California | 95-3629339 | |
(State or other jurisdiction of | ||
Incorporation or organization) | (I.R.S. Employer Identification No.) | |
701 North Haven Ave., Suite 350 | ||
Ontario, California | 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. | ||||||
ITEM 3. | ||||||
ITEM 4. | ||||||
PART II – | ||||||
ITEM 1. | ||||||
ITEM 1A. | ||||||
ITEM 2. | ||||||
ITEM 3. | ||||||
ITEM 4. | ||||||
ITEM 5. | ||||||
ITEM 6. | ||||||
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 |
2020 | December 31, 2019 | ||||||||
Assets | |||||||||
Cash and due from banks | $ | 138,615 | $ | 158,310 | |||||
Interest-earning balances due from Federal Reserve | 567,124 | 27,208 | |||||||
Total cash and cash equivalents | 705,739 | 185,518 | |||||||
Interest-earning balances due from depository institutions | 23,799 | 2,931 | |||||||
Investment securities available-for-sale, at fair value (with amortized cost of $1,621,236 atMarch 31, 2020, and $1,718,357 at December 31, 2019) | 1,679,755 | 1,740,257 | |||||||
Investment securities held-to-maturity (with fair value of $657,819 at March 31, 2020,and $678,948 at December 31, 2019) | 642,255 | 674,452 | |||||||
Total investment securities | 2,322,010 | 2,414,709 | |||||||
Investment in stock of Federal Home Loan Bank (FHLB) | 17,688 | 17,688 | |||||||
Loans and lease finance receivables | 7,466,152 | 7,564,577 | |||||||
Allowance for credit losses | (82,641 | ) | (68,660 | ) | |||||
Net loans and lease finance receivables | 7,383,511 | 7,495,917 | |||||||
Premises and equipment, net | 52,867 | 53,978 | |||||||
Bank owned life insurance (BOLI) | 225,455 | 226,281 | |||||||
Accrued interest receivable | 26,855 | 28,122 | |||||||
Intangibles | 40,541 | 42,986 | |||||||
Goodwill | 663,707 | 663,707 | |||||||
Other real estate owned (OREO) | 4,889 | 4,889 | |||||||
Income taxes | 10,473 | 35,587 | |||||||
Other assets | 129,354 | 110,137 | |||||||
Total assets | $ | 11,606,888 | $ | 11,282,450 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Liabilities: | |||||||||
Deposits: | |||||||||
Noninterest-bearing | $ | 5,572,649 | $ | 5,245,517 | |||||
Interest-bearing | 3,540,955 | 3,459,411 | |||||||
Total deposits | 9,113,604 | 8,704,928 | |||||||
Customer repurchase agreements | 368,915 | 428,659 | |||||||
Other borrowings | - | - | |||||||
Deferred compensation | 22,454 | 22,666 | |||||||
Junior subordinated debentures | 25,774 | 25,774 | |||||||
Other liabilities | 134,755 | 106,325 | |||||||
Total liabilities | 9,665,502 | 9,288,352 | |||||||
Commitments and Contingencies | |||||||||
Stockholders’ Equity | |||||||||
Common stock, authorized, 225,000,000 shares without par; issued and outstanding 135,510,960 at March 31, 2020, and 140,102,480 at December 31, 2019 | 1,208,049 | 1,298,792 | |||||||
Retained earnings | 694,931 | 682,692 | |||||||
Accumulated other comprehensive income, net of tax | 38,406 | 12,614 | |||||||
Total stockholders’ equity | 1,941,386 | 1,994,098 | |||||||
Total liabilities and stockholders’ equity | $ | 11,606,888 | $ | 11,282,450 | |||||
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 |
Three Months Ended March 31, | |||||||||
2020 | 2019 | ||||||||
Interest income: | |||||||||
Loans and leases, including fees | $ | $ | 99,687 | ||||||
Investment securities: | |||||||||
Investment securities available-for-sale | 10,049 | 10,645 | |||||||
Investment securities held-to-maturity | 3,998 | 4,525 | |||||||
Total investment income | 14,047 | 15,170 | |||||||
Dividends from FHLB stock | 332 | 332 | |||||||
Interest-earning deposits with other institutions | 613 | 94 | |||||||
Total interest income | 107,109 | 115,283 | |||||||
Interest expense: | |||||||||
Deposits | 4,124 | 3,871 | |||||||
Borrowings and customer repurchase agreements | 479 | 1,610 | |||||||
Junior subordinated debentures | 200 | 266 | |||||||
Total interest expense | 4,803 | 5,747 | |||||||
Net interest income before provision for credit losses | 102,306 | 109,536 | |||||||
Provision for credit losses | 12,000 | 1,500 | |||||||
Net interest income after provision for credit losses | 90,306 | 108,036 | |||||||
Noninterest income: | |||||||||
Service charges on deposit accounts | 4,776 | 5,141 | |||||||
Trust and investment services | 2,420 | 2,182 | |||||||
Bankcard services | 577 | 950 | |||||||
BOLI income | 2,059 | 1,336 | |||||||
Gain on OREO, net | 10 | 105 | |||||||
Gain on sale of building, net | - | 4,545 | |||||||
Other | 1,798 | 2,044 | |||||||
Total noninterest income | 11,640 | 16,303 | |||||||
Noninterest expense: | |||||||||
Salaries and employee benefits | 30,877 | 29,302 | |||||||
Occupancy and equipment | 4,837 | 5,424 | |||||||
Professional services | 2,256 | 1,925 | |||||||
Software licenses and maintenance | 2,816 | 2,613 | |||||||
Marketing and promotion | 1,555 | 1,394 | |||||||
Amortization of intangible assets | 2,445 | 2,857 | |||||||
Acquisition related expenses | - | 3,149 | |||||||
Other | 3,855 | 4,940 | |||||||
Total noninterest expense | 48,641 | 51,604 | |||||||
Earnings before income taxes | 53,305 | 72,735 | |||||||
Income taxes | 15,325 | 21,093 | |||||||
Net earnings | $ | 37,980 | $ | 51,642 | |||||
Other comprehensive income: | |||||||||
Unrealized gain on securities arising during the period, before tax | $ | 36,618 | $ | 18,227 | |||||
Less: Income tax benefit related to items of other comprehensive income | (10,826 | ) | (5,388 | ) | |||||
Other comprehensive income, net of tax | 25,792 | 12,839 | |||||||
Comprehensive income | $ | 63,772 | $ | 64,481 | |||||
Basic earnings per common share | $ | 0.27 | $ | 0.37 | |||||
Diluted earnings per common share | $ | 0.27 | $ | 0.37 |
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 |
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 |
Common Shares Outstanding | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||
Balance, January 1, 20 20 | 140,102 | $ | 1,298,792 | $ | 682,692 | $ | 12,614 | $ | 1,994,098 | ||||||||||||
Cumulative adjustment upon adoption of ASU 2016-13 | - | - | (1,325 | ) | - | (1,325 | ) | ||||||||||||||
Repurchase of common stock | (4,988 | ) | (92,402 | ) | - | - | (92,402 | ) | |||||||||||||
Exercise of stock options | 4 | 42 | - | - | 42 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 393 | 1,617 | - | - | 1,617 | ||||||||||||||||
Cash dividends declared on common stock ($0.18 per share) | - | - | (24,416 | ) | - | (24,416 | ) | ||||||||||||||
Net earnings | - | - | 37,980 | - | 37,980 | ||||||||||||||||
Other comprehensive income | - | - | - | 25,792 | 25,792 | ||||||||||||||||
Balance, March 31, 20 20 | 135,511 | $ | 1,208,049 | $ | 694,931 | $ | 38,406 | $ | 1,941,386 | ||||||||||||
Balance, January 1, 20 19 | 140,000 | $ | 1,293,669 | $ | 575,805 | $ | (18,284 | ) | $ | 1,851,190 | |||||||||||
Repurchase of common stock | (33 | ) | (735 | ) | - | - | (735 | ) | |||||||||||||
Exercise of stock options | 9 | 140 | - | - | 140 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 33 | 1,019 | - | - | 1,019 | ||||||||||||||||
Cash dividends declared on common stock ($0.18 per share) | - | - | (25,168 | ) | - | (25,168 | ) | ||||||||||||||
Net earnings | - | - | 51,642 | - | 51,642 | ||||||||||||||||
Other comprehensive income | - | - | - | 12,839 | 12,839 | ||||||||||||||||
Balance, March 31, 20 19 | 140,009 | $ | $ | $ | (5,445 | ) | $ | ||||||||||||||
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 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Cash Flows from Operating Activities | ||||||||
Interest and dividends received | $ | 105,673 | $ | 109,857 | ||||
Service charges and other fees received | 9,644 | 10,247 | ||||||
Interest paid | (4,589 | ) | (5,336 | ) | ||||
Net cash paid to vendors, employees and others | (35,201 | ) | (60,281 | ) | ||||
Net cash provided by operating activities | 75,527 | 54,487 | ||||||
Cash Flows from Investing Activities | ||||||||
Net change in interest-earning balances from depository institutions | (20,868 | ) | 250 | |||||
Proceeds from repayment of investment securities available-for-sale | 92,519 | 77,303 | ||||||
Proceeds from maturity of investment securities available-for-sale | 2,390 | 565 | ||||||
Proceeds from repayment and maturity of investment securities held-to-maturity | 33,297 | 29,598 | ||||||
Purchases of investment securities held-to-maturity | (1,509 | ) | (19,844 | ) | ||||
Net increase in equity investments | (2,985 | ) | (2,314 | ) | ||||
Net decrease in loan and lease finance receivables | 103,890 | 163,588 | ||||||
Proceeds from sale of building, net | - | 5,487 | ||||||
Purchase of premises and equipment | (882 | ) | (1,490 | ) | ||||
Proceeds from BOLI death benefit | 138 | 175 | ||||||
Proceeds from sales of other real estate owned | - | 523 | ||||||
Net cash provided by investing activities | 205,990 | 253,841 | ||||||
Cash Flows from Financing Activities | ||||||||
Net increase (decrease) in other deposits | 403,546 | (156,745 | ) | |||||
Net increase (decrease) in time deposits | 5,130 | (16,625 | ) | |||||
Net decrease in other borrowings | - | (127,000 | ) | |||||
Net (decrease) increase in customer repurchase agreements | (59,744 | ) | 20,519 | |||||
Cash dividends on common stock | (25,252 | ) | (19,616 | ) | ||||
Repurchase of common stock | (85,018 | ) | (735 | ) | ||||
Proceeds from exercise of stock options | 42 | 140 | ||||||
Net cash provided by (used in) financing activities | 238,704 | (300,062 | ) | |||||
Net increase in cash and cash equivalents | 520,221 | 8,266 | ||||||
Cash and cash equivalents, beginning of period | 185,518 | 163,948 | ||||||
Cash and cash equivalents, end of period | $ | 705,739 | $ | 172,214 | ||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities | ||||||||
Net earnings | $ | 37,980 | $ | 51,642 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Gain on sale of building, net | - | (4,545 | ) | |||||
Gain on sale of other real estate owned | - | (105 | ) | |||||
I ncrease in BOLI | (1,344 | ) | (1,427 | ) | ||||
Net amortization of premiums and discounts on investment securities | 2,620 | 2,498 | ||||||
Accretion of discount for acquired loans, net | (4,776 | ) | (7,200 | ) | ||||
Provision for credit losses | 12,000 | 1,500 | ||||||
Stock-based compensation | 1,617 | 1,019 | ||||||
Depreciation and amortization, net | 5,176 | 5,669 | ||||||
Change in other assets and liabilities | 22,254 | 5,436 | ||||||
Total adjustments | 37,547 | 2,845 | ||||||
Net cash provided by operating activities | $ | 75,527 | $ | 54,487 | ||||
Supplemental Disclosure of Non-cash Investing Activities | ||||||||
Transfer of loans to other real estate owned | $ | - | $ | 2,275 |
1. | BUSINESS |
2. | BASIS OF PRESENTATION |
3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
4. |
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 |
September 30, 2019 | March 31, 2020 | |||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | Amortized Cost | Gross Holding Gain | Gross Holding Loss | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | (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 | % | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 1,118,385 | $ | 43,546 | $ | - | $ | 1,161,931 | 69.18% | |||||||||||||||||||||||||||||||
CMO/REMIC | 466,033 | 14,060 | - | 480,093 | 28.58% | |||||||||||||||||||||||||||||||||||
Municipal bonds | 39,564 | 924 | (1 | ) | 40,487 | 2.58 | % | 36,119 | 913 | - | 37,032 | 2.20% | ||||||||||||||||||||||||||||
Other securities | 832 | - | - | 832 | 0.05 | % | 699 | - | - | 699 | 0.04% | |||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 1,549,406 | $ | 22,678 | $ | (1,678 | ) | | $ | 1,570,406 | 100.00 | % | $ | 1,621,236 | $ | 58,519 | $ | - | $ | 1,679,755 | 100.00% | |||||||||||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||
Government agency/GSE | $ | 123,917 | $ | 3,238 | $ | (170 | ) | $ | 126,985 | 17.60 | % | $ | 111,452 | $ | 3,468 | $ | (207) | $ | 114,713 | 17.35% | ||||||||||||||||||||
Residential mortgage-backed securities | 172,919 | 2,624 | (3 | ) | 175,540 | 24.56 | % | |||||||||||||||||||||||||||||||||
CMO | 204,263 | 76 | (1,467 | ) | 202,872 | 29.02 | % | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | 161,983 | 8,182 | - | 170,165 | 25.22% | |||||||||||||||||||||||||||||||||||
CMO/REMIC | 184,316 | 591 | (98) | 184,809 | 28.70% | |||||||||||||||||||||||||||||||||||
Municipal bonds | 202,854 | 4,198 | (558 | ) | 206,494 | 28.82 | % | 184,504 | 4,054 | (426) | 188,132 | 28.73% | ||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 703,953 | $ | 10,136 | $ | (2,198 | ) | $ | 711,891 | 100.00 | % | $ | 642,255 | $ | 16,295 | $ | (731) | $ | 657,819 | 100.00% | ||||||||||||||||||||
December 31, 2018 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | T otal 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 | $ | 1,494,106 | $ | 1,348 | $ | (20,946 | ) | $ | 1,474,508 | 85.03 | % | |||||||||||||||||||||||||||||
CMO/REMIC - residential | 217,223 | 353 | (3,525 | ) | 214,051 | 12.34 | % | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 1,185,757 | $ | 21,306 | $ | (750) | $ | 1,206,313 | 69.32% | |||||||||||||||||||||||||||||||
CMO/REMIC | 493,214 | 1,392 | (896) | 493,710 | 28.37% | |||||||||||||||||||||||||||||||||||
Municipal bonds | 45,621 | 332 | (1,143 | ) | 44,810 | 2.59 | % | 38,506 | 850 | (2) | 39,354 | 2.26% | ||||||||||||||||||||||||||||
Other securities | 716 | - | - | 716 | 0.04 | % | 880 | - | - | 880 | 0.05% | |||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 1,757,666 | $ | 2,033 | $ | (25,614 | ) | $ | 1,734,085 | 100.00 | % | $ | 1,718,357 | $ | 23,548 | $ | (1,648) | $ | 1,740,257 | 100.00% | ||||||||||||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||
Government agency/GSE | $ | 138,274 | $ | 572 | $ | (2,622 | ) | $ | 136,224 | 18.57 | % | $ | 117,366 | $ | 2,280 | $ | (657) | $ | 118,989 | 17.40% | ||||||||||||||||||||
Residential mortgage-backed securities | 153,874 | - | (3,140 | ) | 150,734 | 20.67 | % | |||||||||||||||||||||||||||||||||
CMO | 215,336 | - | (12,081 | ) | 203,255 | 28.93 | % | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | 168,479 | 2,083 | (54) | 170,508 | 24.98% | |||||||||||||||||||||||||||||||||||
CMO/REMIC | 192,548 | - | (2,458) | 190,090 | 28.55% | |||||||||||||||||||||||||||||||||||
Municipal bonds | 236,956 | 556 | (6,188 | ) | 231,324 | 31.83 | % | 196,059 | 3,867 | (565) | 199,361 | 29.07% | ||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 744,440 | $ | 1,128 | $ | (24,031 | ) | $ | 721,537 | 100.00 | % | $ | 674,452 | $ | 8,230 | $ | (3,734) | $ | 678,948 | 100.00% | ||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||
Taxable | $ | 8,949 | $ | 11,126 | $ | 29,079 | $ | 33,861 | |||||||||
Tax-advantaged | 273 | 395 | 906 | 1,225 | |||||||||||||
Total interest income from available-for-sale securities | 9,222 | 11,521 | 29,985 | 35,086 | |||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||
Taxable | 2,883 | 2,961 | 8,725 | 8,887 | |||||||||||||
Tax-advantaged | 1,415 | 1,705 | 4,524 | 5,351 | |||||||||||||
Total interest income from held-to-maturity securities | 4,298 | 4,666 | 13,249 | 14,238 | |||||||||||||
Total interest income from investment securities | $ | 13,520 | $ | 16,187 | $ | 43,234 | $ | 49,324 | |||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Dollars in thousands) | ||||||||
Investment securities available-for-sale: | ||||||||
Taxable | $ | 9,825 | $ | 10,309 | ||||
Tax-advantaged | 224 | 336 | ||||||
Total interest income from available-for-sale securities | 10,049 | 10,645 | ||||||
Investment securities held-to-maturity: | ||||||||
Taxable | 2,698 | 2,910 | ||||||
Tax-advantaged | 1,300 | 1,615 | ||||||
Total interest income from held-to-maturity securities | 3,998 | 4,525 | ||||||
Total interest income from investment securities | $ | 14,047 | $ | |||||
September 30, 2019 | December 31, 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 | $ | 2 | $ | - | $ | 127,904 | $ | (1,341 | ) | $ | 127,906 | $ | (1,341 | ) | |||||||||||||||||||||||||||||||||||
CMO/REMIC - residential | 122,595 | (156 | ) | 39,498 | (180 | ) | 162,093 | (336 | ) | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 20,289 | $ | (6 | ) | $ | 97,964 | $ | (744 | ) | $ | 118,253 | $ | (750 | ) | ||||||||||||||||||||||||||||||||||
CMO/REMIC | 177,517 | (705 | ) | 34,565 | (191 | ) | 212,082 | (896 | ) | ||||||||||||||||||||||||||||||||||||||||
Municipal bonds | - | - | 564 | (1 | ) | 564 | (1 | ) | - | - | 563 | (2 | ) | 563 | (2 | ) | |||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 122,597 | $ | (156 | ) | $ | 167,966 | $ | (1,522 | ) | $ | 290,563 | $ | (1,678 | ) | $ | $ | (711 | ) | $ | $ | (937 | ) | $ | $ | (1,648 | ) | ||||||||||||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||||||||||
Government agency/GSE | $ | - | $ | - | $ | 19,923 | $ | (170 | ) | $ | 19,923 | $ | (170 | ) | $ | 28,359 | $ | (252 | ) | $ | 19,405 | $ | (405 | ) | $ | 47,764 | $ | (657 | ) | ||||||||||||||||||||
Residential mortgage-backed securities | 5,021 | (3 | ) | - | - | 5,021 | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
CMO | - | - | 178,297 | (1,467 | ) | 178,297 | (1,467 | ) | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 10,411 | (54 | ) | - | - | 10,411 | (54 | ) | |||||||||||||||||||||||||||||||||||||||||
CMO/REMIC | 23,897 | (104 | ) | 166,193 | (2,354 | ) | 190,090 | (2,458 | ) | ||||||||||||||||||||||||||||||||||||||||
Municipal bonds | 3,037 | (5 | ) | 32,217 | (553 | ) | 35,254 | (558 | ) | 7,583 | (32 | ) | 29,981 | (533 | ) | 37,564 | (565 | ) | |||||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 8,058 | $ | (8 | ) | $ | 230,437 | $ | (2,190 | ) | $ | 238,495 | $ | (2,198 | ) | $ | 70,250 | $ | ) | $ | 215,579 | $ | ) | $ | 285,829 | $ | ) | ||||||||||||||||||||||
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 | March 31, 2020 | ||||||||||||||||||||||||||||||||
Available-for-sale | Held-to-maturity | Available-for-sale | Held-to-maturity | ||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Cost | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Due in one year or less | $ | 12,278 | $ | 12,426 | $ | 500 | $ | 500 | $ | 13,043 | $ | 13,160 | $ | 768 | $ | 788 | |||||||||||||||||
Due after one year through five years | 1,345,036 | 1,364,026 | 327,802 | 328,561 | 1,376,413 | 1,427,373 | 358,973 | 367,734 | |||||||||||||||||||||||||
Due after five years through ten years | 171,657 | 173,033 | 161,463 | 163,676 | 176,690 | 182,573 | 103,004 | 104,787 | |||||||||||||||||||||||||
Due after ten years | 20,435 | 20,921 | 214,188 | 219,154 | 55,090 | 56,649 | 179,510 | 184,510 | |||||||||||||||||||||||||
Total investment securities | $ | 1,549,406 | $ | 1,570,406 | $ | 703,953 | $ | 711,891 | $ | $ | $ | $ | |||||||||||||||||||||
5. | LOANS AND LEASE FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES |
(Dollars in thousands) | ||||||||
Commercial and industrial | $ | 960,761 | $ | 935,127 | ||||
SBA | 313,071 | 305,008 | ||||||
Real estate: | ||||||||
Commercial real estate | 5,347,925 | 5,374,617 | ||||||
Construction | 128,045 | 116,925 | ||||||
SFR mortgage | 278,743 | 283,468 | ||||||
Dairy & livestock and agribusiness | 272,114 | 383,709 | ||||||
Municipal lease finance receivables | 51,287 | 53,146 | ||||||
Consumer and other loans | 114,206 | 116,319 | ||||||
Gross loans | 7,466,152 | 7,568,319 | ||||||
Less: Deferred loan fees, net (1) | - | (3,742 | ) | |||||
Gross loans, net of deferred loan fees | 7,466,152 | 7,564,577 | ||||||
Less: Allowance for credit losses | (82,641 | ) | (68,660 | ) | ||||
Total loans and lease finance receivables | $ | 7,383,511 | $ | 7,495,917 | ||||
Beginning with March 31, 2020, gross loans are presented net of deferred loan fees by respective class of financing receivables. |
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 | ||||||||
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 | |||||||||||
Origination Year | Revolving loans amortized cost basis | Revolving loans converted to term loans | ||||||||||||||||||||||||||||||||||
March 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 35,101 | $ | 160,551 | $ | 79,808 | $ | 74,291 | $ | 48,698 | $ | 85,803 | $ | 423,186 | $ | 8,849 | $ | 916,287 | ||||||||||||||||||
Special Mention | 1,066 | 257 | 7,405 | 1,694 | 539 | 3,524 | 12,598 | 2,442 | 29,525 | |||||||||||||||||||||||||||
Substandard | - | 143 | 796 | 855 | 637 | 37 | 11,256 | 1,225 | 14,949 | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total Commercial and industrial loans: | $ | 36,167 | $ | 160,951 | $ | 88,009 | $ | 76,840 | $ | 49,874 | $ | 89,364 | $ | 447,040 | $ | 12,516 | $ | 960,761 | ||||||||||||||||||
SBA: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 26,599 | $ | 18,009 | $ | 48,416 | $ | 77,219 | $ | 27,922 | $ | 93,865 | $ | - | $ | - | $ | 292,030 | ||||||||||||||||||
Special Mention | - | - | - | 1,177 | 1,277 | 7,809 | - | - | 10,263 | |||||||||||||||||||||||||||
Substandard | - | - | 1,424 | 3,835 | 1,604 | 3,915 | - | - | 10,778 | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total SBA: | $ | 26,599 | $ | 18,009 | $ | 49,840 | $ | 82,231 | $ | 30,803 | $ | 105,589 | $ | - | $ | - | $ | 313,071 | ||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 153,366 | $ | 726,268 | $ | 743,909 | $ | 732,319 | $ | 626,561 | $ | 2,021,759 | $ | 197,335 | $ | 18,747 | $ | 5,220,264 | ||||||||||||||||||
Special Mention | - | 5,343 | 9,106 | 16,484 | 7,211 | 52,995 | 3,457 | - | 94,596 | |||||||||||||||||||||||||||
Substandard | - | - | 5,155 | 5,813 | 1,315 | 18,819 | 250 | 1,713 | 33,065 | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total Commercial real estate loans: | $ | 153,366 | $ | 731,611 | $ | 758,170 | $ | 754,616 | $ | 635,087 | $ | 2,093,573 | $ | 201,042 | $ | 20,460 | $ | 5,347,925 | ||||||||||||||||||
Construction loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 550 | $ | 13,414 | $ | 13,300 | $ | 35,130 | $ | 10,592 | $ | 5 | $ | 49,591 | $ | 5,463 | $ | 128,045 | ||||||||||||||||||
Special Mention | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total Construction loans: | $ | 550 | $ | 13,414 | $ | 13,300 | $ | 35,130 | $ | 10,592 | $ | 5 | $ | 49,591 | $ | 5,463 | $ | 128,045 | ||||||||||||||||||
SFR mortgage loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 10,473 | $ | 66,680 | $ | 38,192 | $ | 26,819 | $ | 35,992 | $ | 96,795 | $ | - | $ | - | $ | 274,951 | ||||||||||||||||||
Special Mention | - | - | - | - | - | 1,942 | - | - | 1,942 | |||||||||||||||||||||||||||
Substandard | - | - | - | 379 | - | 1,025 | - | 446 | 1,850 | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total SFR mortgage loans: | $ | 10,473 | $ | 66,680 | $ | 38,192 | $ | 27,198 | $ | 35,992 | $ | 99,762 | $ | - | $ | 446 | $ | 278,743 | ||||||||||||||||||
Origination Year | Revolving loans amortized cost basis | Revolving loans converted to term loans | ||||||||||||||||||||||||||||||||||
March 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 78 | $ | 2,945 | $ | 1,940 | $ | 8,109 | $ | 2,831 | $ | 14,655 | $ | 192,649 | $ | - | $ | 223,207 | ||||||||||||||||||
Special Mention | - | - | 166 | 722 | - | - | 22,150 | 3,686 | 26,724 | |||||||||||||||||||||||||||
Substandard | - | - | 882 | - | 4,016 | - | 4,625 | 12,660 | 22,183 | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total Dairy & livestock and agribusiness loans: | $ | 78 | $ | 2,945 | $ | 2,988 | $ | 8,831 | $ | 6,847 | $ | 14,655 | $ | 219,424 | $ | 16,346 | $ | 272,114 | ||||||||||||||||||
Municipal lease finance receivables loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 147 | $ | - | $ | 3,081 | $ | 10,961 | $ | 7,912 | $ | 28,739 | $ | - | $ | - | $ | 50,840 | ||||||||||||||||||
Special Mention | - | - | - | - | - | 447 | - | - | 447 | |||||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total Municipal lease finance receivables loans: | $ | 147 | $ | - | $ | 3,081 | $ | 10,961 | $ | 7,912 | $ | 29,186 | $ | - | $ | - | $ | 51,287 | ||||||||||||||||||
Consumer and other loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 1,647 | $ | 3,197 | $ | 1,160 | $ | 1,372 | $ | 2,094 | $ | 2,612 | $ | 98,953 | $ | 1,582 | $ | 112,617 | ||||||||||||||||||
Special Mention | - | - | - | - | 80 | 148 | 609 | - | 837 | |||||||||||||||||||||||||||
Substandard | - | - | 5 | - | - | 179 | 148 | 420 | 752 | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total Consumer and other loans: | $ | 1,647 | $ | 3,197 | $ | 1,165 | $ | 1,372 | $ | 2,174 | $ | 2,939 | $ | 99,710 | $ | 2,002 | $ | 114,206 | ||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 227,961 | $ | 991,064 | $ | 929,806 | $ | 966,220 | $ | 762,602 | $ | 2,344,233 | $ | 961,714 | $ | 34,641 | $ | 7,218,241 | ||||||||||||||||||
Special Mention | 1,066 | 5,600 | 16,677 | 20,077 | 9,107 | 66,865 | 38,814 | 6,128 | 164,334 | |||||||||||||||||||||||||||
Substandard | - | 143 | 8,262 | 10,882 | 7,572 | 23,975 | 16,279 | 16,464 | 83,577 | |||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total Gross loans: | $ | 229,027 | $ | 996,807 | $ | 954,745 | $ | 997,179 | $ | 779,281 | $ | 2,435,073 | $ | 1,016,807 | $ | 57,233 | $ | 7,466,152 | ||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||
Pass | Special | Substandard | Doubtful & Loss | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 895,234 | $ | 35,473 | $ | 4,420 | $ | - | $ | 935,127 | |||||||||||
SBA | 283,430 | 11,032 | 10,546 | - | 305,008 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 1,977,007 | 78,208 | 28,435 | - | 2,083,650 | ||||||||||||||||
Non-owner occupied | 3,280,580 | 10,005 | 382 | - | 3,290,967 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | 106,895 | - | - | - | 106,895 | ||||||||||||||||
Non-speculative | 10,030 | - | - | - | 10,030 | ||||||||||||||||
SFR mortgage | 280,010 | 1,957 | 1,501 | - | 283,468 | ||||||||||||||||
Dairy & livestock and agribusiness | 320,670 | 35,920 | 27,119 | - | 383,709 | ||||||||||||||||
Municipal lease finance receivables | 52,676 | 470 | - | - | 53,146 | ||||||||||||||||
Consumer and other loans | 114,870 | 421 | 1,028 | - | 116,319 | ||||||||||||||||
Total gross loans | $ | 7,321,402 | $ | 173,486 | $ | 73,431 | $ | $ | 7,568,319 | ||||||||||||
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 |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||
Ending Balance, prior to adoption of ASU 2016-13 December 31, 2019 | Impact of adopting ASU 2016-13 | Provision for (Recapture of) Credit Losses Expense | Charge-offs | Recoveries | Ending Balance March 31, 2020 | ||||||||||||||||||||
(Dollars i in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 8,880 | $ | (2,442 | ) | $ | 2,947 | $ | - | $ | 2 | $ | 9,387 | ||||||||||||
SBA | 1,453 | 1,818 | 675 | - | - | 3,946 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 48,629 | 3,547 | 6,251 | - | - | 58,427 | |||||||||||||||||||
Construction | 858 | 655 | 3,116 | - | 3 | 4,632 | |||||||||||||||||||
SFR mortgage | 2,339 | (2,043 | ) | (221 | ) | - | 206 | 281 | |||||||||||||||||
Dairy & livestock and agribusiness | 5,255 | (186 | ) | (803 | ) | - | - | 4,266 | |||||||||||||||||
Municipal lease finance receivables | 623 | (416 | ) | 70 | - | - | 277 | ||||||||||||||||||
Consumer and other loans | 623 | 907 | (35 | ) | (86 | ) | 16 | 1,425 | |||||||||||||||||
Total allowance for credit losses | $ | 68,660 | $ | 1,840 | $ | 12,000 | $ | (86 | ) | $ | 227 | $ | 82,641 | ||||||||||||
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 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 |
Three Months Ended March 31, 2019 | ||||||||||||||||||||
Ending Balance December 31, 2018 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance March 31, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 7,520 | $ | - | $ | 110 | $ | (31 | ) | $ | 7,599 | |||||||||
SBA | 1,062 | (20 | ) | 5 | 232 | 1,279 | ||||||||||||||
Real estate: | - | - | ||||||||||||||||||
Commercial real estate | 44,934 | - | - | 1,144 | 46,078 | |||||||||||||||
Construction | 981 | - | 3 | (120 | ) | 864 | ||||||||||||||
SFR mortgage | 2,196 | - | 68 | (76 | ) | 2,188 | ||||||||||||||
Dairy & livestock and agribusiness | 5,215 | (78 | ) | - | 562 | 5,699 | ||||||||||||||
Municipal lease finance receivabl es | 775 | - | - | (37 | ) | 738 | ||||||||||||||
Consumer and other loans | 726 | (1 | ) | 1 | (150 | ) | 576 | |||||||||||||
PCI loans | 204 | - | - | (24 | ) | 180 | ||||||||||||||
Total allowance for loan losses | $ | 63,613 | $ | (99 | ) | $ | 187 | $ | 1,500 | $ | 65,201 | |||||||||
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 | |||||||||||||
March 31, 2019 | |||||||||||||||||||||||||
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 | $ | 8,512 | $ | 948,614 | $ | - | $ | 117 | $ | 7,482 | $ | - | |||||||||||||
SBA | 4,661 | 333,296 | - | 317 | 962 | - | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 1,589 | 5,387,277 | - | - | 46,078 | - | |||||||||||||||||||
Construction | - | 121,912 | - | - | 864 | - | |||||||||||||||||||
SFR mortgage | 5,051 | 280,736 | - | - | 2,188 | - | |||||||||||||||||||
Dairy & livestock and agribusiness | - | 322,321 | - | - | 5,699 | - | |||||||||||||||||||
Municipal lease finance receivables | - | 61,249 | - | - | 738 | - | |||||||||||||||||||
Consumer and other loans | 477 | 120,291 | - | 1 | 575 | - | |||||||||||||||||||
PCI loans | - | - | 15,356 | - | - | 180 | |||||||||||||||||||
Total | $ | 20,290 | $ | 7,575,696 | $ | 15,356 | $ | 435 | $ | 64,586 | $ | 180 | |||||||||||||
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 |
March 31, 2020 | |||||||||||||||||||||||||
30-59 DaysPast Due | 60-89 DaysPast Due | Greater than 89 Days Past Due | Total Past Due | Loans Not Past Due | Total Loans Receivables | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 347 | $ | 362 | $ | 1,487 | $ | 2,196 | $ | 958,565 | $ | 960,761 | |||||||||||||
SBA | 3,086 | 954 | 1,669 | 5,709 | 307,362 | 313,071 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 154 | 310 | 250 | 714 | 2,069,646 | 2,070,360 | |||||||||||||||||||
Non-owner occupied | 210 | - | - | 210 | 3,277,355 | 3,277,565 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative (1) | - | - | - | - | 116,143 | 116,143 | |||||||||||||||||||
Non-speculative | - | - | - | - | 11,902 | 11,902 | |||||||||||||||||||
SFR mortgage | 233 | - | 486 | 719 | 278,024 | 278,743 | |||||||||||||||||||
Dairy & livestock and agribusiness | 166 | - | - | 166 | 271,948 | 272,114 | |||||||||||||||||||
Municipal lease finance receivables | - | - | - | - | 51,287 | 51,287 | |||||||||||||||||||
Consumer and other loans | - | - | 93 | 93 | 114,113 | 114,206 | |||||||||||||||||||
Total gross loans | $ | 4,196 | $ | 1,626 | $ | 3,985 | $ | 9,807 | $ | 7,456,345 | $ | 7,466,152 | |||||||||||||
(1) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
March 31, 2020 | ||||||||||||
Nonaccrual with No Allowance for Credit Losses | Total Nonaccrual (1) (3) | Loans Past Due Over 89 Days Still Accruing | ||||||||||
(Dollars in thousands) | ||||||||||||
Commercial and industrial | $ | 549 | $ | 1,703 | $ | - | ||||||
SBA | 2,110 | 2,748 | - | |||||||||
Real estate: | ||||||||||||
Commercial real estate | ||||||||||||
Owner occupied | 715 | 715 | - | |||||||||
Non-owner occupied | 232 | 232 | - | |||||||||
Construction | ||||||||||||
Speculative (2) | - | - | - | |||||||||
Non-speculative | - | - | - | |||||||||
SFR mortgage | 864 | 864 | - | |||||||||
Dairy & livestock and agribusiness | - | - | - | |||||||||
Municipal lease finance receivables | - | - | - | |||||||||
Consumer and other loans | 166 | 166 | - | |||||||||
Total gross loans | $ | 4,636 | $ | 6,428 | $ | - | ||||||
(1) | As of 30-59 days past due, 60-89 days past due, |
(2) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
Excludes |
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 |
December 31, 2019 | ||||||||||||||||||||||||
30-59 DaysPast Due | 60-89 Days Past Due | Total Past Due and Accruing | Nonaccrual (1) (3) | Current | Total Loans and Financing Receivables | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial and industrial | $ | 2 | $ | - | $ | 2 | $ | 1,266 | $ | 933,859 | $ | 935,127 | ||||||||||||
SBA | 870 | 532 | 1,402 | 2,032 | 301,574 | 305,008 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | - | - | - | 479 | 2,083,171 | 2,083,650 | ||||||||||||||||||
Non-owner occupied | - | - | - | 245 | 3,290,722 | 3,290,967 | ||||||||||||||||||
Construction | ||||||||||||||||||||||||
Speculative (2) | - | - | - | - | 106,895 | 106,895 | ||||||||||||||||||
Non-speculative | - | - | - | - | 10,030 | 10,030 | ||||||||||||||||||
SFR mortgage | 6 | 243 | 249 | 878 | 282,341 | 283,468 | ||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | 383,709 | 383,709 | ||||||||||||||||||
Municipal lease finance receivables | - | - | - | - | 53,146 | 53,146 | ||||||||||||||||||
Consumer and other loans | - | - | - | 377 | 115,942 | 116,319 | ||||||||||||||||||
Total gross loans | $ | 878 | $ | 775 | $ | 1,653 | $ | 5,277 | $ | 7,561,389 | $ | 7,568,319 | ||||||||||||
(1) |
As of December 31, 30-59 days past due, 60-89 days past due and |
Speculative construction loans are generally for properties where there is no ed buyer or renter. |
( 3 ) | Excludes $2.0 million of guaranteed porti on of nonaccrual SBA loans that are in process of collection. |
Three Months Ended | |||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | $ | 8,208 | $ | 12,317 | $ | - | $ | 8,230 | $ | 2 | |||||||||||
SBA | 3,400 | 5,779 | - | 3,511 | 11 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 519 | 618 | - | 521 | - | ||||||||||||||||
Non-owner occupied | 1,070 | 1,231 | - | 1,084 | 7 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 5,051 | 5,865 | - | 5,082 | 21 | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 476 | 625 | - | 482 | - | ||||||||||||||||
Total | 18,724 | 26,435 | - | 18,910 | 41 | ||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | 304 | 309 | 117 | 323 | - | ||||||||||||||||
SBA | 1,261 | 1,236 | 317 | 1,261 | - | ||||||||||||||||
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 | 1 | 1 | 1 | 1 | - | ||||||||||||||||
Total | 1,566 | 1,546 | 435 | 1,585 | - | ||||||||||||||||
Total impaired loans | $ | 20,290 | $ | 27,981 | $ | 435 | $ | 20,495 | $ | 41 | |||||||||||
December 31, 2019 | ||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||
(Dollars in thousands) | ||||||||||||
With no related allowance recorded: | ||||||||||||
Commercial and industrial | $ | 1,091 | $ | 1,261 | $ | - | ||||||
SBA | 2,243 | 2,734 | - | |||||||||
Real estate: | ||||||||||||
Commercial real estate | ||||||||||||
Owner occupied | 479 | 613 | - | |||||||||
Non-owner occupied | 642 | 643 | - | |||||||||
Construction | ||||||||||||
Speculative | - | - | - | |||||||||
Non-speculative | - | - | - | |||||||||
SFR mortgage | 2,979 | 3,310 | - | |||||||||
Dairy & livestock and agribusiness | - | - | - | |||||||||
Municipal lease finance receivables | - | - | - | |||||||||
Consumer and other loans | 377 | 514 | - | |||||||||
Total | 7,811 | 9,075 | - | |||||||||
With a related allowance recorded: | ||||||||||||
Commercial and industrial | 253 | 347 | 251 | |||||||||
SBA | 325 | 324 | 257 | |||||||||
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 | 578 | 671 | 508 | |||||||||
Total impaired loans | $ | 8,389 | $ | 9,746 | $ | 508 | ||||||
March 31, 2020 | Number of Loans Dependent on Collateral | |||||||||||||||
Real Estate | Business Assets | Other | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial and industrial | $ | 112 | $ | 1,652 | $ | 8 | 12 | |||||||||
SBA | 1,852 | 2,524 | 8 | 19 | ||||||||||||
Real estate: | ||||||||||||||||
Commercial real estate | 1,324 | - | - | 5 | ||||||||||||
Construction | - | - | - | - | ||||||||||||
SFR mortgage | 864 | - | - | 3 | ||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | ||||||||||||
Municipal lease finance receivables | - | - | - | - | ||||||||||||
Consumer and other loans | 84 | - | 22 | 4 | ||||||||||||
Total collateral-dependent loans | $ | 4,236 | $ | 4,176 | $ | 38 | 43 | |||||||||
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 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 | |||||||
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 |
Three Months Ended March 31, | |||||||||
2020 | 2019 | ||||||||
(Dollars in thousands) | |||||||||
Performing TDRs: | |||||||||
Beginning balance | $ | 3,112 | $ | 3,594 | |||||
New modifications | - | - | |||||||
Payoffs/payments, net and other | (299 | ) | (295 | ) | |||||
TDRs returned to accrual status | - | - | |||||||
TDRs placed on nonaccrual status | - | - | |||||||
Ending balance | $ | 2,813 | $ | 3,299 | |||||
Nonperforming TDRs: | |||||||||
Beginning balance | $ | 244 | $ | 3,509 | |||||
New modifications | - | - | |||||||
Charge-offs | - | (78 | ) | ||||||
Transfer to OREO | - | (2,275 | ) | ||||||
Payoffs/payments, net and other | (244 | ) | (879 | ) | |||||
TDRs returned to accrual status | - | - | |||||||
TDRs placed on nonaccrual status | - | - | |||||||
Ending balance | $ | - | $ | 277 | |||||
Total TDRs | $ | 2,813 | $ | 3,576 | |||||
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 | $ | - | |||||||||||
EARNINGS PER SHARE RECONCILIATION |
For the Three Months Ended S 30,eptember | For the Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | ||||||||||||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | ||||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||
Net earnings | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | $ | 37,980 | $ | 51,642 | |||||||||||||
Less: Net earnings allocated to restricted stock | 116 | 96 | 390 | 298 | 83 | 141 | |||||||||||||||||||
Net earnings allocated to common shareholders | $ | 50,307 | $ | 38,462 | $ | 156,156 | $ | 108,546 | $ | 37,897 | $ | 51,501 | |||||||||||||
Weighted average shares outstanding | 139,824 | 126,574 | 139,730 | 115,533 | 139,107 | 139,615 | |||||||||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 | $ | 0.27 | $ | 0.37 | |||||||||||||
Diluted earnings per common share: | |||||||||||||||||||||||||
Net income allocated to common shareholders | 50,307 | 38,462 | 156,156 | 108,546 | 37,897 | 51,501 | |||||||||||||||||||
Weighted average shares outstanding | 139,824 | 126,574 | 139,730 | 115,533 | 139,107 | 139,615 | |||||||||||||||||||
Incremental shares from assumed exercise of outstanding options | 151 | 363 | 217 | 397 | 209 | 216 | |||||||||||||||||||
Diluted weighted average shares outstanding | 139,975 | 126,937 | 139,947 | 115,930 | 139,316 | 139,831 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 | $ | 0.27 | $ | 0.37 | |||||||||||||
FAIR VALUE INFORMATION |
Carrying Value at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other (Level 2) | Significant (Level 3) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets | ||||||||||||||||
Investment securities - AFS: | ||||||||||||||||
Residential mortgage-backed securities | $ | 1,146,159 | $ | - | $ | 1,146,159 | $ | - | ||||||||
CMO/REMIC - residential | 382,928 | - | 382,928 | - | ||||||||||||
Municipal bonds | 40,487 | - | 40,487 | - | ||||||||||||
Other securities | 832 | - | 832 | - | ||||||||||||
1,570,406 | - | 1,570,406 | - | |||||||||||||
Interest rate swaps | 16,180 | - | 16,180 | - | ||||||||||||
Total assets | $ | 1,586,586 | $ | - | $ | 1,586,586 | $ | - | ||||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 16,180 | $ | - | $ | 16,180 | $ | - | ||||||||
Total liabilities | $ | 16,180 | $ | - | $ | 16,180 | $ | - | ||||||||
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) | ||||||||||||||||
Description of assets | ||||||||||||||||
Investment securities - AFS: | ||||||||||||||||
Residential mortgage-backed securities | $ | 1,474,508 | $ | - | $ | 1,474,508 | $ | - | ||||||||
CMO/REMIC - residential | 214,051 | - | 214,051 | - | ||||||||||||
Municipal bonds | 44,810 | - | 44,810 | - | ||||||||||||
Other securities | 716 | - | 716 | - | ||||||||||||
Total investment securities - AFS | 1,734,085 | - | 1,734,085 | - | ||||||||||||
Interest rate swaps | 1,938 | - | 1,938 | - | ||||||||||||
Total assets | $ | 1,736,023 | $ | - | $ | 1,736,023 | $ | - | ||||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 1,938 | $ | - | $ | 1,938 | $ | - | ||||||||
Total liabilities | $ | 1,938 | $ | - | $ | 1,938 | $ | - |
Carrying Value at March 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets | ||||||||||||||||
Investment securities - AFS: | ||||||||||||||||
Mortgage-backed securities | $ | 1,161,931 | $ | - | $ | 1,161,931 | $ | - | ||||||||
CMO/REMIC | 480,093 | - | 480,093 | - | ||||||||||||
Municipal bonds | 37,032 | - | 37,032 | - | ||||||||||||
Other securities | 699 | - | 699 | - | ||||||||||||
Total investment securities - AFS | 1,679,755 | - | 1,679,755 | - | ||||||||||||
Interest rate swaps | 33,255 | - | 33,255 | - | ||||||||||||
Total assets | $ | 1,713,010 | $ | - | $ | 1,713,010 | $ | - | ||||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 33,255 | $ | - | $ | 33,255 | $ | - | ||||||||
Total liabilities | $ | 33,255 | $ | - | $ | 33,255 | $ | - | ||||||||
Carrying Value at December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets | ||||||||||||||||
Investment securities - AFS: | ||||||||||||||||
Mortgage-backed securities | $ | 1,206,313 | $ | - | $ | 1,206,313 | $ | - | ||||||||
CMO/REMIC | 493,710 | - | 493,710 | - | ||||||||||||
Municipal bonds | 39,354 | - | 39,354 | - | ||||||||||||
Other securities | 880 | - | 880 | - | ||||||||||||
Total investment securities - AFS | 1,740,257 | - | 1,740,257 | - | ||||||||||||
Interest rate swaps | 11,502 | - | 11,502 | - | ||||||||||||
Total assets | $ | 1,751,759 | $ | - | $ | 1,751,759 | $ | - | ||||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 11,502 | $ | - | $ | 11,502 | $ | - | ||||||||
Total liabilities | $ | 11,502 | $ | - | $ | 11,502 | $ | - | ||||||||
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 March 31, 2020 | 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 Three Months Ended March 31, 2020 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Commercial and industrial | $ | 903 | $ | - | $ | - | $ | 903 | $ | 9024 | ||||||||||
SBA | 1,000 | - | - | 1,000 | 36 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | - | - | - | - | - | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Asset held-for-sale | - | - | - | - | - | |||||||||||||||
Total assets | $ | 1,903 | $ | - | $ | - | $ | 1,903 | $ | 938 | ||||||||||
Carrying Value at December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses December 31, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||
Commercial and industrial | $ | 253 | $ | - | $ | - | $ | 253 | $ | 251 | ||||||||||
SBA | 359 | - | - | 359 | 513 | |||||||||||||||
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 | $ | 1,056 | $ | - | $ | - | $ | 1,056 | $ | 828 | ||||||||||
March 31, 2020 | ||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Total cash and cash equivalents | $ | 705,739 | 705,739 | - | - | 705,739 | ||||||||||||||
Interest-earning balances due from depository institutions | 23,799 | - | 23,840 | - | 23,840 | |||||||||||||||
Investment securities available-for-sale | 1,679,755 | - | 1,679,755 | - | 1,679,755 | |||||||||||||||
Investment securities held-to-maturity | 642,255 | - | 657,819 | - | 657,819 | |||||||||||||||
Total loans, net of allowance for credit losses | 7,383,511 | - | - | 7,338,946 | 7,338,946 | |||||||||||||||
Swaps | 33,255 | - | 33,255 | - | 33,255 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing | $ | 3,540,955 | - | 3,540,407 | - | 3,540,407 | ||||||||||||||
Borrowings | 368,915 | - | 368,654 | - | 368,654 | |||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 13,619 | 13,619 | |||||||||||||||
Swaps | 33,255 | - | 33,255 | - | 33,255 | |||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Total cash and cash equivalents | 185,518 | 185,518 | - | - | $ | 185,518 | ||||||||||||||
Interest-earning balances due from depository institutions | 2,931 | - | 2,938 | - | 2,938 | |||||||||||||||
Investment securities available-for-sale | 1,740,257 | - | 1,740,257 | - | 1,740,257 | |||||||||||||||
Investment securities held-to-maturity | 674,452 | - | 678,948 | - | 678,948 | |||||||||||||||
Total loans, net of allowance for loan losses | 7,495,917 | - | - | 7,343,167 | 7,343,167 | |||||||||||||||
Swaps | 11,502 | - | 11,502 | - | 11,502 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing | 3,459,411 | - | 3,457,922 | - | $ | 3,457,922 | ||||||||||||||
Borrowings | 428,659 | - | 428,330 | - | 428,330 | |||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 20,669 | 20,669 | |||||||||||||||
Swaps | 11,502 | - | 11,502 | - | 11,502 |
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 |
DERIVATIVE FINANCIAL INSTRUMENTS |
September 30, 2019 | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Interest rate swaps | Other assets | $ | 16,180 | Other liabilities | $ | 16,180 | ||||||||||
Total derivatives | $ | 16,180 | $ | 16,180 | ||||||||||||
December 31, 2018 | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Interest rate swaps | Other assets | $ | 1,938 | Other liabilities | $ | 1,938 | ||||||||||
Total derivatives | $ | 1,938 | $ | 1,938 | ||||||||||||
March 31, 2020 | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Interest rate swaps | Other assets | $ | 33,255 | Other liabilities | $ | 33,255 | ||||||||||
Total derivatives | $ | 33,255 | $ | 33,255 | ||||||||||||
December 31, 2019 | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Interest rate swaps | Other assets | $ | 11,502 | Other liabilities | $ | 11,502 | ||||||||||
Total derivatives | $ | 11,502 | $ | 11,502 | ||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Instruments | Amount of Gain Recognized in Income on Derivative Instruments | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Interest rate swaps | Other income | $ | 378 | $ | 73 | $ | 1,135 | $ | 340 | |||||||||||
Total | $ | 378 | $ | 73 | $ | 1,135 | $ | 340 | ||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Income on Derivative Instruments | Amount of Gain Recognized in Income on Derivative Instruments | ||||||||||
Three Months Ended March 31, | ||||||||||||
2020 | 2019 | |||||||||||
(Dollars in thousands) | ||||||||||||
Interest rate swaps | Other income | $ | 373 | $ | 384 | |||||||
Total | $ | 373 | $ | 384 | ||||||||
OTHER COMPREHENSIVE INCOME |
For the Three Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 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 | (249 | ) | 74 | (175 | ) | (152) | 45 | (107 | ) | ||||||||||||||||
Net change | $ | 5,418 | $ | (1,602 | ) | $ | 3,816 | $ | (10,387) | $ | 3,070 | $ | (7,317 | ) | |||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 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 | (1,450 | ) | 429 | (1,021 | ) | (1,809 | ) | 535 | (1,274 | ) | |||||||||||||||
Net change | $ | 43,131 | $ | (12,751 | ) | $ | 30,380 | $ | (49,155 | ) | $ | 14,532 | $ | (34,623 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 36,619 | $ | (10,826 | ) | $ | 25,793 | $ | 19,350 | $ | (5,720 | ) | $ | 13,630 | |||||||||||
Amortization of net unrealized losses on securities available-for-sale toheld-to-maturity | (1 | ) | - | (1 | ) | (1,123 | ) | 332 | (791 | ) | |||||||||||||||
Net change | $ | 36,618 | $ | (10,826 | ) | $ | 25,792 | $ | 18,227 | $ | (5,388 | ) | $ | 12,839 | |||||||||||
10. |
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 | ) | |||||||||||||
Gross Amounts Recognized in the Condensed | Gross Amounts Offset in the Con densed | Net Amounts Presented in the Condensed | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||
Consolidated Balance Sheets | Consolidated Balance Sheets | Consolidated Balance Sheets | Financial Instruments | Collateral Pledged | Net Amount | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
March 31, 2020 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 33,255 | $ | - | $ | - | $ | 33,255 | $ | - | $ | 33,255 | |||||||||||||
Total | $ | 33,255 | $ | - | $ | - | $ | 33,255 | $ | - | $ | 33,255 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 33,255 | $ | - | $ | 33,255 | $ | - | $ | (52,171 | ) | $ | (18,916 | ) | |||||||||||
Repurchase agreements | 368,915 | - | 368,915 | - | (417,665 | ) | (48,750 | ) | |||||||||||||||||
Total | $ | 402,170 | $ | - | $ | 402,170 | $ | - | $ | (469,836 | ) | $ | (67,666 | ) | |||||||||||
December 31, 2019 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 11,502 | $ | - | $ | - | $ | 11,502 | $ | - | $ | 11,502 | |||||||||||||
Total | $ | 11,502 | $ | - | $ | - | $ | 11,502 | $ | - | $ | 11,502 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 11,619 | $ | (117 | ) | $ | 11,502 | $ | 117 | $ | (23,312 | ) | $ | (11,693 | ) | ||||||||||
Repurchase agreements | 428,659 | - | 428,659 | - | (510,138 | ) | (81,479 | ) | |||||||||||||||||
Total | $ | 440,278 | $ | (117 | ) | $ | 440,161 | $ | 117 | $ | (533,450 | ) | $ | (93,172 | ) | ||||||||||
LEASES |
March 31, 2020 | December 31, 2019 | |||||||
(Dollars in thousands) | ||||||||
Lease Assets and Liabilities | ||||||||
ROU assets | $ | 16,917 | $ | 18,522 | ||||
Total lease liabilities | $ | 19,484 | $ | 21,392 | ||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Dollars in thousands) | ||||||||
Lease Cost | ||||||||
Operating lease expense (1) | $ | 1,623 | $ | 2,100 | ||||
Sublease income | - | - | ||||||
Total lease expense | $ | 1,623 | $ | 2,100 | ||||
(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 | $ | 1,935 | $ | 2,746 | ||||
December 31, 2019 | ||||||||
Lease Term and Discount Rate | ||||||||
Weighted average remaining lease term (years) | 3.99 | 4.18 | ||||||
Weighted average discount rate | 3.34 | % | 3.34 | % |
March 31, 2020 | ||||
(Dollars in thousands) | ||||
Year: | ||||
2020 (excluding the three months ended March 31, 2020) | $ | 5,179 | ||
2021 | 5,509 | |||
2022 | 4,322 | |||
2023 | 2,540 | |||
2024 | 1,495 | |||
Thereafter | 1,781 | |||
Total future lease payments | 20,826 | |||
Less: Imputed interest | (1,342 | ) | ||
Present value of lease liabilities | $ | 19,484 | ||
12. | ||||
REVENUE RECOGNITION |
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 | |||
Three Months Ended March 31, | |||||||||
2020 | 2019 | ||||||||
(Dollars in thousands) | |||||||||
Noninterest income: | |||||||||
In-scope of Topic 606: | |||||||||
Service charges on deposit accounts | $ | 4,776 | $ | 5,141 | |||||
Trust and investment services | 2,420 | 2,182 | |||||||
Bankcard services | 577 | 950 | |||||||
Gain on OREO, net | 10 | 105 | |||||||
Other | 1,798 | 2,044 | |||||||
Noninterest Income (in-scope of Topic 606) | 9,581 | 10,422 | |||||||
Noninterest Income (out-of-scope of Topic 606) | 2,059 | 5,881 | |||||||
Total noninterest income | $ | 11,640 | $ | 16,303 | |||||
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 |
Standard | Description | Adoption Timing | Impact on Financial Statements | |||
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide temporary, optional guidance to ease the potential burden in accounting for transitioning away from reference rates such as LIBOR. The amendments provide optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The amendments primarily include relief related to contract modifications and hedging relationships, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity. This guidance is effective immediately and the amendments may be applied prospectively through December 31, 2022. | 1st Quarter 2020 through the 4th Quarter 2022 | Although the Company is assessing the impacts of this transition and exploring alternatives to use in place of LIBOR for various financial instruments, primarily related to our variable-rate loans, our subordinated debentures, and interest rate swap derivatives that are indexed to LIBOR, we do not expect this ASU to have a material impact on the Company's consolidated financial statements. | |||
Issued March 2020 | ||||||
ASU 2020-01 "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) | The FASB issued ASU 2020-01 "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This ASU clarifies the interactions between ASC 321, ASC 323 and ASC 815 and addresses accounting for the transition into and out of the equity method and also provides guidance on whether equity method accounting would be applied to certain purchased options and forward contracts upon settlement. | 1st Quarter 2021 | The adoption of this ASU will not have an impact on our consolidated financial statements. |
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 | For the Three Months Ended March 31, | Variance | ||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | (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% | $ | 102,306 | $ | 109,536 | $ | (7,230) | -6.60% | ||||||||||||||||||||||||||||
(Provision for) recapture of provision for loan losses | (1,500) | (500) | (1,000) | -200.00% | (5,000) | 1,500 | (6,500) | -433.33% | |||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | (12,000 | ) | (1,500 | ) | (10,500) | -700.00% | |||||||||||||||||||||||||||||||||||||||||||
Noninterest income | 11,894 | 10,112 | 1,782 | 17.62% | 46,402 | 32,723 | 13,679 | 41.80% | 11,640 | 16,303 | (4,663) | -28.60% | |||||||||||||||||||||||||||||||||||||
Noninterest expense | (47,535) | (48,880) | 1,345 | 2.75% | (149,667) | (119,080) | (30,587) | -25.69% | (48,641 | ) | (51,604 | ) | 2,963 | 5.74% | |||||||||||||||||||||||||||||||||||
Income taxes | (20,595) | (14,994) | (5,601) | -37.35% | (63,941) | (42,328) | (21,613) | -51.06% | (15,325 | ) | (21,093 | ) | 5,768 | 27.35% | |||||||||||||||||||||||||||||||||||
Net earnings | $ | 50,423 | $ | 38,558 | $ | 11,865 | 30.77% | $ | 156,546 | $ | 108,844 | $ | 47,702 | 43.83% | $ | 37,980 | $ | 51,642 | $ | (13,662) | -26.46% | ||||||||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||||||||||||||||||||||
Diluted | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||||||||||||||||||||||
Return on average assets | 1.78% | 1.52% | 0.26% | 1.86% | 1.65% | 0.21% | 1.34% | 1.84% | -0.50% | ||||||||||||||||||||||||||||||||||||||||
Return on average shareholders’ equity | 10.18% | 10.17% | 0.01% | 10.89% | 11.86% | -0.97% | 7.61% | 11.14% | -3.53% | ||||||||||||||||||||||||||||||||||||||||
Efficiency ratio | 39.60% | 47.49% | -7.89% | 39.89% | 44.31% | -4.42% | 42.69% | 41.01% | 1.68% | ||||||||||||||||||||||||||||||||||||||||
Noninterest expense to average assets | 1.68% | 1.93% | -0.25% | 1.77% | 1.80% | -0.03% | 1.72% | 1.83% | -0.11% |
For the Three Months Ended | Variance | ||||||||||||||||
March 31, 2020 | December 31, 2019 | $ | % | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Net interest income | $ | 102,306 | $ | 107,020 | $ | (4,714) | -4.40% | ||||||||||
Provision for credit losses | (12,000 | ) | - | (12,000) | - | ||||||||||||
Noninterest income | 11,640 | 12,640 | (1,000) | -7.91% | |||||||||||||
Noninterest expense | (48,641 | ) | (49,073 | ) | 432 | 0.88% | |||||||||||
Income taxes | (15,325 | ) | (19,306 | ) | 3,981 | 20.62% | |||||||||||
Net earnings | $ | 37,980 | $ | 51,281 | $ | (13,301) | -25.94% | ||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Diluted | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Return on average assets | 1.34% | 1.79% | -0.45% | ||||||||||||||
Return on average shareholders’ equity | 7.61% | 10.21% | -2.60% | ||||||||||||||
Efficiency ratio | 42.69% | 41.01% | 1.68% | ||||||||||||||
Noninterest expense to average assets | 1.72% | 1.71% | 0.01% |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended | ||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||
Net Income | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | $ | 37,980 | $ | 51,281 | $ | 51,642 | ||||||||||||||
Add: Amortization of intangible assets | 2,648 | 1,736 | 8,338 | 2,395 | 2,445 | 2,460 | 2,857 | |||||||||||||||||||||
Less: Tax effect of amortization of intangible assets (1) | (783) | (513) | (2,465) | (708) | (723) | (727) | (845) | |||||||||||||||||||||
Tangible net income | $ | 52,288 | $ | 39,781 | $ | 162,419 | $ | 110,531 | $ | 39,702 | $ | 53,014 | $ | 53,654 | ||||||||||||||
Average stockholders’ equity | $ | 1,965,427 | $ | 1,503,643 | $ | 1,921,981 | $ | 1,226,848 | $ | 2,006,464 | $ | 1,993,315 | $ | 1,879,685 | ||||||||||||||
Less: Average goodwill | (663,707) | (419,418) | (665,470) | (218,625) | (663,707) | (663,707) | (666,539) | |||||||||||||||||||||
Less: Average intangible assets | (46,720) | (34,811) | (49,682) | (16,078) | (41,732) | (44,185) | (52,777) | |||||||||||||||||||||
Average tangible common equity | $ | 1,255,000 | $ | 1,049,414 | $ | 1,206,829 | $ | 992,145 | $ | 1,301,025 | $ | 1,285,423 | $ | 1,160,369 | ||||||||||||||
Return on average equity, annualized | 10.18 | % | 10.17 | % | 10.89 | % | 11.86 | % | 7.61 | % | 10.21 | % | 11.14 | % | ||||||||||||||
Return on average tangible common equity, annualized | 16.53 | % | 15.04 | % | 17.99 | % | 14.89 | % | 12.27 | % | 16.36 | % | 18.75 | % |
(1) | Tax effected at respective statutory rates. |
For the Three Months Ended September 30, | For the Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 1,505,087 | $ | 8,949 | 2.38% | $ | 1,863,399 | $ | 11,126 | 2.39% | $ | 1,659,394 | $ | 9,825 | 2.37% | $ | 1,654,324 | $ | 10,309 | 2.49% | ||||||||||||||||||||||||||||
Tax-advantaged | 40,189 | 273 | 3.75% | 55,020 | 395 | 3.86% | 38,086 | 224 | 3.36% | 44,380 | 336 | 4.07% | ||||||||||||||||||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 506,203 | 2,883 | 2.28% | 527,688 | 2,961 | 2.24% | 469,394 | 2,698 | 2.30% | 509,608 | 2,910 | 2.30% | ||||||||||||||||||||||||||||||||||||
Tax-advantaged | 205,996 | 1,415 | 3.32% | 237,933 | 1,705 | 3.47% | 189,522 | 1,300 | 3.32% | 227,908 | 1,615 | 3.43% | ||||||||||||||||||||||||||||||||||||
Investment in FHLB stock | 17,688 | 301 | 6.75% | 24,645 | 329 | 5.30% | 17,688 | 332 | 7.55% | 17,688 | 332 | 7.61% | ||||||||||||||||||||||||||||||||||||
Interest-earning deposits with other institutions | 174,119 | 946 | 2.16% | 63,572 | 304 | 1.90% | 261,041 | 613 | 0.94% | 18,695 | 94 | 2.04% | ||||||||||||||||||||||||||||||||||||
Loans (2) | 7,495,289 | 98,796 | 5.23% | 6,350,240 | 79,818 | 4.99% | 7,482,805 | 92,117 | 4.95% | 7,662,573 | 99,687 | 5.27% | ||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 9,944,571 | 113,563 | 4.55% | 9,122,497 | 96,638 | 4.23% | 10,117,930 | 107,109 | 4.27% | 10,135,176 | 115,283 | 4.62% | ||||||||||||||||||||||||||||||||||||
Total noninterest-earning assets | 1,269,845 | 935,028 | 1,257,870 | 1,273,078 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 11,214,416 | $ | 10,057,525 | $ | 11,375,800 | $ | 11,408,254 | ||||||||||||||||||||||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits (3) | $ | 2,991,330 | 3,501 | 0.46% | $ | 2,850,169 | 2,101 | 0.29% | $ | 3,056,743 | 3,111 | 0.41% | $ | 3,127,839 | 2,685 | 0.35% | ||||||||||||||||||||||||||||||||
Time deposits | 473,347 | 1,088 | 0.91% | 503,649 | 866 | 0.68% | 445,431 | 1,013 | 0.91% | 524,822 | 1,186 | 0.92% | ||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,464,677 | 4,589 | 0.53% | 3,353,818 | 2,967 | 0.35% | 3,502,174 | 4,124 | 0.47% | 3,652,661 | 3,871 | 0.43% | ||||||||||||||||||||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 446,087 | 815 | 0.72% | 478,538 | 851 | 0.70% | 504,585 | 679 | 0.54% | 691,965 | 1,876 | 1.09% | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | 3,910,764 | 5,404 | 0.55% | 3,832,356 | 3,818 | 0.39% | 4,006,759 | 4,803 | 0.48% | 4,344,626 | 5,747 | 0.54% | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 5,227,595 | 4,651,127 | 5,247,025 | 5,085,764 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 110,630 | 70,399 | 115,552 | 98,179 | ||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 1,965,427 | 1,503,643 | 2,006,464 | 1,879,685 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,214,416 | $ | 10,057,525 | $ | 11,375,800 | $ | 11,408,254 | ||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 108,159 | $ | 92,820 | $ | 102,306 | $ | 109,536 | ||||||||||||||||||||||||||||||||||||||||
Net interest spread - tax equivalent | 4.00% | 3.84% | 3.79% | 4.08% | ||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 4.32% | 4.04% | 4.06% | 4.37% | ||||||||||||||||||||||||||||||||||||||||||||
Net interest margin - tax equivalent | 4.34% | 4.06% | 4.08% | 4.39% |
(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 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% |
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 | |||||||||
Comparision of Three Months Ended March 31, 2020 Compared to 2019 Increase (Decrease) Due to | ||||||||||||||||
Volume | Rate | Rate/ Volume | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest income: | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Taxable investment securities | $ | 31 | $ | (514 | ) | $ | (1 | ) | $ | (484 | ) | |||||
Tax-advantaged investment securities | (40 | ) | (63 | ) | (9 | ) | (112 | ) | ||||||||
Held-to-maturity securities: | ||||||||||||||||
Taxable investment securities | (214 | ) | 2 | - | (212 | ) | ||||||||||
Tax-advantaged investment securities | (258 | ) | (49 | ) | (8 | ) | (315 | ) | ||||||||
Investment in FHLB stock | - | - | - | - | ||||||||||||
Interest-earning deposits with other institutions | 1,231 | (51 | ) | (661 | ) | 519 | ||||||||||
Loans | (2,060 | ) | (5,384 | ) | (126 | ) | (7,570 | ) | ||||||||
Total interest income | (1,310 | ) | (6,059 | ) | (805 | ) | (8,174 | ) | ||||||||
Interest expense: | ||||||||||||||||
Savings deposits | (65 | ) | 503 | (12 | ) | 426 | ||||||||||
Time deposits | (171 | ) | (2 | ) | - | (173 | ) | |||||||||
FHLB advances, other borrowings, and customer repurchase agreements | (354 | ) | (663 | ) | (180 | ) | (1,197 | ) | ||||||||
Total interest expense | (590 | ) | (162 | ) | (192 | ) | (944 | ) | ||||||||
Net interest income | $ | (720 | ) | $ | (5,897 | ) | $ | (613 | ) | $ | (7,230 | ) | ||||
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 March 31, | Variance | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | $ | 4,776 | $ | 5,141 | $ | (365 | ) | -7.10 | % | |||||||
Trust and investment services | 2,420 | 2,182 | 238 | 10.91 | % | |||||||||||
Bankcard services | 577 | 950 | (373 | ) | -39.26 | % | ||||||||||
BOLI income | 2,059 | 1,336 | 723 | 54.12 | % | |||||||||||
Gain on OREO, net | 10 | 105 | (95 | ) | -90.48 | % | ||||||||||
Gain on sale of building, net | - | 4,545 | (4,545 | ) | -100.00 | % | ||||||||||
Other | 1,798 | 2,044 | (246 | ) | -12.04 | % | ||||||||||
Total noninterest income | $ | 11,640 | $ | 16,303 | $ | (4,663 | ) | -28.60 | % | |||||||
Standard | Description | Adoption Timing | Impact on Financial Statements | |||
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide temporary, optional guidance to ease the potential burden in accounting for transitioning away from reference rates such as LIBOR. The amendments provide optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The amendments primarily include relief related to contract modifications and hedging relationships, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity. This guidance is effective immediately and the amendments may be applied prospectively through December 31, 2022. | 1st Quarter 2020 through the 4th Quarter 2022 | Although the Company is assessing the impacts of this transition and exploring alternatives to use in place of LIBOR for various financial instruments, primarily related to our variable-rate loans, our subordinated debentures, and interest rate swap derivatives that are indexed to LIBOR, we do not expect this ASU to have a material impact on the Company's consolidated financial statements. | |||
Issued March 2020 | ||||||
ASU 2020-01 "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) | The FASB issued ASU 2020-01 "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This ASU clarifies the interactions between ASC 321, ASC 323 and ASC 815 and addresses accounting for the transition into and out of the equity method and also provides guidance on whether equity method accounting would be applied to certain purchased options and forward contracts upon settlement. | 1st Quarter 2021 | The adoption of this ASU will not have an impact on our consolidated financial statements. |
For the Three Months Ended March 31, | Variance | ||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Net interest income | $ | 102,306 | $ | 109,536 | $ | (7,230) | -6.60% | ||||||||||
Provision for credit losses | (12,000 | ) | (1,500 | ) | (10,500) | -700.00% | |||||||||||
Noninterest income | 11,640 | 16,303 | (4,663) | -28.60% | |||||||||||||
Noninterest expense | (48,641 | ) | (51,604 | ) | 2,963 | 5.74% | |||||||||||
Income taxes | (15,325 | ) | (21,093 | ) | 5,768 | 27.35% | |||||||||||
Net earnings | $ | 37,980 | $ | 51,642 | $ | (13,662) | -26.46% | ||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Diluted | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Return on average assets | 1.34% | 1.84% | -0.50% | ||||||||||||||
Return on average shareholders’ equity | 7.61% | 11.14% | -3.53% | ||||||||||||||
Efficiency ratio | 42.69% | 41.01% | 1.68% | ||||||||||||||
Noninterest expense to average assets | 1.72% | 1.83% | -0.11% |
For the Three Months Ended | Variance | ||||||||||||||||
March 31, 2020 | December 31, 2019 | $ | % | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Net interest income | $ | 102,306 | $ | 107,020 | $ | (4,714) | -4.40% | ||||||||||
Provision for credit losses | (12,000 | ) | - | (12,000) | - | ||||||||||||
Noninterest income | 11,640 | 12,640 | (1,000) | -7.91% | |||||||||||||
Noninterest expense | (48,641 | ) | (49,073 | ) | 432 | 0.88% | |||||||||||
Income taxes | (15,325 | ) | (19,306 | ) | 3,981 | 20.62% | |||||||||||
Net earnings | $ | 37,980 | $ | 51,281 | $ | (13,301) | -25.94% | ||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Diluted | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Return on average assets | 1.34% | 1.79% | -0.45% | ||||||||||||||
Return on average shareholders’ equity | 7.61% | 10.21% | -2.60% | ||||||||||||||
Efficiency ratio | 42.69% | 41.01% | 1.68% | ||||||||||||||
Noninterest expense to average assets | 1.72% | 1.71% | 0.01% |
Three Months Ended | ||||||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||||||
(Dollars in thousands) | ||||||||||||
Net Income | $ | 37,980 | $ | 51,281 | $ | 51,642 | ||||||
Add: Amortization of intangible assets | 2,445 | 2,460 | 2,857 | |||||||||
Less: Tax effect of amortization of intangible assets (1) | (723) | (727) | (845) | |||||||||
Tangible net income | $ | 39,702 | $ | 53,014 | $ | 53,654 | ||||||
Average stockholders’ equity | $ | 2,006,464 | $ | 1,993,315 | $ | 1,879,685 | ||||||
Less: Average goodwill | (663,707) | (663,707) | (666,539) | |||||||||
Less: Average intangible assets | (41,732) | (44,185) | (52,777) | |||||||||
Average tangible common equity | $ | 1,301,025 | $ | 1,285,423 | $ | 1,160,369 | ||||||
Return on average equity, annualized | 7.61 | % | 10.21 | % | 11.14 | % | ||||||
Return on average tangible common equity, annualized | 12.27 | % | 16.36 | % | 18.75 | % |
(1) | Tax effected at respective statutory rates. |
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% |
For the Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,659,394 | $ | 9,825 | 2.37% | $ | 1,654,324 | $ | 10,309 | 2.49% | ||||||||||||||
Tax-advantaged | 38,086 | 224 | 3.36% | 44,380 | 336 | 4.07% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 469,394 | 2,698 | 2.30% | 509,608 | 2,910 | 2.30% | ||||||||||||||||||
Tax-advantaged | 189,522 | 1,300 | 3.32% | 227,908 | 1,615 | 3.43% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 332 | 7.55% | 17,688 | 332 | 7.61% | ||||||||||||||||||
Interest-earning deposits with other institutions | 261,041 | 613 | 0.94% | 18,695 | 94 | 2.04% | ||||||||||||||||||
Loans (2) | 7,482,805 | 92,117 | 4.95% | 7,662,573 | 99,687 | 5.27% | ||||||||||||||||||
Total interest-earning assets | 10,117,930 | 107,109 | 4.27% | 10,135,176 | 115,283 | 4.62% | ||||||||||||||||||
Total noninterest-earning assets | 1,257,870 | 1,273,078 | ||||||||||||||||||||||
Total assets | $ | 11,375,800 | $ | 11,408,254 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 3,056,743 | 3,111 | 0.41% | $ | 3,127,839 | 2,685 | 0.35% | ||||||||||||||||
Time deposits | 445,431 | 1,013 | 0.91% | 524,822 | 1,186 | 0.92% | ||||||||||||||||||
Total interest-bearing deposits | 3,502,174 | 4,124 | 0.47% | 3,652,661 | 3,871 | 0.43% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 504,585 | 679 | 0.54% | 691,965 | 1,876 | 1.09% | ||||||||||||||||||
Interest-bearing liabilities | 4,006,759 | 4,803 | 0.48% | 4,344,626 | 5,747 | 0.54% | ||||||||||||||||||
Noninterest-bearing deposits | 5,247,025 | 5,085,764 | ||||||||||||||||||||||
Other liabilities | 115,552 | 98,179 | ||||||||||||||||||||||
Stockholders’ equity | 2,006,464 | 1,879,685 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,375,800 | $ | 11,408,254 | ||||||||||||||||||||
Net interest income | $ | 102,306 | $ | 109,536 | ||||||||||||||||||||
Net interest spread - tax equivalent | 3.79% | 4.08% | ||||||||||||||||||||||
Net interest margin | 4.06% | 4.37% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.08% | 4.39% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended March 31, 2020 and 2019. The non TE rates were 2.38% and 2.49% for the three months ended March 31, 2020 and 2019, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
Comparision of Three Months Ended March 31, 2020 Compared to 2019 Increase (Decrease) Due to | ||||||||||||||||
Volume | Rate | Rate/ Volume | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest income: | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Taxable investment securities | $ | 31 | $ | (514 | ) | $ | (1 | ) | $ | (484 | ) | |||||
Tax-advantaged investment securities | (40 | ) | (63 | ) | (9 | ) | (112 | ) | ||||||||
Held-to-maturity securities: | ||||||||||||||||
Taxable investment securities | (214 | ) | 2 | - | (212 | ) | ||||||||||
Tax-advantaged investment securities | (258 | ) | (49 | ) | (8 | ) | (315 | ) | ||||||||
Investment in FHLB stock | - | - | - | - | ||||||||||||
Interest-earning deposits with other institutions | 1,231 | (51 | ) | (661 | ) | 519 | ||||||||||
Loans | (2,060 | ) | (5,384 | ) | (126 | ) | (7,570 | ) | ||||||||
Total interest income | (1,310 | ) | (6,059 | ) | (805 | ) | (8,174 | ) | ||||||||
Interest expense: | ||||||||||||||||
Savings deposits | (65 | ) | 503 | (12 | ) | 426 | ||||||||||
Time deposits | (171 | ) | (2 | ) | - | (173 | ) | |||||||||
FHLB advances, other borrowings, and customer repurchase agreements | (354 | ) | (663 | ) | (180 | ) | (1,197 | ) | ||||||||
Total interest expense | (590 | ) | (162 | ) | (192 | ) | (944 | ) | ||||||||
Net interest income | $ | (720 | ) | $ | (5,897 | ) | $ | (613 | ) | $ | (7,230 | ) | ||||
For the Three Months Ended March 31, | Variance | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | $ | 4,776 | $ | 5,141 | $ | (365 | ) | -7.10 | % | |||||||
Trust and investment services | 2,420 | 2,182 | 238 | 10.91 | % | |||||||||||
Bankcard services | 577 | 950 | (373 | ) | -39.26 | % | ||||||||||
BOLI income | 2,059 | 1,336 | 723 | 54.12 | % | |||||||||||
Gain on OREO, net | 10 | 105 | (95 | ) | -90.48 | % | ||||||||||
Gain on sale of building, net | - | 4,545 | (4,545 | ) | -100.00 | % | ||||||||||
Other | 1,798 | 2,044 | (246 | ) | -12.04 | % | ||||||||||
Total noninterest income | $ | 11,640 | $ | 16,303 | $ | (4,663 | ) | -28.60 | % | |||||||
Standard | Description | Adoption Timing | Impact on Financial Statements | |||
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide temporary, optional guidance to ease the potential burden in accounting for transitioning away from reference rates such as LIBOR. The amendments provide optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The amendments primarily include relief related to contract modifications and hedging relationships, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity. This guidance is effective immediately and the amendments may be applied prospectively through December 31, 2022. | 1st Quarter 2020 through the 4th Quarter 2022 | Although the Company is assessing the impacts of this transition and exploring alternatives to use in place of LIBOR for various financial instruments, primarily related to our variable-rate loans, our subordinated debentures, and interest rate swap derivatives that are indexed to LIBOR, we do not expect this ASU to have a material impact on the Company's consolidated financial statements. | |||
Issued March 2020 | ||||||
ASU 2020-01 "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) | The FASB issued ASU 2020-01 "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This ASU clarifies the interactions between ASC 321, ASC 323 and ASC 815 and addresses accounting for the transition into and out of the equity method and also provides guidance on whether equity method accounting would be applied to certain purchased options and forward contracts upon settlement. | 1st Quarter 2021 | The adoption of this ASU will not have an impact on our consolidated financial statements. |
For the Three Months Ended March 31, | Variance | ||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Net interest income | $ | 102,306 | $ | 109,536 | $ | (7,230) | -6.60% | ||||||||||
Provision for credit losses | (12,000 | ) | (1,500 | ) | (10,500) | -700.00% | |||||||||||
Noninterest income | 11,640 | 16,303 | (4,663) | -28.60% | |||||||||||||
Noninterest expense | (48,641 | ) | (51,604 | ) | 2,963 | 5.74% | |||||||||||
Income taxes | (15,325 | ) | (21,093 | ) | 5,768 | 27.35% | |||||||||||
Net earnings | $ | 37,980 | $ | 51,642 | $ | (13,662) | -26.46% | ||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Diluted | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Return on average assets | 1.34% | 1.84% | -0.50% | ||||||||||||||
Return on average shareholders’ equity | 7.61% | 11.14% | -3.53% | ||||||||||||||
Efficiency ratio | 42.69% | 41.01% | 1.68% | ||||||||||||||
Noninterest expense to average assets | 1.72% | 1.83% | -0.11% |
For the Three Months Ended | Variance | ||||||||||||||||
March 31, 2020 | December 31, 2019 | $ | % | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Net interest income | $ | 102,306 | $ | 107,020 | $ | (4,714) | -4.40% | ||||||||||
Provision for credit losses | (12,000 | ) | - | (12,000) | - | ||||||||||||
Noninterest income | 11,640 | 12,640 | (1,000) | -7.91% | |||||||||||||
Noninterest expense | (48,641 | ) | (49,073 | ) | 432 | 0.88% | |||||||||||
Income taxes | (15,325 | ) | (19,306 | ) | 3,981 | 20.62% | |||||||||||
Net earnings | $ | 37,980 | $ | 51,281 | $ | (13,301) | -25.94% | ||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Diluted | $ | 0.27 | $ | 0.37 | $ | (0.10) | |||||||||||
Return on average assets | 1.34% | 1.79% | -0.45% | ||||||||||||||
Return on average shareholders’ equity | 7.61% | 10.21% | -2.60% | ||||||||||||||
Efficiency ratio | 42.69% | 41.01% | 1.68% | ||||||||||||||
Noninterest expense to average assets | 1.72% | 1.71% | 0.01% |
Three Months Ended | ||||||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||||||
(Dollars in thousands) | ||||||||||||
Net Income | $ | 37,980 | $ | 51,281 | $ | 51,642 | ||||||
Add: Amortization of intangible assets | 2,445 | 2,460 | 2,857 | |||||||||
Less: Tax effect of amortization of intangible assets (1) | (723) | (727) | (845) | |||||||||
Tangible net income | $ | 39,702 | $ | 53,014 | $ | 53,654 | ||||||
Average stockholders’ equity | $ | 2,006,464 | $ | 1,993,315 | $ | 1,879,685 | ||||||
Less: Average goodwill | (663,707) | (663,707) | (666,539) | |||||||||
Less: Average intangible assets | (41,732) | (44,185) | (52,777) | |||||||||
Average tangible common equity | $ | 1,301,025 | $ | 1,285,423 | $ | 1,160,369 | ||||||
Return on average equity, annualized | 7.61 | % | 10.21 | % | 11.14 | % | ||||||
Return on average tangible common equity, annualized | 12.27 | % | 16.36 | % | 18.75 | % |
(1) | Tax effected at respective statutory rates. |
For the Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,659,394 | $ | 9,825 | 2.37% | $ | 1,654,324 | $ | 10,309 | 2.49% | ||||||||||||||
Tax-advantaged | 38,086 | 224 | 3.36% | 44,380 | 336 | 4.07% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 469,394 | 2,698 | 2.30% | 509,608 | 2,910 | 2.30% | ||||||||||||||||||
Tax-advantaged | 189,522 | 1,300 | 3.32% | 227,908 | 1,615 | 3.43% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 332 | 7.55% | 17,688 | 332 | 7.61% | ||||||||||||||||||
Interest-earning deposits with other institutions | 261,041 | 613 | 0.94% | 18,695 | 94 | 2.04% | ||||||||||||||||||
Loans (2) | 7,482,805 | 92,117 | 4.95% | 7,662,573 | 99,687 | 5.27% | ||||||||||||||||||
Total interest-earning assets | 10,117,930 | 107,109 | 4.27% | 10,135,176 | 115,283 | 4.62% | ||||||||||||||||||
Total noninterest-earning assets | 1,257,870 | 1,273,078 | ||||||||||||||||||||||
Total assets | $ | 11,375,800 | $ | 11,408,254 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 3,056,743 | 3,111 | 0.41% | $ | 3,127,839 | 2,685 | 0.35% | ||||||||||||||||
Time deposits | 445,431 | 1,013 | 0.91% | 524,822 | 1,186 | 0.92% | ||||||||||||||||||
Total interest-bearing deposits | 3,502,174 | 4,124 | 0.47% | 3,652,661 | 3,871 | 0.43% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 504,585 | 679 | 0.54% | 691,965 | 1,876 | 1.09% | ||||||||||||||||||
Interest-bearing liabilities | 4,006,759 | 4,803 | 0.48% | 4,344,626 | 5,747 | 0.54% | ||||||||||||||||||
Noninterest-bearing deposits | 5,247,025 | 5,085,764 | ||||||||||||||||||||||
Other liabilities | 115,552 | 98,179 | ||||||||||||||||||||||
Stockholders’ equity | 2,006,464 | 1,879,685 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,375,800 | $ | 11,408,254 | ||||||||||||||||||||
Net interest income | $ | 102,306 | $ | 109,536 | ||||||||||||||||||||
Net interest spread - tax equivalent | 3.79% | 4.08% | ||||||||||||||||||||||
Net interest margin | 4.06% | 4.37% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.08% | 4.39% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended March 31, 2020 and 2019. The non TE rates were 2.38% and 2.49% for the three months ended March 31, 2020 and 2019, respectively. |
(2) | Includes loan fees of $548,000 and $827,000 for the three months ended March 31, 2020 and 2019, respectively. Prepayment penalty fees of $1.5 million and $1.0 million are included in interest income for the three months ended March 31, 2020 and 2019, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
Comparision of Three Months Ended March 31, 2020 Compared to 2019 Increase (Decrease) Due to | ||||||||||||||||
Volume | Rate | Rate/ Volume | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest income: | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Taxable investment securities | $ | 31 | $ | (514 | ) | $ | (1 | ) | $ | (484 | ) | |||||
Tax-advantaged investment securities | (40 | ) | (63 | ) | (9 | ) | (112 | ) | ||||||||
Held-to-maturity securities: | ||||||||||||||||
Taxable investment securities | (214 | ) | 2 | - | (212 | ) | ||||||||||
Tax-advantaged investment securities | (258 | ) | (49 | ) | (8 | ) | (315 | ) | ||||||||
Investment in FHLB stock | - | - | - | - | ||||||||||||
Interest-earning deposits with other institutions | 1,231 | (51 | ) | (661 | ) | 519 | ||||||||||
Loans | (2,060 | ) | (5,384 | ) | (126 | ) | (7,570 | ) | ||||||||
Total interest income | (1,310 | ) | (6,059 | ) | (805 | ) | (8,174 | ) | ||||||||
Interest expense: | ||||||||||||||||
Savings deposits | (65 | ) | 503 | (12 | ) | 426 | ||||||||||
Time deposits | (171 | ) | (2 | ) | - | (173 | ) | |||||||||
FHLB advances, other borrowings, and customer repurchase agreements | (354 | ) | (663 | ) | (180 | ) | (1,197 | ) | ||||||||
Total interest expense | (590 | ) | (162 | ) | (192 | ) | (944 | ) | ||||||||
Net interest income | $ | (720 | ) | $ | (5,897 | ) | $ | (613 | ) | $ | (7,230 | ) | ||||
For the Three Months Ended March 31, | Variance | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | $ | 4,776 | $ | 5,141 | $ | (365 | ) | -7.10 | % | |||||||
Trust and investment services | 2,420 | 2,182 | 238 | 10.91 | % | |||||||||||
Bankcard services | 577 | 950 | (373 | ) | -39.26 | % | ||||||||||
BOLI income | 2,059 | 1,336 | 723 | 54.12 | % | |||||||||||
Gain on OREO, net | 10 | 105 | (95 | ) | -90.48 | % | ||||||||||
Gain on sale of building, net | - | 4,545 | (4,545 | ) | -100.00 | % | ||||||||||
Other | 1,798 | 2,044 | (246 | ) | -12.04 | % | ||||||||||
Total noninterest income | $ | 11,640 | $ | 16,303 | $ | (4,663 | ) | -28.60 | % | |||||||
For the Three Months Ended March 31, | Variance | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | $ | 30,877 | $ | 29,302 | $ | 1,575 | 5.38% | |||||||||
Occupancy | 3,803 | 4,407 | (604 | ) | -13.71% | |||||||||||
Equipment | 1,034 | 1,017 | 17 | 1.67% | ||||||||||||
Professional services | 2,256 | 1,925 | 331 | 17.19% | ||||||||||||
Computer software expense | 2,816 | 2,613 | 203 | 7.77% | ||||||||||||
Marketing and promotion | 1,555 | 1,394 | 161 | 11.55% | ||||||||||||
Amortization of intangible assets | 2,445 | 2,857 | (412 | ) | -14.42% | |||||||||||
Telecommunications expense | 636 | 758 | (122 | ) | -16.09% | |||||||||||
Regulatory assessments | 148 | 924 | (776 | ) | -83.98% | |||||||||||
Insurance | 406 | 469 | (63 | ) | -13.43% | |||||||||||
Loan expense | 257 | 316 | (59 | ) | -18.67% | |||||||||||
Directors’ expenses | 315 | 287 | 28 | 9.76% | ||||||||||||
Stationery and supplies | 285 | 292 | (7 | ) | -2.40% | |||||||||||
Acquisition related expenses | - | 3,149 | (3,149 | ) | -100.00% | |||||||||||
Other | 1,808 | 1,894 | (86 | ) | -4.54% | |||||||||||
Total noninterest expense | $ | 48,641 | $ | 51,604 | $ | (2,963 | ) | -5.74% | ||||||||
Noninterest expense to average assets | 1.72% | 1.83% | ||||||||||||||
Efficiency ratio (1) | 42.69% | 41.01% |
(1) | Noninterest expense divided by net interest income before provision for credit losses plus noninterest income. |
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% | ||||||||||||
September 30, 2019 | |||||||||||||||||||||||||
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 | $ | 2 | $ | - | $ | 127,904 | $ | (1,341 | ) | $ | 127,906 | $ | (1,341 | ) | |||||||||||
CMO/REMIC - residential | 122,595 | (156 | ) | 39,498 | (180 | ) | 162,093 | (336 | ) | ||||||||||||||||
Municipal bonds | - | - | 564 | (1 | ) | 564 | (1 | ) | |||||||||||||||||
Total available-for-sale securities | $ | 122,597 | $ | (156 | ) | $ | 167,966 | $ | (1,522 | ) | $ | 290,563 | $ | (1,678 | ) | ||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||
Government agency/GSE | $ | - | $ | - | $ | 19,923 | $ | (170 | ) | $ | 19,923 | $ | (170 | ) | |||||||||||
Residential mortgage-backed securities | 5,021 | (3 | ) | - | - | 5,021 | (3 | ) | |||||||||||||||||
CMO | - | - | 178,297 | (1,467 | ) | 178,297 | (1,467 | ) | |||||||||||||||||
Municipal bonds | 3,037 | (5 | ) | 32,217 | (553 | ) | 35,254 | (558 | ) | ||||||||||||||||
Total held-to-maturity securities | $ | 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 | ) | ||||||||||
March 31, 2020 | ||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||
Mortgage-backed securities | $ | 1,118,385 | $ | 43,546 | $ | - | $ | 1,161,931 | 69.18% | |||||||||||
CMO/REMIC | 466,033 | 14,060 | - | 480,093 | 28.58% | |||||||||||||||
Municipal bonds | 36,119 | 913 | - | 37,032 | 2.20% | |||||||||||||||
Other securities | 699 | - | - | 699 | 0.04% | |||||||||||||||
Total available-for-sale securities | $ | 1,621,236 | $ | 58,519 | $ | - | $ | 1,679,755 | 100.00% | |||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 111,452 | $ | 3,468 | $ | (207) | $ | 114,713 | 17.35% | |||||||||||
Mortgage-backed securities | 161,983 | 8,182 | - | 170,165 | 25.22% | |||||||||||||||
CMO/REMIC | 184,316 | 591 | (98) | 184,809 | 28.70% | |||||||||||||||
Municipal bonds | 184,504 | 4,054 | (426) | 188,132 | 28.73% | |||||||||||||||
Total held-to-maturity securities | $ | 642,255 | $ | 16,295 | $ | (731) | $ | 657,819 | 100.00% | |||||||||||
December 31, 2019 | ||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||
Mortgage-backed securities | $ | 1,185,757 | $ | 21,306 | $ | (750) | $ | 1,206,313 | 69.32% | |||||||||||
CMO/REMIC | 493,214 | 1,392 | (896) | 493,710 | 28.37% | |||||||||||||||
Municipal bonds | 38,506 | 850 | (2) | 39,354 | 2.26% | |||||||||||||||
Other securities | 880 | - | - | 880 | 0.05% | |||||||||||||||
Total available-for-sale securities | $ | 1,718,357 | $ | 23,548 | $ | (1,648) | $ | 1,740,257 | 100.00% | |||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 117,366 | $ | 2,280 | $ | (657) | $ | 118,989 | 17.40% | |||||||||||
Mortgage-backed securities | 168,479 | 2,083 | (54) | 170,508 | 24.98% | |||||||||||||||
CMO/REMIC | 192,548 | - | (2,458) | 190,090 | 28.55% | |||||||||||||||
Municipal bonds | 196,059 | 3,867 | (565) | 199,361 | 29.07% | |||||||||||||||
Total held-to-maturity securities | $ | 674,452 | $ | 8,230 | $ | (3,734) | $ | 678,948 | 100.00% | |||||||||||
December 31, 2019 | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 20,289 | $ | (6) | $ | 97,964 | $ | (744) | $ | 118,253 | $ | (750) | ||||||||||||
CMO/REMIC | 177,517 | (705) | 34,565 | (191) | 212,082 | (896) | ||||||||||||||||||
Municipal bonds | - | - | 563 | (2) | 563 | (2) | ||||||||||||||||||
Total available-for-sale securities | $ | 197,806 | $ | (711) | $ | 133,092 | $ | (937) | $ | 330,898 | $ | (1,648) | ||||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||||||
Government agency/GSE | $ | 28,359 | $ | (252) | $ | 19,405 | $ | (405) | $ | 47,764 | $ | (657) | ||||||||||||
Mortgage-backed securities | 10,411 | (54) | - | - | 10,411 | (54) | ||||||||||||||||||
CMO/REMIC | 23,897 | (104) | 166,193 | (2,354) | 190,090 | (2,458) | ||||||||||||||||||
Municipal bonds | 7,583 | (32) | 29,981 | (533) | 37,564 | (565) | ||||||||||||||||||
Total held-to-maturity securities | $ | 70,250 | $ | (442) | $ | 215,579 | $ | (3,292) | $ | 285,829 | $ | (3,734) | ||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Total Loans and Leases | Non-PCI Loansand Leases | PCI Loans | Total Loans and Leases | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 921,678 | $ | 1,002,209 | $ | 519 | $ | 1,002,728 | $ | 960,761 | $ | 935,127 | ||||||||||||||
SBA | 319,571 | 350,043 | 1,258 | 351,301 | 313,071 | 305,008 | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Commercial real estate | 5,375,668 | 5,394,229 | 14,407 | 5,408,636 | 5,347,925 | 5,374,617 | ||||||||||||||||||||
Construction | 119,931 | 122,782 | - | 122,782 | 128,045 | 116,925 | ||||||||||||||||||||
SFR mortgage | 278,644 | 296,504 | 145 | 296,649 | 278,743 | 283,468 | ||||||||||||||||||||
Dairy & livestock and agribusiness | 311,229 | 393,843 | 700 | 394,543 | 272,114 | 383,709 | ||||||||||||||||||||
Municipal lease finance receivables | 54,468 | 64,186 | - | 64,186 | 51,287 | 53,146 | ||||||||||||||||||||
Consumer and other loans | 117,128 | 128,429 | 185 | 128,614 | 114,206 | 116,319 | ||||||||||||||||||||
Gross loans | 7,498,317 | 7,752,225 | 17,214 | 7,769,439 | 7,466,152 | 7,568,319 | ||||||||||||||||||||
Less: Deferred loan fees, net | (3,866 | ) | (4,828 | ) | - | (4,828 | ) | |||||||||||||||||||
Less: Deferred loan fees, net (1) | - | (3,742 | ) | |||||||||||||||||||||||
Gross loans, net of deferred loan fees | 7,494,451 | 7,747,397 | 17,214 | 7,764,611 | 7,466,152 | 7,564,577 | ||||||||||||||||||||
Less: Allowance for loan losses | (68,672 | ) | (63,409 | ) | (204 | ) | (63,613 | ) | ||||||||||||||||||
Less: Allowance for credit losses | (82,641 | ) | (68,660 | ) | ||||||||||||||||||||||
Total loans and lease finance receivables | $ | 7,425,779 | $ | 7,683,988 | $ | 17,010 | $ | 7,700,998 | $ | 7,383,511 | $ | 7,495,917 | ||||||||||||||
(1) | Beginning with March 31, 2020, gross loans are presented net of deferred loan fees by respective class of financing receivables. |
September 30, 2019 | March 31, 2020 | |||||||||||||||||||||||||||||||
Total Loans | Commercial Real Estate Loans | Total Loans | Commercial Real Estate Loans | |||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Los Angeles County | $ | 3,301,874 | 44.0% | $ | 2,267,332 | 42.2% | $ | 3,297,399 | 44.2% | $ | 2,214,541 | 41.4% | ||||||||||||||||||||
Central Valley | 1,112,079 | 14.8% | 879,344 | 16.3% | 1,120,563 | 15.0% | 899,197 | 16.8% | ||||||||||||||||||||||||
Orange County | 1,008,152 | 13.5% | 665,360 | 12.4% | 968,575 | 13.0% | 654,593 | 12.2% | ||||||||||||||||||||||||
Inland Empire | 976,892 | 13.0% | 853,110 | 15.9% | 987,534 | 13.2% | 845,578 | 15.8% | ||||||||||||||||||||||||
Central Coast | 420,226 | 5.6% | 343,152 | 6.4% | 457,225 | 6.1% | 361,910 | 6.8% | ||||||||||||||||||||||||
San Diego | 227,235 | 3.0% | 129,115 | 2.4% | 210,065 | 2.8% | 128,828 | 2.4% | ||||||||||||||||||||||||
Other California | 140,005 | 1.9% | 70,640 | 1.3% | 139,860 | 1.9% | 78,833 | 1.5% | ||||||||||||||||||||||||
Out of State | 311,854 | 4.2% | 167,615 | 3.1% | 284,931 | 3.8% | 164,445 | 3.1% | ||||||||||||||||||||||||
$ | 7,498,317 | 100.0% | $ | 5,375,668 | 100.0% | $ | 7,466,152 | 100.0% | $ | 5,347,925 | 100.0% | |||||||||||||||||||||
September 30, 2019 | March 31, 2020 | ||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
Industrial | $ | 1,890,465 | 35.2% | 54.6% | $ | 1,430 | $ | 1,848,941 | 34.6% | 54.0% | $ | 1,377 | |||||||||||||||||||||
Office | 921,565 | 17.1% | 26.9% | 1,506 | 940,513 | 17.6% | 25.3% | 1,512 | |||||||||||||||||||||||||
Retail | 800,406 | 14.9% | 13.1% | 1,707 | 783,047 | 14.6% | 11.8% | 1,635 | |||||||||||||||||||||||||
Multi-family | 577,700 | 10.7% | 0.5% | 1,596 | 586,221 | 11.0% | 0.5% | 1,642 | |||||||||||||||||||||||||
Medical | 279,805 | 5.2% | 45.3% | 1,829 | 279,466 | 5.2% | 45.7% | 1,791 | |||||||||||||||||||||||||
Secured by farmland (2) | 245,574 | 4.6% | 100.0% | 2,030 | 248,172 | 4.6% | 100.0% | 2,034 | |||||||||||||||||||||||||
Other (3) | 660,153 | 12.3% | 50.7% | 1,423 | 661,565 | 12.4% | 54.8% | 1,402 | |||||||||||||||||||||||||
Total commercial real estate | $ | 5,375,668 | 100.0% | 39.0% | 1,535 | $ | 5,347,925 | 100.0% | 38.7% | $ | 1,506 | ||||||||||||||||||||||
(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. |
September 30, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Nonaccrual loans | $ | 6,363 | $ | 16,442 | $ | 6,428 | $ | 5,033 | ||||||||
Troubled debt restructured loans (nonperforming) | 249 | 3,509 | - | 244 | ||||||||||||
OREO, net | 9,450 | 420 | 4,889 | 4,889 | ||||||||||||
Total nonperforming assets | $ | 16,062 | $ | 20,371 | $ | 11,317 | $ | 10,166 | ||||||||
Troubled debt restructured performing loans | $ | 3,168 | $ | 3,594 | $ | 2,813 | $ | 3,112 | ||||||||
Percentage of nonperforming assets to total loans outstanding, net of deferred fees, and OREO | 0.21% | 0.26% | 0.15% | 0.13% | ||||||||||||
Percentage of nonperforming assets to total assets | 0.14% | 0.18% | 0.10% | 0.09% |
September 30, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
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 | $ | 88 | 2 | $ | 135 | 2 | $ | 68 | 2 | $ | 78 | 2 | ||||||||||||||||||||||
SBA | 542 | 1 | 575 | 1 | 524 | 1 | 536 | 1 | ||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||||
Commercial real estate | 417 | 1 | 472 | 1 | 377 | 1 | 397 | 1 | ||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
SFR mortgage | 2,121 | 8 | 2,412 | 9 | 1,844 | 7 | 2,101 | 8 | ||||||||||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Total performing TDRs | $ | 3,168 | 12 | $ | 3,594 | 13 | $ | 2,813 | 11 | $ | 3,112 | 12 | ||||||||||||||||||||||
Nonperforming TDRs: | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1 | 1 | $ | 21 | 1 | $ | - | - | $ | - | - | ||||||||||||||||||||||
SBA | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||||
Commercial real estate | - | - | 3,143 | 1 | - | - | - | - | ||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
SFR mortgage | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Dairy & livestock and agribusiness | - | - | 78 | 1 | - | - | - | - | ||||||||||||||||||||||||||
Consumer and other | 248 | 1 | 267 | 1 | - | - | 244 | 1 | ||||||||||||||||||||||||||
Total nonperforming TDRs | $ | 249 | 2 | $ | 3,509 | 4 | $ | - | - | $ | 244 | 1 | ||||||||||||||||||||||
Total TDRs | $ | 3,417 | 14 | $ | 7,103 | 17 | $ | 2,813 | 11 | $ | 3,356 | 13 | ||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,550 | $ | 1,993 | $ | 8,388 | $ | 7,490 | $ | 3,026 | $ | 1,703 | $ | 1,266 | $ | 1,550 | $ | 1,993 | $ | 8,388 | ||||||||||||||||||||
SBA | 2,706 | 5,082 | 4,098 | 2,892 | 3,005 | 2,748 | 2,032 | 2,706 | 5,082 | 4,098 | ||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1,083 | 1,095 | 1,134 | 6,068 | 5,856 | 947 | 724 | 1,083 | 1,095 | 1,134 | ||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
SFR mortgage | 888 | 2,720 | 2,894 | 2,937 | 2,961 | 864 | 878 | 888 | 2,720 | 2,894 | ||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | 78 | 775 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Consumer and other loans | 385 | 397 | 477 | 486 | 807 | 166 | 377 | 385 | 397 | 477 | ||||||||||||||||||||||||||||||
Total | $ | 6,612 | $ | 11,287 | $ | 16,991 | $ | 19,951 | $ | 16,430 | $ | 6,428 | $ | 5,277 | $ | 6,612 | $ | 11,287 | $ | 16,991 | ||||||||||||||||||||
% of Total gross loans | 0.09% | 0.15% | 0.22% | 0.26% | 0.22% | 0.09% | 0.07% | 0.09% | 0.15% | 0.22% | ||||||||||||||||||||||||||||||
Past due 30-89 days: | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 756 | $ | 310 | $ | 369 | $ | 909 | $ | 274 | $ | 665 | $ | 2 | $ | 756 | $ | 310 | $ | 369 | ||||||||||||||||||||
SBA | 303 | - | 601 | 1,307 | 123 | 3,086 | 1,402 | 303 | - | 601 | ||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 368 | - | 124 | 2,789 | - | 210 | - | 368 | - | 124 | ||||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
SFR mortgage | - | - | - | 285 | - | 233 | 249 | - | - | - | ||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | 166 | - | - | - | - | ||||||||||||||||||||||||||||||
Consumer and other loans | - | 22 | 101 | - | 98 | - | - | - | 22 | 101 | ||||||||||||||||||||||||||||||
Total | $ | 1,427 | $ | 332 | $ | 1,195 | $ | 5,290 | $ | 495 | $ | 4,360 | $ | 1,653 | $ | 1,427 | $ | 332 | $ | 1,195 | ||||||||||||||||||||
% of Total gross loans | 0.02% | 0.004% | 0.02% | 0.07% | 0.01% | 0.06% | 0.02% | 0.02% | 0.004% | 0.02% | ||||||||||||||||||||||||||||||
OREO: | ||||||||||||||||||||||||||||||||||||||||
SBA | $ | 444 | $ | - | $ | - | $ | - | $ | - | $ | 797 | $ | 797 | $ | 444 | $ | - | $ | - | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 2,275 | 2,275 | 2,275 | - | - | 2,275 | 2,275 | 2,275 | 2,275 | 2,275 | ||||||||||||||||||||||||||||||
SFR mortgage | 6,731 | - | - | 420 | 420 | 1,817 | 1,817 | 6,731 | - | - | ||||||||||||||||||||||||||||||
Total | $ | 9,450 | $ | 2,275 | $ | 2,275 | $ | 420 | $ | 420 | $ | 4,889 | $ | 4,889 | $ | 9,450 | $ | 2,275 | $ | 2,275 | ||||||||||||||||||||
Total nonperforming, past due, and OREO | $ | 17,489 | $ | 13,894 | $ | 20,461 | $ | 25,661 | $ | 17,345 | $ | 15,677 | $ | 11,819 | $ | 17,489 | $ | 13,894 | $ | 20,461 | ||||||||||||||||||||
% of Total gross loans | 0.23% | 0.18% | 0.27% | 0.33% | 0.23% | 0.21% | 0.16% | 0.23% | 0.18% | 0.27% |
As of and For the Nine Months Ended September 30, | As of and For the Three Months Ended March 31, | |||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||
Allowance for loan losses at beginning of period | $ 63,613 | $ 59,585 | ||||||||||
Allowance for credit losses at beginning of period | $ | 68,660 | ��$ | 63,613 | ||||||||
Impact of adopting ASU 2016-13 | 1,840 | - | ||||||||||
Charge-offs: | ||||||||||||
Commercial and industrial | (48) | - | - | - | ||||||||
SBA | (295) | (257) | - | (20 | ) | |||||||
Commercial real estate | - | - | - | - | ||||||||
Construction | - | - | - | - | ||||||||
SFR mortgage | - | - | - | - | ||||||||
Dairy & livestock and agribusiness | (78) | - | - | (78 | ) | |||||||
Consumer and other loans | (7) | (10) | (86 | ) | (1 | ) | ||||||
Total charge-offs | (428) | (267) | (86 | ) | (99 | ) | ||||||
Recoveries: | ||||||||||||
Commercial and industrial | 253 | 81 | 2 | 110 | ||||||||
SBA | 9 | 15 | - | 5 | ||||||||
Commercial real estate | - | - | - | - | ||||||||
Construction | 9 | 1,945 | 3 | 3 | ||||||||
SFR mortgage | 191 | - | 206 | 68 | ||||||||
Dairy & livestock and agribusiness | 19 | 19 | - | - | ||||||||
Consumer and other loans | 6 | 129 | 16 | 1 | ||||||||
Total recoveries | 487 | 2,189 | 227 | 187 | ||||||||
Net recoveries | 59 | 1,922 | 141 | 88 | ||||||||
Provision for (recapture of) loan losses | 5,000 | (1,500) | ||||||||||
Provision for credit losses | 12,000 | 1,500 | ||||||||||
Allowance for loan losses at end of period | $ 68,672 | $ 60,007 | ||||||||||
Allowance for credit losses at end of period | $ | 82,641 | $ | 65,201 | ||||||||
Summary of reserve for unfunded loan commitments: | ||||||||||||
Reserve for unfunded loan commitments at beginning of period | $ 8,959 | $ 6,306 | $ | 8,959 | $ | 8,959 | ||||||
Estimated fair value of reserve for unfunded loan commitment assumed from Community Bank | - | 2,903 | ||||||||||
Impact of adopting ASU 2016-13 | 41 | - | ||||||||||
Provision for unfunded loan commitments | - | - | - | - | ||||||||
Reserve for unfunded loan commitments at end of period | $ 8,959 | $ 9,209 | $ | 9,000 | $ | 8,959 | ||||||
Reserve for unfunded loan commitments to total unfunded loan commitments | 0.55% | 0.54% | 0.56% | 0.54% | ||||||||
Amount of total loans at end of period (1) | $ 7,494,451 | $ 7,582,459 | $ | 7,466,152 | $ | 7,606,863 | ||||||
Average total loans outstanding (1) | $ 7,571,502 | $ 5,312,558 | $ | 7,482,805 | $ | 7,662,573 | ||||||
Net recoveries to average total loans | 0.00% | 0.04% | 0.002% | 0.001% | ||||||||
Net recoveries to total loans at end of period | 0.00% | 0.03% | 0.002% | 0.001% | ||||||||
Allowance for loan losses to average total loans | 0.91% | 1.13% | ||||||||||
Allowance for loan losses to total loans at end of period | 0.92% | 0.79% | ||||||||||
Net recoveries to allowance for loan losses | 0.09% | 3.20% | ||||||||||
Net recoveries to provision for (recapture of) loan losses | 1.18% | -128.13% | ||||||||||
Allowance for credit losses to average total loans | 1.10% | 0.85% | ||||||||||
Allowance for credit losses to total loans at end of period | 1.11% | 0.86% | ||||||||||
Net recoveries to allowance for credit losses | 0.17% | 0.13% | ||||||||||
Net recoveries to provision for credit losses | 1.18% | 5.87% |
(1) | Includes PCI loans and is net of deferred loan origination fees, costs and discounts. |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||
Balance | Percent | Balance | Percent | ||||||||||||||||||||||||||||||
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 5,385,104 | 61.23% | $ | 5,204,787 | 58.96% | $ | 5,572,649 | 61.15% | $ | 5,245,517 | 60.26% | |||||||||||||||||||||
Interest-bearing deposits | |||||||||||||||||||||||||||||||||
Investment checking | 433,615 | 4.93% | 460,972 | 5.22% | 454,153 | 4.98% | 454,565 | 5.22% | |||||||||||||||||||||||||
Money market | 2,110,780 | 24.00% | 2,236,018 | 25.33% | 2,217,656 | 24.34% | 2,158,161 | 24.79% | |||||||||||||||||||||||||
Savings | 403,108 | 4.59% | 393,769 | 4.46% | 417,708 | 4.58% | 400,377 | 4.60% | |||||||||||||||||||||||||
Time deposits | 461,723 | 5.25% | 531,944 | 6.03% | 451,438 | 4.95% | 446,308 | 5.13% | |||||||||||||||||||||||||
Total deposits | $ | 8,794,330 | 100.00% | $ | 8,827,490 | 100.00% | $ | 9,113,604 | 100.00% | $ | 8,704,928 | 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) | $ | 8,794,330 | $ | 8,674,968 | $ | 107,752 | $ | 3,251 | $ | 8,359 | $ | 9,113,604 | $ | 9,036,138 | $ | 66,253 | $ | 10,626 | $ | 587 | ||||||||||||||||||||
Customer repurchase agreements (1) | 407,850 | 407,850 | - | - | - | 368,915 | 368,915 | - | - | - | ||||||||||||||||||||||||||||||
Junior subordinated debentures (1) | 25,774 | - | - | - | 25,774 | 25,774 | - | - | - | 25,774 | ||||||||||||||||||||||||||||||
Deferred compensation | 23,305 | 723 | 1,356 | 807 | 20,419 | 23,233 | 763 | 1,305 | 636 | 20,529 | ||||||||||||||||||||||||||||||
Operating leases | 23,533 | 7,349 | 9,905 | 4,297 | 1,982 | 20,826 | 6,706 | 9,109 | 3,423 | 1,588 | ||||||||||||||||||||||||||||||
Affordable housing investment | 6,242 | 4,167 | 1,984 | 55 | 36 | 3,159 | 2,285 | 814 | 47 | 13 | ||||||||||||||||||||||||||||||
Total | $ | 9,281,034 | $ | 9,095,057 | $ | 120,997 | $ | 8,410 | $ | 56,570 | $ | 9,555,511 | $ | 9,414,807 | $ | 77,481 | $ | 14,732 | $ | 48,491 | ||||||||||||||||||||
(1) | Amounts exclude accrued interest. |
Maturity by Period | Maturity by Period | |||||||||||||||||||||||||||||||||||||||
Total | Less Than One Year | One Year to Three Years | Four Years to Five Years | After Five Years | Total | Less Than One Year | One Year to Three Years | Four Years to Five Years | After Five Years | |||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Commitment to extend credit: | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 951,334 | $ | 695,927 | $ | 160,214 | $ | 7,333 | $ | 87,860 | $ | 917,055 | $ | 614,928 | $ | 168,309 | $ | 5,196 | $ | 128,622 | ||||||||||||||||||||
SBA | 410 | 60 | 4 | - | 346 | 396 | 362 | 4 | - | 30 | ||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 253,648 | 48,533 | 86,165 | 100,747 | 18,203 | |||||||||||||||||||||||||||||||||||
Commercial real estate/ | 247,308 | 42,254 | 74,850 | 121,004 | 9,200 | |||||||||||||||||||||||||||||||||||
Construction | 80,342 | 63,445 | 13,697 | - | 3,200 | 52,545 | 35,972 | 13,373 | - | 3,200 | ||||||||||||||||||||||||||||||
SFR Mortgage | 6,998 | 5,006 | - | - | 1,992 | 5,540 | 3,500 | - | - | 2,040 | ||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness (1) | 151,947 | 81,488 | 70,254 | 205 | - | 208,932 | 113,190 | 94,949 | 393 | 400 | ||||||||||||||||||||||||||||||
Consumer and other loans | 139,059 | 17,430 | 7,036 | 4,894 | 109,699 | 123,928 | 14,114 | 6,985 | 5,018 | 97,811 | ||||||||||||||||||||||||||||||
Total commitment to extend credit | 1,583,738 | 911,889 | 337,370 | 113,179 | 221,300 | 1,555,704 | 824,320 | 358,470 | 131,611 | 241,303 | ||||||||||||||||||||||||||||||
Obligations under letters of credit | 50,244 | 41,383 | 8,613 | 248 | - | 50,159 | 45,415 | 4,496 | 248 | - | ||||||||||||||||||||||||||||||
Total | $ | 1,633,982 | $ | 953,272 | $ | 345,983 | $ | 113,427 | $ | 221,300 | $ | 1,605,863 | $ | 869,735 | $ | 362,966 | $ | 131,859 | $ | 241,303 | ||||||||||||||||||||
(1) | Total commitments to extend credit to agribusiness were |
September 30, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | Minimum Required Plus Capital Conservation Buffer | 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% | 12.23% | 12.09% | 10.98% | 10.90% | 4.00% | 4.00% | 5.00% | 11.60% | 11.44% | 12.33% | 12.19% | |||||||||||||||||||||||||||||||||||||||
Common equity Tier I capital ratio | 4.50% | 6.50% | 14.64% | 14.75% | 13.04% | 13.22% | ||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio | 4.50% | 7.00% | 6.50% | 14.13% | 14.23% | 14.83% | 14.94% | |||||||||||||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio | 6.00% | 8.00% | 14.93% | 14.75% | 13.32% | 13.22% | 6.00% | 8.50% | 8.00% | 14.42% | 14.23% | 15.11% | 14.94% | |||||||||||||||||||||||||||||||||||||||
Total risk-based capital ratio | 8.00% | 10.00% | 15.83% | 15.65% | 14.13% | 14.03% | 8.00% | 10.50% | 10.00% | 15.49% | 15.30% | 16.00% | 15.83% |
Equity Tier 1 Ratio | Tier 1 Capital Ratio | Total Capital Ratio | Leverage Ratio | |||||||||||||
Regulatory minimum ratio | 4.5% | 6.0% | 8.0% | 4.0% | ||||||||||||
Plus: Capital conservation buffer requirement | 2.5% | 2.5% | 2.5% | - | ||||||||||||
Regulatory minimum ratio plus capital conservation buffer | 7.0% | 8.5% | 10.5% | 4.0% |
For the Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
(Dollars in thousands) | ||||||||
Average cash and cash equivalents | $ | 237,244 | $ | 237,817 | ||||
Percentage of total average assets | 2.10% | 2.69% | ||||||
Net cash provided by operating activities | $ | 147,410 | $ | 116,564 | ||||
Net cash provided by investing activities | 538,256 | 874,202 | ||||||
Net cash used in financing activities | (412,066) | (940,668) | ||||||
Net increase in cash and cash equivalents | $ | 273,600 | $ | 50,098 | ||||
For the Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Dollars in thousands) | ||||||||
Average cash and cash equivalents | $ | 409,885 | $ | 186,473 | ||||
Percentage of total average assets | 3.60% | 1.63% | ||||||
Net cash provided by operating activities | $ | 75,527 | $ | 54,487 | ||||
Net cash provided by investing activities | 205,990 | 253,841 | ||||||
Net cash provided by (used in) financing activities | 238,704 | (300,062 | ) | |||||
Net increase in cash and cash equivalents | $ | 520,221 | $ | 8,266 | ||||
Estimated Net Interest Income Sensitivity (1) | Estimated Net Interest Income Sensitivity (1) | Estimated Net Interest Income Sensitivity (1) | ||||||||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Interest Rate Scenario | 12-month Period | 24-month Period(Cumulative) | Interest Rate Scenario | 12-month Period | 24-month Period(Cumulative) | 12-month Period | 24-month Period(Cumulative) | Interest Rate Scenario | 12-month Period | 24-month Period(Cumulative) | ||||||||||||||||||||||||||||||
+ 200 basis points | 4.50% | 8.70% | + 200 basis points | 3.80% | 7.40% | 5.20% | 10.01% | + 200 basis points | 5.20% | 10.00% | ||||||||||||||||||||||||||||||
- 100 basis points | -2.30% | -5.00% | - 200 basis points | -5.29% | -10.26% | -0.50% | -1.60% | - 100 basis points | -2.10% | -4.60% |
(1) | Percentage change from |
Instantaneous Rate Change | September 30, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | ||||||||||||||||||||
100 bp decrease in interest rates | -19.6% | -10.2% | -28.3% | -17.5% | ||||||||||||||||||||
100 bp increase in interest rates | 13.3% | 5.8% | 19.5% | 14.2% | ||||||||||||||||||||
200 bp increase in interest rates | 23.3% | 10.3% | 34.5% | 25.5% | ||||||||||||||||||||
300 bp increase in interest rates | 31.0% | 13.8% | 39.7% | 30.0% | ||||||||||||||||||||
400 bp increase in interest rates | 37.1% | 16.6% | 46.8% | 36.2% |
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 | |||||||||
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 | |||||||||||||||||
January 1 - 31, 2020 | - | $ | - | 9,529,435 | ||||||||||||||||
February 1 - 29, 2020 | 351,100 | $ | 19.59 | 9,178,335 | ||||||||||||||||
March 1 - 31, 2020 | 4,593,190 | $ | 18.46 | 4,585,145 | ||||||||||||||||
Total | 4,944,290 | $ | 18.54 | 4,585,145 | ||||||||||||||||
Exhibit No. | Description of Exhibits | |||
3.1 | ||||
10.1 | ||||
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 |
* | Filed herewith |
** | Furnished herewith |
† | Indicates a management contract or compensation plan. |
(1) | Incorporated herein by reference to Exhibits 3.1 to our Form 8-K filed with the SEC on January 23, 2020. |
(2) | Incorporated herein by reference to Exhibit 10.1 to our Form 8-K filed with the SEC on |
CVB FINANCIAL CORP. | ||||
(Registrant) | ||||
Date: | ||||
/s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||
Executive Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |