☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
33-0885320
|
(State of Incorporation)
|
|
(I.R.S. Employer Identification No.)
|
Common Stock, par value $0.01 per share
|
|
PACW
|
|
The Nasdaq Stock Market, LLC
|
(Title of Each Class)
|
|
(Trading Symbol)
|
|
(Name of Exchange on Which Registered)
|
|
|
Page
|
|
||
PART I. FINANCIAL INFORMATION
|
||
|
|
|
Item 1.
|
Condensed Consolidated Financial Statements (Unaudited)
|
|
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Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
Condensed Consolidated Statements of Earnings (Loss) (Unaudited)
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
|
|
|
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)
|
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
|
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
|
|
Item 4.
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Controls and Procedures
|
|
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||
PART II. OTHER INFORMATION
|
||
|
|
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Item 1.
|
Legal Proceedings
|
|
Item 1A.
|
Risk Factors
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Item 6.
|
Index to Exhibits
|
|
Signatures
|
AFX
|
American Financial Exchange
|
|
IPO
|
Initial Public Offering
|
ALLL
|
Allowance for Loan and Lease Losses
|
|
IRR
|
Interest Rate Risk
|
ALM
|
Asset Liability Management
|
|
LIBOR
|
London Inter-bank Offered Rate
|
ASC
|
Accounting Standards Codification
|
|
LIHTC
|
Low Income Housing Tax Credit
|
ASU
|
Accounting Standards Update
|
|
MBS
|
Mortgage-Backed Securities
|
Basel III
|
A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013
|
|
MVE
|
Market Value of Equity
|
BHCA
|
Bank Holding Company Act of 1956, as amended
|
|
NII
|
Net Interest Income
|
BOLI
|
Bank Owned Life Insurance
|
|
NIM
|
Net Interest Margin
|
CDI
|
Core Deposit Intangible Assets
|
|
NSF
|
Non-Sufficient Funds
|
CECL
|
Current Expected Credit Loss
|
|
OREO
|
Other Real Estate Owned
|
CET1
|
Common Equity Tier 1
|
|
PD/LGD
|
Probability of Default/Loss Given Default
|
CMOs
|
Collateralized Mortgage Obligations
|
|
PRSUs
|
Performance-Based Restricted Stock Units
|
CPI
|
Consumer Price Index
|
|
PWAM
|
Pacific Western Asset Management Inc.
|
CRA
|
Community Reinvestment Act
|
|
ROU
|
Right-of-use
|
CRI
|
Customer Relationship Intangible Assets
|
|
SBA
|
Small Business Administration
|
DBO
|
California Department of Business Oversight
|
|
SEC
|
Securities and Exchange Commission
|
DTAs
|
Deferred Tax Assets
|
|
SOFR
|
Secured Overnight Financing Rate
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
|
Tax Equivalent Net Interest Income
|
Net interest income reflecting adjustments related to tax-exempt interest on certain loans and investment securities
|
Efficiency Ratio
|
Noninterest expense (less intangible asset amortization, net foreclosed assets expense (income), goodwill impairment, and acquisition, integration and reorganization costs) divided by net revenues (the sum of tax equivalent net interest income plus noninterest income, less gain/loss on sale of securities and gain/loss on sales of assets other than loans and leases)
|
|
Tax Equivalent NIM
|
NIM reflecting adjustments related to tax-exempt interest on certain loans and investment securities
|
FASB
|
Financial Accounting Standards Board
|
|
TCJA
|
Tax Cuts and Jobs Act
|
FDIC
|
Federal Deposit Insurance Corporation
|
|
TDRs
|
Troubled Debt Restructurings
|
FHLB
|
Federal Home Loan Bank of San Francisco
|
|
TRSAs
|
Time-Based Restricted Stock Awards
|
FRB
|
Board of Governors of the Federal Reserve System
|
|
U.S. GAAP
|
U.S. Generally Accepted Accounting Principles
|
FRBSF
|
Federal Reserve Bank of San Francisco
|
|
VIE
|
Variable Interest Entity
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Unaudited)
|
||||||||||
|
(Dollars in thousands, except per share amounts)
|
||||||||||
Interest income:
|
|
|
|
|
|
||||||
Loans and leases
|
$
|
262,278
|
|
|
$
|
263,402
|
|
|
$
|
274,229
|
|
Investment securities
|
27,446
|
|
|
28,135
|
|
|
29,680
|
|
|||
Deposits in financial institutions
|
1,608
|
|
|
2,056
|
|
|
650
|
|
|||
Total interest income
|
291,332
|
|
|
293,593
|
|
|
304,559
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Deposits
|
28,247
|
|
|
34,802
|
|
|
34,235
|
|
|||
Borrowings
|
6,778
|
|
|
5,189
|
|
|
7,710
|
|
|||
Subordinated debentures
|
6,560
|
|
|
6,983
|
|
|
7,738
|
|
|||
Total interest expense
|
41,585
|
|
|
46,974
|
|
|
49,683
|
|
|||
Net interest income
|
249,747
|
|
|
246,619
|
|
|
254,876
|
|
|||
Provision for credit losses
|
112,000
|
|
|
3,000
|
|
|
4,000
|
|
|||
Net interest income after provision for credit losses
|
137,747
|
|
|
243,619
|
|
|
250,876
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Other commissions and fees
|
9,721
|
|
|
10,170
|
|
|
11,008
|
|
|||
Leased equipment income
|
12,251
|
|
|
10,648
|
|
|
9,282
|
|
|||
Service charges on deposit accounts
|
2,658
|
|
|
3,611
|
|
|
3,730
|
|
|||
Gain on sale of loans and leases
|
87
|
|
|
23
|
|
|
—
|
|
|||
Gain on sale of securities
|
182
|
|
|
184
|
|
|
2,161
|
|
|||
Other income
|
4,201
|
|
|
2,540
|
|
|
4,883
|
|
|||
Total noninterest income
|
29,100
|
|
|
27,176
|
|
|
31,064
|
|
|||
Noninterest expense:
|
|
|
|
|
|
||||||
Compensation
|
61,282
|
|
|
74,637
|
|
|
70,845
|
|
|||
Occupancy
|
14,207
|
|
|
14,541
|
|
|
14,320
|
|
|||
Data processing
|
6,454
|
|
|
6,770
|
|
|
6,925
|
|
|||
Leased equipment depreciation
|
7,205
|
|
|
6,856
|
|
|
5,651
|
|
|||
Intangible asset amortization
|
3,948
|
|
|
4,153
|
|
|
4,870
|
|
|||
Other professional services
|
4,258
|
|
|
4,261
|
|
|
4,513
|
|
|||
Insurance and assessments
|
4,249
|
|
|
4,168
|
|
|
4,038
|
|
|||
Customer related expense
|
3,932
|
|
|
3,952
|
|
|
2,943
|
|
|||
Loan expense
|
2,650
|
|
|
2,967
|
|
|
2,885
|
|
|||
Acquisition, integration and reorganization costs
|
—
|
|
|
(269
|
)
|
|
618
|
|
|||
Foreclosed assets expense (income), net
|
66
|
|
|
(3,446
|
)
|
|
29
|
|
|||
Goodwill impairment
|
1,470,000
|
|
|
—
|
|
|
—
|
|
|||
Other expense
|
9,719
|
|
|
5,138
|
|
|
8,650
|
|
|||
Total noninterest expense
|
1,587,970
|
|
|
123,728
|
|
|
126,287
|
|
|||
Earnings (loss) before income taxes
|
(1,421,123
|
)
|
|
147,067
|
|
|
155,653
|
|
|||
Income tax expense
|
11,988
|
|
|
29,186
|
|
|
43,049
|
|
|||
Net earnings (loss)
|
$
|
(1,433,111
|
)
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
|
|
|
|
|
|
||||||
Earnings (loss) per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
(12.23
|
)
|
|
$
|
0.98
|
|
|
$
|
0.92
|
|
Diluted
|
$
|
(12.23
|
)
|
|
$
|
0.98
|
|
|
$
|
0.92
|
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Unaudited)
|
||||||||||
|
(In thousands)
|
||||||||||
Net earnings (loss)
|
$
|
(1,433,111
|
)
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized net holding gains (losses) on securities
|
|
|
|
|
|
||||||
available-for-sale arising during the period
|
17,183
|
|
|
(24,547
|
)
|
|
62,639
|
|
|||
Income tax (expense) benefit related to net unrealized
|
|
|
|
|
|
||||||
holding gains (losses) arising during the period
|
(4,794
|
)
|
|
7,446
|
|
|
(17,758
|
)
|
|||
Unrealized net holding gains (losses) on securities
|
|
|
|
|
|
||||||
available-for-sale, net of tax
|
12,389
|
|
|
(17,101
|
)
|
|
44,881
|
|
|||
Reclassification adjustment for net gains
|
|
|
|
|
|
||||||
included in net earnings (1)
|
(182
|
)
|
|
(184
|
)
|
|
(2,161
|
)
|
|||
Income tax expense related to reclassification
|
|
|
|
|
|
||||||
adjustment
|
51
|
|
|
56
|
|
|
613
|
|
|||
Reclassification adjustment for net gains
|
|
|
|
|
|
||||||
included in net earnings, net of tax
|
(131
|
)
|
|
(128
|
)
|
|
(1,548
|
)
|
|||
Other comprehensive income (loss), net of tax
|
12,258
|
|
|
(17,229
|
)
|
|
43,333
|
|
|||
Comprehensive income (loss)
|
$
|
(1,420,853
|
)
|
|
$
|
100,652
|
|
|
$
|
155,937
|
|
(1)
|
Entire amounts are recognized in "Gain on sale of securities" on the Condensed Consolidated Statements of Earnings (Loss).
|
|
Three Months Ended March 31, 2020
|
|||||||||||||||||||||||||
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||||||||
|
|
|
|
|
Additional
|
|
|
|
|
|
Other
|
|
|
|||||||||||||
|
|
|
Par
|
|
Paid-in
|
|
Retained
|
|
Treasury
|
|
Comprehensive
|
|
|
|||||||||||||
|
Shares
|
|
Value
|
|
Capital
|
|
Earnings
|
|
Stock
|
|
Income (Loss)
|
|
Total
|
|||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||
Balance, December 31, 2019
|
119,781,605
|
|
|
$
|
1,219
|
|
|
$
|
3,306,006
|
|
|
$
|
1,652,248
|
|
|
$
|
(83,434
|
)
|
|
$
|
78,658
|
|
|
$
|
4,954,697
|
|
Cumulative effect of change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
accounting principle (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,283
|
)
|
|
—
|
|
|
—
|
|
|
(5,283
|
)
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,433,111
|
)
|
|
—
|
|
|
—
|
|
|
(1,433,111
|
)
|
||||||
Other comprehensive income - net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
unrealized gain on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
available-for-sale, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,258
|
|
|
12,258
|
|
||||||
Restricted stock awarded and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
earned stock compensation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
net of shares forfeited
|
194,916
|
|
|
2
|
|
|
6,492
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,494
|
|
||||||
Restricted stock surrendered
|
(106,021
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,460
|
)
|
|
—
|
|
|
(3,460
|
)
|
||||||
Common stock repurchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock Repurchase Program
|
(1,953,711
|
)
|
|
(20
|
)
|
|
(69,980
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70,000
|
)
|
||||||
Cash dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock, $0.60/share
|
—
|
|
|
—
|
|
|
(71,206
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,206
|
)
|
||||||
Balance, March 31, 2020
|
117,916,789
|
|
|
$
|
1,201
|
|
|
$
|
3,171,312
|
|
|
$
|
213,854
|
|
|
$
|
(86,894
|
)
|
|
$
|
90,916
|
|
|
$
|
3,390,389
|
|
(1)
|
Impact due to adoption on January 1, 2020 of ASU 2016-13, "Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments," and the related amendments, commonly referred to as CECL.
|
(2)
|
Impact due to adoption on January 1, 2019 of ASU 2016-02, "Leases (Topic 842)," and the related amendments.
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Unaudited)
|
||||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net earnings (loss)
|
$
|
(1,433,111
|
)
|
|
$
|
112,604
|
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
|
|
|
|
||||
Goodwill impairment
|
1,470,000
|
|
|
—
|
|
||
Depreciation and amortization
|
10,914
|
|
|
9,287
|
|
||
Amortization of net premiums on securities available-for-sale
|
2,643
|
|
|
4,142
|
|
||
Amortization of intangible assets
|
3,948
|
|
|
4,870
|
|
||
Amortization of operating lease ROU assets
|
7,196
|
|
|
7,608
|
|
||
Provision for credit losses
|
112,000
|
|
|
4,000
|
|
||
Gain on sale of foreclosed assets
|
(52
|
)
|
|
(191
|
)
|
||
Provision for losses on foreclosed assets
|
105
|
|
|
—
|
|
||
Gain on sale of loans and leases
|
(87
|
)
|
|
—
|
|
||
Loss on sale of premises and equipment
|
77
|
|
|
3
|
|
||
Gain on sale of securities
|
(182
|
)
|
|
(2,161
|
)
|
||
Unrealized loss on derivatives and foreign currencies, net
|
264
|
|
|
16
|
|
||
Earned stock compensation
|
6,494
|
|
|
5,808
|
|
||
Decrease in other assets
|
4,206
|
|
|
52,148
|
|
||
Decrease in accrued interest payable and other liabilities
|
(68,841
|
)
|
|
(46,241
|
)
|
||
Net cash provided by operating activities
|
115,574
|
|
|
151,893
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Net increase in loans and leases
|
(923,353
|
)
|
|
(391,621
|
)
|
||
Proceeds from sales of loans and leases
|
87
|
|
|
16,937
|
|
||
Proceeds from maturities and paydowns of securities available-for-sale
|
80,521
|
|
|
67,325
|
|
||
Proceeds from sales of securities available-for-sale
|
14,948
|
|
|
407,926
|
|
||
Purchases of securities available-for-sale
|
(41,405
|
)
|
|
(402,030
|
)
|
||
Net (purchases) redemptions of Federal Home Loan Bank stock
|
(13,320
|
)
|
|
2,673
|
|
||
Proceeds from sales of foreclosed assets
|
462
|
|
|
2,236
|
|
||
Purchases of premises and equipment, net
|
(4,304
|
)
|
|
(5,625
|
)
|
||
Proceeds from sales of premises and equipment
|
2
|
|
|
—
|
|
||
Proceeds from BOLI death benefit
|
380
|
|
|
—
|
|
||
Net decrease (increase) in equipment leased to others under operating leases
|
10,905
|
|
|
(6,709
|
)
|
||
Net cash (used in) investing activities
|
(875,077
|
)
|
|
(308,888
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Net increase (decrease) in noninterest-bearing deposits
|
266,932
|
|
|
(176,506
|
)
|
||
Net increase in interest-bearing deposits
|
75,881
|
|
|
591,932
|
|
||
Net increase in borrowings
|
535,992
|
|
|
109,973
|
|
||
Common stock repurchased and restricted stock surrendered
|
(73,460
|
)
|
|
(124,109
|
)
|
||
Cash dividends paid
|
(71,206
|
)
|
|
(73,180
|
)
|
||
Net cash provided by financing activities
|
734,139
|
|
|
328,110
|
|
||
|
|
|
|
||||
Net (decrease) increase in cash, cash equivalents, and restricted cash
|
(25,364
|
)
|
|
171,115
|
|
||
Cash, cash equivalents, and restricted cash, beginning of period
|
637,624
|
|
|
385,767
|
|
||
Cash, cash equivalents, and restricted cash, end of period
|
$
|
612,260
|
|
|
$
|
556,882
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Unaudited)
|
||||||
|
(In thousands)
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
43,820
|
|
|
$
|
46,197
|
|
Cash paid for income taxes
|
2,019
|
|
|
2,778
|
|
||
Loans transferred to foreclosed assets
|
1,776
|
|
|
37
|
|
||
Transfers from loans held for investment to loans held for sale
|
—
|
|
|
25,124
|
|
•
|
High Pass: (Risk ratings 1-2) Loans and leases rated as "high pass" exhibit a favorable credit profile and have minimal risk characteristics. Repayment in full is expected, even in adverse economic conditions.
|
•
|
Pass: (Risk ratings 3-4) Loans and leases rated as "pass" are not adversely classified and collection and repayment in full are expected.
|
•
|
Special Mention: (Risk rating 5) 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: (Risk rating 6) 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: (Risk rating 7) 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.
|
•
|
legal and regulatory matters that could impact our borrowers’ ability to repay our loans and leases;
|
•
|
loan and lease portfolio composition and any loan concentrations;
|
•
|
current lending policies and the effects of any new policies or policy amendments;
|
•
|
loan and lease production volume and mix;
|
•
|
loan and lease portfolio credit performance trends;
|
•
|
results of independent credit review; and
|
•
|
changes in management related to credit administration functions.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||||||||
|
|
|
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 commercial MBS
|
$
|
1,068,810
|
|
|
$
|
57,997
|
|
|
$
|
(1,375
|
)
|
|
$
|
1,125,432
|
|
|
$
|
1,083,182
|
|
|
$
|
25,579
|
|
|
$
|
(537
|
)
|
|
$
|
1,108,224
|
|
Agency residential CMOs
|
1,069,657
|
|
|
40,124
|
|
|
(7,684
|
)
|
|
1,102,097
|
|
|
1,112,573
|
|
|
24,403
|
|
|
(579
|
)
|
|
1,136,397
|
|
||||||||
Municipal securities
|
687,603
|
|
|
46,310
|
|
|
(29
|
)
|
|
733,884
|
|
|
691,647
|
|
|
43,851
|
|
|
(339
|
)
|
|
735,159
|
|
||||||||
Agency residential MBS
|
277,213
|
|
|
12,733
|
|
|
(115
|
)
|
|
289,831
|
|
|
294,606
|
|
|
10,593
|
|
|
(1
|
)
|
|
305,198
|
|
||||||||
Asset-backed securities
|
220,624
|
|
|
41
|
|
|
(9,966
|
)
|
|
210,699
|
|
|
216,133
|
|
|
320
|
|
|
(1,670
|
)
|
|
214,783
|
|
||||||||
Collateralized loan obligations
|
142,144
|
|
|
—
|
|
|
(12,062
|
)
|
|
130,082
|
|
|
124,134
|
|
|
25
|
|
|
(403
|
)
|
|
123,756
|
|
||||||||
Private label residential CMOs
|
99,021
|
|
|
1,096
|
|
|
(2,255
|
)
|
|
97,862
|
|
|
96,066
|
|
|
3,430
|
|
|
(13
|
)
|
|
99,483
|
|
||||||||
SBA securities
|
44,508
|
|
|
998
|
|
|
(65
|
)
|
|
45,441
|
|
|
47,765
|
|
|
506
|
|
|
(13
|
)
|
|
48,258
|
|
||||||||
Corporate debt securities
|
17,000
|
|
|
—
|
|
|
(43
|
)
|
|
16,957
|
|
|
17,000
|
|
|
3,748
|
|
|
—
|
|
|
20,748
|
|
||||||||
U.S. Treasury securities
|
4,986
|
|
|
392
|
|
|
—
|
|
|
5,378
|
|
|
4,985
|
|
|
196
|
|
|
—
|
|
|
5,181
|
|
||||||||
Total
|
$
|
3,631,566
|
|
|
$
|
159,691
|
|
|
$
|
(33,594
|
)
|
|
$
|
3,757,663
|
|
|
$
|
3,688,091
|
|
|
$
|
112,651
|
|
|
$
|
(3,555
|
)
|
|
$
|
3,797,187
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
Sales of Securities Available-for-Sale
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Amortized cost of securities sold
|
$
|
14,766
|
|
|
$
|
405,765
|
|
|
|
|
|
||||
Gross realized gains
|
$
|
182
|
|
|
$
|
4,059
|
|
Gross realized losses
|
—
|
|
|
(1,898
|
)
|
||
Net realized gains
|
$
|
182
|
|
|
$
|
2,161
|
|
|
March 31, 2020
|
||||||||||||||||||||||
|
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 commercial MBS
|
$
|
109,101
|
|
|
$
|
(1,375
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
109,101
|
|
|
$
|
(1,375
|
)
|
Agency residential CMOs
|
263,858
|
|
|
(6,921
|
)
|
|
37,560
|
|
|
(763
|
)
|
|
301,418
|
|
|
(7,684
|
)
|
||||||
Municipal securities
|
7,521
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
7,521
|
|
|
(29
|
)
|
||||||
Agency residential MBS
|
9,523
|
|
|
(115
|
)
|
|
—
|
|
|
—
|
|
|
9,523
|
|
|
(115
|
)
|
||||||
Asset-backed securities
|
171,096
|
|
|
(7,547
|
)
|
|
36,993
|
|
|
(2,419
|
)
|
|
208,089
|
|
|
(9,966
|
)
|
||||||
Collateralized loan obligations
|
130,082
|
|
|
(12,062
|
)
|
|
—
|
|
|
—
|
|
|
130,082
|
|
|
(12,062
|
)
|
||||||
Private label residential CMOs
|
86,880
|
|
|
(2,247
|
)
|
|
105
|
|
|
(8
|
)
|
|
86,985
|
|
|
(2,255
|
)
|
||||||
SBA securities
|
1,958
|
|
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
1,958
|
|
|
(65
|
)
|
||||||
Corporate debt securities
|
16,958
|
|
|
(42
|
)
|
|
1
|
|
|
(1
|
)
|
|
16,959
|
|
|
(43
|
)
|
||||||
Total
|
$
|
796,977
|
|
|
$
|
(30,403
|
)
|
|
$
|
74,659
|
|
|
$
|
(3,191
|
)
|
|
$
|
871,636
|
|
|
$
|
(33,594
|
)
|
|
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 commercial MBS
|
$
|
214,862
|
|
|
$
|
(537
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
214,862
|
|
|
$
|
(537
|
)
|
Agency residential CMOs
|
180,071
|
|
|
(572
|
)
|
|
1,456
|
|
|
(7
|
)
|
|
181,527
|
|
|
(579
|
)
|
||||||
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
|
)
|
|
March 31, 2020
|
||||||
|
Amortized
|
|
Fair
|
||||
Maturities
|
Cost
|
|
Value
|
||||
|
(In thousands)
|
||||||
Due in one year or less
|
$
|
9,898
|
|
|
$
|
10,026
|
|
Due after one year through five years
|
300,638
|
|
|
309,312
|
|
||
Due after five years through ten years
|
975,907
|
|
|
1,024,183
|
|
||
Due after ten years
|
2,345,123
|
|
|
2,414,142
|
|
||
Total securities available-for-sale
|
$
|
3,631,566
|
|
|
$
|
3,757,663
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Taxable interest
|
$
|
21,786
|
|
|
$
|
19,742
|
|
Non-taxable interest
|
5,229
|
|
|
9,593
|
|
||
Dividend income
|
431
|
|
|
345
|
|
||
Total interest income on investment securities
|
$
|
27,446
|
|
|
$
|
29,680
|
|
|
March 31,
|
|
December 31,
|
||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Real estate mortgage
|
$
|
8,018,704
|
|
|
$
|
7,982,383
|
|
Real estate construction and land
|
2,913,843
|
|
|
2,773,209
|
|
||
Commercial
|
8,443,966
|
|
|
7,714,358
|
|
||
Consumer
|
429,881
|
|
|
440,790
|
|
||
Total gross loans and leases held for investment
|
19,806,394
|
|
|
18,910,740
|
|
||
Deferred fees, net
|
(61,089
|
)
|
|
(63,868
|
)
|
||
Total loans and leases held for investment, net of deferred fees
|
19,745,305
|
|
|
18,846,872
|
|
||
Allowance for loan and lease losses
|
(221,292
|
)
|
|
(138,785
|
)
|
||
Total loans and leases held for investment, net (1)
|
$
|
19,524,013
|
|
|
$
|
18,708,087
|
|
(1)
|
Excludes accrued interest receivable of $64.4 million and $67.5 million at March 31, 2020 and December 31, 2019, respectively, that is recorded in "Other assets" on the condensed consolidated balance sheets.
|
|
March 31, 2020
|
||||||||||||||||||
|
30 - 89
|
|
90 or More
|
|
|
|
|
|
|
||||||||||
|
Days
|
|
Days
|
|
Total
|
|
|
|
|
||||||||||
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
4,569
|
|
|
$
|
6,241
|
|
|
$
|
10,810
|
|
|
$
|
4,209,839
|
|
|
$
|
4,220,649
|
|
Income producing and other residential
|
1,337
|
|
|
682
|
|
|
2,019
|
|
|
3,786,276
|
|
|
3,788,295
|
|
|||||
Total real estate mortgage
|
5,906
|
|
|
6,923
|
|
|
12,829
|
|
|
7,996,115
|
|
|
8,008,944
|
|
|||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
1,087,505
|
|
|
1,087,505
|
|
|||||
Residential
|
241
|
|
|
—
|
|
|
241
|
|
|
1,792,507
|
|
|
1,792,748
|
|
|||||
Total real estate construction and land
|
241
|
|
|
—
|
|
|
241
|
|
|
2,880,012
|
|
|
2,880,253
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
—
|
|
|
—
|
|
|
—
|
|
|
3,938,402
|
|
|
3,938,402
|
|
|||||
Venture capital
|
3,272
|
|
|
2,989
|
|
|
6,261
|
|
|
2,709,576
|
|
|
2,715,837
|
|
|||||
Other commercial
|
4,884
|
|
|
2,022
|
|
|
6,906
|
|
|
1,765,079
|
|
|
1,771,985
|
|
|||||
Total commercial
|
8,156
|
|
|
5,011
|
|
|
13,167
|
|
|
8,413,057
|
|
|
8,426,224
|
|
|||||
Consumer
|
518
|
|
|
102
|
|
|
620
|
|
|
429,264
|
|
|
429,884
|
|
|||||
Total
|
$
|
14,821
|
|
|
$
|
12,036
|
|
|
$
|
26,857
|
|
|
$
|
19,718,448
|
|
|
$
|
19,745,305
|
|
|
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
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
Nonaccrual
|
|
Performing
|
|
Total
|
|
Nonaccrual
|
|
Performing
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
19,088
|
|
|
$
|
4,201,561
|
|
|
$
|
4,220,649
|
|
|
$
|
18,346
|
|
|
$
|
4,184,341
|
|
|
$
|
4,202,687
|
|
Income producing and other residential
|
2,308
|
|
|
3,785,987
|
|
|
3,788,295
|
|
|
2,478
|
|
|
3,767,582
|
|
|
3,770,060
|
|
||||||
Total real estate mortgage
|
21,396
|
|
|
7,987,548
|
|
|
8,008,944
|
|
|
20,824
|
|
|
7,951,923
|
|
|
7,972,747
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
351
|
|
|
1,087,154
|
|
|
1,087,505
|
|
|
364
|
|
|
1,082,004
|
|
|
1,082,368
|
|
||||||
Residential
|
—
|
|
|
1,792,748
|
|
|
1,792,748
|
|
|
—
|
|
|
1,655,434
|
|
|
1,655,434
|
|
||||||
Total real estate construction and land
|
351
|
|
|
2,879,902
|
|
|
2,880,253
|
|
|
364
|
|
|
2,737,438
|
|
|
2,737,802
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-based
|
17,104
|
|
|
3,921,298
|
|
|
3,938,402
|
|
|
30,162
|
|
|
3,718,245
|
|
|
3,748,407
|
|
||||||
Venture capital
|
18,612
|
|
|
2,697,225
|
|
|
2,715,837
|
|
|
12,916
|
|
|
2,166,506
|
|
|
2,179,422
|
|
||||||
Other commercial
|
37,726
|
|
|
1,734,259
|
|
|
1,771,985
|
|
|
27,594
|
|
|
1,740,073
|
|
|
1,767,667
|
|
||||||
Total commercial
|
73,442
|
|
|
8,352,782
|
|
|
8,426,224
|
|
|
70,672
|
|
|
7,624,824
|
|
|
7,695,496
|
|
||||||
Consumer
|
413
|
|
|
429,471
|
|
|
429,884
|
|
|
493
|
|
|
440,334
|
|
|
440,827
|
|
||||||
Total
|
$
|
95,602
|
|
|
$
|
19,649,703
|
|
|
$
|
19,745,305
|
|
|
$
|
92,353
|
|
|
$
|
18,754,519
|
|
|
$
|
18,846,872
|
|
|
March 31, 2020
|
||||||||||||||
|
Classified
|
|
Special Mention
|
|
Pass
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
33,908
|
|
|
$
|
371,668
|
|
|
$
|
3,815,073
|
|
|
$
|
4,220,649
|
|
Income producing and other residential
|
7,083
|
|
|
2,491
|
|
|
3,778,721
|
|
|
3,788,295
|
|
||||
Total real estate mortgage
|
40,991
|
|
|
374,159
|
|
|
7,593,794
|
|
|
8,008,944
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
351
|
|
|
10,577
|
|
|
1,076,577
|
|
|
1,087,505
|
|
||||
Residential
|
—
|
|
|
—
|
|
|
1,792,748
|
|
|
1,792,748
|
|
||||
Total real estate construction and land
|
351
|
|
|
10,577
|
|
|
2,869,325
|
|
|
2,880,253
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
23,218
|
|
|
152,136
|
|
|
3,763,048
|
|
|
3,938,402
|
|
||||
Venture capital
|
31,110
|
|
|
173,947
|
|
|
2,510,780
|
|
|
2,715,837
|
|
||||
Other commercial
|
51,498
|
|
|
186,368
|
|
|
1,534,119
|
|
|
1,771,985
|
|
||||
Total commercial
|
105,826
|
|
|
512,451
|
|
|
7,807,947
|
|
|
8,426,224
|
|
||||
Consumer
|
537
|
|
|
1,471
|
|
|
427,876
|
|
|
429,884
|
|
||||
Total
|
$
|
147,705
|
|
|
$
|
898,658
|
|
|
$
|
18,698,942
|
|
|
$
|
19,745,305
|
|
|
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
|
|
|
At and For the Three Months Ended
|
||||||
|
March 31, 2020
|
||||||
|
Nonaccrual
|
|
Interest
|
||||
|
Recorded
|
|
Income
|
||||
|
Investment
|
|
Recognized
|
||||
|
(In thousands)
|
||||||
With An Allowance Recorded:
|
|
|
|
|
|
||
Real estate mortgage:
|
|
|
|
||||
Commercial
|
$
|
342
|
|
|
$
|
—
|
|
Income producing and other residential
|
1,534
|
|
|
—
|
|
||
Commercial:
|
|
|
|
||||
Venture capital
|
15,524
|
|
|
—
|
|
||
Other commercial
|
28,782
|
|
|
—
|
|
||
Consumer
|
413
|
|
|
—
|
|
||
With No Related Allowance Recorded:
|
|
|
|
||||
Real estate mortgage:
|
|
|
|
||||
Commercial
|
$
|
18,746
|
|
|
$
|
84
|
|
Income producing and other residential
|
774
|
|
|
—
|
|
||
Real estate construction and land:
|
|
|
|
||||
Commercial
|
351
|
|
|
—
|
|
||
Commercial:
|
|
|
|
||||
Asset based
|
17,103
|
|
|
—
|
|
||
Venture capital
|
3,089
|
|
|
—
|
|
||
Other commercial
|
8,944
|
|
|
24
|
|
||
Total Loans and Leases With and
|
|
|
|
||||
Without an Allowance Recorded:
|
|
|
|
||||
Real estate mortgage
|
$
|
21,396
|
|
|
$
|
84
|
|
Real estate construction and land
|
351
|
|
|
—
|
|
||
Commercial
|
73,442
|
|
|
24
|
|
||
Consumer
|
413
|
|
|
—
|
|
||
Total
|
$
|
95,602
|
|
|
$
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revolving
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Converted
|
|
|
||||||||||||||||||
Amortized Cost Basis
|
Term Loans by Origination Year
|
|
Revolving
|
|
to Term
|
|
|
||||||||||||||||||||||||||||
March 31, 2020
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
Loans
|
|
Loans
|
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
Real Estate Mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,151
|
|
|
$
|
10,230
|
|
|
$
|
8,439
|
|
|
$
|
54,639
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
88,459
|
|
3-4 Pass
|
257,882
|
|
|
535,541
|
|
|
729,459
|
|
|
824,199
|
|
|
372,166
|
|
|
937,158
|
|
|
66,377
|
|
|
3,832
|
|
|
3,726,614
|
|
|||||||||
5 Special mention
|
—
|
|
|
56,577
|
|
|
90,921
|
|
|
18,806
|
|
|
75,754
|
|
|
129,610
|
|
|
—
|
|
|
—
|
|
|
371,668
|
|
|||||||||
6-8 Classified
|
—
|
|
|
—
|
|
|
183
|
|
|
7,516
|
|
|
4,468
|
|
|
21,741
|
|
|
—
|
|
|
—
|
|
|
33,908
|
|
|||||||||
Total
|
$
|
257,882
|
|
|
$
|
592,118
|
|
|
$
|
835,714
|
|
|
$
|
860,751
|
|
|
$
|
460,827
|
|
|
$
|
1,143,148
|
|
|
$
|
66,377
|
|
|
$
|
3,832
|
|
|
$
|
4,220,649
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
325
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
325
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
206
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Real Estate Mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Income Producing and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
—
|
|
|
$
|
37,036
|
|
|
$
|
87,849
|
|
|
$
|
44,165
|
|
|
$
|
55,736
|
|
|
$
|
49,408
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
274,194
|
|
3-4 Pass
|
78,326
|
|
|
851,712
|
|
|
1,254,556
|
|
|
703,249
|
|
|
276,705
|
|
|
227,298
|
|
|
111,585
|
|
|
1,096
|
|
|
3,504,527
|
|
|||||||||
5 Special mention
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,300
|
|
|
191
|
|
|
2,491
|
|
|||||||||
6-8 Classified
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,588
|
|
|
112
|
|
|
1,383
|
|
|
7,083
|
|
|||||||||
Total
|
$
|
78,326
|
|
|
$
|
888,748
|
|
|
$
|
1,342,405
|
|
|
$
|
747,414
|
|
|
$
|
332,441
|
|
|
$
|
282,294
|
|
|
$
|
113,997
|
|
|
$
|
2,670
|
|
|
$
|
3,788,295
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
175
|
|
|
$
|
175
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
175
|
|
|
$
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Real Estate Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
and Land: Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
3-4 Pass
|
15,749
|
|
|
244,344
|
|
|
331,283
|
|
|
210,871
|
|
|
129,186
|
|
|
136,050
|
|
|
5,470
|
|
|
3,624
|
|
|
1,076,577
|
|
|||||||||
5 Special mention
|
—
|
|
|
—
|
|
|
10,577
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,577
|
|
|||||||||
6-8 Classified
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
|
—
|
|
|
—
|
|
|
351
|
|
|||||||||
Total
|
$
|
15,749
|
|
|
$
|
244,344
|
|
|
$
|
341,860
|
|
|
$
|
210,871
|
|
|
$
|
129,186
|
|
|
$
|
136,401
|
|
|
$
|
5,470
|
|
|
$
|
3,624
|
|
|
$
|
1,087,505
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revolving
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Converted
|
|
|
||||||||||||||||||
Amortized Cost Basis
|
Term Loans by Origination Year
|
|
Revolving
|
|
to Term
|
|
|
||||||||||||||||||||||||||||
March 31, 2020
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
Loans
|
|
Loans
|
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
Real Estate Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
and Land: Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
3-4 Pass
|
23,686
|
|
|
253,764
|
|
|
711,007
|
|
|
634,325
|
|
|
127,324
|
|
|
2,075
|
|
|
8,909
|
|
|
31,658
|
|
|
1,792,748
|
|
|||||||||
5 Special mention
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
6-8 Classified
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total
|
$
|
23,686
|
|
|
$
|
253,764
|
|
|
$
|
711,007
|
|
|
$
|
634,325
|
|
|
$
|
127,324
|
|
|
$
|
2,075
|
|
|
$
|
8,909
|
|
|
$
|
31,658
|
|
|
$
|
1,792,748
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial: Asset-Based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
10,832
|
|
|
$
|
164,402
|
|
|
$
|
188,677
|
|
|
$
|
74,590
|
|
|
$
|
150,284
|
|
|
$
|
97,445
|
|
|
$
|
701,522
|
|
|
$
|
—
|
|
|
$
|
1,387,752
|
|
3-4 Pass
|
44,396
|
|
|
202,867
|
|
|
123,136
|
|
|
39,665
|
|
|
69,392
|
|
|
66,816
|
|
|
1,806,634
|
|
|
22,390
|
|
|
2,375,296
|
|
|||||||||
5 Special mention
|
—
|
|
|
35,967
|
|
|
48,345
|
|
|
19,652
|
|
|
15,461
|
|
|
1,568
|
|
|
31,143
|
|
|
—
|
|
|
152,136
|
|
|||||||||
6-8 Classified
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,872
|
|
|
7,346
|
|
|
—
|
|
|
23,218
|
|
|||||||||
Total
|
$
|
55,228
|
|
|
$
|
403,236
|
|
|
$
|
360,158
|
|
|
$
|
133,907
|
|
|
$
|
235,137
|
|
|
$
|
181,701
|
|
|
$
|
2,546,645
|
|
|
$
|
22,390
|
|
|
$
|
3,938,402
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,550
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,550
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(323
|
)
|
|
(42
|
)
|
|
—
|
|
|
(365
|
)
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,227
|
|
|
$
|
(42
|
)
|
|
$
|
—
|
|
|
$
|
11,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial: Venture
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
—
|
|
|
$
|
4,798
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
(2
|
)
|
|
$
|
996
|
|
|
$
|
389,952
|
|
|
$
|
—
|
|
|
$
|
395,736
|
|
3-4 Pass
|
84,493
|
|
|
162,533
|
|
|
104,081
|
|
|
14,226
|
|
|
37,176
|
|
|
10,833
|
|
|
1,694,848
|
|
|
6,854
|
|
|
2,115,044
|
|
|||||||||
5 Special mention
|
1,000
|
|
|
39,663
|
|
|
36,436
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96,848
|
|
|
—
|
|
|
173,947
|
|
|||||||||
6-8 Classified
|
—
|
|
|
(822
|
)
|
|
11,167
|
|
|
6,868
|
|
|
—
|
|
|
5,967
|
|
|
7,930
|
|
|
—
|
|
|
31,110
|
|
|||||||||
Total
|
$
|
85,493
|
|
|
$
|
206,172
|
|
|
$
|
151,684
|
|
|
$
|
21,086
|
|
|
$
|
37,174
|
|
|
$
|
17,796
|
|
|
$
|
2,189,578
|
|
|
$
|
6,854
|
|
|
$
|
2,715,837
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
$
|
182
|
|
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
343
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
(119
|
)
|
|
(3
|
)
|
|
(17
|
)
|
|
—
|
|
|
(185
|
)
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83
|
|
|
$
|
(46
|
)
|
|
$
|
(126
|
)
|
|
$
|
179
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revolving
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Converted
|
|
|
||||||||||||||||||
Amortized Cost Basis
|
Term Loans by Origination Year
|
|
Revolving
|
|
to Term
|
|
|
||||||||||||||||||||||||||||
March 31, 2020
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
Loans
|
|
Loans
|
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
Commercial: Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
13
|
|
|
$
|
462
|
|
|
$
|
8
|
|
|
$
|
16,915
|
|
|
$
|
2
|
|
|
$
|
3,204
|
|
|
$
|
127,406
|
|
|
$
|
160
|
|
|
$
|
148,170
|
|
3-4 Pass
|
11,586
|
|
|
101,273
|
|
|
118,985
|
|
|
102,457
|
|
|
35,130
|
|
|
114,158
|
|
|
884,472
|
|
|
17,888
|
|
|
1,385,949
|
|
|||||||||
5 Special mention
|
—
|
|
|
89
|
|
|
—
|
|
|
694
|
|
|
2,134
|
|
|
42,241
|
|
|
141,173
|
|
|
37
|
|
|
186,368
|
|
|||||||||
6-8 Classified
|
2
|
|
|
4
|
|
|
35
|
|
|
90
|
|
|
4,325
|
|
|
10,324
|
|
|
32,565
|
|
|
4,153
|
|
|
51,498
|
|
|||||||||
Total
|
$
|
11,601
|
|
|
$
|
101,828
|
|
|
$
|
119,028
|
|
|
$
|
120,156
|
|
|
$
|
41,591
|
|
|
$
|
169,927
|
|
|
$
|
1,185,616
|
|
|
$
|
22,238
|
|
|
$
|
1,771,985
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
190
|
|
|
$
|
6,375
|
|
|
$
|
722
|
|
|
$
|
7,339
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(12
|
)
|
|
(55
|
)
|
|
(230
|
)
|
|
(100
|
)
|
|
—
|
|
|
(405
|
)
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
40
|
|
|
$
|
(55
|
)
|
|
$
|
(40
|
)
|
|
$
|
6,275
|
|
|
$
|
722
|
|
|
$
|
6,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
651
|
|
|
$
|
—
|
|
|
$
|
704
|
|
3-4 Pass
|
27,755
|
|
|
150,949
|
|
|
90,399
|
|
|
59,058
|
|
|
65,145
|
|
|
19,383
|
|
|
14,476
|
|
|
7
|
|
|
427,172
|
|
|||||||||
5 Special mention
|
—
|
|
|
276
|
|
|
564
|
|
|
175
|
|
|
186
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
1,471
|
|
|||||||||
6-8 Classified
|
—
|
|
|
39
|
|
|
19
|
|
|
—
|
|
|
62
|
|
|
364
|
|
|
11
|
|
|
42
|
|
|
537
|
|
|||||||||
Total
|
$
|
27,771
|
|
|
$
|
151,264
|
|
|
$
|
90,992
|
|
|
$
|
59,260
|
|
|
$
|
65,393
|
|
|
$
|
20,017
|
|
|
$
|
15,138
|
|
|
$
|
49
|
|
|
$
|
429,884
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
$
|
114
|
|
|
$
|
263
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
473
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
$
|
112
|
|
|
$
|
262
|
|
|
$
|
(13
|
)
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total Loans and Leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Internal risk rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-2 High pass
|
$
|
10,861
|
|
|
$
|
206,698
|
|
|
$
|
291,695
|
|
|
$
|
145,919
|
|
|
$
|
214,459
|
|
|
$
|
205,692
|
|
|
$
|
1,219,531
|
|
|
$
|
160
|
|
|
$
|
2,295,015
|
|
3-4 Pass
|
543,873
|
|
|
2,502,983
|
|
|
3,462,906
|
|
|
2,588,050
|
|
|
1,112,224
|
|
|
1,513,771
|
|
|
4,592,771
|
|
|
87,349
|
|
|
16,403,927
|
|
|||||||||
5 Special mention
|
1,000
|
|
|
132,572
|
|
|
186,843
|
|
|
39,327
|
|
|
93,535
|
|
|
173,689
|
|
|
271,464
|
|
|
228
|
|
|
898,658
|
|
|||||||||
6-8 Classified
|
2
|
|
|
(779
|
)
|
|
11,404
|
|
|
14,474
|
|
|
8,855
|
|
|
60,207
|
|
|
47,964
|
|
|
5,578
|
|
|
147,705
|
|
|||||||||
Total
|
$
|
555,736
|
|
|
$
|
2,841,474
|
|
|
$
|
3,952,848
|
|
|
$
|
2,787,770
|
|
|
$
|
1,429,073
|
|
|
$
|
1,953,359
|
|
|
$
|
6,131,730
|
|
|
$
|
93,315
|
|
|
$
|
19,745,305
|
|
Current YTD period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross charge-offs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
168
|
|
|
$
|
166
|
|
|
$
|
256
|
|
|
$
|
12,247
|
|
|
$
|
6,471
|
|
|
$
|
897
|
|
|
$
|
20,205
|
|
Gross recoveries
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(60
|
)
|
|
(175
|
)
|
|
(692
|
)
|
|
(160
|
)
|
|
—
|
|
|
(1,095
|
)
|
|||||||||
Net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
160
|
|
|
$
|
106
|
|
|
$
|
81
|
|
|
$
|
11,555
|
|
|
$
|
6,311
|
|
|
$
|
897
|
|
|
$
|
19,110
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||
|
|
|
Pre-
|
|
Post-
|
|
|
|
Pre-
|
|
Post-
|
||||||||||
|
|
|
Modification
|
|
Modification
|
|
|
|
Modification
|
|
Modification
|
||||||||||
|
Number
|
|
Outstanding
|
|
Outstanding
|
|
Number
|
|
Outstanding
|
|
Outstanding
|
||||||||||
|
of
|
|
Recorded
|
|
Recorded
|
|
of
|
|
Recorded
|
|
Recorded
|
||||||||||
Troubled Debt Restructurings
|
Loans
|
|
Investment
|
|
Investment
|
|
Loans
|
|
Investment
|
|
Investment
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
37
|
|
|
$
|
—
|
|
Income producing and other residential
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
789
|
|
|
789
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
4
|
|
|
1,741
|
|
|
1,741
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Venture capital
|
2
|
|
|
2,047
|
|
|
2,047
|
|
|
6
|
|
|
2,105
|
|
|
1,242
|
|
||||
Other commercial
|
15
|
|
|
22,165
|
|
|
20,389
|
|
|
8
|
|
|
585
|
|
|
585
|
|
||||
Total
|
21
|
|
|
$
|
25,953
|
|
|
$
|
24,177
|
|
|
18
|
|
|
$
|
3,516
|
|
|
$
|
2,616
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Component of leases receivable income:
|
|
|
|
||||
Interest income on net investments in leases
|
$
|
2,252
|
|
|
$
|
3,140
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(In thousands)
|
||||||
Net investment in direct financing leases:
|
|
|
|
||||
Lease payments receivable
|
$
|
149,740
|
|
|
$
|
147,729
|
|
Unguaranteed residual assets
|
20,459
|
|
|
20,806
|
|
||
Deferred costs and other
|
581
|
|
|
655
|
|
||
Aggregate net investment in leases
|
$
|
170,780
|
|
|
$
|
169,190
|
|
|
March 31, 2020
|
||
|
(In thousands)
|
||
Period ending December 31,
|
|
||
2020
|
$
|
53,576
|
|
2021
|
59,334
|
|
|
2022
|
23,920
|
|
|
2023
|
13,324
|
|
|
2024
|
9,691
|
|
|
2025 and thereafter
|
2,352
|
|
|
Total undiscounted cash flows
|
162,197
|
|
|
Less: Unearned income
|
(12,457
|
)
|
|
Present value of lease payments
|
$
|
149,740
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for Loan and Lease Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
$
|
44,575
|
|
|
$
|
30,544
|
|
|
$
|
61,528
|
|
|
$
|
2,138
|
|
|
$
|
138,785
|
|
Charge-offs
|
(500
|
)
|
|
—
|
|
|
(19,232
|
)
|
|
(473
|
)
|
|
(20,205
|
)
|
|||||
Recoveries
|
124
|
|
|
—
|
|
|
955
|
|
|
16
|
|
|
1,095
|
|
|||||
Net charge-offs
|
(376
|
)
|
|
—
|
|
|
(18,277
|
)
|
|
(457
|
)
|
|
(19,110
|
)
|
|||||
Provision
|
41,865
|
|
|
18,221
|
|
|
37,459
|
|
|
455
|
|
|
98,000
|
|
|||||
Cumulative effect of change in accounting
|
|
|
|
|
|
|
|
|
|
||||||||||
principle - CECL
|
5,308
|
|
|
(8,592
|
)
|
|
6,860
|
|
|
41
|
|
|
3,617
|
|
|||||
Balance, end of period
|
$
|
91,372
|
|
|
$
|
40,173
|
|
|
$
|
87,570
|
|
|
$
|
2,177
|
|
|
$
|
221,292
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Allowance by
|
|
|
|
|
|
|
|
|
|
||||||||||
Evaluation Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated
|
$
|
230
|
|
|
$
|
—
|
|
|
$
|
6,462
|
|
|
$
|
—
|
|
|
$
|
6,692
|
|
Collectively evaluated
|
$
|
91,142
|
|
|
$
|
40,173
|
|
|
$
|
81,108
|
|
|
$
|
2,177
|
|
|
$
|
214,600
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Loans and Leases by
|
|
|
|
|
|
|
|
|
|
||||||||||
Evaluation Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated
|
$
|
25,901
|
|
|
$
|
1,816
|
|
|
$
|
72,280
|
|
|
$
|
—
|
|
|
$
|
99,997
|
|
Collectively evaluated
|
7,983,043
|
|
|
2,878,437
|
|
|
8,353,944
|
|
|
429,884
|
|
|
19,645,308
|
|
|||||
Ending balance
|
$
|
8,008,944
|
|
|
$
|
2,880,253
|
|
|
$
|
8,426,224
|
|
|
$
|
429,884
|
|
|
$
|
19,745,305
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||
|
Real Estate
|
|
Construction
|
|
|
|
|
|
|
||||||||||
|
Mortgage
|
|
and Land
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Allowance for Loan and Lease Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
$
|
46,021
|
|
|
$
|
28,209
|
|
|
$
|
56,360
|
|
|
$
|
1,882
|
|
|
$
|
132,472
|
|
Charge-offs
|
(196
|
)
|
|
—
|
|
|
(3,003
|
)
|
|
(266
|
)
|
|
(3,465
|
)
|
|||||
Recoveries
|
143
|
|
|
—
|
|
|
3,106
|
|
|
25
|
|
|
3,274
|
|
|||||
Net (charge-offs) recoveries
|
(53
|
)
|
|
—
|
|
|
103
|
|
|
(241
|
)
|
|
(191
|
)
|
|||||
Provision (negative provision)
|
(214
|
)
|
|
(1,001
|
)
|
|
5,033
|
|
|
182
|
|
|
4,000
|
|
|||||
Balance, end of period
|
$
|
45,754
|
|
|
$
|
27,208
|
|
|
$
|
61,496
|
|
|
$
|
1,823
|
|
|
$
|
136,281
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Allowance by
|
|
|
|
|
|
|
|
|
|
||||||||||
Evaluation Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated
|
$
|
270
|
|
|
$
|
—
|
|
|
$
|
5,931
|
|
|
$
|
—
|
|
|
$
|
6,201
|
|
Collectively evaluated
|
$
|
45,484
|
|
|
$
|
27,208
|
|
|
$
|
55,565
|
|
|
$
|
1,823
|
|
|
$
|
130,080
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Loans and Leases by
|
|
|
|
|
|
|
|
|
|
||||||||||
Evaluation Methodology:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated
|
$
|
23,908
|
|
|
$
|
5,432
|
|
|
$
|
71,660
|
|
|
$
|
—
|
|
|
$
|
101,000
|
|
Collectively evaluated
|
8,135,550
|
|
|
2,346,292
|
|
|
7,352,694
|
|
|
372,161
|
|
|
18,206,697
|
|
|||||
Ending balance
|
$
|
8,159,458
|
|
|
$
|
2,351,724
|
|
|
$
|
7,424,354
|
|
|
$
|
372,161
|
|
|
$
|
18,307,697
|
|
|
March 31, 2020
|
||||||||||
|
Real
|
|
Business
|
|
|
||||||
|
Property
|
|
Assets
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Real estate mortgage
|
$
|
19,310
|
|
|
$
|
—
|
|
|
$
|
19,310
|
|
Real estate construction and land
|
1,816
|
|
|
—
|
|
|
1,816
|
|
|||
Commercial
|
—
|
|
|
22,530
|
|
|
22,530
|
|
|||
Total
|
$
|
21,126
|
|
|
$
|
22,530
|
|
|
$
|
43,656
|
|
|
Three Months Ended
|
||||||||||
|
March 31, 2020
|
||||||||||
|
Allowance for
|
|
Reserve for
|
|
Total
|
||||||
|
Loan and
|
|
Unfunded Loan
|
|
Allowance for
|
||||||
|
Lease Losses
|
|
Commitments
|
|
Credit Losses
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of period
|
$
|
138,785
|
|
|
$
|
35,861
|
|
|
$
|
174,646
|
|
Charge-offs
|
(20,205
|
)
|
|
—
|
|
|
(20,205
|
)
|
|||
Recoveries
|
1,095
|
|
|
—
|
|
|
1,095
|
|
|||
Net charge-offs
|
(19,110
|
)
|
|
—
|
|
|
(19,110
|
)
|
|||
Provision
|
98,000
|
|
|
14,000
|
|
|
112,000
|
|
|||
Cumulative effect of change in accounting
|
|
|
|
|
|
||||||
principle - CECL
|
3,617
|
|
|
3,710
|
|
|
7,327
|
|
|||
Balance, end of period
|
$
|
221,292
|
|
|
$
|
53,571
|
|
|
$
|
274,863
|
|
|
Three Months Ended
|
||||||||||
|
March 31, 2019
|
||||||||||
|
Allowance for
|
|
Reserve for
|
|
Total
|
||||||
|
Loan and
|
|
Unfunded Loan
|
|
Allowance for
|
||||||
|
Lease Losses
|
|
Commitments
|
|
Credit Losses
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of period
|
$
|
132,472
|
|
|
$
|
36,861
|
|
|
$
|
169,333
|
|
Charge-offs
|
(3,465
|
)
|
|
—
|
|
|
(3,465
|
)
|
|||
Recoveries
|
3,274
|
|
|
—
|
|
|
3,274
|
|
|||
Net charge-offs
|
(191
|
)
|
|
—
|
|
|
(191
|
)
|
|||
Provision
|
4,000
|
|
|
—
|
|
|
4,000
|
|
|||
Balance, end of period
|
$
|
136,281
|
|
|
$
|
36,861
|
|
|
$
|
173,142
|
|
|
March 31,
|
|
December 31,
|
||||
Property Type
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Commercial real estate
|
$
|
33
|
|
|
$
|
221
|
|
Construction and land development
|
219
|
|
|
219
|
|
||
Total other real estate owned, net
|
252
|
|
|
440
|
|
||
Other foreclosed assets
|
1,449
|
|
|
—
|
|
||
Total foreclosed assets, net
|
$
|
1,701
|
|
|
$
|
440
|
|
|
Foreclosed
|
||
|
Assets
|
||
|
(In thousands)
|
||
Balance, December 31, 2019
|
$
|
440
|
|
Transfers to foreclosed assets from loans
|
1,776
|
|
|
Provision for losses
|
(105
|
)
|
|
Reductions related to sales
|
(410
|
)
|
|
Balance, March 31, 2020
|
$
|
1,701
|
|
|
Goodwill
|
||
|
(In thousands)
|
||
Balance, December 31, 2019
|
$
|
2,548,670
|
|
Impairment
|
(1,470,000
|
)
|
|
Balance, March 31, 2020
|
$
|
1,078,670
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Gross Amount of CDI and CRI:
|
|
|
|
||||
Balance, beginning of period
|
$
|
117,573
|
|
|
$
|
119,497
|
|
Balance, end of period
|
$
|
117,573
|
|
|
$
|
119,497
|
|
Accumulated Amortization:
|
|
|
|
||||
Balance, beginning of period
|
(79,179
|
)
|
|
(62,377
|
)
|
||
Amortization
|
(3,948
|
)
|
|
(4,870
|
)
|
||
Balance, end of period
|
(83,127
|
)
|
|
(67,247
|
)
|
||
Net CDI and CRI, end of period
|
$
|
34,446
|
|
|
$
|
52,250
|
|
|
March 31,
|
|
December 31,
|
||||
Other Assets
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Cash surrender value of BOLI
|
$
|
199,962
|
|
|
$
|
199,029
|
|
LIHTC investments (1)
|
181,077
|
|
|
75,149
|
|
||
Operating lease ROU assets, net
|
124,897
|
|
|
129,301
|
|
||
Interest receivable
|
78,253
|
|
|
81,479
|
|
||
CRA investments (2)
|
66,713
|
|
|
65,152
|
|
||
Prepaid expenses
|
20,602
|
|
|
17,099
|
|
||
Taxes receivable
|
17,656
|
|
|
31,591
|
|
||
Equity investments without readily determinable fair values
|
14,914
|
|
|
14,890
|
|
||
Equity warrants (3)
|
4,290
|
|
|
3,434
|
|
||
Equity investments with readily determinable fair values
|
2,471
|
|
|
2,998
|
|
||
Other receivables/assets
|
23,106
|
|
|
16,689
|
|
||
Total other assets
|
$
|
733,941
|
|
|
$
|
636,811
|
|
(1)
|
During the first quarter of 2020, the Company increased the amount of its investment in low income housing project partnerships by $101 million representing the amount of related unfunded commitments, with an offset to a liability included in "Accrued interest payable and other liabilities" on the condensed consolidated balance sheets.
|
(2)
|
Includes equity investments without readily determinable fair values of $19.2 million and $17.8 million at March 31, 2020 and December 31, 2019.
|
(3)
|
For information regarding equity warrants, see Note 10. Derivatives.
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Operating lease expense:
|
|
|
|
||||
Fixed costs
|
$
|
8,245
|
|
|
$
|
8,302
|
|
Variable costs
|
13
|
|
|
24
|
|
||
Short-term lease costs
|
92
|
|
|
520
|
|
||
Sublease income
|
(1,016
|
)
|
|
(1,126
|
)
|
||
Net lease expense
|
$
|
7,334
|
|
|
$
|
7,720
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows from operating leases
|
$
|
8,236
|
|
|
$
|
8,242
|
|
ROU assets obtained in exchange for lease obligations:
|
|
|
|
||||
Operating leases
|
$
|
4,560
|
|
|
$
|
147,972
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in thousands)
|
||||||
Operating leases:
|
|
|
|
||||
Operating lease right-of-use assets, net
|
$
|
124,897
|
|
|
$
|
129,301
|
|
Operating lease liabilities
|
$
|
142,654
|
|
|
$
|
145,354
|
|
|
|
|
|
||||
Weighted average remaining lease term (in years)
|
5.9
|
|
|
6.1
|
|
||
Weighted average discount rate
|
2.77
|
%
|
|
2.82
|
%
|
|
March 31, 2020
|
||
|
(In thousands)
|
||
Period ending December 31,
|
|
||
2020
|
$
|
25,163
|
|
2021
|
31,675
|
|
|
2022
|
25,859
|
|
|
2023
|
22,992
|
|
|
2024
|
15,729
|
|
|
2025 and thereafter
|
34,522
|
|
|
Total operating lease liabilities
|
155,940
|
|
|
Less: Imputed interest
|
(13,286
|
)
|
|
Present value of operating lease liabilities
|
$
|
142,654
|
|
|
March 31, 2020
|
||
|
(In thousands)
|
||
Period ending December 31,
|
|
||
2020
|
$
|
31,434
|
|
2021
|
39,086
|
|
|
2022
|
33,046
|
|
|
2023
|
25,554
|
|
|
2024
|
20,903
|
|
|
2025 and thereafter
|
37,283
|
|
|
Total undiscounted cash flows
|
$
|
187,306
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
||||||
|
|
|
Average
|
|
|
|
Average
|
||||||
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
||||||
|
(Dollars in thousands)
|
||||||||||||
FHLB secured advances
|
$
|
1,904,000
|
|
|
0.51
|
%
|
|
$
|
1,318,000
|
|
|
1.66
|
%
|
FHLB unsecured overnight advance
|
141,000
|
|
|
0.11
|
%
|
|
141,000
|
|
|
1.56
|
%
|
||
AFX short-term borrowings
|
250,000
|
|
|
0.18
|
%
|
|
300,000
|
|
|
1.61
|
%
|
||
Non‑recourse debt
|
—
|
|
|
—
|
%
|
|
8
|
|
|
7.50
|
%
|
||
Total borrowings
|
$
|
2,295,000
|
|
|
0.45
|
%
|
|
$
|
1,759,008
|
|
|
1.64
|
%
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||
|
|
|
|
|
Maturity
|
|
|
|
|
|
Maturity
|
||||||
|
Balance
|
|
Rate
|
|
Date
|
|
Balance
|
|
Rate
|
|
Date
|
||||||
|
(Dollars in thousands)
|
||||||||||||||||
Overnight advance
|
$
|
1,154,000
|
|
|
0.21
|
%
|
|
4/1/2020
|
|
$
|
1,318,000
|
|
|
1.66
|
%
|
|
1/2/2020
|
Term advance
|
250,000
|
|
|
0.98
|
%
|
|
3/2/2021
|
|
—
|
|
|
—
|
%
|
|
—
|
||
Term advance
|
250,000
|
|
|
0.96
|
%
|
|
9/2/2021
|
|
—
|
|
|
—
|
%
|
|
—
|
||
Term advance
|
250,000
|
|
|
0.94
|
%
|
|
3/2/2022
|
|
—
|
|
|
—
|
%
|
|
—
|
||
Total FHLB secured advances
|
$
|
1,904,000
|
|
|
0.51
|
%
|
|
|
|
$
|
1,318,000
|
|
|
1.66
|
%
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Date
|
|
Maturity
|
|
Rate Index
|
||||||||||
Series
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Issued
|
|
Date
|
|
(Quarterly Reset)
|
||||||
|
(Dollars in thousands)
|
|
|
|
|
|
|
||||||||||||
Trust V
|
$
|
10,310
|
|
|
3.94
|
%
|
|
$
|
10,310
|
|
|
5.00
|
%
|
|
8/15/2003
|
|
9/17/2033
|
|
3-month LIBOR + 3.10
|
Trust VI
|
10,310
|
|
|
3.79
|
%
|
|
10,310
|
|
|
4.94
|
%
|
|
9/3/2003
|
|
9/15/2033
|
|
3-month LIBOR + 3.05
|
||
Trust CII
|
5,155
|
|
|
3.79
|
%
|
|
5,155
|
|
|
4.85
|
%
|
|
9/17/2003
|
|
9/17/2033
|
|
3-month LIBOR + 2.95
|
||
Trust VII
|
61,856
|
|
|
4.52
|
%
|
|
61,856
|
|
|
4.69
|
%
|
|
2/5/2004
|
|
4/23/2034
|
|
3-month LIBOR + 2.75
|
||
Trust CIII
|
20,619
|
|
|
2.43
|
%
|
|
20,619
|
|
|
3.58
|
%
|
|
8/15/2005
|
|
9/15/2035
|
|
3-month LIBOR + 1.69
|
||
Trust FCCI
|
16,495
|
|
|
2.34
|
%
|
|
16,495
|
|
|
3.49
|
%
|
|
1/25/2007
|
|
3/15/2037
|
|
3-month LIBOR + 1.60
|
||
Trust FCBI
|
10,310
|
|
|
2.29
|
%
|
|
10,310
|
|
|
3.44
|
%
|
|
9/30/2005
|
|
12/15/2035
|
|
3-month LIBOR + 1.55
|
||
Trust CS 2005-1
|
82,475
|
|
|
2.69
|
%
|
|
82,475
|
|
|
3.85
|
%
|
|
11/21/2005
|
|
12/15/2035
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2005-2
|
128,866
|
|
|
3.72
|
%
|
|
128,866
|
|
|
3.89
|
%
|
|
12/14/2005
|
|
1/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-1
|
51,545
|
|
|
3.72
|
%
|
|
51,545
|
|
|
3.89
|
%
|
|
2/22/2006
|
|
4/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-2
|
51,550
|
|
|
3.72
|
%
|
|
51,550
|
|
|
3.89
|
%
|
|
9/27/2006
|
|
10/30/2036
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-3 (1)
|
28,432
|
|
|
1.65
|
%
|
|
28,902
|
|
|
1.64
|
%
|
|
9/29/2006
|
|
10/30/2036
|
|
3-month EURIBOR + 2.05
|
||
Trust CS 2006-4
|
16,470
|
|
|
3.72
|
%
|
|
16,470
|
|
|
3.89
|
%
|
|
12/5/2006
|
|
1/30/2037
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2006-5
|
6,650
|
|
|
3.72
|
%
|
|
6,650
|
|
|
3.89
|
%
|
|
12/19/2006
|
|
1/30/2037
|
|
3-month LIBOR + 1.95
|
||
Trust CS 2007-2
|
39,177
|
|
|
3.72
|
%
|
|
39,177
|
|
|
3.89
|
%
|
|
6/13/2007
|
|
7/30/2037
|
|
3-month LIBOR + 1.95
|
||
Gross subordinated debentures
|
540,220
|
|
|
3.43
|
%
|
|
540,690
|
|
|
3.87
|
%
|
|
|
|
|
|
|
||
Unamortized discount (2)
|
(81,226
|
)
|
|
|
|
(82,481
|
)
|
|
|
|
|
|
|
|
|
||||
Net subordinated debentures
|
$
|
458,994
|
|
|
|
|
$
|
458,209
|
|
|
|
|
|
|
|
|
|
(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.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Notional
|
|
Fair
|
|
Notional
|
|
Fair
|
||||||||
Derivatives Not Designated As Hedging Instruments
|
Amount
|
|
Value
|
|
Amount
|
|
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Derivative Assets:
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
10,932
|
|
|
$
|
120
|
|
|
$
|
15,159
|
|
|
$
|
71
|
|
Foreign exchange contracts
|
90,122
|
|
|
4,826
|
|
|
91,144
|
|
|
1,163
|
|
||||
Other derivative assets
|
101,054
|
|
|
4,946
|
|
|
106,303
|
|
|
1,234
|
|
||||
Equity warrant assets
|
26,469
|
|
|
4,290
|
|
|
26,079
|
|
|
3,434
|
|
||||
Total
|
$
|
127,523
|
|
|
$
|
9,236
|
|
|
$
|
132,382
|
|
|
$
|
4,668
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
10,932
|
|
|
$
|
120
|
|
|
$
|
15,159
|
|
|
$
|
71
|
|
Foreign exchange contracts
|
90,122
|
|
|
1,032
|
|
|
91,144
|
|
|
684
|
|
||||
Total
|
$
|
101,054
|
|
|
$
|
1,152
|
|
|
$
|
106,303
|
|
|
$
|
755
|
|
|
March 31,
|
|
December 31,
|
||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Loan commitments to extend credit
|
$
|
7,697,724
|
|
|
$
|
8,183,158
|
|
Standby letters of credit
|
368,979
|
|
|
355,503
|
|
||
Commitments to contribute capital to small business
|
|
|
|
||||
investment companies and CRA-related loan pools
|
50,518
|
|
|
40,698
|
|
||
Commitments to contribute capital to low income housing
|
|
|
|
||||
project partnerships (1)
|
—
|
|
|
88,515
|
|
||
Commitments to contribute capital to private equity funds
|
50
|
|
|
50
|
|
||
Total
|
$
|
8,117,271
|
|
|
$
|
8,667,924
|
|
(1)
|
During the first quarter of 2020, the Company increased the amount of its investment in low income housing project partnerships by $101 million representing the amount of related unfunded commitments, with an offset to a liability included in "Accrued interest payable and other liabilities" on the condensed consolidated balance sheets.
|
•
|
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
|
||||||||||||||
|
March 31, 2020
|
||||||||||||||
Measured on a Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities available‑for‑sale:
|
|
|
|
|
|
|
|
||||||||
Agency commercial MBS
|
$
|
1,125,432
|
|
|
$
|
—
|
|
|
$
|
1,125,432
|
|
|
$
|
—
|
|
Agency residential CMOs
|
1,102,097
|
|
|
—
|
|
|
1,102,097
|
|
|
—
|
|
||||
Municipal securities
|
733,884
|
|
|
—
|
|
|
733,884
|
|
|
—
|
|
||||
Agency residential MBS
|
289,831
|
|
|
—
|
|
|
289,831
|
|
|
—
|
|
||||
Asset-backed securities
|
210,699
|
|
|
—
|
|
|
196,080
|
|
|
14,619
|
|
||||
Collateralized loan obligations
|
130,082
|
|
|
—
|
|
|
130,082
|
|
|
—
|
|
||||
Private label residential CMOs
|
97,862
|
|
|
—
|
|
|
92,920
|
|
|
4,942
|
|
||||
SBA securities
|
45,441
|
|
|
—
|
|
|
45,441
|
|
|
—
|
|
||||
Corporate debt securities
|
16,957
|
|
|
—
|
|
|
16,957
|
|
|
—
|
|
||||
U.S. Treasury securities
|
5,378
|
|
|
5,378
|
|
|
—
|
|
|
—
|
|
||||
Total securities available-for-sale
|
$
|
3,757,663
|
|
|
$
|
5,378
|
|
|
$
|
3,732,724
|
|
|
$
|
19,561
|
|
Equity investments with readily determinable fair values
|
$
|
2,471
|
|
|
$
|
2,471
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives (1):
|
|
|
|
|
|
|
|
||||||||
Equity warrants
|
4,290
|
|
|
—
|
|
|
—
|
|
|
4,290
|
|
||||
Other derivative assets
|
4,946
|
|
|
—
|
|
|
4,946
|
|
|
—
|
|
||||
Derivative liabilities
|
1,152
|
|
|
—
|
|
|
1,152
|
|
|
—
|
|
|
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 commercial MBS
|
$
|
1,108,224
|
|
|
$
|
—
|
|
|
$
|
1,108,224
|
|
|
$
|
—
|
|
Agency residential CMOs
|
1,136,397
|
|
|
—
|
|
|
1,136,397
|
|
|
—
|
|
||||
Municipal securities
|
735,159
|
|
|
—
|
|
|
735,159
|
|
|
—
|
|
||||
Agency residential MBS
|
305,198
|
|
|
—
|
|
|
305,198
|
|
|
—
|
|
||||
Asset-backed securities
|
214,783
|
|
|
—
|
|
|
198,348
|
|
|
16,435
|
|
||||
Collateralized loan obligations
|
123,756
|
|
|
—
|
|
|
123,756
|
|
|
—
|
|
||||
Private label residential CMOs
|
99,483
|
|
|
—
|
|
|
93,219
|
|
|
6,264
|
|
||||
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 investments with readily determinable fair values
|
$
|
2,998
|
|
|
$
|
2,998
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives (1):
|
|
|
|
|
|
|
|
||||||||
Equity warrants
|
3,434
|
|
|
—
|
|
|
—
|
|
|
3,434
|
|
||||
Other derivative assets
|
1,234
|
|
|
—
|
|
|
1,234
|
|
|
—
|
|
||||
Derivative liabilities
|
755
|
|
|
—
|
|
|
755
|
|
|
—
|
|
(1)
|
For information regarding derivative instruments, see Note 10. Derivatives.
|
|
March 31, 2020
|
||||||
|
Private Label Residential CMOs
|
|
Asset-Backed Securities
|
||||
|
|
|
Weighted
|
|
Input or
|
|
Weighted
|
|
Range
|
|
Average
|
|
Range
|
|
Average
|
Unobservable Inputs
|
of Inputs
|
|
Input (1)
|
|
of Inputs
|
|
Input (2)
|
Voluntary annual prepayment speeds (3)
|
2.1% - 19.1%
|
|
11.8%
|
|
15.0%
|
|
15.0%
|
Annual default rates (3)
|
0.3% - 35.7%
|
|
1.6%
|
|
2.0%
|
|
2.0%
|
Loss severity rates (3)
|
1.6% - 183.7%
|
|
57.0%
|
|
60.0%
|
|
60.0%
|
Discount rates
|
2.3% - 14.6%
|
|
8.1%
|
|
5.5% - 5.6%
|
|
5.5%
|
(1)
|
Unobservable inputs for private label residential CMOs were weighted by the relative fair values of the instruments.
|
(2)
|
Discount rates for asset-backed securities were weighted by the relative fair values of the instruments.
|
(3)
|
The voluntary annual prepayment speeds, annual default rates, and loss severity rates were the same for all of the asset-backed securities.
|
|
March 31, 2020
|
||
|
Equity Warrants
|
||
|
|
|
Weighted
|
|
Range
|
|
Average
|
Unobservable Inputs
|
of Inputs
|
|
Input (1)
|
Volatility
|
21.2% - 251.5%
|
|
24.9%
|
Risk-free interest rate
|
0.1% - 0.4%
|
|
0.3%
|
Remaining life assumption (in years)
|
0.08 - 4.99
|
|
3.06
|
(1)
|
Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.
|
|
Private Label
|
|
Asset-Backed
|
|
Equity
|
||||||
|
Residential CMOs
|
|
Securities
|
|
Warrants
|
||||||
|
(In thousands)
|
||||||||||
Balance, December 31, 2019
|
$
|
6,264
|
|
|
$
|
16,435
|
|
|
$
|
3,434
|
|
Total included in earnings
|
118
|
|
|
(11
|
)
|
|
837
|
|
|||
Total included in other comprehensive income
|
(959
|
)
|
|
(687
|
)
|
|
—
|
|
|||
Issuances
|
—
|
|
|
—
|
|
|
120
|
|
|||
Sales
|
—
|
|
|
—
|
|
|
(101
|
)
|
|||
Net settlements
|
(481
|
)
|
|
(1,118
|
)
|
|
—
|
|
|||
Balance, March 31, 2020
|
$
|
4,942
|
|
|
$
|
14,619
|
|
|
$
|
4,290
|
|
|
|
|
|
|
|
||||||
Unrealized net gains (losses) for the period included in other
|
|
|
|
|
|
||||||
comprehensive income for securities held at quarter-end
|
$
|
726
|
|
|
$
|
(490
|
)
|
|
|
|
Fair Value Measurement as of
|
||||||||||||||
|
March 31, 2020
|
||||||||||||||
Measured on a Non‑Recurring Basis
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(In thousands)
|
||||||||||||||
Individually evaluated loans and leases (1)
|
$
|
59,440
|
|
|
$
|
—
|
|
|
$
|
4,456
|
|
|
$
|
54,984
|
|
Total non-recurring
|
$
|
59,440
|
|
|
$
|
—
|
|
|
$
|
4,456
|
|
|
$
|
54,984
|
|
(1)
|
Includes nonaccrual loans and leases and performing TDRs with balances greater than $250,000.
|
|
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 and leases (1)
|
$
|
28,706
|
|
|
$
|
—
|
|
|
$
|
1,083
|
|
|
$
|
27,623
|
|
OREO
|
105
|
|
|
—
|
|
|
—
|
|
|
105
|
|
||||
Total non-recurring
|
$
|
28,811
|
|
|
$
|
—
|
|
|
$
|
1,083
|
|
|
$
|
27,728
|
|
|
Three Months Ended
|
||||||
Losses on Assets
|
March 31,
|
||||||
Measured on a Non‑Recurring Basis
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Individually evaluated loans and leases (1)
|
$
|
18,907
|
|
|
$
|
3,756
|
|
Loans held for sale
|
—
|
|
|
1,707
|
|
||
OREO
|
105
|
|
|
—
|
|
||
Total losses
|
$
|
19,012
|
|
|
$
|
5,463
|
|
|
|
March 31, 2020
|
||||||||||
|
|
|
|
Valuation
|
|
Unobservable
|
|
Input or
|
|
Weighted
|
||
Asset
|
|
Fair Value
|
|
Technique
|
|
Inputs
|
|
Range
|
|
Average
|
||
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
||
Individually evaluated
|
|
|
|
|
|
|
|
|
|
|
||
loans and leases
|
|
$
|
39,262
|
|
|
Discounted cash flows
|
|
Discount rates
|
|
3.50% - 10.46%
|
|
8.03%
|
Individually evaluated
|
|
|
|
|
|
Discount from
|
|
|
|
|
||
loans and leases
|
|
15,267
|
|
|
Third party appraisal
|
|
appraisal (1)
|
|
54.06%
|
|
54.06%
|
|
Individually evaluated
|
|
|
|
|
|
|
|
|
|
|
||
loans and leases
|
|
455
|
|
|
Third party appraisals
|
|
No discounts
|
|
|
|
|
|
Total non-recurring Level 3
|
|
$
|
54,984
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
||||||||||||||||||
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
172,570
|
|
|
$
|
172,570
|
|
|
$
|
172,570
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest‑earning deposits in financial institutions
|
439,690
|
|
|
439,690
|
|
|
439,690
|
|
|
—
|
|
|
—
|
|
|||||
Securities available‑for‑sale
|
3,757,663
|
|
|
3,757,663
|
|
|
5,378
|
|
|
3,732,724
|
|
|
19,561
|
|
|||||
Investment in FHLB stock
|
54,244
|
|
|
54,244
|
|
|
—
|
|
|
54,244
|
|
|
—
|
|
|||||
Loans and leases held for investment, net
|
19,524,013
|
|
|
19,072,790
|
|
|
—
|
|
|
4,456
|
|
|
19,068,334
|
|
|||||
Equity warrants
|
4,290
|
|
|
4,290
|
|
|
—
|
|
|
—
|
|
|
4,290
|
|
|||||
Other derivative assets
|
4,946
|
|
|
4,946
|
|
|
—
|
|
|
4,946
|
|
|
—
|
|
|||||
Equity investments with readily determinable fair values
|
2,471
|
|
|
2,471
|
|
|
2,471
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Core deposits
|
16,050,522
|
|
|
16,050,522
|
|
|
—
|
|
|
16,050,522
|
|
|
—
|
|
|||||
Non-core non-maturity deposits
|
836,157
|
|
|
836,157
|
|
|
—
|
|
|
836,157
|
|
|
—
|
|
|||||
Time deposits
|
2,689,158
|
|
|
2,701,350
|
|
|
—
|
|
|
2,701,350
|
|
|
—
|
|
|||||
Borrowings
|
2,295,000
|
|
|
2,299,563
|
|
|
1,545,000
|
|
|
754,563
|
|
|
—
|
|
|||||
Subordinated debentures
|
458,994
|
|
|
442,418
|
|
|
—
|
|
|
442,418
|
|
|
—
|
|
|||||
Derivative liabilities
|
1,152
|
|
|
1,152
|
|
|
—
|
|
|
1,152
|
|
|
—
|
|
|
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
|
|
|
—
|
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Dollars in thousands, except per share data)
|
||||||||||
Basic Earnings (Loss) Per Share:
|
|
|
|
|
|
||||||
Net earnings (loss)
|
$
|
(1,433,111
|
)
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
Less: Earnings allocated to unvested restricted stock(1)
|
(939
|
)
|
|
(1,458
|
)
|
|
(1,163
|
)
|
|||
Net earnings (loss) allocated to common shares
|
$
|
(1,434,050
|
)
|
|
$
|
116,423
|
|
|
$
|
111,441
|
|
|
|
|
|
|
|
||||||
Weighted-average basic shares and unvested restricted
|
|
|
|
|
|
||||||
stock outstanding
|
118,775
|
|
|
119,804
|
|
|
122,227
|
|
|||
Less: Weighted-average unvested restricted stock
|
|
|
|
|
|
||||||
outstanding
|
(1,495
|
)
|
|
(1,566
|
)
|
|
(1,352
|
)
|
|||
Weighted-average basic shares outstanding
|
117,280
|
|
|
118,238
|
|
|
120,875
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings (loss) per share
|
$
|
(12.23
|
)
|
|
$
|
0.98
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
||||||
Diluted Earnings (Loss) Per Share:
|
|
|
|
|
|
||||||
Net earnings (loss) allocated to common shares
|
$
|
(1,434,050
|
)
|
|
$
|
116,423
|
|
|
$
|
111,441
|
|
|
|
|
|
|
|
||||||
Weighted-average diluted shares outstanding
|
117,280
|
|
|
118,238
|
|
|
120,875
|
|
|||
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share
|
$
|
(12.23
|
)
|
|
$
|
0.98
|
|
|
$
|
0.92
|
|
(1)
|
Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2020
|
|
2019
|
||||||||||||
|
Total
|
|
Revenue from
|
|
Total
|
|
Revenue from
|
||||||||
|
Recorded
|
|
Contracts with
|
|
Recorded
|
|
Contracts with
|
||||||||
|
Revenue
|
|
Customers
|
|
Revenue
|
|
Customers
|
||||||||
|
(In thousands)
|
||||||||||||||
Total interest income
|
$
|
291,332
|
|
|
$
|
—
|
|
|
$
|
304,559
|
|
|
$
|
—
|
|
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
2,658
|
|
|
2,658
|
|
|
3,730
|
|
|
3,730
|
|
||||
Other commissions and fees
|
9,721
|
|
|
4,154
|
|
|
11,008
|
|
|
4,538
|
|
||||
Leased equipment income
|
12,251
|
|
|
—
|
|
|
9,282
|
|
|
—
|
|
||||
Gain on sale of loans
|
87
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Gain on sale of securities
|
182
|
|
|
—
|
|
|
2,161
|
|
|
—
|
|
||||
Other income
|
4,201
|
|
|
336
|
|
|
4,883
|
|
|
371
|
|
||||
Total noninterest income
|
29,100
|
|
|
7,148
|
|
|
31,064
|
|
|
8,639
|
|
||||
Total revenue
|
$
|
320,432
|
|
|
$
|
7,148
|
|
|
$
|
335,623
|
|
|
$
|
8,639
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Products and services transferred at a point in time
|
$
|
4,236
|
|
|
$
|
4,546
|
|
Products and services transferred over time
|
2,912
|
|
|
4,093
|
|
||
Total revenue from contracts with customers
|
$
|
7,148
|
|
|
$
|
8,639
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(In thousands)
|
||||||
Receivables, which are included in "Other assets"
|
$
|
447
|
|
|
$
|
1,094
|
|
Contract assets, which are included in "Other assets"
|
$
|
—
|
|
|
$
|
—
|
|
Contract liabilities, which are included in "Accrued interest payable and other liabilities"
|
$
|
457
|
|
|
$
|
490
|
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2020-01, "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)"
|
|
This Update clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815.
|
|
January 1, 2021
|
|
The adoption of this guidance is not expected to have a material impact on the Company's condensed consolidated financial statements.
|
|
|
|
|
Effective
|
|
Effect on the Financial Statements
|
Standard
|
|
Description
|
|
Date
|
|
or Other Significant Matters
|
ASU 2020-04, "Reference Rate Reform (Topic 848)"
|
|
This Update provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other agreements affected by the anticipated transition away from LIBOR toward new interest reference rates. For agreements that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered “minor” so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. This Update also provides numerous optional expedients for derivative accounting. An entity may elect to apply this Update for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. We anticipate that ASU 2020-04 will simplify any modifications we execute between the selected start date (not yet determined) and December 31, 2022 that are directly related to LIBOR transition.
|
|
March 12, 2020 through December 31, 2022
|
|
The adoption of this guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements.
|
•
|
the COVID-19 pandemic is adversely affecting the Company, its employees, customers and third-party service providers, and the ultimate extent of the impacts of the pandemic and related government stimulus programs on its business, financial position, results of operations, liquidity and prospects is uncertain. Continued deterioration in general business and economic conditions could adversely affect the Company’s revenues and the values of its assets and liabilities, lead to a tightening of credit and increase stock price volatility;
|
•
|
our ability to complete future acquisitions, and to successfully integrate such acquired entities or achieve expected benefits, synergies and/or operating efficiencies within expected time frames or at all;
|
•
|
our ability to compete effectively against other financial service providers in our markets;
|
•
|
the impact of changes in interest rates or levels of market activity, especially on the fair value of our loan and investment portfolios;
|
•
|
deterioration, weaker than expected improvement, or other changes in the state of the economy or the markets in which we conduct business (including the levels of IPOs and mergers and acquisitions), which may affect the ability of borrowers to repay their loans and the value of real property or other property held as collateral for such loans;
|
•
|
changes in credit quality and the effect of credit quality and the CECL accounting standard on our provision for credit losses and allowance for loan and lease losses;
|
•
|
our ability to attract deposits and other sources of funding or liquidity;
|
•
|
the need to retain capital for strategic or regulatory reasons;
|
•
|
compression of the net interest margin due to changes in the interest rate environment, forward yield curves, loan products offered, spreads on newly originated loans and leases, changes in our asset or liability mix, and/or changes to the cost of deposits and borrowings;
|
•
|
uncertainty regarding the future of LIBOR and the potential transition away from LIBOR toward new reference rates;
|
•
|
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;
|
•
|
our ability to successfully execute on initiatives relating to enhancements of our technology infrastructure, including client-facing systems and applications;
|
•
|
legislative or regulatory requirements or changes, including an increase of capital requirements, and increased political and regulatory uncertainty;
|
•
|
the impact on our reputation and business from our interactions with business partners, counterparties, service providers and other third parties;
|
•
|
higher than anticipated increases in operating expenses;
|
•
|
lower than expected dividends paid from the Bank to the holding company;
|
•
|
the amount and exact timing of any common stock repurchases will depend upon market conditions and other factors;
|
•
|
a deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge;
|
•
|
the effectiveness of our risk management framework and quantitative models;
|
•
|
the costs and effects of legal, compliance, and regulatory actions, changes and developments, including the impact of adverse judgments or settlements in litigation, the initiation and resolution of regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews;
|
•
|
the impact of changes made to tax laws or regulations affecting our business, including the disallowance of tax benefits by tax authorities and/or changes in tax filing jurisdictions or entity classifications; and
|
•
|
our success at managing risks involved in the foregoing items and all other risk factors described in our audited consolidated financial statements, and other risk factors described in this Form 10-Q and other documents filed or furnished by PacWest with the SEC.
|
|
March 31, 2020
|
|||||||||||||||||
|
|
|
Special
|
|
|
|
|
|
% of Total
|
|||||||||
Loan and Lease Portfolio
|
Classified
|
|
Mention
|
|
Pass
|
|
Total
|
|
Loans
|
|||||||||
|
(Dollars in millions)
|
|||||||||||||||||
Hotel
|
$
|
2
|
|
|
$
|
304
|
|
|
$
|
779
|
|
|
$
|
1,085
|
|
|
5.5
|
%
|
Retail
|
5
|
|
|
48
|
|
|
590
|
|
|
643
|
|
|
3.3
|
%
|
||||
Aviation
|
—
|
|
|
119
|
|
|
227
|
|
|
346
|
|
|
1.8
|
%
|
||||
Restaurant
|
10
|
|
|
5
|
|
|
147
|
|
|
162
|
|
|
0.8
|
%
|
||||
Oil services
|
15
|
|
|
1
|
|
|
121
|
|
|
137
|
|
|
0.7
|
%
|
||||
Total
|
$
|
32
|
|
|
$
|
477
|
|
|
$
|
1,864
|
|
|
$
|
2,373
|
|
|
12.1
|
%
|
|
|
Three Months Ended
|
||||||||||
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Efficiency Ratio
|
2020
|
|
2019
|
|
2019
|
|||||||
|
|
(Dollars in thousands)
|
||||||||||
Noninterest expense
|
$
|
1,587,970
|
|
|
$
|
123,728
|
|
|
$
|
126,287
|
|
|
Less:
|
Intangible asset amortization
|
3,948
|
|
|
4,153
|
|
|
4,870
|
|
|||
|
Foreclosed assets expense (income), net
|
66
|
|
|
(3,446
|
)
|
|
29
|
|
|||
|
Goodwill impairment
|
1,470,000
|
|
|
—
|
|
|
—
|
|
|||
|
Acquisition, integration and reorganization costs
|
—
|
|
|
(269
|
)
|
|
618
|
|
|||
Noninterest expense used for efficiency ratio
|
$
|
113,956
|
|
|
$
|
123,290
|
|
|
$
|
120,770
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income (tax equivalent)
|
$
|
251,428
|
|
|
$
|
248,374
|
|
|
$
|
256,052
|
|
|
Noninterest income
|
29,100
|
|
|
27,176
|
|
|
31,064
|
|
||||
Net revenues
|
280,528
|
|
|
275,550
|
|
|
287,116
|
|
||||
Less:
|
Gain on sale of securities
|
182
|
|
|
184
|
|
|
2,161
|
|
|||
Net revenues used for efficiency ratio
|
$
|
280,346
|
|
|
$
|
275,366
|
|
|
$
|
284,955
|
|
|
|
|
|
|
|
|
|
||||||
Efficiency ratio
|
40.6
|
%
|
|
44.8
|
%
|
|
42.4
|
%
|
•
|
Return on average tangible equity, tangible common equity ratio, and tangible book value per share: Given that the use of these measures is prevalent among banking regulators, investors and analysts, we disclose them in addition to the related GAAP measures of return on average equity, equity to assets ratio, and book value per share, respectively. The reconciliations of these non-GAAP measurements to the GAAP measurements are presented in the following tables for and as of the periods presented.
|
|
|
|
Three Months Ended
|
||||||||||
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Return on Average Tangible Equity
|
2020
|
|
2019
|
|
2019
|
||||||||
|
|
|
(Dollars in thousands)
|
||||||||||
Net earnings (loss)
|
|
$
|
(1,433,111
|
)
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
|
Add:
|
Intangible asset amortization
|
|
3,948
|
|
|
—
|
|
|
—
|
|
|||
|
Goodwill impairment
|
|
1,470,000
|
|
|
—
|
|
|
—
|
|
|||
|
Adjusted net earnings used for return on average tangible equity
|
$
|
40,837
|
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
|
|
|
|
|
|
|
|
|
||||||
Average stockholders' equity
|
|
$
|
4,956,778
|
|
|
$
|
4,930,182
|
|
|
$
|
4,815,965
|
|
|
Less:
|
Average intangible assets
|
|
2,569,189
|
|
|
2,589,217
|
|
|
2,603,842
|
|
|||
Average tangible common equity
|
|
$
|
2,387,589
|
|
|
$
|
2,340,965
|
|
|
$
|
2,212,123
|
|
|
|
|
|
|
|
|
|
|
||||||
Return on average equity (1)
|
|
(116.28
|
)%
|
|
9.49
|
%
|
|
9.48
|
%
|
||||
Return on average tangible equity (2)
|
|
6.88
|
%
|
|
19.98
|
%
|
|
20.64
|
%
|
(1)
|
Annualized net earnings (loss) divided by average stockholders' equity.
|
(2)
|
Annualized adjusted net earnings divided by average tangible common equity.
|
Tangible Common Equity Ratio/
|
March 31,
|
|
December 31,
|
||||
Tangible Book Value Per Share
|
2020
|
|
2019
|
||||
|
(Dollars in thousands, except per share data)
|
||||||
Stockholders’ equity
|
$
|
3,390,389
|
|
|
$
|
4,954,697
|
|
Less: Intangible assets
|
1,113,116
|
|
|
2,587,064
|
|
||
Tangible common equity
|
$
|
2,277,273
|
|
|
$
|
2,367,633
|
|
|
|
|
|
||||
Total assets
|
$
|
26,143,267
|
|
|
$
|
26,770,806
|
|
Less: Intangible assets
|
1,113,116
|
|
|
2,587,064
|
|
||
Tangible assets
|
$
|
25,030,151
|
|
|
$
|
24,183,742
|
|
|
|
|
|
||||
Equity to assets ratio
|
12.97
|
%
|
|
18.51
|
%
|
||
Tangible common equity ratio (1)
|
9.10
|
%
|
|
9.79
|
%
|
||
Book value per share
|
$
|
28.75
|
|
|
$
|
41.36
|
|
Tangible book value per share (2)
|
$
|
19.31
|
|
|
$
|
19.77
|
|
Shares outstanding
|
117,916,789
|
|
|
119,781,605
|
|
(1)
|
Tangible common equity divided by tangible assets.
|
(2)
|
Tangible common equity divided by shares outstanding.
|
•
|
Adjusted net earnings and adjusted earnings per share: These non-GAAP measurements are presented in the following tables for the periods presented. See Note 13. Earnings (Loss) Per Share for the GAAP calculation of earnings per share.
|
|
|
|
Three Months Ended
|
||||||||||
Adjusted Net Earnings and
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|||||||
Adjusted Earnings Per Share
|
|
2020
|
|
2019
|
|
2019
|
|||||||
|
|
|
(Dollars in thousands)
|
||||||||||
Adjusted Net Earnings:
|
|
|
|
|
|
|
|||||||
Net earnings (loss)
|
|
$
|
(1,433,111
|
)
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
|
Add:
|
Goodwill impairment
|
|
1,470,000
|
|
|
—
|
|
|
—
|
|
|||
|
Adjusted net earnings
|
|
$
|
36,889
|
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted Basic Earnings Per Share:
|
|
|
|
|
|
||||||||
Adjusted net earnings
|
$
|
36,889
|
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
||
Less:
|
Earnings allocated to unvested restricted
|
|
|
|
|
|
|||||||
|
stock
|
|
(939
|
)
|
|
(1,458
|
)
|
|
(1,163
|
)
|
|||
Adjusted net earnings allocated to common shares
|
$
|
35,950
|
|
|
$
|
116,423
|
|
|
$
|
111,441
|
|
||
|
|
|
|
|
|
|
|
||||||
Weighted-average basic shares and unvested restricted
|
|
|
|
|
|
||||||||
|
stock outstanding
|
|
118,775
|
|
|
119,804
|
|
|
122,227
|
|
|||
Less:
|
Weighted-average unvested restricted
|
|
|
|
|
|
|||||||
|
stock outstanding
|
|
(1,495
|
)
|
|
(1,566
|
)
|
|
(1,352
|
)
|
|||
Weighted-average basic shares outstanding
|
117,280
|
|
|
118,238
|
|
|
120,875
|
|
|||||
|
|
|
|
|
|
|
|
||||||
Adjusted basic earnings per share
|
$
|
0.31
|
|
|
$
|
0.98
|
|
|
$
|
0.92
|
|
||
|
|
|
|
|
|
|
|
||||||
Adjusted Diluted Earnings Per Share:
|
|
|
|
|
|
||||||||
Adjusted net earnings allocated to common shares
|
$
|
35,950
|
|
|
$
|
116,423
|
|
|
$
|
111,441
|
|
||
|
|
|
|
|
|
|
|
||||||
Weighted-average diluted shares outstanding
|
117,280
|
|
|
118,238
|
|
|
120,875
|
|
|||||
|
|
|
|
|
|
|
|
||||||
Adjusted diluted earnings per share
|
$
|
0.31
|
|
|
$
|
0.98
|
|
|
$
|
0.92
|
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Dollars in thousands, except per share data)
|
||||||||||
Earnings Summary:
|
|
|
|
|
|
||||||
Net interest income
|
$
|
249,747
|
|
|
$
|
246,619
|
|
|
$
|
254,876
|
|
Provision for credit losses
|
(112,000
|
)
|
|
(3,000
|
)
|
|
(4,000
|
)
|
|||
Noninterest income
|
29,100
|
|
|
27,176
|
|
|
31,064
|
|
|||
Noninterest expense
|
(1,587,970
|
)
|
|
(123,728
|
)
|
|
(126,287
|
)
|
|||
Earnings (loss) before income taxes
|
(1,421,123
|
)
|
|
147,067
|
|
|
155,653
|
|
|||
Income tax expense
|
(11,988
|
)
|
|
(29,186
|
)
|
|
(43,049
|
)
|
|||
Net earnings (loss)
|
$
|
(1,433,111
|
)
|
|
$
|
117,881
|
|
|
$
|
112,604
|
|
|
|
|
|
|
|
||||||
Performance Measures:
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share
|
$
|
(12.23
|
)
|
|
$
|
0.98
|
|
|
$
|
0.92
|
|
Annualized return on:
|
|
|
|
|
|
||||||
Average assets
|
(21.27
|
)%
|
|
1.77
|
%
|
|
1.77
|
%
|
|||
Average tangible equity (1)(2)
|
6.88
|
%
|
|
19.98
|
%
|
|
20.64
|
%
|
|||
Net interest margin (tax equivalent)
|
4.31
|
%
|
|
4.33
|
%
|
|
4.69
|
%
|
|||
Yield on average loans and leases (tax equivalent)
|
5.54
|
%
|
|
5.67
|
%
|
|
6.16
|
%
|
|||
Cost of average total deposits
|
0.59
|
%
|
|
0.71
|
%
|
|
0.73
|
%
|
|||
Efficiency ratio
|
40.6
|
%
|
|
44.8
|
%
|
|
42.4
|
%
|
(1)
|
Calculation reduces average stockholder's equity by average intangible assets.
|
(2)
|
See "- Non-GAAP Measurements."
|
(1)
|
Includes nonaccrual loans and leases and loan fees. Includes tax-equivalent adjustments related to tax-exempt interest on loans.
|
(2)
|
Tax equivalent.
|
(3)
|
Includes discount accretion on acquired loans of $4.8 million, $3.0 million, and $3.0 million for the three months ended March 31, 2020, December 31, 2019, and March 31, 2019, respectively.
|
(4)
|
Includes tax-equivalent adjustments of $1.2 million, $1.4 million, and $0.9 million for the three months ended March 31, 2020, December 31, 2019, and March 31, 2019, respectively, related to tax-exempt income on investment securities. The federal statutory tax rate utilized was 21%.
|
(5)
|
Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Dollars in thousands)
|
||||||||||
Provision For Credit Losses:
|
|
|
|
|
|
||||||
Addition to allowance for loan and lease losses
|
$
|
98,000
|
|
|
$
|
1,000
|
|
|
$
|
4,000
|
|
Addition to reserve for unfunded
|
|
|
|
|
|
||||||
loan commitments
|
14,000
|
|
|
2,000
|
|
|
—
|
|
|||
Total provision for credit losses
|
$
|
112,000
|
|
|
$
|
3,000
|
|
|
$
|
4,000
|
|
|
|
|
|
|
|
||||||
Credit Quality Metrics:
|
|
|
|
|
|
||||||
Net charge‑offs on loans and leases held for
|
|
|
|
|
|
||||||
investment (1)
|
$
|
19,110
|
|
|
$
|
767
|
|
|
$
|
191
|
|
Annualized net charge‑offs to average loans and leases
|
0.40
|
%
|
|
0.02
|
%
|
|
—
|
%
|
|||
At quarter-end:
|
|
|
|
|
|
||||||
Allowance for credit losses
|
$
|
274,863
|
|
|
$
|
174,646
|
|
|
$
|
173,142
|
|
Allowance for credit losses to loans and leases
|
|
|
|
|
|
||||||
held for investment
|
1.39
|
%
|
|
0.93
|
%
|
|
0.95
|
%
|
|||
Allowance for credit losses to nonaccrual
|
|
|
|
|
|
||||||
loans and leases held for investment
|
287.5
|
%
|
|
189.1
|
%
|
|
195.6
|
%
|
|||
|
|
|
|
|
|
||||||
Nonaccrual loans and leases held for investment
|
$
|
95,602
|
|
|
$
|
92,353
|
|
|
$
|
88,527
|
|
Performing TDRs held for investment
|
$
|
8,978
|
|
|
$
|
12,257
|
|
|
$
|
17,027
|
|
Classified loans and leases held for investment
|
$
|
147,705
|
|
|
$
|
175,912
|
|
|
$
|
190,305
|
|
(1)
|
See "- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment" for detail of charge-offs and recoveries by loan portfolio segment, class, and subclass for the periods presented.
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Noninterest Income
|
2020
|
|
2019
|
|
2019
|
||||||
|
(In thousands)
|
||||||||||
Leased equipment income
|
$
|
12,251
|
|
|
$
|
10,648
|
|
|
$
|
9,282
|
|
Other commissions and fees
|
9,721
|
|
|
10,170
|
|
|
11,008
|
|
|||
Service charges on deposit accounts
|
2,658
|
|
|
3,611
|
|
|
3,730
|
|
|||
Gain on sale of loans and leases
|
87
|
|
|
23
|
|
|
—
|
|
|||
Gain on sale of securities
|
182
|
|
|
184
|
|
|
2,161
|
|
|||
Other income:
|
|
|
|
|
|
||||||
Dividends and gains (losses) on equity investments
|
28
|
|
|
(794
|
)
|
|
296
|
|
|||
Warrant income
|
837
|
|
|
1,240
|
|
|
2,279
|
|
|||
Other
|
3,336
|
|
|
2,094
|
|
|
2,308
|
|
|||
Total noninterest income
|
$
|
29,100
|
|
|
$
|
27,176
|
|
|
$
|
31,064
|
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Noninterest Expense
|
2020
|
|
2019
|
|
2019
|
||||||
|
(In thousands)
|
||||||||||
Compensation
|
$
|
61,282
|
|
|
$
|
74,637
|
|
|
$
|
70,845
|
|
Occupancy
|
14,207
|
|
|
14,541
|
|
|
14,320
|
|
|||
Leased equipment depreciation
|
7,205
|
|
|
6,856
|
|
|
5,651
|
|
|||
Data processing
|
6,454
|
|
|
6,770
|
|
|
6,925
|
|
|||
Other professional services
|
4,258
|
|
|
4,261
|
|
|
4,513
|
|
|||
Insurance and assessments
|
4,249
|
|
|
4,168
|
|
|
4,038
|
|
|||
Intangible asset amortization
|
3,948
|
|
|
4,153
|
|
|
4,870
|
|
|||
Customer related expense
|
3,932
|
|
|
3,952
|
|
|
2,943
|
|
|||
Loan expense
|
2,650
|
|
|
2,967
|
|
|
2,885
|
|
|||
Foreclosed assets expense (income), net
|
66
|
|
|
(3,446
|
)
|
|
29
|
|
|||
Acquisition, integration and reorganization costs
|
—
|
|
|
(269
|
)
|
|
618
|
|
|||
Other
|
9,719
|
|
|
5,138
|
|
|
8,650
|
|
|||
Total operating expense
|
117,970
|
|
|
123,728
|
|
|
126,287
|
|
|||
Goodwill impairment
|
1,470,000
|
|
|
—
|
|
|
—
|
|
|||
Total noninterest expense
|
$
|
1,587,970
|
|
|
$
|
123,728
|
|
|
$
|
126,287
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||
|
Fair
|
|
% of
|
|
Duration
|
|
Fair
|
|
% of
|
|
Duration
|
||||||||
Security Type
|
Value
|
|
Total
|
|
(in years)
|
|
Value
|
|
Total
|
|
(in years)
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Agency commercial MBS
|
$
|
1,125,432
|
|
|
30
|
%
|
|
3.1
|
|
|
$
|
1,108,224
|
|
|
29
|
%
|
|
4.4
|
|
Agency residential CMOs
|
1,102,097
|
|
|
29
|
%
|
|
2.8
|
|
|
1,136,397
|
|
|
30
|
%
|
|
3.7
|
|
||
Municipal securities
|
733,884
|
|
|
20
|
%
|
|
6.7
|
|
|
735,159
|
|
|
19
|
%
|
|
7.6
|
|
||
Agency residential MBS
|
289,831
|
|
|
8
|
%
|
|
2.6
|
|
|
305,198
|
|
|
8
|
%
|
|
3.3
|
|
||
Asset-backed securities
|
210,699
|
|
|
6
|
%
|
|
0.8
|
|
|
214,783
|
|
|
6
|
%
|
|
1.1
|
|
||
Collateralized loan obligations
|
130,082
|
|
|
3
|
%
|
|
(0.2
|
)
|
|
123,756
|
|
|
3
|
%
|
|
0.2
|
|
||
Private label residential CMOs
|
97,862
|
|
|
3
|
%
|
|
2.4
|
|
|
99,483
|
|
|
3
|
%
|
|
3.2
|
|
||
SBA securities
|
45,441
|
|
|
1
|
%
|
|
3.1
|
|
|
48,258
|
|
|
1
|
%
|
|
4.0
|
|
||
Corporate debt securities
|
16,957
|
|
|
—
|
%
|
|
9.4
|
|
|
20,748
|
|
|
1
|
%
|
|
11.3
|
|
||
U.S. Treasury securities
|
5,378
|
|
|
—
|
%
|
|
1.9
|
|
|
5,181
|
|
|
—
|
%
|
|
3.2
|
|
||
Total securities available-for-sale
|
$
|
3,757,663
|
|
|
100
|
%
|
|
3.5
|
|
|
$
|
3,797,187
|
|
|
100
|
%
|
|
4.4
|
|
|
March 31, 2020
|
|||||
|
Fair
|
|
% of
|
|||
Municipal Securities by State
|
Value
|
|
Total
|
|||
|
(Dollars in thousands)
|
|||||
California
|
$
|
233,708
|
|
|
32
|
%
|
Washington
|
114,871
|
|
|
16
|
%
|
|
New York
|
51,737
|
|
|
7
|
%
|
|
Texas
|
40,508
|
|
|
6
|
%
|
|
Utah
|
37,131
|
|
|
5
|
%
|
|
Oregon
|
30,864
|
|
|
4
|
%
|
|
Florida
|
27,757
|
|
|
4
|
%
|
|
Illinois
|
24,872
|
|
|
3
|
%
|
|
District of Columbia
|
17,552
|
|
|
2
|
%
|
|
Ohio
|
17,417
|
|
|
2
|
%
|
|
Total of ten largest states
|
596,417
|
|
|
81
|
%
|
|
All other states
|
137,467
|
|
|
19
|
%
|
|
Total municipal securities
|
$
|
733,884
|
|
|
100
|
%
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
|
|
% of
|
|
|
|
% of
|
||||||
Loan and Lease Portfolio
|
Balance
|
|
Total
|
|
Balance
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
||||||
Healthcare real estate
|
$
|
290,636
|
|
|
1
|
%
|
|
$
|
334,070
|
|
|
2
|
%
|
Hotel
|
621,375
|
|
|
3
|
%
|
|
625,798
|
|
|
3
|
%
|
||
SBA program
|
560,384
|
|
|
3
|
%
|
|
556,889
|
|
|
3
|
%
|
||
Other commercial real estate
|
2,748,254
|
|
|
14
|
%
|
|
2,685,930
|
|
|
14
|
%
|
||
Total commercial real estate mortgage
|
4,220,649
|
|
|
21
|
%
|
|
4,202,687
|
|
|
22
|
%
|
||
Income producing and other residential
|
3,688,642
|
|
|
19
|
%
|
|
3,665,790
|
|
|
19
|
%
|
||
Other residential real estate
|
99,653
|
|
|
—
|
%
|
|
104,270
|
|
|
1
|
%
|
||
Total income producing and other
|
|
|
|
|
|
|
|
||||||
residential real estate mortgage
|
3,788,295
|
|
|
19
|
%
|
|
3,770,060
|
|
|
20
|
%
|
||
Total real estate mortgage
|
8,008,944
|
|
|
40
|
%
|
|
7,972,747
|
|
|
42
|
%
|
||
Real estate construction and land:
|
|
|
|
|
|
|
|
||||||
Commercial
|
1,087,505
|
|
|
6
|
%
|
|
1,082,368
|
|
|
6
|
%
|
||
Residential
|
1,792,748
|
|
|
9
|
%
|
|
1,655,434
|
|
|
9
|
%
|
||
Total real estate construction and land (1)
|
2,880,253
|
|
|
15
|
%
|
|
2,737,802
|
|
|
15
|
%
|
||
Total real estate
|
10,889,197
|
|
|
55
|
%
|
|
10,710,549
|
|
|
57
|
%
|
||
Commercial:
|
|
|
|
|
|
|
|
||||||
Lender finance & timeshare
|
2,293,613
|
|
|
12
|
%
|
|
2,118,767
|
|
|
11
|
%
|
||
Equipment finance
|
822,491
|
|
|
4
|
%
|
|
852,278
|
|
|
5
|
%
|
||
Premium finance
|
490,439
|
|
|
2
|
%
|
|
467,469
|
|
|
2
|
%
|
||
Other asset-based
|
331,859
|
|
|
2
|
%
|
|
309,893
|
|
|
2
|
%
|
||
Total asset-based
|
3,938,402
|
|
|
20
|
%
|
|
3,748,407
|
|
|
20
|
%
|
||
Equity fund loans
|
1,402,464
|
|
|
7
|
%
|
|
1,199,268
|
|
|
6
|
%
|
||
Early stage
|
242,106
|
|
|
1
|
%
|
|
212,509
|
|
|
1
|
%
|
||
Expansion stage
|
934,420
|
|
|
5
|
%
|
|
693,459
|
|
|
4
|
%
|
||
Late stage
|
136,847
|
|
|
1
|
%
|
|
74,186
|
|
|
1
|
%
|
||
Total venture capital
|
2,715,837
|
|
|
14
|
%
|
|
2,179,422
|
|
|
12
|
%
|
||
Secured business loans
|
667,439
|
|
|
3
|
%
|
|
583,300
|
|
|
3
|
%
|
||
Security monitoring
|
539,038
|
|
|
3
|
%
|
|
619,260
|
|
|
3
|
%
|
||
Other lending
|
527,281
|
|
|
3
|
%
|
|
527,049
|
|
|
3
|
%
|
||
Cash flow
|
38,227
|
|
|
—
|
%
|
|
38,058
|
|
|
—
|
%
|
||
Total other commercial
|
1,771,985
|
|
|
9
|
%
|
|
1,767,667
|
|
|
9
|
%
|
||
Total commercial
|
8,426,224
|
|
|
43
|
%
|
|
7,695,496
|
|
|
41
|
%
|
||
Consumer
|
429,884
|
|
|
2
|
%
|
|
440,827
|
|
|
2
|
%
|
||
Total loans and leases held for investment,
|
|
|
|
|
|
|
|
||||||
net of deferred fees
|
$
|
19,745,305
|
|
|
100
|
%
|
|
$
|
18,846,872
|
|
|
100
|
%
|
(1)
|
Includes $169.4 million and $173.4 million at March 31, 2020 and December 31, 2019 of land, acquisition and development loans.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
|
|
% of
|
|
|
|
% of
|
||||||
Real Estate Loans by State
|
Balance
|
|
Total
|
|
Balance
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||||
California
|
$
|
6,649,654
|
|
|
61
|
%
|
|
$
|
6,510,094
|
|
|
61
|
%
|
New York
|
712,140
|
|
|
7
|
%
|
|
711,301
|
|
|
7
|
%
|
||
Florida
|
575,755
|
|
|
5
|
%
|
|
598,561
|
|
|
6
|
%
|
||
Washington
|
336,800
|
|
|
3
|
%
|
|
324,588
|
|
|
3
|
%
|
||
Oregon
|
295,337
|
|
|
3
|
%
|
|
288,764
|
|
|
3
|
%
|
||
Colorado
|
274,918
|
|
|
3
|
%
|
|
126,370
|
|
|
1
|
%
|
||
Texas
|
243,890
|
|
|
2
|
%
|
|
260,513
|
|
|
2
|
%
|
||
District of Columbia
|
167,599
|
|
|
2
|
%
|
|
166,641
|
|
|
2
|
%
|
||
Arizona
|
161,053
|
|
|
1
|
%
|
|
162,317
|
|
|
1
|
%
|
||
Pennsylvania
|
143,411
|
|
|
1
|
%
|
|
142,684
|
|
|
1
|
%
|
||
Total of 10 largest states
|
9,560,557
|
|
|
88
|
%
|
|
9,291,833
|
|
|
87
|
%
|
||
All other states
|
1,328,640
|
|
|
12
|
%
|
|
1,418,716
|
|
|
13
|
%
|
||
Total real estate loans held for investment, net of deferred fees
|
$
|
10,889,197
|
|
|
100
|
%
|
|
$
|
10,710,549
|
|
|
100
|
%
|
(1)
|
Includes direct financing leases but excludes equipment leased to others under operating leases.
|
(2)
|
The weighted average rate on production presents contractual rates on a tax equivalent basis and does not include amortized fees. Amortized fees added approximately 20 basis points to loan yields for the three months ended March 31, 2020.
|
•
|
High Pass: (Risk ratings 1-2) Loans and leases rated as "high pass" exhibit a favorable credit profile and have minimal risk characteristics. Repayment in full is expected, even in adverse economic conditions.
|
•
|
Pass: (Risk ratings 3-4) Loans and leases rated as "pass" are not adversely classified and collection and repayment in full are expected.
|
•
|
Special Mention: (Risk rating 5) 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: (Risk rating 6) 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: (Risk rating 7) 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.
|
•
|
legal and regulatory matters that could impact our borrowers’ ability to repay our loans and leases;
|
•
|
loan and lease portfolio composition and any loan concentrations;
|
•
|
current lending policies and the effects of any new policies or policy amendments;
|
•
|
loan and lease production volume and mix;
|
•
|
loan and lease portfolio credit performance trends;
|
•
|
results of independent credit review; and
|
•
|
changes in management related to credit administration functions.
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Allowance for Credit Losses Data
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Dollars in thousands)
|
||||||||||
Allowance for loan and lease losses
|
$
|
221,292
|
|
|
$
|
138,785
|
|
|
$
|
136,281
|
|
Reserve for unfunded loan commitments
|
53,571
|
|
|
35,861
|
|
|
36,142
|
|
|||
Total allowance for credit losses
|
$
|
274,863
|
|
|
$
|
174,646
|
|
|
$
|
172,423
|
|
|
|
|
|
|
|
||||||
Allowance for credit losses to loans and leases held for investment
|
1.39
|
%
|
|
0.93
|
%
|
|
0.95
|
%
|
|||
Allowance for credit losses to nonaccrual loans and leases held for investment
|
287.5
|
%
|
|
189.1
|
%
|
|
195.6
|
%
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Allowance for Credit Losses Roll Forward
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Dollars in thousands)
|
||||||||||
Balance, beginning of period
|
$
|
174,646
|
|
|
$
|
172,413
|
|
|
$
|
169,333
|
|
Provision for credit losses:
|
|
|
|
|
|
||||||
Addition to allowance for loan and lease losses
|
98,000
|
|
|
1,000
|
|
|
4,000
|
|
|||
Addition to reserve for unfunded
|
|
|
|
|
|
||||||
loan commitments
|
14,000
|
|
|
2,000
|
|
|
—
|
|
|||
Total provision for credit losses
|
112,000
|
|
|
3,000
|
|
|
4,000
|
|
|||
Loans and leases charged off:
|
|
|
|
|
|
||||||
Real estate mortgage
|
(500
|
)
|
|
(147
|
)
|
|
(196
|
)
|
|||
Real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
(19,232
|
)
|
|
(4,475
|
)
|
|
(3,003
|
)
|
|||
Consumer
|
(473
|
)
|
|
(37
|
)
|
|
(266
|
)
|
|||
Total loans and leases charged off
|
(20,205
|
)
|
|
(4,659
|
)
|
|
(3,465
|
)
|
|||
Recoveries on loans charged off:
|
|
|
|
|
|
||||||
Real estate mortgage
|
124
|
|
|
505
|
|
|
143
|
|
|||
Real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
955
|
|
|
3,313
|
|
|
3,106
|
|
|||
Consumer
|
16
|
|
|
74
|
|
|
25
|
|
|||
Total recoveries on loans charged off
|
1,095
|
|
|
3,892
|
|
|
3,274
|
|
|||
Net charge-offs
|
(19,110
|
)
|
|
(767
|
)
|
|
(191
|
)
|
|||
Cumulative effect of change in accounting
|
|
|
|
|
|
||||||
principle - CECL:
|
|
|
|
|
|
||||||
Allowance for loan and lease losses
|
3,617
|
|
|
—
|
|
|
—
|
|
|||
Reserve for unfunded loan commitments
|
3,710
|
|
|
—
|
|
|
—
|
|
|||
Total cumulative effect
|
7,327
|
|
|
—
|
|
|
—
|
|
|||
Balance, end of period
|
$
|
274,863
|
|
|
$
|
174,646
|
|
|
$
|
173,142
|
|
|
|
|
|
|
|
||||||
Annualized net charge-offs to average loans and leases
|
0.40
|
%
|
|
0.02
|
%
|
|
—
|
%
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Allowance for Credit Losses Charge-offs
|
2020
|
|
2019
|
|
2019
|
||||||
|
(In thousands)
|
||||||||||
Real estate mortgage:
|
|
|
|
|
|
||||||
Healthcare real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Hotel
|
—
|
|
|
—
|
|
|
—
|
|
|||
SBA program
|
198
|
|
|
147
|
|
|
96
|
|
|||
Other commercial real estate
|
127
|
|
|
—
|
|
|
9
|
|
|||
Total commercial real estate mortgage
|
325
|
|
|
147
|
|
|
105
|
|
|||
Income producing and other residential
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other residential real estate
|
175
|
|
|
—
|
|
|
91
|
|
|||
Total income producing and other residential
|
|
|
|
|
|
||||||
real estate mortgage
|
175
|
|
|
—
|
|
|
91
|
|
|||
Total real estate mortgage
|
500
|
|
|
147
|
|
|
196
|
|
|||
Real estate construction and land:
|
|
|
|
|
|
||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial:
|
|
|
|
|
|
||||||
Lender finance & timeshare
|
—
|
|
|
—
|
|
|
—
|
|
|||
Equipment finance
|
11,550
|
|
|
—
|
|
|
—
|
|
|||
Premium finance
|
—
|
|
|
31
|
|
|
—
|
|
|||
Other asset-based
|
—
|
|
|
150
|
|
|
—
|
|
|||
Total asset-based
|
11,550
|
|
|
181
|
|
|
—
|
|
|||
Expansion stage
|
270
|
|
|
2,622
|
|
|
204
|
|
|||
Early stage
|
73
|
|
|
617
|
|
|
96
|
|
|||
Equity fund loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Late stage
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total venture capital
|
343
|
|
|
3,239
|
|
|
300
|
|
|||
Security monitoring
|
6,056
|
|
|
—
|
|
|
1,707
|
|
|||
Secured business loans
|
—
|
|
|
206
|
|
|
9
|
|
|||
Other lending
|
1,283
|
|
|
651
|
|
|
514
|
|
|||
Cash flow
|
—
|
|
|
198
|
|
|
473
|
|
|||
Total other commercial
|
7,339
|
|
|
1,055
|
|
|
2,703
|
|
|||
Total commercial
|
19,232
|
|
|
4,475
|
|
|
3,003
|
|
|||
Consumer
|
473
|
|
|
37
|
|
|
266
|
|
|||
Total charge-offs
|
$
|
20,205
|
|
|
$
|
4,659
|
|
|
$
|
3,465
|
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Allowance for Credit Losses Recoveries
|
2020
|
|
2019
|
|
2019
|
||||||
|
(In thousands)
|
||||||||||
Real estate mortgage:
|
|
|
|
|
|
||||||
Healthcare real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Hotel
|
—
|
|
|
—
|
|
|
—
|
|
|||
SBA program
|
107
|
|
|
184
|
|
|
33
|
|
|||
Other commercial real estate
|
12
|
|
|
19
|
|
|
72
|
|
|||
Total commercial real estate mortgage
|
119
|
|
|
203
|
|
|
105
|
|
|||
Income producing and other residential
|
—
|
|
|
276
|
|
|
—
|
|
|||
Other residential real estate
|
5
|
|
|
26
|
|
|
38
|
|
|||
Total income producing and other residential
|
|
|
|
|
|
||||||
real estate mortgage
|
5
|
|
|
302
|
|
|
38
|
|
|||
Total real estate mortgage
|
124
|
|
|
505
|
|
|
143
|
|
|||
Real estate construction and land:
|
|
|
|
|
|
||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total real estate construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial:
|
|
|
|
|
|
||||||
Lender finance & timeshare
|
—
|
|
|
1
|
|
|
1
|
|
|||
Equipment finance
|
230
|
|
|
—
|
|
|
11
|
|
|||
Premium finance
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other asset-based
|
135
|
|
|
871
|
|
|
79
|
|
|||
Total asset-based
|
365
|
|
|
872
|
|
|
91
|
|
|||
Expansion stage
|
46
|
|
|
207
|
|
|
97
|
|
|||
Early stage
|
139
|
|
|
441
|
|
|
2,155
|
|
|||
Equity fund loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Late stage
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total venture capital
|
185
|
|
|
648
|
|
|
2,252
|
|
|||
Security monitoring
|
—
|
|
|
—
|
|
|
—
|
|
|||
Secured business loans
|
78
|
|
|
701
|
|
|
627
|
|
|||
Other lending
|
265
|
|
|
148
|
|
|
125
|
|
|||
Cash flow
|
62
|
|
|
944
|
|
|
11
|
|
|||
Total other commercial
|
405
|
|
|
1,793
|
|
|
763
|
|
|||
Total commercial
|
955
|
|
|
3,313
|
|
|
3,106
|
|
|||
Consumer
|
16
|
|
|
74
|
|
|
25
|
|
|||
Total recoveries
|
$
|
1,095
|
|
|
$
|
3,892
|
|
|
$
|
3,274
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
|
|
% of
|
|
|
|
% of
|
||||||
Deposit Composition
|
Balance
|
|
Total
|
|
Balance
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Noninterest-bearing demand
|
$
|
7,510,218
|
|
|
38
|
%
|
|
$
|
7,243,298
|
|
|
38
|
%
|
Interest checking
|
3,333,147
|
|
|
17
|
%
|
|
3,753,978
|
|
|
19
|
%
|
||
Money market
|
4,712,118
|
|
|
24
|
%
|
|
4,690,420
|
|
|
24
|
%
|
||
Savings
|
495,039
|
|
|
3
|
%
|
|
499,591
|
|
|
3
|
%
|
||
Total core deposits
|
16,050,522
|
|
|
82
|
%
|
|
16,187,287
|
|
|
84
|
%
|
||
Non-core non-maturity deposits
|
836,157
|
|
|
4
|
%
|
|
496,407
|
|
|
3
|
%
|
||
Total non-maturity deposits
|
16,886,679
|
|
|
86
|
%
|
|
16,683,694
|
|
|
87
|
%
|
||
Time deposits $250,000 and under
|
2,086,188
|
|
|
11
|
%
|
|
2,065,733
|
|
|
11
|
%
|
||
Time deposits over $250,000
|
602,970
|
|
|
3
|
%
|
|
483,609
|
|
|
2
|
%
|
||
Total time deposits
|
2,689,158
|
|
|
14
|
%
|
|
2,549,342
|
|
|
13
|
%
|
||
Total deposits
|
$
|
19,575,837
|
|
|
100
|
%
|
|
$
|
19,233,036
|
|
|
100
|
%
|
|
Time Deposits
|
||||||||||
|
$250,000
|
|
Over
|
|
|
||||||
March 31, 2020
|
and Under
|
|
$250,000
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Maturities:
|
|
|
|
|
|
||||||
Due in three months or less
|
$
|
1,009,678
|
|
|
$
|
154,055
|
|
|
$
|
1,163,733
|
|
Due in over three months through six months
|
690,215
|
|
|
158,287
|
|
|
848,502
|
|
|||
Due in over six months through twelve months
|
315,027
|
|
|
277,969
|
|
|
592,996
|
|
|||
Total due within twelve months
|
2,014,920
|
|
|
590,311
|
|
|
2,605,231
|
|
|||
Due in over 12 months through 24 months
|
56,637
|
|
|
11,056
|
|
|
67,693
|
|
|||
Due in over 24 months
|
14,631
|
|
|
1,603
|
|
|
16,234
|
|
|||
Total
|
$
|
2,086,188
|
|
|
$
|
602,970
|
|
|
$
|
2,689,158
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Dollars in thousands)
|
||||||||||
Nonaccrual loans and leases held for investment
|
$
|
95,602
|
|
|
$
|
92,353
|
|
|
$
|
88,527
|
|
Accruing loans contractually past due 90 days or more
|
—
|
|
|
—
|
|
|
—
|
|
|||
Foreclosed assets, net
|
1,701
|
|
|
440
|
|
|
3,291
|
|
|||
Total nonperforming assets
|
$
|
97,303
|
|
|
$
|
92,793
|
|
|
$
|
91,818
|
|
|
|
|
|
|
|
||||||
Performing TDRs held for investment
|
$
|
8,978
|
|
|
$
|
12,257
|
|
|
$
|
17,027
|
|
Classified loans and leases held for investment
|
$
|
147,705
|
|
|
$
|
175,912
|
|
|
$
|
190,305
|
|
Nonaccrual loans and leases held for investment to
|
|
|
|
|
|
||||||
loans and leases held for investment
|
0.48
|
%
|
|
0.49
|
%
|
|
0.48
|
%
|
|||
Nonperforming assets to loans and leases held for investment
|
|
|
|
|
|
||||||
and foreclosed assets, net
|
0.49
|
%
|
|
0.49
|
%
|
|
0.50
|
%
|
|||
Classified loans and leases held for investment
|
|
|
|
|
|
||||||
to loans and leases held for investment
|
0.75
|
%
|
|
0.93
|
%
|
|
1.04
|
%
|
|
Nonaccrual Loans and Leases
|
|
Accruing and
|
||||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
30 - 89 Days Past Due
|
||||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
March 31,
|
|
December 31,
|
||||||||||
|
|
|
Loan
|
|
|
|
Loan
|
|
2020
|
|
2019
|
||||||||||
|
Balance
|
|
Category
|
|
Balance
|
|
Category
|
|
Balance
|
|
Balance
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
19,088
|
|
|
0.5
|
%
|
|
$
|
18,346
|
|
|
0.4
|
%
|
|
$
|
1,807
|
|
|
$
|
1,735
|
|
Income producing and other residential
|
2,308
|
|
|
0.1
|
%
|
|
2,478
|
|
|
0.1
|
%
|
|
1,064
|
|
|
2,094
|
|
||||
Total real estate mortgage
|
21,396
|
|
|
0.3
|
%
|
|
20,824
|
|
|
0.3
|
%
|
|
2,871
|
|
|
3,829
|
|
||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
351
|
|
|
—
|
%
|
|
364
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
||||
Residential
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
241
|
|
|
1,429
|
|
||||
Total real estate construction and land
|
351
|
|
|
—
|
%
|
|
364
|
|
|
—
|
%
|
|
241
|
|
|
1,429
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-based
|
17,104
|
|
|
0.4
|
%
|
|
30,162
|
|
|
0.8
|
%
|
|
—
|
|
|
19
|
|
||||
Venture capital
|
18,612
|
|
|
0.7
|
%
|
|
12,916
|
|
|
0.6
|
%
|
|
183
|
|
|
—
|
|
||||
Other commercial
|
37,726
|
|
|
2.1
|
%
|
|
27,594
|
|
|
1.6
|
%
|
|
4,393
|
|
|
2,258
|
|
||||
Total commercial
|
73,442
|
|
|
0.9
|
%
|
|
70,672
|
|
|
0.9
|
%
|
|
4,576
|
|
|
2,277
|
|
||||
Consumer
|
413
|
|
|
0.1
|
%
|
|
493
|
|
|
0.1
|
%
|
|
518
|
|
|
1,006
|
|
||||
Total held for investment
|
$
|
95,602
|
|
|
0.5
|
%
|
|
$
|
92,353
|
|
|
0.5
|
%
|
|
$
|
8,206
|
|
|
$
|
8,541
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Property Type
|
2020
|
|
2019
|
|
2019
|
||||||
|
(In thousands)
|
||||||||||
Commercial real estate
|
$
|
33
|
|
|
$
|
221
|
|
|
$
|
2,041
|
|
Single-family residence
|
—
|
|
|
—
|
|
|
953
|
|
|||
Construction and land development
|
219
|
|
|
219
|
|
|
219
|
|
|||
Total OREO, net
|
252
|
|
|
440
|
|
|
3,213
|
|
|||
Other foreclosed assets
|
1,449
|
|
|
—
|
|
|
78
|
|
|||
Total foreclosed assets
|
$
|
1,701
|
|
|
$
|
440
|
|
|
$
|
3,291
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
|
|
Number
|
|
|
|
Number
|
||||||
|
|
|
of
|
|
|
|
of
|
||||||
Performing TDRs
|
Balance
|
|
Loans
|
|
Balance
|
|
Loans
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Real estate mortgage
|
$
|
7,095
|
|
|
21
|
|
|
$
|
10,165
|
|
|
22
|
|
Real estate construction and land
|
1,466
|
|
|
1
|
|
|
1,470
|
|
|
1
|
|
||
Commercial
|
350
|
|
|
10
|
|
|
550
|
|
|
12
|
|
||
Consumer
|
67
|
|
|
2
|
|
|
72
|
|
|
2
|
|
||
Total performing TDRs held for investment
|
$
|
8,978
|
|
|
34
|
|
|
$
|
12,257
|
|
|
37
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Loan and Lease Credit Risk Ratings
|
2020
|
|
2019
|
|
2019
|
||||||
|
(Dollars in thousands)
|
||||||||||
Pass
|
$
|
18,698,942
|
|
|
$
|
18,348,004
|
|
|
$
|
17,824,612
|
|
Special mention
|
898,658
|
|
|
322,956
|
|
|
292,780
|
|
|||
Classified
|
147,705
|
|
|
175,912
|
|
|
190,305
|
|
|||
Total loans and leases held for investment, net of deferred fees
|
$
|
19,745,305
|
|
|
$
|
18,846,872
|
|
|
$
|
18,307,697
|
|
|
March 31, 2020
|
December 31, 2019
|
|
Increase (Decrease)
|
|||||||||||||||||||
|
|
|
Special
|
|
|
|
Special
|
|
|
|
Special
|
||||||||||||
|
Classified
|
|
Mention
|
|
Classified
|
|
Mention
|
|
Classified
|
|
Mention
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
33,908
|
|
|
$
|
371,668
|
|
|
$
|
33,535
|
|
|
$
|
30,070
|
|
|
$
|
373
|
|
|
$
|
341,598
|
|
Income producing and other residential
|
7,083
|
|
|
2,491
|
|
|
8,600
|
|
|
1,711
|
|
|
(1,517
|
)
|
|
780
|
|
||||||
Total real estate mortgage
|
40,991
|
|
|
374,159
|
|
|
42,135
|
|
|
31,781
|
|
|
(1,144
|
)
|
|
342,378
|
|
||||||
Real estate construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
351
|
|
|
10,577
|
|
|
364
|
|
|
—
|
|
|
(13
|
)
|
|
10,577
|
|
||||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
1,429
|
|
|
—
|
|
|
(1,429
|
)
|
||||||
Total real estate construction and land
|
351
|
|
|
10,577
|
|
|
364
|
|
|
1,429
|
|
|
(13
|
)
|
|
9,148
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-based
|
23,218
|
|
|
152,136
|
|
|
32,223
|
|
|
38,936
|
|
|
(9,005
|
)
|
|
113,200
|
|
||||||
Venture capital
|
31,110
|
|
|
173,947
|
|
|
35,316
|
|
|
74,813
|
|
|
(4,206
|
)
|
|
99,134
|
|
||||||
Other commercial
|
51,498
|
|
|
186,368
|
|
|
65,261
|
|
|
174,785
|
|
|
(13,763
|
)
|
|
11,583
|
|
||||||
Total commercial
|
105,826
|
|
|
512,451
|
|
|
132,800
|
|
|
288,534
|
|
|
(26,974
|
)
|
|
223,917
|
|
||||||
Consumer
|
537
|
|
|
1,471
|
|
|
613
|
|
|
1,212
|
|
|
(76
|
)
|
|
259
|
|
||||||
Total
|
$
|
147,705
|
|
|
$
|
898,658
|
|
|
$
|
175,912
|
|
|
$
|
322,956
|
|
|
$
|
(28,207
|
)
|
|
$
|
575,702
|
|
|
|
|
Minimum Required
|
||||
|
|
|
For Capital
|
|
For Capital
|
|
For Well
|
|
|
|
Adequacy
|
|
Conservation
|
|
Capitalized
|
|
Actual
|
|
Purposes
|
|
Buffer
|
|
Classification
|
March 31, 2020
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
8.63%
|
|
4.00%
|
|
4.00%
|
|
N/A
|
CET1 capital (to risk weighted assets)
|
9.22%
|
|
4.50%
|
|
7.00%
|
|
N/A
|
Tier 1 capital (to risk weighted assets)
|
9.22%
|
|
6.00%
|
|
8.50%
|
|
N/A
|
Total capital (to risk weighted assets)
|
12.07%
|
|
8.00%
|
|
10.50%
|
|
N/A
|
|
|
|
|
|
|
|
|
Pacific Western Bank
|
|
|
|
|
|
|
|
Tier 1 capital (to average assets)
|
9.71%
|
|
4.00%
|
|
4.00%
|
|
5.00%
|
CET1 capital (to risk weighted assets)
|
10.38%
|
|
4.50%
|
|
7.00%
|
|
6.50%
|
Tier 1 capital (to risk weighted assets)
|
10.38%
|
|
6.00%
|
|
8.50%
|
|
8.00%
|
Total capital (to risk weighted assets)
|
11.39%
|
|
8.00%
|
|
10.50%
|
|
10.00%
|
|
|
|
Minimum Required
|
||||
|
|
|
For Capital
|
|
For Capital
|
|
For Well
|
|
|
|
Adequacy
|
|
Conservation
|
|
Capitalized
|
|
Actual
|
|
Purposes
|
|
Buffer
|
|
Classification
|
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%
|
|
March 31,
|
|
December 31,
|
||||
Primary Liquidity - On-Balance Sheet
|
2020
|
|
2019
|
||||
|
(Dollars in thousands)
|
||||||
Cash and due from banks
|
$
|
172,570
|
|
|
$
|
172,585
|
|
Interest-earning deposits in financial institutions
|
439,690
|
|
|
465,039
|
|
||
Securities available-for-sale
|
3,757,663
|
|
|
3,797,187
|
|
||
Less: pledged securities
|
(2,522,520
|
)
|
|
(486,200
|
)
|
||
Total primary liquidity
|
$
|
1,847,403
|
|
|
$
|
3,948,611
|
|
|
|
|
|
||||
Ratio of primary liquidity to total deposits
|
9.4
|
%
|
|
20.5
|
%
|
Secondary Liquidity - Off-Balance Sheet
|
March 31,
|
|
December 31,
|
||||
Available Secured Borrowing Capacity
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Secured borrowing capacity with the FHLB
|
$
|
5,975,220
|
|
|
$
|
4,229,788
|
|
Less: secured advances outstanding
|
(1,904,000
|
)
|
|
(1,318,000
|
)
|
||
Available secured borrowing capacity with the FHLB
|
4,071,220
|
|
|
2,911,788
|
|
||
Available secured borrowing capacity with the FRBSF
|
1,898,666
|
|
|
1,988,028
|
|
||
Total secondary liquidity
|
$
|
5,969,886
|
|
|
$
|
4,899,816
|
|
|
|
|
Due After
|
|
Due After
|
|
|
|
|
||||||||||
|
Due
|
|
One Year
|
|
Three Years
|
|
Due
|
|
|
||||||||||
|
Within
|
|
Through
|
|
Through
|
|
After
|
|
|
||||||||||
March 31, 2020
|
One Year
|
|
Three Years
|
|
Five Years
|
|
Five Years
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Time deposits
|
$
|
2,605,231
|
|
|
$
|
80,072
|
|
|
$
|
3,819
|
|
|
$
|
36
|
|
|
$
|
2,689,158
|
|
Short-term borrowings
|
1,795,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,795,000
|
|
|||||
Long-term debt obligations (1)
|
—
|
|
|
500,000
|
|
|
—
|
|
|
540,220
|
|
|
1,040,220
|
|
|||||
Contractual interest (2)
|
21,581
|
|
|
4,136
|
|
|
139
|
|
|
1
|
|
|
25,857
|
|
|||||
Operating lease obligations
|
33,574
|
|
|
54,895
|
|
|
35,199
|
|
|
31,211
|
|
|
154,879
|
|
|||||
Other contractual obligations
|
91,583
|
|
|
67,874
|
|
|
12,122
|
|
|
24,784
|
|
|
196,363
|
|
|||||
Total
|
$
|
4,546,969
|
|
|
$
|
706,977
|
|
|
$
|
51,279
|
|
|
$
|
596,252
|
|
|
$
|
5,901,477
|
|
(1)
|
Excludes purchase accounting fair value adjustments.
|
(2)
|
Excludes interest on subordinated debentures as these instruments are variable rate.
|
|
Forecasted
|
|
|
|
Forecasted
|
|
Forecasted
|
||
|
Net Interest
|
|
Percentage
|
|
Net Interest
|
|
Net Interest
|
||
|
Income
|
|
Change
|
|
Margin
|
|
Margin Change
|
||
March 31, 2020
|
(Tax Equivalent)
|
|
From Base
|
|
(Tax Equivalent)
|
|
From Base
|
||
|
(Dollars in millions)
|
|
|
|
|
|
|
||
Interest Rate Scenario:
|
|
|
|
|
|
|
|
||
Up 300 basis points
|
$
|
1,158.0
|
|
|
14.8%
|
|
4.82%
|
|
0.62%
|
Up 200 basis points
|
$
|
1,087.5
|
|
|
7.8%
|
|
4.53%
|
|
0.33%
|
Up 100 basis points
|
$
|
1,026.7
|
|
|
1.8%
|
|
4.27%
|
|
0.07%
|
BASE CASE
|
$
|
1,008.7
|
|
|
—
|
|
4.20%
|
|
—
|
Down 25 basis points
|
$
|
1,004.9
|
|
|
(0.4)%
|
|
4.18%
|
|
(0.02)%
|
Down 50 basis points
|
$
|
1,000.4
|
|
|
(0.8)%
|
|
4.16%
|
|
(0.04)%
|
Down 100 basis points
|
$
|
995.6
|
|
|
(1.3)%
|
|
4.14%
|
|
(0.06)%
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|||||||
|
Projected
|
|
Dollar
|
|
Percentage
|
|
Percentage
|
|
Projected
|
|||||||
|
Market Value
|
|
Change
|
|
Change
|
|
of Total
|
|
Market Value
|
|||||||
March 31, 2020
|
of Equity
|
|
From Base
|
|
From Base
|
|
Assets
|
|
to Book Value
|
|||||||
|
(Dollars in millions)
|
|
|
|
|
|
|
|||||||||
Interest Rate Scenario:
|
|
|
|
|
|
|
|
|
|
|||||||
Up 300 basis points
|
$
|
5,523.9
|
|
|
$
|
814.9
|
|
|
17.3
|
%
|
|
21.1
|
%
|
|
162.9
|
%
|
Up 200 basis points
|
$
|
5,329.7
|
|
|
$
|
620.7
|
|
|
13.2
|
%
|
|
20.4
|
%
|
|
157.2
|
%
|
Up 100 basis points
|
$
|
5,061.5
|
|
|
$
|
352.6
|
|
|
7.5
|
%
|
|
19.4
|
%
|
|
149.3
|
%
|
BASE CASE
|
$
|
4,709.0
|
|
|
$
|
—
|
|
|
—
|
%
|
|
18.0
|
%
|
|
138.9
|
%
|
Down 100 basis points
|
$
|
4,143.9
|
|
|
$
|
(565.1
|
)
|
|
(12.0
|
)%
|
|
15.9
|
%
|
|
122.2
|
%
|
Down 200 basis points
|
$
|
3,572.7
|
|
|
$
|
(1,136.2
|
)
|
|
(24.1
|
)%
|
|
13.7
|
%
|
|
105.4
|
%
|
Down 300 basis points
|
$
|
3,216.1
|
|
|
$
|
(1,492.9
|
)
|
|
(31.7
|
)%
|
|
12.3
|
%
|
|
94.9
|
%
|
|
|
|
|
|
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)
|
|
|||||
January 1 – January 31, 2020
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
124,707
|
|
February 1 – February 29, 2020
|
2,059,732
|
|
|
$
|
35.66
|
|
|
1,953,711
|
|
|
$
|
54,708
|
|
March 1 – March 31, 2020
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
200,000
|
|
Total
|
2,059,732
|
|
|
$
|
—
|
|
|
1,953,711
|
|
|
|
(1)
|
Includes shares repurchased pursuant to net settlement by employees in satisfaction of income tax withholding obligations incurred through the vesting of Company stock awards, and shares repurchased pursuant to the Company's publicly announced Stock Repurchase Program, described in (2) below.
|
(2)
|
On February 12, 2020, PacWest's Board of Directors authorized a new Stock Repurchase Program to purchase shares of its common stock for an aggregate purchase price not to exceed $200 million until February 28, 2021. On April 21, 2020, stock repurchases under the current Stock Repurchase Program were suspended indefinitely. All shares repurchased under the various Stock Repurchase Programs were retired upon settlement.
|
Exhibit Number
|
Description
|
2.4
|
|
3.1
|
|
3.2
|
|
3.3
|
|
4.1
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
10.6
|
|
10.7
|
|
10.8
|
|
10.9
|
|
10.10
|
|
10.11
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
|
PACWEST BANCORP
|
|
|
|
Date:
|
May 8, 2020
|
/s/ Bart R. Olson
|
|
|
Bart R. Olson
|
|
|
Executive Vice President and Chief Accounting Officer
|