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. | 36 | |||||||||
37 | ||||||||||
38 | ||||||||||
40 | ||||||||||
47 | ||||||||||
ITEM 3. | ||||||||||
ITEM 4. | ||||||||||
PART II – | ||||||||||
ITEM 1. | ||||||||||
ITEM 1A. | ||||||||||
ITEM 2. | ||||||||||
ITEM 3. | ||||||||||
ITEM 4. | ||||||||||
ITEM 5. | ||||||||||
ITEM 6. | ||||||||||
ITEM 1. | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
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 | |||||
March 31, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 139,713 | $ | 122,305 | ||||
Interest-earning balances due from Federal Reserve | 1,385,586 | 1,835,855 | ||||||
Total cash and cash equivalents | 1,525,299 | 1,958,160 | ||||||
Interest-earning balances due from depository institutions | 27,748 | 43,563 | ||||||
Investment securities available-for-sale, $2,797,990 at March 31, 2021, and $2,344,174 at December 31, 2020) | 2,812,348 | 2,398,923 | ||||||
Investment securities held-to-maturity 2021, and $604,223 at December 31, 2020) | 1,086,984 | 578,626 | ||||||
Total investment securities | 3,899,332 | 2,977,549 | ||||||
Investment in stock of Federal Home Loan Bank (FHLB) | 17,688 | 17,688 | ||||||
Loans and lease finance receivables | 8,293,057 | 8,348,808 | ||||||
Allowance for credit losses | (71,805 | ) | (93,692 | ) | ||||
Net loans and lease finance receivables | 8,221,252 | 8,255,116 | ||||||
Premises and equipment, net | 49,735 | 51,144 | ||||||
Bank owned life insurance (BOLI) | 223,905 | 226,818 | ||||||
Accrued interest receivable | 34,825 | 31,306 | ||||||
Intangibles | 31,467 | 33,634 | ||||||
Goodwill | 663,707 | 663,707 | ||||||
Other real estate owned (OREO) | 1,575 | 3,392 | ||||||
Income taxes | 15,372 | 29,540 | ||||||
Other assets | 128,533 | 127,697 | ||||||
Total assets | $ | 14,840,438 | $ | 14,419,314 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 7,577,839 | $ | 7,455,387 | ||||
Interest-bearing | 4,500,816 | 4,281,114 | ||||||
Total deposits | 12,078,655 | 11,736,501 | ||||||
Customer repurchase agreements | 506,346 | 439,406 | ||||||
Other borrowings | 5,000 | 5,000 | ||||||
Deferred compensation | 22,023 | 21,611 | ||||||
Junior subordinated debentures | 25,774 | 25,774 | ||||||
Payable for securities purchased | 80,973 | 60,113 | ||||||
Other liabilities | 101,001 | 122,919 | ||||||
Total liabilities | 12,819,772 | 12,411,324 | ||||||
Commitments and Contingencies | ||||||||
Stockholders’ Equity | ||||||||
Common stock, authorized, 225,000,000 shares without par; issued and outstanding 135,919,625 at March 31, 2021, and 135,600,501 at December 31, 2020 | 1,213,451 | 1,211,780 | ||||||
Retained earnings | 800,259 | 760,861 | ||||||
Accumulated other comprehensive income, net of tax | 6,956 | 35,349 | ||||||
Total stockholders’ equity | 2,020,666 | 2,007,990 | ||||||
Total liabilities and stockholders’ equity | $ | 14,840,438 | $ | 14,419,314 | ||||
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 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Interest income: | ||||||||
Loans and leases, including fees | $ | 91,795 | $ | 92,117 | ||||
Investment securities: | ||||||||
Investment securities available-for-sale | 9,159 | 10,049 | ||||||
Investment securities held-to-maturity | 3,940 | 3,998 | ||||||
Total investment income | 13,099 | 14,047 | ||||||
Dividends from FHLB stock | 217 | 332 | ||||||
Interest-earning deposits with other institutions | 413 | 613 | ||||||
Total interest income | 105,524 | 107,109 | ||||||
Interest expense: | ||||||||
Deposits | 1,812 | 4,124 | ||||||
Borrowings and customer repurchase agreements | 141 | 479 | ||||||
Junior subordinated debentures | 103 | 200 | ||||||
Total interest expense | 2,056 | 4,803 | ||||||
Net interest income before (recapture of) provision for credit losses | 103,468 | 102,306 | ||||||
(Recapture of) provision for credit losses | (19,500 | ) | 12,000 | |||||
Net interest income after (recapture of) provision for credit losses | 122,968 | 90,306 | ||||||
Noninterest income: | ||||||||
Service charges on deposit accounts | 3,985 | 4,776 | ||||||
Trust and investment services | 2,611 | 2,420 | ||||||
Bankcard services | 350 | 577 | ||||||
BOLI income | 4,624 | 2,059 | ||||||
Gain on OREO, net | 429 | 10 | ||||||
Other | 1,682 | 1,798 | ||||||
Total noninterest income | 13,681 | 11,640 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 29,706 | 30,877 | ||||||
Occupancy and equipment | 4,863 | 4,837 | ||||||
Professional services | 2,168 | 2,256 | ||||||
Computer software expense | 2,844 | 2,816 | ||||||
Marketing and promotion | 725 | 1,555 | ||||||
Amortization of intangible assets | 2,167 | 2,445 | ||||||
Other | 4,690 | 3,855 | ||||||
Total noninterest expense | 47,163 | 48,641 | ||||||
Earnings before income taxes | 89,486 | 53,305 | ||||||
Income taxes | 25,593 | 15,325 | ||||||
Net earnings | $ | 63,893 | $ | 37,980 | ||||
Other comprehensive (loss) income: | ||||||||
Unrealized (loss) gain on securities arising during the period, before tax | $ | (40,310 | ) | $ | 36,618 | |||
Less: Income tax benefit (expense) related to items of other comprehensive income | 11,917 | (10,826 | ) | |||||
Other comprehensive (loss) income, net of tax | (28,393 | ) | 25,792 | |||||
Comprehensive income | $ | 35,500 | $ | 63,772 | ||||
Basic earnings per common share | $ | 0.47 | $ | 0.27 | ||||
Diluted earnings per common share | $ | 0.47 | $ | 0.27 |
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 | ) | $ | ||||||||||||||
Common Shares Outstanding | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
Balance, January 1, 2021 | 135,601 | $ | 1,211,780 | $ | 760,861 | $ | 35,349 | $ | 2,007,990 | |||||||||||
Repurchase of common stock | (22 | ) | (502 | ) | - | - | (502 | ) | ||||||||||||
Exercise of stock options | 40 | 891 | - | - | 891 | |||||||||||||||
Shares issued pursuant to stock-based compensation plan | 301 | 1,282 | - | - | 1,282 | |||||||||||||||
Cash dividends declared on common stock ($0.18 per share) | - | - | (24,495 | ) | - | (24,495 | ) | |||||||||||||
Net earnings | - | - | 63,893 | - | 63,893 | |||||||||||||||
Other comprehensive loss | - | - | - | (28,393 | ) | (28,393 | ) | |||||||||||||
Balance, March 31, 2021 | 135,920 | $ | 1,213,451 | $ | 800,259 | $ | 6,956 | $ | 2,020,666 | |||||||||||
Balance, January 1, 2020 | 140,102 | $ | 1,298,792 | $ | 682,692 | $ | 12,614 | $ | 1,994,098 | |||||||||||
Cumulative adjustment upon adoption of ASU 2016-13 | 0 | 0 | (1,325 | ) | 0 | (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, 2020 | 135,511 | $ | 1,208,049 | $ | 694,931 | $ | 38,406 | $ | 1,941,386 | |||||||||||
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, | ||||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities | ||||||||
Interest and dividends received | $ | 95,475 | $ | 105,673 | ||||
Service charges and other fees received | 8,636 | 9,644 | ||||||
Interest paid | (1,859 | ) | (4,589 | ) | ||||
Net cash paid to vendors, employees and others | (56,221 | ) | (35,201 | ) | ||||
Income taxes | 907 | 0 | ||||||
Net cash provided by operating activities | 46,938 | 75,527 | ||||||
Cash Flows from Investing Activities | ||||||||
Net change in interest-earning balances from depository institutions | 15,815 | (20,868 | ) | |||||
Proceeds from repayment of investment securities available-for-sale | 224,104 | 92,519 | ||||||
Proceeds from maturity of investment securities available-for-sale | 0 | 2,390 | ||||||
Purchases of investment securities available-for-sale | (661,857 | ) | 0 | |||||
Proceeds from repayment and maturity of investment securities held-to-maturity | 35,766 | 33,297 | ||||||
Purchases of investment securities held-to-maturity | (545,681 | ) | (1,509 | ) | ||||
Net increase in equity investments | (4,961 | ) | (2,985 | ) | ||||
Net decrease in loan and lease finance receivables | 64,167 | 103,890 | ||||||
Proceeds from sale of building, net of selling costs | 1,157 | 0 | ||||||
Purchase of premises and equipment | (662 | ) | (882 | ) | ||||
Proceeds from BOLI death benefit | 5,062 | 138 | ||||||
Proceeds from sales of other real estate owned | 2,216 | 0 | ||||||
Net cash (used in) provided by investing activities | (864,874 | ) | 205,990 | |||||
Cash Flows from Financing Activities | ||||||||
Net increase in other deposits | 336,518 | 403,546 | ||||||
Net increase in time deposits | 5,636 | 5,130 | ||||||
Net increase (decrease) in customer repurchase agreements | 66,940 | (59,744 | ) | |||||
Cash dividends on common stock | (24,408 | ) | (25,252 | ) | ||||
Repurchase of common stock | (502 | ) | (85,018 | ) | ||||
Proceeds from exercise of stock options | 891 | 42 | ||||||
Net cash provided by financing activities | 385,075 | 238,704 | ||||||
Net (decrease) increase in cash and cash equivalents | (432,861 | ) | 520,221 | |||||
Cash and cash equivalents, beginning of period | 1,958,160 | 185,518 | ||||||
Cash and cash equivalents, end of period | $ | 1,525,299 | $ | 705,739 | ||||
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 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities | ||||||||
Net earnings | $ | 63,893 | $ | 37,980 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Gain on sale of building, net | (189 | ) | 0 | |||||
Gain on sale of other real estate owned | (399 | ) | 0 | |||||
Increase in BOLI | (4,624 | ) | (1,344 | ) | ||||
Net amortization of premiums and discounts on investment securities | 6,411 | 2,620 | ||||||
Accretion of discount for acquired loans, net | (4,028 | ) | (4,776 | ) | ||||
(Recapture of) provision for credit losses | (19,500 | ) | 12,000 | |||||
Stock-based compensation | 1,282 | 1,617 | ||||||
Depreciation and amortization, net | (3,526 | ) | 5,176 | |||||
Change in other assets and liabilities | 7,618 | 22,254 | ||||||
Total adjustments | (16,955 | ) | 37,547 | |||||
Net cash provided by operating activities | $ | 46,938 | $ | 75,527 | ||||
Supplemental Disclosure of Non-cash Investing Activities | ||||||||
Securities purchased and not settled | $ | 80,973 | $ | 0 |
1. | BUSINESS |
2. | BASIS OF PRESENTATION |
3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
4. | INVESTMENT SECURITIES |
March 31, 2020 | ||||||||||||||||||||
Amortized Cost | Gross Holding Gain | Gross Holding Loss | ||||||||||||||||||
(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% | |||||||||||
March 31, 2021 | ||||||||||||||||||||
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 | $ | 2,175,414 | $ | 38,333 | $ | (22,409) | $ | 2,191,338 | 77.92% | |||||||||||
CMO/REMIC | 592,915 | 4,072 | (6,821) | 590,166 | 20.99% | |||||||||||||||
Municipal bonds | 28,703 | 1,183 | 0- | 29,886 | 1.06% | |||||||||||||||
Other securities | 958 | 0- | 0- | 958 | 0.03% | |||||||||||||||
Total available-for-sale | $ | 2,797,990 | $ | 43,588 | $ | (29,230) | $ | 2,812,348 | 100.00% | |||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 601,142 | $ | 3,860 | $ | (016,289 | ) | $ | 588,713 | 55.30% | ||||||||||
Mortgage-backed securities | 135,137 | 5,348 | (0255 | ) | 140,230 | 12.43% | ||||||||||||||
CMO/REMIC | 133,556 | 2,832 | 0- | 136,388 | 12.29% | |||||||||||||||
Municipal bonds | 217,149 | 5,095 | (2,094) | 220,150 | 19.98% | |||||||||||||||
Total held-to-maturity | $ | 1,086,984 | $ | 17,135 | $ | (18,638) | $ | 1,085,481 | 100.00% | |||||||||||
December 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 | $ | 1,857,030 | $ | 48,006 | $ | (101) | $ | 1,904,935 | 79.41% | |||||||||||
CMO/REMIC | 457,548 | 5,515 | (249) | 462,814 | 19.29% | |||||||||||||||
Municipal bonds | 28,707 | 1,578 | 0 | 30,285 | 1.26% | |||||||||||||||
Other securities | 889 | 0- | 0- | 889 | 0.04% | |||||||||||||||
Total available-for-sale | $ | 2,344,174 | $ | 55,099 | $ | (350) | $ | 2,398,923 | 100.00% | |||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 98,663 | $ | 5,877 | $ | 0 | $ | 104,540 | 17.05% | |||||||||||
Mortgage-backed securities | 146,382 | 7,644 | (32) | 153,994 | 25.30% | |||||||||||||||
CMO/REMIC | 145,309 | 5,202 | 0 | 150,511 | 25.11% | |||||||||||||||
Municipal bonds | 188,272 | 6,980 | (74) | 195,178 | 32.54% | |||||||||||||||
Total held-to-maturity | $ | 578,626 | $ | 25,703 | $ | (106) | $ | 604,223 | 100.00% | |||||||||||
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 | $ | |||||
Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
(Dollars in thousands) | ||||||||
Investment securities available-for-sale: | ||||||||
Taxable | $ | 8,968 | $ | 9,825 | ||||
Tax-advantaged | 191 | 224 | ||||||
Total interest income from available-for-sale | 9,159 | 10,049 | ||||||
Investment securities held-to-maturity: | ||||||||
Taxable | 2,811 | 2,698 | ||||||
Tax-advantaged | 1,129 | 1,300 | ||||||
Total interest income from held-to-maturity | 3,940 | 3,998 | ||||||
Total interest income from investment securities | $ | 13,099 | $ | 14,047 | ||||
March 31, 2021 | ||||||||||||||||||||||||
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 | $ | 1,327,126 | $ | (22,409 | ) | $ | 0- | $ | 0- | $ | 1,327,126 | $ | (22,409 | ) | ||||||||||
CMO/REMIC | 422,765 | (6,821 | ) | 0- | 0- | 422,765 | (6,821 | ) | ||||||||||||||||
Municipal bonds | 0- | 0- | 0- | 0- | 0- | 0- | ||||||||||||||||||
Total available-for-sale | $ | 1,749,891 | $ | (29,230 | ) | $ | 0- | $ | 0- | $ | 1,749,891 | $ | (29,230 | ) | ||||||||||
December 31, 2020 | ||||||||||||||||||||||||
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 | $ | 72,219 | $ | (101 | ) | $ | 0 | $ | 0 | $ | 72,219 | $ | (101 | ) | ||||||||||
CMO/REMIC | 96,974 | (249 | ) | 0 | 0 | 96,974 | (249 | ) | ||||||||||||||||
Municipal bonds | 0- | 0- | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total available-for-sale | $ | 169,193 | $ | (350 | ) | $ | 0 | $ | 0 | $ | 169,193 | $ | (350 | ) | ||||||||||
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 | $ | $ | (711 | ) | $ | $ | (937 | ) | $ | $ | (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 | $ | ) | $ | 215,579 | $ | ) | $ | 285,829 | $ | ) | ||||||||||||
March 31, 2020 | ||||||||||||||||
Available-for-sale | Held-to-maturity | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Due in one year or less | $ | 13,043 | $ | 13,160 | $ | 768 | $ | 788 | ||||||||
Due after one year through five years | 1,376,413 | 1,427,373 | 358,973 | 367,734 | ||||||||||||
Due after five years through ten years | 176,690 | 182,573 | 103,004 | 104,787 | ||||||||||||
Due after ten years | 55,090 | 56,649 | 179,510 | 184,510 | ||||||||||||
Total investment securities | $ | $ | $ | $ | ||||||||||||
March 31, 2021 | ||||||||||||||||
Available-for-sale | Held-to-maturity | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Due in one year or less | $ | 4,821 | $ | 4,920 | $ | 4,054 | $ | 4,086 | ||||||||
Due after one year through five years | 2,368,827 | 2,383,641 | 280,057 | 288,032 | ||||||||||||
Due after five years through ten years | 393,699 | 392,160 | 133,106 | 134,081 | ||||||||||||
Due after ten years | 30,643 | 31,627 | 669,767 | 659,282 | ||||||||||||
Total investment securities | $ | 2,797,990 | $ | 2,812,348 | $ | 1,086,984 | $ | 1,085,481 | ||||||||
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 | ||||
March 31, 2021 | December 31, 2020 | |||||||
(Dollars in thousands) | ||||||||
Commercial real estate | $ | 5,596,781 | $ | 5,501,509 | ||||
Construction | 96,356 | 85,145 | ||||||
SBA | 307,727 | 303,896 | ||||||
SBA - Paycheck Protection Program (PPP) | 897,724 | 0882,986 | ||||||
Commercial and industrial | 753,708 | 812,062 | ||||||
Dairy & livestock and agribusiness | 261,088 | 361,146 | ||||||
Municipal lease finance receivables | 42,349 | 45,547 | ||||||
SFR mortgage | 255,400 | 270,511 | ||||||
Consumer and other loans | 81,924 | 86,006 | ||||||
Total loans, at amortized cost | 8,293,057 | 8,348,808 | ||||||
Less: Allowance for credit losses | (71,805 | ) | (93,692 | ) | ||||
Total loans and lease finance receivables, net | $ | 8,221,252 | $ | 8,255,116 | ||||
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, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 282,950 | $ | 981,750 | $ | 678,640 | $ | 588,405 | $ | 569,006 | $ | 2,063,996 | $ | 180,542 | $ | 35,794 | $ | 5,381,083 | ||||||||||||||||||
Special Mention | 10,420 | 9,254 | 11,441 | 25,826 | 50,811 | 66,570 | 4,609 | 9,890 | 188,821 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 479 | 2,156 | 9,064 | 14,347 | 500 | 331 | 26,877 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Commercial real estate loans: | $ | 293,370 | $ | 991,004 | $ | 690,560 | $ | 616,387 | $ | 628,881 | $ | 2,144,913 | $ | 185,651 | $ | 46,015 | $ | 5,596,781 | ||||||||||||||||||
Construction loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 876 | $ | 19,034 | $ | 7,974 | $ | 6,380 | $ | 2,257 | $ | 4 | $ | 52,058 | $ | 0 | $ | 88,583 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 7,773 | 0 | 0 | 0 | 0 | 7,773 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Construction loans: | $ | 876 | $ | 19,034 | $ | 7,974 | $ | 14,153 | $ | 2,257 | $ | 4 | $ | 52,058 | $ | 0 | $ | 96,356 | ||||||||||||||||||
SBA loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 20,599 | $ | 44,593 | $ | 12,742 | $ | 43,163 | $ | 55,759 | $ | 104,385 | $ | 0 | $ | 2,976 | $ | 284,217 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 0 | 5,408 | 6,864 | 0 | 0 | 12,272 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 876 | 5,145 | 5,217 | 0 | 0 | 11,238 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total SBA loans: | $ | 20,599 | $ | 44,593 | $ | 12,742 | $ | 44,039 | $ | 66,312 | $ | 116,466 | $ | 0 | $ | 2,976 | $ | 307,727 | ||||||||||||||||||
SBA - PPP loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 314,940 | $ | 581,281 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 896,221 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Substandard | 0 | 1,503 | 0 | 0 | 0 | 0 | 0 | 0 | 1,503 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total SBA - PPP loans: | $ | 314,940 | $ | 582,784 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 897,724 | ||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 31,474 | $ | 100,585 | $ | 147,772 | $ | 59,414 | $ | 50,335 | $ | 97,792 | $ | 219,271 | $ | 6,303 | $ | 712,946 | ||||||||||||||||||
Special Mention | 486 | 1,781 | 1,881 | 1,732 | 856 | 4,798 | 10,485 | 247 | 22,266 | |||||||||||||||||||||||||||
Substandard | 2,643 | 1,611 | 808 | 3,467 | 2,039 | 355 | 6,183 | 1,390 | 18,496 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Commercial and industrial | $ | 34,603 | $ | 103,977 | $ | 150,461 | $ | 64,613 | $ | 53,230 | $ | 102,945 | $ | 235,939 | $ | 7,940 | $ | 753,708 | ||||||||||||||||||
Origination Year | Revolving loans amortized cost basis | Revolving loans converted to term loans | Origination Year | Revolving loans amortized cost basis | Revolving loans converted to term loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving loans amortized cost basis | Revolving loans converted to term loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (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 | $ | 0 | $ | 2,216 | $ | 1,660 | $ | 1,102 | $ | 256 | $ | 391 | $ | 227,667 | $ | 387 | $ | 233,679 | ||||||||||||||||||||||||||||||||||||
Special Mention | - | - | 166 | 722 | - | - | 22,150 | 3,686 | 26,724 | 0 | 0 | 0 | 347 | 0 | 1,684 | 11,029 | 7,342 | 20,402 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | - | - | 882 | - | 4,016 | - | 4,625 | 12,660 | 22,183 | 0 | 0 | 0 | 259 | 0 | 0 | 0 | 6,748 | 7,007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Dairy & livestock and agribusiness loans: | $ | 78 | $ | 2,945 | $ | 2,988 | $ | 8,831 | $ | 6,847 | $ | 14,655 | $ | 219,424 | $ | 16,346 | $ | 272,114 | $ | 0 | $ | 2,216 | $ | 1,660 | $ | 1,708 | $ | 256 | $ | 2,075 | $ | 238,696 | $ | 14,477 | $ | 261,088 | ||||||||||||||||||||||||||||||||||||
Municipal lease finance receivables loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 147 | $ | - | $ | 3,081 | $ | 10,961 | $ | 7,912 | $ | 28,739 | $ | - | $ | - | $ | 50,840 | $ | 0 | $ | 8,217 | $ | 0 | $ | 2,556 | $ | 10,248 | $ | 20,916 | $ | 0 | $ | 0 | $ | 41,937 | ||||||||||||||||||||||||||||||||||||
Special Mention | - | - | - | - | - | 447 | - | - | 447 | 0 | 0 | 0 | 0 | 0 | 412 | 0 | 0 | 412 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Municipal lease finance receivables loans: | $ | 147 | $ | - | $ | 3,081 | $ | 10,961 | $ | 7,912 | $ | 29,186 | $ | - | $ | - | $ | 51,287 | $ | 0 | $ | 8,217 | $ | 0 | $ | 2,556 | $ | 10,248 | $ | 21,328 | $ | 0 | $ | 0 | $ | 42,349 | ||||||||||||||||||||||||||||||||||||
SFR mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 7,745 | $ | 61,021 | $ | 53,148 | $ | 27,117 | $ | 20,857 | $ | 81,721 | $ | 2 | $ | 0 | $ | 251,611 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | 0 | 0 | 0 | 0 | 0 | 195 | 0 | 0 | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 3,168 | 0 | 426 | 3,594 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total SFR mortgage loans: | $ | 7,745 | $ | 61,021 | $ | 53,148 | $ | 27,117 | $ | 20,857 | $ | 85,084 | $ | 2 | $ | 426 | $ | 255,400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 2,618 | $ | 7,558 | $ | 1,833 | $ | 778 | $ | 878 | $ | 2,157 | $ | 61,735 | $ | 1,791 | $ | 79,348 | ||||||||||||||||||||||||||||||||||||
Special Mention | - | - | - | - | 80 | 148 | 609 | - | 837 | 975 | 0 | 0 | 0 | 0 | 90 | 516 | 0 | 1,581 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | - | - | 5 | - | - | 179 | 148 | 420 | 752 | 0 | 0 | 0 | 0 | 0 | 170 | 149 | 676 | 995 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Consumer and other loans: | $ | 1,647 | $ | 3,197 | $ | 1,165 | $ | 1,372 | $ | 2,174 | $ | 2,939 | $ | 99,710 | $ | 2,002 | $ | 114,206 | $ | 3,593 | $ | 7,558 | $ | 1,833 | $ | 778 | $ | 878 | $ | 2,417 | $ | 62,400 | $ | 2,467 | $ | 81,924 | ||||||||||||||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 227,961 | $ | 991,064 | $ | 929,806 | $ | 966,220 | $ | 762,602 | $ | 2,344,233 | $ | 961,714 | $ | 34,641 | $ | 7,218,241 | $ | 661,202 | $ | 1,806,255 | $ | 903,769 | $ | 728,915 | $ | 709,596 | $ | 2,371,362 | $ | 741,275 | $ | 47,251 | $ | 7,969,625 | ||||||||||||||||||||||||||||||||||||
Special Mention | 1,066 | 5,600 | 16,677 | 20,077 | 9,107 | 66,865 | 38,814 | 6,128 | 164,334 | 11,881 | 11,035 | 13,322 | 35,678 | 57,075 | 80,613 | 26,639 | 17,479 | 253,722 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | - | 143 | 8,262 | 10,882 | 7,572 | 23,975 | 16,279 | 16,464 | 83,577 | 2,643 | 3,114 | 1,287 | 6,758 | 16,248 | 23,257 | 6,832 | 9,571 | 69,710 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful & Loss | - | - | - | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Gross loans: | $ | 229,027 | $ | 996,807 | $ | 954,745 | $ | 997,179 | $ | 779,281 | $ | 2,435,073 | $ | 1,016,807 | $ | 57,233 | $ | 7,466,152 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Loans: | $ | 675,726 | $ | 1,820,404 | $ | 918,378 | $ | 771,351 | $ | 782,919 | $ | 2,475,232 | $ | 774,746 | $ | 74,301 | $ | 8,293,057 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination Year | Revolving loans amortized cost basis | Revolving loans converted to term loans | ||||||||||||||||||||||||||||||||||
December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 979,499 | $ | 691,091 | $ | 607,753 | $ | 617,640 | $ | 550,105 | $ | 1,646,876 | $ | 192,583 | $ | 24,548 | $ | 5,310,095 | ||||||||||||||||||
Special Mention | 9,332 | 7,162 | 30,049 | 43,870 | 17,398 | 49,840 | 5,720 | 994 | 164,365 | |||||||||||||||||||||||||||
Substandard | 0 | 491 | 2,157 | 7,382 | 2,528 | 13,790 | 360 | 341 | 27,049 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Commercial real estate loans: | $ | 988,831 | $ | 698,744 | $ | 639,959 | $ | 668,892 | $ | 570,031 | $ | 1,710,506 | $ | 198,663 | $ | 25,883 | $ | 5,501,509 | ||||||||||||||||||
Construction loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 14,511 | $ | 9,350 | $ | 14,945 | $ | 2,258 | $ | 0 | $ | 4 | $ | 44,077 | $ | 0 | $ | 85,145 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Construction loans: | $ | 14,511 | $ | 9,350 | $ | 14,945 | $ | 2,258 | $ | 0 | $ | 4 | $ | 44,077 | $ | 0 | $ | 85,145 | ||||||||||||||||||
SBA loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 47,901 | $ | 12,821 | $ | 44,950 | $ | 58,839 | $ | 26,136 | $ | 86,085 | $ | 0 | $ | 2,976 | $ | 279,708 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 5,446 | 1,336 | 5,648 | 0 | 0 | 12,430 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 904 | 5,503 | 1,554 | 3,797 | 0 | 0 | 11,758 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total SBA loans: | $ | 47,901 | $ | 12,821 | $ | 45,854 | $ | 69,788 | $ | 29,026 | $ | 95,530 | $ | 0 | $ | 2,976 | $ | 303,896 | ||||||||||||||||||
SBA - PPP loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 882,986 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 882,986 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total SBA - PPP loans: | $ | 882,986 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 882,986 | ||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 104,478 | $ | 168,050 | $ | 62,453 | $ | 56,043 | $ | 32,149 | $ | 76,019 | $ | 257,250 | $ | 6,058 | $ | 762,500 | ||||||||||||||||||
Special Mention | 1,995 | 1,081 | 1,892 | 1,028 | 95 | 4,882 | 17,395 | 1,132 | 29,500 | |||||||||||||||||||||||||||
Substandard | 4,346 | 860 | 3,996 | 2,282 | 285 | 94 | 6,677 | 1,522 | 20,062 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Commercial and industrial loans: | $ | 110,819 | $ | 169,991 | $ | 68,341 | $ | 59,353 | $ | 32,529 | $ | 80,995 | $ | 281,322 | $ | 8,712 | $ | 812,062 | ||||||||||||||||||
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 | ||||||||||||
Origination Year | Revolving loans amortized cost basis | Revolving loans converted to term loans | ||||||||||||||||||||||||||||||||||
December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 1,041 | $ | 1,765 | $ | 1,199 | $ | 5,680 | $ | 120 | $ | 320 | $ | 319,211 | $ | 363 | $ | 329,699 | ||||||||||||||||||
Special Mention | 878 | 0 | 364 | 0 | 0 | 0 | 13,255 | 1,511 | 16,008 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 784 | 693 | 2,285 | 0 | 0 | 11,677 | 15,439 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Dairy & livestock and agribusiness loans: | $ | 1,919 | $ | 1,765 | $ | 2,347 | $ | 6,373 | $ | 2,405 | $ | 320 | $ | 332,466 | $ | 13,551 | $ | 361,146 | ||||||||||||||||||
Municipal lease finance receivables loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 8,478 | $ | 0 | $ | 2,556 | $ | 10,249 | $ | 3,586 | $ | 20,266 | $ | 0 | $ | 0 | $ | 45,135 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 0 | 0 | 412 | 0 | 0 | 412 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Municipal lease finance receivables loans: | $ | 8,478 | $ | 0 | $ | 2,556 | $ | 10,249 | $ | 3,586 | $ | 20,678 | $ | 0 | $ | 0 | $ | 45,547 | ||||||||||||||||||
SFR mortgage loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 65,463 | $ | 59,596 | $ | 29,142 | $ | 22,452 | $ | 27,192 | $ | 62,593 | $ | 3 | $ | 0 | $ | 266,441 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 0 | 0 | 452 | 0 | 0 | 452 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 229 | 2,957 | 0 | 432 | 3,618 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total SFR mortgage loans: | $ | 65,463 | $ | 59,596 | $ | 29,142 | $ | 22,452 | $ | 27,421 | $ | 66,002 | $ | 3 | $ | 432 | $ | 270,511 | ||||||||||||||||||
Consumer and other loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 8,557 | $ | 2,077 | $ | 871 | $ | 969 | $ | 1,586 | $ | 961 | $ | 67,774 | $ | 1,688 | $ | 84,483 | ||||||||||||||||||
Special Mention | 0 | 0 | 0 | 0 | 0 | 91 | 517 | 22 | 630 | |||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 172 | 0 | 721 | 893 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Consumer and other loans: | $ | 8,557 | $ | 2,077 | $ | 871 | $ | 969 | $ | 1,586 | $ | 1,224 | $ | 68,291 | $ | 2,431 | $ | 86,006 | ||||||||||||||||||
Total Loans: | ||||||||||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 2,112,914 | $ | 944,750 | $ | 763,869 | $ | 774,130 | $ | 640,874 | $ | 1,893,124 | $ | 880,898 | $ | 35,633 | $ | 8,046,192 | ||||||||||||||||||
Special Mention | 12,205 | 8,243 | 32,305 | 50,344 | 18,829 | 61,325 | 36,887 | 3,659 | 223,797 | |||||||||||||||||||||||||||
Substandard | 4,346 | 1,351 | 7,841 | 15,860 | 6,881 | 20,810 | 7,037 | 14,693 | 78,819 | |||||||||||||||||||||||||||
Doubtful & Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Loans: | $ | 2,129,465 | $ | 954,344 | $ | 804,015 | $ | 840,334 | $ | 666,584 | $ | 1,975,259 | $ | 924,822 | $ | 53,985 | $ | 8,348,808 | ||||||||||||||||||
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 | ||||||||||||
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 | |||||||||
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 | |||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Ending Balance December 31, 2020 | Charge-offs | Recoveries | (Recapture of) Provision for Credit Losses | Ending Balance March 31, 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial real estate | $ | 75,439 | $ | 0 | $ | 0 | $ | (18,867 | ) | $ | 56,572 | |||||||||
Construction | 1,934 | 0 | 3 | (59 | ) | 1,878 | ||||||||||||||
SBA | 2,992 | 0 | 4 | (484 | ) | 2,512 | ||||||||||||||
SBA - PPP | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Commercial and industrial | 7,142 | (2,475 | ) | 2 | 1,770 | 6,439 | ||||||||||||||
Dairy & livestock and agribusiness | 3,949 | 0 | 0 | (1,227 | ) | 2,722 | ||||||||||||||
Municipal lease finance receivables | 74 | 0 | 0 | (39 | ) | 35 | ||||||||||||||
SFR mortgage | 367 | 0 | 79 | (148 | ) | 298 | ||||||||||||||
Consumer and other loans | 1,795 | 0 | 0 | (446 | ) | 1,349 | ||||||||||||||
Total allowance for credit losses | $ | 93,692 | $ | (2,475 | ) | $ | 88 | $ | (19,500 | ) | $ | 71,805 | ||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||||
Ending Balance, prior to adoption of ASU 2016-13 December 31, 2019 | Impact of Adoption of ASU 2016-13 | Charge-offs | Recoveries | Provision for (Recapture of) Credit Losses | Ending Balance March 31, 2020 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Commercial real estate | $48,629 | $ | 3,547 | $ | 0 | $ | - | $ | 6,251 | $ | 58,427 | |||||||||||
Construction | 858 | 655 | 0 | 3 | 3,116 | 4,632 | ||||||||||||||||
SBA | 1,453 | 1,818 | 0 | - | 675 | 3,946 | ||||||||||||||||
Commercial and industrial | 8,880 | (2,442 | ) | 0 | 2 | 2,947 | 9,387 | |||||||||||||||
Dairy & livestock and agribusiness | 5,255 | (186 | ) | 0 | - | (803 | ) | 4,266 | ||||||||||||||
Municipal lease finance receivables | 623 | (416 | ) | 0 | - | 70 | 277 | |||||||||||||||
SFR mortgage | 2,339 | (2,043 | ) | 0 | 206 | (221 | ) | 281 | ||||||||||||||
Consumer and other loans | 623 | 907 | (86 | ) | 16 | (35 | ) | 1,425 | ||||||||||||||
Total allowance for credit losses | $68,660 | $ | 1,840 | $ | (86 | ) | $ | 227 | $ | 12,000 | $ | 82,641 | ||||||||||
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 | |||||||||||||
March 31, 2021 | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater than 89 Days Past Due | Total Past Due | Loans Not Past Due | Total Loans and Financing Receivables | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 0 | $ | 211 | $ | 6,934 | $ | 7,145 | $ | 2,165,178 | $ | 2,172,323 | ||||||||||||
Non-owner occupied | 178 | 0 | 0 | 178 | 3,424,280 | 3,424,458 | ||||||||||||||||||
Construction | ||||||||||||||||||||||||
Speculative (1) | 0 | 0 | 0 | - | 80,857 | 80,857 | ||||||||||||||||||
Non-speculative | 0 | 0 | 0 | - | 15,499 | 15,499 | ||||||||||||||||||
SBA | 258 | 0 | 1,028 | 1,286 | 306,441 | 307,727 | ||||||||||||||||||
SBA - PPP | 0 | 0 | 0 | - | 897,724 | 897,724 | ||||||||||||||||||
Commercial and industrial | 452 | 689 | 2,606 | 3,747 | 749,961 | 753,708 | ||||||||||||||||||
Dairy & livestock and agribusiness | 0 | 0 | 259 | 259 | 260,829 | 261,088 | ||||||||||||||||||
Municipal lease finance receivables | 0 | 0 | 0 | - | 42,349 | 42,349 | ||||||||||||||||||
SFR mortgage | 266 | 0 | 229 | 495 | 254,905 | 255,400 | ||||||||||||||||||
Consumer and other loans | 21 | 0 | 193 | 214 | 81,710 | 81,924 | ||||||||||||||||||
Total loans | $ | 1,175 | $ | 900 | $ | 11,249 | $ | 13,324 | $ | 8,279,733 | $ | 8,293,057 | ||||||||||||
(1) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
December 31, 2020 | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater than 89 Days Past Due | Total Past Due | Loans Not Past Due | Total Loans and Financing Receivables | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | $ | 0 | $ | 0 | $ | 7,208 | $ | 7,208 | $ | 2,136,051 | $ | 2,143,259 | ||||||||||||
Non-owner occupied | 0 | 0 | 0 | 0 | 3,358,250 | 3,358,250 | ||||||||||||||||||
Construction | ||||||||||||||||||||||||
Speculative (1) | 0 | 0 | 0 | 0 | 72,126 | 72,126 | ||||||||||||||||||
Non-speculative | 0 | 0 | 0 | 0 | 13,019 | 13,019 | ||||||||||||||||||
SBA | 531 | 2,415 | 1,025 | 3,971 | 299,925 | 303,896 | ||||||||||||||||||
SBA - PPP | 0 | 0 | 0 | 0 | 882,986 | 882,986 | ||||||||||||||||||
Commercial and industrial | 608 | 811 | 2,338 | 3,757 | 808,305 | 812,062 | ||||||||||||||||||
Dairy & livestock and agribusiness | 0 | 0 | 784 | 784 | 360,362 | 361,146 | ||||||||||||||||||
Municipal lease finance receivables | 0 | 0 | 0 | 0 | 45,547 | 45,547 | ||||||||||||||||||
SFR mortgage | 0 | 0 | 229 | 229 | 270,282 | 270,511 | ||||||||||||||||||
Consumer and other loans | 0 | 0 | 0 | 0 | 86,006 | 86,006 | ||||||||||||||||||
�� | ||||||||||||||||||||||||
Total loans | $ | 1,139 | $ | 3,226 | $ | 11,584 | $ | 15,949 | $ | 8,332,859 | $ | 8,348,808 | ||||||||||||
(1) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
March 31, 2021 | ||||||||||||
Nonaccrual with No Allowance for Credit Losses | Total Nonaccrual (1) | Loans Past Due Over 89 Days Still Accruing | ||||||||||
(Dollars in thousands) | ||||||||||||
Commercial real estate | ||||||||||||
Owner occupied | $ | 7,395 | $ | 7,395 | $ | 0 | ||||||
Non-owner occupied | 0 | 0 | 0 | |||||||||
Construction | ||||||||||||
Speculative (2) | 0 | 0 | 0 | |||||||||
Non-speculative | 0 | 0 | 0 | |||||||||
SBA | 2,076 | 2,412 | 0 | |||||||||
SBA - PPP | 0 | 0 | 0 | |||||||||
Commercial and industrial | 1,506 | 2,967 | 0 | |||||||||
Dairy & livestock and agribusiness | 0 | 259 | 0 | |||||||||
Municipal lease finance receivables | 0 | 0 | 0 | |||||||||
SFR mortgage | 424 | 424 | 0 | |||||||||
Consumer and other loans | 312 | 312 | 0 | |||||||||
Total loans | $ | 11,713 | $ | 13,769 | $ | 0 | ||||||
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 March 31, 60-89 days past due, and |
(2) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
December 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 real estate | ||||||||||||
Owner occupied | $ | 7,563 | $ | 7,563 | $ | 0 | ||||||
Non-owner occupied | 0 | 0 | 0 | |||||||||
Construction | ||||||||||||
Speculative (2) | 0 | 0 | 0 | |||||||||
Non-speculative | 0 | 0 | 0 | |||||||||
SBA | 2,035 | 2,273 | 0 | |||||||||
SBA - PPP | 0 | 0 | 0 | |||||||||
Commercial and industrial | 1,576 | 3,129 | 0 | |||||||||
Dairy & livestock and agribusiness | 785 | 785 | 0 | |||||||||
Municipal lease finance receivables | 430 | 0 | 0 | |||||||||
SFR mortgage | 0 | 430 | 0 | |||||||||
Consumer and other loans | 167 | 167 | 0 | |||||||||
Total loans | $ | 12,556 | $ | 14,347 | $ | 0 | ||||||
As of December 31, 2020, $1.4 million of nonaccruing loans were current, $2,000 were 30-59 days past due, $1.3 million were60-89 days past due, and $11.6 million were 90+ days past due. |
(2) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
(3) | Excludes |
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 | ||||||||||||
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 | |||||||||
March 31, 2021 | Number of Loans Dependent on Collateral | |||||||||||||||
Real Estate | Business Assets | Other | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial real estate | $ | 7,689 | $ | 0 | $ | 0 | 8 | |||||||||
Construction | 0 | 0 | 0 | 11 | ||||||||||||
SBA | 1,826 | 418 | 168 | 0 | ||||||||||||
SBA - PPP | 0 | 0 | 0 | 0 | ||||||||||||
Commercial and industrial | 421 | 7,708 | 143 | 21 | ||||||||||||
Dairy & livestock and agribusiness | 0 | 259 | 0 | 1 | ||||||||||||
Municipal lease finance receivables | 0 | 0 | 0 | 0 | ||||||||||||
SFR mortgage | 424 | 0 | 0 | 2 | ||||||||||||
Consumer and other loans | 312 | 0 | 0 | 3 | ||||||||||||
Total collateral-dependent loans | $ | 10,672 | $ | 8,385 | $ | 311 | 46 | |||||||||
December 31, 2020 | Number of Loans Dependent on Collateral | |||||||||||||||
Real Estate | Business Assets | Other | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial real estate | $ | 7,883 | $ | 0 | $ | 0 | 8 | |||||||||
Construction | 0 | 0 | 0 | 0 | ||||||||||||
SBA | 1,761 | 326 | 185 | 10 | ||||||||||||
SBA - PPP | 0 | 0 | 0 | 0 | ||||||||||||
Commercial and industrial | 470 | 5,542 | 95 | 18 | ||||||||||||
Dairy & livestock and agribusiness | 0 | 785 | 0 | 1 | ||||||||||||
Municipal lease finance receivables | 0 | 0 | 0 | 0 | ||||||||||||
SFR mortgage | 430 | 0 | 0 | 2 | ||||||||||||
Consumer and other loans | 168 | 0 | 0 | 2 | ||||||||||||
Total collateral-dependent loans | $ | 10,712 | $ | 6,653 | $ | 280 | 41 | |||||||||
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 | |||||
Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
(Dollars in thousands) | ||||||||
Performing TDRs: | ||||||||
Beginning balance | $ | 2,159 | $ | 3,112 | ||||
New modifications | 4,643 | 0 | ||||||
Payoffs/payments, net and other | (989 | ) | (299 | ) | ||||
TDRs returned to accrual status | 0 | 0 | ||||||
TDRs placed on nonaccrual status | 0 | 0 | ||||||
Ending balance | $ | 5,813 | $ | 2,813 | ||||
Nonperforming TDRs: | ||||||||
Beginning balance | $ | 0 | $ | 244 | ||||
New modifications | 0 | 0 | ||||||
Charge-offs | 0 | 0 | ||||||
Payoffs/payments, net and other | 0 | (244 | ) | |||||
TDRs returned to accrual status | 0 | 0 | ||||||
TDRs placed on nonaccrual status | 0 | 0 | ||||||
Ending balance | $ | 0 | $ | 0 | ||||
Total TDRs | $ | 5,813 | $ | 2,813 | ||||
For the Three Months Ended March 31, 2021 | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Outstanding Recorded Investment at March 31, 2021 | Financial Effect Resulting From Modifications (2) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Interest rate reduction | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Commercial and industrial: | �� | |||||||||||||||||||
Interest rate reduction | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Change in amortization | 2 | 4,643 | 4,643 | 4,443 | 0 | |||||||||||||||
SFR mortgage: | ||||||||||||||||||||
Interest rate reduction | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Total loans | 2 | $ | 4,643 | $ | 4,643 | $ | 4,443 | $ | 0 | |||||||||||
(1) | The tables above exclude modified loans that were paid off prior to the end of the period. |
(2) | Financial effects resulting from modifications represent charge-offs and current allowance for credit losses at modification date. |
6. | EARNINGS PER SHARE RECONCILIATION |
Three Months Ended March 31, | |||||||||
2020 | 2019 | ||||||||
(In thousands, except per share amounts) | |||||||||
Earnings per common share: | |||||||||
Net earnings | $ | 37,980 | $ | 51,642 | |||||
Less: Net earnings allocated to restricted stock | 83 | 141 | |||||||
Net earnings allocated to common shareholders | $ | 37,897 | $ | 51,501 | |||||
Weighted average shares outstanding | 139,107 | 139,615 | |||||||
Basic earnings per common share | $ | 0.27 | $ | 0.37 | |||||
Diluted earnings per common share: | |||||||||
Net income allocated to common shareholders | 37,897 | 51,501 | |||||||
Weighted average shares outstanding | 139,107 | 139,615 | |||||||
Incremental shares from assumed exercise of outstanding options | 209 | 216 | |||||||
Diluted weighted average shares outstanding | 139,316 | 139,831 | |||||||
Diluted earnings per common share | $ | 0.27 | $ | 0.37 | |||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(In thousands, except per share amounts) | ||||||||
Earnings per common share: | ||||||||
Net earnings | $ | 63,893 | $ | 37,980 | ||||
Less: Net earnings allocated to restricted stock | 309 | 83 | ||||||
Net earnings allocated to common shareholders | $ | 63,584 | $ | 37,897 | ||||
Weighted average shares outstanding | 135,175 | 139,107 | ||||||
Basic earnings per common share | $ | 0.47 | $ | 0.27 | ||||
Diluted earnings per common share: | ||||||||
Net income allocated to common shareholders | 63,584 | 37,897 | ||||||
Weighted average shares outstanding | 135,175 | 139,107 | ||||||
Incremental shares from assumed exercise of outstanding options | 253 | 209 | ||||||
Diluted weighted average shares outstanding | 135,428 | 139,316 | ||||||
Diluted earnings per common share | $ | 0.47 | $ | 0.27 | ||||
7. | FAIR VALUE INFORMATION |
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 March 31, 2021 | 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 | $ | 2,191,338 | $ | 0 | $ | 2,191,338 | $ | 0 | ||||||||
CMO/REMIC | 590,166 | 0 | 590,166 | 0 | ||||||||||||
Municipal bonds | 29,886 | 0 | 29,886 | 0 | ||||||||||||
Other securities | 958 | 0 | 958 | 0 | ||||||||||||
Total investment securities - AFS | 2,812,348 | 0 | 2,812,348 | 0 | ||||||||||||
Interest rate swaps | 14,692 | 0 | 14,692 | 0 | ||||||||||||
Total assets | $ | 2,827,040 | $ | 0 | $ | 2,827,040 | $ | 0 | ||||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 14,692 | $ | 0 | $ | 14,692 | $ | 0 | ||||||||
Total liabilities | $ | 14,692 | $ | 0 | $ | 14,692 | $ | 0 | ||||||||
Carrying Value at December 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 | $ | 1,904,935 | $ | 0 | $ | 1,904,935 | $ | 0 | ||||||||
CMO/REMIC | 462,814 | 0 | 462,814 | 0 | ||||||||||||
Municipal bonds | 30,285 | 0 | 30,285 | 0 | ||||||||||||
Other securities | 889 | 0 | 889 | 0 | ||||||||||||
Total investment securities - AFS | 2,398,923 | 0 | 2,398,923 | 0 | ||||||||||||
Interest rate swaps | 30,181 | 0 | 30,181 | 0 | ||||||||||||
Total assets | $ | 2,429,104 | $ | 0 | $ | 2,429,104 | $ | 0 | ||||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 30,181 | $ | 0 | $ | 30,181 | $ | 0 | ||||||||
Total liabilities | $ | 30,181 | $ | 0 | $ | 30,181 | $ | 0 | ||||||||
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 | ||||||||||
Carrying Value at March 31, 2021 | 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, 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Construction | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
SBA | 97 | 0 | 0 | 97 | 19 | |||||||||||||||
Commercial and industrial | 2,248 | 0 | 0 | 2,248 | 307 | |||||||||||||||
Dairy & livestock and agribusiness | 260 | 0 | 0 | 260 | 102 | |||||||||||||||
Municipal lease finance receivables | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
SFR mortgage | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Consumer and other loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other real estate owned | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Asset held-for-sale | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Total assets | $ | 2,605 | $ | 0 | $ | 0 | $ | 2,605 | $ | 428 | ||||||||||
Carrying Value at December 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 Year Ended December 31, 2020 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Construction | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
SBA | 76 | 0 | 0 | 76 | 24 | |||||||||||||||
Commercial and industrial | 4,266 | 0 | 0 | 4,266 | 2,316 | |||||||||||||||
Dairy & livestock and agribusiness | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Municipal lease finance receivables | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
SFR mortgage | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Consumer and other loans | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other real estate owned | 2,275 | 0 | 0 | 2,275 | 700 | |||||||||||||||
Asset held-for-sale | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Total assets | $ | 6,617 | $ | 0 | $ | 0 | $ | 6,617 | $ | 3,040 | ||||||||||
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 |
March 31, 2021 | ||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Total cash and cash equivalents | $ | 1,525,299 | $ | 1,525,299 | $ | 0 | $ | 0 | $ | 1,525,299 | ||||||||||
Interest-earning balances due from depository institutions | 27,748 | 0 | 27,748 | 0 | 27,748 | |||||||||||||||
Investment securities available-for-sale | 2,812,348 | 0 | 2,812,348 | 0 | 2,812,348 | |||||||||||||||
Investment securities held-to-maturity | 1,086,984 | 0 | 1,085,481 | 0 | 1,085,481 | |||||||||||||||
Total loans, net of allowance for credit losses | 8,221,252 | 0 | 0 | 8,231,707 | 8,231,707 | |||||||||||||||
Swaps | 14,692 | 0 | 14,692 | 0 | 14,692 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing | $ | 4,500,816 | $ | 0 | $ | 4,500,611 | $ | 0 | $ | 4,500,611 | ||||||||||
Borrowings | 511,346 | 0 | 504,563 | 0 | 504,563 | |||||||||||||||
Junior subordinated debentures | 25,774 | 0 | 0 | 20,351 | 20,351 | |||||||||||||||
Swaps | 14,692 | 0 | 14,692 | 0 | 14,692 |
December 31, 2020 | ||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Total cash and cash equivalents | $ | 1,958,160 | $ | 1,958,160 | $ | 0 | $ | 0 | $ | 1,958,160 | ||||||||||
Interest-earning balances due from depository institutions | 43,563 | 0 | 43,600 | 0 | 43,600 | |||||||||||||||
Investment securities available-for-sale | 2,398,923 | 0 | 2,398,923 | 0 | 2,398,923 | |||||||||||||||
Investment securities held-to-maturity | 578,626 | 0 | 604,223 | 0 | 604,223 | |||||||||||||||
Total loans, net of allowance for credit losses | 8,255,116 | 0 | 0 | 8,256,178 | 8,256,178 | |||||||||||||||
Swaps | 30,181 | 0 | 30,181 | 0 | 30,181 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing | $ | 4,281,114 | $ | 0 | $ | 4,281,952 | $ | 0 | $ | 4,281,952 | ||||||||||
Borrowings | 444,406 | 0 | 444,349 | 0 | 444,349 | |||||||||||||||
Junior subordinated debentures | 25,774 | 0 | 0 | 19,431 | 19,431 | |||||||||||||||
Swaps | 30,181 | 0 | 30,181 | 0 | 30,181 |
8. | DERIVATIVE FINANCIAL INSTRUMENTS |
March 31, 2020 | March 31, 2021 | |||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | 33,255 | Other liabilities | $ | 33,255 | Other assets | $14,692 | Other liabilities | $14,692 | ||||||||||||||||||||||
Total derivatives | $ | 33,255 | $ | 33,255 | $14,692 | $14,692 | ||||||||||||||||||||||||||
December 31, 2019 | December 31, 2020 | |||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | 11,502 | Other liabilities | $ | 11,502 | Other assets | $30,181 | Other liabilities | $30,181 | ||||||||||||||||||||||
Total derivatives | $ | 11,502 | $ | 11,502 | $30,181 | $30,181 | ||||||||||||||||||||||||||
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 | ||||||||
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, | ||||||||||||
2021 | 2020 | |||||||||||
(Dollars in thousands) | ||||||||||||
Interest rate swaps | Other income | $ | 215 | $ | 373 | |||||||
Total | $ | 215 | $ | 373 | ||||||||
9. | OTHER COMPREHENSIVE INCOME |
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 36,619 | $ | (10,826 | ) | $ | 25,793 | $ | 19,350 | $ | (5,720 | ) | $ | 13,630 | $ | (40,391 | ) | $ | 11,941 | $ | (28,450 | ) | $ | 36,619 | $ | (10,826 | ) | $ | 25,793 | ||||||||||||||||||||
Amortization of net unrealized losses on securities available-for-sale toheld-to-maturity | (1 | ) | - | (1 | ) | (1,123 | ) | 332 | (791 | ) | 81 | (24 | ) | 57 | (1 | ) | 0 | (1 | ) | ||||||||||||||||||||||||||||||
Net change | $ | 36,618 | $ | (10,826 | ) | $ | 25,792 | $ | 18,227 | $ | (5,388 | ) | $ | 12,839 | $ | (40,310 | ) | $ | 11,917 | $ | (28,393 | ) | $ | 36,618 | $ | (10,826 | ) | $ | 25,792 | ||||||||||||||||||||
10. | BALANCE SHEET OFFSETTING |
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 | ) | ||||||||||
Gross Amounts Recognized in | Gross Amounts Offset in the | Net Amounts Presented in the | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | |||||||||||||||||||||
the Condensed Consolidated Balance Sheets | Condensed Consolidated Balance Sheets | Condensed Consolidated Balance Sheets | Financial Instruments | Collateral Pledged | Net Amount | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 14,692 | $ | 0 | $ | 0 | $ | 14,692 | $ | 0 | $ | 14,692 | ||||||||||||
Total | $ | 14,692 | $ | 0 | $ | 0 | $ | 14,692 | $ | 0 | $ | 14,692 | ||||||||||||
Financial liabilities: | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 27,826 | $ | (13,134 | ) | $ | 14,692 | $ | 13,134 | $ | (45,482 | ) | $ | (17,656 | ) | |||||||||
Repurchase agreements | 506,346 | 0 | 506,346 | 0 | (543,551 | ) | (37,205 | ) | ||||||||||||||||
Total | $ | 534,172 | $ | (13,134 | ) | $ | 521,038 | $ | 13,134 | $ | (589,033 | ) | $ | (54,861 | ) | |||||||||
December 31, 2020 | ||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 30,181 | $ | 0 | $ | 0 | $ | 30,181 | $ | 0 | $ | 30,181 | ||||||||||||
Total | $ | 30,181 | $ | 0 | $ | 0 | $ | 30,181 | $ | 0 | $ | 30,181 | ||||||||||||
Financial liabilities: | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 30,434 | $ | (253 | ) | $ | 30,181 | $ | 253 | $ | (63,730 | ) | $ | (33,296 | ) | |||||||||
Repurchase agreements | 439,406 | 0 | 439,406 | 0 | (483,603 | ) | (44,197 | ) | ||||||||||||||||
Total | $ | 469,840 | $ | (253 | ) | $ | 469,587 | $ | 253 | $ | (547,333 | ) | $ | (77,493 | ) | |||||||||
March 31, 2021 | December 31, 2020 | |||||||
(Dollars in thousands) | ||||||||
Lease Assets and Liabilities | ||||||||
ROU assets | $ | 20,340 | $ | 19,112 | ||||
Total lease liabilities | 22,237 | 21,164 |
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 | ||||
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 | % |
Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
(Dollars in thousands) | ||||||||
Lease Cost | ||||||||
Operating lease expense (1) | $ | 1,662 | $ | 1,623 | ||||
Sublease income | 0 | 0 | ||||||
Total lease expense | $ | 1,662 | $ | 1,623 | ||||
(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 | $ | 1,819 | $ | 1,935 | ||||
March 31, 2021 | December 31, 020 | |||||||
Lease Term and Discount Rate | ||||||||
Weighted average remaining lease term (years) | 4.40 | 4.16 | ||||||
Weighted average discount rate | 2.63% | 2.80% |
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 | ||
March 31, 2021 | ||||
(Dollars in thousands) | ||||
Year: | ||||
2021 (excluding the three months ended March 31, 2021) | $ | 5,142 | ||
2022 | 6,031 | |||
2023 | 4,279 | |||
2024 | 3,107 | |||
2025 | 2,433 | |||
Thereafter | 2,499 | |||
Total future lease payments | 23,491 | |||
Less: Imputed interest | (1,254 | ) | ||
Present value of lease liabilities | $ | 22,237 | ||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(Dollars in thousands) | ||||||||
Noninterest income: | ||||||||
In-scope of Topic 606: | ||||||||
Service charges on deposit accounts | $ | 3,985 | $ | 4,776 | ||||
Trust and investment services | 2,611 | 2,420 | ||||||
Bankcard services | 350 | 577 | ||||||
Gain on OREO, net | 429 | 10 | ||||||
Other | 1,682 | 1,798 | ||||||
Noninterest Income (in-scope of Topic 606) | 9,057 | 9,581 | ||||||
Noninterest Income (out-of-scope | 4,624 | 2,059 | ||||||
Total noninterest income | $ | 13,681 | $ | 11,640 | ||||
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 | |||||
· | Allowance for Credit Losses (“ACL”) |
· | Business Combinations |
· | Valuation and Recoverability of Goodwill |
· | Income Taxes |
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 ReportingIssued March 2020 | 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 hedgingrelationships, as well as providing a one-time election for the sale or transfer of debt securities classified asheld-to-maturity. | 1st Quarter 2020 through the 4th Quarter 2022 | The Company established a LIBOR Transition Task Force in 2020, which has inventoried our instruments that reflect exposure to LIBOR, created a framework to manage the transition and established a timeline for key decisions and actions to complete the transition from LIBOR in 2021. 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 | |||||
ASU 470-20) and Derivatives and 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own EquityIssued August 2020 | The FASB issued ASU 2020-06, Debt — Debt with Conversion and 470-20) and Derivatives and 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU | 1st Quarter | The adoption of this ASU | |||||
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, | Variance | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net interest income | $ | 103,468 | $ | 102,306 | $ | 1,162 | 1.14 | % | ||||||||
Recapture of (provision for) credit losses | 19,500 | (12,000 | ) | 31,500 | 262.50 | % | ||||||||||
Noninterest income | 13,681 | 11,640 | 2,041 | 17.53 | % | |||||||||||
Noninterest expense | (47,163 | ) | (48,641 | ) | 1,478 | 3.04 | % | |||||||||
Income taxes | (25,593 | ) | (15,325 | ) | (10,268) | -67.00 | % | |||||||||
Net earnings | $ | 63,893 | $ | 37,980 | $ | 25,913 | 68.23 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.47 | $ | 0.27 | $ | 0.20 | ||||||||||
Diluted | $ | 0.47 | $ | 0.27 | $ | 0.20 | ||||||||||
Return on average assets | 1.79 | % | 1.34 | % | 0.45% | |||||||||||
Return on average shareholders’ equity | 12.75 | % | 7.61 | % | 5.14% | |||||||||||
Efficiency ratio | 40.26 | % | 42.69 | % | -2.43% | |||||||||||
Noninterest expense to average assets | 1.32 | % | 1.72 | % | -0.40% | |||||||||||
Three Months Ended | Variance | |||||||||||||||
March 31, 2021 | December 31, 2020 | $ | % | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net interest income | $ | 103,468 | $ | 105,853 | $ | (2,385) | -2.25 | % | ||||||||
Recapture of credit losses | 19,500 | - | 19,500 | - | ||||||||||||
Noninterest income | 13,681 | 12,925 | 756 | 5.85 | % | |||||||||||
Noninterest expense | (47,163 | ) | (48,276 | ) | 1,113 | 2.31 | % | |||||||||
Income taxes | (25,593 | ) | (20,446 | ) | (5,147) | -25.17 | % | |||||||||
Net earnings | $ | 63,893 | $ | 50,056 | $ | 13,837 | 27.64 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.47 | $ | 0.37 | $ | 0.10 | ||||||||||
Diluted | $ | 0.47 | $ | 0.37 | $ | 0.10 | ||||||||||
Return on average assets | 1.79 | % | 1.42 | % | 0.37% | |||||||||||
Return on average shareholders’ equity | 12.75 | % | 9.92 | % | 2.83% | |||||||||||
Efficiency ratio | 40.26 | % | 40.64 | % | -0.38% | |||||||||||
Noninterest expense to average assets | 1.32 | % | 1.37 | % | -0.05% |
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 | % |
Three Months Ended | ||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | ||||||||||
(Dollars in thousands) | ||||||||||||
Net Income | $ | 63,893 | $ | 50,056 | $ | 37,980 | ||||||
Add: Amortization of intangible assets | 2,167 | 2,170 | 2,445 | |||||||||
Less: Tax effect of amortization of intangible assets (1) | (641 | ) | (642 | ) | (723 | ) | ||||||
Tangible net income | $ | 65,419 | $ | 51,584 | $ | 39,702 | ||||||
Average stockholders’ equity | $ | 2,032,676 | $ | 2,007,640 | $ | 2,006,464 | ||||||
Less: Average goodwill | (663,707 | ) | (663,707 | ) | (663,707 | ) | ||||||
Less: Average intangible assets | (32,590 | ) | (34,711 | ) | (41,732 | ) | ||||||
Average tangible common equity | $ | 1,336,379 | $ | 1,309,222 | $ | 1,301,025 | ||||||
Return on average equity, annualized | 12.75% | 9.92% | 7.61% | |||||||||
Return on average tangible common equity, annualized | 19.85% | 15.67% | 12.27% |
(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% |
Three Months Ended March 31, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
Taxable | $ | 2,523,609 | $ | 8,968 | 1.47% | $ | 1,659,394 | $ | 9,825 | 2.37% | ||||||||||||||
Tax-advantaged | 30,158 | 191 | 3.02% | 38,086 | 224 | 3.36% | ||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||
Taxable | 580,478 | 2,811 | 1.95% | 469,394 | 2,698 | 2.30% | ||||||||||||||||||
Tax-advantaged | 199,348 | 1,129 | 2.74% | 189,522 | 1,300 | 3.32% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 217 | 4.98% | 17,688 | 332 | 7.55% | ||||||||||||||||||
Interest-earning deposits with other institutions | 1,664,193 | 413 | 0.10% | 261,041 | 613 | 0.94% | ||||||||||||||||||
Loans (2) | 8,270,282 | 91,795 | 4.50% | 7,482,805 | 92,117 | 4.95% | ||||||||||||||||||
Total interest-earning assets | 13,285,756 | 105,524 | 3.24% | 10,117,930 | 107,109 | 4.27% | ||||||||||||||||||
Total noninterest-earning assets | 1,220,899 | 1,257,870 | ||||||||||||||||||||||
Total assets | $ | 14,506,655 | $ | 11,375,800 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 4,026,248 | 1,198 | 0.12% | $ | 3,056,743 | 3,111 | 0.41% | ||||||||||||||||
Time deposits | 408,034 | 614 | 0.61% | 445,431 | 1,013 | 0.91% | ||||||||||||||||||
Total interest-bearing deposits | 4,434,282 | 1,812 | 0.17% | 3,502,174 | 4,124 | 0.47% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 590,170 | 244 | 0.17% | 504,585 | 679 | 0.54% | ||||||||||||||||||
Interest-bearing liabilities | 5,024,452 | 2,056 | 0.17% | 4,006,759 | 4,803 | 0.48% | ||||||||||||||||||
Noninterest-bearing deposits | 7,240,494 | 5,247,025 | ||||||||||||||||||||||
Other liabilities | 209,033 | 115,552 | ||||||||||||||||||||||
Stockholders’ equity | 2,032,676 | 2,006,464 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 14,506,655 | $ | 11,375,800 | ||||||||||||||||||||
Net interest income | $ | 103,468 | $ | 102,306 | ||||||||||||||||||||
Net interest spread—tax equivalent | 3.07% | 3.79% | ||||||||||||||||||||||
Net interest margin | 3.17% | 4.06% | ||||||||||||||||||||||
Net interest margin—tax equivalent | 3.18% | 4.08% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended March 31, |
(2) | Includes loan fees of |
(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 | ) | ||||
Comparison of Three Months Ended March 31, 2021 Compared to 2020 Increase (Decrease) Due to | ||||||||||||||||
Volume | Rate | Rate/ Volume | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest income: | ||||||||||||||||
Available-for-sale | ||||||||||||||||
Taxable investment securities | $ | 4,541 | $ | (3,674 | ) | $ | (1,724 | ) | $ | (857 | ) | |||||
Tax-advantaged investment securities | (46 | ) | 17 | (4 | ) | (33 | ) | |||||||||
Held-to-maturity | ||||||||||||||||
Taxable investment securities | 609 | (404 | ) | (92 | ) | 113 | ||||||||||
Tax-advantaged investment securities | 65 | (224 | ) | (12 | ) | (171 | ) | |||||||||
Investment in FHLB stock | - | (115 | ) | - | (115 | ) | ||||||||||
Interest-earning deposits with other institutions | 3,266 | (543 | ) | (2,923 | ) | (200 | ) | |||||||||
Loans | 9,232 | (8,644 | ) | (910 | ) | (322 | ) | |||||||||
Total interest income | 17,667 | (13,587 | ) | (5,665 | ) | (1,585 | ) | |||||||||
Interest expense: | ||||||||||||||||
Savings deposits | 972 | (2,191 | ) | (694 | ) | (1,913 | ) | |||||||||
Time deposits | (63 | ) | (250 | ) | (86 | ) | (399 | ) | ||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 113 | (469 | ) | (79 | ) | (435 | ) | |||||||||
Total interest expense | 1,022 | (2,910 | ) | (859 | ) | (2,747 | ) | |||||||||
Net interest income | $ | 16,645 | $ | (10,677 | ) | $ | (4,806 | ) | $ | 1,162 | ||||||
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 | % | |||||||
Three Months Ended March 31, | Variance | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | $ | 3,985 | $ | 4,776 | $ | (791 | ) | -16.56% | ||||||||
Trust and investment services | 2,611 | 2,420 | 191 | 7.89% | ||||||||||||
Bankcard services | 350 | 577 | (227 | ) | -39.34% | |||||||||||
BOLI income | 4,624 | 2,059 | 2,565 | 124.58% | ||||||||||||
Swap fee income | 215 | 373 | (158 | ) | -42.36% | |||||||||||
Gain on OREO, net | 429 | 10 | 419 | 4190.00% | ||||||||||||
Other | 1,467 | 1,425 | 42 | 2.95% | ||||||||||||
Total noninterest income | $ | 13,681 | $ | 11,640 | $ | 2,041 | 17.53% | |||||||||
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 ReportingIssued March 2020 | The 2020-04, Reference Rate Reform: Facilitation of the relationships, as well as providing a one-time election for the held-to-maturity.
| 1st Quarter 2020 through the 4th Quarter 2022 | The Company established a LIBOR Transition Task Force in 2020, which has inventoried our instruments that reflect exposure to LIBOR, created a framework to manage the transition and established a timeline for key decisions and actions to complete the transition from LIBOR in 2021. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own EquityIssued August 2020 | The FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification. | 1st Quarter 2022 | The adoption of this ASU is not expected to have a material impact on our consolidated financial statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Variance | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net interest income | $ | 103,468 | $ | 102,306 | $ | 1,162 | 1.14 | % | ||||||||
Recapture of (provision for) credit losses | 19,500 | (12,000 | ) | 31,500 | 262.50 | % | ||||||||||
Noninterest income | 13,681 | 11,640 | 2,041 | 17.53 | % | |||||||||||
Noninterest expense | (47,163 | ) | (48,641 | ) | 1,478 | 3.04 | % | |||||||||
Income taxes | (25,593 | ) | (15,325 | ) | (10,268) | -67.00 | % | |||||||||
Net earnings | $ | 63,893 | $ | 37,980 | $ | 25,913 | 68.23 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.47 | $ | 0.27 | $ | 0.20 | ||||||||||
Diluted | $ | 0.47 | $ | 0.27 | $ | 0.20 | ||||||||||
Return on average assets | 1.79 | % | 1.34 | % | 0.45% | |||||||||||
Return on average shareholders’ equity | 12.75 | % | 7.61 | % | 5.14% | |||||||||||
Efficiency ratio | 40.26 | % | 42.69 | % | -2.43% | |||||||||||
Noninterest expense to average assets | 1.32 | % | 1.72 | % | -0.40% | |||||||||||
Three Months Ended | Variance | |||||||||||||||
March 31, 2021 | December 31, 2020 | $ | % | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net interest income | $ | 103,468 | $ | 105,853 | $ | (2,385) | -2.25 | % | ||||||||
Recapture of credit losses | 19,500 | - | 19,500 | - | ||||||||||||
Noninterest income | 13,681 | 12,925 | 756 | 5.85 | % | |||||||||||
Noninterest expense | (47,163 | ) | (48,276 | ) | 1,113 | 2.31 | % | |||||||||
Income taxes | (25,593 | ) | (20,446 | ) | (5,147) | -25.17 | % | |||||||||
Net earnings | $ | 63,893 | $ | 50,056 | $ | 13,837 | 27.64 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.47 | $ | 0.37 | $ | 0.10 | ||||||||||
Diluted | $ | 0.47 | $ | 0.37 | $ | 0.10 | ||||||||||
Return on average assets | 1.79 | % | 1.42 | % | 0.37% | |||||||||||
Return on average shareholders’ equity | 12.75 | % | 9.92 | % | 2.83% | |||||||||||
Efficiency ratio | 40.26 | % | 40.64 | % | -0.38% | |||||||||||
Noninterest expense to average assets | 1.32 | % | 1.37 | % | -0.05% |
Three Months Ended | ||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | ||||||||||
(Dollars in thousands) | ||||||||||||
Net Income | $ | 63,893 | $ | 50,056 | $ | 37,980 | ||||||
Add: Amortization of intangible assets | 2,167 | 2,170 | 2,445 | |||||||||
Less: Tax effect of amortization of intangible assets (1) | (641 | ) | (642 | ) | (723 | ) | ||||||
Tangible net income | $ | 65,419 | $ | 51,584 | $ | 39,702 | ||||||
Average stockholders’ equity | $ | 2,032,676 | $ | 2,007,640 | $ | 2,006,464 | ||||||
Less: Average goodwill | (663,707 | ) | (663,707 | ) | (663,707 | ) | ||||||
Less: Average intangible assets | (32,590 | ) | (34,711 | ) | (41,732 | ) | ||||||
Average tangible common equity | $ | 1,336,379 | $ | 1,309,222 | $ | 1,301,025 | ||||||
Return on average equity, annualized | 12.75% | 9.92% | 7.61% | |||||||||
Return on average tangible common equity, annualized | 19.85% | 15.67% | 12.27% |
(1) | Tax effected at respective statutory rates. |
Three Months Ended March 31, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
Taxable | $ | 2,523,609 | $ | 8,968 | 1.47% | $ | 1,659,394 | $ | 9,825 | 2.37% | ||||||||||||||
Tax-advantaged | 30,158 | 191 | 3.02% | 38,086 | 224 | 3.36% | ||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||
Taxable | 580,478 | 2,811 | 1.95% | 469,394 | 2,698 | 2.30% | ||||||||||||||||||
Tax-advantaged | 199,348 | 1,129 | 2.74% | 189,522 | 1,300 | 3.32% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 217 | 4.98% | 17,688 | 332 | 7.55% | ||||||||||||||||||
Interest-earning deposits with other institutions | 1,664,193 | 413 | 0.10% | 261,041 | 613 | 0.94% | ||||||||||||||||||
Loans (2) | 8,270,282 | 91,795 | 4.50% | 7,482,805 | 92,117 | 4.95% | ||||||||||||||||||
Total interest-earning assets | 13,285,756 | 105,524 | 3.24% | 10,117,930 | 107,109 | 4.27% | ||||||||||||||||||
Total noninterest-earning assets | 1,220,899 | 1,257,870 | ||||||||||||||||||||||
Total assets | $ | 14,506,655 | $ | 11,375,800 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 4,026,248 | 1,198 | 0.12% | $ | 3,056,743 | 3,111 | 0.41% | ||||||||||||||||
Time deposits | 408,034 | 614 | 0.61% | 445,431 | 1,013 | 0.91% | ||||||||||||||||||
Total interest-bearing deposits | 4,434,282 | 1,812 | 0.17% | 3,502,174 | 4,124 | 0.47% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 590,170 | 244 | 0.17% | 504,585 | 679 | 0.54% | ||||||||||||||||||
Interest-bearing liabilities | 5,024,452 | 2,056 | 0.17% | 4,006,759 | 4,803 | 0.48% | ||||||||||||||||||
Noninterest-bearing deposits | 7,240,494 | 5,247,025 | ||||||||||||||||||||||
Other liabilities | 209,033 | 115,552 | ||||||||||||||||||||||
Stockholders’ equity | 2,032,676 | 2,006,464 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 14,506,655 | $ | 11,375,800 | ||||||||||||||||||||
Net interest income | $ | 103,468 | $ | 102,306 | ||||||||||||||||||||
Net interest spread—tax equivalent | 3.07% | 3.79% | ||||||||||||||||||||||
Net interest margin | 3.17% | 4.06% | ||||||||||||||||||||||
Net interest margin—tax equivalent | 3.18% | 4.08% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended March 31, 2021 and 2020. The non TE rates were 1.62% and 2.38% for the three months ended March 31, 2021 and 2020, respectively. |
(2) | Includes loan fees of $8.9 million and $548,000 for the three months ended March 31, 2021 and 2020, respectively. Prepayment penalty fees of $1.6 million and $1.5 million are included in interest income for the three months ended March 31, 2021 and 2020, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
Comparison of Three Months Ended March 31, 2021 Compared to 2020 Increase (Decrease) Due to | ||||||||||||||||
Volume | Rate | Rate/ Volume | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest income: | ||||||||||||||||
Available-for-sale | ||||||||||||||||
Taxable investment securities | $ | 4,541 | $ | (3,674 | ) | $ | (1,724 | ) | $ | (857 | ) | |||||
Tax-advantaged investment securities | (46 | ) | 17 | (4 | ) | (33 | ) | |||||||||
Held-to-maturity | ||||||||||||||||
Taxable investment securities | 609 | (404 | ) | (92 | ) | 113 | ||||||||||
Tax-advantaged investment securities | 65 | (224 | ) | (12 | ) | (171 | ) | |||||||||
Investment in FHLB stock | - | (115 | ) | - | (115 | ) | ||||||||||
Interest-earning deposits with other institutions | 3,266 | (543 | ) | (2,923 | ) | (200 | ) | |||||||||
Loans | 9,232 | (8,644 | ) | (910 | ) | (322 | ) | |||||||||
Total interest income | 17,667 | (13,587 | ) | (5,665 | ) | (1,585 | ) | |||||||||
Interest expense: | ||||||||||||||||
Savings deposits | 972 | (2,191 | ) | (694 | ) | (1,913 | ) | |||||||||
Time deposits | (63 | ) | (250 | ) | (86 | ) | (399 | ) | ||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 113 | (469 | ) | (79 | ) | (435 | ) | |||||||||
Total interest expense | 1,022 | (2,910 | ) | (859 | ) | (2,747 | ) | |||||||||
Net interest income | $ | 16,645 | $ | (10,677 | ) | $ | (4,806 | ) | $ | 1,162 | ||||||
Three Months Ended March 31, | Variance | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | $ | 3,985 | $ | 4,776 | $ | (791 | ) | -16.56% | ||||||||
Trust and investment services | 2,611 | 2,420 | 191 | 7.89% | ||||||||||||
Bankcard services | 350 | 577 | (227 | ) | -39.34% | |||||||||||
BOLI income | 4,624 | 2,059 | 2,565 | 124.58% | ||||||||||||
Swap fee income | 215 | 373 | (158 | ) | -42.36% | |||||||||||
Gain on OREO, net | 429 | 10 | 419 | 4190.00% | ||||||||||||
Other | 1,467 | 1,425 | 42 | 2.95% | ||||||||||||
Total noninterest income | $ | 13,681 | $ | 11,640 | $ | 2,041 | 17.53% | |||||||||
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 ReportingIssued March 2020 | 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 hedgingrelationships, as well as providing a one-time election for the sale or transfer of debt securities classified asheld-to-maturity. | 1st Quarter 2020 through the 4th Quarter 2022 | The Company established a LIBOR Transition Task Force in 2020, which has inventoried our instruments that reflect exposure to LIBOR, created a framework to manage the transition and established a timeline for key decisions and actions to complete the transition from LIBOR in 2021. 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 | |||
ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own EquityIssued August 2020 | The FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification. | 1st Quarter 2022 | The adoption of this ASU is not expected to have a material impact on our consolidated financial statements. | |||
Three Months Ended March 31, | Variance | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net interest income | $ | 103,468 | $ | 102,306 | $ | 1,162 | 1.14 | % | ||||||||
Recapture of (provision for) credit losses | 19,500 | (12,000 | ) | 31,500 | 262.50 | % | ||||||||||
Noninterest income | 13,681 | 11,640 | 2,041 | 17.53 | % | |||||||||||
Noninterest expense | (47,163 | ) | (48,641 | ) | 1,478 | 3.04 | % | |||||||||
Income taxes | (25,593 | ) | (15,325 | ) | (10,268) | -67.00 | % | |||||||||
Net earnings | $ | 63,893 | $ | 37,980 | $ | 25,913 | 68.23 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.47 | $ | 0.27 | $ | 0.20 | ||||||||||
Diluted | $ | 0.47 | $ | 0.27 | $ | 0.20 | ||||||||||
Return on average assets | 1.79 | % | 1.34 | % | 0.45% | |||||||||||
Return on average shareholders’ equity | 12.75 | % | 7.61 | % | 5.14% | |||||||||||
Efficiency ratio | 40.26 | % | 42.69 | % | -2.43% | |||||||||||
Noninterest expense to average assets | 1.32 | % | 1.72 | % | -0.40% | |||||||||||
Three Months Ended | Variance | |||||||||||||||
March 31, 2021 | December 31, 2020 | $ | % | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net interest income | $ | 103,468 | $ | 105,853 | $ | (2,385) | -2.25 | % | ||||||||
Recapture of credit losses | 19,500 | - | 19,500 | - | ||||||||||||
Noninterest income | 13,681 | 12,925 | 756 | 5.85 | % | |||||||||||
Noninterest expense | (47,163 | ) | (48,276 | ) | 1,113 | 2.31 | % | |||||||||
Income taxes | (25,593 | ) | (20,446 | ) | (5,147) | -25.17 | % | |||||||||
Net earnings | $ | 63,893 | $ | 50,056 | $ | 13,837 | 27.64 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.47 | $ | 0.37 | $ | 0.10 | ||||||||||
Diluted | $ | 0.47 | $ | 0.37 | $ | 0.10 | ||||||||||
Return on average assets | 1.79 | % | 1.42 | % | 0.37% | |||||||||||
Return on average shareholders’ equity | 12.75 | % | 9.92 | % | 2.83% | |||||||||||
Efficiency ratio | 40.26 | % | 40.64 | % | -0.38% | |||||||||||
Noninterest expense to average assets | 1.32 | % | 1.37 | % | -0.05% |
Three Months Ended | ||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | ||||||||||
(Dollars in thousands) | ||||||||||||
Net Income | $ | 63,893 | $ | 50,056 | $ | 37,980 | ||||||
Add: Amortization of intangible assets | 2,167 | 2,170 | 2,445 | |||||||||
Less: Tax effect of amortization of intangible assets (1) | (641 | ) | (642 | ) | (723 | ) | ||||||
Tangible net income | $ | 65,419 | $ | 51,584 | $ | 39,702 | ||||||
Average stockholders’ equity | $ | 2,032,676 | $ | 2,007,640 | $ | 2,006,464 | ||||||
Less: Average goodwill | (663,707 | ) | (663,707 | ) | (663,707 | ) | ||||||
Less: Average intangible assets | (32,590 | ) | (34,711 | ) | (41,732 | ) | ||||||
Average tangible common equity | $ | 1,336,379 | $ | 1,309,222 | $ | 1,301,025 | ||||||
Return on average equity, annualized | 12.75% | 9.92% | 7.61% | |||||||||
Return on average tangible common equity, annualized | 19.85% | 15.67% | 12.27% |
(1) | Tax effected at respective statutory rates. |
Three Months Ended March 31, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
Taxable | $ | 2,523,609 | $ | 8,968 | 1.47% | $ | 1,659,394 | $ | 9,825 | 2.37% | ||||||||||||||
Tax-advantaged | 30,158 | 191 | 3.02% | 38,086 | 224 | 3.36% | ||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||
Taxable | 580,478 | 2,811 | 1.95% | 469,394 | 2,698 | 2.30% | ||||||||||||||||||
Tax-advantaged | 199,348 | 1,129 | 2.74% | 189,522 | 1,300 | 3.32% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 217 | 4.98% | 17,688 | 332 | 7.55% | ||||||||||||||||||
Interest-earning deposits with other institutions | 1,664,193 | 413 | 0.10% | 261,041 | 613 | 0.94% | ||||||||||||||||||
Loans (2) | 8,270,282 | 91,795 | 4.50% | 7,482,805 | 92,117 | 4.95% | ||||||||||||||||||
Total interest-earning assets | 13,285,756 | 105,524 | 3.24% | 10,117,930 | 107,109 | 4.27% | ||||||||||||||||||
Total noninterest-earning assets | 1,220,899 | 1,257,870 | ||||||||||||||||||||||
Total assets | $ | 14,506,655 | $ | 11,375,800 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 4,026,248 | 1,198 | 0.12% | $ | 3,056,743 | 3,111 | 0.41% | ||||||||||||||||
Time deposits | 408,034 | 614 | 0.61% | 445,431 | 1,013 | 0.91% | ||||||||||||||||||
Total interest-bearing deposits | 4,434,282 | 1,812 | 0.17% | 3,502,174 | 4,124 | 0.47% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 590,170 | 244 | 0.17% | 504,585 | 679 | 0.54% | ||||||||||||||||||
Interest-bearing liabilities | 5,024,452 | 2,056 | 0.17% | 4,006,759 | 4,803 | 0.48% | ||||||||||||||||||
Noninterest-bearing deposits | 7,240,494 | 5,247,025 | ||||||||||||||||||||||
Other liabilities | 209,033 | 115,552 | ||||||||||||||||||||||
Stockholders’ equity | 2,032,676 | 2,006,464 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 14,506,655 | $ | 11,375,800 | ||||||||||||||||||||
Net interest income | $ | 103,468 | $ | 102,306 | ||||||||||||||||||||
Net interest spread—tax equivalent | 3.07% | 3.79% | ||||||||||||||||||||||
Net interest margin | 3.17% | 4.06% | ||||||||||||||||||||||
Net interest margin—tax equivalent | 3.18% | 4.08% |
(1) | Includes tax |
(2) | Includes loan fees of
|
(3) | Includes interest-bearing demand and money market accounts. |
Comparison of Three Months Ended March 31, 2021 Compared to 2020 Increase (Decrease) Due to | ||||||||||||||||
Volume | Rate | Rate/ Volume | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest income: | ||||||||||||||||
Available-for-sale | ||||||||||||||||
Taxable investment securities | $ | 4,541 | $ | (3,674 | ) | $ | (1,724 | ) | $ | (857 | ) | |||||
Tax-advantaged investment securities | (46 | ) | 17 | (4 | ) | (33 | ) | |||||||||
Held-to-maturity | ||||||||||||||||
Taxable investment securities | 609 | (404 | ) | (92 | ) | 113 | ||||||||||
Tax-advantaged investment securities | 65 | (224 | ) | (12 | ) | (171 | ) | |||||||||
Investment in FHLB stock | - | (115 | ) | - | (115 | ) | ||||||||||
Interest-earning deposits with other institutions | 3,266 | (543 | ) | (2,923 | ) | (200 | ) | |||||||||
Loans | 9,232 | (8,644 | ) | (910 | ) | (322 | ) | |||||||||
Total interest income | 17,667 | (13,587 | ) | (5,665 | ) | (1,585 | ) | |||||||||
Interest expense: | ||||||||||||||||
Savings deposits | 972 | (2,191 | ) | (694 | ) | (1,913 | ) | |||||||||
Time deposits | (63 | ) | (250 | ) | (86 | ) | (399 | ) | ||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 113 | (469 | ) | (79 | ) | (435 | ) | |||||||||
Total interest expense | 1,022 | (2,910 | ) | (859 | ) | (2,747 | ) | |||||||||
Net interest income | $ | 16,645 | $ | (10,677 | ) | $ | (4,806 | ) | $ | 1,162 | ||||||
Three Months Ended March 31, | Variance | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | $ | 3,985 | $ | 4,776 | $ | (791 | ) | -16.56% | ||||||||
Trust and investment services | 2,611 | 2,420 | 191 | 7.89% | ||||||||||||
Bankcard services | 350 | 577 | (227 | ) | -39.34% | |||||||||||
BOLI income | 4,624 | 2,059 | 2,565 | 124.58% | ||||||||||||
Swap fee income | 215 | 373 | (158 | ) | -42.36% | |||||||||||
Gain on OREO, net | 429 | 10 | 419 | 4190.00% | ||||||||||||
Other | 1,467 | 1,425 | 42 | 2.95% | ||||||||||||
Total noninterest income | $ | 13,681 | $ | 11,640 | $ | 2,041 | 17.53% | |||||||||
Three Months Ended March 31, | Variance | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | $ | 29,706 | $ | 30,877 | $ | (1,171) | -3.79% | |||||||||
Occupancy | 4,107 | 3,803 | 304 | 7.99% | ||||||||||||
Equipment | 756 | 1,034 | (278) | -26.89% | ||||||||||||
Professional services | 2,168 | 2,256 | (88) | -3.90% | ||||||||||||
Computer software expense | 2,844 | 2,816 | 28 | 0.99% | ||||||||||||
Marketing and promotion | 725 | 1,555 | (830) | -53.38% | ||||||||||||
Amortization of intangible assets | 2,167 | 2,445 | (278) | -11.37% | ||||||||||||
Telecommunications expense | 552 | 636 | (84) | -13.21% | ||||||||||||
Regulatory assessments | 1,059 | 148 | 911 | 615.54% | ||||||||||||
Insurance | 453 | 406 | 47 | 11.58% | ||||||||||||
Loan expense | 238 | 257 | (19) | -7.39% | ||||||||||||
OREO expense | 9 | 258 | (249) | -96.51% | ||||||||||||
Directors’ expenses | 379 | 351 | 28 | 7.98% | ||||||||||||
Stationery and supplies | 244 | 285 | (41) | -14.39% | ||||||||||||
Other | 1,756 | 1,514 | 242 | 15.98% | ||||||||||||
Total noninterest expense | $ | 47,163 | $ | 48,641 | $ | (1,478) | -3.04% | |||||||||
Noninterest expense to average assets | 1.32% | 1.72% | ||||||||||||||
Efficiency ratio (1) | 40.26% | 42.69% |
(1) | Noninterest expense divided by net interest income before provision for credit losses |
March 31, 2021 | ||||||||||||||||||||
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 | $ | 2,175,414 | $ | 38,333 | $ | (22,409 | ) | $ | 2,191,338 | 77.92% | ||||||||||
CMO/REMIC | 592,915 | 4,072 | (6,821 | ) | 590,166 | 20.99% | ||||||||||||||
Municipal bonds | 28,703 | 1,183 | - | 29,886 | 1.06% | |||||||||||||||
Other securities | 958 | - | - | 958 | 0.03% | |||||||||||||||
Total available-for-sale | $ | 2,797,990 | $ | 43,588 | $ | (29,230 | ) | $ | 2,812,348 | 100.00% | ||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 601,142 | $ | 3,860 | $ | (16,289 | ) | $ | 588,713 | 55.30% | ||||||||||
Mortgage-backed securities | 135,137 | 5,348 | (255 | ) | 140,230 | 12.43% | ||||||||||||||
CMO/REMIC | 133,556 | 2,832 | - | 136,388 | 12.29% | |||||||||||||||
Municipal bonds | 217,149 | 5,095 | (2,094 | ) | 220,150 | 19.98% | ||||||||||||||
�� | ||||||||||||||||||||
Total held-to-maturity | $ | 1,086,984 | $ | 17,135 | $ | (18,638 | ) | $ | 1,085,481 | 100.00% | ||||||||||
December 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 | $ | 1,857,030 | $ | 48,006 | $ | (101 | ) | $ | 1,904,935 | 79.41% | ||||||||||
CMO/REMIC | 457,548 | 5,515 | (249 | ) | 462,814 | 19.29% | ||||||||||||||
Municipal bonds | 28,707 | 1,578 | - | 30,285 | 1.26% | |||||||||||||||
Other securities | 889 | - | - | 889 | 0.04% | |||||||||||||||
Total available-for-sale | $ | 2,344,174 | $ | 55,099 | $ | (350 | ) | $ | 2,398,923 | 100.00% | ||||||||||
Investment securities held-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 98,663 | $ | 5,877 | $ | - | $ | 104,540 | 17.05% | |||||||||||
Mortgage-backed securities | 146,382 | 7,644 | (32 | ) | 153,994 | 25.30% | ||||||||||||||
CMO/REMIC | 145,309 | 5,202 | - | 150,511 | 25.11% | |||||||||||||||
Municipal bonds | 188,272 | 6,980 | (74 | ) | 195,178 | 32.54% | ||||||||||||||
Total held-to-maturity | $ | 578,626 | $ | 25,703 | $ | (106 | ) | $ | 604,223 | 100.00% | ||||||||||
March 31, 2021 | ||||||||||||||||||||||||
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 | $ | 1,327,126 | $ | (22,409 | ) | $ | - | $ | - | $ | 1,327,126 | $ | (22,409 | ) | ||||||||||
CMO/REMIC | 422,765 | (6,821 | ) | - | - | 422,765 | (6,821 | ) | ||||||||||||||||
Municipal bonds | - | - | - | - | - | - | ||||||||||||||||||
Total available-for-sale | $ | 1,749,891 | $ | (29,230 | ) | $ | - | $ | - | $ | 1,749,891 | $ | (29,230 | ) | ||||||||||
December 31, 2020 | ||||||||||||||||||||||||
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 | $ | 72,219 | $ | (101 | ) | $ | - | $ | - | $ | 72,219 | $ | (101 | ) | ||||||||||
CMO/REMIC | 96,974 | (249 | ) | - | - | 96,974 | (249 | ) | ||||||||||||||||
Municipal bonds | - | - | - | - | - | - | ||||||||||||||||||
Total available-for-sale | $ | 169,193 | $ | (350 | ) | $ | - | $ | - | $ | 169,193 | $ | (350 | ) | ||||||||||
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) | ||||||||||||
March 31, 2020 | December 31, 2019 | ||||||||
(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 | |||||
March 31, 2021 | December 31, 2020 | |||||||
(Dollars in thousands) | ||||||||
Commercial real estate | $ | 5,596,781 | $ | 5,501,509 | ||||
Construction | 96,356 | 85,145 | ||||||
SBA | 307,727 | 303,896 | ||||||
SBA - Paycheck Protection Program (PPP) | 897,724 | 882,986 | ||||||
Commercial and industrial | 753,708 | 812,062 | ||||||
Dairy & livestock and agribusiness | 261,088 | 361,146 | ||||||
Municipal lease finance receivables | 42,349 | 45,547 | ||||||
SFR mortgage | 255,400 | 270,511 | ||||||
Consumer and other loans | 81,924 | 86,006 | ||||||
Total loans, at amortized cost | 8,293,057 | 8,348,808 | ||||||
Less: Allowance for credit losses | (71,805 | ) | (93,692 | ) | ||||
Total loans and lease finance receivables, net | $ | 8,221,252 | $ | 8,255,116 | ||||
March 31, 2020 | ||||||||||||||||
Total Loans | Commercial Real Estate Loans | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Los Angeles County | $ | 3,297,399 | 44.2% | $ | 2,214,541 | 41.4% | ||||||||||
Central Valley | 1,120,563 | 15.0% | 899,197 | 16.8% | ||||||||||||
Orange County | 968,575 | 13.0% | 654,593 | 12.2% | ||||||||||||
Inland Empire | 987,534 | 13.2% | 845,578 | 15.8% | ||||||||||||
Central Coast | 457,225 | 6.1% | 361,910 | 6.8% | ||||||||||||
San Diego | 210,065 | 2.8% | 128,828 | 2.4% | ||||||||||||
Other California | 139,860 | 1.9% | 78,833 | 1.5% | ||||||||||||
Out of State | 284,931 | 3.8% | 164,445 | 3.1% | ||||||||||||
$ | 7,466,152 | 100.0% | $ | 5,347,925 | 100.0% | |||||||||||
March 31, 2021 | ||||||||||||||||
Total Loans | Commercial Real Estate Loans | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Los Angeles County | $ | 3,549,896 | 42.8% | $ | 2,232,034 | 39.9% | ||||||||||
Central Valley | 1,344,718 | 16.2% | 1,028,703 | 18.4% | ||||||||||||
Inland Empire | 1,168,494 | 14.1% | 865,648 | 15.5% | ||||||||||||
Orange County | 1,083,075 | 13.1% | 679,585 | 12.1% | ||||||||||||
Central Coast | 492,532 | 5.9% | 366,547 | 6.5% | ||||||||||||
San Diego | 232,277 | 2.8% | 170,091 | 3.0% | ||||||||||||
Other California | 137,582 | 1.7% | 87,463 | 1.6% | ||||||||||||
Out of State | 284,483 | 3.4% | 166,710 | 3.0% | ||||||||||||
$ | 8,293,057 | 100.0% | $ | 5,596,781 | 100.0% | |||||||||||
March 31, 2020 | ||||||||||||||||
Loan Balance | Percent | Percent Owner- Occupied (1) | Average Loan Balance | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Industrial | $ | 1,848,941 | 34.6% | 54.0% | $ | 1,377 | ||||||||||
Office | 940,513 | 17.6% | 25.3% | 1,512 | ||||||||||||
Retail | 783,047 | 14.6% | 11.8% | 1,635 | ||||||||||||
Multi-family | 586,221 | 11.0% | 0.5% | 1,642 | ||||||||||||
Medical | 279,466 | 5.2% | 45.7% | 1,791 | ||||||||||||
Secured by farmland (2) | 248,172 | 4.6% | 100.0% | 2,034 | ||||||||||||
Other (3) | 661,565 | 12.4% | 54.8% | 1,402 | ||||||||||||
Total commercial real estate | $ | 5,347,925 | 100.0% | 38.7% | $ | 1,506 | ||||||||||
March 31, 2021 | ||||||||||||||||
Loan Balance | Percent | Percent Owner- Occupied (1) | Average Loan Balance | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Industrial | $ | 1,915,437 | 34.2% | 52.4% | $ | 1,434 | ||||||||||
Office | 1,025,167 | 18.3% | 24.2% | 1,635 | ||||||||||||
Retail | 793,485 | 14.2% | 13.0% | 1,714 | ||||||||||||
Multi-family | 605,110 | 10.8% | 2.0% | 1,548 | ||||||||||||
Secured by farmland (2) | 327,363 | 5.8% | 96.6% | 2,154 | ||||||||||||
Medical | 293,909 | 5.3% | 42.6% | 1,729 | ||||||||||||
Other (3) | 636,310 | 11.4% | 57.4% | 1,398 | ||||||||||||
Total commercial real estate | $ | 5,596,781 | 100.0% | 38.8% | $ | 1,557 | ||||||||||
(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 |
March 31, 2020 | December 31, 2019 | |||||||
(Dollars in thousands) | ||||||||
Nonaccrual loans | $ | 6,428 | $ | 5,033 | ||||
Troubled debt restructured loans (nonperforming) | - | 244 | ||||||
OREO, net | 4,889 | 4,889 | ||||||
Total nonperforming assets | $ | 11,317 | $ | 10,166 | ||||
Troubled debt restructured performing loans | $ | 2,813 | $ | 3,112 | ||||
Percentage of nonperforming assets to total loans outstanding, net of deferred fees, and OREO | 0.15% | 0.13% | ||||||
Percentage of nonperforming assets to total assets | 0.10% | 0.09% |
March 31, 2021 | December 31, 2020 | |||||||
(Dollars in thousands) | ||||||||
Nonaccrual loans | $ | 13,769 | $ | 14,347 | ||||
Loans past due 90 days or more and still accruing interest | - | - | ||||||
Nonperforming troubled debt restructured loans (TDRs) | - | - | ||||||
Total nonperforming loans | 13,769 | 14,347 | ||||||
OREO, net | 1,575 | 3,392 | ||||||
Total nonperforming assets | $ | 15,344 | $ | 17,739 | ||||
Performing TDRs | $ | 5,813 | $ | 2,159 | ||||
Total nonperforming loans and performing TDRs | $ | 19,582 | $ | 16,506 | ||||
Percentage of nonperforming loans and performing TDRs to total loans, net of deferred fees | 0.24 | % | 0.20 | % | ||||
Percentage of nonperforming assets to total loans, net of deferred fees, and OREO | 0.18 | % | 0.21 | % | ||||
Percentage of nonperforming assets to total assets | 0.10 | % | 0.12 | % |
March 31, 2020 | December 31, 2019 | ||||||||||||||||
Balance | Number of Loans | Balance | Number of Loans | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Performing TDRs: | |||||||||||||||||
Commercial and industrial | $ | 68 | 2 | $ | 78 | 2 | |||||||||||
SBA | 524 | 1 | 536 | 1 | |||||||||||||
Real Estate: | |||||||||||||||||
Commercial real estate | 377 | 1 | 397 | 1 | |||||||||||||
Construction | - | - | - | - | |||||||||||||
SFR mortgage | 1,844 | 7 | 2,101 | 8 | |||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | |||||||||||||
Consumer and other | - | - | - | - | |||||||||||||
Total performing TDRs | $ | 2,813 | 11 | $ | 3,112 | 12 | |||||||||||
Nonperforming TDRs: | |||||||||||||||||
Commercial and industrial | $ | - | - | $ | - | - | |||||||||||
SBA | - | - | - | - | |||||||||||||
Real Estate: | |||||||||||||||||
Commercial real estate | - | - | - | - | |||||||||||||
Construction | - | - | - | - | |||||||||||||
SFR mortgage | - | - | - | - | |||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | |||||||||||||
Consumer and other | - | - | 244 | 1 | |||||||||||||
Total nonperforming TDRs | $ | - | - | $ | 244 | 1 | |||||||||||
Total TDRs | $ | 2,813 | 11 | $ | 3,356 | 13 | |||||||||||
March 31, 2021 | December 31, 2020 | |||||||||||||||
Balance | Number of Loans | Balance | Number of Loans | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Performing TDRs: | ||||||||||||||||
Commercial real estate | $ | 294 | 1 | $ | 320 | 1 | ||||||||||
Construction | - | - | - | - | ||||||||||||
SBA | - | - | - | - | ||||||||||||
Commercial and industrial | 4,482 | 3 | 43 | 1 | ||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | ||||||||||||
SFR mortgage | 1,037 | 5 | 1,796 | 7 | ||||||||||||
Consumer and other | - | - | - | - | ||||||||||||
Total performing TDRs | $ | 5,813 | 9 | $ | 2,159 | 9 | ||||||||||
Nonperforming TDRs: | ||||||||||||||||
Commercial real estate | $ | - | - | $ | - | - | ||||||||||
Construction | - | - | - | - | ||||||||||||
SBA | - | - | - | - | ||||||||||||
Commercial and industrial | - | - | - | - | ||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | ||||||||||||
SFR mortgage | - | - | - | - | ||||||||||||
Consumer and other | - | - | - | - | ||||||||||||
Total nonperforming TDRs | $ | - | - | $ | - | - | ||||||||||
Total TDRs | $ | 5,813 | 9 | $ | 2,159 | 9 | ||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
Commercial and industrial | $ | 1,703 | $ | 1,266 | $ | 1,550 | $ | 1,993 | $ | 8,388 | ||||||||||
SBA | 2,748 | 2,032 | 2,706 | 5,082 | 4,098 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 947 | 724 | 1,083 | 1,095 | 1,134 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | 864 | 878 | 888 | 2,720 | 2,894 | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 166 | 377 | 385 | 397 | 477 | |||||||||||||||
Total | $ | 6,428 | $ | 5,277 | $ | 6,612 | $ | 11,287 | $ | 16,991 | ||||||||||
% of Total gross loans | 0.09% | 0.07% | 0.09% | 0.15% | 0.22% | |||||||||||||||
Past due 30-89 days: | ||||||||||||||||||||
Commercial and industrial | $ | 665 | $ | 2 | $ | 756 | $ | 310 | $ | 369 | ||||||||||
SBA | 3,086 | 1,402 | 303 | - | 601 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 210 | - | 368 | - | 124 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | 233 | 249 | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | 166 | - | - | - | - | |||||||||||||||
Consumer and other loans | - | - | - | 22 | 101 | |||||||||||||||
Total | $ | 4,360 | $ | 1,653 | $ | 1,427 | $ | 332 | $ | 1,195 | ||||||||||
% of Total gross loans | 0.06% | 0.02% | 0.02% | 0.004% | 0.02% | |||||||||||||||
OREO: | ||||||||||||||||||||
SBA | $ | 797 | $ | 797 | $ | 444 | $ | - | $ | - | ||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 2,275 | 2,275 | 2,275 | 2,275 | 2,275 | |||||||||||||||
SFR mortgage | 1,817 | 1,817 | 6,731 | - | - | |||||||||||||||
Total | $ | 4,889 | $ | 4,889 | $ | 9,450 | $ | 2,275 | $ | 2,275 | ||||||||||
Total nonperforming, past due, and OREO | $ | 15,677 | $ | 11,819 | $ | 17,489 | $ | 13,894 | $ | 20,461 | ||||||||||
% of Total gross loans | 0.21% | 0.16% | 0.23% | 0.18% | 0.27% |
March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonperforming loans (1): | ||||||||||||||||||||
Commercial real estate | $ | 7,395 | $ | 7,563 | $ | 6,481 | $ | 2,628 | $ | 947 | ||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SBA | 2,412 | 2,273 | 1,724 | 1,598 | 2,748 | |||||||||||||||
Commercial and industrial | 2,967 | 3,129 | 1,822 | 1,222 | 1,703 | |||||||||||||||
Dairy & livestock and agribusiness | 259 | 785 | 849 | - | - | |||||||||||||||
SFR mortgage | 424 | 430 | 675 | 1,080 | 864 | |||||||||||||||
Consumer and other loans | 312 | 167 | 224 | 289 | 166 | |||||||||||||||
Total | $ | 13,769 | $ | 14,347 | $ | 11,775 | $ | 6,817 | $ | 6,428 | ||||||||||
% of Total loans | 0.17% | 0.17% | 0.14% | 0.08% | 0.09% | |||||||||||||||
Past due 30-89 days: | ||||||||||||||||||||
Commercial real estate | $ | 178 | $ | - | $ | - | $ | 4 | $ | 210 | ||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SBA | 258 | 1,965 | 66 | 214 | 3,086 | |||||||||||||||
Commercial and industrial | 952 | 1,101 | 3,627 | 630 | 665 | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | 882 | 166 | |||||||||||||||
SFR mortgage | 266 | - | - | 446 | 233 | |||||||||||||||
Consumer and other loans | 21 | - | 67 | 413 | - | |||||||||||||||
Total | $ | 1,675 | $ | 3,066 | $ | 3,760 | $ | 2,589 | $ | 4,360 | ||||||||||
% of Total loans | 0.02% | 0.04% | 0.04% | 0.03% | 0.06% | |||||||||||||||
OREO: | ||||||||||||||||||||
Commercial real estate | $ | 1,575 | $ | 1,575 | $ | 1,575 | $ | 2,275 | $ | 2,275 | ||||||||||
SBA | - | - | 797 | 797 | 797 | |||||||||||||||
SFR mortgage | - | 1,817 | 1,817 | 1,817 | 1,817 | |||||||||||||||
Total | $ | 1,575 | $ | 3,392 | $ | 4,189 | $ | 4,889 | $ | 4,889 | ||||||||||
Total nonperforming, past due, and OREO | $ | 17,019 | $ | 20,805 | $ | 19,724 | $ | 14,295 | $ | 15,677 | ||||||||||
% of Total loans | 0.21% | 0.25% | 0.23% | 0.17% | 0.21% |
(1) | As of June 30, 2020, nonperforming loans included $25,000 of commercial and industrial loans past due 90 days or more and still accruing interest. |
As of and For the Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Dollars in thousands) | ||||||||
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 | - | - | ||||||
SBA | - | (20 | ) | |||||
Commercial real estate | - | - | ||||||
Construction | - | - | ||||||
SFR mortgage | - | - | ||||||
Dairy & livestock and agribusiness | - | (78 | ) | |||||
Consumer and other loans | (86 | ) | (1 | ) | ||||
Total charge-offs | (86 | ) | (99 | ) | ||||
Recoveries: | ||||||||
Commercial and industrial | 2 | 110 | ||||||
SBA | - | 5 | ||||||
Commercial real estate | - | - | ||||||
Construction | 3 | 3 | ||||||
SFR mortgage | 206 | 68 | ||||||
Dairy & livestock and agribusiness | - | - | ||||||
Consumer and other loans | 16 | 1 | ||||||
Total recoveries | 227 | 187 | ||||||
Net recoveries | 141 | 88 | ||||||
Provision for credit losses | 12,000 | 1,500 | ||||||
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 | $ | 8,959 | ||||
Impact of adopting ASU 2016-13 | 41 | - | ||||||
Provision for unfunded loan commitments | - | - | ||||||
Reserve for unfunded loan commitments at end of period | $ | 9,000 | $ | 8,959 | ||||
Reserve for unfunded loan commitments to total unfunded loan commitments | 0.56% | 0.54% | ||||||
Amount of total loans at end of period (1) | $ | 7,466,152 | $ | 7,606,863 | ||||
Average total loans outstanding (1) | $ | 7,482,805 | $ | 7,662,573 | ||||
Net recoveries to average total loans | 0.002% | 0.001% | ||||||
Net recoveries to total loans at end of period | 0.002% | 0.001% | ||||||
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% |
As of and For the Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(Dollars in thousands) | ||||||||
Allowance for credit losses at beginning of period | $ | 93,692 | $ | 68,660 | ||||
Impact of adopting ASU 2016-13 | - | 1,840 | ||||||
Charge-offs: | ||||||||
Commercial real estate | - | - | ||||||
Construction | - | - | ||||||
SBA | - | - | ||||||
Commercial and industrial | (2,475) | - | ||||||
Dairy & livestock and agribusiness | - | - | ||||||
SFR mortgage | - | - | ||||||
Consumer and other loans | - | (86) | ||||||
Total charge-offs | (2,475) | (86) | ||||||
Recoveries: | ||||||||
Commercial real estate | - | - | ||||||
Construction | 3 | 3 | ||||||
SBA | 4 | - | ||||||
Commercial and industrial | 2 | 2 | ||||||
Dairy & livestock and agribusiness | - | - | ||||||
SFR mortgage | 79 | 206 | ||||||
Consumer and other loans | - | 16 | ||||||
Total recoveries | 88 | 227 | ||||||
Net (charge-offs) recoveries | (2,387) | 141 | ||||||
(Recapture of) provision for credit losses | (19,500) | 12,000 | ||||||
Allowance for credit losses at end of period | $ | 71,805 | $ | 82,641 | ||||
Summary of reserve for unfunded loan commitments: | ||||||||
Reserve for unfunded loan commitments at beginning of period | $ | 9,000 | $ | 8,959 | ||||
Impact of adopting ASU 2016-13 | - | 41 | ||||||
Provision for unfunded loan commitments | - | - | ||||||
Reserve for unfunded loan commitments at end of period | $ | 9,000 | $ | 9,000 | ||||
Reserve for unfunded loan commitments to total unfunded loan commitments | 0.48% | 0.56% | ||||||
Amount of total loans at end of period (1) | $ | 8,293,057 | $ | 7,466,152 | ||||
Average total loans outstanding (1) | $ | 8,270,282 | $ | 7,482,805 | ||||
Net (charge-offs) recoveries to average total loans | -0.029% | 0.002% | ||||||
Net (charge-offs) recoveries to total loans at end of period | -0.029% | 0.002% | ||||||
Allowance for credit losses to average total loans | 0.87% | 1.10% | ||||||
Allowance for credit losses to total loans at end of period | 0.87% | 1.11% | ||||||
Net (charge-offs) recoveries to allowance for credit losses | -3.32% | 0.17% | ||||||
Net (charge-offs) recoveries to (recapature of ) provision for credit losses | 12.24% | 1.18% |
(1) | Net of deferred loan origination fees, costs and |
March 31, 2020 | December 31, 2019 | |||||||||||||||
Balance | Percent | Balance | Percent | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest-bearing deposits | $ | 5,572,649 | 61.15% | $ | 5,245,517 | 60.26% | ||||||||||
Interest-bearing deposits | ||||||||||||||||
Investment checking | 454,153 | 4.98% | 454,565 | 5.22% | ||||||||||||
Money market | 2,217,656 | 24.34% | 2,158,161 | 24.79% | ||||||||||||
Savings | 417,708 | 4.58% | 400,377 | 4.60% | ||||||||||||
Time deposits | 451,438 | 4.95% | 446,308 | 5.13% | ||||||||||||
Total deposits | $ | 9,113,604 | 100.00% | $ | 8,704,928 | 100.00% | ||||||||||
March 31, 2021 | December 31, 2020 | |||||||||||||||
Balance | Percent | Balance | Percent | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest-bearing deposits | $ | 7,577,839 | 62.74% | $ | 7,455,387 | 63.52% | ||||||||||
Interest-bearing deposits | ||||||||||||||||
Investment checking | 567,062 | 4.69% | 517,976 | 4.42% | ||||||||||||
Money market | 2,996,378 | 24.81% | 2,869,348 | 24.45% | ||||||||||||
Savings | 530,046 | 4.39% | 492,096 | 4.19% | ||||||||||||
Time deposits | 407,330 | 3.37% | 401,694 | 3.42% | ||||||||||||
Total deposits | $ | 12,078,655 | 100.00% | $ | 11,736,501 | 100.00% | ||||||||||
Maturity by Period | ||||||||||||||||||||
Total | Less Than One Year | One Year Through Three Years | Four Years Through Five Years | Over Five Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Deposits (1) | $ | 9,113,604 | $ | 9,036,138 | $ | 66,253 | $ | 10,626 | $ | 587 | ||||||||||
Customer repurchase agreements (1) | 368,915 | 368,915 | - | - | - | |||||||||||||||
Junior subordinated debentures (1) | 25,774 | - | - | - | 25,774 | |||||||||||||||
Deferred compensation | 23,233 | 763 | 1,305 | 636 | 20,529 | |||||||||||||||
Operating leases | 20,826 | 6,706 | 9,109 | 3,423 | 1,588 | |||||||||||||||
Affordable housing investment | 3,159 | 2,285 | 814 | 47 | 13 | |||||||||||||||
Total | $ | 9,555,511 | $ | 9,414,807 | $ | 77,481 | $ | 14,732 | $ | 48,491 | ||||||||||
Maturity by Period | ||||||||||||||||||||
Total | Less Than One Year | One Year Through Three Years | Four Years Through Five Years | Over Five Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Deposits (1) | $ | 12,078,655 | $ | 12,041,777 | $ | 26,966 | $ | 9,293 | $ | 619 | ||||||||||
Customer repurchase agreements (1) | 506,346 | 506,346 | - | - | - | |||||||||||||||
Junior subordinated debentures (1) | 25,774 | - | - | - | 25,774 | |||||||||||||||
Deferred compensation | 22,482 | 674 | 956 | 622 | 20,230 | |||||||||||||||
Operating leases | 23,491 | 6,757 | 9,555 | 5,173 | 2,006 | |||||||||||||||
Affordable housing investment | 1,950 | 1,859 | 55 | 30 | 6 | |||||||||||||||
Total | $ | 12,658,698 | $ | 12,557,413 | $ | 37,532 | $ | 15,118 | $ | 48,635 | ||||||||||
(1) | Amounts exclude accrued interest. |
Maturity by Period | ||||||||||||||||||||
Total | Less Than One Year | One Year to Three Years | Four Years to Five Years | After Five Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commitment to extend credit: | ||||||||||||||||||||
Commercial and industrial | $ | 917,055 | $ | 614,928 | $ | 168,309 | $ | 5,196 | $ | 128,622 | ||||||||||
SBA | 396 | 362 | 4 | - | 30 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate/ | 247,308 | 42,254 | 74,850 | 121,004 | 9,200 | |||||||||||||||
Construction | 52,545 | 35,972 | 13,373 | - | 3,200 | |||||||||||||||
SFR Mortgage | 5,540 | 3,500 | - | - | 2,040 | |||||||||||||||
Dairy & livestock and agribusiness (1) | 208,932 | 113,190 | 94,949 | 393 | 400 | |||||||||||||||
Consumer and other loans | 123,928 | 14,114 | 6,985 | 5,018 | 97,811 | |||||||||||||||
Total commitment to extend credit | 1,555,704 | 824,320 | 358,470 | 131,611 | 241,303 | |||||||||||||||
Obligations under letters of credit | 50,159 | 45,415 | 4,496 | 248 | - | |||||||||||||||
Total | $ | 1,605,863 | $ | 869,735 | $ | 362,966 | $ | 131,859 | $ | 241,303 | ||||||||||
Maturity by Period | ||||||||||||||||||||
Less Than | One Year | Four Years | After | |||||||||||||||||
One | to Three | to Five | Five | |||||||||||||||||
Total | Year | Years | Years | Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commitment to extend credit: | ||||||||||||||||||||
Commercial real estate | $ | 329,913 | $ | 56,821 | $ | 110,606 | $ | 136,422 | $ | 26,064 | ||||||||||
Construction | 110,133 | 43,477 | 66,656 | - | - | |||||||||||||||
SBA | 98 | 28 | - | - | 70 | |||||||||||||||
SBA - PPP | - | - | - | - | - | |||||||||||||||
Commercial and industrial | 1,047,807 | 736,354 | 212,758 | 8,095 | 90,600 | |||||||||||||||
Dairy & livestock and agribusiness (1) | 219,510 | 148,395 | 71,115 | - | - | |||||||||||||||
SFR Mortgage | 3,877 | - | 500 | - | 3,377 | |||||||||||||||
Consumer and other loans | 127,634 | 10,231 | 11,628 | 3,697 | 102,078 | |||||||||||||||
Total commitment to extend credit | 1,838,972 | 995,306 | 473,263 | 148,214 | 222,189 | |||||||||||||||
Obligations under letters of credit | 50,835 | 46,971 | 3,864 | - | - | |||||||||||||||
Total | $ | 1,889,807 | $ | 1,042,277 | $ | 477,127 | $ | 148,214 | $ | 222,189 | ||||||||||
(1) | Total commitments to extend credit to agribusiness were |
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Capital Ratios | 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% | 4.00% | 5.00% | 11.60% | 11.44% | 12.33% | 12.19% | |||||||||||||||||||||
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% | 8.50% | 8.00% | 14.42% | 14.23% | 15.11% | 14.94% | |||||||||||||||||||||
Total risk-based capital ratio | 8.00% | 10.50% | 10.00% | 15.49% | 15.30% | 16.00% | 15.83% |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Adequately | Minimum Required | Well | CVB Financial | Citizens | CVB Financial | Citizens | |||||||||||||||||||||||||||||
Capitalized | Plus Capital | Capitalized | Corp. | Business | Corp. | Business | |||||||||||||||||||||||||||||
Capital Ratios | Ratios | Conservation Buffer | Ratios | Consolidated | Bank | Consolidated | Bank | ||||||||||||||||||||||||||||
Tier 1 leverage capital ratio | 4.00 | % | 4.00 | % | 5.00 | % | 9.83 | % | 9.45 | % | 9.90 | % | 9.58 | % | |||||||||||||||||||||
Common equity Tier 1 capital ratio | 4.50 | % | 7.00 | % | 6.50 | % | 14.87 | % | 14.55 | % | 14.77 | % | 14.57 | % | |||||||||||||||||||||
Tier 1 risk-based capital ratio | 6.00 | % | 8.50 | % | 8.00 | % | 15.15 | % | 14.55 | % | 15.06 | % | 14.57 | % | |||||||||||||||||||||
Total risk-based capital ratio | 8.00 | % | 10.50 | % | 10.00 | % | 16.05 | % | 15.46 | % | 16.24 | % | 15.75 | % |
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 | ||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(Dollars in thousands) | ||||||||
Average cash and cash equivalents | $ | 1,772,635 | $ | 409,885 | ||||
Percentage of total average assets | 12.22% | 3.60% | ||||||
Net cash provided by operating activities | $ | 46,938 | $ | 75,527 | ||||
Net cash (used in) provided by investing activities | (864,874) | 205,990 | ||||||
Net cash provided by financing activities | 385,075 | 238,704 | ||||||
Net (decrease) increase in cash and cash equivalents | $ | (432,861) | $ | 520,221 | ||||
Estimated Net Interest Income Sensitivity (1) | ||||||||||||||||||||
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) | |||||||||||||||
+ 200 basis points | 5.20% | 10.01% | + 200 basis points | 5.20% | 10.00% | |||||||||||||||
- 100 basis points | -0.50% | -1.60% | - 100 basis points | -2.10% | -4.60% |
Estimated Net Interest Income Sensitivity (1) | ||||||||||
March 31, 2021 | December 31, 2020 | |||||||||
24-month Period | 24-month Period | |||||||||
Interest Rate Scenario | 12-month Period | (Cumulative) | Interest Rate Scenario | 12-month Period | (Cumulative) | |||||
+ 200 basis points | 9.99% | 18.97% | + 200 basis points | 11.10% | 19.60% | |||||
- 100 basis points | -4.64% | -5.79% | - 100 basis points | -1.20% | -2.40% |
(1) | Percentage change from base scenario, but the current low interest rate environment limits the absolute decline in rates as the model does not assume rates go below zero. |
Instantaneous Rate Change | March 31, 2020 | December 31, 2019 | ||||||||||
100 bp decrease in interest rates | -28.3% | -17.5% | ||||||||||
100 bp increase in interest rates | 19.5% | 14.2% | ||||||||||
200 bp increase in interest rates | 34.5% | 25.5% | ||||||||||
300 bp increase in interest rates | 39.7% | 30.0% | ||||||||||
400 bp increase in interest rates | 46.8% | 36.2% |
Instantaneous Rate Change | March 31, 2021 | December 31, 2020 | ||||
100 bp decrease in interest rates | -11.1% | -21.0% | ||||
100 bp increase in interest rates | 9.7% | 16.1% | ||||
200 bp increase in interest rates | 18.6% | 28.4% | ||||
300 bp increase in interest rates | 23.4% | 34.4% | ||||
400 bp increase in interest rates | 29.8% | 41.6% |
Period | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Average Price Paid Per Share | Maximum Number of Shares Available for Repurchase Under the Plans or Programs | |||||||||||||||||
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 | |||
10.1 | Employee Offer Letter, executed March 24, 2021, for Mr. Brian T. Mauntel†(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 | Inline XBRL Taxonomy Extension Schema Document | |||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, |
* | Filed herewith |
** | Furnished herewith |
† | Indicates a management contract or compensation plan. |
(1) |
Incorporated herein by reference to Exhibit 10.1 to our Form 8-K filed with the SEC on |
CVB FINANCIAL CORP. | ||||||
(Registrant) | ||||||
Date: May | ||||||
/s/ E. Allen Nicholson | ||||||
E. Allen Nicholson | ||||||
Executive Vice President and Chief Financial Officer | ||||||
(Principal Financial Officer) |