California | 95-3629339 | |
(State or other jurisdiction of | (I.R.S. Employer | |
Incorporation or organization) | Identification No.) | |
701 North Haven Ave., Suite 350 | ||
Ontario, | 91764 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, No Par Value | CVBF | The Nasdaq Stock Market, LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||
Emerging growth company | ☐ |
PART I – | 3 | |||||
ITEM 1. | 5 | |||||
10 | ||||||
ITEM 2. | 41 | |||||
41 | ||||||
41 | ||||||
43 | ||||||
53 | ||||||
69 | ||||||
ITEM 3. | 71 | |||||
ITEM 4. | 71 | |||||
PART II – | 72 | |||||
ITEM 1. | 72 | |||||
ITEM 1A. | 72 | |||||
ITEM 2. | 73 | |||||
ITEM 3. | 73 | |||||
ITEM 4. | 73 | |||||
ITEM 5. | 73 | |||||
ITEM 6. | 73 | |||||
74 |
June 30, 2019 | December 31, 2018 | ||||||||
Assets | |||||||||
Cash and due from banks | $ | 170,387 | $ | 144,008 | |||||
Interest-earning balances due from Federal Reserve | 5,453 | 19,940 | |||||||
Total cash and cash equivalents | 175,840 | 163,948 | |||||||
Interest-earning balances due from depository institutions | 6,425 | 7,670 | |||||||
Investment securities available-for-sale, at fair value (with amortized cost of $1,584,687 at June 30, 2019, and $1,757,666 at December 31, 2018) | 1,600,020 | 1,734,085 | |||||||
Investment securities held-to-maturity (with fair value of $729,032 at June 30, 2019, and $721,537 at December 31, 2018) | 728,113 | 744,440 | |||||||
Total investment securities | 2,328,133 | 2,478,525 | |||||||
Investment in stock of Federal Home Loan Bank (FHLB) | 17,688 | 17,688 | |||||||
Loans and lease finance receivables | 7,535,690 | 7,764,611 | |||||||
Allowance for loan losses | (67,132 | ) | (63,613 | ) | |||||
Net loans and lease finance receivables | 7,468,558 | 7,700,998 | |||||||
Premises and equipment, net | 54,163 | 58,193 | |||||||
Bank owned life insurance (BOLI) | 224,172 | 220,758 | |||||||
Accrued interest receivable | 29,481 | 30,649 | |||||||
Intangibles | 48,094 | 53,784 | |||||||
Goodwill | 663,707 | 666,539 | |||||||
Other real estate owned (OREO) | 2,275 | 420 | |||||||
Income taxes | 49,581 | 62,174 | |||||||
Other assets | 103,466 | 67,807 | |||||||
Total assets | $ | 11,171,583 | $ | 11,529,153 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Liabilities: | |||||||||
Deposits: | |||||||||
Noninterest-bearing | $ | 5,250,235 | $ | 5,204,787 | |||||
Interest-bearing | 3,412,588 | 3,622,703 | |||||||
Total deposits | 8,662,823 | 8,827,490 | |||||||
Customer repurchase agreements | 421,271 | 442,255 | |||||||
Other borrowings | - | 280,000 | |||||||
Deferred compensation | 20,953 | 20,033 | |||||||
Junior subordinated debentures | 25,774 | 25,774 | |||||||
Other liabilities | 104,085 | 82,411 | |||||||
Total liabilities | 9,234,906 | 9,677,963 | |||||||
Commitments and Contingencies | |||||||||
Stockholders’ Equity | |||||||||
Common stock, authorized, 225,000,000 shares without par; issued and outstanding 140,141,680 at June 30, 2019, and 140,000,017 at December 31, 2018 | 1,296,885 | 1,293,669 | |||||||
Retained earnings | 631,512 | 575,805 | |||||||
Accumulated other comprehensive income (loss), net of tax | 8,280 | (18,284 | ) | ||||||
Total stockholders’ equity | 1,936,677 | 1,851,190 | |||||||
Total liabilities and stockholders’ equity | $ | 11,171,583 | $ | 11,529,153 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest income: | ||||||||||||||||
Loans and leases, including fees | $ | 101,843 | $ | 57,368 | $ | 201,530 | $ | 112,564 | ||||||||
Investment securities: | ||||||||||||||||
Investment securities available-for-sale | 10,118 | 11,697 | 20,763 | 23,565 | ||||||||||||
Investment securities held-to-maturity | 4,426 | 4,807 | 8,951 | 9,572 | ||||||||||||
Total investment income | 14,544 | 16,504 | 29,714 | 33,137 | ||||||||||||
Dividends from FHLB stock | 298 | 298 | 630 | 630 | ||||||||||||
Interest-earning deposits with other institutions | 100 | 635 | 194 | 1,171 | ||||||||||||
Total interest income | 116,785 | 74,805 | 232,068 | 147,502 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 4,093 | 1,549 | 7,964 | 3,074 | ||||||||||||
Borrowings and customer repurchase agreements | 1,377 | 337 | 2,987 | 790 | ||||||||||||
Junior subordinated debentures | 258 | 231 | 524 | 429 | ||||||||||||
Total interest expense | 5,728 | 2,117 | 11,475 | 4,293 | ||||||||||||
Net interest income before provision for (recapture of) loan losses | 111,057 | 72,688 | 220,593 | 143,209 | ||||||||||||
Provision for (recapture of) loan losses | 2,000 | (1,000 | ) | 3,500 | (2,000 | ) | ||||||||||
Net interest income after provision for (recapture of) loan losses | 109,057 | 73,688 | 217,093 | 145,209 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 5,065 | 4,091 | 10,206 | 8,136 | ||||||||||||
Trust and investment services | 2,452 | 2,399 | 4,634 | 4,556 | ||||||||||||
Bankcard services | 1,027 | 958 | 1,977 | 1,762 | ||||||||||||
BOLI income | 1,349 | 1,069 | 2,685 | 2,048 | ||||||||||||
Gain on OREO, net | 24 | - | 129 | 3,540 | ||||||||||||
Gain on sale of building, net | - | - | 4,545 | - | ||||||||||||
Gain on eminent domain condemnation, net | 5,685 | - | 5,685 | - | ||||||||||||
Other | 2,603 | 1,178 | 4,647 | 2,569 | ||||||||||||
Total noninterest income | 18,205 | 9,695 | 34,508 | 22,611 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 28,862 | 21,051 | 58,164 | 43,365 | ||||||||||||
Occupancy and equipment | 5,641 | 4,318 | 11,256 | 8,510 | ||||||||||||
Professional services | 2,040 | 1,690 | 3,965 | 3,220 | ||||||||||||
Software licenses and maintenance | 2,542 | 1,759 | 4,964 | 3,519 | ||||||||||||
Marketing and promotion | 1,238 | 1,148 | 2,632 | 2,504 | ||||||||||||
Amortization of intangible assets | 2,833 | 328 | 5,690 | 659 | ||||||||||||
Acquisition related expenses | 2,612 | 494 | 5,761 | 1,297 | ||||||||||||
Other | 4,760 | 3,466 | 9,700 | 7,126 | ||||||||||||
Total noninterest expense | 50,528 | 34,254 | 102,132 | 70,200 | ||||||||||||
Earnings before income taxes | 76,734 | 49,129 | 149,469 | 97,620 | ||||||||||||
Income taxes | 22,253 | 13,756 | 43,346 | 27,334 | ||||||||||||
Net earnings | $ | 54,481 | $ | 35,373 | $ | 106,123 | $ | 70,286 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gain (loss) on securities arising during the period, before tax | $ | 19,486 | $ | (6,598 | ) | $ | 37,713 | $ | (38,768 | ) | ||||||
Less: Income tax (expense) benefit related to items of other comprehensive income | (5,761 | ) | 1,951 | (11,149 | ) | 11,462 | ||||||||||
Other comprehensive income (loss), net of tax | 13,725 | (4,647 | ) | 26,564 | (27,306 | ) | ||||||||||
Comprehensive income | $ | 68,206 | $ | 30,726 | $ | 132,687 | $ | 42,980 | ||||||||
Basic earnings per common share | $ | 0.39 | $ | 0.32 | $ | 0.76 | $ | 0.64 | ||||||||
Diluted earnings per common share | $ | 0.39 | $ | 0.32 | $ | 0.76 | $ | 0.64 |
September 30, 2019 | December 31, 2018 | ||||||||
Assets | |||||||||
Cash and due from banks | $ | 222,248 | $ | 144,008 | |||||
Interest-earning balances due from Federal Reserve | 215,300 | 19,940 | |||||||
Total cash and cash equivalents | 437,548 | 163,948 | |||||||
Interest-earning balances due from depository institutions | 5,673 | 7,670 | |||||||
Investment securities available-for-sale, at fair value (with amortized cost of $1,549,406 at September2019, and $1,757,666 at December 31, 2018) | 1,570,406 | 1,734,085 | |||||||
Investment securities held-to-maturity (with fair value of $711,891at September 30, 2019, and $721,537 at December 31, 2018) | 703,953 | 744,440 | |||||||
Total investment securities | 2,274,359 | 2,478,525 | |||||||
Investment in stock of Federal Home Loan Bank (FHLB) | 17,688 | 17,688 | |||||||
Loans and lease finance receivables | 7,494,451 | 7,764,611 | |||||||
Allowance for loan losses | (68,672 | ) | (63,613 | ) | |||||
Net loans and lease finance receivables | 7,425,779 | 7,700,998 | |||||||
Premises and equipment, net | 53,256 | 58,193 | |||||||
Bank owned life insurance (BOLI) | 224,841 | 220,758 | |||||||
Accrued interest receivable | 27,244 | 30,649 | |||||||
Intangibles | 45,446 | 53,784 | |||||||
Goodwill | 663,707 | 666,539 | |||||||
Other real estate owned (OREO) | 9,450 | 420 | |||||||
Income taxes | 44,630 | 62,174 | |||||||
Other assets | 103,141 | 67,807 | |||||||
Total assets | $ | 11,332,762 | $ | 11,529,153 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Liabilities: | |||||||||
Deposits: | |||||||||
Noninterest-bearing | $ | 5,385,104 | $ | 5,204,787 | |||||
Interest-bearing | 3,409,226 | 3,622,703 | |||||||
Total deposits | 8,794,330 | 8,827,490 | |||||||
Customer repurchase agreements | 407,850 | 442,255 | |||||||
Other borrowings | 4,914 | 280,000 | |||||||
Deferred compensation | 22,334 | 20,033 | |||||||
Junior subordinated debentures | 25,774 | 25,774 | |||||||
Other liabilities | 110,667 | 82,411 | |||||||
Total liabilities | 9,365,869 | 9,677,963 | |||||||
Commitments and Contingencies | |||||||||
Stockholders’ Equity | |||||||||
Common stock, authorized, 225,000,000 shares without par; issued and outstanding 140,157,063 at September 30, 2019, and 140,000,017 at December 31, 2018 | 1,298,138 | 1,293,669 | |||||||
Retained earnings | 656,659 | 575,805 | |||||||
Accumulated other comprehensive income (loss), net of tax | 12,096 | (18,284 | ) | ||||||
Total stockholders’ equity | 1,966,893 | 1,851,190 | |||||||
Total liabilities and stockholders’ equity | $ | 11,332,762 | $ | 11,529,153 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Interest income: | |||||||||||||||||
Loans and leases, including fees | $ | 98,796 | $ | 79,818 | $ | 300,326 | $ | 192,382 | |||||||||
Investment securities: | |||||||||||||||||
Investment securities available-for-sale | 9,222 | 11,521 | 29,985 | 35,086 | |||||||||||||
Investment securities held-to-maturity | 4,298 | 4,666 | 13,249 | 14,238 | |||||||||||||
Total investment income | 13,520 | 16,187 | 43,234 | 49,324 | |||||||||||||
Dividends from FHLB stock | 301 | 329 | 931 | 959 | |||||||||||||
Interest-earning deposits with other institutions | 946 | 304 | 1,140 | 1,475 | |||||||||||||
Total interest income | 113,563 | 96,638 | 345,631 | 244,140 | |||||||||||||
Interest expense: | |||||||||||||||||
Deposits | 4,589 | 2,967 | 12,553 | 6,041 | |||||||||||||
Borrowings and customer repurchase agreements | 568 | 606 | 3,555 | 1,396 | |||||||||||||
Junior subordinated debentures | 247 | 245 | 771 | 674 | |||||||||||||
Total interest expense | 5,404 | 3,818 | 16,879 | 8,111 | |||||||||||||
Net interest income before provision for (recapture of) loan losses | 108,159 | 92,820 | 328,752 | 236,029 | |||||||||||||
Provision for (recapture of) loan losses | 1,500 | 500 | 5,000 | (1,500 | ) | ||||||||||||
Net interest income after provision for (recapture of) loan losses | 106,659 | 92,320 | 323,752 | 237,529 | |||||||||||||
Noninterest income: | |||||||||||||||||
Service charges on deposit accounts | 4,833 | 4,295 | 15,039 | 12,431 | |||||||||||||
Trust and investment services | 2,330 | 2,182 | 6,964 | 6,738 | |||||||||||||
Bankcard services | 637 | 875 | 2,614 | 2,637 | |||||||||||||
BOLI income | 1,797 | 936 | 4,482 | 2,984 | |||||||||||||
Gain on OREO, net | - | - | 129 | 3,540 | |||||||||||||
Gain on sale of building, net | - | - | 4,545 | - | |||||||||||||
Gain on eminent domain condemnation, net | - | - | 5,685 | - | |||||||||||||
Other | 2,297 | 1,824 | 6,944 | 4,393 | |||||||||||||
Total noninterest income | 11,894 | 10,112 | 46,402 | 32,723 | |||||||||||||
Noninterest expense: | |||||||||||||||||
Salaries and employee benefits | 30,122 | 26,319 | 88,286 | 69,684 | |||||||||||||
Occupancy and equipment | 5,092 | 5,324 | 16,348 | 13,834 | |||||||||||||
Professional services | 1,688 | 1,154 | 5,653 | 4,374 | |||||||||||||
Software licenses and maintenance | 2,450 | 2,317 | 7,414 | 5,836 | |||||||||||||
Marketing and promotion | 1,517 | 1,134 | 4,149 | 3,638 | |||||||||||||
Amortization of intangible assets | 2,648 | 1,736 | 8,338 | 2,395 | |||||||||||||
Acquisition related expenses | 244 | 6,645 | 6,005 | 7,942 | |||||||||||||
Other | 3,774 | 4,251 | 13,474 | 11,377 | |||||||||||||
Total noninterest expense | 47,535 | 48,880 | 149,667 | 119,080 | |||||||||||||
Earnings before income taxes | 71,018 | 53,552 | 220,487 | 151,172 | |||||||||||||
Income taxes | 20,595 | 14,994 | 63,941 | 42,328 | |||||||||||||
Net earnings | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | |||||||||
Other comprehensive income (loss): | |||||||||||||||||
Unrealized gain (loss) on securities arising during the period, before tax | $ | 5,423 | $ | (10,387 | ) | $ | 43,136 | $ | (49,155 | ) | |||||||
Less: Reclassification adjustment for net gain on securities included in net income | (5 | ) | - | (5 | ) | - | |||||||||||
Other comprehensive income (loss), before tax | 5,418 | (10,387 | ) | 43,131 | (49,155 | ) | |||||||||||
Less: Income tax (expense) benefit related to items of other comprehensive income | (1,602 | ) | 3,070 | (12,751 | ) | 14,532 | |||||||||||
Other comprehensive income (loss), net taxof | 3,816 | (7,317 | ) | 30,380 | (34,623 | ) | |||||||||||
Comprehensive income | $ | 54,239 | $ | 31,241 | $ | 186,926 | $ | 74,221 | |||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 | |||||||||
Diluted earnings per common share | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 |
Common Shares Outstanding | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||
Balance, April 1, 2018 | 110,259 | $ | 574,225 | $ | 513,484 | $ | (20,851 | ) | $ | 1,066,858 | |||||||||||
Repurchase of common stock | (2 | ) | (45 | ) | - | - | (45 | ) | |||||||||||||
Exercise of stock options | 51 | 589 | - | - | 589 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | (6 | ) | 733 | - | - | 733 | |||||||||||||||
Cash dividends declared on common stock ($0.14 per share) | - | - | (15,444 | ) | - | (15,444 | ) | ||||||||||||||
Net earnings | - | - | 35,373 | - | 35,373 | ||||||||||||||||
Other comprehensive loss | - | - | - | (4,647 | ) | (4,647 | ) | ||||||||||||||
Balance, June 30, 2018 | 110,302 | $ | 575,502 | $ | 533,413 | $ | (25,498 | ) | $ | 1,083,417 | |||||||||||
Balance, April 1, 2019 | 140,009 | $ | 1,294,093 | $ | 602,279 | $ | (5,445 | ) | $ | 1,890,927 | |||||||||||
Repurchase of common stock | (3 | ) | (77 | ) | - | - | (77 | ) | |||||||||||||
Exercise of stock options | 136 | 1,917 | - | - | 1,917 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | - | 952 | - | - | 952 | ||||||||||||||||
Cash dividends declared on common stock ($0.18 per share) | - | - | (25,248 | ) | - | (25,248 | ) | ||||||||||||||
Net earnings | - | - | 54,481 | - | 54,481 | ||||||||||||||||
Other comprehensive income | - | - | - | 13,725 | 13,725 | ||||||||||||||||
Balance, June 30, 2019 | 140,142 | $ | 1,296,885 | $ | 631,512 | $ | 8,280 | $ | 1,936,677 |
Common Shares Outstanding | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||
Balance, July 1, 2018 | 110,302 | $ | 575,502 | $ | 533,413 | $ | (25,498 | ) | $ | 1,083,417 | |||||||||||
Repurchase of common stock | (6 | ) | (151 | ) | - | - | (151 | ) | |||||||||||||
Issuance of common stock for acquisition of Community | 29,842 | 722,767 | - | - | 722,767 | ||||||||||||||||
Exercise of stock options | 7 | 87 | - | - | 87 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 190 | 847 | - | - | 847 | ||||||||||||||||
Cash dividends declared on common stock ($0.14 per | - | - | (19,628 | ) | - | (19,628 | ) | ||||||||||||||
Net earnings | - | - | 38,558 | - | 38,558 | ||||||||||||||||
Other comprehensive loss | - | - | - | (7,317 | ) | (7,317 | ) | ||||||||||||||
Balance, September 30, 2018 | 140,335 | $ | 1,299,052 | $ | 552,343 | $ | (32,815 | ) | $ | 1,818,580 | |||||||||||
Balance, July 1, 2019 | 140,142 | $ | 1,296,885 | $ | 631,512 | $ | 8,280 | $ | 1,936,677 | ||||||||||||
Repurchase of common stock | (34 | ) | (723 | ) | - | - | (723 | ) | |||||||||||||
Exercise of stock options | 15 | 155 | - | - | 155 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 34 | 1,821 | - | - | 1,821 | ||||||||||||||||
Cash dividends declared on common stock ($0.18 per | - | - | (25,276 | ) | - | (25,276 | ) | ||||||||||||||
Net earnings | - | - | 50,423 | - | 50,423 | ||||||||||||||||
Other comprehensive income | - | - | - | 3,816 | 3,816 | ||||||||||||||||
Balance, September 30, 2019 | 140,157 | $ | 1,298,138 | $ | 656,659 | $ | 12,096 | $ | 1,966,893 |
Common Shares Outstanding | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||
Balance, January 1, 2018 | 110,185 | $ | 573,453 | $ | 494,361 | $ | 1,452 | $ | 1,069,266 | ||||||||||||
Cumulative adjustment upon adoption of ASU 2018-02 | - | - | (356 | ) | 356 | - | |||||||||||||||
Repurchase of common stock | (36 | ) | (837 | ) | - | - | (837 | ) | |||||||||||||
Exercise of stock options | 138 | 1,417 | - | - | 1,417 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 15 | 1,469 | - | - | 1,469 | ||||||||||||||||
Cash dividends declared on common stock ($0.28 per share) | - | - | (30,878 | ) | - | (30,878 | ) | ||||||||||||||
Net earnings | - | - | 70,286 | - | 70,286 | ||||||||||||||||
Other comprehensive loss | - | - | - | (27,306 | ) | (27,306 | ) | ||||||||||||||
Balance, June 30, 2018 | 110,302 | $ | 575,502 | $ | 533,413 | $ | (25,498 | ) | $ | 1,083,417 | |||||||||||
Balance, January 1, 2019 | 140,000 | $ | 1,293,669 | $ | 575,805 | $ | (18,284 | ) | $ | 1,851,190 | |||||||||||
Repurchase of common stock | (36 | ) | (812 | ) | - | - | (812 | ) | |||||||||||||
Exercise of stock options | 145 | 2,057 | - | - | 2,057 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 33 | 1,971 | - | - | 1,971 | ||||||||||||||||
Cash dividends declared on common stock ($0.36 per share) | - | - | (50,416 | ) | - | (50,416 | ) | ||||||||||||||
Net earnings | - | - | 106,123 | - | 106,123 | ||||||||||||||||
Other comprehensive income | - | - | - | 26,564 | 26,564 | ||||||||||||||||
Balance, June 30, 2019 | 140,142 | $ | 1,296,885 | $ | 631,512 | $ | 8,280 | $ | 1,936,677 |
For the Nine Months Ended September 30, 2019 | Common Shares Outstanding | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
Balance, January 1, 2018 | 110,185 | $ | 573,453 | $ | 494,361 | $ | 1,452 | $ | 1,069,266 | ||||||||||||
Cumulative adjustment upon adoption of ASU 2018-02 | - | - | (356 | ) | 356 | - | |||||||||||||||
Repurchase of common stock | (42 | ) | (988 | ) | - | - | (988 | ) | |||||||||||||
Issuance of common stock for acquisition of Community Bank | 29,842 | 722,767 | - | - | 722,767 | ||||||||||||||||
Exercise of stock options | 145 | 1,504 | - | - | 1,504 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 205 | 2,316 | - | - | 2,316 | ||||||||||||||||
Cash dividends declared on common stock ($0.42 per | - | - | (50,506 | ) | - | (50,506 | ) | ||||||||||||||
Net earnings | - | - | 108,844 | - | 108,844 | ||||||||||||||||
Other comprehensive lo s s | - | - | - | (34,623 | ) | (34,623 | ) | ||||||||||||||
Balance, September 30, 2018 | 140,335 | $ | 1,299,052 | $ | 552,343 | $ | (32,815 | ) | $ | 1,818,580 | |||||||||||
Balance, January 1, 2019 | 140,000 | $ | 1,293,669 | $ | 575,805 | $ | (18,284 | ) | $ | 1,851,190 | |||||||||||
Repurchase of common stock | (70 | ) | (1,535 | ) | - | - | (1,535 | ) | |||||||||||||
Exercise of stock options | 160 | 2,212 | - | - | 2,212 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 67 | 3,792 | - | - | 3,792 | ||||||||||||||||
Cash dividends declared on common stock ($0.54 per | - | - | (75,692 | ) | - | (75,692 | ) | ||||||||||||||
Net earnings | - | - | 156,546 | - | 156,546 | ||||||||||||||||
Other comprehensive income | - | - | - | 30,380 | 30,380 | ||||||||||||||||
Balance, September 30, 2019 | 140,157 | $ | 1,298,138 | $ | 656,659 | $ | 12,096 | $ | 1,966,893 |
For the Six Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
Cash Flows from Operating Activities | ||||||||
Interest and dividends received | $ | 221,542 | $ | 150,590 | ||||
Service charges and other fees received | 21,368 | 17,032 | ||||||
Interest paid | (10,889 | ) | (4,288 | ) | ||||
Net cash paid to vendors, employees and others | (106,919 | ) | (68,564 | ) | ||||
Income taxes | (42,500 | ) | (26,379 | ) | ||||
Payments to FDIC, loss share agreement | - | (65 | ) | |||||
Net cash provided by operating activities | 82,602 | 68,326 | ||||||
Cash Flows from Investing Activities | ||||||||
Net change in interest-earning balances from depository institutions | 1,245 | 10,802 | ||||||
Proceeds from repayment of investment securities available-for-sale | 164,571 | 195,715 | ||||||
Proceeds from maturity of investment securities available-for-sale | 4,255 | 10,806 | ||||||
Purchases of investment securities available-for-sale | - | (98,709 | ) | |||||
Proceeds from repayment and maturity of investment securities held-to-maturity | 51,690 | 55,021 | ||||||
Purchases of investment securities held-to-maturity | (37,110 | ) | - | |||||
Net increase in equity investments | (2,811 | ) | (21,827 | ) | ||||
Net decrease in loan and lease finance receivables | 247,450 | 20,802 | ||||||
Proceeds from BOLI death benefit | 175 | 882 | ||||||
Proceeds on eminent domain condemnation, net | 5,685 | - | ||||||
Proceeds from sale of building, net | 5,487 | - | ||||||
Purchase of premises and equipment | (2,628 | ) | (1,225 | ) | ||||
Proceeds from sales of other real estate owned | 523 | 8,067 | ||||||
Net cash provided by investing activities | 438,532 | 180,334 | ||||||
Cash Flows from Financing Activities | ||||||||
Net (decrease) increase in other deposits | (112,317 | ) | 11,299 | |||||
Net decrease in time deposits | (52,350 | ) | (22,846 | ) | ||||
Net decrease in other borrowings | (280,000 | ) | - | |||||
Net decrease in customer repurchase agreements | (20,984 | ) | (169,719 | ) | ||||
Cash dividends on common stock | (44,836 | ) | (30,862 | ) | ||||
Repurchase of common stock | (812 | ) | (837 | ) | ||||
Proceeds from exercise of stock options | 2,057 | 1,417 | ||||||
Net cash used in financing activities | (509,242 | ) | (211,548 | ) | ||||
Net increase in cash and cash equivalents | 11,892 | 37,112 | ||||||
Cash and cash equivalents, beginning of period | 163,948 | 144,377 | ||||||
Cash and cash equivalents, end of period | $ | 175,840 | $ | 181,489 |
For the Nine Months Ended September 30, | |||||||||
2019 | 2018 | ||||||||
Cash Flows from Operating Activities | |||||||||
Interest and dividends received | $ | 331,953 | 245,842 | ||||||
Service charges and other fees received | 31,441 | 26,107 | |||||||
Interest paid | (16,155 | ) | (8,642 | ) | |||||
Net cash paid to vendors, employees and others | (140,482 | ) | (110,799 | ) | |||||
Income taxes | (59,347 | ) | (35,879 | ) | |||||
Payments to FDIC, loss share agreement | - | (65 | ) | ||||||
Net cash provided by operating activities | 147,410 | 116,564 | |||||||
Cash Flows from Investing Activities | |||||||||
Proceeds from redemption of FHLB stock | - | 17,250 | |||||||
Net change in interest-earning balances from depository institutions | 1,997 | 11,934 | |||||||
Proceeds from sale of investment securities held-for-sale | 152,644 | 716,996 | |||||||
Proceeds from repayment of investment securities available-for-sale | 268,766 | 296,922 | |||||||
Proceeds from maturity of investment securities available-for-sale | 6,059 | 20,260 | |||||||
Purchases of investment securities available-for-sale | (225,416 | ) | (98,709 | ) | |||||
Proceeds from repayment and maturity of investment securities held-to-maturity | 81,001 | 67,861 | |||||||
Purchases of investment securities held-to-maturity | (42,917 | ) | - | ||||||
Net increase in equity investments | (3,511 | ) | (24,054 | ) | |||||
Net decrease (increase) in loan and lease finance receivables | 289,490 | (6,806 | ) | ||||||
Proceeds on eminent domain condemnation, net | 5,685 | - | |||||||
Proceeds from sale of building, net | 5,487 | - | |||||||
Purchase of premises and equipment | (3,061 | ) | (3,483 | ) | |||||
Proceeds from BOLI death benefit | 1,509 | 882 | |||||||
Proceeds from sales of other real estate owned | 523 | 8,067 | |||||||
Cash acquired from acquisition, net of cash paid | - | (132,918 | ) | ||||||
Net cash provided by investing activities | 538,256 | 874,202 | |||||||
Cash Flows from Financing Activities | |||||||||
Net increase (decrease) in other deposits | 37,061 | (241,934 | ) | ||||||
Net decrease in time deposits | (70,221 | ) | (65,079 | ) | |||||
Repayment of FHLB advances | - | (297,571 | ) | ||||||
Net decrease in other borrowings | (275,086 | ) | (136,000 | ) | |||||
Net decrease in customer repurchase agreements | (34,405 | ) | (154,296 | ) | |||||
Cash dividends on common stock | (70,092 | ) | (46,304 | ) | |||||
Repurchase of common stock | (1,535 | ) | (988 | ) | |||||
Proceeds from exercise of stock options | 2,212 | 1,504 | |||||||
Net cash used in financing activities | (412,066 | ) | (940,668 | ) | |||||
Net increase in cash and cash equivalents | 273,600 | 50,098 | |||||||
Cash and cash equivalents, beginning of period | 163,948 | 144,377 | |||||||
Cash and cash equivalents, end of period | $ | 437,548 | $ | 194,475 | |||||
For the Nine Months Ended September 30, | |||||||||
2019 | 2018 | ||||||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities | |||||||||
Net earnings | 156,546 | 108,844 | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||
Gain on sale of investment securities, net | (5 | ) | - | ||||||
Gain on eminent domain condemnation, net | (5,685 | ) | - | ||||||
Gain on sale of building, net | (4,545 | ) | - | ||||||
Gain on sale of other real estate owned | (105 | ) | (3,540 | ) | |||||
Increase in BOLI | (5,592 | ) | (3,053 | ) | |||||
Net amortization of premiums and discounts on investment securities | 7,593 | 10,661 | |||||||
Accretion of discount for acquired loans, net | (22,369 | ) | (6,889 | ) | |||||
Provision for (recapture of) loan losses | 5,000 | (1,500 | ) | ||||||
Payments to FDIC, loss share agreement | - | (65 | ) | ||||||
Stock-based compensation | 3,792 | 2,316 | |||||||
Depreciation and amortization, net | 16,993 | 4,146 | |||||||
Change in other assets and liabilities | (4,213 | ) | 5,644 | ||||||
Total adjustments | (9,136 | ) | 7,720 | ||||||
Net cash provided by operating activities | $ | 147,410 | | 116,564 | |||||
Supplemental Disclosure of Non-cash Investing Activities | |||||||||
Transfer of loans to other real estate owned | $ | 9,450 | $ | 420 | |||||
Issuance of common stock for acquisition | $ | - | $ | 722,767 |
For the Six Months Ended June 30, | |||||||||
2019 | 2018 | ||||||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities | |||||||||
Net earnings | $ | 106,123 | $ | 70,286 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||
Gain on eminent domain condemnation, net | (5,685 | ) | - | ||||||
Gain on sale of building, net | (4,545 | ) | - | ||||||
Gain on sale of other real estate owned | (105 | ) | (3,540 | ) | |||||
Increase in BOLI | (3,589 | ) | (1,815 | ) | |||||
Net amortization of premiums and discounts on investment securities | 5,054 | 7,302 | |||||||
Accretion of discount for acquired loans, net | (15,215 | ) | (2,137 | ) | |||||
Provision for (recapture of) loan losses | 3,500 | (2,000 | ) | ||||||
Payments to FDIC, loss share agreement | - | (65 | ) | ||||||
Stock-based compensation | 1,971 | 1,469 | |||||||
Depreciation and amortization, net | 7,832 | 354 | |||||||
Change in other assets and liabilities | (12,739 | ) | (1,528 | ) | |||||
Total adjustments | (23,521 | ) | (1,960 | ) | |||||
Net cash provided by operating activities | $ | 82,602 | $ | 68,326 | |||||
Supplemental Disclosure of Non-cash Investing Activities | |||||||||
Transfer of loans to other real estate owned | $ | 2,275 | $ | - | |||||
Issuance of common stock for acquisition | $ | - | $ | - |
1. | BUSINESS |
2. | BASIS OF PRESENTATION |
3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
4. | BUSINESS COMBINATIONS |
August 10, 2018 | ||||||||||||
(Dollars in thousands) | ||||||||||||
Merger Consideration | ||||||||||||
Cash paid | $ | 180,719 | ||||||||||
CVBF common stock issued | 722,767 | |||||||||||
Total merger consideration | $ | 903,486 | ||||||||||
Identifiable net assets acquired, at fair value | ||||||||||||
Assets Acquired | ||||||||||||
Cash and cash equivalents | 47,802 | |||||||||||
Investment securities | 716,996 | |||||||||||
FHLB stock | 17,250 | |||||||||||
Loans | 2,738,100 | |||||||||||
Accrued interest receivable | 7,916 | |||||||||||
Premises and equipment | 14,632 | |||||||||||
BOLI | 70,904 | |||||||||||
Core deposit intangible | 52,200 | |||||||||||
Other assets | 53,291 | |||||||||||
Total assets acquired | 3,719,091 | |||||||||||
Liabilities assumed | ||||||||||||
Deposits | 2,869,986 | |||||||||||
FHLB advances | 297,571 | |||||||||||
Other borrowings | 166,000 | |||||||||||
Other liabilities | 29,192 | |||||||||||
Total liabilities assumed | 3,362,749 | |||||||||||
Total fair value of identifiable net assets, at fair value | 356,342 | |||||||||||
Goodwill | $ | 547,144 | ||||||||||
Unaudited Pro Forma | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2018 | ||||||||
(Dollars in thousands, except per share amounts) | ||||||||
Total revenues (net interest income plus noninterest income) | $ | 120,467 | $ | 364,846 | ||||
Net income | $ | 44,623 | $ | 138,274 | ||||
Earnings per share - basic | $ | 0.32 | $ | 0.99 | ||||
Earnings per share - diluted | $ | 0.32 | $ | 0.99 |
Unaudited Pro Forma | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, 2019 | ||||||||
(Dollars in thousands, except per share amounts) | ||||||||
Total revenues (net interest income plus noninterest income) | $ | 121,406 | $ | 244,379 | ||||
Net income | $ | 46,960 | $ | 93,651 | ||||
Earnings per share - basic | $ | 0.34 | $ | 0.67 | ||||
Earnings per share - diluted | $ | 0.33 | $ | 0.67 |
5. | INVESTMENT SECURITIES |
June 30, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,348,415 | $ | 16,251 | $ | (2,417 | ) | $ | 1,362,249 | 85.14% | $ | 1,127,395 | $ | 20,105 | $ | (1,341 | ) | $ | 1,146,159 | 72.99 | % | |||||||||||||||||||||
CMO/REMIC - residential | 194,094 | 1,216 | (334 | ) | 194,976 | 12.19% | 381,615 | 1,649 | (336 | ) | 382,928 | 24.38 | % | |||||||||||||||||||||||||||||
Municipal bonds | 41,369 | 658 | (41 | ) | 41,986 | 2.62% | 39,564 | 924 | (1 | ) | 40,487 | 2.58 | % | |||||||||||||||||||||||||||||
Other securities | 809 | - | - | 809 | 0.05% | 832 | - | - | 832 | 0.05 | % | |||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 1,584,687 | $ | 18,125 | $ | (2,792 | ) | $ | 1,600,020 | 100.00% | $ | 1,549,406 | $ | 22,678 | $ | (1,678 | ) | | $ | 1,570,406 | 100.00 | % | ||||||||||||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||
Government agency/GSE | $ | 128,721 | $ | 2,627 | $ | (414 | ) | $ | 130,934 | 17.68% | $ | 123,917 | $ | 3,238 | $ | (170 | ) | $ | 126,985 | 17.60 | % | |||||||||||||||||||||
Residential mortgage-backed securities | 175,552 | 1,480 | (415 | ) | 176,617 | 24.11% | 172,919 | 2,624 | (3 | ) | 175,540 | 24.56 | % | |||||||||||||||||||||||||||||
CMO | 211,436 | 5 | (4,358 | ) | 207,083 | 29.04% | 204,263 | 76 | (1,467 | ) | 202,872 | 29.02 | % | |||||||||||||||||||||||||||||
Municipal bonds | 212,404 | 3,245 | (1,251 | ) | 214,398 | 29.17% | 202,854 | 4,198 | (558 | ) | 206,494 | 28.82 | % | |||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 728,113 | $ | 7,357 | $ | (6,438 | ) | $ | 729,032 | 100.00% | $ | 703,953 | $ | 10,136 | $ | (2,198 | ) | $ | 711,891 | 100.00 | % | |||||||||||||||||||||
December 31, 2018 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | T otal Percent | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,494,106 | $ | 1,348 | $ | (20,946 | ) | $ | 1,474,508 | 85.03% | $ | 1,494,106 | $ | 1,348 | $ | (20,946 | ) | $ | 1,474,508 | 85.03 | % | |||||||||||||||||||||
CMO/REMIC - residential | 217,223 | 353 | (3,525 | ) | 214,051 | 12.34% | 217,223 | 353 | (3,525 | ) | 214,051 | 12.34 | % | |||||||||||||||||||||||||||||
Municipal bonds | 45,621 | 332 | (1,143 | ) | 44,810 | 2.59% | 45,621 | 332 | (1,143 | ) | 44,810 | 2.59 | % | |||||||||||||||||||||||||||||
Other securities | 716 | - | - | 716 | 0.04% | 716 | - | - | 716 | 0.04 | % | |||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 1,757,666 | $ | 2,033 | $ | (25,614 | ) | $ | 1,734,085 | 100.00% | $ | 1,757,666 | $ | 2,033 | $ | (25,614 | ) | $ | 1,734,085 | 100.00 | % | |||||||||||||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||
Government agency/GSE | $ | 138,274 | $ | 572 | $ | (2,622 | ) | $ | 136,224 | 18.57% | $ | 138,274 | $ | 572 | $ | (2,622 | ) | $ | 136,224 | 18.57 | % | |||||||||||||||||||||
Residential mortgage-backed securities | 153,874 | - | (3,140 | ) | 150,734 | 20.67% | 153,874 | - | (3,140 | ) | 150,734 | 20.67 | % | |||||||||||||||||||||||||||||
CMO | 215,336 | - | (12,081 | ) | 203,255 | 28.93% | 215,336 | - | (12,081 | ) | 203,255 | 28.93 | % | |||||||||||||||||||||||||||||
Municipal bonds | 236,956 | 556 | (6,188 | ) | 231,324 | 31.83% | 236,956 | 556 | (6,188 | ) | 231,324 | 31.83 | % | |||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 744,440 | $ | 1,128 | $ | (24,031 | ) | $ | 721,537 | 100.00% | $ | 744,440 | $ | 1,128 | $ | (24,031 | ) | $ | 721,537 | 100.00 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||
Taxable | $ | 9,821 | $ | 11,290 | $ | 20,130 | $ | 22,735 | $ | 8,949 | $ | 11,126 | $ | 29,079 | $ | 33,861 | |||||||||||||||||
Tax-advantaged | 297 | 407 | 633 | 830 | 273 | 395 | 906 | 1,225 | |||||||||||||||||||||||||
Total interest income from available-for-sale securities | 10,118 | 11,697 | 20,763 | 23,565 | 9,222 | 11,521 | 29,985 | 35,086 | |||||||||||||||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||||||||||
Taxable | 2,932 | 3,048 | 5,842 | 5,926 | 2,883 | 2,961 | 8,725 | 8,887 | |||||||||||||||||||||||||
Tax-advantaged | 1,494 | 1,759 | 3,109 | 3,646 | 1,415 | 1,705 | 4,524 | 5,351 | |||||||||||||||||||||||||
Total interest income from held-to-maturity securities | 4,426 | 4,807 | 8,951 | 9,572 | 4,298 | 4,666 | 13,249 | 14,238 | |||||||||||||||||||||||||
Total interest income from investment securities | $ | 14,544 | $ | 16,504 | $ | 29,714 | $ | 33,137 | $ | 13,520 | $ | 16,187 | $ | 43,234 | $ | 49,324 | |||||||||||||||||
June 30, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | - | $ | - | $ | 228,518 | $ | (2,417 | ) | $ | 228,518 | $ | (2,417 | ) | $ | 2 | $ | - | $ | 127,904 | $ | (1,341 | ) | $ | 127,906 | $ | (1,341 | ) | ||||||||||||||||||||||
CMO/REMIC - residential | - | - | 71,924 | (334 | ) | 71,924 | (334 | ) | 122,595 | (156 | ) | 39,498 | (180 | ) | 162,093 | (336 | ) | |||||||||||||||||||||||||||||||||
Municipal bonds | - | - | 3,287 | (41 | ) | 3,287 | (41 | ) | - | - | 564 | (1 | ) | 564 | (1 | ) | ||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | - | $ | - | $ | 303,729 | $ | (2,792 | ) | $ | 303,729 | $ | (2,792 | ) | $ | 122,597 | $ | (156 | ) | $ | 167,966 | $ | (1,522 | ) | $ | 290,563 | $ | (1,678 | ) | |||||||||||||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Government agency/GSE | $ | - | $ | - | $ | 39,016 | $ | (414 | ) | $ | 39,016 | $ | (414 | ) | $ | - | $ | - | $ | 19,923 | $ | (170 | ) | $ | 19,923 | $ | (170 | ) | ||||||||||||||||||||||
Residential mortgage-backed securities | 10,722 | (45 | ) | 75,536 | (370 | ) | 86,258 | (415 | ) | 5,021 | (3 | ) | - | - | 5,021 | (3 | ) | |||||||||||||||||||||||||||||||||
CMO | - | - | 201,974 | (4,358 | ) | 201,974 | (4,358 | ) | - | - | 178,297 | (1,467 | ) | 178,297 | (1,467 | ) | ||||||||||||||||||||||||||||||||||
Municipal bonds | - | - | 49,102 | (1,251 | ) | 49,102 | (1,251 | ) | 3,037 | (5 | ) | 32,217 | (553 | ) | 35,254 | (558 | ) | |||||||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 10,722 | $ | (45 | ) | $ | 365,628 | $ | (6,393 | ) | $ | 376,350 | $ | (6,438 | ) | $ | 8,058 | $ | (8 | ) | $ | 230,437 | $ | (2,190 | ) | $ | 238,495 | $ | (2,198 | ) |
December 31, 2018 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | 692,311 | $ | (4,864 | ) | $ | 593,367 | $ | (16,082 | ) | $ | 1,285,678 | $ | (20,946 | ) | ||||||||
CMO/REMIC - residential | 36,582 | (365 | ) | 135,062 | (3,160 | ) | 171,644 | (3,525 | ) | ||||||||||||||
Municipal bonds | 9,568 | (188 | ) | 14,181 | (955 | ) | 23,749 | (1,143 | ) | ||||||||||||||
Total available-for-sale securities | $ | 738,461 | $ | (5,417 | ) | $ | 742,610 | $ | (20,197 | ) | $ | 1,481,071 | $ | (25,614 | ) | ||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||
Government agency/GSE | $ | 7,479 | $ | (15 | ) | $ | 54,944 | $ | (2,607 | ) | $ | 62,423 | $ | (2,622 | ) | ||||||||
Residential mortgage-backed securities | 59,871 | (484 | ) | 90,863 | (2,656 | ) | 150,734 | (3,140 | ) | ||||||||||||||
CMO | - | - | 203,254 | (12,081 | ) | 203,254 | (12,081 | ) | |||||||||||||||
Municipal bonds | 70,989 | (778 | ) | 77,723 | (5,410 | ) | 148,712 | (6,188 | ) | ||||||||||||||
Total held-to-maturity securities | $ | 138,339 | $ | (1,277 | ) | $ | 426,784 | $ | (22,754 | ) | $ | 565,123 | $ | (24,031 | ) | ||||||||
December 31, 2018 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 692,311 | $ | (4,864) | $ | 593,367 | $ | (16,082) | $ | 1,285,678 | $ | (20,946) | |||||||||||||
CMO/REMIC - residential | 36,582 | (365) | 135,062 | (3,160) | 171,644 | (3,525) | |||||||||||||||||||
Municipal bonds | 9,568 | (188) | 14,181 | (955) | 23,749 | (1,143) | |||||||||||||||||||
Total available-for-sale securities | $ | 738,461 | $ | (5,417) | $ | 742,610 | $ | (20,197) | $ | 1,481,071 | $ | (25,614) | |||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||
Government agency/GSE | $ | 7,479 | $ | (15) | $ | 54,944 | $ | (2,607) | $ | 62,423 | $ | (2,622) | |||||||||||||
Residential mortgage-backed securities | 59,871 | (484) | 90,863 | (2,656) | 150,734 | (3,140) | |||||||||||||||||||
CMO | - | - | 203,254 | (12,081) | 203,254 | (12,081) | |||||||||||||||||||
Municipal bonds | 70,989 | (778) | 77,723 | (5,410) | 148,712 | (6,188) | |||||||||||||||||||
Total held-to-maturity securities | $ | 138,339 | $ | (1,277) | $ | 426,784 | $ | (22,754) | $ | 565,123 | $ | (24,031) |
September 30, 2019 | |||||||||||||||||
Available-for-sale | Held-to-maturity | ||||||||||||||||
Amortized Cost | Fair Value | Cost | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Due in one year or less | $ | 12,278 | $ | 12,426 | $ | 500 | $ | 500 | |||||||||
Due after one year through five years | 1,345,036 | 1,364,026 | 327,802 | 328,561 | |||||||||||||
Due after five years through ten years | 171,657 | 173,033 | 161,463 | 163,676 | |||||||||||||
Due after ten years | 20,435 | 20,921 | 214,188 | 219,154 | |||||||||||||
Total investment securities | $ | 1,549,406 | $ | 1,570,406 | $ | 703,953 | $ | 711,891 |
June 30, 2019 | |||||||||||||||||
Available-for-sale | Held-to-maturity | ||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Due in one year or less | $ | 14,715 | $ | 14,896 | $ | 500 | $ | 503 | |||||||||
Due after one year through five years | 1,427,215 | 1,441,490 | 315,591 | 311,769 | |||||||||||||
Due after five years through ten years | 114,977 | 115,535 | 187,726 | 189,711 | |||||||||||||
Due after ten years | 27,780 | 28,099 | 224,296 | 227,049 | |||||||||||||
Total investment securities | $ | 1,584,687 | $ | 1,600,020 | $ | 728,113 | $ | 729,032 |
6. | LOANS AND LEASE FINANCE RECEIVABLES AND ALLOWANCE FOR LOAN LOSSES |
September 30, 2019 | December 31, 2018 | |||||||||||||||
Total Loans and Leases | Non-PCI Loansand Leases | PCI Loans | Total Loans and Leases | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial and industrial | $ | 921,678 | $ | 1,002,209 | $ | 519 | 1,002,728 | |||||||||
SBA | 319,571 | 350,043 | 1,258 | 351,301 | ||||||||||||
Real estate: | ||||||||||||||||
Commercial real estate | 5,375,668 | 5,394,229 | 14,407 | 5,408,636 | ||||||||||||
Construction | 119,931 | 122,782 | - | 122,782 | ||||||||||||
SFR mortgage | 278,644 | 296,504 | 145 | 296,649 | ||||||||||||
Dairy & livestock and agribusiness | 311,229 | 393,843 | 700 | 394,543 | ||||||||||||
Municipal lease finance receivables | 54,468 | 64,186 | - | 64,186 | ||||||||||||
Consumer and other loans | 117,128 | 128,429 | 185 | 128,614 | ||||||||||||
Gross loans | 7,498,317 | 7,752,225 | 17,214 | 7,769,439 | ||||||||||||
Less: Deferred loan fees, net | (3,866 | ) | (4,828 | ) | - | (4,828 | ) | |||||||||
Gross loans, net of deferred loan fees | 7,494,451 | 7,747,397 | 17,214 | 7,764,611 | ||||||||||||
Less: Allowance for loan losses | (68,672 | ) | (63,409 | ) | (204 | ) | (63,613 | ) | ||||||||
Total loans and lease finance receivables | $ | 7,425,779 | $ | 7,683,988 | $ | 17,010 | $ | 7,700,998 | ||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||||
Total Loans and Leases | Non-PCI Loans and Leases | PCI Loans | Total Loans and Leases | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Commercial and industrial | $ | 917,953 | $ | 1,002,209 | $ | 519 | $ | 1,002,728 | |||||||||
SBA | 327,606 | 350,043 | 1,258 | 351,301 | |||||||||||||
Real estate: | |||||||||||||||||
Commercial real estate | 5,417,351 | 5,394,229 | 14,407 | 5,408,636 | |||||||||||||
Construction | 116,457 | 122,782 | - | 122,782 | |||||||||||||
SFR mortgage | 278,285 | 296,504 | 145 | 296,649 | |||||||||||||
Dairy & livestock and agribusiness | 301,752 | 393,843 | 700 | 394,543 | |||||||||||||
Municipal lease finance receivables | 59,985 | 64,186 | - | 64,186 | |||||||||||||
Consumer and other loans | 120,779 | 128,429 | 185 | 128,614 | |||||||||||||
Gross loans | 7,540,168 | 7,752,225 | 17,214 | 7,769,439 | |||||||||||||
Less: Deferred loan fees, net | (4,478 | ) | (4,828 | ) | - | (4,828 | ) | ||||||||||
Gross loans, net of deferred loan fees | 7,535,690 | 7,747,397 | 17,214 | 7,764,611 | |||||||||||||
Less: Allowance for loan losses | (67,132 | ) | (63,409 | ) | (204 | ) | (63,613 | ) | |||||||||
Total loans and lease finance receivables | $ | 7,468,558 | $ | 7,683,988 | $ | 17,010 | $ | 7,700,998 |
June 30, 2019 | |||||||||||||||||||||
Pass | Special Mention | Substandard (1) | Doubtful & Loss | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 883,044 | $ | 28,611 | $ | 6,298 | $ | - | $ | 917,953 | |||||||||||
SBA | 303,947 | 14,444 | 9,215 | - | 327,606 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 1,985,951 | 87,246 | 20,446 | - | 2,093,643 | ||||||||||||||||
Non-owner occupied | 3,310,103 | 12,850 | 755 | - | 3,323,708 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | 93,170 | - | - | - | 93,170 | ||||||||||||||||
Non-speculative | 23,287 | - | - | - | 23,287 | ||||||||||||||||
SFR mortgage | 272,767 | 2,158 | 3,360 | - | 278,285 | ||||||||||||||||
Dairy & livestock and agribusiness | 239,481 | 54,003 | 8,268 | - | 301,752 | ||||||||||||||||
Municipal lease finance receivables | 59,481 | 504 | - | - | 59,985 | ||||||||||||||||
Consumer and other loans | 118,706 | 1,019 | 1,054 | - | 120,779 | ||||||||||||||||
Total gross loans | $ | 7,289,937 | $ | 200,835 | $ | 49,396 | $ | - | $ | 7,540,168 |
September 30, 2019 | |||||||||||||||||||||
Pass | Special Mention | Substandard (1) | Doubtful & Loss | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 892,865 | $ | 24,456 | $ | 4,357 | $ | - | $ | 921,678 | |||||||||||
SBA | 296,127 | 13,764 | 9,680 | - | 319,571 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 1,987,168 | 83,305 | 22,618 | - | 2,093,091 | ||||||||||||||||
Non-owner occupied | 3,269,174 | 12,663 | 740 | - | 3,282,577 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | 105,636 | - | - | - | 105,636 | ||||||||||||||||
Non-speculative | 14,295 | - | - | - | 14,295 | ||||||||||||||||
SFR mortgage | 275,069 | 2,053 | 1,522 | - | 278,644 | ||||||||||||||||
Dairy & livestock and agribusiness | 247,554 | 43,585 | 20,090 | - | 311,229 | ||||||||||||||||
Municipal lease finance receivables | 53,998 | 470 | - | - | 54,468 | ||||||||||||||||
Consumer and other loans | 115,242 | 845 | 1,041 | - | 117,128 | ||||||||||||||||
Total gross loans | $ | 7,257,128 | $ | 181,141 | $ | 60,048 | $ | - | $ | 7,498,317 | |||||||||||
(1) | Includes $18.0 million of classified loans acquired from CB in the third quarter of 2018. |
December 31, 2018 (1) | ||||||||||||||||||||
Pass | Special Mention | Substandard (2) | Doubtful & Loss | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 961,909 | 29,358 | 10,942 | $ | - | 1,002,209 | |||||||||||||
SBA | 336,033 | 7,375 | 6,635 | - | 350,043 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | 2,008,169 | 95,841 | 13,980 | - | 2,117,990 | |||||||||||||||
Non-owner occupied | 3,260,822 | 9,938 | 5,479 | - | 3,276,239 | |||||||||||||||
Construction | ||||||||||||||||||||
Speculative | 118,233 | - | - | - | 118,233 | |||||||||||||||
Non-speculative | 4,549 | - | - | - | 4,549 | |||||||||||||||
SFR mortgage | 289,607 | 3,310 | 3,587 | - | 296,504 | |||||||||||||||
Dairy & livestock and agribusiness | 350,044 | 34,586 | 9,213 | - | 393,843 | |||||||||||||||
Municipal lease finance receivables | 63,650 | 536 | - | - | 64,186 | |||||||||||||||
Consumer and other loans | 126,085 | 1,263 | 1,081 | - | 128,429 | |||||||||||||||
Total gross loans | $ | 7,519,101 | $ | 182,207 | 50,917 | $ | - | $ | 7,752,225 |
December 31, 2018 (1) | |||||||||||||||||||||
Pass | Special Mention | Substandard (2) | Doubtful & Loss | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 961,909 | $ | 29,358 | $ | 10,942 | $ | - | $ | 1,002,209 | |||||||||||
SBA | 336,033 | 7,375 | 6,635 | - | 350,043 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 2,008,169 | 95,841 | 13,980 | - | 2,117,990 | ||||||||||||||||
Non-owner occupied | 3,260,822 | 9,938 | 5,479 | - | 3,276,239 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | 118,233 | - | - | - | 118,233 | ||||||||||||||||
Non-speculative | 4,549 | - | - | - | 4,549 | ||||||||||||||||
SFR mortgage | 289,607 | 3,310 | 3,587 | - | 296,504 | ||||||||||||||||
Dairy & livestock and agribusiness | 350,044 | 34,586 | 9,213 | - | 393,843 | ||||||||||||||||
Municipal lease finance receivables | 63,650 | 536 | - | - | 64,186 | ||||||||||||||||
Consumer and other loans | 126,085 | 1,263 | 1,081 | - | 128,429 | ||||||||||||||||
Total gross loans | $ | 7,519,101 | $ | 182,207 | $ | 50,917 | $ | - | $ | 7,752,225 |
(1) | Excludes PCI loans of $17.2 million as of December 31, 2018, of which $15.8 million were rated pass, $1.2 million were rated special mention, $224,000 were rated substandard, and |
(2) | Includes $19.0 million of classified loans acquired from CB in the third quarter of 2018. |
For the Three Months Ended June 30, 2019 | |||||||||||||||||||||
Ending Balance March 31, 2019 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance June 30, 2019 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 7,608 | $ | (48 | ) | $ | 49 | $ | 248 | $ | 7,857 | ||||||||||
SBA | 1,294 | (210 | ) | 4 | 31 | 1,119 | |||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | 46,227 | - | - | 2,060 | 48,287 | ||||||||||||||||
Construction | 864 | - | 3 | 4 | 871 | ||||||||||||||||
SFR mortgage | 2,189 | - | 115 | 19 | 2,323 | ||||||||||||||||
Dairy & livestock and agribusiness | 5,699 | - | 19 | (377 | ) | 5,341 | |||||||||||||||
Municipal lease finance receivables | 738 | - | - | (12 | ) | 726 | |||||||||||||||
Consumer and other loans | 582 | (3 | ) | 2 | 27 | 608 | |||||||||||||||
Total allowance for loan losses | $ | 65,201 | $ | (261 | ) | $ | 192 | $ | 2,000 | $ | 67,132 |
For the Three Months Ended September 30, 2019 | |||||||||||||||||||||
Ending Balance June 30, 2019 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance September 30, | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 7,857 | $ | - | $ | 94 | $ | 287 | $ | 8,238 | |||||||||||
SBA | 1,119 | (65 | ) | - | 412 | 1,466 | |||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | 48,287 | - | - | 624 | 48,911 | ||||||||||||||||
Construction | 871 | - | 3 | 55 | 929 | ||||||||||||||||
SFR mortgage | 2,323 | - | 8 | 44 | 2,375 | ||||||||||||||||
Dairy & livestock and agribusiness | 5,341 | - | - | 88 | 5,429 | ||||||||||||||||
Municipal lease finance receivables | 726 | - | - | (64 | ) | 662 | |||||||||||||||
Consumer and other loans | 608 | (3 | ) | 3 | 54 | 662 | |||||||||||||||
Total allowance for loan losses | $ | 67,132 | $ | (68 | ) | $ | 108 | $ | 1,500 | $ | 68,672 |
For the Three Months Ended June 30, 2018 | |||||||||||||||||||||
Ending Balance March 31, 2018 | Charge-offs | Recoveries | (Recapture of) Provision for Loan Losses | Ending Balance June 30, 2018 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 7,499 | $ | - | $ | 27 | $ | (556 | ) | $ | 6,970 | ||||||||||
SBA | 884 | - | 5 | (48 | ) | 841 | |||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | 41,863 | - | - | 734 | 42,597 | ||||||||||||||||
Construction | 987 | - | 596 | (580 | ) | 1,003 | |||||||||||||||
SFR mortgage | 2,202 | - | - | (47 | ) | 2,155 | |||||||||||||||
Dairy & livestock and agribusiness | 4,666 | - | 19 | (334 | ) | 4,351 | |||||||||||||||
Municipal lease finance receivables | 834 | - | - | (26 | ) | 808 | |||||||||||||||
Consumer and other loans | 688 | (2 | ) | 3 | (47 | ) | 642 | ||||||||||||||
PCI loans | 312 | - | - | (96 | ) | 216 | |||||||||||||||
Total allowance for loan losses | $ | 59,935 | $ | (2 | ) | $ | 650 | $ | (1,000 | ) | $ | 59,583 |
For the Six Months Ended June 30, 2019 | |||||||||||||||||||||
Ending Balance December 31, 2018 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance June 30, 2019 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 7,528 | $ | (48 | ) | $ | 159 | $ | 218 | $ | 7,857 | ||||||||||
SBA | 1,078 | (230 | ) | 9 | 262 | 1,119 | |||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | 45,097 | - | - | 3,190 | 48,287 | ||||||||||||||||
Construction | 981 | - | 6 | (116 | ) | 871 | |||||||||||||||
SFR mortgage | 2,197 | - | 183 | (57 | ) | 2,323 | |||||||||||||||
Dairy & livestock and agribusiness | 5,225 | (78 | ) | 19 | 175 | 5,341 | |||||||||||||||
Municipal lease finance receivables | 775 | - | - | (49 | ) | 726 | |||||||||||||||
Consumer and other loans | 732 | (4 | ) | 3 | (123 | ) | 608 | ||||||||||||||
Total allowance for loan losses | $ | 63,613 | $ | (360 | ) | $ | 379 | $ | 3,500 | $ | 67,132 |
For the Six Months Ended June 30, 2018 | |||||||||||||||||||||
Ending Balance December 31, 2017 | Charge-offs | Recoveries | (Recapture of) Provision for Loan Losses | Ending Balance June 30, 2018 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 7,280 | $ | - | $ | 37 | $ | (347 | ) | $ | 6,970 | ||||||||||
SBA | 869 | - | 10 | (38 | ) | 841 | |||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | 41,722 | - | - | 875 | 42,597 | ||||||||||||||||
Construction | 984 | - | 1,930 | (1,911 | ) | 1,003 | |||||||||||||||
SFR mortgage | 2,112 | - | - | 43 | 2,155 | ||||||||||||||||
Dairy & livestock and agribusiness | 4,647 | - | 19 | (315 | ) | 4,351 | |||||||||||||||
Municipal lease finance receivables | 851 | - | - | (43 | ) | 808 | |||||||||||||||
Consumer and other loans | 753 | (9 | ) | 11 | (113 | ) | 642 | ||||||||||||||
PCI loans | 367 | - | - | (151 | ) | 216 | |||||||||||||||
Total allowance for loan losses | $ | 59,585 | $ | (9 | ) | $ | 2,007 | $ | (2,000 | ) | $ | 59,583 |
For the Three Months Ended September 30, 2018 | |||||||||||||||||||||||
Ending Balance June 30, 2018 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance September 30, 2018 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial and industrial | 6,970 | $ | - | $ | 44 | $ | 477 | $ | 7,491 | ||||||||||||||
SBA | 841 | (257 | ) | 5 | 369 | 958 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Commercial real estate | 42,597 | - | - | (1,056 | ) | 41,541 | |||||||||||||||||
Construction | 1,003 | - | 15 | 115 | 1,133 | ||||||||||||||||||
SFR mortgage | 2,155 | - | - | (30 | ) | 2,125 | |||||||||||||||||
Dairy & livestock and | 4,351 | - | - | 673 | 5,024 | ||||||||||||||||||
Municipal lease finance | 808 | - | - | 7 | 815 | ||||||||||||||||||
Consumer and other loans | 642 | (1 | ) | 118 | (44 | ) | 715 | ||||||||||||||||
PCI loans | 216 | - | - | (11 | ) | 205 | |||||||||||||||||
Total allowance for loan | $ | 59,583 | $ | (258 | ) | $ | 182 | $ | 500 | $ | 60,007 | ||||||||||||
For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Ending Balance December 31, 2018 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance September 30, 2019 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial and industrial | $ | 7,528 | $ | (48 | ) | $ | 253 | $ | 505 | $ | 8,238 | ||||||||||||
SBA | 1,078 | (295 | ) | 9 | 674 | 1,466 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Commercial real estate | 45,097 | - | - | 3,814 | 48,911 | ||||||||||||||||||
Construction | 981 | - | 9 | (61 | ) | 929 | |||||||||||||||||
SFR mortgage | 2,197 | - | 191 | (13 | ) | 2,375 | |||||||||||||||||
Dairy & livestock and | 5,225 | (78 | ) | 19 | 263 | 5,429 | |||||||||||||||||
Municipal lease finance receivables | 775 | - | - | (113 | ) | 662 | |||||||||||||||||
Consumer and other loans | 732 | (7 | ) | 6 | (69 | ) | 662 | ||||||||||||||||
Total allowance for loan | $ | 63,613 | $ | (428 | ) | $ | 487 | $ | 5,000 | $ | 68,672 | ||||||||||||
For the Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Ending Balance December 31, 2017 | Charge-offs | Recoveries | (Recapture of) Provision for Loan Losses | Ending Balance September 30, | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial and industrial | $ | 7,280 | $ | - | $ | 81 | $ | 130 | $ | 7,491 | |||||||||||||
SBA | 869 | (257 | ) | 15 | 331 | 958 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Commercial real estate | 41,722 | - | - | (181 | ) | 41,541 | |||||||||||||||||
Construction | 984 | - | 1,945 | (1,796 | ) | 1,133 | |||||||||||||||||
SFR mortgage | 2,112 | - | - | 13 | 2,125 | ||||||||||||||||||
Dairy & livestock and | 4,647 | - | 19 | 358 | 5,024 | ||||||||||||||||||
Municipal lease finance receivables | 851 | - | - | (36 | ) | 815 | |||||||||||||||||
Consumer and other loans | 753 | (10 | ) | 129 | (157 | ) | 715 | ||||||||||||||||
PCI loans | 367 | - | - | (162 | ) | 205 | |||||||||||||||||
Total allowance for loan losses | $ | 59,585 | $ | (267 | ) | $ | 2,189 | $ | (1,500 | ) | $ | 60,007 |
June 30, 2019 | ||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | |||||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Commercial and industrial | $ | 2,088 | $ | 915,865 | $ | 276 | $ | 7,581 | ||||||||||
SBA | 5,632 | 321,974 | 93 | 1,026 | ||||||||||||||
Real estate: | ||||||||||||||||||
Commercial real estate | 1,531 | 5,415,820 | - | 48,287 | ||||||||||||||
Construction | - | 116,457 | - | 871 | ||||||||||||||
SFR mortgage | 4,858 | 273,427 | - | 2,323 | ||||||||||||||
Dairy & livestock and agribusiness | - | 301,752 | - | 5,341 | ||||||||||||||
Municipal lease finance receivables | - | 59,985 | - | 726 | ||||||||||||||
Consumer and other loans | 397 | 120,382 | 2 | 606 | ||||||||||||||
Total | $ | 14,506 | $ | 7,525,662 | $ | 371 | $ | 66,761 | ||||||||||
September 30, 2019 | ||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | |||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial and industrial | $ | 1,638 | $ | 920,040 | $ | 254 | $ | 7,984 | ||||||||
SBA | 3,248 | 316,323 | 286 | 1,180 | ||||||||||||
Real estate: | ||||||||||||||||
Commercial real estate | 1,500 | 5,374,168 | - | 48,911 | ||||||||||||
Construction | - | 119,931 | - | 929 | ||||||||||||
SFR mortgage | 3,009 | 275,635 | - | 2,375 | ||||||||||||
Dairy & livestock and agribusiness | - | 311,229 | - | 5,429 | ||||||||||||
Municipal lease finance receivables | - | 54,468 | - | 662 | ||||||||||||
Consumer and other loans | 385 | 116,743 | - | 662 | ||||||||||||
Total | $ | 9,780 | $ | 7,488,537 | $ | 540 | $ | 68,132 | ||||||||
September 30, 2018 | |||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | ||||||||||||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 3,168 | $ | 1,018,738 | $ | - | $ | - | $ | 7,491 | $ | - | |||||||||||||
SBA | 3,593 | 353,459 | - | - | 958 | - | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 6,348 | 5,262,392 | - | - | 41,541 | - | |||||||||||||||||||
Construction | - | 123,274 | - | - | 1,133 | - | |||||||||||||||||||
SFR mortgage | 5,492 | 287,024 | - | 13 | 2,112 | - | |||||||||||||||||||
Dairy & livestock and agribusiness | 775 | 303,823 | - | - | 5,024 | - | |||||||||||||||||||
Municipal lease finance receivables | - | 67,581 | - | - | 815 | - | |||||||||||||||||||
Consumer and other loans | 807 | 133,989 | - | 70 | 645 | - | |||||||||||||||||||
PCI loans | - | - | 17,260 | - | - | 205 | |||||||||||||||||||
Total | $ | 20,183 | $ | 7,550,280 | $ | 17,260 | $ | 83 | $ | 59,719 | $ | 205 | |||||||||||||
June 30, 2018 | |||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | ||||||||||||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 355 | $ | 508,833 | $ | - | $ | - | $ | 6,970 | $ | - | |||||||||||||
SBA | 1,174 | 119,874 | - | - | 841 | - | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 7,741 | 3,446,289 | - | - | 42,597 | - | |||||||||||||||||||
Construction | - | 84,400 | - | - | 1,003 | - | |||||||||||||||||||
SFR mortgage | 4,133 | 233,021 | - | 13 | 2,142 | - | |||||||||||||||||||
Dairy & livestock and agribusiness | 800 | 267,689 | - | - | 4,351 | - | |||||||||||||||||||
Municipal lease finance receivables | - | 67,721 | - | - | 808 | - | |||||||||||||||||||
Consumer and other loans | 509 | 60,366 | - | 3 | 639 | - | |||||||||||||||||||
PCI loans | - | - | 19,426 | - | - | 216 | |||||||||||||||||||
Total | $ | 14,712 | $ | 4,788,193 | $ | 19,426 | $ | 16 | $ | 59,351 | $ | 216 |
June 30, 2019 | ||||||||||||||||||||||||
30-59 DaysPast Due | 60-89 DaysPast Due | Total Past Due and Accruing | Nonaccrual (1) (3) | Current | Total Loans and Financing Receivables | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial and industrial | $ | 300 | $ | 10 | $ | 310 | $ | 1,993 | $ | 915,650 | $ | 917,953 | ||||||||||||
SBA | - | - | - | 5,082 | 322,524 | 327,606 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | - | - | - | 502 | 2,093,141 | 2,093,643 | ||||||||||||||||||
Non-owner occupied | - | - | - | 593 | 3,323,115 | 3,323,708 | ||||||||||||||||||
Construction | ||||||||||||||||||||||||
Speculative (2) | - | - | - | - | 93,170 | 93,170 | ||||||||||||||||||
Non-speculative | - | - | - | - | 23,287 | 23,287 | ||||||||||||||||||
SFR mortgage | - | - | - | 2,720 | 275,565 | 278,285 | ||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | 301,752 | 301,752 | ||||||||||||||||||
Municipal lease finance receivables | - | - | - | - | 59,985 | 59,985 | ||||||||||||||||||
Consumer and other loans | 22 | - | 22 | 397 | 120,360 | 120,779 | ||||||||||||||||||
Total gross loans | $ | 322 | $ | 10 | $ | 332 | $ | 11,287 | $ | 7,528,549 | $ | 7,540,168 |
September 30, 2019 | |||||||||||||||||||||||||
30-59 DaysPast Due | 60-89 DaysPast Due | and Accruing | Nonaccrual (1) (3) (4) | Current | Total Loans and Financing Receivables | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 756 | $ | - | $ | 756 | $ | 1,550 | $ | 919,372 | $ | 921,678 | |||||||||||||
SBA | - | 303 | 303 | 2,706 | 316,562 | 319,571 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | - | - | - | 494 | 2,092,597 | 2,093,091 | |||||||||||||||||||
Non-owner occupied | 368 | - | 368 | 589 | 3,281,620 | 3,282,577 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative (2) | - | - | - | - | 105,636 | 105,636 | |||||||||||||||||||
Non-speculative | - | - | - | - | 14,295 | 14,295 | |||||||||||||||||||
- | - | - | 888 | 277,756 | 278,644 | ||||||||||||||||||||
Dairy & livestock and | - | - | - | - | 311,229 | 311,229 | |||||||||||||||||||
Municipal lease finance | - | - | - | - | 54,468 | 54,468 | |||||||||||||||||||
Consumer and other loans | - | - | - | 385 | 116,743 | 117,128 | |||||||||||||||||||
Total gross loans | $ | 1,124 | $ | 303 | $ | 1,427 | $ | 6,612 | $ | 7,490,278 | $ | 7,498,317 |
(1) | As of September 30, 2019, 30-59 days past due, 60-89 days past due, and |
(2) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
(3) | Includes |
December 31, 2018 (1) | |||||||||||||||||||||||||
30-59 DaysPast Due | 60-89 DaysPast Due | Total Past Due and Accruing | Nonaccrual (2) (4) | Current | Total Loans and Financing Receivables | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 820 | $ | 89 | $ | 909 | $ | 7,490 | $ | 993,810 | $ | 1,002,209 | |||||||||||||
SBA | 1,172 | 135 | 1,307 | 2,892 | 345,844 | 350,043 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 2,439 | 350 | 2,789 | 589 | 2,114,612 | 2,117,990 | |||||||||||||||||||
Non-owner occupied | - | - | - | 5,479 | 3,270,760 | 3,276,239 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative (3) | - | - | - | - | 118,233 | 118,233 | |||||||||||||||||||
Non-speculative | - | - | - | - | 4,549 | 4,549 | |||||||||||||||||||
SFR mortgage | - | 285 | 285 | 2,937 | 293,282 | 296,504 | |||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | 78 | 393,765 | 393,843 | |||||||||||||||||||
Municipal lease finance receivables | - | - | - | - | 64,186 | 64,186 | |||||||||||||||||||
Consumer and other loans | - | - | - | 486 | 127,943 | 128,429 | |||||||||||||||||||
Total gross loans | $ | 4,431 | $ | 859 | $ | 5,290 | $ | 19,951 | $ | 7,726,984 | $ | 7,752,225 |
(4) | Excludes $1.6 million of guaranteed portion of nonaccrual SBA loans that are in process of collection. |
December 31, 2018 (1) | |||||||||||||||||||||||||
30-59 DaysPast Due | 60-89 DaysPast Due | Total Past Due and Accruing | Nonaccrual (2) (4) | Current | Total Loans and Financing Receivables | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 820 | $ | 89 | $ | 909 | $ | 7,490 | $ | 993,810 | $ | 1,002,209 | |||||||||||||
SBA | 1,172 | 135 | 1,307 | 2,892 | 345,844 | 350,043 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 2,439 | 350 | 2,789 | 589 | 2,114,612 | 2,117,990 | |||||||||||||||||||
Non-owner occupied | - | - | - | 5,479 | 3,270,760 | 3,276,239 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative (3) | - | - | - | - | 118,233 | 118,233 | |||||||||||||||||||
Non-speculative | - | - | - | - | 4,549 | 4,549 | |||||||||||||||||||
SFR mortgage | - | 285 | 285 | 2,937 | 293,282 | 296,504 | |||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | 78 | 393,765 | 393,843 | |||||||||||||||||||
Municipal lease finance receivables | - | - | - | - | 64,186 | 64,186 | |||||||||||||||||||
Consumer and other loans | - | - | - | 486 | 127,943 | 128,429 | |||||||||||||||||||
$ | 4,431 | $ | 859 | $ | 5,290 | $ | 19,951 | $ | 7,726,984 | $ | 7,752,225 |
(1) | Excludes PCI loans. |
(2) | As of December 31, 2018, $2.3 million of nonaccruing loans were current, $33,000 were 30-59 days past due, $57,000 were60-89 days past due and $17.6 million were 90+ days past due. |
(3) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
(4) | Includes $12.3 million of nonaccrual loans acquired from CB in the third quarter of 2018. |
As of and For the Six Months Ended June 30, 2019 | |||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | $ | 898 | $ | 1,033 | $ | - | $ | 1,022 | $ | 2 | |||||||||||
SBA | 4,369 | 5,714 | - | 3,703 | 21 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 502 | 616 | - | 515 | - | ||||||||||||||||
Non-owner occupied | 1,029 | 1,209 | - | 1,068 | 14 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 4,858 | 5,467 | - | 4,893 | 42 | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 395 | 518 | - | 407 | - | ||||||||||||||||
Total | 12,051 | 14,557 | - | 11,608 | 79 | ||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | 1,190 | 1,263 | 276 | 1,251 | - | ||||||||||||||||
SBA | 1,263 | 1,534 | 93 | 1,179 | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | - | - | - | - | - | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | - | - | - | - | - | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 2 | 3 | 2 | 2 | - | ||||||||||||||||
Total | 2,455 | 2,800 | 371 | 2,432 | - | ||||||||||||||||
Total impaired loans | $ | 14,506 | $ | 17,357 | $ | 371 | $ | 14,040 | $ | 79 | |||||||||||
As of and For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | $ | 1,382 | $ | 1,537 | $ | - | $ | 1,560 | $ | 4 | |||||||||||
SBA | 2,447 | 3,554 | - | 2,606 | 31 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 494 | 614 | - | 508 | - | ||||||||||||||||
Non-owner occupied | 1,006 | 1,190 | - | 1,052 | 21 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 3,009 | 3,338 | - | 3,059 | 62 | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 385 | 516 | - | 401 | - | ||||||||||||||||
Total | 8,723 | 10,749 | - | 9,186 | 118 | ||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | 256 | 345 | 254 | 829 | - | ||||||||||||||||
SBA | 801 | 816 | 286 | 816 | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | - | - | - | - | - | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | - | - | - | - | - | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | - | - | - | - | - | ||||||||||||||||
Total | 1,057 | 1,161 | 540 | 1,645 | - | ||||||||||||||||
Total impaired loans | $ | 9,780 | $ | 11,910 | $ | 540 | $ | 10,831 | $ | 118 | |||||||||||
As of and For the Six Months Ended June 30, 2018 (1) | |||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | $ | 355 | $ | 864 | $ | - | $ | 378 | $ | 4 | |||||||||||
SBA | 1,174 | 1,302 | - | 1,204 | 23 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 4,294 | 4,747 | - | 4,331 | - | ||||||||||||||||
Non-owner occupied | 3,447 | 4,894 | - | 3,565 | 44 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 4,120 | 4,860 | - | 4,159 | 55 | ||||||||||||||||
Dairy & livestock and agribusiness | 800 | 1,091 | - | 819 | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 506 | 716 | - | 568 | - | ||||||||||||||||
Total | 14,696 | 18,474 | - | 15,024 | 126 | ||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | ||||||||||||||||
SBA | - | - | - | - | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | - | - | - | - | - | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 13 | 13 | 13 | 13 | - | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 3 | 3 | 3 | 3 | - | ||||||||||||||||
Total | 16 | 16 | 16 | 16 | - | ||||||||||||||||
Total impaired loans | $ | 14,712 | $ | 18,490 | $ | 16 | $ | 15,040 | $ | 126 | |||||||||||
As of and For the Nine Months Ended September 30, 2018 (1) | |||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | $ | 3,168 | $ | 3,829 | $ | - | $ | 3,439 | $ | 6 | |||||||||||
SBA | 3,593 | 5,779 | - | 4,457 | 34 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 615 | 726 | - | 644 | - | ||||||||||||||||
Non-owner occupied | 5,733 | 6,385 | - | 5,904 | 24 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 5,479 | 6,449 | - | 5,679 | 59 | ||||||||||||||||
Dairy & livestock and agribusiness | 775 | 1,091 | - | 808 | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 737 | 1,025 | - | 867 | - | ||||||||||||||||
Total | 20,100 | 25,284 | - | 21,798 | 123 | ||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | ||||||||||||||||
SBA | - | - | - | - | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | - | - | - | - | - | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 13 | 13 | 13 | 13 | - | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 70 | 101 | 70 | 85 | - | ||||||||||||||||
Total | 83 | 114 | 83 | 98 | - | ||||||||||||||||
Total impaired loans | $ | 20,183 | $ | 25,398 | $ | 83 | $ | 21,896 | $ | 123 | |||||||||||
As of December 31, 2018 (1) | |||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||
(Dollars in thousands) | |||||||||||||
With no related allowance recorded: | |||||||||||||
Commercial and industrial | $ | 7,436 | $ | 11,457 | $ | - | |||||||
SBA | 3,467 | 5,746 | - | ||||||||||
Real estate: | |||||||||||||
Commercial real estate | |||||||||||||
Owner occupied | 589 | 705 | - | ||||||||||
Non-owner occupied | 2,808 | 4,324 | - | ||||||||||
Construction | |||||||||||||
Speculative | - | - | - | ||||||||||
Non-speculative | - | - | - | ||||||||||
SFR mortgage | 5,349 | 6,270 | - | ||||||||||
Dairy & livestock and agribusiness | - | - | - | ||||||||||
Municipal lease finance receivables | - | - | - | ||||||||||
Consumer and other loans | 418 | 526 | - | ||||||||||
Total | 20,067 | 29,028 | - | ||||||||||
With a related allowance recorded: | |||||||||||||
Commercial and industrial | 189 | 191 | 3 | ||||||||||
SBA | - | - | - | ||||||||||
Real estate: | |||||||||||||
Commercial real estate | |||||||||||||
Owner occupied | - | - | - | ||||||||||
Non-owner occupied | 3,143 | 3,144 | 478 | ||||||||||
Construction | |||||||||||||
Speculative | - | - | - | ||||||||||
Non-speculative | - | - | - | ||||||||||
SFR mortgage | - | - | - | ||||||||||
Dairy & livestock and agribusiness | 78 | 78 | 12 | ||||||||||
Municipal lease finance receivables | - | - | - | ||||||||||
Consumer and other loans | 68 | 100 | 68 | ||||||||||
Total | 3,478 | 3,513 | 561 | ||||||||||
Total impaired loans | $ | 23,545 | $ | 32,541 | $ | 561 |
(1) | Excludes PCI loans. |
As of December 31, 2018 (1) | |||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||
(Dollars in thousands) | |||||||||||||
With no related allowance recorded: | |||||||||||||
Commercial and industrial | $ | 7,436 | $ | 11,457 | $ | - | |||||||
SBA | 3,467 | 5,746 | - | ||||||||||
Real estate: | |||||||||||||
Commercial real estate | |||||||||||||
Owner occupied | 589 | 705 | - | ||||||||||
Non-owner occupied | 2,808 | 4,324 | - | ||||||||||
Construction | |||||||||||||
Speculative | - | - | - | ||||||||||
Non-speculative | - | - | - | ||||||||||
SFR mortgage | 5,349 | 6,270 | - | ||||||||||
Dairy & livestock and agribusiness | - | - | - | ||||||||||
Municipal lease finance receivables | - | - | - | ||||||||||
Consumer and other loans | 418 | 526 | - | ||||||||||
Total | 20,067 | 29,028 | - | ||||||||||
With a related allowance recorded: | |||||||||||||
Commercial and industrial | 189 | 191 | 3 | ||||||||||
SBA | - | - | - | ||||||||||
Real estate: | |||||||||||||
Commercial real estate | |||||||||||||
Owner occupied | - | - | - | ||||||||||
Non-owner occupied | 3,143 | 3,144 | 478 | ||||||||||
Construction | |||||||||||||
Speculative | - | - | - | ||||||||||
Non-speculative | - | - | - | ||||||||||
SFR mortgage | - | - | - | ||||||||||
Dairy & livestock and agribusiness | 78 | 78 | 12 | ||||||||||
Municipal lease finance receivables | - | - | - | ||||||||||
Consumer and other loans | 68 | 100 | 68 | ||||||||||
Total | 3,478 | 3,513 | 561 | ||||||||||
Total impaired loans | $ | 23,545 | $ | 32,541 | $ | 561 | |||||||
(1) | Excludes PCI loans. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2019 | 2018 (1) | 2019 | 2018 (1) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Performing TDRs: | ||||||||||||||||
Beginning balance | $ | 3,299 | $ | 4,285 | $ | 3,594 | $ | 4,809 | ||||||||
New modifications | - | 311 | - | 311 | ||||||||||||
Payoffs/payments, net and other | (80 | ) | (66 | ) | (375 | ) | (590 | ) | ||||||||
TDRs returned to accrual status | - | - | - | - | ||||||||||||
TDRs placed on nonaccrual status | - | - | - | - | ||||||||||||
Ending balance | $ | 3,219 | $ | 4,530 | $ | 3,219 | $ | 4,530 | ||||||||
Nonperforming TDRs: | ||||||||||||||||
Beginning balance | $ | 277 | $ | 3,909 | $ | 3,509 | $ | 4,200 | ||||||||
New modifications | - | 38 | - | 38 | ||||||||||||
Charge-offs | - | - | (78 | ) | - | |||||||||||
Transfer to OREO | - | - | (2,275 | ) | - | |||||||||||
Payoffs/payments, net and other | (14 | ) | (55 | ) | (893 | ) | (346 | ) | ||||||||
TDRs returned to accrual status | - | - | - | - | ||||||||||||
TDRs placed on nonaccrual status | - | - | - | - | ||||||||||||
Ending balance | $ | 263 | $ | 3,892 | $ | 263 | $ | 3,892 | ||||||||
Total TDRs | $ | 3,482 | $ | 8,422 | $ | 3,482 | $ | 8,422 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Performing TDRs: | ||||||||||||||||
Beginning balance | $ | 3,219 | $ | 4,530 | $ | 3,594 | $ | 4,809 | ||||||||
New modifications | - | - | - | 311 | ||||||||||||
Payoffs/payments, net and other | (51 | ) | (777 | ) | (426 | ) | (1,367 | ) | ||||||||
TDRs returned to accrual status | - | - | - | - | ||||||||||||
TDRs placed on nonaccrual status | - | - | - | - | ||||||||||||
Ending balance | $ | 3,168 | $ | 3,753 | $ | 3,168 | $ | 3,753 | ||||||||
Nonperforming TDRs: | ||||||||||||||||
Beginning balance | $ | 263 | $ | 3,892 | $ | 3,509 | $ | 4,200 | ||||||||
New modifications | - | 278 | - | 316 | ||||||||||||
Charge-offs | - | - | (78 | ) | - | |||||||||||
Transfer to OREO | - | - | (2,275 | ) | - | |||||||||||
Payoffs/payments, net and other | (14 | ) | (650 | ) | (907 | ) | (996 | ) | ||||||||
TDRs returned to accrual status | - | - | - | - | ||||||||||||
TDRs placed on nonaccrual status | - | - | - | - | ||||||||||||
Ending balance | $ | 249 | $ | 3,520 | $ | 249 | $ | 3,520 | ||||||||
Total TDRs | $ | 3,417 | $ | 7,273 | $ | 3,417 | $ | 7,273 |
(1) | Excludes PCI loans. |
For the Three Months Ended June 30, 2018 (2) | |||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Outstanding Recorded Investment at June 30, 2018 | Financial Effect Resulting From Modifications (3) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||
Interest rate reduction | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Change in amortization period or maturity | 1 | 38 | 38 | 31 | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Owner occupied | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | ||||||||||||||||
SFR mortgage: | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period or maturity | 1 | 311 | 311 | 307 | - | ||||||||||||||||
Consumer: | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | ||||||||||||||||
Total loans | 2 | $ | 349 | $ | 349 | $ | 338 | $ | - | ||||||||||||
For the Three Months Ended September 30, 201 8 (2) | |||||||||||||||||||||
Loans | Outstanding Recorded Investment | Outstanding Recorded Investment | Outstanding Recorded Investment at September 30, 2018 | Financial Effect Resulting From Modifications (3) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||
Interest rate reduction | - | $ | - | - | - | - | |||||||||||||||
Change in amortization period | - | - | - | - | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Owner occupied | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period | - | - | - | - | - | ||||||||||||||||
SFR mortgage: | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period | - | - | - | - | - | ||||||||||||||||
Consumer: | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period | 1 | 278 | 278 | 272 | - | ||||||||||||||||
Total loans | 1 | $ | 278 | $ | 278 | $ | 272 | $ | - |
For the Nine Months Ended September 30, 2018 (2) | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Outstanding Recorded Investment at September 30, 2018 | Financial Effect Resulting From Modifications (3) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||
Interest rate reduction | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Change in amortization period or maturity | 1 | 38 | 38 | 27 | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Non-owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
SFR mortgage: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 311 | 311 | 304 | - | |||||||||||||||
Consumer: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 278 | 278 | 272 | - | |||||||||||||||
Total loans | 3 | $ | 627 | $ | 627 | $ | 603 | $ | - | |||||||||||
For the Six Months Ended June 30, 2018 (2) | |||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Outstanding Recorded Investment at June 30, 2018 | Financial Effect Resulting From Modifications (3) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||
Interest rate reduction | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Change in amortization period or maturity | 1 | 38 | 38 | 31 | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Owner occupied | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | ||||||||||||||||
SFR mortgage: | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period or maturity | 1 | 311 | 311 | 307 | - | ||||||||||||||||
Consumer: | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | ||||||||||||||||
Total loans | 2 | $ | 349 | $ | 349 | $ | 338 | $ | - | ||||||||||||
(1) | The tables above exclude modified loans that were paid off prior to the end of the period. |
(2) | Excludes PCI loans. |
(3) | Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date. |
7. | EARNINGS PER SHARE RECONCILIATION |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended S 30,eptember | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||
Net earnings | $ | 54,481 | $ | 35,373 | $ | 106,123 | $ | 70,286 | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | ||||||||||||||||
Less: Net earnings allocated to restricted stock | 134 | 94 | 276 | 202 | 116 | 96 | 390 | 298 | ||||||||||||||||||||||||
Net earnings allocated to common shareholders | $ | 54,347 | $ | 35,279 | $ | 105,847 | $ | 70,084 | $ | 50,307 | $ | 38,462 | $ | 156,156 | $ | 108,546 | ||||||||||||||||
Weighted average shares outstanding | 139,748 | 109,983 | 139,682 | 109,921 | 139,824 | 126,574 | 139,730 | 115,533 | ||||||||||||||||||||||||
Basic earnings per common share | $ | 0.39 | $ | 0.32 | $ | 0.76 | $ | 0.64 | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 | ||||||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||||||||||||||
Net income allocated to common shareholders | 54,347 | 35,279 | 105,847 | 70,084 | 50,307 | 38,462 | 156,156 | 108,546 | ||||||||||||||||||||||||
Weighted average shares outstanding | 139,748 | 109,983 | 139,682 | 109,921 | 139,824 | 126,574 | 139,730 | 115,533 | ||||||||||||||||||||||||
Incremental shares from assumed exercise of outstanding options | 149 | 372 | 179 | 418 | 151 | 363 | 217 | 397 | ||||||||||||||||||||||||
Diluted weighted average shares outstanding | 139,897 | 110,355 | 139,861 | 110,339 | 139,975 | 126,937 | 139,947 | 115,930 | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.39 | $ | 0.32 | $ | 0.76 | $ | 0.64 | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 | ||||||||||||||||
8. | FAIR VALUE INFORMATION |
Carrying Value at | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||||||||
June 30, 2019 | (Level 1) | (Level 2) | (Level 3) | Carrying Value at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other (Level 2) | Significant (Level 3) | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Description of assets | ||||||||||||||||||||||||||||||||
Investment securities - AFS: | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,362,249 | $ | - | $ | 1,362,249 | $ | - | $ | 1,146,159 | $ | - | $ | 1,146,159 | $ | - | ||||||||||||||||
CMO/REMIC - residential | 194,976 | - | 194,976 | - | 382,928 | - | 382,928 | - | ||||||||||||||||||||||||
Municipal bonds | 41,986 | - | 41,986 | - | 40,487 | - | 40,487 | - | ||||||||||||||||||||||||
Other securities | 809 | - | 809 | - | 832 | - | 832 | - | ||||||||||||||||||||||||
Total investment securities - AFS | 1,600,020 | - | 1,600,020 | - | 1,570,406 | - | 1,570,406 | - | ||||||||||||||||||||||||
Interest rate swaps | 10,744 | - | 10,744 | - | 16,180 | - | 16,180 | - | ||||||||||||||||||||||||
Total assets | $ | 1,610,764 | $ | - | $ | 1,610,764 | $ | - | $ | 1,586,586 | $ | - | $ | 1,586,586 | $ | - | ||||||||||||||||
Description of liability | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 10,744 | $ | - | $ | 10,744 | $ | - | $ | 16,180 | $ | - | $ | 16,180 | $ | - | ||||||||||||||||
Total liabilities | $ | 10,744 | $ | - | $ | 10,744 | $ | - | $ | 16,180 | $ | - | $ | 16,180 | $ | - | ||||||||||||||||
Carrying Value at | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||||||||
December 31, 2018 | (Level 1) | (Level 2) | (Level 3) | Carrying Value at December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Description of assets | ||||||||||||||||||||||||||||||||
Investment securities - AFS: | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,474,508 | $ | - | $ | 1,474,508 | $ | - | $ | 1,474,508 | $ | - | $ | 1,474,508 | $ | - | ||||||||||||||||
CMO/REMIC - residential | 214,051 | - | 214,051 | - | 214,051 | - | 214,051 | - | ||||||||||||||||||||||||
Municipal bonds | 44,810 | - | 44,810 | - | 44,810 | - | 44,810 | - | ||||||||||||||||||||||||
Other securities | 716 | - | 716 | - | 716 | - | 716 | - | ||||||||||||||||||||||||
Total investment securities - AFS | 1,734,085 | - | 1,734,085 | - | 1,734,085 | - | 1,734,085 | - | ||||||||||||||||||||||||
Interest rate swaps | 1,938 | - | 1,938 | - | 1,938 | - | 1,938 | - | ||||||||||||||||||||||||
Total assets | $ | 1,736,023 | $ | - | $ | 1,736,023 | $ | - | $ | 1,736,023 | $ | - | $ | 1,736,023 | $ | - | ||||||||||||||||
Description of liability | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 1,938 | $ | - | $ | 1,938 | $ | - | $ | 1,938 | $ | - | $ | 1,938 | $ | - | ||||||||||||||||
Total liabilities | $ | 1,938 | $ | - | $ | 1,938 | $ | - | $ | 1,938 | $ | - | $ | 1,938 | $ | - | ||||||||||||||||
Carrying Value at September 30, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses For the Nine Months Ended September 30, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans, excluding loans: | ||||||||||||||||||||
Commercial and industrial | $ | 256 | $ | - | $ | - | $ | 256 | $ | 254 | ||||||||||
SBA | 938 | - | - | 938 | 516 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | - | - | - | - | - | |||||||||||||||
Other real estate owned | 444 | - | - | 444 | 64 | |||||||||||||||
Asset held-for-sale | - | - | - | - | - | |||||||||||||||
Total assets | $ | 1,638 | $ | - | $ | - | $ | 1,638 | $ | 834 | ||||||||||
Carrying Value at December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses For the Year Ended December 31, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans, excluding loans: | ||||||||||||||||||||
Commercial and industrial | $ | 189 | - | $ | - | $ | 189 | $ | 3 | |||||||||||
SBA | - | - | - | - | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 3,143 | - | - | 3,143 | 478 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | 78 | - | - | 78 | 12 | |||||||||||||||
Consumer and other loans | 68 | - | - | 68 | 68 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Asset held-for-sale | - | - | - | - | - | |||||||||||||||
Total assets | $ | 3,478 | $ | - | $ | - | $ | 3,478 | $ | 561 |
Carrying Value at June 30, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses For the Six Months Ended June 30, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans, excluding PCI loans: | ||||||||||||||||||||
Commercial and industrial | $ | 1,190 | $ | - | $ | - | $ | 1,190 | $ | 276 | ||||||||||
SBA | 1,153 | - | - | 1,153 | 323 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 2 | - | - | 2 | 2 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Asset held-for-sale | - | - | - | - | - | |||||||||||||||
Total assets | $ | 2,345 | $ | - | $ | - | $ | 2,345 | $ | 601 | ||||||||||
Carrying Value at December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses For the Year Ended December 31, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans, excluding PCI loans: | ||||||||||||||||||||
Commercial and industrial | $ | 189 | $ | - | $ | - | $ | 189 | $ | 3 | ||||||||||
SBA | - | - | - | - | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 3,143 | - | - | 3,143 | 478 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | 78 | - | - | 78 | 12 | |||||||||||||||
Consumer and other loans | 68 | - | - | 68 | 68 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Asset held-for-sale | - | - | - | - | - | |||||||||||||||
Total assets | $ | 3,478 | $ | - | $ | - | $ | 3,478 | $ | 561 | ||||||||||
June 30, 2019 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 175,840 | $ | 175,840 | $ | - | $ | - | $ | 175,840 | |||||||||||
Interest-earning balances due from depositoryinstitutions | 6,425 | - | 6,295 | - | 6,295 | ||||||||||||||||
Investment securities available-for-sale | 1,600,020 | - | 1,600,020 | - | 1,600,020 | ||||||||||||||||
Investment securities held-to-maturity | 728,113 | - | 729,032 | - | 729,032 | ||||||||||||||||
Total loans, net of allowance for loan losses | 7,468,558 | - | - | 7,433,835 | 7,433,835 | ||||||||||||||||
Swaps | 10,744 | - | 10,744 | - | 10,744 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing | $ | 3,412,588 | $ | - | $ | 3,409,516 | $ | - | $ | 3,409,516 | |||||||||||
Borrowings | 421,271 | - | 420,841 | - | 420,841 | ||||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 20,703 | 20,703 | ||||||||||||||||
Swaps | 10,744 | - | 10,744 | - | 10,744 | ||||||||||||||||
December 31, 2018 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and due from banks | $ | 163,948 | $ | 163,948 | $ | - | $ | - | $ | 163,948 | |||||||||||
Interest-earning balances due from depository institutions | 7,670 | - | 7,339 | - | 7,339 | ||||||||||||||||
Investment securities available-for-sale | 1,734,085 | - | 1,734,085 | - | 1,734,085 | ||||||||||||||||
Investment securities held-to-maturity | 744,440 | - | 721,537 | - | 721,537 | ||||||||||||||||
Total loans, net of allowance for loan losses | 7,700,998 | - | - | 7,514,964 | 7,514,964 | ||||||||||||||||
Swaps | 1,938 | - | 1,938 | - | 1,938 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing | $ | 3,622,703 | $ | - | $ | 3,614,682 | $ | - | $ | 3,614,682 | |||||||||||
Borrowings | 722,255 | - | 721,601 | - | 721,601 | ||||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 21,176 | 21,176 | ||||||||||||||||
Swaps | 1,938 | - | 1,938 | - | 1,938 |
September 30, 2019 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 437,548 | $ | 437,548 | $ | - | $ | - | $ | 437,548 | |||||||||||
Interest-earning balances due from depository institutions | 5,673 | - | 5,793 | - | 5,793 | ||||||||||||||||
Investment securities available-for-sale | 1,570,406 | - | 1,570,406 | - | 1,570,406 | ||||||||||||||||
Investment securities held-to-maturity | 703,953 | - | 711,891 | - | 711,891 | ||||||||||||||||
Total loans, net of allowance for loan losses | 7,425,779 | - | - | 7,385,760 | 7,385,760 | ||||||||||||||||
Swaps | 16,180 | - | 16,180 | - | 16,180 | ||||||||||||||||
Liabilities | �� | ||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing | $ | 3,409,226 | $ | - | $ | 3,407,573 | $ | - | $ | 3,407,573 | |||||||||||
Borrowings | 412,764 | - | 412,372 | - | 412,372 | ||||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 20,266 | 20,266 | ||||||||||||||||
Swaps | 16,180 | - | 16,180 | - | 16,180 | ||||||||||||||||
December 31, 2018 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 163,948 | $ | 163,948 | $ | - | $ | - | $ | 163,948 | |||||||||||
Interest-earning balances due from depository institutions | 7,670 | - | 7,339 | - | 7,339 | ||||||||||||||||
Investment securities available-for-sale | 1,734,085 | - | 1,734,085 | - | 1,734,085 | ||||||||||||||||
Investment securities held-to-maturity | 744,440 | - | 721,537 | - | 721,537 | ||||||||||||||||
Total loans, net of allowance for loan losses | 7,700,998 | - | - | 7,514,964 | 7,514,964 | ||||||||||||||||
Swaps | 1,938 | - | 1,938 | - | 1,938 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing | $ | 3,622,703 | $ | - | $ | 3,614,682 | $ | - | $ | 3,614,682 | |||||||||||
Borrowings | 722,255 | - | 721,601 | - | 721,601 | ||||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 21,176 | 21,176 | ||||||||||||||||
Swaps | 1,938 | - | 1,938 | - | 1,938 |
9. | DERIVATIVE FINANCIAL INSTRUMENTS |
June 30, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | 10,744 | Other liabilities | $ | 10,744 | Other assets | $ | 16,180 | Other liabilities | $ | 16,180 | ||||||||||||||||||||
Total derivatives | $ | 10,744 | $ | 10,744 | $ | 16,180 | $ | 16,180 | ||||||||||||||||||||||||
December 31, 2018 | December 31, 2018 | |||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | 1,938 | Other liabilities | $ | 1,938 | Other assets | $ | 1,938 | Other liabilities | $ | 1,938 | ||||||||||||||||||||
Total derivatives | $ | 1,938 | $ | 1,938 | $ | 1,938 | $ | 1,938 | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Income on Derivative Instruments | Amount of Gain Recognized in Income on Derivative Instruments | Location of Gain Recognized in Instruments | Amount of Gain Recognized in Income on Derivative Instruments | ||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Other income | $ | 373 | $ | 151 | $ | 757 | $ | 267 | Other income | $ | 378 | $ | 73 | $ | 1,135 | $ | 340 | ||||||||||||||||||||||
Total | $ | 373 | $ | 151 | $ | 757 | $ | 267 | $ | 378 | $ | 73 | $ | 1,135 | $ | 340 | ||||||||||||||||||||||||
10. | OTHER COMPREHENSIVE INCOME |
For the Three Months Ended June 30, | For the Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 19,564 | $ | (5,784 | ) | $ | 13,780 | $ | (5,773 | ) | $ | 1,707 | $ | (4,066 | ) | $ | 5,672 | $ | (1,677 | ) | $ | 3,995 | $ | (10,235 | ) | $ | 3,025 | $ | (7,210 | ) | |||||||||||||||||||
Net realized gain reclassified into earnings (1) | (5) | 1 | (4 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Amortization of unrealized losses on securities transferred from available-for-sale toheld-to-maturity | (78 | ) | 23 | (55 | ) | (825 | ) | 244 | (581 | ) | (249 | ) | 74 | (175 | ) | (152) | 45 | (107 | ) | ||||||||||||||||||||||||||||||
Net change | $ | 19,486 | $ | (5,761 | ) | $ | 13,725 | $ | (6,598 | ) | $ | 1,951 | $ | (4,647 | ) | $ | 5,418 | $ | (1,602 | ) | $ | 3,816 | $ | (10,387) | $ | 3,070 | $ | (7,317 | ) | ||||||||||||||||||||
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 38,914 | $ | (11,504 | ) | $ | 27,410 | $ | (37,111 | ) | $ | 10,972 | $ | (26,139 | ) | $ | 44,586 | $ | (13,181 | ) | $ | 31,405 | $ | (47,346 | ) | $ | 13,997 | $ | (33,349 | ) | |||||||||||||||||||
Net realized gain reclassified into earnings (1) | (5 | ) | 1 | (4 | ) | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Amortization of unrealized losses on securities transferred from available-for-sale toheld-to-maturity | (1,201 | ) | 355 | (846 | ) | (1,657 | ) | 490 | (1,167 | ) | (1,450 | ) | 429 | (1,021 | ) | (1,809 | ) | 535 | (1,274 | ) | |||||||||||||||||||||||||||||
Net change | $ | 37,713 | $ | (11,149 | ) | $ | 26,564 | $ | (38,768 | ) | $ | 11,462 | $ | (27,306 | ) | $ | 43,131 | $ | (12,751 | ) | $ | 30,380 | $ | (49,155 | ) | $ | 14,532 | $ | (34,623 | ) |
Included in other noninterest income. |
11. | BALANCE SHEET OFFSETTING |
Gross Amounts Recognized in | Gross Amounts Offset in the | Net Amounts Presented in the | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||
the Condensed Consolidated Balance Sheets | Condensed Consolidated Balance Sheets | Condensed Consolidated Balance Sheets | Financial Instruments | Collateral Pledged | Net Amount | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 10,744 | $ | - | $ | - | $ | 10,744 | $ | - | $ | 10,744 | |||||||||||||
Total | $ | 10,744 | $ | - | $ | - | $ | 10,744 | $ | - | $ | 10,744 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 10,851 | $ | (107 | ) | $ | 10,744 | $ | 107 | $ | (14,962 | ) | $ | (4,111 | ) | ||||||||||
Repurchase agreements | 421,271 | - | 421,271 | - | (424,648 | ) | (3,377 | ) | |||||||||||||||||
Total | $ | 432,122 | $ | (107 | ) | $ | 432,015 | $ | 107 | $ | (439,610 | ) | $ | (7,488 | ) | ||||||||||
December 31, 2018 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 1,938 | $ | - | $ | - | $ | 1,938 | $ | - | $ | 1,938 | |||||||||||||
Total | $ | 1,938 | $ | - | $ | - | $ | 1,938 | $ | - | $ | 1,938 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 4,203 | $ | (2,265 | ) | $ | 1,938 | $ | 2,265 | $ | - | $ | 4,203 | ||||||||||||
Repurchase agreements | 442,255 | - | 442,255 | - | (487,607 | ) | (45,352 | ) | |||||||||||||||||
Total | $ | 446,458 | $ | (2,265 | ) | $ | 444,193 | $ | 2,265 | $ | (487,607 | ) | $ | (41,149 | ) |
Gross Amounts Recognized in the Condensed Consolidated Balance Sheets | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Presented in the Condensed Consolidated Balance Sheets | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||
Financial | Collateral Pledged | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 16,180 | $ | - | $ | - | $ | 16,180 | $ | - | $ | 16,180 | |||||||||||||
Total | $ | 16,180 | $ | - | $ | - | $ | 16,180 | $ | - | $ | 16,180 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 16,182 | $ | (2 | ) | $ | 16,180 | $ | 2 | $ | (22,335 | ) | $ | (6,153 | ) | ||||||||||
Repurchase agreements | 407,850 | - | 407,850 | - | (419,465 | ) | (11,615 | ) | |||||||||||||||||
Total | $ | 424,032 | $ | (2 | ) | $ | 424,030 | $ | 2 | $ | (441,800 | ) | $ | (17,768 | ) | ||||||||||
December 31, 2018 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 1,938 | $ | - | $ | - | $ | 1,938 | $ | - | $ | 1,938 | |||||||||||||
Total | $ | 1,938 | $ | - | $ | - | $ | 1,938 | $ | - | $ | 1,938 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 4,203 | $ | (2,265 | ) | $ | 1,938 | $ | 2,265 | $ | - | $ | 4,203 | ||||||||||||
Repurchase agreements | 442,255 | - | 442,255 | - | (487,607 | ) | (45,352 | ) | |||||||||||||||||
Total | $ | 446,458 | $ | (2,265 | ) | $ | $ | $ | ) | $ | (41,149 | ) | |||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||
June 30, 2019 | ||||||||
(Dollars in thousands) | ||||||||
Lease Cost | ||||||||
Operating lease expense (1) | $ | 1,906 | $ | 4,006 | ||||
Sublease income | - | - | ||||||
Total lease expense | $ | 1,906 | $ | 4,006 | ||||
Other Information | ||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash outflows from operating leases | $ | 2,113 | $ | 4,859 |
12. | LEASES |
As of September 30, 2019 | ||||
(Dollars in thousands) | ||||
Lease Assets and Liabilities | ||||
ROU assets | $ | 17,340 | ||
Total lease liabilities | 20,558 |
For the Three Months Ended | For the Nine Months Ended | |||||||
September 30, 2019 | ||||||||
(Dollars in thousands) | ||||||||
Lease Cost | ||||||||
Operating lease expense (1) | $ | 1,628 | $ | 5,634 | ||||
Total lease expense | $ | 1,628 | $ | 5,634 | ||||
(1) Includes short-term leases and variable lease costs, which are immaterial. | ||||||||
Other Information | ||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash outflows from operating leases, net | $ | 1,640 | $ | 6,499 | ||||
Lease Term and Discount Rate | ||||||||
As of September 30, 2019 | ||||||||
Weighted average remaining lease term (years) | 4.26 | |||||||
Weighted average discount rate | 3.46% |
As of September 30, 2019 | |||||
(Dollars in thousands) | |||||
Year: | |||||
2019 (excluding the nine months endedSeptember 30, 2019) | $ | 1,973 | |||
2020 | 6,941 | ||||
2021 | 5,178 | ||||
2022 | 4,005 | ||||
2023 | 2,336 | ||||
Thereafter | 3,100 | ||||
Total future lease payments | 23,533 | ||||
Less: Imputed interest | (2,975 | ) | |||
Present value of lease liabilities | $ | 20,558 | |||
As of June 30, 2019 | ||||
(Dollars in thousands) | ||||
Year: | ||||
2019 (excluding the six months ended June 30, 2019) | $ | 3,997 | ||
2020 | 6,604 | |||
2021 | 4,806 | |||
2022 | 3,622 | |||
2023 | 1,941 | |||
Thereafter | 2,241 | |||
Total future lease payments | 23,211 | |||
Less: Imputed interest | (2,054) | |||
Present value of lease liabilities | $ | 21,157 | ||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
In-scope of Topic 606: | ||||||||||||||||
Service charges on deposit accounts | $ | 5,065 | $ | 4,091 | $ | 10,206 | $ | 8,136 | ||||||||
Trust and investment services | 2,452 | 2,399 | 4,634 | 4,556 | ||||||||||||
Bankcard services | 1,027 | 958 | 1,977 | 1,762 | ||||||||||||
Gain on OREO, net | 24 | - | 129 | 3,540 | ||||||||||||
Other | 2,603 | 1,178 | 4,647 | 2,569 | ||||||||||||
Noninterest Income (in-scope of Topic 606) | 11,171 | 8,626 | 21,593 | 20,563 | ||||||||||||
Noninterest Income (out-of-scope of Topic 606) | 7,034 | 1,069 | 12,915 | 2,048 | ||||||||||||
Total noninterest income | $ | 18,205 | $ | 9,695 | $ | 34,508 | $ | 22,611 | ||||||||
For the Three Months Ended September 30, | For the Nine Months Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
In-scope of Topic 606: | ||||||||||||||||
Service charges on deposit accounts | $ | 4,833 | $ | 4,295 | $ | 15,039 | $ | 12,431 | ||||||||
Trust and investment services | 2,330 | 2,182 | 6,964 | 6,738 | ||||||||||||
Bankcard services | 637 | 875 | 2,614 | 2,637 | ||||||||||||
Gain on OREO, net | - | - | 129 | 3,540 | ||||||||||||
Other | 2,292 | 1,824 | 6,939 | 4,393 | ||||||||||||
Noninterest Income (in-scope of Topic 606) | 10,092 | 9,176 | 31,685 | 29,739 | ||||||||||||
Noninterest Income (out-of-scope of Topic 606) | 1,802 | 936 | 14,717 | 2,984 | ||||||||||||
Total noninterest income | $ | 11,894 | $ | 10,112 | $ | 46,402 | $ | 32,723 |
For the Three Months Ended | Variance | For the Three Months Ended | Variance | ||||||||||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | $ | % | September 30, 2019 | June 30, 2019 | $ | % | ||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Net interest income | $ | 111,057 | $ | 109,536 | $ | 1,521 | 1.39% | $ | 108,159 | $ | 111,057 | $ | (2,898) | -2.61% | |||||||||||||||||||
Provision for loan losses | (2,000 | ) | (1,500 | ) | (500) | -33.33% | (1,500 | ) | (2,000 | ) | 500 | 25.00% | |||||||||||||||||||||
Noninterest income | 18,205 | 16,303 | 1,902 | 11.67% | 11,894 | 18,205 | (6,311) | -34.67% | |||||||||||||||||||||||||
Noninterest expense | (50,528 | ) | (51,604 | ) | 1,076 | 2.09% | (47,535 | ) | (50,528 | ) | 2,993 | 5.92% | |||||||||||||||||||||
Income taxes | (22,253 | ) | (21,093 | ) | (1,160) | -5.50% | (20,595 | ) | (22,253 | ) | 1,658 | 7.45% | |||||||||||||||||||||
Net earnings | $ | 54,481 | $ | 51,642 | $ | 2,839 | 5.50% | $ | 50,423 | $ | 54,481 | $ | (4,058) | -7.45% | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.39 | $ | 0.37 | $ | 0.02 | $ | 0.36 | $ | 0.39 | $ | (0.03) | |||||||||||||||||||||
Diluted | $ | 0.39 | $ | 0.37 | $ | 0.02 | $ | 0.36 | $ | 0.39 | $ | (0.03) | |||||||||||||||||||||
Return on average assets | 1.95% | 1.84% | 0.11% | 1.78% | 1.95% | -0.17% | |||||||||||||||||||||||||||
Return on average shareholders’ equity | 11.38% | 11.14% | 0.24% | 10.18% | 11.38% | -1.20% | |||||||||||||||||||||||||||
Efficiency ratio | 39.09% | 41.01% | -1.92% | 39.60% | 39.09% | 0.51% | |||||||||||||||||||||||||||
Noninterest expense to average assets | 1.81% | 1.83% | -0.02% | 1.68% | 1.81% | -0.13% |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, | Variance | For the Six Months Ended June 30, | Variance | September 30, | Variance | September 30, | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 111,057 | $ | 72,688 | $ | 38,369 | 52.79% | $ | 220,593 | $ | 143,209 | $ | 77,384 | 54.04% | $ | 108,159 | $ | 92,820 | $ | 15,339 | 16.53% | $ | 328,752 | $ | 236,029 | $ | 92,723 | 39.28% | ||||||||||||||||||||||||||||||||||||
(Provision for) recapture of provision for loan losses | (2,000) | 1,000 | (3,000) | -300.00% | (3,500) | 2,000 | (5,500) | -275.00% | (1,500) | (500) | (1,000) | -200.00% | (5,000) | 1,500 | (6,500) | -433.33% | ||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest income | 18,205 | 9,695 | 8,510 | 87.78% | 34,508 | 22,611 | 11,897 | 52.62% | 11,894 | 10,112 | 1,782 | 17.62% | 46,402 | 32,723 | 13,679 | 41.80% | ||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense | (50,528) | (34,254) | (16,274) | -47.51% | (102,132) | (70,200) | (31,932) | -45.49% | (47,535) | (48,880) | 1,345 | 2.75% | (149,667) | (119,080) | (30,587) | -25.69% | ||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | (22,253) | (13,756) | (8,497) | -61.77% | (43,346) | (27,334) | (16,012) | -58.58% | (20,595) | (14,994) | (5,601) | -37.35% | (63,941) | (42,328) | (21,613) | -51.06% | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 54,481 | $ | 35,373 | $ | 19,108 | 54.02% | $ | 106,123 | $ | 70,286 | $ | 35,837 | 50.99% | $ | 50,423 | $ | 38,558 | $ | 11,865 | 30.77% | $ | 156,546 | $ | 108,844 | $ | 47,702 | 43.83% | ||||||||||||||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.39 | $ | 0.32 | $ | 0.07 | $ | 0.76 | $ | 0.64 | $ | 0.12 | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | ||||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.39 | $ | 0.32 | $ | 0.07 | $ | 0.76 | $ | 0.64 | $ | 0.12 | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | ||||||||||||||||||||||||||||||||||||||||
Return on average assets | 1.95% | 1.73% | 0.22% | 1.89% | 1.72% | 0.17% | 1.78% | 1.52% | 0.26% | 1.86% | 1.65% | 0.21% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average shareholders’ equity | 11.38% | 13.08% | -1.70% | 11.26% | 13.05%�� | -1.79% | 10.18% | 10.17% | 0.01% | 10.89% | 11.86% | -0.97% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Efficiency ratio | 39.09% | 41.58% | -2.49% | 40.04% | 42.34% | -2.30% | 39.60% | 47.49% | -7.89% | 39.89% | 44.31% | -4.42% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense to average assets | 1.81% | 1.68% | 0.13% | 1.82% | 1.72% | 0.10% | 1.68% | 1.93% | -0.25% | 1.77% | 1.80% | -0.03% |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Net Income | $ | 54,481 | $ | 35,373 | $ | 106,123 | $ | 70,286 | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | ||||||||||||||||
Add: Amortization of intangible assets | 2,833 | 328 | 5,690 | 659 | 2,648 | 1,736 | 8,338 | 2,395 | ||||||||||||||||||||||||
Less: Tax effect of amortization of intangible assets (1) | (838) | (97) | (1,682) | (195) | (783) | (513) | (2,465) | (708) | ||||||||||||||||||||||||
Tangible net income | $ | 56,476 | $ | 35,604 | $ | 110,131 | $ | 70,750 | $ | 52,288 | $ | 39,781 | $ | 162,419 | $ | 110,531 | ||||||||||||||||
Average stockholders’ equity | $ | 1,919,888 | $ | 1,085,053 | $ | 1,899,898 | $ | 1,086,157 | $ | 1,965,427 | $ | 1,503,643 | $ | 1,921,981 | $ | 1,226,848 | ||||||||||||||||
Less: Average goodwill | (666,196) | (116,564) | (666,366) | (116,564) | (663,707) | (419,418) | (665,470) | (218,625) | ||||||||||||||||||||||||
Less: Average intangible assets | (49,615) | (6,393) | (51,188) | (6,557) | (46,720) | (34,811) | (49,682) | (16,078) | ||||||||||||||||||||||||
Average tangible common equity | $ | 1,204,077 | $ | 962,096 | $ | 1,182,344 | $ | 963,036 | $ | 1,255,000 | $ | 1,049,414 | $ | 1,206,829 | $ | 992,145 | ||||||||||||||||
Return on average equity, annualized | 11.38% | 13.08% | 11.26% | 13.05% | 10.18 | % | 10.17 | % | 10.89 | % | 11.86 | % | ||||||||||||||||||||
Return on average tangible common equity, annualized | 18.81% | 14.84% | 18.78% | 14.81% | 16.53 | % | 15.04 | % | 17.99 | % | 14.89 | % |
(1) | Tax effected at respective statutory rates. |
For the Three Months Ended June 30, | For the Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | $ | 1,590,959 | $ | 9,821 | 2.47% | $ | 1,921,638 | $ | 11,290 | 2.37% | $ | 1,505,087 | $ | 8,949 | 2.38% | $ | 1,863,399 | $ | 11,126 | 2.39% | |||||||||||||||||||||||||||||
Tax-advantaged | 43,719 | 297 | 3.75% | 53,399 | 407 | 4.06% | 40,189 | 273 | 3.75% | 55,020 | 395 | 3.86% | |||||||||||||||||||||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 511,938 | 2,932 | 2.29% | 540,692 | 3,048 | 2.25% | 506,203 | 2,883 | 2.28% | 527,688 | 2,961 | 2.24% | |||||||||||||||||||||||||||||||||||||
Tax-advantaged | 215,366 | 1,494 | 3.35% | 243,910 | 1,759 | 3.49% | 205,996 | 1,415 | 3.32% | 237,933 | 1,705 | 3.47% | |||||||||||||||||||||||||||||||||||||
Investment in FHLB stock | 17,688 | 298 | 6.76% | 17,688 | 298 | 6.76% | 17,688 | 301 | 6.75% | 24,645 | 329 | 5.30% | |||||||||||||||||||||||||||||||||||||
Interest-earning deposits with other institutions | 18,022 | 100 | 2.23% | 144,081 | 635 | 1.76% | 174,119 | 946 | 2.16% | 63,572 | 304 | 1.90% | |||||||||||||||||||||||||||||||||||||
Loans (2) | 7,558,483 | 101,843 | 5.40% | 4,780,347 | 57,368 | 4.81% | 7,495,289 | 98,796 | 5.23% | 6,350,240 | 79,818 | 4.99% | |||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 9,956,175 | 116,785 | 4.72% | 7,701,755 | 74,805 | 3.93% | 9,944,571 | 113,563 | 4.55% | 9,122,497 | 96,638 | 4.23% | |||||||||||||||||||||||||||||||||||||
Total noninterest-earning assets | 1,264,592 | 476,854 | 1,269,845 | 935,028 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 11,220,767 | $ | 8,178,609 | $ | 11,214,416 | $ | 10,057,525 | |||||||||||||||||||||||||||||||||||||||||
INTEREST-BEARING LIABILITIES | |||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits (3) | $ | 3,024,664 | 2,973 | 0.39% | $ | 2,233,652 | 1,293 | 0.23% | $ | 2,991,330 | 3,501 | 0.46% | $ | 2,850,169 | 2,101 | 0.29% | |||||||||||||||||||||||||||||||||
Time deposits | 494,507 | 1,120 | 0.91% | 367,871 | 256 | 0.28% | 473,347 | 1,088 | 0.91% | 503,649 | 866 | 0.68% | |||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,519,171 | 4,093 | 0.47% | 2,601,523 | 1,549 | 0.24% | 3,464,677 | 4,589 | 0.53% | 3,353,818 | 2,967 | 0.35% | |||||||||||||||||||||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 585,550 | 1,635 | 1.11% | 462,618 | 568 | 0.49% | 446,087 | 815 | 0.72% | 478,538 | 851 | 0.70% | |||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | 4,104,721 | 5,728 | 0.56% | 3,064,141 | 2,117 | 0.28% | 3,910,764 | 5,404 | 0.55% | 3,832,356 | 3,818 | 0.39% | |||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 5,093,781 | 3,958,980 | 5,227,595 | 4,651,127 | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 102,377 | 70,435 | 110,630 | 70,399 | |||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 1,919,888 | 1,085,053 | 1,965,427 | 1,503,643 | |||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,220,767 | $ | 8,178,609 | $ | 11,214,416 | $ | 10,057,525 | |||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 111,057 | $ | 72,688 | $ | 108,159 | $ | 92,820 | |||||||||||||||||||||||||||||||||||||||||
Net interest spread - tax equivalent | 4.16% | 3.65% | 4.00% | 3.84% | |||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 4.47% | 3.79% | 4.32% | 4.04% | |||||||||||||||||||||||||||||||||||||||||||||
Net interest margin - tax equivalent | 4.49% | 3.82% | 4.34% | 4.06% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended |
(2) | Includes loan fees of |
(3) | Includes interest-bearing demand and money market accounts. |
For the Six Months Ended June 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,622,465 | $ | 20,130 | 2.48 | % | $ | 1,950,190 | $ | 22,735 | 2.34 | % | ||||||||||||
Tax-advantaged | 44,048 | 633 | 3.91 | % | 54,262 | 830 | 4.06 | % | ||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 510,781 | 5,842 | 2.29 | % | 547,694 | 5,926 | 2.16 | % | ||||||||||||||||
Tax-advantaged | 221,602 | 3,109 | 3.39 | % | 250,507 | 3,646 | 3.52 | % | ||||||||||||||||
Investment in FHLB stock | 17,688 | 630 | 7.18 | % | 17,688 | 630 | 7.18 | % | ||||||||||||||||
Interest-earning deposits with other institutions | 18,356 | 194 | 2.13 | % | 141,443 | 1,171 | 1.66 | % | ||||||||||||||||
Loans (2) | 7,610,241 | 201,530 | 5.34 | % | 4,785,118 | 112,564 | 4.74 | % | ||||||||||||||||
Total interest-earning assets | 10,045,181 | 232,068 | 4.67 | % | 7,746,902 | 147,502 | 3.86 | % | ||||||||||||||||
Total noninterest-earning assets | 1,268,812 | 470,378 | ||||||||||||||||||||||
Total assets | $ | 11,313,993 | $ | 8,217,280 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 3,075,966 | 5,658 | 0.37 | % | $ | 2,262,271 | 2,566 | 0.23 | % | ||||||||||||||
Time deposits | 509,581 | 2,306 | 0.91 | % | 372,585 | 508 | 0.27 | % | ||||||||||||||||
Total interest-bearing deposits | 3,585,547 | 7,964 | 0.45 | % | 2,634,856 | 3,074 | 0.24 | % | ||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 638,463 | 3,511 | 1.10 | % | 522,606 | 1,219 | 0.47 | % | ||||||||||||||||
Interest-bearing liabilities | 4,224,010 | 11,475 | 0.55 | % | 3,157,462 | 4,293 | 0.27 | % | ||||||||||||||||
Noninterest-bearing deposits | 5,089,795 | 3,907,901 | ||||||||||||||||||||||
Other liabilities | 100,290 | 65,760 | ||||||||||||||||||||||
Stockholders’ equity | 1,899,898 | 1,086,157 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,313,993 | $ | 8,217,280 | ||||||||||||||||||||
Net interest income | $ | 220,593 | $ | 143,209 | ||||||||||||||||||||
Net interest spread - tax equivalent | 4.12 | % | 3.59 | % | ||||||||||||||||||||
Net interest margin | 4.42 | % | 3.72 | % | ||||||||||||||||||||
Net interest margin - tax equivalent | 4.44 | % | 3.75 | % |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,582,902 | $ | 29,079 | 2.45% | $ | 1,920,942 | $ | 33,861 | 2.36% | ||||||||||||||
Tax-advantaged | 42,746 | 906 | 3.87% | 54,517 | 1,225 | 3.99% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 509,247 | 8,725 | 2.29% | 540,952 | 8,887 | 2.19% | ||||||||||||||||||
Tax-advantaged | 216,343 | 4,524 | 3.37% | 246,270 | 5,351 | 3.50% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 931 | 7.04% | 20,032 | 959 | 6.40% | ||||||||||||||||||
Interest-earning deposits with other institutions | 70,848 | 1,140 | 2.15% | 115,200 | 1,475 | 1.71% | ||||||||||||||||||
Loans (2) | 7,571,502 | 300,326 | 5.30% | 5,312,557 | 192,382 | 4.84% | ||||||||||||||||||
Total interest-earning assets | 10,011,276 | 345,631 | 4.63% | 8,210,470 | 244,140 | 4.00% | ||||||||||||||||||
Total noninterest-earning assets | 1,269,160 | 626,966 | ||||||||||||||||||||||
Total assets | $ | 11,280,436 | $ | 8,837,436 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 3,047,444 | 9,159 | 0.40% | $ | 2,460,390 | 4,667 | 0.25% | ||||||||||||||||
Time deposits | 497,370 | 3,394 | 0.91% | 416,754 | 1,374 | 0.44% | ||||||||||||||||||
Total interest-bearing deposits | 3,544,814 | 12,553 | 0.47% | 2,877,144 | 6,041 | 0.28% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 573,633 | 4,326 | 1.00% | 507,755 | 2,070 | 0.54% | ||||||||||||||||||
Interest-bearing liabilities | 4,118,447 | 16,879 | 0.55% | 3,384,899 | 8,111 | 0.32% | ||||||||||||||||||
Noninterest-bearing deposits | 5,136,233 | 4,158,365 | ||||||||||||||||||||||
Other liabilities | 103,775 | 67,324 | ||||||||||||||||||||||
Stockholders’ equity | 1,921,981 | 1,226,848 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,280,436 | $ | 8,837,436 | ||||||||||||||||||||
Net interest income | $ | 328,752 | $ | 236,029 | ||||||||||||||||||||
Net interest spread - tax equivalent | 4.08% | 3.68% | ||||||||||||||||||||||
Net interest margin | 4.39% | 3.84% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.41% | 3.87% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the |
(2) | Includes loan fees of |
(3) | Includes interest-bearing demand and money market accounts. |
Comparison of Three Months Ended June 30, 2019 Compared to 2018 Increase (Decrease) Due to | Comparision of Three Months Ended September 30, 2019 Compared to 2018 Increase (Decrease) Due to | ||||||||||||||||||||||||||||||||
Volume | Rate | Rate/ Volume | Total | Volume | Rate | Rate/ Volume | Total | ||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||
Taxable investment securities | $ | (1,877 | ) | $ | 489 | $ | (81 | ) | $ | (1,469 | ) | $ | (2,122 | ) | $ | (46 | ) | $ | (9 | ) | $ | (2,177 | ) | ||||||||||
Tax-advantaged investment securities | (64 | ) | (39 | ) | (7 | ) | (110 | ) | (98 | ) | (19 | ) | (5 | ) | (122 | ) | |||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||||||
Taxable investment securities | (162 | ) | 49 | (3 | ) | (116 | ) | (120 | ) | 44 | (2 | ) | (78 | ) | |||||||||||||||||||
Tax-advantaged investment securities | (195 | ) | (63 | ) | (7 | ) | (265 | ) | (215 | ) | (66 | ) | (9 | ) | (290 | ) | |||||||||||||||||
Investment in FHLB stock | - | - | - | - | (93 | ) | 91 | (26 | ) | (28 | ) | ||||||||||||||||||||||
Interest-earning deposits with other institutions | (556 | ) | 167 | (146 | ) | (535 | ) | 529 | 41 | 72 | 642 | ||||||||||||||||||||||
Loans | 33,339 | 7,043 | 4,093 | 44,475 | 14,389 | 3,888 | 701 | 18,978 | |||||||||||||||||||||||||
Total interest income | 30,485 | 7,646 | 3,849 | 41,980 | 12,270 | 3,933 | 722 | 16,925 | |||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||
Savings deposits | 458 | 902 | 320 | 1,680 | 104 | 1,235 | 61 | 1,400 | |||||||||||||||||||||||||
Time deposits | 88 | 577 | 199 | 864 | (52 | ) | 292 | (18 | ) | 222 | |||||||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 153 | 722 | 192 | 1,067 | (56 | ) | 21 | (1 | ) | (36 | ) | ||||||||||||||||||||||
Total interest expense | 699 | 2,201 | 711 | 3,611 | (4 | ) | 1,548 | 42 | 1,586 | ||||||||||||||||||||||||
Net interest income | $ | 29,786 | $ | 5,445 | $ | 3,138 | $ | 38,369 | $ | 12,274 | $ | 2,385 | $ | 680 | $ | 15,339 | |||||||||||||||||
Comparison of Six Months Ended June 30, 2019 Compared to 2018 Increase (Decrease) Due to | Comparision of Nine Months Ended September��30, 2019 Compared to 2018 Increase (Decrease) Due to | ||||||||||||||||||||||||||||||||
Volume | Rate | Rate/ Volume | Total | Volume | Rate | Rate/ Volume | Total | ||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||
Taxable investment securities | $ | (3,754 | ) | $ | 1,376 | $ | (227 | ) | $ | (2,605 | ) | $ | (5,894 | ) | $ | 1,346 | $ | (234 | ) | $ | (4,782 | ) | |||||||||||
Tax-advantaged investment securities | (157 | ) | (50 | ) | 10 | (197 | ) | (264 | ) | (70 | ) | 15 | (319 | ) | |||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||||||
Taxable investment securities | (501 | ) | 447 | (30 | ) | (84 | ) | (583 | ) | 447 | (26 | ) | (162 | ) | |||||||||||||||||||
Tax-advantaged investment securities | (421 | ) | (131 | ) | 15 | (537 | ) | (651 | ) | (201 | ) | 25 | (827 | ) | |||||||||||||||||||
Investment in FHLB stock | - | - | - | - | (114 | ) | 97 | (11 | ) | (28 | ) | ||||||||||||||||||||||
Interest-earning deposits with other institutions | (1,021 | ) | 337 | (293 | ) | (977 | ) | (567 | ) | 378 | (146 | ) | (335 | ) | |||||||||||||||||||
Loans | 66,439 | 14,164 | 8,363 | 88,966 | 81,793 | 18,349 | 7,802 | 107,944 | |||||||||||||||||||||||||
Total interest income | 60,585 | 16,143 | 7,838 | 84,566 | 73,720 | 20,346 | 7,425 | 101,491 | |||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||
Savings deposits | 923 | 1,595 | 574 | 3,092 | 1,113 | 2,728 | 651 | 4,492 | |||||||||||||||||||||||||
Time deposits | 187 | 1,178 | 433 | 1,798 | 266 | 1,470 | 284 | 2,020 | |||||||||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 274 | 1,652 | 366 | 2,292 | 271 | 1,757 | 228 | 2,256 | |||||||||||||||||||||||||
Total interest expense | 1,384 | 4,425 | 1,373 | 7,182 | 1,650 | 5,955 | 1,163 | 8,768 | |||||||||||||||||||||||||
Net interest income | $ | 59,201 | $ | 11,718 | $ | 6,465 | $ | 77,384 | $ | 72,070 | $ | 14,391 | $ | 6,262 | $ | 92,723 | |||||||||||||||||
For the Three Months Ended June 30, | Variance | For the Six Months Ended June 30, | Variance | For the Three Months Ended September 30, | Variance | For the Nine Months Ended September 30, | Variance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 5,065 | $ | 4,091 | $ | 974 | 23.81% | $ | 10,206 | $ | 8,136 | $ | 2,070 | 25.44% | $ | 4,833 | $ | 4,295 | $ | 538 | 12.53 | % | $ | 15,039 | $ | 12,431 | $ | 2,608 | 20.98 | % | |||||||||||||||||||||||||||||||||||
Trust and investment services | 2,452 | 2,399 | 53 | 2.21% | 4,634 | 4,556 | 78 | 1.71% | 2,330 | 2,182 | 148 | 6.78 | % | 6,964 | 6,738 | 226 | 3.35 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Bankcard services | 1,027 | 958 | 69 | 7.20% | 1,977 | 1,762 | 215 | 12.20% | 637 | 875 | (238 | ) | -27.20 | % | 2,614 | 2,637 | (23 | ) | -0.87 | % | |||||||||||||||||||||||||||||||||||||||||||||
BOLI income | 1,349 | 1,069 | 280 | 26.19% | 2,685 | 2,048 | 637 | 31.10% | 1,797 | 936 | 861 | 91.99 | % | 4,482 | 2,984 | 1,498 | 50.20 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on OREO, net | 24 | - | 24 | - | 129 | 3,540 | (3,411 | ) | -96.36% | - | - | - | - | 129 | 3,540 | (3,411 | ) | -96.36 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of building, net | - | - | - | - | 4,545 | - | 4,545 | - | - | - | - | 4,545 | - | 4,545 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on eminent domain condemnation, net | 5,685 | - | 5,685 | - | 5,685 | - | 5,685 | - | - | - | - | 5,685 | - | 5,685 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 2,603 | 1,178 | 1,425 | 120.97% | 4,647 | 2,569 | 2,078 | 80.89% | 2,297 | 1,824 | 473 | 25.93% | 6,944 | 4,393 | 2,551 | 58.07% | |||||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest income | $ | 18,205 | $ | 9,695 | $ | 8,510 | 87.78% | $ | 34,508 | $ | 22,611 | $ | 11,897 | 52.62% | $ | 11,894 | $ | 10,112 | $ | 1,782 | 17.62 | % | $ | 46,402 | $ | 32,723 | $ | 13,679 | 41.80 | % | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | Variance | ||||||||||||||||
September 30, 2019 | June 30, 2019 | $ | % | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Net interest income | $ | 108,159 | $ | 111,057 | $ | (2,898) | -2.61% | ||||||||||
Provision for loan losses | (1,500 | ) | (2,000 | ) | 500 | 25.00% | |||||||||||
Noninterest income | 11,894 | 18,205 | (6,311) | -34.67% | |||||||||||||
Noninterest expense | (47,535 | ) | (50,528 | ) | 2,993 | 5.92% | |||||||||||
Income taxes | (20,595 | ) | (22,253 | ) | 1,658 | 7.45% | |||||||||||
Net earnings | $ | 50,423 | $ | 54,481 | $ | (4,058) | -7.45% | ||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.36 | $ | 0.39 | $ | (0.03) | |||||||||||
Diluted | $ | 0.36 | $ | 0.39 | $ | (0.03) | |||||||||||
Return on average assets | 1.78% | 1.95% | -0.17% | ||||||||||||||
Return on average shareholders’ equity | 10.18% | 11.38% | -1.20% | ||||||||||||||
Efficiency ratio | 39.60% | 39.09% | 0.51% | ||||||||||||||
Noninterest expense to average assets | 1.68% | 1.81% | -0.13% |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | Variance | September 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Net interest income | $ | 108,159 | $ | 92,820 | $ | 15,339 | 16.53% | $ | 328,752 | $ | 236,029 | $ | 92,723 | 39.28% | ||||||||||||||||||
(Provision for) recapture of provision for loan losses | (1,500) | (500) | (1,000) | -200.00% | (5,000) | 1,500 | (6,500) | -433.33% | ||||||||||||||||||||||||
Noninterest income | 11,894 | 10,112 | 1,782 | 17.62% | 46,402 | 32,723 | 13,679 | 41.80% | ||||||||||||||||||||||||
Noninterest expense | (47,535) | (48,880) | 1,345 | 2.75% | (149,667) | (119,080) | (30,587) | -25.69% | ||||||||||||||||||||||||
Income taxes | (20,595) | (14,994) | (5,601) | -37.35% | (63,941) | (42,328) | (21,613) | -51.06% | ||||||||||||||||||||||||
Net earnings | $ | 50,423 | $ | 38,558 | $ | 11,865 | 30.77% | $ | 156,546 | $ | 108,844 | $ | 47,702 | 43.83% | ||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | ||||||||||||||||||||
Diluted | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | ||||||||||||||||||||
Return on average assets | 1.78% | 1.52% | 0.26% | 1.86% | 1.65% | 0.21% | ||||||||||||||||||||||||||
Return on average shareholders’ equity | 10.18% | 10.17% | 0.01% | 10.89% | 11.86% | -0.97% | ||||||||||||||||||||||||||
Efficiency ratio | 39.60% | 47.49% | -7.89% | 39.89% | 44.31% | -4.42% | ||||||||||||||||||||||||||
Noninterest expense to average assets | 1.68% | 1.93% | -0.25% | 1.77% | 1.80% | -0.03% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net Income | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | ||||||||
Add: Amortization of intangible assets | 2,648 | 1,736 | 8,338 | 2,395 | ||||||||||||
Less: Tax effect of amortization of intangible assets (1) | (783) | (513) | (2,465) | (708) | ||||||||||||
Tangible net income | $ | 52,288 | $ | 39,781 | $ | 162,419 | $ | 110,531 | ||||||||
Average stockholders’ equity | $ | 1,965,427 | $ | 1,503,643 | $ | 1,921,981 | $ | 1,226,848 | ||||||||
Less: Average goodwill | (663,707) | (419,418) | (665,470) | (218,625) | ||||||||||||
Less: Average intangible assets | (46,720) | (34,811) | (49,682) | (16,078) | ||||||||||||
Average tangible common equity | $ | 1,255,000 | $ | 1,049,414 | $ | 1,206,829 | $ | 992,145 | ||||||||
Return on average equity, annualized | 10.18 | % | 10.17 | % | 10.89 | % | 11.86 | % | ||||||||
Return on average tangible common equity, annualized | 16.53 | % | 15.04 | % | 17.99 | % | 14.89 | % |
For the Three Months Ended June 30, | Variance | For the Six Months Ended June 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 28,862 | $ | 21,051 | $ | 7,811 | 37.11% | $ | 58,164 | $ | 43,365 | $ | 14,799 | 34.13% | ||||||||||||||||||
Occupancy | 4,388 | 3,424 | 964 | 28.15% | 8,795 | 6,756 | 2,039 | 30.18% | ||||||||||||||||||||||||
Equipment | 1,253 | 894 | 359 | 40.16% | 2,461 | 1,754 | 707 | 40.31% | ||||||||||||||||||||||||
Professional services | 2,040 | 1,690 | 350 | 20.71% | 3,965 | 3,220 | 745 | 23.14% | ||||||||||||||||||||||||
Software licenses and maintenance | 2,542 | 1,759 | 783 | 44.51% | 4,964 | 3,519 | 1,445 | 41.06% | ||||||||||||||||||||||||
Stationery and supplies | 316 | 307 | 9 | 2.93% | 608 | 544 | 64 | 11.76% | ||||||||||||||||||||||||
Telecommunications expense | 712 | 561 | 151 | 26.92% | 1,470 | 1,089 | 381 | 34.99% | ||||||||||||||||||||||||
Marketing and promotion | 1,238 | 1,148 | 90 | 7.84% | 2,632 | 2,504 | 128 | 5.11% | ||||||||||||||||||||||||
Amortization of intangible assets | 2,833 | 328 | 2,505 | 763.72% | 5,690 | 659 | 5,031 | 763.43% | ||||||||||||||||||||||||
Regulatory assessments | 734 | 666 | 68 | 10.21% | 1,658 | 1,380 | 278 | 20.14% | ||||||||||||||||||||||||
Insurance | 469 | 423 | 46 | 10.87% | 938 | 846 | 92 | 10.87% | ||||||||||||||||||||||||
Loan expense | 491 | 149 | 342 | 229.53% | 807 | 404 | 403 | 99.75% | ||||||||||||||||||||||||
Directors’ expenses | 320 | 270 | 50 | 18.52% | 607 | 510 | 97 | 19.02% | ||||||||||||||||||||||||
Acquisition related expenses | 2,612 | 494 | 2,118 | 428.74% | 5,761 | 1,297 | 4,464 | 344.18% | ||||||||||||||||||||||||
Other | 1,718 | 1,090 | 628 | 57.61% | 3,612 | 2,353 | 1,259 | 53.51% | ||||||||||||||||||||||||
Total noninterest expense | $ | 50,528 | $ | 34,254 | $ | 16,274 | 47.51% | $ | 102,132 | $ | 70,200 | $ | 31,932 | 45.49% | ||||||||||||||||||
Noninterest expense to average assets | 1.81% | 1.68% | 1.82% | 1.72% | ||||||||||||||||||||||||||||
Efficiency ratio (1) | 39.09% | 41.58% | 40.04% | 42.34% |
(1) |
For the Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,505,087 | $ | 8,949 | 2.38% | $ | 1,863,399 | $ | 11,126 | 2.39% | ||||||||||||||
Tax-advantaged | 40,189 | 273 | 3.75% | 55,020 | 395 | 3.86% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 506,203 | 2,883 | 2.28% | 527,688 | 2,961 | 2.24% | ||||||||||||||||||
Tax-advantaged | 205,996 | 1,415 | 3.32% | 237,933 | 1,705 | 3.47% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 301 | 6.75% | 24,645 | 329 | 5.30% | ||||||||||||||||||
Interest-earning deposits with other institutions | 174,119 | 946 | 2.16% | 63,572 | 304 | 1.90% | ||||||||||||||||||
Loans (2) | 7,495,289 | 98,796 | 5.23% | 6,350,240 | 79,818 | 4.99% | ||||||||||||||||||
Total interest-earning assets | 9,944,571 | 113,563 | 4.55% | 9,122,497 | 96,638 | 4.23% | ||||||||||||||||||
Total noninterest-earning assets | 1,269,845 | 935,028 | ||||||||||||||||||||||
Total assets | $ | 11,214,416 | $ | 10,057,525 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 2,991,330 | 3,501 | 0.46% | $ | 2,850,169 | 2,101 | 0.29% | ||||||||||||||||
Time deposits | 473,347 | 1,088 | 0.91% | 503,649 | 866 | 0.68% | ||||||||||||||||||
Total interest-bearing deposits | 3,464,677 | 4,589 | 0.53% | 3,353,818 | 2,967 | 0.35% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 446,087 | 815 | 0.72% | 478,538 | 851 | 0.70% | ||||||||||||||||||
Interest-bearing liabilities | 3,910,764 | 5,404 | 0.55% | 3,832,356 | 3,818 | 0.39% | ||||||||||||||||||
Noninterest-bearing deposits | 5,227,595 | 4,651,127 | ||||||||||||||||||||||
Other liabilities | 110,630 | 70,399 | ||||||||||||||||||||||
Stockholders’ equity | 1,965,427 | 1,503,643 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,214,416 | $ | 10,057,525 | ||||||||||||||||||||
Net interest income | $ | 108,159 | $ | 92,820 | ||||||||||||||||||||
Net interest spread - tax equivalent | 4.00% | 3.84% | ||||||||||||||||||||||
Net interest margin | 4.32% | 4.04% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.34% | 4.06% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended September 30, 2019 and 2018. The non TE rates were 2.40% and 2.41% for the three months ended September 30, 2019 and 2018, respectively. |
(2) | Includes loan fees of $782,000 and $865,000 for the three months ended September 30, 2019 and 2018, respectively. Prepayment penalty fees of $1.0 million and $674,000 are included in interest income for the three months ended September 30, 2019 and 2018, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,582,902 | $ | 29,079 | 2.45% | $ | 1,920,942 | $ | 33,861 | 2.36% | ||||||||||||||
Tax-advantaged | 42,746 | 906 | 3.87% | 54,517 | 1,225 | 3.99% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 509,247 | 8,725 | 2.29% | 540,952 | 8,887 | 2.19% | ||||||||||||||||||
Tax-advantaged | 216,343 | 4,524 | 3.37% | 246,270 | 5,351 | 3.50% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 931 | 7.04% | 20,032 | 959 | 6.40% | ||||||||||||||||||
Interest-earning deposits with other institutions | 70,848 | 1,140 | 2.15% | 115,200 | 1,475 | 1.71% | ||||||||||||||||||
Loans (2) | 7,571,502 | 300,326 | 5.30% | 5,312,557 | 192,382 | 4.84% | ||||||||||||||||||
Total interest-earning assets | 10,011,276 | 345,631 | 4.63% | 8,210,470 | 244,140 | 4.00% | ||||||||||||||||||
Total noninterest-earning assets | 1,269,160 | 626,966 | ||||||||||||||||||||||
Total assets | $ | 11,280,436 | $ | 8,837,436 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 3,047,444 | 9,159 | 0.40% | $ | 2,460,390 | 4,667 | 0.25% | ||||||||||||||||
Time deposits | 497,370 | 3,394 | 0.91% | 416,754 | 1,374 | 0.44% | ||||||||||||||||||
Total interest-bearing deposits | 3,544,814 | 12,553 | 0.47% | 2,877,144 | 6,041 | 0.28% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 573,633 | 4,326 | 1.00% | 507,755 | 2,070 | 0.54% | ||||||||||||||||||
Interest-bearing liabilities | 4,118,447 | 16,879 | 0.55% | 3,384,899 | 8,111 | 0.32% | ||||||||||||||||||
Noninterest-bearing deposits | 5,136,233 | 4,158,365 | ||||||||||||||||||||||
Other liabilities | 103,775 | 67,324 | ||||||||||||||||||||||
Stockholders’ equity | 1,921,981 | 1,226,848 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,280,436 | $ | 8,837,436 | ||||||||||||||||||||
Net interest income | $ | 328,752 | $ | 236,029 | ||||||||||||||||||||
Net interest spread - tax equivalent | 4.08% | 3.68% | ||||||||||||||||||||||
Net interest margin | 4.39% | 3.84% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.41% | 3.87% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the nine months ended September 30, 2019 and 2018. The non TE rates were 2.45% and 2.38% for the nine months ended September 30, 2019 and 2018, respectively. |
(2) | Includes loan fees of $2.3 million and $2.6 million for the nine months ended September 30, 2019 and 2018, respectively. Prepayment penalty fees of $3.4 million and $2.1 million are included in interest income for the nine months ended September 30, 2019 and 2018, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
Comparision of Three Months Ended September 30, 2019 Compared to 2018 Increase (Decrease) Due to | |||||||||||||||||
Volume | Rate | Rate/ Volume | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest income: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Taxable investment securities | $ | (2,122 | ) | $ | (46 | ) | $ | (9 | ) | $ | (2,177 | ) | |||||
Tax-advantaged investment securities | (98 | ) | (19 | ) | (5 | ) | (122 | ) | |||||||||
Held-to-maturity securities: | |||||||||||||||||
Taxable investment securities | (120 | ) | 44 | (2 | ) | (78 | ) | ||||||||||
Tax-advantaged investment securities | (215 | ) | (66 | ) | (9 | ) | (290 | ) | |||||||||
Investment in FHLB stock | (93 | ) | 91 | (26 | ) | (28 | ) | ||||||||||
Interest-earning deposits with other institutions | 529 | 41 | 72 | 642 | |||||||||||||
Loans | 14,389 | 3,888 | 701 | 18,978 | |||||||||||||
Total interest income | 12,270 | 3,933 | 722 | 16,925 | |||||||||||||
Interest expense: | |||||||||||||||||
Savings deposits | 104 | 1,235 | 61 | 1,400 | |||||||||||||
Time deposits | (52 | ) | 292 | (18 | ) | 222 | |||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | (56 | ) | 21 | (1 | ) | (36 | ) | ||||||||||
Total interest expense | (4 | ) | 1,548 | 42 | 1,586 | ||||||||||||
Net interest income | $ | 12,274 | $ | 2,385 | $ | 680 | $ | 15,339 | |||||||||
Comparision of Nine Months Ended September��30, 2019 Compared to 2018 Increase (Decrease) Due to | |||||||||||||||||
Volume | Rate | Rate/ Volume | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest income: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Taxable investment securities | $ | (5,894 | ) | $ | 1,346 | $ | (234 | ) | $ | (4,782 | ) | ||||||
Tax-advantaged investment securities | (264 | ) | (70 | ) | 15 | (319 | ) | ||||||||||
Held-to-maturity securities: | |||||||||||||||||
Taxable investment securities | (583 | ) | 447 | (26 | ) | (162 | ) | ||||||||||
Tax-advantaged investment securities | (651 | ) | (201 | ) | 25 | (827 | ) | ||||||||||
Investment in FHLB stock | (114 | ) | 97 | (11 | ) | (28 | ) | ||||||||||
Interest-earning deposits with other institutions | (567 | ) | 378 | (146 | ) | (335 | ) | ||||||||||
Loans | 81,793 | 18,349 | 7,802 | 107,944 | |||||||||||||
Total interest income | 73,720 | 20,346 | 7,425 | 101,491 | |||||||||||||
Interest expense: | |||||||||||||||||
Savings deposits | 1,113 | 2,728 | 651 | 4,492 | |||||||||||||
Time deposits | 266 | 1,470 | 284 | 2,020 | |||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 271 | 1,757 | 228 | 2,256 | |||||||||||||
Total interest expense | 1,650 | 5,955 | 1,163 | 8,768 | |||||||||||||
Net interest income | $ | 72,070 | $ | 14,391 | $ | 6,262 | $ | 92,723 | |||||||||
For the Three Months Ended September 30, | Variance | For the Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 4,833 | $ | 4,295 | $ | 538 | 12.53 | % | $ | 15,039 | $ | 12,431 | $ | 2,608 | 20.98 | % | ||||||||||||||||
Trust and investment services | 2,330 | 2,182 | 148 | 6.78 | % | 6,964 | 6,738 | 226 | 3.35 | % | ||||||||||||||||||||||
Bankcard services | 637 | 875 | (238 | ) | -27.20 | % | 2,614 | 2,637 | (23 | ) | -0.87 | % | ||||||||||||||||||||
BOLI income | 1,797 | 936 | 861 | 91.99 | % | 4,482 | 2,984 | 1,498 | 50.20 | % | ||||||||||||||||||||||
Gain on OREO, net | - | - | - | - | 129 | 3,540 | (3,411 | ) | -96.36 | % | ||||||||||||||||||||||
Gain on sale of building, net | - | - | - | 4,545 | - | 4,545 | - | |||||||||||||||||||||||||
Gain on eminent domain condemnation, net | - | - | - | 5,685 | - | 5,685 | - | |||||||||||||||||||||||||
Other | 2,297 | 1,824 | 473 | 25.93% | 6,944 | 4,393 | 2,551 | 58.07% | ||||||||||||||||||||||||
Total noninterest income | $ | 11,894 | $ | 10,112 | $ | 1,782 | 17.62 | % | $ | 46,402 | $ | 32,723 | $ | 13,679 | 41.80 | % | ||||||||||||||||
For the Three Months Ended | Variance | ||||||||||||||||
September 30, 2019 | June 30, 2019 | $ | % | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Net interest income | $ | 108,159 | $ | 111,057 | $ | (2,898) | -2.61% | ||||||||||
Provision for loan losses | (1,500 | ) | (2,000 | ) | 500 | 25.00% | |||||||||||
Noninterest income | 11,894 | 18,205 | (6,311) | -34.67% | |||||||||||||
Noninterest expense | (47,535 | ) | (50,528 | ) | 2,993 | 5.92% | |||||||||||
Income taxes | (20,595 | ) | (22,253 | ) | 1,658 | 7.45% | |||||||||||
Net earnings | $ | 50,423 | $ | 54,481 | $ | (4,058) | -7.45% | ||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.36 | $ | 0.39 | $ | (0.03) | |||||||||||
Diluted | $ | 0.36 | $ | 0.39 | $ | (0.03) | |||||||||||
Return on average assets | 1.78% | 1.95% | -0.17% | ||||||||||||||
Return on average shareholders’ equity | 10.18% | 11.38% | -1.20% | ||||||||||||||
Efficiency ratio | 39.60% | 39.09% | 0.51% | ||||||||||||||
Noninterest expense to average assets | 1.68% | 1.81% | -0.13% |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | Variance | September 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Net interest income | $ | 108,159 | $ | 92,820 | $ | 15,339 | 16.53% | $ | 328,752 | $ | 236,029 | $ | 92,723 | 39.28% | ||||||||||||||||||
(Provision for) recapture of provision for loan losses | (1,500) | (500) | (1,000) | -200.00% | (5,000) | 1,500 | (6,500) | -433.33% | ||||||||||||||||||||||||
Noninterest income | 11,894 | 10,112 | 1,782 | 17.62% | 46,402 | 32,723 | 13,679 | 41.80% | ||||||||||||||||||||||||
Noninterest expense | (47,535) | (48,880) | 1,345 | 2.75% | (149,667) | (119,080) | (30,587) | -25.69% | ||||||||||||||||||||||||
Income taxes | (20,595) | (14,994) | (5,601) | -37.35% | (63,941) | (42,328) | (21,613) | -51.06% | ||||||||||||||||||||||||
Net earnings | $ | 50,423 | $ | 38,558 | $ | 11,865 | 30.77% | $ | 156,546 | $ | 108,844 | $ | 47,702 | 43.83% | ||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | ||||||||||||||||||||
Diluted | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | ||||||||||||||||||||
Return on average assets | 1.78% | 1.52% | 0.26% | 1.86% | 1.65% | 0.21% | ||||||||||||||||||||||||||
Return on average shareholders’ equity | 10.18% | 10.17% | 0.01% | 10.89% | 11.86% | -0.97% | ||||||||||||||||||||||||||
Efficiency ratio | 39.60% | 47.49% | -7.89% | 39.89% | 44.31% | -4.42% | ||||||||||||||||||||||||||
Noninterest expense to average assets | 1.68% | 1.93% | -0.25% | 1.77% | 1.80% | -0.03% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net Income | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | ||||||||
Add: Amortization of intangible assets | 2,648 | 1,736 | 8,338 | 2,395 | ||||||||||||
Less: Tax effect of amortization of intangible assets (1) | (783) | (513) | (2,465) | (708) | ||||||||||||
Tangible net income | $ | 52,288 | $ | 39,781 | $ | 162,419 | $ | 110,531 | ||||||||
Average stockholders’ equity | $ | 1,965,427 | $ | 1,503,643 | $ | 1,921,981 | $ | 1,226,848 | ||||||||
Less: Average goodwill | (663,707) | (419,418) | (665,470) | (218,625) | ||||||||||||
Less: Average intangible assets | (46,720) | (34,811) | (49,682) | (16,078) | ||||||||||||
Average tangible common equity | $ | 1,255,000 | $ | 1,049,414 | $ | 1,206,829 | $ | 992,145 | ||||||||
Return on average equity, annualized | 10.18 | % | 10.17 | % | 10.89 | % | 11.86 | % | ||||||||
Return on average tangible common equity, annualized | 16.53 | % | 15.04 | % | 17.99 | % | 14.89 | % |
(1) | Tax effected at respective statutory rates. |
For the Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,505,087 | $ | 8,949 | 2.38% | $ | 1,863,399 | $ | 11,126 | 2.39% | ||||||||||||||
Tax-advantaged | 40,189 | 273 | 3.75% | 55,020 | 395 | 3.86% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 506,203 | 2,883 | 2.28% | 527,688 | 2,961 | 2.24% | ||||||||||||||||||
Tax-advantaged | 205,996 | 1,415 | 3.32% | 237,933 | 1,705 | 3.47% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 301 | 6.75% | 24,645 | 329 | 5.30% | ||||||||||||||||||
Interest-earning deposits with other institutions | 174,119 | 946 | 2.16% | 63,572 | 304 | 1.90% | ||||||||||||||||||
Loans (2) | 7,495,289 | 98,796 | 5.23% | 6,350,240 | 79,818 | 4.99% | ||||||||||||||||||
Total interest-earning assets | 9,944,571 | 113,563 | 4.55% | 9,122,497 | 96,638 | 4.23% | ||||||||||||||||||
Total noninterest-earning assets | 1,269,845 | 935,028 | ||||||||||||||||||||||
Total assets | $ | 11,214,416 | $ | 10,057,525 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 2,991,330 | 3,501 | 0.46% | $ | 2,850,169 | 2,101 | 0.29% | ||||||||||||||||
Time deposits | 473,347 | 1,088 | 0.91% | 503,649 | 866 | 0.68% | ||||||||||||||||||
Total interest-bearing deposits | 3,464,677 | 4,589 | 0.53% | 3,353,818 | 2,967 | 0.35% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 446,087 | 815 | 0.72% | 478,538 | 851 | 0.70% | ||||||||||||||||||
Interest-bearing liabilities | 3,910,764 | 5,404 | 0.55% | 3,832,356 | 3,818 | 0.39% | ||||||||||||||||||
Noninterest-bearing deposits | 5,227,595 | 4,651,127 | ||||||||||||||||||||||
Other liabilities | 110,630 | 70,399 | ||||||||||||||||||||||
Stockholders’ equity | 1,965,427 | 1,503,643 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,214,416 | $ | 10,057,525 | ||||||||||||||||||||
Net interest income | $ | 108,159 | $ | 92,820 | ||||||||||||||||||||
Net interest spread - tax equivalent | 4.00% | 3.84% | ||||||||||||||||||||||
Net interest margin | 4.32% | 4.04% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.34% | 4.06% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended September 30, 2019 and 2018. The non TE rates were 2.40% and 2.41% for the three months ended September 30, 2019 and 2018, respectively. |
(2) | Includes loan fees of $782,000 and $865,000 for the three months ended September 30, 2019 and 2018, respectively. Prepayment penalty fees of $1.0 million and $674,000 are included in interest income for the three months ended September 30, 2019 and 2018, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,582,902 | $ | 29,079 | 2.45% | $ | 1,920,942 | $ | 33,861 | 2.36% | ||||||||||||||
Tax-advantaged | 42,746 | 906 | 3.87% | 54,517 | 1,225 | 3.99% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 509,247 | 8,725 | 2.29% | 540,952 | 8,887 | 2.19% | ||||||||||||||||||
Tax-advantaged | 216,343 | 4,524 | 3.37% | 246,270 | 5,351 | 3.50% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 931 | 7.04% | 20,032 | 959 | 6.40% | ||||||||||||||||||
Interest-earning deposits with other institutions | 70,848 | 1,140 | 2.15% | 115,200 | 1,475 | 1.71% | ||||||||||||||||||
Loans (2) | 7,571,502 | 300,326 | 5.30% | 5,312,557 | 192,382 | 4.84% | ||||||||||||||||||
Total interest-earning assets | 10,011,276 | 345,631 | 4.63% | 8,210,470 | 244,140 | 4.00% | ||||||||||||||||||
Total noninterest-earning assets | 1,269,160 | 626,966 | ||||||||||||||||||||||
Total assets | $ | 11,280,436 | $ | 8,837,436 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 3,047,444 | 9,159 | 0.40% | $ | 2,460,390 | 4,667 | 0.25% | ||||||||||||||||
Time deposits | 497,370 | 3,394 | 0.91% | 416,754 | 1,374 | 0.44% | ||||||||||||||||||
Total interest-bearing deposits | 3,544,814 | 12,553 | 0.47% | 2,877,144 | 6,041 | 0.28% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 573,633 | 4,326 | 1.00% | 507,755 | 2,070 | 0.54% | ||||||||||||||||||
Interest-bearing liabilities | 4,118,447 | 16,879 | 0.55% | 3,384,899 | 8,111 | 0.32% | ||||||||||||||||||
Noninterest-bearing deposits | 5,136,233 | 4,158,365 | ||||||||||||||||||||||
Other liabilities | 103,775 | 67,324 | ||||||||||||||||||||||
Stockholders’ equity | 1,921,981 | 1,226,848 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,280,436 | $ | 8,837,436 | ||||||||||||||||||||
Net interest income | $ | 328,752 | $ | 236,029 | ||||||||||||||||||||
Net interest spread - tax equivalent | 4.08% | 3.68% | ||||||||||||||||||||||
Net interest margin | 4.39% | 3.84% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.41% | 3.87% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the nine months ended September 30, 2019 and 2018. The non TE rates were 2.45% and 2.38% for the nine months ended September 30, 2019 and 2018, respectively. |
(2) | Includes loan fees of $2.3 million and $2.6 million for the nine months ended September 30, 2019 and 2018, respectively. Prepayment penalty fees of $3.4 million and $2.1 million are included in interest income for the nine months ended September 30, 2019 and 2018, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
Comparision of Three Months Ended September 30, 2019 Compared to 2018 Increase (Decrease) Due to | |||||||||||||||||
Volume | Rate | Rate/ Volume | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest income: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Taxable investment securities | $ | (2,122 | ) | $ | (46 | ) | $ | (9 | ) | $ | (2,177 | ) | |||||
Tax-advantaged investment securities | (98 | ) | (19 | ) | (5 | ) | (122 | ) | |||||||||
Held-to-maturity securities: | |||||||||||||||||
Taxable investment securities | (120 | ) | 44 | (2 | ) | (78 | ) | ||||||||||
Tax-advantaged investment securities | (215 | ) | (66 | ) | (9 | ) | (290 | ) | |||||||||
Investment in FHLB stock | (93 | ) | 91 | (26 | ) | (28 | ) | ||||||||||
Interest-earning deposits with other institutions | 529 | 41 | 72 | 642 | |||||||||||||
Loans | 14,389 | 3,888 | 701 | 18,978 | |||||||||||||
Total interest income | 12,270 | 3,933 | 722 | 16,925 | |||||||||||||
Interest expense: | |||||||||||||||||
Savings deposits | 104 | 1,235 | 61 | 1,400 | |||||||||||||
Time deposits | (52 | ) | 292 | (18 | ) | 222 | |||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | (56 | ) | 21 | (1 | ) | (36 | ) | ||||||||||
Total interest expense | (4 | ) | 1,548 | 42 | 1,586 | ||||||||||||
Net interest income | $ | 12,274 | $ | 2,385 | $ | 680 | $ | 15,339 | |||||||||
Comparision of Nine Months Ended September��30, 2019 Compared to 2018 Increase (Decrease) Due to | |||||||||||||||||
Volume | Rate | Rate/ Volume | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest income: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Taxable investment securities | $ | (5,894 | ) | $ | 1,346 | $ | (234 | ) | $ | (4,782 | ) | ||||||
Tax-advantaged investment securities | (264 | ) | (70 | ) | 15 | (319 | ) | ||||||||||
Held-to-maturity securities: | |||||||||||||||||
Taxable investment securities | (583 | ) | 447 | (26 | ) | (162 | ) | ||||||||||
Tax-advantaged investment securities | (651 | ) | (201 | ) | 25 | (827 | ) | ||||||||||
Investment in FHLB stock | (114 | ) | 97 | (11 | ) | (28 | ) | ||||||||||
Interest-earning deposits with other institutions | (567 | ) | 378 | (146 | ) | (335 | ) | ||||||||||
Loans | 81,793 | 18,349 | 7,802 | 107,944 | |||||||||||||
Total interest income | 73,720 | 20,346 | 7,425 | 101,491 | |||||||||||||
Interest expense: | |||||||||||||||||
Savings deposits | 1,113 | 2,728 | 651 | 4,492 | |||||||||||||
Time deposits | 266 | 1,470 | 284 | 2,020 | |||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 271 | 1,757 | 228 | 2,256 | |||||||||||||
Total interest expense | 1,650 | 5,955 | 1,163 | 8,768 | |||||||||||||
Net interest income | $ | 72,070 | $ | 14,391 | $ | 6,262 | $ | 92,723 | |||||||||
For the Three Months Ended September 30, | Variance | For the Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 4,833 | $ | 4,295 | $ | 538 | 12.53 | % | $ | 15,039 | $ | 12,431 | $ | 2,608 | 20.98 | % | ||||||||||||||||
Trust and investment services | 2,330 | 2,182 | 148 | 6.78 | % | 6,964 | 6,738 | 226 | 3.35 | % | ||||||||||||||||||||||
Bankcard services | 637 | 875 | (238 | ) | -27.20 | % | 2,614 | 2,637 | (23 | ) | -0.87 | % | ||||||||||||||||||||
BOLI income | 1,797 | 936 | 861 | 91.99 | % | 4,482 | 2,984 | 1,498 | 50.20 | % | ||||||||||||||||||||||
Gain on OREO, net | - | - | - | - | 129 | 3,540 | (3,411 | ) | -96.36 | % | ||||||||||||||||||||||
Gain on sale of building, net | - | - | - | 4,545 | - | 4,545 | - | |||||||||||||||||||||||||
Gain on eminent domain condemnation, net | - | - | - | 5,685 | - | 5,685 | - | |||||||||||||||||||||||||
Other | 2,297 | 1,824 | 473 | 25.93% | 6,944 | 4,393 | 2,551 | 58.07% | ||||||||||||||||||||||||
Total noninterest income | $ | 11,894 | $ | 10,112 | $ | 1,782 | 17.62 | % | $ | 46,402 | $ | 32,723 | $ | 13,679 | 41.80 | % | ||||||||||||||||
For the Three Months Ended September 30, | Variance | For the Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 30,122 | $ | 26,319 | $ | 3,803 | 14.45% | $ | 88,286 | $ | 69,684 | $ | 18,602 | 26.69% | ||||||||||||||||||
Occupancy | 3,976 | 4,168 | (192 | ) | -4.61% | 12,771 | 10,924 | 1,847 | 16.91% | |||||||||||||||||||||||
Equipment | 1,116 | 1,156 | (40 | ) | -3.46% | 3,577 | 2,910 | 667 | 22.92% | |||||||||||||||||||||||
Professional services | 1,688 | 1,154 | 534 | 46.27% | 5,653 | 4,374 | 1,279 | 29.24% | ||||||||||||||||||||||||
Software licenses and maintenance | 2,450 | 2,317 | 133 | 5.74% | 7,414 | 5,836 | 1,578 | 27.04% | ||||||||||||||||||||||||
Marketing and promotion | 1,517 | 1,134 | 383 | 33.77% | 4,149 | 3,638 | 511 | 14.05% | ||||||||||||||||||||||||
Amortization of intangible assets | 2,648 | 1,736 | 912 | 52.53% | 8,338 | 2,395 | 5,943 | 248.14% | ||||||||||||||||||||||||
Telecommunications expense | 656 | 622 | 34 | 5.47% | 2,126 | 1,711 | 415 | 24.25% | ||||||||||||||||||||||||
Regulatory assessments | 147 | 896 | (749 | ) | -83.59% | 1,805 | 2,276 | (471 | ) | -20.69% | ||||||||||||||||||||||
Insurance | 430 | 432 | (2 | ) | -0.46% | 1,368 | 1,278 | 90 | 7.04% | |||||||||||||||||||||||
Loan expense | 308 | 274 | 34 | 12.41% | 1,115 | 678 | 437 | 64.45% | ||||||||||||||||||||||||
Directors’ expenses | 314 | 275 | 39 | 14.18% | 921 | 785 | 136 | 17.32% | ||||||||||||||||||||||||
Stationery and supplies | 259 | 251 | 8 | 3.19% | 867 | 795 | 72 | 9.06% | ||||||||||||||||||||||||
Acquisition related expenses | 244 | 6,645 | (6,401 | ) | -96.33% | 6,005 | 7,942 | (1,937 | ) | -24.39% | ||||||||||||||||||||||
Other | 1,660 | 1,501 | 159 | 10.59% | 5,272 | 3,854 | 1,418 | 36.79% | ||||||||||||||||||||||||
Total noninterest expense | $ | 47,535 | $ | 48,880 | $ | (1,345 | ) | -2.75% | $ | 149,667 | $ | 119,080 | $ | 30,587 | 25.69% | |||||||||||||||||
Noninterest expense to average assets | 1.68% | 1.93% | 1.77% | 1.80% | ||||||||||||||||||||||||||||
Efficiency ratio (1) | 39.60% | 47.49% | 39.89% | 44.31% |
(1) | Noninterest expense divided by net interest income before provision for loan losses plus noninterest income. |
June 30, 2019 | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,348,415 | $ | 16,251 | $ | (2,417) | $ | 1,362,249 | 85.14% | ||||||||||||
CMO/REMIC - residential | 194,094 | 1,216 | (334) | 194,976 | 12.19% | ||||||||||||||||
Municipal bonds | 41,369 | 658 | (41) | 41,986 | 2.62% | ||||||||||||||||
Other securities | 809 | - | - | 809 | 0.05% | ||||||||||||||||
Total available-for-sale securities | $ | 1,584,687 | $ | 18,125 | $ | (2,792) | $ | 1,600,020 | 100.00% | ||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||
Government agency/GSE | $ | 128,721 | $ | 2,627 | $ | (414) | $ | 130,934 | 17.68% | ||||||||||||
Residential mortgage-backed securities | 175,552 | 1,480 | (415) | 176,617 | 24.11% | ||||||||||||||||
CMO | 211,436 | 5 | (4,358) | 207,083 | 29.04% | ||||||||||||||||
Municipal bonds | 212,404 | 3,245 | (1,251) | 214,398 | 29.17% | ||||||||||||||||
Total held-to-maturity securities | $ | 728,113 | $ | 7,357 | $ | (6,438) | $ | 729,032 | 100.00% | ||||||||||||
December 31, 2018 | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,494,106 | $ | 1,348 | $ | (20,946) | $ | 1,474,508 | 85.03% | ||||||||||||
CMO/REMIC - residential | 217,223 | 353 | (3,525) | 214,051 | 12.34% | ||||||||||||||||
Municipal bonds | 45,621 | 332 | (1,143) | 44,810 | 2.59% | ||||||||||||||||
Other securities | 716 | - | - | 716 | 0.04% | ||||||||||||||||
Total available-for-sale securities | $ | 1,757,666 | $ | 2,033 | $ | (25,614) | $ | 1,734,085 | 100.00% | ||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||
Government agency/GSE | $ | 138,274 | $ | 572 | $ | (2,622) | $ | 136,224 | 18.57% | ||||||||||||
Residential mortgage-backed securities | 153,874 | - | (3,140) | 150,734 | 20.67% | ||||||||||||||||
CMO | 215,336 | - | (12,081) | 203,255 | 28.93% | ||||||||||||||||
Municipal bonds | 236,956 | 556 | (6,188) | 231,324 | 31.83% | ||||||||||||||||
Total held-to-maturity securities | $ | 744,440 | $ | 1,128 | $ | (24,031) | $ | 721,537 | 100.00% | ||||||||||||
September 30, 2019 | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,127,395 | $ | 20,105 | $ | (1,341) | $ | 1,146,159 | 72.99% | ||||||||||||
CMO/REMIC - residential | 381,615 | 1,649 | (336) | 382,928 | 24.38% | ||||||||||||||||
Municipal bonds | 39,564 | 924 | (1) | 40,487 | 2.58% | ||||||||||||||||
Other securities | 832 | - | - | 832 | 0.05% | ||||||||||||||||
Total available-for-sale securities | $ | 1,549,406 | $ | 22,678 | $ | (1,678) | $ | 1,570,406 | 100.00% | ||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||
Government agency/GSE | $ | 123,917 | $ | 3,238 | $ | (170) | $ | 126,985 | 17.60% | ||||||||||||
Residential mortgage-backed securities | 172,919 | 2,624 | (3) | 175,540 | 24.56% | ||||||||||||||||
CMO | 204,263 | 76 | (1,467) | 202,872 | 29.02% | ||||||||||||||||
Municipal bonds | 202,854 | 4,198 | (558) | 206,494 | 28.82% | ||||||||||||||||
Total held-to-maturity securities | $ | 703,953 | $ | 10,136 | $ | (2,198) | $ | 711,891 | 100.00% | ||||||||||||
December 31, 2018 | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,494,106 | $ | 1,348 | $ | (20,946) | $ | 1,474,508 | 85.03% | ||||||||||||
CMO/REMIC - residential | 217,223 | 353 | (3,525) | 214,051 | 12.34% | ||||||||||||||||
Municipal bonds | 45,621 | 332 | (1,143) | 44,810 | 2.59% | ||||||||||||||||
Other securities | 716 | - | - | 716 | 0.04% | ||||||||||||||||
Total available-for-sale securities | $ | 1,757,666 | $ | 2,033 | $ | (25,614) | $ | 1,734,085 | 100.00% | ||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||
Government agency/GSE | $ | 138,274 | $ | 572 | $ | (2,622) | $ | 136,224 | 18.57% | ||||||||||||
Residential mortgage-backed securities | 153,874 | - | (3,140) | 150,734 | 20.67% | ||||||||||||||||
CMO | 215,336 | - | (12,081) | 203,255 | 28.93% | ||||||||||||||||
Municipal bonds | 236,956 | 556 | (6,188) | 231,324 | 31.83% | ||||||||||||||||
Total held-to-maturity securities | $ | 744,440 | $ | 1,128 | $ | (24,031) | $ | 721,537 | 100.00% | ||||||||||||
June 30, 2019 | September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | - | $ | - | $ | 228,518 | $ | (2,417) | $ | 228,518 | $ | (2,417) | $ | 2 | $ | - | $ | 127,904 | $ | (1,341 | ) | $ | 127,906 | $ | (1,341 | ) | |||||||||||||||||||||||
CMO/REMIC - residential | - | - | 71,924 | (334) | 71,924 | (334) | 122,595 | (156 | ) | 39,498 | (180 | ) | 162,093 | (336 | ) | ||||||||||||||||||||||||||||||||||
Municipal bonds | - | - | 3,287 | (41) | 3,287 | (41) | - | - | 564 | (1 | ) | 564 | (1 | ) | |||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | - | $ | - | $ | 303,729 | $ | (2,792) | $ | 303,729 | $ | (2,792) | $ | 122,597 | $ | (156 | ) | $ | 167,966 | $ | (1,522 | ) | $ | 290,563 | $ | (1,678 | ) | ||||||||||||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||||||||||
Government agency/GSE | $ | - | $ | - | $ | 39,016 | $ | (414) | $ | 39,016 | $ | (414) | $ | - | $ | - | $ | 19,923 | $ | (170 | ) | $ | 19,923 | $ | (170 | ) | |||||||||||||||||||||||
Residential mortgage-backed securities | 10,722 | (45) | 75,536 | (370) | 86,258 | (415) | 5,021 | (3 | ) | - | - | 5,021 | (3 | ) | |||||||||||||||||||||||||||||||||||
CMO | - | - | 201,974 | (4,358) | 201,974 | (4,358) | - | - | 178,297 | (1,467 | ) | 178,297 | (1,467 | ) | |||||||||||||||||||||||||||||||||||
Municipal bonds | - | - | 49,102 | (1,251) | 49,102 | (1,251) | 3,037 | (5 | ) | 32,217 | (553 | ) | 35,254 | (558 | ) | ||||||||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 10,722 | $ | (45) | $ | 365,628 | $ | (6,393) | $ | 376,350 | $ | (6,438) | $ | 8,058 | $ | (8 | ) | $ | 230,437 | $ | (2,190 | ) | $ | 238,495 | $ | (2,198 | ) | ||||||||||||||||||||||
December 31, 2018 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 692,311 | $ | (4,864) | $ | 593,367 | $ | (16,082) | $ | 1,285,678 | $ | (20,946) | $ | 692,311 | $ | (4,864 | ) | $ | 593,367 | $ | (16,082 | ) | $ | 1,285,678 | $ | (20,946 | ) | ||||||||||||||||||||||
CMO/REMIC - residential | 36,582 | (365) | 135,062 | (3,160) | 171,644 | (3,525) | 36,582 | (365 | ) | 135,062 | (3,160 | ) | 171,644 | (3,525 | ) | ||||||||||||||||||||||||||||||||||
Municipal bonds | 9,568 | (188) | 14,181 | (955) | 23,749 | (1,143) | 9,568 | (188 | ) | 14,181 | (955 | ) | 23,749 | (1,143 | ) | ||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 738,461 | $ | (5,417) | $ | 742,610 | $ | (20,197) | $ | 1,481,071 | $ | (25,614) | $ | 738,461 | $ | (5,417 | ) | $ | 742,610 | $ | (20,197 | ) | $ | 1,481,071 | $ | (25,614 | ) | ||||||||||||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||||||||||
Government agency/GSE | $ | 7,479 | $ | (15) | $ | 54,944 | $ | (2,607) | $ | 62,423 | $ | (2,622) | $ | 7,479 | $ | (15 | ) | $ | 54,944 | $ | (2,607 | ) | $ | 62,423 | $ | (2,622 | ) | ||||||||||||||||||||||
Residential mortgage-backed securities | 59,871 | (484) | 90,863 | (2,656) | 150,734 | (3,140) | 59,871 | (484 | ) | 90,863 | (2,656 | ) | 150,734 | (3,140 | ) | ||||||||||||||||||||||||||||||||||
CMO | - | - | 203,254 | (12,081) | 203,254 | (12,081) | - | - | 203,254 | (12,081 | ) | 203,254 | (12,081 | ) | |||||||||||||||||||||||||||||||||||
Municipal bonds | 70,989 | (778) | 77,723 | (5,410) | 148,712 | (6,188) | 70,989 | (778 | ) | 77,723 | (5,410 | ) | 148,712 | (6,188 | ) | ||||||||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 138,339 | $ | (1,277) | $ | 426,784 | $ | (22,754) | $ | 565,123 | $ | (24,031) | $ | 138,339 | $ | (1,277 | ) | $ | 426,784 | $ | (22,754 | ) | $ | 565,123 | $ | (24,031 | ) | ||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
Total Loans and Leases | Non-PCI Loansand Leases | PCI Loans | Total Loans and Leases | Total Loans and Leases | Non-PCI Loansand Leases | PCI Loans | Total Loans and Leases | ||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 917,953 | $ | 1,002,209 | $ | 519 | $ | 1,002,728 | $ | 921,678 | $ | 1,002,209 | $ | 519 | $ | 1,002,728 | |||||||||||||||||
SBA | 327,606 | 350,043 | 1,258 | 351,301 | 319,571 | 350,043 | 1,258 | 351,301 | |||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 5,417,351 | 5,394,229 | 14,407 | 5,408,636 | 5,375,668 | 5,394,229 | 14,407 | 5,408,636 | |||||||||||||||||||||||||
Construction | 116,457 | 122,782 | - | 122,782 | 119,931 | 122,782 | - | 122,782 | |||||||||||||||||||||||||
SFR mortgage | 278,285 | 296,504 | 145 | 296,649 | 278,644 | 296,504 | 145 | 296,649 | |||||||||||||||||||||||||
Dairy & livestock and agribusiness | 301,752 | 393,843 | 700 | 394,543 | 311,229 | 393,843 | 700 | 394,543 | |||||||||||||||||||||||||
Municipal lease finance receivables | 59,985 | 64,186 | - | 64,186 | 54,468 | 64,186 | - | 64,186 | |||||||||||||||||||||||||
Consumer and other loans | 120,779 | 128,429 | 185 | 128,614 | 117,128 | 128,429 | 185 | 128,614 | |||||||||||||||||||||||||
Gross loans | 7,540,168 | 7,752,225 | 17,214 | 7,769,439 | 7,498,317 | 7,752,225 | 17,214 | 7,769,439 | |||||||||||||||||||||||||
Less: Deferred loan fees, net | (4,478 | ) | (4,828 | ) | - | (4,828 | ) | (3,866 | ) | (4,828 | ) | - | (4,828 | ) | |||||||||||||||||||
Gross loans, net of deferred loan fees | 7,535,690 | 7,747,397 | 17,214 | 7,764,611 | 7,494,451 | 7,747,397 | 17,214 | 7,764,611 | |||||||||||||||||||||||||
Less: Allowance for loan losses | (67,132 | ) | (63,409 | ) | (204 | ) | (63,613 | ) | (68,672 | ) | (63,409 | ) | (204 | ) | (63,613 | ) | |||||||||||||||||
Total loans and lease finance receivables | $ | 7,468,558 | $ | 7,683,988 | $ | 17,010 | $ | 7,700,998 | $ | 7,425,779 | $ | 7,683,988 | $ | 17,010 | $ | 7,700,998 | |||||||||||||||||
June 30, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||
Total Loans | Commercial Real Estate Loans | Total Loans | Commercial Real Estate Loans | |||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Los Angeles County | $ | 3,356,850 | 44.5% | $ | 2,336,783 | 43.1% | $ | 3,301,874 | 44.0% | $ | 2,267,332 | 42.2% | ||||||||||||||||||||
Central Valley | 1,081,432 | 14.3% | 854,911 | 15.8% | 1,112,079 | 14.8% | 879,344 | 16.3% | ||||||||||||||||||||||||
Orange County | 1,008,152 | 13.5% | 665,360 | 12.4% | ||||||||||||||||||||||||||||
Inland Empire | 1,001,398 | 13.3% | 878,518 | 16.2% | 976,892 | 13.0% | 853,110 | 15.9% | ||||||||||||||||||||||||
Orange County | 989,992 | 13.1% | 651,925 | 12.0% | ||||||||||||||||||||||||||||
Central Coast | 426,121 | 5.7% | 339,141 | 6.3% | 420,226 | 5.6% | 343,152 | 6.4% | ||||||||||||||||||||||||
San Diego | 224,599 | 3.0% | 128,176 | 2.4% | 227,235 | 3.0% | 129,115 | 2.4% | ||||||||||||||||||||||||
Other California | 146,573 | 1.9% | 70,081 | 1.3% | 140,005 | 1.9% | 70,640 | 1.3% | ||||||||||||||||||||||||
Out of State | 313,203 | 4.2% | 157,816 | 2.9% | 311,854 | 4.2% | 167,615 | 3.1% | ||||||||||||||||||||||||
$ | 7,540,168 | 100.0% | $ | 5,417,351 | 100.0% | $ | 7,498,317 | 100.0% | $ | 5,375,668 | 100.0% | |||||||||||||||||||||
June 30, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||||
Loan Balance | Percent | Percent Owner- Occupied (1) | Average Loan Balance | Loan Balance | Percent | Percent Owner- Occupied (1) | Average Loan Balance | |||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||
Multi-family | $ | 572,908 | 10.6% | 0.6% | $ | 1,628 | ||||||||||||||||||||||||||||
Industrial | 1,903,504 | 35.1% | 55.2% | 1,429 | $ | 1,890,465 | 35.2% | 54.6% | $ | 1,430 | ||||||||||||||||||||||||
Office | 947,407 | 17.5% | 26.7% | 1,528 | 921,565 | 17.1% | 26.9% | 1,506 | ||||||||||||||||||||||||||
Retail | 828,133 | 15.3% | 13.6% | 1,732 | 800,406 | 14.9% | 13.1% | 1,707 | ||||||||||||||||||||||||||
Multi-family | 577,700 | 10.7% | 0.5% | 1,596 | ||||||||||||||||||||||||||||||
Medical | 280,096 | 5.2% | 44.8% | 1,819 | 279,805 | 5.2% | 45.3% | 1,829 | ||||||||||||||||||||||||||
Secured by farmland (2) | 225,553 | 4.1% | 100.0% | 2,032 | 245,574 | 4.6% | 100.0% | 2,030 | ||||||||||||||||||||||||||
Other (3) | 659,750 | 12.2% | 49.0% | 1,416 | 660,153 | 12.3% | 50.7% | 1,423 | ||||||||||||||||||||||||||
Total commercial real estate | $ | 5,417,351 | 100.0% | $ | 5,375,668 | 100.0% | 39.0% | 1,535 | ||||||||||||||||||||||||||
(1) | Represents percentage of reported owner-occupied at origination in each real estate loan category. |
(2) | The loans secured by farmland included |
(3) | Other loans consist of a variety of loan types, none of which exceeds 2.0% of total commercial real estate loans. |
June 30, 2019 | December 31, 2018 (1) | September 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Nonaccrual loans | $ | 11,024 | $ | 16,442 | $ | 6,363 | $ | 16,442 | ||||||||
Troubled debt restructured loans (nonperforming) | 263 | 3,509 | 249 | 3,509 | ||||||||||||
OREO, net | 2,275 | 420 | 9,450 | 420 | ||||||||||||
Total nonperforming assets | $ | 13,562 | $ | 20,371 | $ | 16,062 | $ | 20,371 | ||||||||
Troubled debt restructured performing loans | $ | 3,219 | $ | 3,594 | $ | 3,168 | $ | 3,594 | ||||||||
Percentage of nonperforming assets to total loans outstanding, net of deferred fees, and OREO | 0.18% | 0.26% | 0.21% | 0.26% | ||||||||||||
Percentage of nonperforming assets to total assets | 0.12% | 0.18% | 0.14% | 0.18% |
(1) | Excludes PCI loans. |
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
Balance | Number of Loans | Balance | Number of Loans | Balance | Number of Loans | Balance | Number of Loans | |||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Performing TDRs: | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 95 | 2 | $ | 135 | 2 | $ | 88 | 2 | $ | 135 | 2 | ||||||||||||||||||||||
SBA | 550 | 1 | 575 | 1 | 542 | 1 | 575 | 1 | ||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||||
Commercial real estate | 436 | 1 | 472 | 1 | 417 | 1 | 472 | 1 | ||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
SFR mortgage | 2,138 | 8 | 2,412 | 9 | 2,121 | 8 | 2,412 | 9 | ||||||||||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Total performing TDRs | $ | 3,219 | 12 | $ | 3,594 | 13 | $ | 3,168 | 12 | $ | 3,594 | 13 | ||||||||||||||||||||||
Nonperforming TDRs: | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 9 | 1 | $ | 21 | 1 | $ | 1 | 1 | $ | 21 | 1 | ||||||||||||||||||||||
SBA | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||||
Commercial real estate | - | - | 3,143 | 1 | - | - | 3,143 | 1 | ||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
SFR mortgage | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Dairy & livestock and agribusiness | - | - | 78 | 1 | - | - | 78 | 1 | ||||||||||||||||||||||||||
Consumer and other | 254 | 1 | 267 | 1 | 248 | 1 | 267 | 1 | ||||||||||||||||||||||||||
Total nonperforming TDRs | $ | 263 | 2 | $ | 3,509 | 4 | $ | 249 | 2 | $ | 3,509 | 4 | ||||||||||||||||||||||
Total TDRs | $ | 3,482 | 14 | $ | 7,103 | 17 | $ | 3,417 | 14 | $ | 7,103 | 17 | ||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,993 | $ | 8,388 | $ | 7,490 | $ | 3,026 | $ | 204 | $ | 1,550 | $ | 1,993 | $ | 8,388 | $ | 7,490 | $ | 3,026 | |||||||||||||||||||||
SBA | 5,082 | 4,098 | 2,892 | 3,005 | 574 | 2,706 | 5,082 | 4,098 | 2,892 | 3,005 | |||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1,095 | 1,134 | 6,068 | 5,856 | 6,517 | 1,083 | 1,095 | 1,134 | 6,068 | 5,856 | |||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
SFR mortgage | 2,720 | 2,894 | 2,937 | 2,961 | 1,578 | 888 | 2,720 | 2,894 | 2,937 | 2,961 | |||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness | - | - | 78 | 775 | 800 | - | - | - | 78 | 775 | |||||||||||||||||||||||||||||||
Consumer and other loans | 397 | 477 | 486 | 807 | 509 | 385 | 397 | 477 | 486 | 807 | |||||||||||||||||||||||||||||||
Total | $ | 11,287 | $ | 16,991 | $ | 19,951 | $ | 16,430 | $ | 10,182 | $ | 6,612 | $ | 11,287 | $ | 16,991 | $ | 19,951 | $ | 16,430 | |||||||||||||||||||||
% of Total gross loans | 0.15% | 0.22% | 0.26% | 0.22% | 0.21% | 0.09% | 0.15% | 0.22% | 0.26% | 0.22% | |||||||||||||||||||||||||||||||
Past due 30-89 days: | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 310 | $ | 369 | $ | 909 | $ | 274 | $ | - | $ | 756 | $ | 310 | $ | 369 | $ | 909 | $ | 274 | |||||||||||||||||||||
SBA | - | 601 | 1,307 | 123 | - | 303 | - | 601 | 1,307 | 123 | |||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | - | 124 | 2,789 | - | - | 368 | - | 124 | 2,789 | - | |||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
SFR mortgage | - | - | 285 | - | - | - | - | - | 285 | - | |||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Consumer and other loans | 22 | 101 | - | 98 | 47 | - | 22 | 101 | - | 98 | |||||||||||||||||||||||||||||||
Total | $ | 332 | $ | 1,195 | $ | 5,290 | $ | 495 | $ | 47 | $ | 1,427 | $ | 332 | $ | 1,195 | $ | 5,290 | $ | 495 | |||||||||||||||||||||
% of Total gross loans | 0.004% | 0.02% | 0.07% | 0.01% | 0.001% | 0.02% | 0.004% | 0.02% | 0.07% | 0.01% | |||||||||||||||||||||||||||||||
OREO: | |||||||||||||||||||||||||||||||||||||||||
SBA | $ | 444 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 2,275 | $ | 2,275 | $ | - | $ | - | $ | - | 2,275 | 2,275 | 2,275 | - | - | ||||||||||||||||||||||||||
SFR mortgage | - | - | 420 | 420 | - | 6,731 | - | - | 420 | 420 | |||||||||||||||||||||||||||||||
Total | $ | 2,275 | $ | 2,275 | $ | 420 | $ | 420 | $ | - | $ | 9,450 | $ | 2,275 | $ | 2,275 | $ | 420 | $ | 420 | |||||||||||||||||||||
Total nonperforming, past due, and OREO | $ | 13,894 | $ | 20,461 | $ | 25,661 | $ | 17,345 | $ | 10,229 | $ | 17,489 | $ | 13,894 | $ | 20,461 | $ | 25,661 | $ | 17,345 | |||||||||||||||||||||
% of Total gross loans | 0.18% | 0.27% | 0.33% | 0.23% | 0.21% | 0.23% | 0.18% | 0.27% | 0.33% | 0.23% |
As of and For the Six Months Ended June 30, | As of and For the Nine Months Ended September 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||
Allowance for loan losses at beginning of period | $ | 63,613 | $ | 59,585 | $ 63,613 | $ 59,585 | |||||||
Charge-offs: | |||||||||||||
Commercial and industrial | (48 | ) | - | (48) | - | ||||||||
SBA | (230 | ) | - | (295) | (257) | ||||||||
Commercial real estate | - | - | - | - | |||||||||
Construction | - | - | - | - | |||||||||
SFR mortgage | - | - | - | - | |||||||||
Dairy & livestock and agribusiness | (78 | ) | - | (78) | - | ||||||||
Consumer and other loans | (4 | ) | (9 | ) | (7) | (10) | |||||||
Total charge-offs | (360 | ) | (9 | ) | (428) | (267) | |||||||
Recoveries: | |||||||||||||
Commercial and industrial | 159 | 37 | 253 | 81 | |||||||||
SBA | 9 | 10 | 9 | 15 | |||||||||
Commercial real estate | - | - | - | - | |||||||||
Construction | 6 | 1,930 | 9 | 1,945 | |||||||||
SFR mortgage | 183 | - | 191 | - | |||||||||
Dairy & livestock and agribusiness | 19 | 19 | 19 | 19 | |||||||||
Consumer and other loans | 3 | 11 | 6 | 129 | |||||||||
Total recoveries | 379 | 2,007 | 487 | 2,189 | |||||||||
Net recoveries | 19 | 1,998 | 59 | 1,922 | |||||||||
Provision for (recapture of) loan losses | 3,500 | (2,000 | ) | 5,000 | (1,500) | ||||||||
Allowance for loan losses at end of period | $ | 67,132 | $ | 59,583 | $ 68,672 | $ 60,007 | |||||||
Summary of reserve for unfunded loan commitments: | |||||||||||||
Reserve for unfunded loan commitments at beginning of period | $ | 8,959 | $ | 6,306 | $ 8,959 | $ 6,306 | |||||||
Estimated fair value of reserve for unfunded loan commitment assumed from Community Bank | - | 2,903 | |||||||||||
Provision for unfunded loan commitments | - | - | - | - | |||||||||
Reserve for unfunded loan commitments at end of period | $ | 8,959 | $ | 6,306 | $ 8,959 | $ 9,209 | |||||||
Reserve for unfunded loan commitments to total unfunded loan commitments | 0.53% | 0.59% | 0.55% | 0.54% | |||||||||
Amount of total loans at end of period (1) | $ | 7,535,690 | $ | 4,816,956 | $ 7,494,451 | $ 7,582,459 | |||||||
Average total loans outstanding (1) | $ | 7,610,241 | $ | 4,785,118 | $ 7,571,502 | $ 5,312,558 | |||||||
Net recoveries to average total loans | 0.00% | 0.04% | 0.00% | 0.04% | |||||||||
Net recoveries to total loans at end of period | 0.00% | 0.04% | 0.00% | 0.03% | |||||||||
Allowance for loan losses to average total loans | 0.88% | 1.25% | 0.91% | 1.13% | |||||||||
Allowance for loan losses to total loans at end of period | 0.89% | 1.24% | 0.92% | 0.79% | |||||||||
Net recoveries to allowance for loan losses | 0.03% | 3.35% | 0.09% | 3.20% | |||||||||
Net recoveries to provision for (recapture of) loan losses | 0.54% | -99.90% | 1.18% | -128.13% |
(1) | Includes PCI loans and is net of deferred loan origination fees, costs and discounts. |
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
Balance | Percent | Balance | Percent | Balance | Percent | Balance | Percent | |||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 5,250,235 | 60.61% | $ | 5,204,787 | 58.96% | $ | 5,385,104 | 61.23% | $ | 5,204,787 | 58.96% | ||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||||||||||
Investment checking | 436,090 | 5.03% | 460,972 | 5.22% | 433,615 | 4.93% | 460,972 | 5.22% | ||||||||||||||||||||||||||
Money market | 2,099,751 | 24.24% | 2,236,018 | 25.33% | 2,110,780 | 24.00% | 2,236,018 | 25.33% | ||||||||||||||||||||||||||
Savings | 397,153 | 4.58% | 393,769 | 4.46% | 403,108 | 4.59% | 393,769 | 4.46% | ||||||||||||||||||||||||||
Time deposits | 479,594 | 5.54% | 531,944 | 6.03% | 461,723 | 5.25% | 531,944 | 6.03% | ||||||||||||||||||||||||||
Total deposits | $ | 8,662,823 | 100.00% | $ | 8,827,490 | 100.00% | $ | 8,794,330 | 100.00% | $ | 8,827,490 | 100.00% | ||||||||||||||||||||||
Maturity by Period | Maturity by Period | |||||||||||||||||||||||||||||||||||||||
Total | Less Than One Year | One Year Through Three Years | Four Years Through Five Years | Over Five Years | Total | Less Than One Year | One Year Through Three Years | Four Years Through Five Years | Over Five Years | |||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Deposits (1) | $ | 8,662,823 | $ | 8,539,629 | $ | 111,359 | $ | 3,514 | $ | 8,321 | $ | 8,794,330 | $ | 8,674,968 | $ | 107,752 | $ | 3,251 | $ | 8,359 | ||||||||||||||||||||
Customer repurchase agreements (1) | 421,271 | 421,271 | - | - | - | 407,850 | 407,850 | - | - | - | ||||||||||||||||||||||||||||||
Junior subordinated debentures (1) | 25,774 | - | - | - | 25,774 | 25,774 | - | - | - | 25,774 | ||||||||||||||||||||||||||||||
Deferred compensation | 20,953 | 745 | 1,359 | 876 | 17,973 | 23,305 | 723 | 1,356 | 807 | 20,419 | ||||||||||||||||||||||||||||||
Operating leases | 23,211 | 7,556 | 9,845 | 4,180 | 1,630 | 23,533 | 7,349 | 9,905 | 4,297 | 1,982 | ||||||||||||||||||||||||||||||
Affordable housing investment | 6,736 | 4,661 | 1,984 | 55 | 36 | 6,242 | 4,167 | 1,984 | 55 | 36 | ||||||||||||||||||||||||||||||
Total | $ | 9,160,768 | $ | 8,973,862 | $ | 124,547 | $ | 8,625 | $ | 53,734 | $ | 9,281,034 | $ | 9,095,057 | $ | 120,997 | $ | 8,410 | $ | 56,570 | ||||||||||||||||||||
(1) | Amounts exclude accrued interest. |
Maturity by Period | ||||||||||||||||||||
Total | Less Than One Year | One Year to Three Years | Four Years to Five Years | After Five Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commitment to extend credit: | ||||||||||||||||||||
Commercial and industrial | $ | 975,463 | $ | 705,376 | $ | 212,341 | $ | 14,211 | $ | 43,535 | ||||||||||
SBA | 585 | 60 | 4 | - | 521 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 244,242 | 46,984 | 82,328 | 96,632 | 18,298 | |||||||||||||||
Construction | 79,736 | 53,419 | 23,117 | - | 3,200 | |||||||||||||||
SFR Mortgage | 7,638 | 2,106 | 3,500 | - | 2,032 | |||||||||||||||
Dairy & livestock and agribusiness (1) | 180,983 | 159,352 | 21,231 | 400 | - | |||||||||||||||
Consumer and other loans | 146,470 | 17,756 | 7,199 | 4,423 | 117,092 | |||||||||||||||
Total commitment to extend credit | 1,635,117 | 985,053 | 349,720 | 115,666 | 184,678 | |||||||||||||||
Obligations under letters of credit | 50,411 | 43,031 | 7,132 | 248 | - | |||||||||||||||
Total | $ | 1,685,528 | $ | 1,028,084 | $ | 356,852 | $ | 115,914 | $ | 184,678 | ||||||||||
Maturity by Period | ||||||||||||||||||||
Total | Less Than One Year | One Year to Three Years | Four Years to Five Years | After Five Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commitment to extend credit: | ||||||||||||||||||||
Commercial and industrial | $ | 951,334 | $ | 695,927 | $ | 160,214 | $ | 7,333 | $ | 87,860 | ||||||||||
SBA | 410 | 60 | 4 | - | 346 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 253,648 | 48,533 | 86,165 | 100,747 | 18,203 | |||||||||||||||
Construction | 80,342 | 63,445 | 13,697 | - | 3,200 | |||||||||||||||
SFR Mortgage | 6,998 | 5,006 | - | - | 1,992 | |||||||||||||||
Dairy & livestock and agribusiness (1) | 151,947 | 81,488 | 70,254 | 205 | - | |||||||||||||||
Consumer and other loans | 139,059 | 17,430 | 7,036 | 4,894 | 109,699 | |||||||||||||||
Total commitment to extend credit | 1,583,738 | 911,889 | 337,370 | 113,179 | 221,300 | |||||||||||||||
Obligations under letters of credit | 50,244 | 41,383 | 8,613 | 248 | - | |||||||||||||||
Total | $ | 1,633,982 | $ | 953,272 | $ | 345,983 | $ | 113,427 | $ | 221,300 | ||||||||||
(1) | Total commitments to extend credit to agribusiness were |
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Capital Ratios | Adequately Capitalized Ratios | Well Capitalized Ratios | CVB Financial Corp. Consolidated | Citizens Business Bank | CVB Financial Corp. Consolidated | Citizens Business Bank | Adequately Capitalized Ratios | Well Capitalized Ratios | CVB Financial Corp. Consolidated | Citizens Business Bank | CVB Financial Corp. Consolidated | Citizens Business Bank | ||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio | 4.00% | 5.00% | 11.94% | 11.80% | 10.98% | 10.90% | 4.00% | 5.00% | 12.23% | 12.09% | 10.98% | 10.90% | ||||||||||||||||||||||||||||||||||||
Common equity Tier I capital ratio | 4.50% | 6.50% | 14.23% | 14.34% | 13.04% | 13.22% | 4.50% | 6.50% | 14.64% | 14.75% | 13.04% | 13.22% | ||||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio | 6.00% | 8.00% | 14.51% | 14.34% | 13.32% | 13.22% | 6.00% | 8.00% | 14.93% | 14.75% | 13.32% | 13.22% | ||||||||||||||||||||||||||||||||||||
Total risk-based capital ratio | 8.00% | 10.00% | 15.39% | 15.22% | 14.13% | 14.03% | 8.00% | 10.00% | 15.83% | 15.65% | 14.13% | 14.03% |
Equity | Tier 1 | Total | Leverage | |||||||||||||||||||||||||||||
Tier 1 Ratio | Capital Ratio | Capital Ratio | Ratio | Equity Tier 1 Ratio | Tier 1 Capital Ratio | Total Capital Ratio | Leverage Ratio | |||||||||||||||||||||||||
Regulatory minimum ratio | 4.5% | 6.0% | 8.0% | 4.0% | 4.5% | 6.0% | 8.0% | 4.0% | ||||||||||||||||||||||||
Plus: Capital conservation buffer requirement | 2.5% | 2.5% | 2.5% | - | 2.5% | 2.5% | 2.5% | - | ||||||||||||||||||||||||
Regulatory minimum ratio plus capital conservation buffer | 7.0% | 8.5% | 10.5% | 4.0% | 7.0% | 8.5% | 10.5% | 4.0% |
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Average cash and cash equivalents | $ | 184,301 | $ | 255,226 | $ | 237,244 | $ | 237,817 | ||||||||
Percentage of total average assets | 1.63% | 3.11% | 2.10% | 2.69% | ||||||||||||
Net cash provided by operating activities | $ | 82,602 | $ | 68,326 | $ | 147,410 | $ | 116,564 | ||||||||
Net cash provided by investing activities | 438,532 | 180,334 | 538,256 | 874,202 | ||||||||||||
Net cash used in financing activities | (509,242) | (211,548) | (412,066) | (940,668) | ||||||||||||
Net increase in cash and cash equivalents | $ | 11,892 | $ | 37,112 | $ | 273,600 | $ | 50,098 | ||||||||
Estimated Net Interest Income Sensitivity (1) | ||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||
Estimated Net Interest Income Sensitivity (1) | Estimated Net Interest Income Sensitivity (1) | |||||||||||||||||||||||||||||||||||||||
24-month Period | 24-month Period | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||
Interest Rate Scenario | 12-month Period | (Cumulative) | Interest Rate Scenario | 12-month Period | (Cumulative) | 12-month Period | 24-month Period(Cumulative) | Interest Rate Scenario | 12-month Period | 24-month Period(Cumulative) | ||||||||||||||||||||||||||||||
+ 200 basis points | 3.80% | 7.59% | + 200 basis points | 3.80% | 7.40% | 4.50% | 8.70% | + 200 basis points | 3.80% | 7.40% | ||||||||||||||||||||||||||||||
- 200 basis points | -4.63% | -9.24% | - 200 basis points | -5.29% | -10.26% | |||||||||||||||||||||||||||||||||||
- 100 basis points | -2.30% | -5.00% | - 200 basis points | -5.29% | -10.26% |
(1) | Percentage change from base. |
Instantaneous Rate Change | June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | ||||||||||||||||||||
200 bp decrease in interest rates | -39.3% | -24.4% | ||||||||||||||||||||||
100 bp decrease in interest rates | -15.2% | -10.2% | -19.6% | -10.2% | ||||||||||||||||||||
100 bp increase in interest rates | 9.4% | 5.8% | 13.3% | 5.8% | ||||||||||||||||||||
200 bp increase in interest rates | 16.5% | 10.3% | 23.3% | 10.3% | ||||||||||||||||||||
300 bp increase in interest rates | 22.0% | 13.8% | 31.0% | 13.8% | ||||||||||||||||||||
400 bp increase in interest rates | 26.5% | 16.6% | 37.1% | 16.6% |
Period | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Average Price Paid Per Share | Maximum Number of Shares Available for Repurchase Under the Plans or Programs | |||||||||
July 1 - 31, 2019 | - | $ | - | 9,577,917 | ||||||||
August 1 - 31, 2019 | 584 | 20.03 | 9,577,333 | |||||||||
September 1 - 30, 2019 | 321 | 20.03 | 9,577,012 | |||||||||
Total | 905 | 20.03 | 9,577,012 | |||||||||
Exhibit No. | Description of Exhibits | |||
10.1 | ||||
10.2 | ||||
31.1 | ||||
31.2 | ||||
32.1 | ||||
32.2 | ||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH | XBRL Taxonomy Extension Schema Document | |||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, has been formatted in Inline XBRL. |
† | Indicates a management contract or compensation plan. |
(1) | Incorporated herein by reference to Exhibit 10.1 to our Form 8-K filed with the SEC on July 19, 2019. |
(2) | Incorporated herein by reference to Exhibit 10.2 to our Form 8-K filed with the SEC on July 19, 2019. |
CVB FINANCIAL CORP. | ||||
(Registrant) | ||||
Date: | ||||
/s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||
Executive Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |