista del Puente LP
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Delaware
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Kings Canyon Affordable Housing, L.P.
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California
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Oak Park 3, LP
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California
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Palace and Jetty CRE LLC
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Delaware
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PWB OPTICAL LLC
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Delaware
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R4 OPCA Acquisition LLC
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Delaware
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SC Financial
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California
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Pacific Western Asset Management Inc.
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North Carolina
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Square 1 Ventures, LLC
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Delaware
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Stone Eagle Golf Holdings Corp.
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California
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Valley Oaks Financial Corporation
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California
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PACWEST BANCORP
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LIST OF SUBSIDIARIES
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December 31, 2019
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Vista del Puente, L.P.
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California
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Wendy Road Office Development, LLC
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California
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1080 Roewill Drive CRE LLC
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Delaware
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102 7th Street SBL LLC
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Delaware
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102 6th Street SBL LLC
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Delaware
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1323 Burnet Avenue SBL LLC
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Delaware
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1335 Darby Street SBL LLC
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Delaware
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405 Jesus Cruz SBL LLC
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Delaware
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409 Jesus Avila SBL LLC
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Delaware
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67400 Ramon Road SBL LLC
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Delaware
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7537-7547 North Clark Street SBL LLC
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Delaware
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PWB ECOM DIRECT LLC
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Delaware
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1.
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I have reviewed this report on Form 10-K for the year ended December 31, 2019 of PacWest Bancorp;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer 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:
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(a)
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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;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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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):
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(a)
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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
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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February 27, 2020
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/s/ Matthew P. Wagner
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Matthew P. Wagner
Chief Executive Officer
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1.
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I have reviewed this report on Form 10-K for the year ended December 31, 2019 of PacWest Bancorp;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer 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:
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(a)
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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;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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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):
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(a)
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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
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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February 27, 2020
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/s/ Patrick J. Rusnak
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Patrick J. Rusnak
Executive Vice President and Chief Financial Officer
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Date:
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February 27, 2020
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/s/ Matthew P. Wagner
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Matthew P. Wagner
Chief Executive Officer
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Date:
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February 27, 2020
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/s/ Patrick J. Rusnak
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Patrick J. Rusnak
Executive Vice President and Chief Financial Officer
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