Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | EAST WEST BANCORP INC | |
Entity Central Index Key | 1069157 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 143,846,255 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $1,886,199 | $1,039,885 | ||
Short-term investments | 325,350 | 338,714 | ||
Securities purchased under resale agreements | 1,550,000 | 1,225,000 | ||
Available-for-sale investment securities, at fair value | 2,841,085 | 2,626,365 | ||
Loans held for sale | 196,111 | 45,950 | ||
Loans (net of allowance for loan losses of $257,738 in 2015 and $261,679 in 2014) | 21,116,931 | [1] | 21,468,270 | [1] |
Other real estate owned, net | 32,692 | 32,111 | ||
Investment in Federal Home Loan Bank stock, at cost | 28,603 | 31,239 | ||
Investment in Federal Reserve Bank stock, at cost | 54,556 | 54,451 | ||
Investment in qualified affordable housing partnerships, net | 182,719 | 178,962 | [2] | |
Premises and equipment (net of accumulated depreciation of $88,826 in 2015 and $85,409 in 2014) | 176,438 | 180,900 | ||
Goodwill | 469,433 | 469,433 | ||
Other assets | 1,046,718 | 1,052,312 | [2] | |
TOTAL | 29,906,835 | 28,743,592 | [2] | |
Customer deposits: | ||||
Noninterest-bearing | 8,120,644 | 7,381,030 | ||
Interest-bearing | 17,042,189 | 16,627,744 | ||
Total deposits | 25,162,833 | 24,008,774 | ||
Federal Home Loan Bank advances | 317,777 | 317,241 | ||
Securities sold under repurchase agreements | 695,000 | 795,000 | ||
Long-term debt | 220,905 | 225,848 | ||
Accrued expenses and other liabilities | 571,557 | 540,618 | ||
Total liabilities | 26,968,072 | 25,887,481 | ||
COMMITMENTS AND CONTINGENCIES (Note 12) | ||||
STOCKHOLDERS' EQUITY | ||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 164,151,409 and 163,772,218 issued in 2015 and 2014, respectively; 143,820,549 and 143,582,229 shares outstanding in 2015 and 2014, respectively. | 164 | 164 | ||
Additional paid in capital | 1,685,699 | 1,677,767 | ||
Retained earnings | 1,675,234 | 1,604,141 | [2] | |
Treasury stock, at cost-20,330,860 shares in 2015 and 20,189,989 shares in 2014 | -435,889 | -430,198 | ||
Accumulated other comprehensive income, net of tax | 13,555 | 4,237 | ||
Total stockholders' equity | 2,938,763 | 2,856,111 | [2] | |
TOTAL | $29,906,835 | $28,743,592 | [2] | |
[1] | Loans net of ASC 310-30 discount. | |||
[2] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ||
Allowance for loan losses | $257,738 | $261,679 |
Premises and equipment, accumulated depreciation | $88,826 | $85,409 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 164,151,409 | 163,772,218 |
Common stock, shares outstanding | 143,820,549 | 143,582,229 |
Treasury stock, shares | 20,330,860 | 20,189,989 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
INTEREST AND DIVIDEND INCOME | |||
Loans receivable, including fees | $241,566 | $261,571 | |
Available-for-sale investment securities | 10,184 | 12,276 | |
Securities purchased under resale agreements | 4,849 | 4,853 | |
Investment in Federal Home Loan Bank and Federal Reserve Bank stock | 1,236 | 1,871 | |
Due from banks and short-term investments | 5,426 | 5,602 | |
Total interest and dividend income | 263,261 | 286,173 | |
INTEREST EXPENSE | |||
Customer deposits | 16,963 | 15,882 | |
Federal Home Loan Bank advances | 1,033 | 1,045 | |
Securities sold under repurchase agreements | 8,406 | 10,078 | |
Long-term debt | 1,142 | 1,202 | |
Total interest expense | 27,544 | 28,207 | |
Net interest income before provision for loan losses | 235,717 | 257,966 | |
Provision for loan losses | 4,987 | 6,933 | |
Net interest income after provision for loan losses | 230,730 | 251,033 | |
NONINTEREST INCOME (LOSS) | |||
Branch fees | 9,384 | 9,446 | |
Letters of credit fees and foreign exchange income | 8,706 | 6,856 | |
Ancillary loan fees | 2,656 | 2,472 | |
Wealth management fees | 5,179 | 3,028 | |
Derivative commission fee income | 5,306 | 2,760 | |
Changes in FDIC indemnification asset and receivable/payable | -8,422 | -53,634 | |
Net gains on sales of loans | 9,551 | 6,196 | |
Net gains on sales of available-for-sale investment securities | 4,404 | 3,418 | |
Other operating income | 7,362 | 4,542 | |
Total noninterest income (loss) | 44,126 | -14,916 | |
NONINTEREST EXPENSE | |||
Compensation and employee benefits | 64,253 | 59,277 | |
Occupancy and equipment expense | 15,443 | 15,851 | |
Amortization of tax credit and other investments | 6,299 | 1,492 | [1] |
Amortization of premiums on deposits acquired | 2,391 | 2,500 | |
Deposit insurance premiums and regulatory assessments | 5,656 | 5,702 | |
Loan related expenses | 2,340 | 2,575 | |
Other real estate owned (income) expense | -1,026 | 1,334 | |
Legal expense | 6,870 | 3,799 | |
Data processing | 2,617 | 8,200 | |
Other operating expenses | 23,187 | 19,224 | |
Total noninterest expense | 128,030 | 119,954 | [1] |
INCOME BEFORE INCOME TAXES | 146,826 | 116,163 | [1] |
INCOME TAX EXPENSE | 46,799 | 41,992 | [1] |
NET INCOME | $100,027 | $74,171 | [1] |
EARNINGS PER SHARE | |||
BASIC (in dollars per share) | $0.70 | $0.52 | [1] |
DILUTED (in dollars per share) | $0.69 | $0.52 | [1] |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||
BASIC (in shares) | 143,655 | 141,962 | |
DILUTED (in shares) | 144,349 | 142,632 | |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $0.20 | $0.18 | |
[1] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $100,027 | $74,171 | [1] |
Other comprehensive income, net of tax: | |||
Net change in unrealized gains on available-for-sale investment securities | 9,325 | 13,439 | |
Net change in unrealized losses on other investments | -7 | -17 | |
Other comprehensive income | 9,318 | 13,422 | |
COMPREHENSIVE INCOME | $109,345 | $87,593 | [1] |
[1] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid In Capital Common Stock | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total | |
In Thousands, unless otherwise specified | |||||||
BALANCE at Dec. 31, 2013 | [1] | $163 | $1,571,670 | $1,362,278 | ($537,279) | ($30,459) | $2,366,373 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | [1] | 74,171 | 74,171 | ||||
Other comprehensive income | 13,422 | 13,422 | |||||
Stock compensation costs | 3,180 | 3,180 | |||||
Tax benefit from stock compensation plans, net | 3,708 | 3,708 | |||||
Issuance of 379,191 and 356,187 shares of common stock pursuant to various stock compensation plans and agreements for the period ended March 31, 2015 and 2014, respectively | 283 | 283 | |||||
Cancellation of 7,233 shares of common stock due to forfeitures of issued restricted stock for the period ended March 31, 2014 | 127 | -127 | |||||
140,871 and 195,291 shares of restricted stock surrendered due to employee tax liability for the period ended March 31, 2015 and 2014, respectively | -7,074 | -7,074 | |||||
Common stock dividends | -25,950 | -25,950 | |||||
Issuance of 5,583,093 shares pursuant to MetroCorp acquisition | 73,044 | 117,786 | 190,830 | ||||
Warrant acquired pursuant to MetroCorp acquisition | 4,855 | 4,855 | |||||
BALANCE at Mar. 31, 2014 | [1] | 163 | 1,656,867 | 1,410,499 | -426,694 | -17,037 | 2,623,798 |
BALANCE at Dec. 31, 2014 | [1] | 164 | 1,677,767 | 1,604,141 | -430,198 | 4,237 | 2,856,111 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 100,027 | 100,027 | |||||
Other comprehensive income | 9,318 | 9,318 | |||||
Stock compensation costs | 3,954 | 3,954 | |||||
Tax benefit from stock compensation plans, net | 3,145 | 3,145 | |||||
Issuance of 379,191 and 356,187 shares of common stock pursuant to various stock compensation plans and agreements for the period ended March 31, 2015 and 2014, respectively | 833 | 833 | |||||
140,871 and 195,291 shares of restricted stock surrendered due to employee tax liability for the period ended March 31, 2015 and 2014, respectively | -5,691 | -5,691 | |||||
Common stock dividends | -28,934 | -28,934 | |||||
BALANCE at Mar. 31, 2015 | $164 | $1,685,699 | $1,675,234 | ($435,889) | $13,555 | $2,938,763 | |
[1] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Issuance of shares of common stock pursuant to various stock compensation plans and agreements, shares | 379,191 | 356,187 |
Cancellation of common stock due to forfeitures of issued restricted stock, shares | 7,233 | |
Restricted stock surrendered due to employee tax liability, shares | 140,871 | 195,291 |
Issuance of shares pursuant to MetroCorp acquisition, shares | 5,583,093 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $100,027 | $74,171 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 17,422 | 17,420 | [1] |
(Accretion) of discount and amortization of premiums, net | -18,600 | -56,020 | |
Changes in FDIC indemnification asset and receivable/payable | 8,422 | 53,634 | |
Stock compensation costs | 3,954 | 3,180 | |
Tax benefit from stock compensation plans, net | -3,145 | -3,708 | |
Provision for loan losses | 4,987 | 6,933 | |
Net gain on sales of available-for-sale investment securities, loans and other assets | -17,788 | -10,458 | |
Originations and purchases of loans held for sale | -60,492 | ||
Proceeds from sales and paydowns/payoffs in loans held for sale | 457 | 40,781 | |
Net (payments to) proceeds from FDIC shared-loss agreements | -1,810 | 4,139 | |
Net change in accrued interest receivable and other assets | 5,980 | 41,713 | [1] |
Net change in accrued expenses and other liabilities | 26,413 | -63,610 | |
Other net operating activities | -781 | 203 | |
Total adjustments | 25,511 | -26,285 | [1] |
Net cash provided by operating activities | 125,538 | 47,886 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisitions, net of cash paid | 138,465 | ||
Net (increase) decrease in: | |||
Loans | -454,194 | -734,560 | |
Short-term investments | 13,364 | -65,793 | |
Securities purchased under resale agreements | -425,000 | 100,000 | |
Purchases of: | |||
Available-for-sale investment securities | -517,477 | -138,149 | |
Loans receivable | -1,609 | -974 | |
Premises and equipment | -1,741 | ||
Investments in qualified affordable housing partnerships, tax credit and other investments | -20,861 | -27,510 | |
Proceeds from sale of: | |||
Available-for-sale investment securities | 180,501 | 330,231 | |
Loans receivable | 679,775 | 134,150 | |
Other real estate owned | 4,513 | 4,986 | |
Premises and equipment | 4,345 | ||
Repayments, maturities and redemptions of available-for-sale investment securities | 138,422 | 151,358 | |
Redemption of Federal Home Loan Bank stock | 2,636 | 12,930 | |
Surrender of life insurance policies | 156 | 14,769 | |
Other net investing activities | -105 | -5,512 | |
Net cash used in investing activities | -397,275 | -85,609 | |
Net increase (decrease) in: | |||
Deposits | 1,154,059 | 1,096,290 | |
Securities sold under repurchase agreements | -15,000 | ||
Proceeds from: | |||
Issuance of common stock pursuant to various stock plans and agreements | 833 | 283 | |
Payment for: | |||
Repayment of Federal Home Loan Bank advances | -10,000 | ||
Repayment of long-term debt | -5,000 | -15,310 | |
Repurchase of vested shares due to employee tax liability | -5,691 | -7,074 | |
Cash dividends | -29,295 | -26,139 | |
Tax benefit from stock compensation plans, net | 3,145 | 3,708 | |
Net cash provided by financing activities | 1,118,051 | 1,026,758 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 846,314 | 989,035 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 1,039,885 | 895,820 | |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 1,886,199 | 1,884,855 | |
Cash paid during the period for: | |||
Interest | 26,707 | 27,803 | |
Income tax payments, net of refunds | 18,458 | 70,723 | |
Noncash investing and financing activities: | |||
Loans transferred to loans held for sale, net | 820,473 | 478,982 | |
Transfers to other real estate owned | 3,828 | 15,628 | |
Issuance of stock related to acquisition | $190,830 | ||
[1] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | |
NOTE 1 — BASIS OF PRESENTATION | |
The consolidated financial statements in this Form 10-Q include the accounts of East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company”) and its wholly-owned subsidiaries, East West Bank and subsidiaries (the “Bank”) and East West Insurance Services, Inc. Intercompany transactions and balances have been eliminated in the consolidations. As of March 31, 2015, East West has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”), one of which was the result of the acquisition of MetroCorp Bancshares, Inc. (“MetroCorp”) during the first quarter of 2014, as discussed in Note 3 to the Company’s consolidated financial statements. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, the Trusts are not consolidated into the Company. | |
The interim consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry, are unaudited and reflect all adjustments that, in the opinion of management, are necessary for a fair statement of financial statements for the interim periods. Certain prior year balances and notes have been reclassified to conform to current period presentation. The Company restated prior period financial statements to reflect the impact of the retrospective application of Accounting Standards Update (“ASU”) 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. See Note 10 to the Company’s consolidated financial statements for details. The current period’s results of operations are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Events subsequent to the consolidated balance sheet date have been evaluated through the date the financial statements are issued for inclusion in the accompanying financial statements. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s 2014 Annual Report. | |
CURRENT_ACCOUNTING_DEVELOPMENT
CURRENT ACCOUNTING DEVELOPMENTS | 3 Months Ended |
Mar. 31, 2015 | |
CURRENT ACCOUNTING DEVELOPMENTS | |
CURRENT ACCOUNTING DEVELOPMENTS | |
NOTE 2 — CURRENT ACCOUNTING DEVELOPMENTS | |
New Accounting Pronouncements Adopted | |
In January 2014, the FASB issued ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. ASU 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the amortization expense in the income statement as a component of income tax expense. The Company adopted this guidance in the first quarter of 2015 with retrospective application to all periods presented. See Note 10 for details regarding this adoption. | |
In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. ASU 2014-04 clarifies when an in substance repossession or foreclosure occurs that would require a transfer of mortgage loans collateralized by residential real estate properties to other real estate owned (“OREO”). The guidance also requires disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in residential real estate mortgage loans that are in process of foreclosure. The Company adopted this guidance in the first quarter 2015 with prospective application. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements as this guidance was consistent with our prior practice. See Note 9 for details regarding this adoption. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance replaces existing revenue recognition guidance for contracts to provide goods or services to customers and amends existing guidance related to recognition of gains and losses on the sale of certain nonfinancial assets such as real estate. ASU 2014-09 establishes a principles-based approach to recognizing revenue that applies to all contracts other than those covered by other authoritative GAAP guidance. Quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows are also required. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016 and is applied on either a modified retrospective or full retrospective basis. Early adoption is not permitted. The Company is currently evaluating the impact on its consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis to improve targeted areas of the consolidation guidance and reduce the number of consolidation models. The Company may either apply the amendments retrospectively or use a modified retrospective approach. ASU 2015-02 is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 simplifies the presentation of debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts. The Company would apply the new guidance retrospectively to all prior periods. ASU 2015-03 is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted if the guidance is applied as of the beginning of the annual period of adoption. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. | |
BUSINESS_COMBINATION
BUSINESS COMBINATION | 3 Months Ended |
Mar. 31, 2015 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | |
NOTE 3 — BUSINESS COMBINATION | |
There were no business combinations during the quarter ended March 31, 2015. | |
On January 17, 2014, the Company completed the acquisition of MetroCorp, parent of MetroBank, N.A. and Metro United Bank. The purchase consideration was satisfied with two thirds East West stock and one third cash. The fair value of the consideration transferred in the acquisition of MetroCorp was $291.4 million, which consisted of 5,583,093 shares of East West common stock fair valued at $190.8 million at the date of acquisition and $89.4 million in cash, $2.4 million of additional cash to MetroCorp stock option holders and a MetroCorp warrant, fair valued at $8.8 million, assumed by the Company. The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. At the acquisition date, the Company recorded total fair value of assets and liabilities acquired of $1.70 billion and $1.41 billion, respectively. Goodwill from the acquisition represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is not deductible for tax purposes. The Company recorded $121.0 million of goodwill at the MetroCorp acquisition date. During the fourth quarter of 2014, the Company recorded additional tax and BOLI adjustments of $10.3 million and $0.7 million, respectively related to the MetroCorp acquisition, resulting in an increase to goodwill to $132.0 million. | |
Refer to Note 2 — Business Combinations in Item 8 of the Company’s 2014 Form 10-K for additional details related to the MetroCorp acquisition. | |
FAIR_VALUE_MEASUREMENT_AND_FAI
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
NOTE 4 — FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
In determining fair value, the Company uses various methods including market and income approaches. Based on these approaches, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy noted below. The hierarchy is based on the quality and reliability of the information used to determine fair values. The hierarchy gives the highest priority to quoted prices available in active markets and the lowest priority to data lacking transparency. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: | |||||||||||||||||
| Level 1 — Valuation is based on quoted prices for identical instruments traded in active markets. | ||||||||||||||||
| Level 2 — Valuation is based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data. | ||||||||||||||||
| Level 3 — Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities. | ||||||||||||||||
In determining the appropriate hierarchy levels, the Company performs an analysis of the assets and liabilities that are subject to fair value disclosure. These assets and liabilities are reported on the consolidated balance sheets at their fair values as of March 31, 2015 and December 31, 2014. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. | |||||||||||||||||
The following tables present both financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
Assets (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||
as of March 31, 2015 | |||||||||||||||||
($ in thousands) | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||
March 31, 2015 | for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||
U.S. Treasury securities | $ | 1,172,226 | $ | 1,172,226 | $ | — | $ | — | |||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 411,966 | — | 411,966 | — | |||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | |||||||||||||||||
Commercial mortgage-backed securities | 95,235 | — | 95,235 | — | |||||||||||||
Residential mortgage-backed securities | 727,356 | — | 727,356 | — | |||||||||||||
Municipal securities | 191,246 | — | 191,246 | — | |||||||||||||
Other residential mortgage-backed securities: | |||||||||||||||||
Investment grade | 51,501 | — | 51,501 | — | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Investment grade | 140,401 | — | 140,401 | — | |||||||||||||
Non-investment grade | 9,501 | — | 9,501 | — | |||||||||||||
Other securities | 41,653 | 32,477 | 9,176 | — | |||||||||||||
Total available-for-sale investment securities | $ | 2,841,085 | $ | 1,204,703 | $ | 1,636,382 | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign exchange options | $ | 3,683 | $ | — | $ | 3,683 | $ | — | |||||||||
Interest rate swaps and caps | $ | 66,060 | $ | — | $ | 66,060 | $ | — | |||||||||
Foreign exchange contracts | $ | 13,340 | $ | — | $ | 13,340 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Interest rate swaps on certificates of deposits | $ | -6,370 | $ | — | $ | -6,370 | $ | — | |||||||||
Interest rate swaps and caps | $ | -66,914 | $ | — | $ | -66,914 | $ | — | |||||||||
Foreign exchange contracts | $ | -13,080 | $ | — | $ | -13,080 | $ | — | |||||||||
Embedded derivative liabilities | $ | -3,412 | $ | — | $ | — | $ | (3,412 | ) | ||||||||
Assets (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||
as of December 31, 2014 | |||||||||||||||||
($ in thousands) | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||
December 31, 2014 | for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||
U.S. Treasury securities | $ | 873,435 | $ | 873,435 | $ | — | $ | — | |||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 311,024 | — | 311,024 | — | |||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | |||||||||||||||||
Commercial mortgage-backed securities | 141,420 | — | 141,420 | — | |||||||||||||
Residential mortgage-backed securities | 791,088 | — | 791,088 | — | |||||||||||||
Municipal securities | 250,448 | — | 250,448 | — | |||||||||||||
Other residential mortgage-backed securities: | |||||||||||||||||
Investment grade | 53,918 | — | 53,918 | — | |||||||||||||
Other commercial mortgage-backed securities: | |||||||||||||||||
Investment grade | 34,053 | — | 34,053 | — | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Investment grade | 115,182 | — | 115,182 | — | |||||||||||||
Non-investment grade | 14,681 | — | 8,153 | 6,528 | |||||||||||||
Other securities | 41,116 | 32,105 | 9,011 | — | |||||||||||||
Total available-for-sale investment securities | $ | 2,626,365 | $ | 905,540 | $ | 1,714,297 | $ | 6,528 | |||||||||
Derivative assets: | |||||||||||||||||
Foreign exchange options | $ | 6,136 | $ | — | $ | 6,136 | $ | — | |||||||||
Interest rate swaps and caps | $ | 41,534 | $ | — | $ | 41,534 | $ | — | |||||||||
Foreign exchange contracts | $ | 8,123 | $ | — | $ | 8,123 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Interest rate swaps on certificates of deposits | $ | -9,922 | $ | — | $ | -9,922 | $ | — | |||||||||
Interest rate swaps and caps | $ | -41,779 | $ | — | $ | -41,779 | $ | — | |||||||||
Foreign exchange contracts | $ | -9,171 | $ | — | $ | -9,171 | $ | — | |||||||||
Embedded derivative liabilities | $ | -3,392 | $ | — | $ | — | $ | (3,392 | ) | ||||||||
Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair values of the assets and liabilities became unobservable or observable, respectively, in the current marketplace. The Company’s policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period. During the three months ended March 31, 2015, the Company transferred $1.1 million of assets measured on a recurring basis out of Level 3 into Level 2 due to increased market liquidity and price observability on certain pooled trust preferred securities. There were no transfers of assets measured on a recurring basis in and out of Level 1, Level 2 or Level 3 during the three months ended March 31, 2014. | |||||||||||||||||
At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The following tables present a reconciliation of the beginning and ending balances for major asset and liability categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2015 and 2014: | |||||||||||||||||
2014 | |||||||||||||||||
2015 | |||||||||||||||||
($ in thousands) | Corporate Debt | Embedded | Corporate Debt | Embedded | |||||||||||||
Securities: | Derivatives | Securities: | Derivatives | ||||||||||||||
Non-Investment Grade | Liabilities | Non-Investment Grade | Liabilities | ||||||||||||||
Beginning balance, January 1 | $ | 6,528 | $ | -3,392 | $ | 6,371 | $ | (3,655 | ) | ||||||||
Total gains or (losses) for the period: | |||||||||||||||||
Included in earnings (1) | 960 | -20 | — | 257 | |||||||||||||
Included in other comprehensive income (unrealized)(2) | 922 | — | 434 | — | |||||||||||||
Purchases, issues, sales, settlements: | |||||||||||||||||
Purchases | — | — | — | — | |||||||||||||
Issues | — | — | — | — | |||||||||||||
Sales | -7,219 | — | — | — | |||||||||||||
Settlements | -98 | — | -88 | — | |||||||||||||
Transfer from investment grade to non-investment grade | — | — | — | — | |||||||||||||
Transfers in and/or out of Level 3 | -1,093 | — | — | — | |||||||||||||
Ending balance, March 31 | $ | — | $ | -3,412 | $ | 6,717 | $ | (3,398 | ) | ||||||||
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of March 31 | $ | — | $ | 20 | $ | — | $ | (257 | ) | ||||||||
-1 | Realized gains or losses of corporate debt securities and embedded derivative liabilities are included in net gains on sales of investment securities and other operating expense, respectively, in the consolidated statements of income. | ||||||||||||||||
-2 | Unrealized gains or losses on available-for-sale investment securities are reported in other comprehensive income, net of tax, in the consolidated statements of comprehensive income. | ||||||||||||||||
The following table presents quantitative information about significant unobservable inputs used in the valuation of assets and liabilities measured on a recurring basis classified as Level 3 as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
($ in thousands) | Valuation | Unobservable | Range of Inputs | Weighted | |||||||||||||
Fair Value | Technique(s) | Input(s) | Average | ||||||||||||||
Measurements | |||||||||||||||||
(Level 3) | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Embedded derivative liabilities | $ | (3,412 | ) | Discounted cash flow | Credit risk | 0.03% - 0.07% | 0.06% | ||||||||||
December 31, 2014 | |||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||
Corporate debt securities: | |||||||||||||||||
Non-investment grade | $ | 6,528 | Discounted cash flow | Constant prepayment rate | 0.00% - 1.00% | 0.73% | |||||||||||
Constant default rate | 0.75% - 1.20% | 0.87% | |||||||||||||||
Loss severity | 85.00% | 85.00% | |||||||||||||||
Discount margin | 4.50% - 7.50% | 6.94% | |||||||||||||||
Embedded derivative liabilities | $ | (3,392 | ) | Discounted cash flow | Credit risk | 0.12% - 0.14% | 0.13% | ||||||||||
Assets measured at fair value on a nonrecurring basis using significant unobservable inputs include certain non-purchased credit impaired loans (“Non-PCI loans”) and OREO. The inputs and assumptions for nonrecurring Level 3 fair value measurements include adjustments to external and internal appraisals for changes in the market, assumptions by appraiser embedded into appraisals, probability weighting of broker price opinions, and management’s adjustments for other relevant factors and market trends. See Note 9 for detailed discussion of non-PCI loans. | |||||||||||||||||
The following tables present assets measured at fair value on a nonrecurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
as of March 31, 2015 | |||||||||||||||||
($ in thousands) | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Non-PCI impaired loans: | |||||||||||||||||
Commercial Real Estate (“CRE”) | $ | 13,648 | $ | — | $ | — | $ | 13,648 | |||||||||
Commercial and Industrial (“C&I”) | 11,356 | — | — | 11,356 | |||||||||||||
Residential | 14,306 | — | — | 14,306 | |||||||||||||
Consumer | 107 | — | — | 107 | |||||||||||||
Total non-PCI impaired loans | $ | 39,417 | $ | — | $ | — | $ | 39,417 | |||||||||
OREO | $ | 1,676 | $ | — | $ | — | $ | 1,676 | |||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
as of December 31, 2014 | |||||||||||||||||
($ in thousands) | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Non-PCI impaired loans: | |||||||||||||||||
CRE | $ | 26,089 | $ | — | $ | — | $ | 26,089 | |||||||||
C&I | 16,581 | — | — | 16,581 | |||||||||||||
Residential | 25,034 | — | — | 25,034 | |||||||||||||
Consumer | 107 | — | — | 107 | |||||||||||||
Total non-PCI impaired loans | $ | 67,811 | $ | — | $ | — | $ | 67,811 | |||||||||
OREO | $ | 17,521 | $ | — | $ | — | $ | 17,521 | |||||||||
The following table presents fair value adjustments of certain assets measured on a nonrecurring basis recognized during the three months ended and still held as of March 31, 2015 and 2014: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
($ in thousands) | 2015 | 2014 | |||||||||||||||
Non-PCI impaired loans: | |||||||||||||||||
CRE | $ | 841 | $ | -464 | |||||||||||||
C&I | -2,470 | -6,530 | |||||||||||||||
Residential | -239 | -365 | |||||||||||||||
Consumer | — | — | |||||||||||||||
Total non-PCI impaired loans | $ | -1,868 | $ | -7,359 | |||||||||||||
OREO | $ | -277 | $ | -526 | |||||||||||||
The following table presents quantitative information about significant unobservable inputs used in the valuation of assets measured on a nonrecurring basis classified as Level 3 as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
($ in thousands) | Fair Value | Valuation | Unobservable | Range of Inputs | Weighted | ||||||||||||
Measurements | Technique(s) | Input(s) | Average | ||||||||||||||
(Level 3) | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Non-PCI impaired loans | $ | 3,578 | Discounted cash flow | Discount rate | 0% - 86% | 58% | |||||||||||
$ | 35,839 | Market comparables | Discount rate (1) | 0% - 100% | 7% | ||||||||||||
OREO | $ | 1,676 | Appraisal | Selling cost | 8% | 8% | |||||||||||
December 31, 2014 | |||||||||||||||||
Non-PCI impaired loans | $ | 11,499 | Discounted cash flow | Discount rate | 0% - 81% | 49% | |||||||||||
$ | 56,312 | Market comparables | Discount rate (1) | 0% - 100% | 4% | ||||||||||||
OREO | $ | 17,521 | Appraisal | Selling cost | 8% | 8% | |||||||||||
-1 | Discount rate is adjusted for factors such as liquidation cost of collateral and selling costs. | ||||||||||||||||
The following tables present the carrying and fair values per the fair value hierarchy of certain financial instruments, excluding those measured at fair value on a recurring basis, as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
($ in thousands) | Carrying | Level 1 | Level 2 | Level 3 | Estimated | ||||||||||||
Amount | Fair Value | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,886,199 | $ | 1,886,199 | $ | — | $ | — | $ | 1,886,199 | |||||||
Short-term investments | $ | 325,350 | $ | — | $ | 325,350 | $ | — | $ | 325,350 | |||||||
Securities purchased under resale agreements | $ | 1,550,000 | $ | — | $ | 1,597,101 | $ | — | $ | 1,597,101 | |||||||
Loans held for sale | $ | 196,111 | $ | — | $ | 196,111 | $ | — | $ | 196,111 | |||||||
Loans receivable, net | $ | 21,116,931 | $ | — | $ | — | $ | 20,905,743 | $ | 20,905,743 | |||||||
Investment in Federal Home Loan Bank stock | $ | 28,603 | $ | — | $ | 28,603 | $ | — | $ | 28,603 | |||||||
Investment in Federal Reserve Bank stock | $ | 54,556 | $ | — | $ | 54,556 | $ | — | $ | 54,556 | |||||||
Accrued interest receivable | $ | 86,186 | $ | — | $ | 86,186 | $ | — | $ | 86,186 | |||||||
Financial Liabilities: | |||||||||||||||||
Customer deposit accounts: | |||||||||||||||||
Demand, savings and money market deposits | $ | 18,786,462 | $ | — | $ | 18,786,462 | $ | — | $ | 18,786,462 | |||||||
Time deposits | $ | 6,376,371 | $ | — | $ | — | $ | 6,358,260 | $ | 6,358,260 | |||||||
Federal Home Loan Bank advances | $ | 317,777 | $ | — | $ | 334,286 | $ | — | $ | 334,286 | |||||||
Securities sold under repurchase agreements | $ | 695,000 | $ | — | $ | 751,270 | $ | — | $ | 751,270 | |||||||
Accrued interest payable | $ | 12,141 | $ | — | $ | 12,141 | $ | — | $ | 12,141 | |||||||
Long-term debt | $ | 220,905 | $ | — | $ | 207,906 | $ | — | $ | 207,906 | |||||||
December 31, 2014 | |||||||||||||||||
($ in thousands) | Carrying | Level 1 | Level 2 | Level 3 | Estimated | ||||||||||||
Amount | Fair Value | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,039,885 | $ | 1,039,885 | $ | — | $ | — | $ | 1,039,885 | |||||||
Short-term investments | $ | 338,714 | $ | — | $ | 338,714 | $ | — | $ | 338,714 | |||||||
Securities purchased under resale agreements | $ | 1,225,000 | $ | — | $ | 1,191,060 | $ | — | $ | 1,191,060 | |||||||
Loans held for sale | $ | 45,950 | $ | — | $ | 45,950 | $ | — | $ | 45,950 | |||||||
Loans receivable, net | $ | 21,468,270 | $ | — | $ | — | $ | 20,997,379 | $ | 20,997,379 | |||||||
Investment in Federal Home Loan Bank stock | $ | 31,239 | $ | — | $ | 31,239 | $ | — | $ | 31,239 | |||||||
Investment in Federal Reserve Bank stock | $ | 54,451 | $ | — | $ | 54,451 | $ | — | $ | 54,451 | |||||||
Accrued interest receivable | $ | 88,303 | $ | — | $ | 88,303 | $ | — | $ | 88,303 | |||||||
Financial Liabilities: | |||||||||||||||||
Customer deposit accounts: | |||||||||||||||||
Demand, savings and money market deposits | $ | 17,896,035 | $ | — | $ | 17,896,035 | $ | — | $ | 17,896,035 | |||||||
Time deposits | $ | 6,112,739 | $ | — | $ | — | $ | 6,095,217 | $ | 6,095,217 | |||||||
Federal Home Loan Bank advances | $ | 317,241 | $ | — | $ | 336,302 | $ | — | $ | 336,302 | |||||||
Securities sold under repurchase agreements | $ | 795,000 | $ | — | $ | 870,434 | $ | — | $ | 870,434 | |||||||
Accrued interest payable | $ | 11,303 | $ | — | $ | 11,303 | $ | — | $ | 11,303 | |||||||
Long-term debt | $ | 225,848 | $ | — | $ | 205,777 | $ | — | $ | 205,777 | |||||||
The following is a description of the valuation methodologies and significant assumptions used in estimating fair value of financial instruments. | |||||||||||||||||
Cash and Cash Equivalents — The carrying amount approximates fair value due to the short-term nature of these instruments. Due to the short-term nature of these instruments, the estimated fair value is classified as Level 1. | |||||||||||||||||
Short-Term Investments — The fair value of short-term investments generally approximates their book value due to their short maturities. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. | |||||||||||||||||
Securities purchased under resale agreements (“Resale Agreements”) — Resale agreements with original maturities of 90 days or less are included in cash and cash equivalents. The fair value of securities purchased under resale agreements with original maturities of more than 90 days is estimated by discounting the cash flows based on expected maturities or repricing dates utilizing estimated market discount rates. Due to the observable nature of the inputs used in deriving the estimated fair values, these instruments are classified as Level 2. | |||||||||||||||||
Available-for-Sale Investment Securities — When available, the Company uses quoted market prices to determine the fair value of available-for-sale investment securities; such items are classified as Level 1. Level 1 available-for-sale investment securities mainly include U.S. treasury securities. The fair values of other available-for-sale investment securities are generally determined by independent external pricing service providers who have experience in valuing these securities, or by average of quoted market prices obtained from independent external brokers. In obtaining such valuation information from third parties, the Company has reviewed the methodologies used to develop the resulting fair values. The available-for-sale investment securities valued using such methods are classified as Level 2. | |||||||||||||||||
Loans Held for Sale — The Company’s loans held for sale are carried at the lower of cost or fair value. These loans are comprised of single-family and student loans. The fair value of loans held for sale is derived from current market prices and comparative current sales. As such, the Company records any fair value adjustments on a nonrecurring basis. Loans held for sale are classified as Level 2. | |||||||||||||||||
Non-PCI Impaired Loans — The Company evaluates non-PCI impaired loans on a nonrecurring basis. The fair value of non-PCI impaired loans is measured using the market comparables technique. For CRE loans and C&I loans, the fair value is based on each loan’s observable market price or the fair value of the collateral less cost to sell, if the loan is collateral dependent. The fair value of collateral is based on third party appraisals or evaluations which are reviewed by the Company’s appraisal department. Updated appraisals and evaluations are obtained on a regular basis or at least annually. On a quarterly basis, all appraisals and evaluations of nonperforming assets are reviewed to assess the current carrying value and to ensure that the current carrying value is appropriate. For certain impaired loans, the Company utilizes the discounted cash flow approach and applies a discount rate derived from historical data. For impaired loans with an unpaid balance below a certain threshold, the Company applies historical loss rates to derive the fair value. The significant unobservable inputs used in the fair value measurement of non-PCI impaired loans are discount rates applied based on liquidation cost of collateral and selling costs. Non-PCI impaired loans are classified as Level 3. | |||||||||||||||||
Loans Receivable, net — The fair value of loans is determined based on a discounted cash flow approach considered for an exit price value. The discount rate is derived from the associated yield curve plus spreads, and reflects the offering rates in the market for loans with similar financial characteristics. No adjustments have been made for changes in credit within any of the loan portfolios. It is management’s opinion that the allowance for loan losses pertaining to performing and nonperforming loans results in a fair value valuation of credit for such loans. Due to the unobservable nature of the inputs used in deriving the estimated fair values, these instruments are classified as Level 3. | |||||||||||||||||
OREO — The Company’s OREO represents properties acquired through foreclosure or through full or partial satisfaction of loans receivable, which are recorded at estimated fair value less the cost to sell at the time of foreclosure and at the lower of cost or estimated fair value less the cost to sell subsequent to acquisition. The fair values of OREO properties are based on third party appraisals, broker price opinions or accepted written offers. Refer to the “Non-PCI Impaired Loans” section above for a detailed discussion on the Company’s policies and procedures related to appraisals and evaluations. The Company uses the market comparables valuation technique to measure the fair value of OREO properties. The significant unobservable input used is the selling cost. OREO properties are classified as Level 3. | |||||||||||||||||
Investment in Federal Home Loan Bank (“FHLB”) Stock and Federal Reserve Bank Stock — The carrying amounts of the Company’s investments in FHLB Stock and Federal Reserve Bank Stock approximate fair value. The valuation of these investments is classified as Level 2. Ownership of these securities is restricted to member banks and the securities do not have a readily determinable fair value. Purchases and sales of these securities are at par value. | |||||||||||||||||
Accrued Interest Receivable — The carrying amount approximates fair value due to the short-term nature of these instruments. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. | |||||||||||||||||
Foreign Exchange Options — The Company entered into foreign exchange option contracts with major investment firms in 2010. The settlement amount is determined based upon the performance of the Chinese currency Renminbi (“RMB”) relative to the U.S. Dollar (“USD”) over the 5-year term of the contracts. The performance amount is computed based on the average quarterly value of the RMB compared to the USD as compared to the initial value. The fair value of these derivative contracts is provided by third parties and is determined based on the change in the RMB and the volatility of the option over the life of the agreement. The option value is derived based on the volatility of the option, interest rate, currency rate and time remaining to maturity. The Company’s consideration of the counterparty’s credit risk resulted in a nominal adjustment to the valuation of the foreign exchange options as of March 31, 2015 and December 31, 2014. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of the option contracts is classified as Level 2. | |||||||||||||||||
Interest Rate Swaps and Caps — The Company enters into interest rate swap and cap contracts with institutional counterparties to hedge against interest rate swap and cap products offered to bank customers. These products allow borrowers to lock in attractive intermediate and long-term interest rates by entering into an interest rate swap or cap contract with the Company, resulting in the customer obtaining a synthetic fixed rate loan. The Company also enters into interest rate swap contracts with institutional counterparties to hedge against certificates of deposit issued. This product allows the Company to lock in attractive floating rate funding. The fair value of interest rate swap and cap contracts is based on a discounted cash flow approach. The counterparty’s credit risk is considered in the valuation of interest rate swaps and caps as of March 31, 2015 and December 31, 2014. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps and caps is classified as Level 2. | |||||||||||||||||
Foreign Exchange Contracts — The Company enters into short-term foreign exchange contracts to purchase/sell foreign currencies at set rates in the future. These contracts economically hedge against foreign exchange rate fluctuations. The Company also enters into contracts with institutional counterparties to hedge against foreign exchange products offered to bank customers. These products allow customers to hedge the foreign exchange risk of their deposits and loans denominated in foreign currencies. The Company assumes minimal foreign exchange rate risk as the contract with the customer and the contract with the institutional party mirror each other. The fair value is determined at each reporting period based on the change in the foreign exchange rate. Given the short-term nature of the contracts, the counterparties’ credit risks are considered nominal and resulted in no adjustments to the valuation of the short-term foreign exchange contracts as of March 31, 2015 and December 31, 2014. The valuation of these contracts is classified as Level 2 due to the observable nature of the inputs used in deriving the fair value. | |||||||||||||||||
Customer Deposits — The carrying amount approximates fair value for demand and interest checking deposits, savings deposits, and certain money market deposits as the amounts are payable on demand as of the balance sheet date. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. For time deposits, the fair value is based on the discounted value of contractual cash flows using the rates offered by the Company. Due to the unobservable nature of the inputs used in deriving the estimated fair values, time deposits are classified as Level 3. | |||||||||||||||||
FHLB Advances — The fair value of FHLB advances is estimated based on the discounted value of contractual cash flows, using rates currently offered by the FHLB of San Francisco for advances with similar remaining maturities at each reporting date. Due to the observable nature of the inputs used in deriving the estimated fair values, these instruments are classified as Level 2. | |||||||||||||||||
Securities under repurchase agreements (“Repurchase Agreements”) — For repurchase agreements with original maturities of 90 days or less, the carrying amount approximates fair value due to the short-term nature of these instruments. As of March 31, 2015 and December 31, 2014, all of the repurchase agreements were long-term in nature and the fair values of the repurchase agreements were calculated by discounting future cash flows based on expected maturities or repricing dates, utilizing estimated market discount rates, and taking into consideration the call features of each instrument. Due to the observable nature of the inputs used in deriving the estimated fair values, these instruments are classified as Level 2. | |||||||||||||||||
Accrued Interest Payable — The carrying amount approximates fair value due to the short-term nature of these instruments. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. | |||||||||||||||||
Long-Term Debt — The fair value of long-term debt is estimated by discounting the cash flows through maturity based on current market rates the Company would pay for new issuances. Due to the observable nature of the inputs used in deriving the estimated fair value, long-term debt is classified as Level 2. | |||||||||||||||||
Embedded Derivative Liabilities — During 2010, the Company entered into foreign exchange option contracts with major brokerage firms to economically hedge against foreign exchange fluctuations in certain certificates of deposits available to its customers. These certificates of deposits have a term of 5 years and pay interest based on the performance of the RMB relative to the USD. Under ASC 815, a certificate of deposit that pays interest based on changes in foreign exchange rates is a hybrid instrument with an embedded derivative that must be accounted for separately from the host contract (i.e., the certificate of deposit). The fair value of these embedded derivatives is based on the discounted cash flow approach. The liabilities are divided between the portion under FDIC insurance coverage and the non-insured portion. For the FDIC insured portion, the Company applied a risk premium comparable to an agency security risk premium. For the non-insured portion, the Company considered its own credit risk in determining the valuation by applying a risk premium based on the Company’s institutional credit rating. Total credit valuation adjustments on derivative liabilities were nominal as of March 31, 2015 and December 31, 2014. Increases (decreases), if any, of those inputs in isolation would result in a lower (higher) fair value measurement. The valuation of the embedded derivative liabilities falls within Level 3 of the fair value hierarchy since the significant inputs used in deriving the fair value of these derivative contracts are not directly observable. | |||||||||||||||||
The fair value estimates presented herein are based on pertinent information available to management as of each reporting date. Although the Company is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and therefore, current estimates of fair value may differ significantly from the amounts presented herein. | |||||||||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||
NOTE 5 —STOCK-BASED COMPENSATION | ||||||||||||
The Company issues stock options and restricted stock awards to employees under share-based compensation plans. During the three months ended March 31, 2015 and 2014, total compensation expense related to restricted stock awards reduced income before taxes by $4.0 million and $3.2 million, respectively. The net tax benefit recognized in equity for stock compensation plans was $3.1 million and $3.7 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||
As of March 31, 2015, there were 3,050,063 shares available to be issued, subject to the Company’s current 1998 Stock Incentive Plan, as amended. | ||||||||||||
Stock Options — The Company issues fixed stock options to certain employees, officers, and directors. Stock options are issued at the current market price on the date of grant with a four-year vesting period and contractual term of seven years. The Company issues new shares upon the exercise of stock options. The Company did not issue any stock options during the three months ended March 31, 2015 and 2014. | ||||||||||||
The following table presents the activity for the Company’s stock options as of and for the three months ended March 31, 2015: | ||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||
Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | ||||||||||
Price | Contractual | (In thousands) | ||||||||||
Term | ||||||||||||
Outstanding at beginning of period | 42,116 | $ | 20.75 | — | $ | — | ||||||
Granted | — | — | — | — | ||||||||
Exercised | -39,751 | 21.09 | — | — | ||||||||
Expired | — | — | — | — | ||||||||
Outstanding at end of period | 2,365 | $ | 14.95 | 0.77 years | $ | 60 | ||||||
Vested or expected to vest at end of period | 2,365 | $ | 14.95 | 0.77 years | $ | 60 | ||||||
Exercisable at end of period | 2,365 | $ | 14.95 | 0.77 years | $ | 60 | ||||||
The Company received $838 thousand and $283 thousand during the three months ended March 31, 2015 and 2014, respectively, in cash proceeds from stock option exercises. The intrinsic value of the options exercised was $693 thousand and $194 thousand for the three months ended March 31, 2015 and 2014, respectively. The net tax benefit recognized from stock option exercises was $291 thousand for the three months ended March 31, 2015 compared to $82 thousand for the three months ended March 31, 2014. | ||||||||||||
As of March 31, 2015, all stock options are fully vested and all compensation cost related to stock options has been recognized. | ||||||||||||
Restricted Stock Awards — In addition to stock options, the Company also grants restricted stock awards to directors, officers and employees. The restricted stock awards vest ratably in three years or cliff vest in three or five years of continued employment from the date of grant. Additionally, some of the restricted stock awards include a Company financial performance requirement for vesting. The Company becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock when the restrictions are released and the shares are issued. Restricted stock awards are forfeited if officers and employees terminate employment prior to the lapsing of restrictions or if established financial goals are not achieved. The Company records forfeitures of issued restricted stock as treasury share repurchases. | ||||||||||||
The following table presents a summary of the activity for the Company’s time-based and performance-based restricted stock awards as of March 31, 2015, including changes during the three months ended March 31, 2015: | ||||||||||||
March 31, 2015 | ||||||||||||
Restricted Stock Awards | ||||||||||||
Time-Based | Performance-Based | |||||||||||
Shares | Weighted | Shares | Weighted | |||||||||
Average | Average | |||||||||||
Price | Price | |||||||||||
Outstanding at beginning of period | 751,020 | $ | 30.61 | 518,553 | $ | 29.64 | ||||||
Granted | 411,802 | 38.85 | 149,284 | 39.95 | ||||||||
Vested | -207,495 | 23.27 | -144,445 | 22.05 | ||||||||
Forfeited | -13,119 | 34.05 | — | — | ||||||||
Outstanding at end of period | 942,208 | $ | 35.78 | 523,392 | $ | 35.64 | ||||||
There were no restricted stock grants to outside directors during the three months ended March 31, 2015 and 2014. | ||||||||||||
Restricted stock awards are valued at the closing price of the Company’s stock on the date of award. The weighted average fair values of time-based restricted stock awards granted during the three months ended March 31, 2015 and 2014 were $38.85 and $36.83, respectively. The weighted average fair value of performance-based restricted stock awards granted during the three months ended March 31, 2015 and 2014 were $39.95 and $36.85, respectively. The total fair value of time-based restricted stock awards vested during the three months ended March 31, 2015 and 2014 was $8.4 million and $14.6 million, respectively. The total fair value of performance-based restricted stock awards vested during the three months ended March 31, 2015 and 2014 were $5.8 million and $2.7 million, respectively. | ||||||||||||
As of March 31, 2015, total unrecognized compensation cost related to time-based and performance-based restricted stock awards amounted to $29.3 million and $12.3 million, respectively. This cost is expected to be recognized over a weighted average period of 2.41 years and 2.29 years, respectively. | ||||||||||||
SECURITIES_PURCHASED_UNDER_RES
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS | ||||||||||||||||||||
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS | ||||||||||||||||||||
NOTE 6 — SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS | ||||||||||||||||||||
Resale agreements | ||||||||||||||||||||
Resale agreements are recorded at the amounts at which the securities were acquired. The market values of the underlying securities collateralizing the related receivable of the resale agreements, including accrued interest, are monitored. Additional collateral may be requested by the Company from the counterparty when deemed appropriate. Gross resale agreements were $1.85 billion and $1.43 billion as of March 31, 2015 and December 31, 2014, respectively. The weighted average interest rates were 1.42% and 1.55% as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||
Repurchase agreements | ||||||||||||||||||||
Long-term repurchase agreements are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The collaterals for these agreements are mainly comprised of U.S. government agency and U.S. government sponsored enterprise debt and mortgage-backed securities. The Company may have to provide additional collateral for the repurchase agreements, as necessary. Gross repurchase agreements were $995.0 million as of March 31, 2015 and December 31, 2014. The weighted average interest rate was 3.70% as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
Balance Sheet Offsetting | ||||||||||||||||||||
The Company’s resale agreements and repurchase agreements are transacted under legally enforceable master repurchase agreements that give the Company, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets repurchase and resale transactions with the same counterparty on the consolidated balance sheets where it has a legally enforceable master netting agreement and when the transactions are eligible for netting under ASC 210-20-45. Collateral pledged consists of securities which are not netted on the consolidated balance sheets against the related collateralized liability. Collateral accepted includes securities that are not recognized on the consolidated balance sheets. Collateral accepted or pledged in resale and repurchase agreements with other financial institutions also may be sold or re-pledged by the secured party, but is usually delivered to and held by the third party trustees. The following tables present resale and repurchase agreements included on the consolidated balance sheets as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||
($ in thousands) | As of March 31, 2015 | |||||||||||||||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Gross Amounts | Assets Presented | Consolidated Balance Sheet | ||||||||||||||||||
Gross Amounts | Offset on the | on the | ||||||||||||||||||
of Recognized | Consolidated | Consolidated | Financial | Collateral | ||||||||||||||||
Assets | Assets | Balance Sheet | Balance Sheet | Instruments | Received | Net Amount | ||||||||||||||
Resale agreements | $ | 1,850,000 | $ | -300,000 | $ | 1,550,000 | $ | -350,000 | $ | -1,195,203 | $ | 4,797 | ||||||||
-1 | -2 | |||||||||||||||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Liabilities | Consolidated Balance Sheet | |||||||||||||||||||
Gross Amounts | Presented | |||||||||||||||||||
Gross Amounts | Offset on the | on the | ||||||||||||||||||
of Recognized | Consolidated | Consolidated | Financial | Collateral | ||||||||||||||||
Liabilities | Liabilities | Balance Sheet | Balance Sheet | Instruments | Posted | Net Amount | ||||||||||||||
Repurchase agreements | $ | 995,000 | $ | -300,000 | $ | 695,000 | $ | -350,000 | -1 | $ | -345,000 | -3 | $ | — | ||||||
($ in thousands) | As of December 31, 2014 | |||||||||||||||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Gross Amounts | Assets Presented | Consolidated Balance Sheet | ||||||||||||||||||
Gross Amounts | Offset on the | on the | ||||||||||||||||||
of Recognized | Consolidated | Consolidated | Financial | Collateral | ||||||||||||||||
Assets | Assets | Balance Sheet | Balance Sheet | Instruments | Received | Net Amount | ||||||||||||||
Resale agreements | $ | 1,425,000 | $ | -200,000 | $ | 1,225,000 | $ | -425,000 | $ | -797,172 | $ | 2,828 | ||||||||
-1 | -2 | |||||||||||||||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Liabilities | Consolidated Balance Sheet | |||||||||||||||||||
Gross Amounts | Presented | |||||||||||||||||||
Gross Amounts | Offset on the | on the | ||||||||||||||||||
of Recognized | Consolidated | Consolidated | Financial | Collateral | ||||||||||||||||
Liabilities | Liabilities | Balance Sheet | Balance Sheet | Instruments | Posted | Net Amount | ||||||||||||||
Repurchase agreements | $ | 995,000 | $ | -200,000 | $ | 795,000 | $ | -425,000 | -1 | $ | -370,000 | -3 | $ | — | ||||||
-1 | Includes financial instruments subject to enforceable master netting arrangements that are not permitted to be offset under ASC 210-20-45 but would be eligible for offsetting to the extent an event of default has occurred. | |||||||||||||||||||
-2 | Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. | |||||||||||||||||||
-3 | Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability owed to each counterparty. | |||||||||||||||||||
AVAILABLEFORSALE_INVESTMENT_SE
AVAILABLE-FOR-SALE INVESTMENT SECURITIES | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
AVAILABLE-FOR-SALE INVESTMENT SECURITIES | ||||||||||||||||||||
AVAILABLE-FOR-SALE INVESTMENT SECURITIES | ||||||||||||||||||||
NOTE 7 —AVAILABLE-FOR-SALE INVESTMENT SECURITIES | ||||||||||||||||||||
The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and fair value by major categories of available-for-sale investment securities: | ||||||||||||||||||||
($ in thousands) | Amortized | Gross | Gross | Fair | ||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Available-for-sale investment securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | 1,162,801 | $ | 9,586 | $ | -161 | $ | 1,172,226 | ||||||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 411,275 | 1,143 | -452 | 411,966 | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | ||||||||||||||||||||
Commercial mortgage-backed securities | 94,330 | 1,242 | -337 | 95,235 | ||||||||||||||||
Residential mortgage-backed securities | 717,693 | 11,274 | -1,611 | 727,356 | ||||||||||||||||
Municipal securities | 187,244 | 4,800 | -798 | 191,246 | ||||||||||||||||
Other residential mortgage-backed securities: | ||||||||||||||||||||
Investment grade (1) | 50,297 | 1,310 | -106 | 51,501 | ||||||||||||||||
Corporate debt securities: | ||||||||||||||||||||
Investment grade (1) | 141,140 | — | -739 | 140,401 | ||||||||||||||||
Non-investment grade (1) | 11,524 | — | -2,023 | 9,501 | ||||||||||||||||
Other securities | 41,543 | 436 | -326 | 41,653 | ||||||||||||||||
Total available-for-sale investment securities | $ | 2,817,847 | $ | 29,791 | $ | -6,553 | $ | 2,841,085 | ||||||||||||
December 31, 2014 | ||||||||||||||||||||
Available-for-sale investment securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | 873,101 | $ | 1,971 | $ | -1,637 | $ | 873,435 | ||||||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 311,927 | 490 | -1,393 | 311,024 | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | ||||||||||||||||||||
Commercial mortgage-backed securities | 140,957 | 1,056 | -593 | 141,420 | ||||||||||||||||
Residential mortgage-backed securities | 785,412 | 9,754 | -4,078 | 791,088 | ||||||||||||||||
Municipal securities | 245,408 | 6,202 | -1,162 | 250,448 | ||||||||||||||||
Other residential mortgage-backed securities: | ||||||||||||||||||||
Investment grade (1) | 52,694 | 1,359 | -135 | 53,918 | ||||||||||||||||
Other commercial mortgage-backed securities: | ||||||||||||||||||||
Investment grade (1) | 34,000 | 53 | — | 34,053 | ||||||||||||||||
Corporate debt securities: | ||||||||||||||||||||
Investment grade (1) | 116,236 | — | -1,054 | 115,182 | ||||||||||||||||
Non-investment grade (1) | 17,881 | — | -3,200 | 14,681 | ||||||||||||||||
Other securities | 41,589 | 243 | -716 | 41,116 | ||||||||||||||||
Total available-for-sale investment securities | $ | 2,619,205 | $ | 21,128 | $ | -13,968 | $ | 2,626,365 | ||||||||||||
-1 | Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody’s are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade. | |||||||||||||||||||
Realized Gains and Losses | ||||||||||||||||||||
The following table presents the proceeds, gross realized gains, and gross realized losses related to the sales of available-for-sale investment securities for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
($ in thousands) | 2015 | 2014 | ||||||||||||||||||
Proceeds from sales | $ | 180,501 | $ | 330,231 | ||||||||||||||||
Gross realized gains | $ | 4,404 | $ | 3,545 | ||||||||||||||||
Gross realized losses | $ | — | $ | 127 | -1 | |||||||||||||||
Related tax expense | $ | 1,850 | $ | 1,436 | ||||||||||||||||
-1 | The gross $127 thousand of losses resulted from the available-for-sale investment securities acquired from MetroCorp which were sold immediately after the acquisition closed. | |||||||||||||||||||
Declines in the fair value of securities below their cost that are deemed to be an other-than-temporary impairment (“OTTI”) are recognized in earnings to the extent the impairment is related to credit losses. The following table presents a rollforward of the amounts related to the OTTI credit losses recognized in earnings for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
($ in thousands) | 2015 | 2014 | ||||||||||||||||||
Beginning balance | $ | 112,338 | $ | 115,511 | ||||||||||||||||
Addition of OTTI that was not previously recognized | — | — | ||||||||||||||||||
Additional increases to the amount related to the credit loss for which an OTTI was previously recognized | — | — | ||||||||||||||||||
Reduction for securities sold | -5,650 | — | ||||||||||||||||||
Ending balance | $ | 106,688 | $ | 115,511 | ||||||||||||||||
The Company believes that it is not more likely than not that the Company will be required to sell the securities above before recovery of their amortized cost basis. No OTTI credit losses were recognized for the three months ended March 31, 2015 and 2014. For the three months ended March 31, 2015, the Company realized a gain of $960 thousand from the sale of a non-investment grade corporate debt security with previously recognized OTTI credit losses of $5.7 million. There were no sale transactions related to non-investment grade investment securities with previously recognized OTTI credit losses for the three months ended March 31, 2014. | ||||||||||||||||||||
Unrealized Losses | ||||||||||||||||||||
The following tables present the Company’s investment portfolio’s gross unrealized losses and related fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Available-for-sale investment securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | 61,684 | $ | -37 | $ | 50,860 | $ | -124 | $ | 112,544 | $ | -161 | ||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 144,114 | -383 | 24,927 | -69 | 169,041 | -452 | ||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | ||||||||||||||||||||
Commercial mortgage-backed securities | 14,119 | -141 | 13,541 | -196 | 27,660 | -337 | ||||||||||||||
Residential mortgage-backed securities | 40,969 | -97 | 103,488 | -1,514 | 144,457 | -1,611 | ||||||||||||||
Municipal securities | 26,905 | -335 | 15,783 | -463 | 42,688 | -798 | ||||||||||||||
Other residential mortgage-backed securities: | ||||||||||||||||||||
Investment grade | — | — | 6,985 | -106 | 6,985 | -106 | ||||||||||||||
Corporate debt securities: | ||||||||||||||||||||
Investment grade | — | — | 90,401 | -739 | 90,401 | -739 | ||||||||||||||
Non-investment grade | — | — | 9,501 | -2,023 | 9,501 | -2,023 | ||||||||||||||
Other securities | 8,674 | -326 | — | — | 8,674 | -326 | ||||||||||||||
Total available-for-sale investment securities | $ | 296,465 | $ | -1,319 | $ | 315,486 | $ | -5,234 | $ | 611,951 | $ | -6,553 | ||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Available-for-sale investment securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | 170,260 | $ | -266 | $ | 163,800 | $ | -1,371 | $ | 334,060 | $ | -1,637 | ||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 69,438 | -504 | 124,104 | -889 | 193,542 | -1,393 | ||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | ||||||||||||||||||||
Commercial mortgage-backed securities | 45,405 | -257 | 16,169 | -336 | 61,574 | -593 | ||||||||||||||
Residential mortgage-backed securities | 81,927 | -270 | 241,047 | -3,808 | 322,974 | -4,078 | ||||||||||||||
Municipal securities | 6,391 | -26 | 61,107 | -1,136 | 67,498 | -1,162 | ||||||||||||||
Other residential mortgage-backed securities: | ||||||||||||||||||||
Investment grade | — | — | 7,217 | -135 | 7,217 | -135 | ||||||||||||||
Corporate debt securities: | ||||||||||||||||||||
Investment grade | 25,084 | -12 | 90,098 | -1,042 | 115,182 | -1,054 | ||||||||||||||
Non-investment grade | — | — | 14,681 | -3,200 | 14,681 | -3,200 | ||||||||||||||
Other securities | 15,885 | -716 | — | — | 15,885 | -716 | ||||||||||||||
Total available-for-sale investment securities | $ | 414,390 | $ | -2,051 | $ | 718,223 | $ | -11,917 | $ | 1,132,613 | $ | -13,968 | ||||||||
At each reporting date, the Company examines all individual securities that are in an unrealized loss position for OTTI. Specific investment related factors, such as the nature of the investments, the severity and duration of the loss, the probability of collecting all amounts due, the analysis of the issuers of the securities and whether there has been any cause for default on the securities and any change in the rating of the securities by various rating agencies, are examined to assess impairment. Additionally, the Company evaluates whether the creditworthiness of the issuer calls the realization of contractual cash flows into question. The Company takes into consideration the financial resources, intent and its overall ability to hold the securities and not be required to sell them until their fair values recover. | ||||||||||||||||||||
The majority of the total unrealized losses related to securities are related to non-investment grade corporate debt securities, residential agency mortgage-backed securities, and municipal securities. As of March 31, 2015, non-investment grade corporate debt securities, residential agency mortgage-backed securities, and municipal securities represented less than 1%, 26%, and 7%, respectively, of the total available-for-sale investment securities portfolio. As of December 31, 2014, non-investment grade corporate debt securities, residential agency mortgage-backed securities, and municipal securities represented 1%, 30%, and 10%, respectively, of the total available-for-sale investment securities portfolio. The unrealized losses on these securities were primarily attributed to yield curve movement, together with the widened liquidity spread and credit spread. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. | ||||||||||||||||||||
Management believes the impairments detailed in the tables of gross unrealized losses above are temporary and are not impaired due to reasons of credit quality. Accordingly, no impairment loss has been recorded in the Company’s consolidated statements of income for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||
Available-for-Sale Investment Securities Maturities | ||||||||||||||||||||
The following table presents the scheduled maturities of available-for-sale investment securities as of March 31, 2015: | ||||||||||||||||||||
($ in thousands) | Amortized Cost | Fair Value | ||||||||||||||||||
Due within one year | $ | 435,764 | $ | 434,493 | ||||||||||||||||
Due after one year through five years | 1,275,954 | 1,289,312 | ||||||||||||||||||
Due after five years through ten years | 311,367 | 311,157 | ||||||||||||||||||
Due after ten years | 794,762 | 806,123 | ||||||||||||||||||
Total available-for-sale investment securities | $ | 2,817,847 | $ | 2,841,085 | ||||||||||||||||
Actual maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to prepay obligations. In addition, such factors as prepayments and interest rates may affect the yields on the carrying values of mortgage-backed securities. | ||||||||||||||||||||
Available-for-sale investment securities with a par value of $1.88 billion and $1.93 billion were pledged to secure public deposits, FHLB advances, repurchase agreements, the Federal Reserve Bank’s discount window, or for other purposes required or permitted by law as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||
NOTE 8 — DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||
The following table presents the total notional and fair values of the Company’s derivatives as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
($ in thousands) | Notional | Derivative | Derivative | Notional | Derivative | Derivative | ||||||||||||||
Amount | Assets (1) | Liabilities (1) | Amount | Assets (1) | Liabilities (1) | |||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps on certificates of deposit | $ | 129,096 | $ | — | $ | 6,370 | $ | 132,667 | $ | — | $ | 9,922 | ||||||||
Total derivatives designated as hedging instruments | $ | 129,096 | $ | — | $ | 6,370 | $ | 132,667 | $ | — | $ | 9,922 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange options | $ | 50,000 | $ | 3,683 | $ | — | $ | 85,614 | $ | 6,136 | $ | — | ||||||||
Embedded derivative liabilities | 47,794 | — | 3,412 | 47,838 | — | 3,392 | ||||||||||||||
Interest rate swaps and caps | 5,204,760 | 66,060 | 66,914 | 4,858,391 | 41,534 | 41,779 | ||||||||||||||
Foreign exchange contracts | 1,037,967 | 13,340 | 13,080 | 680,629 | 8,123 | 9,171 | ||||||||||||||
Total derivatives not designated as hedging instruments | $ | 6,340,521 | $ | 83,083 | $ | 83,406 | $ | 5,672,472 | $ | 55,793 | $ | 54,342 | ||||||||
-1 | Derivative assets are included in Other Assets. Derivative liabilities are included in Accrued Expenses and Other liabilities, and Deposits. | |||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||
Interest Rate Swaps on Certificates of Deposits — The Company is exposed to changes in the fair value of certain fixed rate certificates of deposits due to changes in the benchmark interest rate, London Interbank Offering Rate (“LIBOR”). Interest rate swaps designated as fair value hedges involve the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. The interest rate swaps and the related certificates of deposits have the same maturity dates. | ||||||||||||||||||||
In the first quarter of 2015, the Company terminated $3.6 million of interest rate swaps on certificates of deposits, as a result of certificate of deposit repurchases. As of March 31, 2015 and December 31, 2014, the total notional amounts of interest rate swaps on certificates of deposits were $129.1 million and $132.7 million, respectively. The fair value liabilities of the interest rate swaps were $6.4 million and $9.9 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||
The following table presents the net gains (losses) recognized in the consolidated statements of income for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
($ in thousands) | 2015 | 2014 | ||||||||||||||||||
Gains (losses) recorded in interest expense | ||||||||||||||||||||
Recognized on interest rate swaps | $ | 3,048 | $ | 2,704 | ||||||||||||||||
Recognized on certificates of deposits | -2,695 | (2,937 | ) | |||||||||||||||||
Net amount recognized on fair value hedges (ineffective portion) | $ | 353 | $ | (233 | ) | |||||||||||||||
Reduction in interest expense recognized on interest rate swaps | $ | 920 | $ | 1,824 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||
Foreign Exchange Options — During 2010, the Company entered into foreign exchange option contracts with major brokerage firms to economically hedge against foreign exchange fluctuations in certain certificates of deposits available to its customers. These certificates of deposits have a term of 5 years and pay interest based on the performance of the RMB relative to the USD. Under ASC 815, a certificate of deposit that pays interest based on changes in foreign exchange rates is a hybrid instrument with an embedded derivative that must be accounted for separately from the host contract (i.e., the certificate of deposit). In accordance with ASC 815, both the embedded derivative instruments and the freestanding foreign exchange option contracts are recorded at fair value. | ||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, the notional amounts of the foreign exchange options were $50.0 million and $85.6 million, respectively. As of both March 31, 2015 and December 31, 2014, the notional amounts of the embedded derivative liabilities were $47.8 million. The fair values of the foreign exchange options and the embedded derivative liabilities amounted to a $3.7 million asset and a $3.4 million liability, respectively, as of March 31, 2015. The fair values of the foreign exchange options and embedded derivative liabilities amounted to a $6.1 million asset and a $3.4 million liability, respectively, as of December 31, 2014. | ||||||||||||||||||||
Interest Rate Swaps and Caps — The Company enters into interest rate derivatives including interest rate swaps and caps with its customers to allow them to hedge against the risk of rising interest rates on their variable rate loans. To economically hedge against the interest rate risks in the products offered to its customers, the Company enters into mirror interest rate contracts with institutional counterparties. As of March 31, 2015, the total notional amounts of interest rate swaps and caps, including mirror transactions with institutional counterparties and the Company’s customers totaled $2.60 billion each for derivatives that were in an asset and a liability valuation position. As of December 31, 2014, the total notional amounts of interest rate swaps and caps, including mirror transactions with institutional counterparties and the Company’s customers totaled $2.45 billion for derivatives that were in an asset valuation position and $2.40 billion for derivatives that were in a liability valuation position. | ||||||||||||||||||||
The fair values of interest rate swap and cap contracts with institutional counterparties and the Company’s customers amounted to a $66.1 million asset and a $66.9 million liability as of March 31, 2015. The fair values of interest rate swap and cap contracts with institutional counterparties and the Company’s customers amounted to a $41.5 million asset and a $41.8 million liability as of December 31, 2014. | ||||||||||||||||||||
Foreign Exchange Contracts — The Company enters into short-term foreign exchange forward contracts on a regular basis to economically hedge against foreign exchange rate fluctuations. As of March 31, 2015 and December 31, 2014, the notional amounts of short-term foreign exchange contracts were $1.04 billion and $680.6 million, respectively. The fair values of the short-term foreign exchange contracts recorded were a $13.3 million asset and a $13.1 million liability as of March 31, 2015. The fair values of short-term foreign exchange contracts recorded were an $8.1 million asset and a $9.2 million liability as of December 31, 2014. | ||||||||||||||||||||
The following table presents the net gains (losses) recognized on the Company’s consolidated statements of income related to derivatives not designated as hedging instruments: | ||||||||||||||||||||
Location in | Three Months Ended March 31, | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
($ in thousands) | Statements of Income | 2015 | 2014 | |||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange options | Foreign exchange income | $ | 199 | $ | (119 | ) | ||||||||||||||
Foreign exchange options with embedded derivatives | Other operating expense | -141 | 1 | |||||||||||||||||
Interest rate swaps and caps | Other operating income | -594 | (936 | ) | ||||||||||||||||
Foreign exchange contracts | Foreign exchange income | 1,308 | (2,129 | ) | ||||||||||||||||
Total net gains (losses) | $ | 772 | $ | (3,183 | ) | |||||||||||||||
Credit-Risk-Related Contingent Features — Certain over-the-counter (“OTC”) derivative contracts of the Company contain early termination provisions that may require the Company to settle any outstanding balances upon the occurrence of a specified credit-risk-related event. These events, which are defined by the existing derivative contracts, primarily relate to downgrades in the credit rating of East West Bank to below investment grade. In the event that East West Bank’s credit rating is downgraded to below investment grade, no additional collateral would be required to be posted since the liabilities related to such contracts were fully collateralized as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
Offsetting of Derivatives | ||||||||||||||||||||
The Company has entered into agreements with counterparty financial institutions, which include master netting agreements. However, the Company has elected to account for all derivatives with counterparty institutions on a gross basis. The following tables present gross derivatives in the consolidated balance sheets and the respective collaterals received or pledged in the form of other financial instruments, which are generally marketable securities and/or cash. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of overcollateralization are not shown: | ||||||||||||||||||||
($ in thousands) | As of March 31, 2015 | |||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset on the | ||||||||||||||||||
Assets Presented | Consolidated Balance Sheet | |||||||||||||||||||
Assets | Gross Amounts | Offset on the | on the | Financial | Collateral | Net Amount | ||||||||||||||
of Recognized | Consolidated | Consolidated | Instruments | Received | ||||||||||||||||
Assets | Balance Sheet | Balance Sheet | ||||||||||||||||||
Derivatives | $ | 13,564 | $ | — | $ | 13,564 | $ | -6,002 | (1) | $ | -6,480 | (2) | $ | 1,082 | ||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Liabilities | Consolidated Balance Sheet | |||||||||||||||||||
Liabilities | Gross Amounts | Gross Amounts | Presented | Financial | Collateral Posted | Net Amount | ||||||||||||||
of Recognized | Offset on the | on the | Instruments | |||||||||||||||||
Liabilities | Consolidated | Consolidated | ||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||
Derivatives | $ | 79,890 | $ | — | $ | 79,890 | $ | -6,002 | (1) | $ | -72,018 | (3) | $ | 1,870 | ||||||
($ in thousands) | As of December 31, 2014 | |||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset on the | ||||||||||||||||||
Assets Presented | Consolidated Balance Sheet | |||||||||||||||||||
Assets | Gross Amounts | Offset on the | on the | Financial | Collateral | Net Amount | ||||||||||||||
of Recognized | Consolidated | Consolidated | Instruments | Received | ||||||||||||||||
Assets | Balance Sheet | Balance Sheet | ||||||||||||||||||
Derivatives | $ | 12,396 | $ | — | $ | 12,396 | $ | -5,725 | (1) | $ | -3,463 | (2) | $ | 3,208 | ||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Liabilities | Consolidated Balance Sheet | |||||||||||||||||||
Liabilities | Gross Amounts | Gross Amounts | Presented | Financial | Collateral Posted | Net Amount | ||||||||||||||
of Recognized | Offset on the | on the | Instruments | |||||||||||||||||
Liabilities | Consolidated | Consolidated | ||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||
Derivatives | $ | 56,505 | $ | — | $ | 56,505 | $ | -5,725 | (1) | $ | -49,951 | (3) | $ | 829 | ||||||
-1 | Represents the netting of derivative receivable and payable balance for the same counterparty under enforceable master netting arrangements if the Company has elected to net. | |||||||||||||||||||
-2 | Represents $6.5 million and $3.5 million of cash collateral received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||
-3 | Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements. Includes approximately $19.0 million and $12.8 million of cash collateral posted as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||
Refer to Note 4 for fair value measurement disclosures on derivatives. | ||||||||||||||||||||
LOANS_RECEIVABLE_AND_ALLOWANCE
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||||
NOTE 9 — LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||||
The Company’s loan portfolio includes originated and purchased loans. Originated and purchased loans, for which there was no evidence of credit deterioration at their acquisition date, are referred to collectively as Non-PCI loans. PCI loans are accounted for in accordance with ASC Subtopic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. A purchased loan is deemed to be credit impaired when there is evidence of credit deterioration since its origination and it is probable at the acquisition date that the Company would be unable to collect all contractually required payments. PCI loans consist of loans acquired with deteriorated quality from the United Commercial Bank (“UCB”) FDIC assisted acquisition on November 6, 2009, the Washington First International Bank (“WFIB”) FDIC assisted acquisition on June 11, 2010 and, to a lesser extent, a small portion of loans acquired from the MetroCorp acquisition on January 17, 2014. Refer to Note 3 — Business Combination, included in this report, for further details on the MetroCorp acquisition and Note 8 — Covered Assets and FDIC Indemnification Asset of the Company’s 2014 Form 10-K for additional details related to the WFIB and UCB acquisitions. | |||||||||||||||||||||||||||||
The following table presents the composition of the Company’s non-PCI and PCI loans as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
($ in thousands) | Non-PCI Loans | PCI Loans (1) | Total (1) | Non-PCI Loans | PCI Loans (1) | Total (1) | |||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income Producing | $ | 5,802,931 | $ | 652,246 | $ | 6,455,177 | $ | 5,568,046 | $ | 688,013 | $ | 6,256,059 | |||||||||||||||||
Construction | 358,118 | 9,342 | 367,460 | 319,843 | 12,444 | 332,287 | |||||||||||||||||||||||
Land | 209,992 | 12,792 | 222,784 | 214,327 | 16,840 | 231,167 | |||||||||||||||||||||||
Total CRE | 6,371,041 | 674,380 | 7,045,421 | 6,102,216 | 717,297 | 6,819,513 | |||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 6,799,149 | 72,301 | 6,871,450 | 7,097,853 | 83,336 | 7,181,189 | |||||||||||||||||||||||
Trade finance | 844,090 | 5,224 | 849,314 | 889,728 | 6,284 | 896,012 | |||||||||||||||||||||||
Total C&I | 7,643,239 | 77,525 | 7,720,764 | 7,987,581 | 89,620 | 8,077,201 | |||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 3,298,775 | 214,019 | 3,512,794 | 3,647,262 | 219,519 | 3,866,781 | |||||||||||||||||||||||
Multifamily | 1,240,359 | 244,066 | 1,484,425 | 1,184,017 | 265,891 | 1,449,908 | |||||||||||||||||||||||
Total residential | 4,539,134 | 458,085 | 4,997,219 | 4,831,279 | 485,410 | 5,316,689 | |||||||||||||||||||||||
Consumer | 1,584,168 | 27,996 | 1,612,164 | 1,483,956 | 29,786 | 1,513,742 | |||||||||||||||||||||||
Total loans | $ | 20,137,582 | $ | 1,237,986 | $ | 21,375,568 | $ | 20,405,032 | $ | 1,322,113 | $ | 21,727,145 | |||||||||||||||||
Unearned fees, premiums, and discounts, net | -899 | — | -899 | 2,804 | — | 2,804 | |||||||||||||||||||||||
Allowance for loan losses | -257,095 | -643 | -257,738 | -260,965 | -714 | -261,679 | |||||||||||||||||||||||
Loans, net | $ | 19,879,588 | $ | 1,237,343 | $ | 21,116,931 | $ | 20,146,871 | $ | 1,321,399 | $ | 21,468,270 | |||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
The Company’s CRE lending activities include loans to finance income-producing properties, construction and land loans. The Company’s C&I lending activities include commercial business financing for small and middle-market businesses in a wide spectrum of industries. Included in commercial business loans are loans for working capital, accounts receivable lines, inventory lines, Small Business Administration loans and lease financing. The Company also offers a variety of international trade finance services and products, including letters of credit, revolving lines of credit, import loans, bankers’ acceptances, working capital lines, domestic purchase financing and pre-export financing. | |||||||||||||||||||||||||||||
The Company’s residential single-family loans are primarily comprised of adjustable rate (“ARM”) first mortgage loans secured by one-to-four unit residential properties. The Company’s ARM residential single-family loan programs generally have a one-year or three-year initial fixed period. The Company’s residential multifamily loans are primarily comprised of variable rate loans that have a six-month or three-year initial fixed period. As of March 31, 2015 and December 31, 2014, consumer loans were primarily composed of home equity lines of credit (“HELOCs”). | |||||||||||||||||||||||||||||
All loans originated are subject to the Company’s underwriting guidelines and loan origination standards. Management believes that the Company’s underwriting criteria and procedures adequately consider the unique risks which may come from these products. The Company conducts a variety of quality control procedures and periodic audits, including review of criteria for lending and legal requirements, to ensure it is in compliance with its origination standards. | |||||||||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, loans totaling $14.79 billion and $14.66 billion, respectively, were pledged to secure borrowings and to provide additional borrowing capacity from the FHLB and the Federal Reserve Bank. | |||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||
All loans are subject to the Company’s internal and external credit review and monitoring. Loans are risk rated based on analysis of the current state of the borrower’s credit quality. The analysis of credit quality includes a review of all repayment sources, the borrower’s current payment performance/delinquency, current financial and liquidity status and all other relevant information. For residential single-family loans, payment performance/delinquency is the driving indicator for the risk ratings. However, the risk ratings remain the overall credit quality indicator for the Company as well as the credit quality indicator utilized for estimating the appropriate allowance for loan losses. The Company utilizes an eight grade risk rating system, where a higher grade represents a higher level of credit risk. The eight grade risk rating system can be generally classified by the following categories: Pass, Watch, Special Mention, Substandard, Doubtful and Loss. The risk ratings reflect the relative strength of the repayment sources. | |||||||||||||||||||||||||||||
Pass and Watch loans are generally considered to have sufficient sources of repayment in order to repay the loan in full in accordance with all terms and conditions. These borrowers may have some credit risks that require monitoring, but full repayments are expected. Special Mention loans are considered to have potential weaknesses that warrant closer attention by management. Special Mention is considered a transitory grade. If any potential weaknesses are resolved, the loan is upgraded to a Pass or Watch grade. If negative trends in the borrower’s financial status or other information indicates that the repayment sources may become inadequate, the loan is downgraded to a Substandard grade. Substandard loans are considered to have well-defined weaknesses that jeopardize the full and timely repayment of the loan. Substandard loans have a distinct possibility of loss if the deficiencies are not corrected. Additionally, when management has assessed a potential for loss but a distinct possibility of loss is not recognizable, the loan is still classified as Substandard. Doubtful loans have insufficient sources of repayment and a high probability of loss. Loss loans are considered to be uncollectible and of such little value that they are no longer considered bankable assets. These internal risk ratings are reviewed routinely and adjusted due to changes in the borrowers’ status and likelihood of loan repayment. | |||||||||||||||||||||||||||||
The following tables present the credit risk rating for non-PCI loans by portfolio segment as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
($ in thousands) | Pass/Watch | Special | Substandard | Doubtful | Loss | Total Non-PCI | |||||||||||||||||||||||
Mention | Loans | ||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 5,488,698 | $ | 56,245 | $ | 257,988 | $ | — | $ | — | $ | 5,802,931 | |||||||||||||||||
Construction | 353,799 | 703 | 3,616 | — | — | 358,118 | |||||||||||||||||||||||
Land | 187,364 | 5,701 | 16,927 | — | — | 209,992 | |||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 6,573,081 | 93,302 | 132,286 | 426 | 54 | 6,799,149 | |||||||||||||||||||||||
Trade finance | 788,864 | 19,726 | 35,500 | — | — | 844,090 | |||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 3,277,085 | 3,595 | 18,095 | — | — | 3,298,775 | |||||||||||||||||||||||
Multifamily | 1,162,798 | 4,906 | 72,655 | — | — | 1,240,359 | |||||||||||||||||||||||
Consumer | 1,581,116 | 336 | 2,716 | — | — | 1,584,168 | |||||||||||||||||||||||
Total | $ | 19,412,805 | $ | 184,514 | $ | 539,783 | $ | 426 | $ | 54 | $ | 20,137,582 | |||||||||||||||||
($ in thousands) | Pass/Watch | Special | Substandard | Doubtful | Loss | Total Non-PCI | |||||||||||||||||||||||
Mention | Loans | ||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 5,243,640 | $ | 54,673 | $ | 269,733 | $ | — | $ | — | $ | 5,568,046 | |||||||||||||||||
Construction | 310,259 | 11 | 9,573 | — | — | 319,843 | |||||||||||||||||||||||
Land | 185,220 | 5,701 | 23,406 | — | — | 214,327 | |||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 6,836,914 | 130,319 | 130,032 | 533 | 55 | 7,097,853 | |||||||||||||||||||||||
Trade finance | 845,889 | 13,031 | 30,808 | — | — | 889,728 | |||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 3,627,491 | 3,143 | 16,628 | — | — | 3,647,262 | |||||||||||||||||||||||
Multifamily | 1,095,982 | 5,124 | 82,911 | — | — | 1,184,017 | |||||||||||||||||||||||
Consumer | 1,480,208 | 1,005 | 2,743 | — | — | 1,483,956 | |||||||||||||||||||||||
Total | $ | 19,625,603 | $ | 213,007 | $ | 565,834 | $ | 533 | $ | 55 | $ | 20,405,032 | |||||||||||||||||
The following tables present the credit risk rating for PCI loans by portfolio segment as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
($ in thousands) | Pass/Watch | Special | Substandard | Doubtful | Total PCI Loans | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 517,827 | $ | 6,164 | $ | 128,255 | $ | — | $ | 652,246 | |||||||||||||||||||
Construction | 585 | 1,739 | 7,018 | — | 9,342 | ||||||||||||||||||||||||
Land | 5,080 | 5,433 | 2,279 | — | 12,792 | ||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 62,858 | 997 | 8,446 | — | 72,301 | ||||||||||||||||||||||||
Trade finance | 3,535 | — | 1,689 | — | 5,224 | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 208,238 | 745 | 5,036 | — | 214,019 | ||||||||||||||||||||||||
Multifamily | 211,060 | — | 33,006 | — | 244,066 | ||||||||||||||||||||||||
Consumer | 27,330 | 115 | 551 | — | 27,996 | ||||||||||||||||||||||||
Total (1) | $ | 1,036,513 | $ | 15,193 | $ | 186,280 | $ | — | $ | 1,237,986 | |||||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
($ in thousands) | Pass/Watch | Special | Substandard | Doubtful | Total PCI Loans | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 534,015 | $ | 9,960 | $ | 144,038 | $ | — | $ | 688,013 | |||||||||||||||||||
Construction | 589 | 1,744 | 10,111 | — | 12,444 | ||||||||||||||||||||||||
Land | 7,012 | 5,391 | 4,437 | — | 16,840 | ||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 70,586 | 1,103 | 11,647 | — | 83,336 | ||||||||||||||||||||||||
Trade finance | 4,620 | — | 1,664 | — | 6,284 | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 213,829 | 374 | 5,316 | — | 219,519 | ||||||||||||||||||||||||
Multifamily | 230,049 | — | 35,842 | — | 265,891 | ||||||||||||||||||||||||
Consumer | 29,026 | 116 | 644 | — | 29,786 | ||||||||||||||||||||||||
Total (1) | $ | 1,089,726 | $ | 18,688 | $ | 213,699 | $ | — | $ | 1,322,113 | |||||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
Nonaccrual and Past Due Loans | |||||||||||||||||||||||||||||
The following tables present the aging analysis on non-PCI loans as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
($ in thousands) | Accruing | Accruing | Total | Nonaccrual | Nonaccrual | Total | Current | Total Non-PCI | |||||||||||||||||||||
Loans | Loans | Accruing | Loans Less | Loans | Nonaccrual | Accruing | Loans | ||||||||||||||||||||||
30-59 Days | 60-89 Days | Past Due | Than 90 Days | 90 or More | Loans | Loans | |||||||||||||||||||||||
Past Due | Past Due | Loans | Past Due | Days Past Due | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 9,699 | $ | 1,860 | $ | 11,559 | $ | 18,739 | $ | 11,011 | $ | 29,750 | $ | 5,761,622 | $ | 5,802,931 | |||||||||||||
Construction | — | — | — | 14 | 917 | 931 | 357,187 | 358,118 | |||||||||||||||||||||
Land | — | — | — | 214 | 2,386 | 2,600 | 207,392 | 209,992 | |||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 11,227 | 902 | 12,129 | 5,988 | 25,436 | 31,424 | 6,755,596 | 6,799,149 | |||||||||||||||||||||
Trade finance | — | 600 | 600 | 37 | — | 37 | 843,453 | 844,090 | |||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 7,239 | 2,402 | 9,641 | 4,731 | 4,406 | 9,137 | 3,279,997 | 3,298,775 | |||||||||||||||||||||
Multifamily | 2,611 | 376 | 2,987 | 12,216 | 1,145 | 13,361 | 1,224,011 | 1,240,359 | |||||||||||||||||||||
Consumer | 883 | 2 | 885 | 166 | 374 | 540 | 1,582,743 | 1,584,168 | |||||||||||||||||||||
Total | $ | 31,659 | $ | 6,142 | $ | 37,801 | $ | 42,105 | $ | 45,675 | $ | 87,780 | $ | 20,012,001 | $ | 20,137,582 | |||||||||||||
Unearned fees, premiums and discounts, net | -899 | ||||||||||||||||||||||||||||
Total recorded investment in non-PCI loans | $ | 20,136,683 | |||||||||||||||||||||||||||
($ in thousands) | Accruing | Accruing | Total | Nonaccrual | Nonaccrual | Total | Current | Total Non-PCI | |||||||||||||||||||||
Loans | Loans | Accruing | Loans Less | Loans | Nonaccrual | Accruing | Loans | ||||||||||||||||||||||
30-59 Days | 60-89 Days | Past Due | Than 90 Days | 90 or More | Loans | Loans | |||||||||||||||||||||||
Past Due | Past Due | Loans | Past Due | Days Past Due | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 14,171 | $ | 3,593 | $ | 17,764 | $ | 19,348 | $ | 9,165 | $ | 28,513 | $ | 5,521,769 | $ | 5,568,046 | |||||||||||||
Construction | — | — | — | 15 | 6,898 | 6,913 | 312,930 | 319,843 | |||||||||||||||||||||
Land | — | — | — | 221 | 2,502 | 2,723 | 211,604 | 214,327 | |||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 3,187 | 4,361 | 7,548 | 6,623 | 21,813 | 28,436 | 7,061,869 | 7,097,853 | |||||||||||||||||||||
Trade finance | — | — | — | 73 | 292 | 365 | 889,363 | 889,728 | |||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 6,381 | 1,294 | 7,675 | 2,861 | 5,764 | 8,625 | 3,630,962 | 3,647,262 | |||||||||||||||||||||
Multifamily | 4,425 | 507 | 4,932 | 12,460 | 8,359 | 20,819 | 1,158,266 | 1,184,017 | |||||||||||||||||||||
Consumer | 2,154 | 162 | 2,316 | 169 | 3,699 | 3,868 | 1,477,772 | 1,483,956 | |||||||||||||||||||||
Total | $ | 30,318 | $ | 9,917 | $ | 40,235 | $ | 41,770 | $ | 58,492 | $ | 100,262 | $ | 20,264,535 | $ | 20,405,032 | |||||||||||||
Unearned fees, premiums and discounts, net | 2,804 | ||||||||||||||||||||||||||||
Total recorded investment in non-PCI loans | $ | 20,407,836 | |||||||||||||||||||||||||||
Non-PCI loans that are 90 or more days past due are generally placed on nonaccrual status, at which point interest accrual is discontinued and all unpaid accrued interest is reversed against interest income. Additionally, non-PCI loans that are not 90 or more days past due but have identified deficiencies are also placed on nonaccrual status. Interest payments received on nonaccrual loans are reflected as a reduction of principal and not as interest income. A loan is returned to accrual status when the borrower has demonstrated a satisfactory payment trend subject to management’s assessment of the borrower’s ability to repay the loan. | |||||||||||||||||||||||||||||
PCI loans are excluded from the above aging analysis table as such loans continue to earn interest from accretable yield, independent of performance in accordance with their contractual terms. $53.4 million and $63.4 million of PCI loans were on nonaccrual status as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||
Loans in Process of Foreclosure | |||||||||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, the Company had $16.7 million and $16.9 million, respectively, of recorded investment of consumer mortgage loans secured by residential real estate properties, for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction, which were not included in OREO. Foreclosed residential real estate properties with carrying amount of $4.1 million were included in total net OREO of $32.7 million as of March 31, 2015. In comparison, foreclosed residential real estate properties with carrying amount of $3.5 million were included in total net OREO of $32.1 million as of December 31, 2014. | |||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||
A troubled debt restructuring (“TDR”) is a modification of the terms of a loan when the lender, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including a below-market change in the stated interest rate, reduction in the loan balance or accrued interest, extension of the maturity date with a stated interest rate lower than the current market rate or note splits referred to as A/B notes. In A/B note restructurings, the original note is bifurcated into two notes where the A note represents the portion of the original loan which allows for acceptable loan-to-value and debt coverage on the collateral and is expected to be collected in full and the B note represents the portion of the original loan where there is a shortfall in value and is fully charged off. The A/B note balance is comprised of the A note balance only. A notes are not disclosed as TDRs in subsequent years after the year of restructuring if the restructuring agreement specifies an interest rate equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk, the loan is not impaired based on the terms specified by the restructuring agreement and has demonstrated a period of sustained performance under the modified terms. The Company had $2.3 million and $2.9 million of performing A/B notes as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||
Potential TDRs are individually evaluated and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty in order to maximize the Company’s recovery. During the three months ended March 31, 2015, the Company restructured $833 thousand of CRE loans through principal and interest deferments, $164 thousand of C&I loans through principal deferments and $281 thousand of residential loans through principal deferments. During the three months ended March 31, 2014, the Company restructured $1.7 million of C&I loans through extensions, principal deferments, and other modified terms and $5.8 million of residential loans through extensions, rate reductions, principal deferments and other modified terms. | |||||||||||||||||||||||||||||
The following table presents the additions to non-PCI troubled debt restructurings during the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Loans Modified as TDRs During the Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
($ in thousands) | Number | Pre-Modification | Post-Modification | Financial | Number | Pre-Modification | Post-Modification | Financial | |||||||||||||||||||||
of | Outstanding | Outstanding | Impact (2) | of | Outstanding | Outstanding | Impact (2) | ||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | Recorded | Recorded | ||||||||||||||||||||||||
Investment | Investment (1) | Investment | Investment (1) | ||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | 1 | $ | 828 | $ | 833 | $ | — | — | $ | — | $ | — | $ | — | |||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 1 | $ | 167 | $ | 164 | $ | -32 | 5 | $ | 1,721 | $ | 1,691 | $ | 1,248 | |||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 1 | $ | 281 | $ | 281 | $ | -2 | 3 | $ | 5,823 | $ | 5,804 | $ | — | |||||||||||||||
-1 | Includes subsequent payments after modification and reflects the balance as of March 31, 2015 and 2014. | ||||||||||||||||||||||||||||
-2 | The financial impact includes charge-offs and specific reserves recorded at modification date. | ||||||||||||||||||||||||||||
Subsequent to restructuring, a TDR that becomes delinquent, generally beyond 90 days, is considered to have defaulted. There were no subsequent defaults during the three months ended March 31, 2015 for non-PCI loans that were modified as TDRs within the previous 12 months. Non-PCI loans that were modified as TDRs within the previous 12 months that have subsequently defaulted during the three months ended March 31, 2014 consisted of one CRE TDR contract with a recorded investment of $2.7 million and one C&I TDR contract with a recorded investment of $570 thousand. | |||||||||||||||||||||||||||||
TDRs may be designated as performing or nonperforming. A TDR may be designated as performing if the loan has demonstrated sustained performance under the modified terms. The period of sustained performance may include the periods prior to modification if prior performance has met or exceeded the modified terms. A loan will remain on nonaccrual status until the borrower demonstrates a sustained period of performance, generally six consecutive months of payments. | |||||||||||||||||||||||||||||
TDRs are included in the impaired loan quarterly valuation allowance process. See Allowance for Loan Losses and Impaired Loans sections below for complete discussion. All portfolio segments of TDRs are reviewed for necessary specific reserves in the same manner as impaired loans of the same portfolio segment which have not been identified as TDRs. The modification of the terms of each TDR is considered in the current impairment analysis of the respective TDR. For all portfolio segments of nonperforming TDRs, when the restructured loan is deemed to be uncollectible under modified terms and its fair value is less than the recorded investment in the loan, the deficiency is charged off against the allowance for loan losses. If the loan is a performing TDR, the deficiency is included in the specific reserves of the allowance for loan losses, as appropriate. The amount of additional funds committed to lend to borrowers whose terms have been modified was immaterial as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
Impaired loans include non-PCI loans held for investment on nonaccrual status, regardless of the collateral coverage, and all non-PCI TDR loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all scheduled payments of principal or interest due according to the original contractual terms of the loan agreement. The Company’s loans are grouped into heterogeneous and homogeneous (mostly consumer loans) categories. Classified loans in the heterogeneous category are identified and evaluated for impairment on an individual basis. The Company considers loans individually reviewed to be impaired if, based on current information and events, it is probable the Company will not be able to collect all amounts due according to the original contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as an expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, less costs to sell. When the value of an impaired loan is less than the recorded investment in the loan and the loan is classified as nonperforming and uncollectible, the deficiency is charged-off against the allowance for loan losses. Impaired loans exclude the homogenous consumer loan portfolio which is evaluated collectively for impairment. | |||||||||||||||||||||||||||||
The following tables present the non-PCI impaired loans as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
($ in thousands) | Unpaid | Recorded | Recorded | Total | Related | ||||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | |||||||||||||||||||||||||
Balance | With No | With | Investment | ||||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 50,389 | $ | 28,186 | $ | 15,001 | $ | 43,187 | $ | 1,399 | |||||||||||||||||||
Construction | 916 | 916 | — | 916 | — | ||||||||||||||||||||||||
Land | 8,234 | 2,826 | 543 | 3,369 | 175 | ||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 43,289 | 10,815 | 28,186 | 39,001 | 17,886 | ||||||||||||||||||||||||
Trade finance | 223 | — | 216 | 216 | 20 | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 16,767 | 7,007 | 8,404 | 15,411 | 413 | ||||||||||||||||||||||||
Multifamily | 29,262 | 20,200 | 6,594 | 26,794 | 279 | ||||||||||||||||||||||||
Consumer | 1,258 | 1,150 | 108 | 1,258 | 1 | ||||||||||||||||||||||||
Total | $ | 150,338 | $ | 71,100 | $ | 59,052 | $ | 130,152 | $ | 20,173 | |||||||||||||||||||
($ in thousands) | Unpaid | Recorded | Recorded | Total | Related | ||||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | |||||||||||||||||||||||||
Balance | With No | With | Investment | ||||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 57,805 | $ | 34,399 | $ | 15,646 | $ | 50,045 | $ | 1,581 | |||||||||||||||||||
Construction | 6,888 | 6,888 | — | 6,888 | — | ||||||||||||||||||||||||
Land | 13,291 | 2,838 | 5,622 | 8,460 | 1,906 | ||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 42,396 | 10,552 | 25,717 | 36,269 | 15,174 | ||||||||||||||||||||||||
Trade finance | 280 | — | 274 | 274 | 28 | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 17,838 | 5,137 | 11,398 | 16,535 | 461 | ||||||||||||||||||||||||
Multifamily | 37,624 | 21,500 | 12,890 | 34,390 | 313 | ||||||||||||||||||||||||
Consumer | 1,259 | 1,151 | 108 | 1,259 | 1 | ||||||||||||||||||||||||
Total | $ | 177,381 | $ | 82,465 | $ | 71,655 | $ | 154,120 | $ | 19,464 | |||||||||||||||||||
The following table presents the average recorded investment and the amount of interest income recognized on non-PCI impaired loans for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
($ in thousands) | Average | Recognized | Average | Recognized | |||||||||||||||||||||||||
Recorded | Interest | Recorded | Interest | ||||||||||||||||||||||||||
Investment | Income (1) | Investment | Income (1) | ||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 44,195 | $ | 141 | $ | 67,153 | $ | 325 | |||||||||||||||||||||
Construction | 3,902 | — | 6,888 | — | |||||||||||||||||||||||||
Land | 3,438 | 10 | 12,227 | 121 | |||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 39,310 | 202 | 43,726 | 207 | |||||||||||||||||||||||||
Trade finance | 245 | 3 | 637 | 4 | |||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 15,423 | 68 | 17,100 | 50 | |||||||||||||||||||||||||
Multifamily | 26,987 | 203 | 36,369 | 205 | |||||||||||||||||||||||||
Consumer | 1,258 | 12 | 2,835 | 1 | |||||||||||||||||||||||||
Total impaired non-PCI loans | $ | 134,758 | $ | 639 | $ | 186,935 | $ | 913 | |||||||||||||||||||||
-1 | Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are generally reflected as a reduction of principal and not as interest income. | ||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||
The allowance for loan losses on non-PCI loans consists of specific reserves and a general reserve. The Company’s non-PCI loans fall into heterogeneous and homogeneous categories. Impaired loans are subject to specific reserves. Loans in the homogeneous category, as well as non-impaired loans in the heterogeneous category, are evaluated as part of the general reserve. The general reserve is calculated by utilizing both quantitative and qualitative factors. There are different qualitative risks for the loans in each portfolio segment. The residential and CRE segments’ predominant risk characteristic are the collateral and the geographic location of the property collateralizing the loan. The risk is qualitatively assessed based on the total real estate loan concentration in those geographic areas. The C&I segment’s predominant risk characteristics are the global cash flows of the borrowers and guarantors and economic and market conditions. Consumer loans, excluding the student loan portfolio guaranteed by the U.S. Department of Education, are largely comprised of HELOCs for which the predominant risk characteristic is the real estate collateral securing the loans. | |||||||||||||||||||||||||||||
The Company also maintains an allowance for loan losses on PCI loans when there is deterioration in credit quality subsequent to acquisition. Based on the Company’s estimates of cash flows expected to be collected, the Company establishes an allowance for the PCI loans, with a charge to income through the provision for loan losses. As of March 31, 2015, the Company has established an allowance of $643 thousand on $1.24 billion of PCI loans. As of December 31, 2014, an allowance of $714 thousand was established on $1.32 billion of PCI loans. The allowance balances for both periods were allocated mainly to the PCI CRE loan pools. | |||||||||||||||||||||||||||||
The Company’s methodology to determine the overall appropriateness of the allowance is based on a classification migration model and qualitative considerations. The migration model examines pools of loans having similar characteristics and analyzes their loss rates over a historical period. The Company assigns loss rates to each loan grade within each pool of loans. Loss rates derived by the migration model are based predominantly on historical loss trends that may not be entirely indicative of the actual or inherent loss potential. As such, the Company utilizes qualitative and environmental factors as adjusting mechanisms to supplement the historical results of the classification migration model. Qualitative considerations include, but are not limited to, prevailing economic or market conditions, relative risk profiles of various loan segments, volume concentrations, growth trends, delinquency and nonaccrual status, problem loan trends and geographic concentrations. Qualitative and environmental factors are reflected as percentage adjustments and are added to the historical loss rates derived from the classified asset migration model to determine the appropriate allowance for each loan pool. | |||||||||||||||||||||||||||||
When determined uncollectible, it is the Company’s policy to promptly charge-off the difference in the outstanding loan balance and the fair value of the collateral or the discounted value of expected cash flows. Recoveries are recorded when payment is received on loans that were previously charged-off through the allowance for loan losses. Allocation of a portion of the allowance to one segment of the loan portfolio does not preclude its availability to absorb losses in other segments. | |||||||||||||||||||||||||||||
The following tables present a summary of the activity in the allowance for loan losses on non-PCI loans, by portfolio segment, and PCI loans for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||
($ in thousands) | CRE | C&I | Residential | Consumer | Unallocated | Total | PCI Loans | Total | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||
Beginning balance | $ | 72,263 | $ | 134,598 | $ | 43,856 | $ | 10,248 | $ | — | $ | 260,965 | $ | 714 | $ | 261,679 | |||||||||||||
(Reversal of) provision for loans losses | -2,333 | 5,378 | -1,571 | 664 | 2,920 | 5,058 | -71 | 4,987 | |||||||||||||||||||||
Provision allocation for unfunded loan commitments and letters of credit | — | — | — | — | -2,920 | -2,920 | — | -2,920 | |||||||||||||||||||||
Charge-offs | -1,002 | -6,589 | -746 | -463 | — | -8,800 | — | -8,800 | |||||||||||||||||||||
Recoveries | 812 | 527 | 1,451 | 2 | — | 2,792 | — | 2,792 | |||||||||||||||||||||
Net (charge-offs)/recoveries | -190 | -6,062 | 705 | -461 | — | -6,008 | — | -6,008 | |||||||||||||||||||||
Ending balance | $ | 69,740 | $ | 133,914 | $ | 42,990 | $ | 10,451 | $ | — | $ | 257,095 | $ | 643 | $ | 257,738 | |||||||||||||
Ending balance allocated to: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,574 | $ | 17,906 | $ | 692 | $ | 1 | $ | — | $ | 20,173 | $ | — | $ | 20,173 | |||||||||||||
Collectively evaluated for impairment | 68,166 | 116,008 | 42,298 | 10,450 | — | 236,922 | — | 236,922 | |||||||||||||||||||||
Acquired with deteriorated credit quality | — | — | — | — | — | — | 643 | 643 | |||||||||||||||||||||
Ending balance | $ | 69,740 | $ | 133,914 | $ | 42,990 | $ | 10,451 | $ | — | $ | 257,095 | $ | 643 | $ | 257,738 | |||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||
($ in thousands) | CRE | C&I | Residential | Consumer | Unallocated | Total | PCI Loans | Total | |||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||
Beginning balance | $ | 70,154 | $ | 115,184 | $ | 50,716 | $ | 11,352 | $ | — | $ | 247,406 | $ | 2,269 | $ | 249,675 | |||||||||||||
(Reversal of) provision for loans losses | -7,036 | 16,592 | -2,575 | -196 | 215 | 7,000 | -67 | 6,933 | |||||||||||||||||||||
Provision allocation for unfunded loan commitments and letters of credit | — | — | — | — | -215 | -215 | — | -215 | |||||||||||||||||||||
Charge-offs | -319 | -5,531 | -283 | -3 | — | -6,136 | — | -6,136 | |||||||||||||||||||||
Recoveries | 828 | 911 | 137 | 3 | — | 1,879 | — | 1,879 | |||||||||||||||||||||
Net recoveries/(charge-offs) | 509 | -4,620 | -146 | — | — | -4,257 | — | -4,257 | |||||||||||||||||||||
Ending balance | $ | 63,627 | $ | 127,156 | $ | 47,995 | $ | 11,156 | $ | — | $ | 249,934 | $ | 2,202 | $ | 252,136 | |||||||||||||
Ending balance allocated to: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 8,375 | $ | 16,490 | $ | 1,853 | $ | — | $ | — | $ | 26,718 | $ | — | $ | 26,718 | |||||||||||||
Collectively evaluated for impairment | 55,252 | 110,666 | 46,142 | 11,156 | — | 223,216 | — | 223,216 | |||||||||||||||||||||
Acquired with deteriorated credit quality | — | — | — | — | — | — | 2,202 | 2,202 | |||||||||||||||||||||
Ending balance | $ | 63,627 | $ | 127,156 | $ | 47,995 | $ | 11,156 | $ | — | $ | 249,934 | $ | 2,202 | $ | 252,136 | |||||||||||||
The following tables present the Company’s recorded investments in total loans as of March 31, 2015 and December 31, 2014 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology: | |||||||||||||||||||||||||||||
($ in thousands) | CRE | C&I | Residential | Consumer | Total | ||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 47,472 | $ | 39,217 | $ | 42,205 | $ | 1,258 | $ | 130,152 | |||||||||||||||||||
Collectively evaluated for impairment | 6,323,569 | 7,604,022 | 4,496,929 | 1,582,910 | 20,007,430 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality (1) | 674,380 | 77,525 | 458,085 | 27,996 | 1,237,986 | ||||||||||||||||||||||||
Ending Balance | $ | 7,045,421 | $ | 7,720,764 | $ | 4,997,219 | $ | 1,612,164 | $ | 21,375,568 | |||||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
($ in thousands) | CRE | C&I | Residential | Consumer | Total | ||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 65,393 | $ | 36,543 | $ | 50,925 | $ | 1,259 | $ | 154,120 | |||||||||||||||||||
Collectively evaluated for impairment | 6,036,823 | 7,951,038 | 4,780,354 | 1,482,697 | 20,250,912 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality (1) | 717,297 | 89,620 | 485,410 | 29,786 | 1,322,113 | ||||||||||||||||||||||||
Ending Balance | $ | 6,819,513 | $ | 8,077,201 | $ | 5,316,689 | $ | 1,513,742 | $ | 21,727,145 | |||||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
Allowance for Unfunded Loan Commitments, Off-Balance Sheet Credit Exposures and Recourse Provisions | |||||||||||||||||||||||||||||
The allowance for unfunded loan commitments, off-balance sheet credit exposures, and recourse provisions is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. Refer to Note 12 — Commitments and Contingencies for additional information. | |||||||||||||||||||||||||||||
PCI loans | |||||||||||||||||||||||||||||
As of the respective acquisition dates, PCI loans were pooled and accounted for at fair value, which represents the discounted value of the expected cash flows of the loan portfolio. The nonaccretable difference represents the Company’s estimate of the expected credit losses, which was considered in determining the fair value of the loans as of the respective acquisition dates. In estimating the nonaccretable difference, the Company (a) calculated the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimated the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The amount by which the undiscounted expected cash flows exceed the estimated fair value (the “accretable yield”) is accreted into interest income over the life of the loans. | |||||||||||||||||||||||||||||
Covered assets consist of loans receivable and OREO that were acquired in the WFIB acquisition on June 11, 2010 and in the UCB acquisition on November 6, 2009 for which the Company entered into shared-loss agreements with the FDIC. Pursuant to the terms of the shared-loss agreements, the FDIC is obligated to reimburse the Company 80% of eligible losses for both UCB and WFIB with respect to covered assets. For the UCB covered assets, the FDIC will reimburse the Company for 95% of eligible losses in excess of $2.05 billion. The Company has a corresponding obligation to reimburse the FDIC for 80% or 95%, as applicable, of eligible recoveries with respect to covered assets. The shared-loss coverage of the UCB commercial loans ended after December 31, 2014. The shared-loss coverage of the WFIB commercial loans will extend through June 30, 2015. The shared-loss coverage for both UCB and WFIB residential loans will extend through November 30, 2019 and June 30, 2020, respectively. Refer to Note 8 — Covered Assets and FDIC Indemnification Asset of the Company’s 2014 Form 10-K for additional details related to the shared-loss agreements. Of the total $1.24 billion PCI loans as of March 31, 2015, $311.6 million were covered under shared-loss agreements. Of the total $1.32 billion PCI loans as of December 31, 2014, $1.23 billion were covered under shared-loss agreements. As of March 31, 2015 and December 31, 2014, $354.4 million and $1.48 billion of total loans were covered under shared-loss agreements, respectively. | |||||||||||||||||||||||||||||
The following table presents the changes in the accretable yield for the PCI loans for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
($ in thousands) | 2015 | 2014 | |||||||||||||||||||||||||||
Beginning balance | $ | 311,688 | $ | 461,545 | |||||||||||||||||||||||||
Additions | — | 6,745 | |||||||||||||||||||||||||||
Accretion | -30,569 | (61,946 | ) | ||||||||||||||||||||||||||
Changes in expected cash flows | 12,036 | 24,112 | |||||||||||||||||||||||||||
Ending balance | $ | 293,155 | $ | 430,456 | |||||||||||||||||||||||||
FDIC Indemnification Asset/Net Payable to FDIC | |||||||||||||||||||||||||||||
The Company is amortizing the difference between the recorded amount of the FDIC indemnification asset and the expected reimbursement from the FDIC over the life of the indemnification asset. Due to continued payoffs and improved credit performance of the covered portfolio as compared to the Company’s original estimates, the expected reimbursement from the FDIC under the shared-loss agreements has decreased and a net payable to the FDIC has been recorded. In prior years, due to the estimated losses from the covered portfolio and the corresponding expected payments from the FDIC, the Company recorded an FDIC indemnification asset. As of March 31, 2015, a net payable to the FDIC of $101.4 million is included in accrued expenses and other liabilities on the consolidated balance sheet. In comparison, as of March 31, 2014, the Company recorded a net FDIC indemnification asset of $27.6 million, which is included in other assets on the consolidated balance sheet. | |||||||||||||||||||||||||||||
The following table presents a summary of the FDIC indemnification asset/net payable to the FDIC for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
($ in thousands) | 2015 | 2014 | |||||||||||||||||||||||||||
Beginning balance | $ | -96,106 | $ | 74,708 | |||||||||||||||||||||||||
Amortization | -1,542 | (28,490 | ) | ||||||||||||||||||||||||||
Reductions (1) | -649 | (11,842 | ) | ||||||||||||||||||||||||||
Estimate of FDIC repayment (2) | -3,114 | (6,824 | ) | ||||||||||||||||||||||||||
Ending balance | $ | -101,411 | $ | 27,552 | |||||||||||||||||||||||||
-1 | Reductions relate to charge-offs, partial prepayments, loan payoffs and loan sales which result in a corresponding reduction of the indemnification asset. | ||||||||||||||||||||||||||||
-2 | This represents the change in the calculated estimate the Company will be required to pay the FDIC at the end of the FDIC shared-loss agreements, due to lower thresholds of losses. | ||||||||||||||||||||||||||||
Loans Held for Sale | |||||||||||||||||||||||||||||
Loans held for sale were $196.1 million and $46.0 million as of March 31, 2015 and December 31, 2014, respectively. Loans held for sale are recorded at the lower of cost or fair value. Fair value is derived from current market prices. $820.5 million and $479.0 million of net loans receivable were reclassified from loans held-for-investment to loans held for sale during the three months ended March 31, 2015 and 2014, respectively. Loans transferred were primarily comprised of C&I and residential single-family loans for the three months ended March 31, 2015. In comparison, loans transferred were primarily comprised of student loans for the three months ended March 31, 2014. These loans were purchased by the Company with the original intent to be held for investment. However, subsequent to the purchase, the Company’s intent for these loans changed and they were consequently reclassified to loans held for sale. The Company recorded $1.7 million in write-downs related to loans transferred from loans held-for-investment to loans held for sale to allowance for loan losses for the three months ended March 31, 2015. There were no write-downs recorded on loans transferred from loans held-for-investment to loans held for sale for the three months ended March 31, 2014. | |||||||||||||||||||||||||||||
Proceeds from total loans sold were $679.8 million, resulting in net gains of $9.6 million for the three months ended March 31, 2015. Loans sold during the first quarter of 2015 comprised of C&I, residential single-family and consumer loans. In comparison, proceeds from total loans sold were $183.6 million, resulting in net gains of $6.2 million during the three months ended March 31, 2014. Loans sold during the first quarter of 2014 were comprised of student and C&I loans. | |||||||||||||||||||||||||||||
INVESTMENTS_IN_QUALIFIED_AFFOR
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, NET, TAX CREDIT AND OTHER INVESTMENTS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, NET, TAX CREDIT AND OTHER INVESTMENTS | ||||||||
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, NET, TAX CREDIT AND OTHER INVESTMENTS | ||||||||
NOTE 10 — INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, NET, TAX CREDIT AND OTHER INVESTMENTS | ||||||||
The Community Reinvestment Act (“CRA”) encourages banks to meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes. The Company invests in certain affordable housing limited partnerships that qualify for CRA credits. Such limited partnerships are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the United States. Each of the partnerships must meet the regulatory requirements for affordable housing for a minimum 15-year compliance period to fully utilize the tax credits. In addition to affordable housing limited partnerships, the Company invests in new market tax credit projects that qualify for CRA credits. The Company also invests in eligible projects that qualify for renewable energy and historic tax credits. Investments in renewable energy tax credits help promote the development of renewable energy sources, while the investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas. | ||||||||
Investments in qualified affordable housing partnership, net | ||||||||
As discussed in Note 2, the Company adopted ASU 2014-01 on January 1, 2015 with retrospective application to all periods presented. Prior to adopting ASU 2014-01, the Company applied the equity method or the cost method of accounting depending on the ownership percentage and the influence the Company has on these limited partnerships. The amortization of the investments in affordable housing limited partnerships was previously presented under Noninterest Expense. Under the proportional amortization method, the Company now amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognize the amortization in the income statement as a component of income tax expense. | ||||||||
The following tables present the impact of the new accounting guidance on the consolidated balance sheet and statement of income as of the periods indicated: | ||||||||
December 31, 2014 | ||||||||
($ in thousands) | As Previously | As Revised | ||||||
Reported | ||||||||
Consolidated Balance Sheet: | ||||||||
Investment in qualified affordable housing partnerships, net | $ | 178,652 | $ | 178,962 | ||||
Other assets — Deferred tax assets | $ | 384,367 | $ | 389,601 | ||||
Retained earnings | $ | 1,598,598 | $ | 1,604,141 | ||||
Three Months Ended | ||||||||
March 31, 2014 | ||||||||
($ in thousands) | As Previously | As Revised | ||||||
Reported | ||||||||
Consolidated Statement of Income: | ||||||||
Noninterest expense — Amortization of tax credit and other investments | $ | 5,964 | $ | 1,492 | ||||
Income before taxes | $ | 111,690 | $ | 116,163 | ||||
Provision for income taxes | $ | 34,949 | $ | 41,992 | ||||
Net income | $ | 76,741 | $ | 74,171 | ||||
Earnings per share | ||||||||
Basic | $ | 0.54 | $ | 0.52 | ||||
Diluted | $ | 0.54 | $ | 0.52 | ||||
The following table presents the balances of the Company’s investments in qualified affordable housing partnerships, net and related unfunded commitments as of March 31, 2015 and December 31, 2014: | ||||||||
($ in thousands) | March 31, 2015 | December 31, 2014 | ||||||
Investment in qualified affordable housing partnerships, net | $ | 182,719 | $ | 178,962 | ||||
Accrued expenses and other liabilities — Unfunded commitments | $ | 50,884 | $ | 43,311 | ||||
The following table presents other information related to the Company’s investments in qualified affordable housing partnerships, net for the periods indicated: | ||||||||
Three Months Ended March 31, | ||||||||
($ in thousands) | 2015 | 2014 | ||||||
Tax credits and other tax benefits recognized | $ | 8,775 | $ | 7,792 | ||||
Amortization expense included in provision for income taxes | $ | 6,244 | $ | 5,357 | ||||
Investments in tax credit and other investments | ||||||||
Investments in tax credit and other investments were $117.0 million and $110.1 million as of March 31, 2015 and December 31, 2014, respectively, and were included in other assets on the consolidated balance sheets. The Company is not the primary beneficiary in these partnerships and, therefore is not required to consolidate its investments in tax credit and other investments on the consolidated financial statements. Depending on the ownership percentage and the influence the Company has on a limited partnership, the Company applies either the equity or cost method of accounting. Total unfunded commitments for these investments of $66.2 million and $71.4 million as of March 31, 2015 and December 31, 2014, respectively, were included in Accrued Expenses and Other Liabilities. Amortization of tax credit and other investments was $6.3 million and $1.5 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||||
NOTE 11 — GOODWILL AND OTHER INTANGIBLE ASSETS | |||||
Goodwill | |||||
As of both March 31, 2015 and December 31, 2014, the carrying amount of goodwill was $469.4 million. | |||||
Goodwill is tested for impairment on an annual basis as of December 31, or more frequently as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company’s reporting units are equivalent to the Company’s operating segments. For additional information regarding the Company’s operating segments, refer to Note 14 - Business Segments, presented elsewhere in this report. The Company records impairment write-downs as charges to noninterest expense and adjustments to the carrying value of goodwill. Subsequent reversals of goodwill impairment are prohibited. | |||||
The Company performed its annual impairment test as of December 31, 2014 and determined that there was no goodwill impairment as of December 31, 2014 as the fair values of all reporting units exceeded the then current carrying amounts of the goodwill. There were no triggering events during the quarter ended March 31, 2015 and therefore no additional goodwill impairment test was performed. No assurance can be given that goodwill will not be written down in future periods. Refer to Note 11 — Goodwill and other Intangible Assets in Item 8 of the Company’s 2014 Form 10-K for additional details related to the Company’s annual goodwill impairment analysis. | |||||
Premiums on Acquired Deposits | |||||
Premiums on acquired deposits represent the intangible value of depositor relationships resulting from deposit liabilities assumed in various acquisitions. These intangibles are tested for impairment on an annual basis, or more frequently as events occur, or as current circumstances and conditions warrant. As of both March 31, 2015 and December 31, 2014, the gross carrying amount of premiums on acquired deposits was $108.8 million. The related accumulated amortization totaled $65.9 million and $63.5 million, as of March 31, 2015 and December 31, 2014, respectively. | |||||
The Company amortizes premiums on acquired deposits based on the projected useful lives of the related deposits. Amortization expense of premiums on acquired deposits was $2.4 million and $2.5 million for the three months ended March 31, 2015 and 2014, respectively. The Company did not record any impairment write-downs on deposit premiums for the three months ended March 31, 2015 and 2014. | |||||
The following table presents the estimated future amortization expense of premiums on acquired deposits for the succeeding five years and thereafter: | |||||
Estimated Amortization Expense of Premiums on Acquired Deposits | Amount | ||||
($ in thousands) | |||||
Nine months ending December 31, 2015 | $ | 6,842 | |||
Year ending December 31, 2016 | 8,086 | ||||
Year ending December 31, 2017 | 6,935 | ||||
Year ending December 31, 2018 | 5,883 | ||||
Year ending December 31, 2019 | 4,864 | ||||
Thereafter | 10,307 | ||||
Total | $ | 42,917 | |||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 12 — COMMITMENTS AND CONTINGENCIES | |
Credit Extensions — In the normal course of business, the Company has various outstanding commitments to extend credit that are not reflected in the accompanying consolidated financial statements. While the Company does not anticipate losses as a result of these transactions, commitments to extend credit are included in determining the appropriate level of the allowance for unfunded commitments and credit exposures. | |
Loan commitments are agreements to lend to a customer provided there is no violation of any condition established in the agreement. Commitments generally have fixed expiration dates or other termination clauses. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements. As of March 31, 2015 and December 31, 2014, undisbursed loan commitments amounted to $3.71 billion and $3.87 billion, respectively. As of March 31, 2015 and December 31, 2014 all undisbursed loan commitments were for loans held for investment. | |
Commercial letters of credit are issued to facilitate domestic and foreign trade transactions while standby letters of credit (“SBLCs”) are issued to make payments on behalf of customers when certain specified future events occur. As of March 31, 2015 and December 31, 2014, commercial letters of credit and SBLCs totaled $1.44 billion and $1.25 billion, respectively. The Company issues SBLCs and financial guarantees to support the obligations of its customers to beneficiaries. Based on historical trends, the probability that it will have to make payments under SBLCs is low. Additionally, in many cases, the Company holds collateral in various forms against these SBLCs. As part of its risk management activities, the Company monitors the creditworthiness of the customer as well as its SBLCs exposure. If the customer fails to perform the specified obligation to the beneficiary, the beneficiary may draw upon the SBLCs by presenting documents that are in compliance with the letter of credit terms. In that event, the Company either repays the money borrowed or advanced, makes payment on account of the indebtedness of the customer or makes payment on account of the default by the customer in the performance of an obligation, to the beneficiary up to the full notional amount of the SBLCs. The customer is obligated to reimburse the Company for any such payment. If the customer fails to pay, the Company would, as applicable, liquidate collateral and/or offset accounts. | |
Credit card lines are unsecured commitments that are not legally binding. Management reviews credit card lines at least annually and, upon evaluation of the customers’ creditworthiness, the Bank has the right to terminate or change certain terms of the credit card lines. | |
The Company uses the same credit policies in making commitments and conditional obligations as in extending loan facilities to customers. It evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. | |
As of March 31, 2015 and December 31, 2014, the allowance for unfunded loan commitments, off-balance sheet credit exposures, and recourse provision amounted to $15.6 million and $12.7 million, respectively. These amounts were included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. | |
Guarantees — The Company has sold or securitized loans with recourse in the ordinary course of business. For loans that have been sold or securitized with recourse, the recourse component is considered a guarantee. As such, the Company is committed to stand ready to perform if the loan defaults and to make payments to remedy the default. As of March 31, 2015, the maximum potential future payment, which is generally the unpaid principal balance of total loans sold or securitized with recourse amounted to $237.7 million and was comprised of $34.3 million in single-family loans with full recourse and $203.4 million in multifamily loans with limited recourse. In comparison, total loans sold or securitized with recourse amounted to $249.8 million as of December 31, 2014, and was comprised of $35.5 million in single-family loans with full recourse and $214.3 million in multifamily loans with limited recourse. The recourse provision on multifamily loans varies by loan sale and is limited to 4% of the top loss on the underlying loans. The Company’s recourse reserve related to loan sales and securitizations totaled $673 thousand and $2.2 million as of March 31, 2015 and December 31, 2014, respectively, and were included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. The Company continues to experience minimal losses from the single-family and multifamily loan portfolios sold or securitized with recourse. | |
Litigation — In the ordinary course of the Company’s business, the Company is a party to various legal actions, which the Company believes are incidental to the operation of our business. In accordance with ASC 450, Contingencies, the Company accrues reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. The outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of the legal or regulatory matters, if any, currently pending or threatened could have a material adverse effect on the Company’s liquidity, consolidated financial position, and/or results of operations. Based on the information currently available, advice of counsel and established reserves, the Company believes that the eventual outcome of the matters described below, will not, individually or in the aggregate have a material adverse effect on the Company’s consolidated financial position. | |
On September 8, 2014, a jury in the case titled “F&F, LLC and 618 Investment, Inc. v. East West Bank,” Superior Court of the State of California for the County of Los Angeles, Case No. BC462714, delivered a verdict in favor of plaintiff F&F, LLC, which was adjusted downward by the court on December 18, 2014 to the amount of $36.6 million. The case is being appealed. As of March 31, 2015, a litigation accrual of $32.6 million has been recorded. | |
STOCKHOLDERS_EQUITY_AND_EARNIN
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | |||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | |||||||||||||||||||||||||
NOTE 13 — STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE | |||||||||||||||||||||||||
MetroCorp Acquisition — On January 17, 2014, the Company completed the acquisition of MetroCorp. The final consideration included 5,583,093 shares of East West common stock, $89.4 million of cash, $2.4 million of additional cash to MetroCorp stock option holders and a MetroCorp warrant, fair valued at $8.8 million, assumed by the Company. Prior to the acquisition, MetroCorp had an outstanding warrant to purchase 771,429 shares of its common stock. At acquisition, the rights of the warrant holder were converted into the right to acquire 230,282 shares of East West’s common stock. The warrant has not been exercised as of March 31, 2015. | |||||||||||||||||||||||||
Stock Repurchase Program — On July 17, 2013, the Company’s Board of Directors authorized a stock repurchase program to buy back up to $100.0 million of the Company’s common stock. The Company did not repurchase any shares under this program during the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||
Quarterly Dividends — On January 21, 2015, dividends for the Company’s common stock were declared for the first quarter of 2015 in the amount of $0.20 per share and paid on February 17, 2015 to stockholders of record on February 2, 2015. This represents an increase of $0.02 per share, or an 11% increase from the prior quarterly dividend of $0.18 per share. Cash dividends totaling $28.9 million and $25.9 million were paid to the Company’s common shareholders during the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||
Earnings Per Share (“EPS”) — Certain of the Company’s instruments containing rights to nonforfeitable dividends granted in stock-based payment transactions are considered participating securities prior to vesting and, therefore, have been included in the earnings allocations in computing basic and diluted EPS under the two-class method. Basic EPS was computed by dividing net income, net of income allocated to participating securities, by the weighted-average number of common shares outstanding during each period. The computation of diluted EPS reflects the additional dilutive effect of common stock equivalents such as stock options, unvested restricted stock units and warrants. | |||||||||||||||||||||||||
The following tables present earnings per share calculations for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||
($ in thousands, except per share data) | Net Income | Number of Shares | Per Share Amounts | ||||||||||||||||||||||
Net income | $ | 100,027 | |||||||||||||||||||||||
Less: | |||||||||||||||||||||||||
Earnings allocated to participating securities | (3 | ) | |||||||||||||||||||||||
Basic EPS — income allocated to common stockholders | $ | 100,024 | 143,655 | $ | 0.7 | ||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Stock options | — | 6 | |||||||||||||||||||||||
Restricted stock units | 106 | 533 | |||||||||||||||||||||||
Warrants | — | 155 | |||||||||||||||||||||||
Diluted EPS — income allocated to common stockholders | $ | 100,130 | 144,349 | $ | 0.69 | ||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||
($ in thousands, except per share data) | Net Income | Number of Shares | Per Share Amounts | ||||||||||||||||||||||
Net income (1) | $ | 74,171 | |||||||||||||||||||||||
Less: | |||||||||||||||||||||||||
Earnings allocated to participating securities | (160 | ) | |||||||||||||||||||||||
Basic EPS — income allocated to common stockholders (1) | $ | 74,011 | 141,962 | $ | 0.52 | ||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Stock options | — | 79 | |||||||||||||||||||||||
Restricted stock units | 80 | 447 | |||||||||||||||||||||||
Warrants | — | 144 | |||||||||||||||||||||||
Diluted EPS — income allocated to common stockholders(1) | $ | 74,091 | 142,632 | $ | 0.52 | ||||||||||||||||||||
-1 | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. See note 10 of the Notes to Consolidated Financial Statements for additional information. | ||||||||||||||||||||||||
The following table presents the weighted-average stock options outstanding and restricted stock units for the three months ended March 31, 2015 and 2014, respectively, that were anti-dilutive, and therefore not included in the computation of diluted EPS: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||||||||||
Stock options | — | 81 | |||||||||||||||||||||||
Restricted stock units | 170 | 168 | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) — As of March 31, 2015, total accumulated other comprehensive income was $13.6 million which included net unrealized gains on available-for-sale securities of $13.5 million and net unrealized gains on other investments of $54 thousand. As of December 31, 2014, total accumulated other comprehensive income was $4.2 million which consisted of net unrealized gains on available-for-sale securities of $4.2 million and unrealized gains on other investments of $61 thousand. | |||||||||||||||||||||||||
The accumulated other comprehensive income (loss) balances were as follows: | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
($ in thousands) | Available-for-Sale | Other | Accumulated | Available-for-Sale | Other | Accumulated | |||||||||||||||||||
Investment | Investments | Other | Investment | Investments | Other | ||||||||||||||||||||
Securities | Comprehensive | Securities | Comprehensive | ||||||||||||||||||||||
Income | (Loss) Income | ||||||||||||||||||||||||
Balance, beginning of the period | $ | 4,176 | $ | 61 | $ | 4,237 | $ | (30,538 | ) | $ | 79 | $ | (30,459 | ) | |||||||||||
Net unrealized gains (losses) arising during period | 11,879 | (7 | ) | 11,872 | 15,422 | (17 | ) | 15,405 | |||||||||||||||||
Less: reclassification adjustment for gains included in net income | (2,554 | ) | — | (2,554 | ) | (1,983 | ) | — | (1,983 | ) | |||||||||||||||
Net unrealized gains (losses) | 9,325 | (7 | ) | 9,318 | 13,439 | (17 | ) | 13,422 | |||||||||||||||||
Balance, end of the period | $ | 13,501 | $ | 54 | $ | 13,555 | $ | (17,099 | ) | $ | 62 | $ | (17,037 | ) | |||||||||||
The components of other comprehensive income (loss), reclassifications to net income by income statement line item and the related tax effects were as follows: | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
($ in thousands) | Before-Tax | Tax | Net-of-Tax | Before-Tax | Tax | Net-of-Tax | |||||||||||||||||||
Amount | Expense | Amount | Amount | Expense | Amount | ||||||||||||||||||||
or Benefit | or Benefit | ||||||||||||||||||||||||
Unrealized gains on available-for-sale investment securities : | |||||||||||||||||||||||||
Net unrealized gains arising during period | $ | 20,482 | $ | (8,603 | ) | $ | 11,879 | $ | 26,590 | $ | (11,168 | ) | $ | 15,422 | |||||||||||
Less: reclassification adjustment for gains included in net income (1) | (4,404 | ) | 1,850 | (2,554 | ) | (3,418 | ) | 1,435 | (1,983 | ) | |||||||||||||||
Net unrealized gains | 16,078 | (6,753 | ) | 9,325 | 23,172 | (9,733 | ) | 13,439 | |||||||||||||||||
Unrealized losses on other investments: | |||||||||||||||||||||||||
Net unrealized losses arising during period | (12 | ) | 5 | (7 | ) | (29 | ) | 12 | (17 | ) | |||||||||||||||
Less: reclassification adjustment for (gains) losses included in income | — | — | — | — | — | — | |||||||||||||||||||
Net unrealized losses | (12 | ) | 5 | (7 | ) | (29 | ) | 12 | (17 | ) | |||||||||||||||
Other comprehensive income | $ | 16,066 | $ | (6,748 | ) | $ | 9,318 | $ | 23,143 | $ | (9,721 | ) | $ | 13,422 | |||||||||||
-1 | The pretax amount is reported in net gains on sales of available-for-sale investment securities in the consolidated statements of income. | ||||||||||||||||||||||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||
NOTE 14 — BUSINESS SEGMENTS | ||||||||||||||
The Company utilizes an internal reporting system to measure the performance of various operating segments within the Bank and the Company. The Company has identified three operating segments for purposes of management reporting: (1) Retail Banking; (2) Commercial Banking; and (3) Other. These three business divisions meet the criteria of an operating segment: the segment engages in business activities from which it earns revenues and incurs expenses, its operating results are regularly reviewed by the Company’s chief operating decision-maker to render decisions about resources to be allocated to the segment and assess its performance, and discrete financial information is available. | ||||||||||||||
The Retail Banking segment focuses primarily on retail operations through the Bank’s branch network. The Commercial Banking segment, which includes CRE, primarily generates commercial loans through the commercial lending offices located in the Bank’s production offices. Furthermore, the Company’s Commercial Banking segment also offers a wide variety of international finance and trade services and products. The remaining centralized functions, including treasury activities and eliminations of inter-segment amounts, have been aggregated and included in the Other segment, which provides broad administrative support to the two core segments. | ||||||||||||||
The Company’s funds transfer pricing assumptions are intended to promote core deposit growth and to reflect the current risk profiles of various loan categories within the credit portfolio. Transfer pricing assumptions and methodologies are reviewed at least annually to ensure that the Company’s process is reflective of current market conditions. The transfer pricing process is formulated with the goal of incenting loan and deposit growth that is consistent with the Company’s overall growth objectives as well as to provide a reasonable and consistent basis for the measurement of the Company’s business segments and product net interest margins. | ||||||||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Operating segment results are based on the Company’s internal management reporting process, which reflects assignments and allocations of certain operating and administrative costs and the provision for loan losses. Net interest income is based on the Company’s internal funds transfer pricing system which assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics. Noninterest income and noninterest expense, including depreciation and amortization, directly attributable to a segment are assigned to that business segment. Indirect costs, including overhead expense, are allocated to the segments based on several factors, including, but not limited to, full-time equivalent employees, loan volume and deposit volume. The provision for credit losses is allocated based on actual charge-offs for the period as well as average loan balances for each segment during the period. The Company evaluates overall performance based on profit or loss from operations before income taxes excluding nonrecurring gains and losses. | ||||||||||||||
Changes in the Company’s management structure or reporting methodologies may result in changes in the measurement of operating segment results. Results for prior periods are generally restated for comparability for changes in management structure or reporting methodologies unless it is not deemed practicable to do so. | ||||||||||||||
The following tables present the operating results and other key financial measures for the individual operating segments for the three months ended March 31, 2015 and 2014: | ||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||
($ in thousands) | Retail | Commercial | Other | Total | ||||||||||
Banking | Banking | |||||||||||||
Interest income | $ | 87,446 | $ | 158,786 | $ | 17,029 | $ | 263,261 | ||||||
Charge for funds used | -23,298 | -37,351 | -9,445 | (70,094 | ) | |||||||||
Interest spread on funds used | 64,148 | 121,435 | 7,584 | 193,167 | ||||||||||
Interest expense | -12,224 | -4,263 | -11,057 | (27,544 | ) | |||||||||
Credit on funds provided | 57,668 | 8,016 | 4,410 | 70,094 | ||||||||||
Interest spread on funds provided | 45,444 | 3,753 | -6,647 | 42,550 | ||||||||||
Net interest income | $ | 109,592 | $ | 125,188 | $ | 937 | $ | 235,717 | ||||||
Provision for loan losses | $ | 731 | $ | 4,256 | $ | — | $ | 4,987 | ||||||
Depreciation, amortization and accretion (1) | $ | 1,682 | $ | -10,477 | $ | 12,922 | $ | 4,127 | ||||||
Goodwill | $ | 357,207 | $ | 112,226 | $ | — | $ | 469,433 | ||||||
Segment pre-tax profit | $ | 52,935 | $ | 93,175 | $ | 716 | $ | 146,826 | ||||||
Segment assets | $ | 7,540,501 | $ | 15,491,368 | $ | 6,874,966 | $ | 29,906,835 | ||||||
Three Months Ended March 31, 2014 | ||||||||||||||
($ in thousands) | Retail | Commercial | Other | Total | ||||||||||
Banking | Banking | |||||||||||||
Interest income | $ | 98,724 | $ | 169,076 | $ | 18,373 | $ | 286,173 | ||||||
Charge for funds used | -16,045 | -21,328 | -23,123 | (60,496 | ) | |||||||||
Interest spread on funds used | 82,679 | 147,748 | -4,750 | 225,677 | ||||||||||
Interest expense | -11,711 | -3,280 | -13,216 | (28,207 | ) | |||||||||
Credit on funds provided | 48,193 | 8,436 | 3,867 | 60,496 | ||||||||||
Interest spread on funds provided | 36,482 | 5,156 | -9,349 | 32,289 | ||||||||||
Net interest income (loss) | $ | 119,161 | $ | 152,904 | $ | -14,099 | $ | 257,966 | ||||||
Provision for loan losses | $ | 2,652 | $ | 4,281 | $ | — | $ | 6,933 | ||||||
Depreciation, amortization and accretion (1) (2) | $ | 2,571 | $ | -3,328 | $ | 9,821 | $ | 9,064 | ||||||
Goodwill | $ | 354,163 | $ | 104,304 | $ | — | $ | 458,467 | ||||||
Segment pre-tax profit (loss) (2) | $ | 52,170 | $ | 86,931 | $ | -22,938 | $ | 116,163 | ||||||
Segment assets (2) | $ | 7,877,996 | $ | 13,661,149 | $ | 5,861,459 | $ | 27,400,604 | ||||||
-1 | Includes amortization and accretion related to the FDIC indemnification asset. | |||||||||||||
-2 | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. | |||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | |
NOTE 15 — SUBSEQUENT EVENTS | |
Dividend Payout | |
In April 2015, the Company’s Board of Directors declared a quarterly dividend of $0.20 per share on the Company’s common stock payable on or about May 15, 2015 to shareholders of record as of May 1, 2015. | |
FAIR_VALUE_MEASUREMENT_AND_FAI1
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
Assets (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||
Assets (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||
as of March 31, 2015 | |||||||||||||||||
($ in thousands) | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||
March 31, 2015 | for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||
U.S. Treasury securities | $ | 1,172,226 | $ | 1,172,226 | $ | — | $ | — | |||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 411,966 | — | 411,966 | — | |||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | |||||||||||||||||
Commercial mortgage-backed securities | 95,235 | — | 95,235 | — | |||||||||||||
Residential mortgage-backed securities | 727,356 | — | 727,356 | — | |||||||||||||
Municipal securities | 191,246 | — | 191,246 | — | |||||||||||||
Other residential mortgage-backed securities: | |||||||||||||||||
Investment grade | 51,501 | — | 51,501 | — | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Investment grade | 140,401 | — | 140,401 | — | |||||||||||||
Non-investment grade | 9,501 | — | 9,501 | — | |||||||||||||
Other securities | 41,653 | 32,477 | 9,176 | — | |||||||||||||
Total available-for-sale investment securities | $ | 2,841,085 | $ | 1,204,703 | $ | 1,636,382 | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign exchange options | $ | 3,683 | $ | — | $ | 3,683 | $ | — | |||||||||
Interest rate swaps and caps | $ | 66,060 | $ | — | $ | 66,060 | $ | — | |||||||||
Foreign exchange contracts | $ | 13,340 | $ | — | $ | 13,340 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Interest rate swaps on certificates of deposits | $ | -6,370 | $ | — | $ | -6,370 | $ | — | |||||||||
Interest rate swaps and caps | $ | -66,914 | $ | — | $ | -66,914 | $ | — | |||||||||
Foreign exchange contracts | $ | -13,080 | $ | — | $ | -13,080 | $ | — | |||||||||
Embedded derivative liabilities | $ | -3,412 | $ | — | $ | — | $ | (3,412 | ) | ||||||||
Assets (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||
as of December 31, 2014 | |||||||||||||||||
($ in thousands) | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||
December 31, 2014 | for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||
U.S. Treasury securities | $ | 873,435 | $ | 873,435 | $ | — | $ | — | |||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 311,024 | — | 311,024 | — | |||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | |||||||||||||||||
Commercial mortgage-backed securities | 141,420 | — | 141,420 | — | |||||||||||||
Residential mortgage-backed securities | 791,088 | — | 791,088 | — | |||||||||||||
Municipal securities | 250,448 | — | 250,448 | — | |||||||||||||
Other residential mortgage-backed securities: | |||||||||||||||||
Investment grade | 53,918 | — | 53,918 | — | |||||||||||||
Other commercial mortgage-backed securities: | |||||||||||||||||
Investment grade | 34,053 | — | 34,053 | — | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Investment grade | 115,182 | — | 115,182 | — | |||||||||||||
Non-investment grade | 14,681 | — | 8,153 | 6,528 | |||||||||||||
Other securities | 41,116 | 32,105 | 9,011 | — | |||||||||||||
Total available-for-sale investment securities | $ | 2,626,365 | $ | 905,540 | $ | 1,714,297 | $ | 6,528 | |||||||||
Derivative assets: | |||||||||||||||||
Foreign exchange options | $ | 6,136 | $ | — | $ | 6,136 | $ | — | |||||||||
Interest rate swaps and caps | $ | 41,534 | $ | — | $ | 41,534 | $ | — | |||||||||
Foreign exchange contracts | $ | 8,123 | $ | — | $ | 8,123 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Interest rate swaps on certificates of deposits | $ | -9,922 | $ | — | $ | -9,922 | $ | — | |||||||||
Interest rate swaps and caps | $ | -41,779 | $ | — | $ | -41,779 | $ | — | |||||||||
Foreign exchange contracts | $ | -9,171 | $ | — | $ | -9,171 | $ | — | |||||||||
Embedded derivative liabilities | $ | -3,392 | $ | — | $ | — | $ | (3,392 | ) | ||||||||
Reconciliation of assets and liabilities measured at fair value using significant unobservable inputs | |||||||||||||||||
2014 | |||||||||||||||||
2015 | |||||||||||||||||
($ in thousands) | Corporate Debt | Embedded | Corporate Debt | Embedded | |||||||||||||
Securities: | Derivatives | Securities: | Derivatives | ||||||||||||||
Non-Investment Grade | Liabilities | Non-Investment Grade | Liabilities | ||||||||||||||
Beginning balance, January 1 | $ | 6,528 | $ | -3,392 | $ | 6,371 | $ | (3,655 | ) | ||||||||
Total gains or (losses) for the period: | |||||||||||||||||
Included in earnings (1) | 960 | -20 | — | 257 | |||||||||||||
Included in other comprehensive income (unrealized)(2) | 922 | — | 434 | — | |||||||||||||
Purchases, issues, sales, settlements: | |||||||||||||||||
Purchases | — | — | — | — | |||||||||||||
Issues | — | — | — | — | |||||||||||||
Sales | -7,219 | — | — | — | |||||||||||||
Settlements | -98 | — | -88 | — | |||||||||||||
Transfer from investment grade to non-investment grade | — | — | — | — | |||||||||||||
Transfers in and/or out of Level 3 | -1,093 | — | — | — | |||||||||||||
Ending balance, March 31 | $ | — | $ | -3,412 | $ | 6,717 | $ | (3,398 | ) | ||||||||
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of March 31 | $ | — | $ | 20 | $ | — | $ | (257 | ) | ||||||||
-1 | Realized gains or losses of corporate debt securities and embedded derivative liabilities are included in net gains on sales of investment securities and other operating expense, respectively, in the consolidated statements of income. | ||||||||||||||||
-2 | Unrealized gains or losses on available-for-sale investment securities are reported in other comprehensive income, net of tax, in the consolidated statements of comprehensive income. | ||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
as of March 31, 2015 | |||||||||||||||||
($ in thousands) | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Non-PCI impaired loans: | |||||||||||||||||
Commercial Real Estate (“CRE”) | $ | 13,648 | $ | — | $ | — | $ | 13,648 | |||||||||
Commercial and Industrial (“C&I”) | 11,356 | — | — | 11,356 | |||||||||||||
Residential | 14,306 | — | — | 14,306 | |||||||||||||
Consumer | 107 | — | — | 107 | |||||||||||||
Total non-PCI impaired loans | $ | 39,417 | $ | — | $ | — | $ | 39,417 | |||||||||
OREO | $ | 1,676 | $ | — | $ | — | $ | 1,676 | |||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
as of December 31, 2014 | |||||||||||||||||
($ in thousands) | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Non-PCI impaired loans: | |||||||||||||||||
CRE | $ | 26,089 | $ | — | $ | — | $ | 26,089 | |||||||||
C&I | 16,581 | — | — | 16,581 | |||||||||||||
Residential | 25,034 | — | — | 25,034 | |||||||||||||
Consumer | 107 | — | — | 107 | |||||||||||||
Total non-PCI impaired loans | $ | 67,811 | $ | — | $ | — | $ | 67,811 | |||||||||
OREO | $ | 17,521 | $ | — | $ | — | $ | 17,521 | |||||||||
Summary of increase (decrease) in value of certain assets for which a nonrecurring fair value adjustment has been recognized | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
($ in thousands) | 2015 | 2014 | |||||||||||||||
Non-PCI impaired loans: | |||||||||||||||||
CRE | $ | 841 | $ | -464 | |||||||||||||
C&I | -2,470 | -6,530 | |||||||||||||||
Residential | -239 | -365 | |||||||||||||||
Consumer | — | — | |||||||||||||||
Total non-PCI impaired loans | $ | -1,868 | $ | -7,359 | |||||||||||||
OREO | $ | -277 | $ | -526 | |||||||||||||
Carrying amounts and fair values of financial instruments | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
($ in thousands) | Carrying | Level 1 | Level 2 | Level 3 | Estimated | ||||||||||||
Amount | Fair Value | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,886,199 | $ | 1,886,199 | $ | — | $ | — | $ | 1,886,199 | |||||||
Short-term investments | $ | 325,350 | $ | — | $ | 325,350 | $ | — | $ | 325,350 | |||||||
Securities purchased under resale agreements | $ | 1,550,000 | $ | — | $ | 1,597,101 | $ | — | $ | 1,597,101 | |||||||
Loans held for sale | $ | 196,111 | $ | — | $ | 196,111 | $ | — | $ | 196,111 | |||||||
Loans receivable, net | $ | 21,116,931 | $ | — | $ | — | $ | 20,905,743 | $ | 20,905,743 | |||||||
Investment in Federal Home Loan Bank stock | $ | 28,603 | $ | — | $ | 28,603 | $ | — | $ | 28,603 | |||||||
Investment in Federal Reserve Bank stock | $ | 54,556 | $ | — | $ | 54,556 | $ | — | $ | 54,556 | |||||||
Accrued interest receivable | $ | 86,186 | $ | — | $ | 86,186 | $ | — | $ | 86,186 | |||||||
Financial Liabilities: | |||||||||||||||||
Customer deposit accounts: | |||||||||||||||||
Demand, savings and money market deposits | $ | 18,786,462 | $ | — | $ | 18,786,462 | $ | — | $ | 18,786,462 | |||||||
Time deposits | $ | 6,376,371 | $ | — | $ | — | $ | 6,358,260 | $ | 6,358,260 | |||||||
Federal Home Loan Bank advances | $ | 317,777 | $ | — | $ | 334,286 | $ | — | $ | 334,286 | |||||||
Securities sold under repurchase agreements | $ | 695,000 | $ | — | $ | 751,270 | $ | — | $ | 751,270 | |||||||
Accrued interest payable | $ | 12,141 | $ | — | $ | 12,141 | $ | — | $ | 12,141 | |||||||
Long-term debt | $ | 220,905 | $ | — | $ | 207,906 | $ | — | $ | 207,906 | |||||||
December 31, 2014 | |||||||||||||||||
($ in thousands) | Carrying | Level 1 | Level 2 | Level 3 | Estimated | ||||||||||||
Amount | Fair Value | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,039,885 | $ | 1,039,885 | $ | — | $ | — | $ | 1,039,885 | |||||||
Short-term investments | $ | 338,714 | $ | — | $ | 338,714 | $ | — | $ | 338,714 | |||||||
Securities purchased under resale agreements | $ | 1,225,000 | $ | — | $ | 1,191,060 | $ | — | $ | 1,191,060 | |||||||
Loans held for sale | $ | 45,950 | $ | — | $ | 45,950 | $ | — | $ | 45,950 | |||||||
Loans receivable, net | $ | 21,468,270 | $ | — | $ | — | $ | 20,997,379 | $ | 20,997,379 | |||||||
Investment in Federal Home Loan Bank stock | $ | 31,239 | $ | — | $ | 31,239 | $ | — | $ | 31,239 | |||||||
Investment in Federal Reserve Bank stock | $ | 54,451 | $ | — | $ | 54,451 | $ | — | $ | 54,451 | |||||||
Accrued interest receivable | $ | 88,303 | $ | — | $ | 88,303 | $ | — | $ | 88,303 | |||||||
Financial Liabilities: | |||||||||||||||||
Customer deposit accounts: | |||||||||||||||||
Demand, savings and money market deposits | $ | 17,896,035 | $ | — | $ | 17,896,035 | $ | — | $ | 17,896,035 | |||||||
Time deposits | $ | 6,112,739 | $ | — | $ | — | $ | 6,095,217 | $ | 6,095,217 | |||||||
Federal Home Loan Bank advances | $ | 317,241 | $ | — | $ | 336,302 | $ | — | $ | 336,302 | |||||||
Securities sold under repurchase agreements | $ | 795,000 | $ | — | $ | 870,434 | $ | — | $ | 870,434 | |||||||
Accrued interest payable | $ | 11,303 | $ | — | $ | 11,303 | $ | — | $ | 11,303 | |||||||
Long-term debt | $ | 225,848 | $ | — | $ | 205,777 | $ | — | $ | 205,777 | |||||||
Fair Value, Measurements, Recurring | |||||||||||||||||
Quantitative information | |||||||||||||||||
Schedule of quantitative information about significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 | |||||||||||||||||
($ in thousands) | Valuation | Unobservable | Range of Inputs | Weighted | |||||||||||||
Fair Value | Technique(s) | Input(s) | Average | ||||||||||||||
Measurements | |||||||||||||||||
(Level 3) | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Embedded derivative liabilities | $ | (3,412 | ) | Discounted cash flow | Credit risk | 0.03% - 0.07% | 0.06% | ||||||||||
December 31, 2014 | |||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||
Corporate debt securities: | |||||||||||||||||
Non-investment grade | $ | 6,528 | Discounted cash flow | Constant prepayment rate | 0.00% - 1.00% | 0.73% | |||||||||||
Constant default rate | 0.75% - 1.20% | 0.87% | |||||||||||||||
Loss severity | 85.00% | 85.00% | |||||||||||||||
Discount margin | 4.50% - 7.50% | 6.94% | |||||||||||||||
Embedded derivative liabilities | $ | (3,392 | ) | Discounted cash flow | Credit risk | 0.12% - 0.14% | 0.13% | ||||||||||
Fair Value, Measurements, Nonrecurring | |||||||||||||||||
Quantitative information | |||||||||||||||||
Schedule of quantitative information about significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 | |||||||||||||||||
($ in thousands) | Fair Value | Valuation | Unobservable | Range of Inputs | Weighted | ||||||||||||
Measurements | Technique(s) | Input(s) | Average | ||||||||||||||
(Level 3) | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Non-PCI impaired loans | $ | 3,578 | Discounted cash flow | Discount rate | 0% - 86% | 58% | |||||||||||
$ | 35,839 | Market comparables | Discount rate (1) | 0% - 100% | 7% | ||||||||||||
OREO | $ | 1,676 | Appraisal | Selling cost | 8% | 8% | |||||||||||
December 31, 2014 | |||||||||||||||||
Non-PCI impaired loans | $ | 11,499 | Discounted cash flow | Discount rate | 0% - 81% | 49% | |||||||||||
$ | 56,312 | Market comparables | Discount rate (1) | 0% - 100% | 4% | ||||||||||||
OREO | $ | 17,521 | Appraisal | Selling cost | 8% | 8% | |||||||||||
-1 | Discount rate is adjusted for factors such as liquidation cost of collateral and selling costs. | ||||||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||
Summary of stock options activity | ||||||||||||
The following table presents the activity for the Company’s stock options as of and for the three months ended March 31, 2015: | ||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||
Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | ||||||||||
Price | Contractual | (In thousands) | ||||||||||
Term | ||||||||||||
Outstanding at beginning of period | 42,116 | $ | 20.75 | — | $ | — | ||||||
Granted | — | — | — | — | ||||||||
Exercised | -39,751 | 21.09 | — | — | ||||||||
Expired | — | — | — | — | ||||||||
Outstanding at end of period | 2,365 | $ | 14.95 | 0.77 years | $ | 60 | ||||||
Vested or expected to vest at end of period | 2,365 | $ | 14.95 | 0.77 years | $ | 60 | ||||||
Exercisable at end of period | 2,365 | $ | 14.95 | 0.77 years | $ | 60 | ||||||
Schedule of time-based and performance-based restricted stock awards activity | ||||||||||||
March 31, 2015 | ||||||||||||
Restricted Stock Awards | ||||||||||||
Time-Based | Performance-Based | |||||||||||
Shares | Weighted | Shares | Weighted | |||||||||
Average | Average | |||||||||||
Price | Price | |||||||||||
Outstanding at beginning of period | 751,020 | $ | 30.61 | 518,553 | $ | 29.64 | ||||||
Granted | 411,802 | 38.85 | 149,284 | 39.95 | ||||||||
Vested | -207,495 | 23.27 | -144,445 | 22.05 | ||||||||
Forfeited | -13,119 | 34.05 | — | — | ||||||||
Outstanding at end of period | 942,208 | $ | 35.78 | 523,392 | $ | 35.64 | ||||||
SECURITIES_REPURCHASED_UNDER_R
SECURITIES REPURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS | ||||||||||||||||||||
Schedule of balance sheet offsetting for resale agreements and repurchase agreements | ||||||||||||||||||||
($ in thousands) | As of March 31, 2015 | |||||||||||||||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Gross Amounts | Assets Presented | Consolidated Balance Sheet | ||||||||||||||||||
Gross Amounts | Offset on the | on the | ||||||||||||||||||
of Recognized | Consolidated | Consolidated | Financial | Collateral | ||||||||||||||||
Assets | Assets | Balance Sheet | Balance Sheet | Instruments | Received | Net Amount | ||||||||||||||
Resale agreements | $ | 1,850,000 | $ | -300,000 | $ | 1,550,000 | $ | -350,000 | $ | -1,195,203 | $ | 4,797 | ||||||||
-1 | -2 | |||||||||||||||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Liabilities | Consolidated Balance Sheet | |||||||||||||||||||
Gross Amounts | Presented | |||||||||||||||||||
Gross Amounts | Offset on the | on the | ||||||||||||||||||
of Recognized | Consolidated | Consolidated | Financial | Collateral | ||||||||||||||||
Liabilities | Liabilities | Balance Sheet | Balance Sheet | Instruments | Posted | Net Amount | ||||||||||||||
Repurchase agreements | $ | 995,000 | $ | -300,000 | $ | 695,000 | $ | -350,000 | -1 | $ | -345,000 | -3 | $ | — | ||||||
($ in thousands) | As of December 31, 2014 | |||||||||||||||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Gross Amounts | Assets Presented | Consolidated Balance Sheet | ||||||||||||||||||
Gross Amounts | Offset on the | on the | ||||||||||||||||||
of Recognized | Consolidated | Consolidated | Financial | Collateral | ||||||||||||||||
Assets | Assets | Balance Sheet | Balance Sheet | Instruments | Received | Net Amount | ||||||||||||||
Resale agreements | $ | 1,425,000 | $ | -200,000 | $ | 1,225,000 | $ | -425,000 | $ | -797,172 | $ | 2,828 | ||||||||
-1 | -2 | |||||||||||||||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Liabilities | Consolidated Balance Sheet | |||||||||||||||||||
Gross Amounts | Presented | |||||||||||||||||||
Gross Amounts | Offset on the | on the | ||||||||||||||||||
of Recognized | Consolidated | Consolidated | Financial | Collateral | ||||||||||||||||
Liabilities | Liabilities | Balance Sheet | Balance Sheet | Instruments | Posted | Net Amount | ||||||||||||||
Repurchase agreements | $ | 995,000 | $ | -200,000 | $ | 795,000 | $ | -425,000 | -1 | $ | -370,000 | -3 | $ | — | ||||||
-1 | Includes financial instruments subject to enforceable master netting arrangements that are not permitted to be offset under ASC 210-20-45 but would be eligible for offsetting to the extent an event of default has occurred. | |||||||||||||||||||
-2 | Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. | |||||||||||||||||||
-3 | Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability owed to each counterparty. | |||||||||||||||||||
AVAILABLEFORSALE_INVESTMENT_SE1
AVAILABLE-FOR-SALE INVESTMENT SECURITIES (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
AVAILABLE-FOR-SALE INVESTMENT SECURITIES | ||||||||||||||||||||
Schedule of amortized cost, gross unrealized gains, gross unrealized losses and fair value by major categories of available-for-sale investment securities | ||||||||||||||||||||
($ in thousands) | Amortized | Gross | Gross | Fair | ||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Available-for-sale investment securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | 1,162,801 | $ | 9,586 | $ | -161 | $ | 1,172,226 | ||||||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 411,275 | 1,143 | -452 | 411,966 | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | ||||||||||||||||||||
Commercial mortgage-backed securities | 94,330 | 1,242 | -337 | 95,235 | ||||||||||||||||
Residential mortgage-backed securities | 717,693 | 11,274 | -1,611 | 727,356 | ||||||||||||||||
Municipal securities | 187,244 | 4,800 | -798 | 191,246 | ||||||||||||||||
Other residential mortgage-backed securities: | ||||||||||||||||||||
Investment grade (1) | 50,297 | 1,310 | -106 | 51,501 | ||||||||||||||||
Corporate debt securities: | ||||||||||||||||||||
Investment grade (1) | 141,140 | — | -739 | 140,401 | ||||||||||||||||
Non-investment grade (1) | 11,524 | — | -2,023 | 9,501 | ||||||||||||||||
Other securities | 41,543 | 436 | -326 | 41,653 | ||||||||||||||||
Total available-for-sale investment securities | $ | 2,817,847 | $ | 29,791 | $ | -6,553 | $ | 2,841,085 | ||||||||||||
December 31, 2014 | ||||||||||||||||||||
Available-for-sale investment securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | 873,101 | $ | 1,971 | $ | -1,637 | $ | 873,435 | ||||||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 311,927 | 490 | -1,393 | 311,024 | ||||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | ||||||||||||||||||||
Commercial mortgage-backed securities | 140,957 | 1,056 | -593 | 141,420 | ||||||||||||||||
Residential mortgage-backed securities | 785,412 | 9,754 | -4,078 | 791,088 | ||||||||||||||||
Municipal securities | 245,408 | 6,202 | -1,162 | 250,448 | ||||||||||||||||
Other residential mortgage-backed securities: | ||||||||||||||||||||
Investment grade (1) | 52,694 | 1,359 | -135 | 53,918 | ||||||||||||||||
Other commercial mortgage-backed securities: | ||||||||||||||||||||
Investment grade (1) | 34,000 | 53 | — | 34,053 | ||||||||||||||||
Corporate debt securities: | ||||||||||||||||||||
Investment grade (1) | 116,236 | — | -1,054 | 115,182 | ||||||||||||||||
Non-investment grade (1) | 17,881 | — | -3,200 | 14,681 | ||||||||||||||||
Other securities | 41,589 | 243 | -716 | 41,116 | ||||||||||||||||
Total available-for-sale investment securities | $ | 2,619,205 | $ | 21,128 | $ | -13,968 | $ | 2,626,365 | ||||||||||||
-1 | Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody’s are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade. | |||||||||||||||||||
Schedule of sales of available-for-sale investment securities | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
($ in thousands) | 2015 | 2014 | ||||||||||||||||||
Proceeds from sales | $ | 180,501 | $ | 330,231 | ||||||||||||||||
Gross realized gains | $ | 4,404 | $ | 3,545 | ||||||||||||||||
Gross realized losses | $ | — | $ | 127 | -1 | |||||||||||||||
Related tax expense | $ | 1,850 | $ | 1,436 | ||||||||||||||||
-1 | The gross $127 thousand of losses resulted from the available-for-sale investment securities acquired from MetroCorp which were sold immediately after the acquisition closed. | |||||||||||||||||||
Schedule of other than temporary impairment credit losses recognized in earnings | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
($ in thousands) | 2015 | 2014 | ||||||||||||||||||
Beginning balance | $ | 112,338 | $ | 115,511 | ||||||||||||||||
Addition of OTTI that was not previously recognized | — | — | ||||||||||||||||||
Additional increases to the amount related to the credit loss for which an OTTI was previously recognized | — | — | ||||||||||||||||||
Reduction for securities sold | -5,650 | — | ||||||||||||||||||
Ending balance | $ | 106,688 | $ | 115,511 | ||||||||||||||||
Gross unrealized losses and related fair values of available-for-sale investment securities | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Available-for-sale investment securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | 61,684 | $ | -37 | $ | 50,860 | $ | -124 | $ | 112,544 | $ | -161 | ||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 144,114 | -383 | 24,927 | -69 | 169,041 | -452 | ||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | ||||||||||||||||||||
Commercial mortgage-backed securities | 14,119 | -141 | 13,541 | -196 | 27,660 | -337 | ||||||||||||||
Residential mortgage-backed securities | 40,969 | -97 | 103,488 | -1,514 | 144,457 | -1,611 | ||||||||||||||
Municipal securities | 26,905 | -335 | 15,783 | -463 | 42,688 | -798 | ||||||||||||||
Other residential mortgage-backed securities: | ||||||||||||||||||||
Investment grade | — | — | 6,985 | -106 | 6,985 | -106 | ||||||||||||||
Corporate debt securities: | ||||||||||||||||||||
Investment grade | — | — | 90,401 | -739 | 90,401 | -739 | ||||||||||||||
Non-investment grade | — | — | 9,501 | -2,023 | 9,501 | -2,023 | ||||||||||||||
Other securities | 8,674 | -326 | — | — | 8,674 | -326 | ||||||||||||||
Total available-for-sale investment securities | $ | 296,465 | $ | -1,319 | $ | 315,486 | $ | -5,234 | $ | 611,951 | $ | -6,553 | ||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Available-for-sale investment securities: | ||||||||||||||||||||
U.S. Treasury securities | $ | 170,260 | $ | -266 | $ | 163,800 | $ | -1,371 | $ | 334,060 | $ | -1,637 | ||||||||
U.S. government agency and U.S. government sponsored enterprise debt securities | 69,438 | -504 | 124,104 | -889 | 193,542 | -1,393 | ||||||||||||||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: | ||||||||||||||||||||
Commercial mortgage-backed securities | 45,405 | -257 | 16,169 | -336 | 61,574 | -593 | ||||||||||||||
Residential mortgage-backed securities | 81,927 | -270 | 241,047 | -3,808 | 322,974 | -4,078 | ||||||||||||||
Municipal securities | 6,391 | -26 | 61,107 | -1,136 | 67,498 | -1,162 | ||||||||||||||
Other residential mortgage-backed securities: | ||||||||||||||||||||
Investment grade | — | — | 7,217 | -135 | 7,217 | -135 | ||||||||||||||
Corporate debt securities: | ||||||||||||||||||||
Investment grade | 25,084 | -12 | 90,098 | -1,042 | 115,182 | -1,054 | ||||||||||||||
Non-investment grade | — | — | 14,681 | -3,200 | 14,681 | -3,200 | ||||||||||||||
Other securities | 15,885 | -716 | — | — | 15,885 | -716 | ||||||||||||||
Total available-for-sale investment securities | $ | 414,390 | $ | -2,051 | $ | 718,223 | $ | -11,917 | $ | 1,132,613 | $ | -13,968 | ||||||||
Scheduled maturities of available-for-sale investment securities | The following table presents the scheduled maturities of available-for-sale investment securities as of March 31, 2015: | |||||||||||||||||||
($ in thousands) | Amortized Cost | Fair Value | ||||||||||||||||||
Due within one year | $ | 435,764 | $ | 434,493 | ||||||||||||||||
Due after one year through five years | 1,275,954 | 1,289,312 | ||||||||||||||||||
Due after five years through ten years | 311,367 | 311,157 | ||||||||||||||||||
Due after ten years | 794,762 | 806,123 | ||||||||||||||||||
Total available-for-sale investment securities | $ | 2,817,847 | $ | 2,841,085 | ||||||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||
Total notional and fair values of derivatives | ||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
($ in thousands) | Notional | Derivative | Derivative | Notional | Derivative | Derivative | ||||||||||||||
Amount | Assets (1) | Liabilities (1) | Amount | Assets (1) | Liabilities (1) | |||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps on certificates of deposit | $ | 129,096 | $ | — | $ | 6,370 | $ | 132,667 | $ | — | $ | 9,922 | ||||||||
Total derivatives designated as hedging instruments | $ | 129,096 | $ | — | $ | 6,370 | $ | 132,667 | $ | — | $ | 9,922 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange options | $ | 50,000 | $ | 3,683 | $ | — | $ | 85,614 | $ | 6,136 | $ | — | ||||||||
Embedded derivative liabilities | 47,794 | — | 3,412 | 47,838 | — | 3,392 | ||||||||||||||
Interest rate swaps and caps | 5,204,760 | 66,060 | 66,914 | 4,858,391 | 41,534 | 41,779 | ||||||||||||||
Foreign exchange contracts | 1,037,967 | 13,340 | 13,080 | 680,629 | 8,123 | 9,171 | ||||||||||||||
Total derivatives not designated as hedging instruments | $ | 6,340,521 | $ | 83,083 | $ | 83,406 | $ | 5,672,472 | $ | 55,793 | $ | 54,342 | ||||||||
-1 | Derivative assets are included in Other Assets. Derivative liabilities are included in Accrued Expenses and Other liabilities, and Deposits. | |||||||||||||||||||
Net gains (losses) recognized in the Income Statement related to derivatives in fair value hedging relationships | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
($ in thousands) | 2015 | 2014 | ||||||||||||||||||
Gains (losses) recorded in interest expense | ||||||||||||||||||||
Recognized on interest rate swaps | $ | 3,048 | $ | 2,704 | ||||||||||||||||
Recognized on certificates of deposits | -2,695 | (2,937 | ) | |||||||||||||||||
Net amount recognized on fair value hedges (ineffective portion) | $ | 353 | $ | (233 | ) | |||||||||||||||
Reduction in interest expense recognized on interest rate swaps | $ | 920 | $ | 1,824 | ||||||||||||||||
Net gains (losses) recognized in the Income Statement related to derivatives not designated as hedging instruments | ||||||||||||||||||||
Location in | Three Months Ended March 31, | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
($ in thousands) | Statements of Income | 2015 | 2014 | |||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange options | Foreign exchange income | $ | 199 | $ | (119 | ) | ||||||||||||||
Foreign exchange options with embedded derivatives | Other operating expense | -141 | 1 | |||||||||||||||||
Interest rate swaps and caps | Other operating income | -594 | (936 | ) | ||||||||||||||||
Foreign exchange contracts | Foreign exchange income | 1,308 | (2,129 | ) | ||||||||||||||||
Total net gains (losses) | $ | 772 | $ | (3,183 | ) | |||||||||||||||
Balance sheet offsetting of derivative assets and liabilities | ||||||||||||||||||||
($ in thousands) | As of March 31, 2015 | |||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset on the | ||||||||||||||||||
Assets Presented | Consolidated Balance Sheet | |||||||||||||||||||
Assets | Gross Amounts | Offset on the | on the | Financial | Collateral | Net Amount | ||||||||||||||
of Recognized | Consolidated | Consolidated | Instruments | Received | ||||||||||||||||
Assets | Balance Sheet | Balance Sheet | ||||||||||||||||||
Derivatives | $ | 13,564 | $ | — | $ | 13,564 | $ | -6,002 | (1) | $ | -6,480 | (2) | $ | 1,082 | ||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Liabilities | Consolidated Balance Sheet | |||||||||||||||||||
Liabilities | Gross Amounts | Gross Amounts | Presented | Financial | Collateral Posted | Net Amount | ||||||||||||||
of Recognized | Offset on the | on the | Instruments | |||||||||||||||||
Liabilities | Consolidated | Consolidated | ||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||
Derivatives | $ | 79,890 | $ | — | $ | 79,890 | $ | -6,002 | (1) | $ | -72,018 | (3) | $ | 1,870 | ||||||
($ in thousands) | As of December 31, 2014 | |||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset on the | ||||||||||||||||||
Assets Presented | Consolidated Balance Sheet | |||||||||||||||||||
Assets | Gross Amounts | Offset on the | on the | Financial | Collateral | Net Amount | ||||||||||||||
of Recognized | Consolidated | Consolidated | Instruments | Received | ||||||||||||||||
Assets | Balance Sheet | Balance Sheet | ||||||||||||||||||
Derivatives | $ | 12,396 | $ | — | $ | 12,396 | $ | -5,725 | (1) | $ | -3,463 | (2) | $ | 3,208 | ||||||
Net Amounts of | Gross Amounts Not Offset on the | |||||||||||||||||||
Liabilities | Consolidated Balance Sheet | |||||||||||||||||||
Liabilities | Gross Amounts | Gross Amounts | Presented | Financial | Collateral Posted | Net Amount | ||||||||||||||
of Recognized | Offset on the | on the | Instruments | |||||||||||||||||
Liabilities | Consolidated | Consolidated | ||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||
Derivatives | $ | 56,505 | $ | — | $ | 56,505 | $ | -5,725 | (1) | $ | -49,951 | (3) | $ | 829 | ||||||
-1 | Represents the netting of derivative receivable and payable balance for the same counterparty under enforceable master netting arrangements if the Company has elected to net. | |||||||||||||||||||
-2 | Represents $6.5 million and $3.5 million of cash collateral received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||
-3 | Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements. Includes approximately $19.0 million and $12.8 million of cash collateral posted as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||
LOANS_RECEIVABLE_AND_ALLOWANCE1
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||||
Schedule of the composition of Non-PCI and PCI loans | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
($ in thousands) | Non-PCI Loans | PCI Loans (1) | Total (1) | Non-PCI Loans | PCI Loans (1) | Total (1) | |||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income Producing | $ | 5,802,931 | $ | 652,246 | $ | 6,455,177 | $ | 5,568,046 | $ | 688,013 | $ | 6,256,059 | |||||||||||||||||
Construction | 358,118 | 9,342 | 367,460 | 319,843 | 12,444 | 332,287 | |||||||||||||||||||||||
Land | 209,992 | 12,792 | 222,784 | 214,327 | 16,840 | 231,167 | |||||||||||||||||||||||
Total CRE | 6,371,041 | 674,380 | 7,045,421 | 6,102,216 | 717,297 | 6,819,513 | |||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 6,799,149 | 72,301 | 6,871,450 | 7,097,853 | 83,336 | 7,181,189 | |||||||||||||||||||||||
Trade finance | 844,090 | 5,224 | 849,314 | 889,728 | 6,284 | 896,012 | |||||||||||||||||||||||
Total C&I | 7,643,239 | 77,525 | 7,720,764 | 7,987,581 | 89,620 | 8,077,201 | |||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 3,298,775 | 214,019 | 3,512,794 | 3,647,262 | 219,519 | 3,866,781 | |||||||||||||||||||||||
Multifamily | 1,240,359 | 244,066 | 1,484,425 | 1,184,017 | 265,891 | 1,449,908 | |||||||||||||||||||||||
Total residential | 4,539,134 | 458,085 | 4,997,219 | 4,831,279 | 485,410 | 5,316,689 | |||||||||||||||||||||||
Consumer | 1,584,168 | 27,996 | 1,612,164 | 1,483,956 | 29,786 | 1,513,742 | |||||||||||||||||||||||
Total loans | $ | 20,137,582 | $ | 1,237,986 | $ | 21,375,568 | $ | 20,405,032 | $ | 1,322,113 | $ | 21,727,145 | |||||||||||||||||
Unearned fees, premiums, and discounts, net | -899 | — | -899 | 2,804 | — | 2,804 | |||||||||||||||||||||||
Allowance for loan losses | -257,095 | -643 | -257,738 | -260,965 | -714 | -261,679 | |||||||||||||||||||||||
Loans, net | $ | 19,879,588 | $ | 1,237,343 | $ | 21,116,931 | $ | 20,146,871 | $ | 1,321,399 | $ | 21,468,270 | |||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
Summary of credit risk rating by portfolio segment | |||||||||||||||||||||||||||||
($ in thousands) | Pass/Watch | Special | Substandard | Doubtful | Loss | Total Non-PCI | |||||||||||||||||||||||
Mention | Loans | ||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 5,488,698 | $ | 56,245 | $ | 257,988 | $ | — | $ | — | $ | 5,802,931 | |||||||||||||||||
Construction | 353,799 | 703 | 3,616 | — | — | 358,118 | |||||||||||||||||||||||
Land | 187,364 | 5,701 | 16,927 | — | — | 209,992 | |||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 6,573,081 | 93,302 | 132,286 | 426 | 54 | 6,799,149 | |||||||||||||||||||||||
Trade finance | 788,864 | 19,726 | 35,500 | — | — | 844,090 | |||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 3,277,085 | 3,595 | 18,095 | — | — | 3,298,775 | |||||||||||||||||||||||
Multifamily | 1,162,798 | 4,906 | 72,655 | — | — | 1,240,359 | |||||||||||||||||||||||
Consumer | 1,581,116 | 336 | 2,716 | — | — | 1,584,168 | |||||||||||||||||||||||
Total | $ | 19,412,805 | $ | 184,514 | $ | 539,783 | $ | 426 | $ | 54 | $ | 20,137,582 | |||||||||||||||||
($ in thousands) | Pass/Watch | Special | Substandard | Doubtful | Loss | Total Non-PCI | |||||||||||||||||||||||
Mention | Loans | ||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 5,243,640 | $ | 54,673 | $ | 269,733 | $ | — | $ | — | $ | 5,568,046 | |||||||||||||||||
Construction | 310,259 | 11 | 9,573 | — | — | 319,843 | |||||||||||||||||||||||
Land | 185,220 | 5,701 | 23,406 | — | — | 214,327 | |||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 6,836,914 | 130,319 | 130,032 | 533 | 55 | 7,097,853 | |||||||||||||||||||||||
Trade finance | 845,889 | 13,031 | 30,808 | — | — | 889,728 | |||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 3,627,491 | 3,143 | 16,628 | — | — | 3,647,262 | |||||||||||||||||||||||
Multifamily | 1,095,982 | 5,124 | 82,911 | — | — | 1,184,017 | |||||||||||||||||||||||
Consumer | 1,480,208 | 1,005 | 2,743 | — | — | 1,483,956 | |||||||||||||||||||||||
Total | $ | 19,625,603 | $ | 213,007 | $ | 565,834 | $ | 533 | $ | 55 | $ | 20,405,032 | |||||||||||||||||
($ in thousands) | Pass/Watch | Special | Substandard | Doubtful | Total PCI Loans | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 517,827 | $ | 6,164 | $ | 128,255 | $ | — | $ | 652,246 | |||||||||||||||||||
Construction | 585 | 1,739 | 7,018 | — | 9,342 | ||||||||||||||||||||||||
Land | 5,080 | 5,433 | 2,279 | — | 12,792 | ||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 62,858 | 997 | 8,446 | — | 72,301 | ||||||||||||||||||||||||
Trade finance | 3,535 | — | 1,689 | — | 5,224 | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 208,238 | 745 | 5,036 | — | 214,019 | ||||||||||||||||||||||||
Multifamily | 211,060 | — | 33,006 | — | 244,066 | ||||||||||||||||||||||||
Consumer | 27,330 | 115 | 551 | — | 27,996 | ||||||||||||||||||||||||
Total (1) | $ | 1,036,513 | $ | 15,193 | $ | 186,280 | $ | — | $ | 1,237,986 | |||||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
($ in thousands) | Pass/Watch | Special | Substandard | Doubtful | Total PCI Loans | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 534,015 | $ | 9,960 | $ | 144,038 | $ | — | $ | 688,013 | |||||||||||||||||||
Construction | 589 | 1,744 | 10,111 | — | 12,444 | ||||||||||||||||||||||||
Land | 7,012 | 5,391 | 4,437 | — | 16,840 | ||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 70,586 | 1,103 | 11,647 | — | 83,336 | ||||||||||||||||||||||||
Trade finance | 4,620 | — | 1,664 | — | 6,284 | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 213,829 | 374 | 5,316 | — | 219,519 | ||||||||||||||||||||||||
Multifamily | 230,049 | — | 35,842 | — | 265,891 | ||||||||||||||||||||||||
Consumer | 29,026 | 116 | 644 | — | 29,786 | ||||||||||||||||||||||||
Total (1) | $ | 1,089,726 | $ | 18,688 | $ | 213,699 | $ | — | $ | 1,322,113 | |||||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
Schedule of aging analysis on non-PCI loans | |||||||||||||||||||||||||||||
($ in thousands) | Accruing | Accruing | Total | Nonaccrual | Nonaccrual | Total | Current | Total Non-PCI | |||||||||||||||||||||
Loans | Loans | Accruing | Loans Less | Loans | Nonaccrual | Accruing | Loans | ||||||||||||||||||||||
30-59 Days | 60-89 Days | Past Due | Than 90 Days | 90 or More | Loans | Loans | |||||||||||||||||||||||
Past Due | Past Due | Loans | Past Due | Days Past Due | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 9,699 | $ | 1,860 | $ | 11,559 | $ | 18,739 | $ | 11,011 | $ | 29,750 | $ | 5,761,622 | $ | 5,802,931 | |||||||||||||
Construction | — | — | — | 14 | 917 | 931 | 357,187 | 358,118 | |||||||||||||||||||||
Land | — | — | — | 214 | 2,386 | 2,600 | 207,392 | 209,992 | |||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 11,227 | 902 | 12,129 | 5,988 | 25,436 | 31,424 | 6,755,596 | 6,799,149 | |||||||||||||||||||||
Trade finance | — | 600 | 600 | 37 | — | 37 | 843,453 | 844,090 | |||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 7,239 | 2,402 | 9,641 | 4,731 | 4,406 | 9,137 | 3,279,997 | 3,298,775 | |||||||||||||||||||||
Multifamily | 2,611 | 376 | 2,987 | 12,216 | 1,145 | 13,361 | 1,224,011 | 1,240,359 | |||||||||||||||||||||
Consumer | 883 | 2 | 885 | 166 | 374 | 540 | 1,582,743 | 1,584,168 | |||||||||||||||||||||
Total | $ | 31,659 | $ | 6,142 | $ | 37,801 | $ | 42,105 | $ | 45,675 | $ | 87,780 | $ | 20,012,001 | $ | 20,137,582 | |||||||||||||
Unearned fees, premiums and discounts, net | -899 | ||||||||||||||||||||||||||||
Total recorded investment in non-PCI loans | $ | 20,136,683 | |||||||||||||||||||||||||||
($ in thousands) | Accruing | Accruing | Total | Nonaccrual | Nonaccrual | Total | Current | Total Non-PCI | |||||||||||||||||||||
Loans | Loans | Accruing | Loans Less | Loans | Nonaccrual | Accruing | Loans | ||||||||||||||||||||||
30-59 Days | 60-89 Days | Past Due | Than 90 Days | 90 or More | Loans | Loans | |||||||||||||||||||||||
Past Due | Past Due | Loans | Past Due | Days Past Due | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 14,171 | $ | 3,593 | $ | 17,764 | $ | 19,348 | $ | 9,165 | $ | 28,513 | $ | 5,521,769 | $ | 5,568,046 | |||||||||||||
Construction | — | — | — | 15 | 6,898 | 6,913 | 312,930 | 319,843 | |||||||||||||||||||||
Land | — | — | — | 221 | 2,502 | 2,723 | 211,604 | 214,327 | |||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 3,187 | 4,361 | 7,548 | 6,623 | 21,813 | 28,436 | 7,061,869 | 7,097,853 | |||||||||||||||||||||
Trade finance | — | — | — | 73 | 292 | 365 | 889,363 | 889,728 | |||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 6,381 | 1,294 | 7,675 | 2,861 | 5,764 | 8,625 | 3,630,962 | 3,647,262 | |||||||||||||||||||||
Multifamily | 4,425 | 507 | 4,932 | 12,460 | 8,359 | 20,819 | 1,158,266 | 1,184,017 | |||||||||||||||||||||
Consumer | 2,154 | 162 | 2,316 | 169 | 3,699 | 3,868 | 1,477,772 | 1,483,956 | |||||||||||||||||||||
Total | $ | 30,318 | $ | 9,917 | $ | 40,235 | $ | 41,770 | $ | 58,492 | $ | 100,262 | $ | 20,264,535 | $ | 20,405,032 | |||||||||||||
Unearned fees, premiums and discounts, net | 2,804 | ||||||||||||||||||||||||||||
Total recorded investment in non-PCI loans | $ | 20,407,836 | |||||||||||||||||||||||||||
Summary of additions to non-PCI troubled debt restructurings | |||||||||||||||||||||||||||||
Loans Modified as TDRs During the Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
($ in thousands) | Number | Pre-Modification | Post-Modification | Financial | Number | Pre-Modification | Post-Modification | Financial | |||||||||||||||||||||
of | Outstanding | Outstanding | Impact (2) | of | Outstanding | Outstanding | Impact (2) | ||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | Recorded | Recorded | ||||||||||||||||||||||||
Investment | Investment (1) | Investment | Investment (1) | ||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | 1 | $ | 828 | $ | 833 | $ | — | — | $ | — | $ | — | $ | — | |||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 1 | $ | 167 | $ | 164 | $ | -32 | 5 | $ | 1,721 | $ | 1,691 | $ | 1,248 | |||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 1 | $ | 281 | $ | 281 | $ | -2 | 3 | $ | 5,823 | $ | 5,804 | $ | — | |||||||||||||||
-1 | Includes subsequent payments after modification and reflects the balance as of March 31, 2015 and 2014. | ||||||||||||||||||||||||||||
-2 | The financial impact includes charge-offs and specific reserves recorded at modification date. | ||||||||||||||||||||||||||||
Summary of non-PCI impaired loans | |||||||||||||||||||||||||||||
($ in thousands) | Unpaid | Recorded | Recorded | Total | Related | ||||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | |||||||||||||||||||||||||
Balance | With No | With | Investment | ||||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 50,389 | $ | 28,186 | $ | 15,001 | $ | 43,187 | $ | 1,399 | |||||||||||||||||||
Construction | 916 | 916 | — | 916 | — | ||||||||||||||||||||||||
Land | 8,234 | 2,826 | 543 | 3,369 | 175 | ||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 43,289 | 10,815 | 28,186 | 39,001 | 17,886 | ||||||||||||||||||||||||
Trade finance | 223 | — | 216 | 216 | 20 | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 16,767 | 7,007 | 8,404 | 15,411 | 413 | ||||||||||||||||||||||||
Multifamily | 29,262 | 20,200 | 6,594 | 26,794 | 279 | ||||||||||||||||||||||||
Consumer | 1,258 | 1,150 | 108 | 1,258 | 1 | ||||||||||||||||||||||||
Total | $ | 150,338 | $ | 71,100 | $ | 59,052 | $ | 130,152 | $ | 20,173 | |||||||||||||||||||
($ in thousands) | Unpaid | Recorded | Recorded | Total | Related | ||||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | |||||||||||||||||||||||||
Balance | With No | With | Investment | ||||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 57,805 | $ | 34,399 | $ | 15,646 | $ | 50,045 | $ | 1,581 | |||||||||||||||||||
Construction | 6,888 | 6,888 | — | 6,888 | — | ||||||||||||||||||||||||
Land | 13,291 | 2,838 | 5,622 | 8,460 | 1,906 | ||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 42,396 | 10,552 | 25,717 | 36,269 | 15,174 | ||||||||||||||||||||||||
Trade finance | 280 | — | 274 | 274 | 28 | ||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 17,838 | 5,137 | 11,398 | 16,535 | 461 | ||||||||||||||||||||||||
Multifamily | 37,624 | 21,500 | 12,890 | 34,390 | 313 | ||||||||||||||||||||||||
Consumer | 1,259 | 1,151 | 108 | 1,259 | 1 | ||||||||||||||||||||||||
Total | $ | 177,381 | $ | 82,465 | $ | 71,655 | $ | 154,120 | $ | 19,464 | |||||||||||||||||||
Schedule of average recorded investment and amount of interest income on non-PCI impaired loans | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
($ in thousands) | Average | Recognized | Average | Recognized | |||||||||||||||||||||||||
Recorded | Interest | Recorded | Interest | ||||||||||||||||||||||||||
Investment | Income (1) | Investment | Income (1) | ||||||||||||||||||||||||||
CRE: | |||||||||||||||||||||||||||||
Income producing | $ | 44,195 | $ | 141 | $ | 67,153 | $ | 325 | |||||||||||||||||||||
Construction | 3,902 | — | 6,888 | — | |||||||||||||||||||||||||
Land | 3,438 | 10 | 12,227 | 121 | |||||||||||||||||||||||||
C&I: | |||||||||||||||||||||||||||||
Commercial business | 39,310 | 202 | 43,726 | 207 | |||||||||||||||||||||||||
Trade finance | 245 | 3 | 637 | 4 | |||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Single-family | 15,423 | 68 | 17,100 | 50 | |||||||||||||||||||||||||
Multifamily | 26,987 | 203 | 36,369 | 205 | |||||||||||||||||||||||||
Consumer | 1,258 | 12 | 2,835 | 1 | |||||||||||||||||||||||||
Total impaired non-PCI loans | $ | 134,758 | $ | 639 | $ | 186,935 | $ | 913 | |||||||||||||||||||||
-1 | Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are generally reflected as a reduction of principal and not as interest income. | ||||||||||||||||||||||||||||
Summary of the activity in the allowance for loan losses | |||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||
($ in thousands) | CRE | C&I | Residential | Consumer | Unallocated | Total | PCI Loans | Total | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||
Beginning balance | $ | 72,263 | $ | 134,598 | $ | 43,856 | $ | 10,248 | $ | — | $ | 260,965 | $ | 714 | $ | 261,679 | |||||||||||||
(Reversal of) provision for loans losses | -2,333 | 5,378 | -1,571 | 664 | 2,920 | 5,058 | -71 | 4,987 | |||||||||||||||||||||
Provision allocation for unfunded loan commitments and letters of credit | — | — | — | — | -2,920 | -2,920 | — | -2,920 | |||||||||||||||||||||
Charge-offs | -1,002 | -6,589 | -746 | -463 | — | -8,800 | — | -8,800 | |||||||||||||||||||||
Recoveries | 812 | 527 | 1,451 | 2 | — | 2,792 | — | 2,792 | |||||||||||||||||||||
Net (charge-offs)/recoveries | -190 | -6,062 | 705 | -461 | — | -6,008 | — | -6,008 | |||||||||||||||||||||
Ending balance | $ | 69,740 | $ | 133,914 | $ | 42,990 | $ | 10,451 | $ | — | $ | 257,095 | $ | 643 | $ | 257,738 | |||||||||||||
Ending balance allocated to: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,574 | $ | 17,906 | $ | 692 | $ | 1 | $ | — | $ | 20,173 | $ | — | $ | 20,173 | |||||||||||||
Collectively evaluated for impairment | 68,166 | 116,008 | 42,298 | 10,450 | — | 236,922 | — | 236,922 | |||||||||||||||||||||
Acquired with deteriorated credit quality | — | — | — | — | — | — | 643 | 643 | |||||||||||||||||||||
Ending balance | $ | 69,740 | $ | 133,914 | $ | 42,990 | $ | 10,451 | $ | — | $ | 257,095 | $ | 643 | $ | 257,738 | |||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||
($ in thousands) | CRE | C&I | Residential | Consumer | Unallocated | Total | PCI Loans | Total | |||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||
Beginning balance | $ | 70,154 | $ | 115,184 | $ | 50,716 | $ | 11,352 | $ | — | $ | 247,406 | $ | 2,269 | $ | 249,675 | |||||||||||||
(Reversal of) provision for loans losses | -7,036 | 16,592 | -2,575 | -196 | 215 | 7,000 | -67 | 6,933 | |||||||||||||||||||||
Provision allocation for unfunded loan commitments and letters of credit | — | — | — | — | -215 | -215 | — | -215 | |||||||||||||||||||||
Charge-offs | -319 | -5,531 | -283 | -3 | — | -6,136 | — | -6,136 | |||||||||||||||||||||
Recoveries | 828 | 911 | 137 | 3 | — | 1,879 | — | 1,879 | |||||||||||||||||||||
Net recoveries/(charge-offs) | 509 | -4,620 | -146 | — | — | -4,257 | — | -4,257 | |||||||||||||||||||||
Ending balance | $ | 63,627 | $ | 127,156 | $ | 47,995 | $ | 11,156 | $ | — | $ | 249,934 | $ | 2,202 | $ | 252,136 | |||||||||||||
Ending balance allocated to: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 8,375 | $ | 16,490 | $ | 1,853 | $ | — | $ | — | $ | 26,718 | $ | — | $ | 26,718 | |||||||||||||
Collectively evaluated for impairment | 55,252 | 110,666 | 46,142 | 11,156 | — | 223,216 | — | 223,216 | |||||||||||||||||||||
Acquired with deteriorated credit quality | — | — | — | — | — | — | 2,202 | 2,202 | |||||||||||||||||||||
Ending balance | $ | 63,627 | $ | 127,156 | $ | 47,995 | $ | 11,156 | $ | — | $ | 249,934 | $ | 2,202 | $ | 252,136 | |||||||||||||
Recorded investment in total loans receivable by portfolio segment, disaggregated by impairment methodology | |||||||||||||||||||||||||||||
($ in thousands) | CRE | C&I | Residential | Consumer | Total | ||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 47,472 | $ | 39,217 | $ | 42,205 | $ | 1,258 | $ | 130,152 | |||||||||||||||||||
Collectively evaluated for impairment | 6,323,569 | 7,604,022 | 4,496,929 | 1,582,910 | 20,007,430 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality (1) | 674,380 | 77,525 | 458,085 | 27,996 | 1,237,986 | ||||||||||||||||||||||||
Ending Balance | $ | 7,045,421 | $ | 7,720,764 | $ | 4,997,219 | $ | 1,612,164 | $ | 21,375,568 | |||||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
($ in thousands) | CRE | C&I | Residential | Consumer | Total | ||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 65,393 | $ | 36,543 | $ | 50,925 | $ | 1,259 | $ | 154,120 | |||||||||||||||||||
Collectively evaluated for impairment | 6,036,823 | 7,951,038 | 4,780,354 | 1,482,697 | 20,250,912 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality (1) | 717,297 | 89,620 | 485,410 | 29,786 | 1,322,113 | ||||||||||||||||||||||||
Ending Balance | $ | 6,819,513 | $ | 8,077,201 | $ | 5,316,689 | $ | 1,513,742 | $ | 21,727,145 | |||||||||||||||||||
-1 | Loans net of ASC 310-30 discount. | ||||||||||||||||||||||||||||
Summary of changes in the accretable yield for the PCI loans | Three Months Ended | ||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
($ in thousands) | 2015 | 2014 | |||||||||||||||||||||||||||
Beginning balance | $ | 311,688 | $ | 461,545 | |||||||||||||||||||||||||
Additions | — | 6,745 | |||||||||||||||||||||||||||
Accretion | -30,569 | (61,946 | ) | ||||||||||||||||||||||||||
Changes in expected cash flows | 12,036 | 24,112 | |||||||||||||||||||||||||||
Ending balance | $ | 293,155 | $ | 430,456 | |||||||||||||||||||||||||
Summary of the FDIC indemnification asset/net payable to the FDIC | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
($ in thousands) | 2015 | 2014 | |||||||||||||||||||||||||||
Beginning balance | $ | -96,106 | $ | 74,708 | |||||||||||||||||||||||||
Amortization | -1,542 | (28,490 | ) | ||||||||||||||||||||||||||
Reductions (1) | -649 | (11,842 | ) | ||||||||||||||||||||||||||
Estimate of FDIC repayment (2) | -3,114 | (6,824 | ) | ||||||||||||||||||||||||||
Ending balance | $ | -101,411 | $ | 27,552 | |||||||||||||||||||||||||
-1 | Reductions relate to charge-offs, partial prepayments, loan payoffs and loan sales which result in a corresponding reduction of the indemnification asset. | ||||||||||||||||||||||||||||
-2 | This represents the change in the calculated estimate the Company will be required to pay the FDIC at the end of the FDIC shared-loss agreements, due to lower thresholds of losses. | ||||||||||||||||||||||||||||
INVESTMENTS_IN_QUALIFIED_AFFOR1
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, NET, TAX CREDIT AND OTHER INVESTMENTS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, NET, TAX CREDIT AND OTHER INVESTMENTS | ||||||||
Summary of the impact of new accounting guidance | ||||||||
December 31, 2014 | ||||||||
($ in thousands) | As Previously | As Revised | ||||||
Reported | ||||||||
Consolidated Balance Sheet: | ||||||||
Investment in qualified affordable housing partnerships, net | $ | 178,652 | $ | 178,962 | ||||
Other assets — Deferred tax assets | $ | 384,367 | $ | 389,601 | ||||
Retained earnings | $ | 1,598,598 | $ | 1,604,141 | ||||
Three Months Ended | ||||||||
March 31, 2014 | ||||||||
($ in thousands) | As Previously | As Revised | ||||||
Reported | ||||||||
Consolidated Statement of Income: | ||||||||
Noninterest expense — Amortization of tax credit and other investments | $ | 5,964 | $ | 1,492 | ||||
Income before taxes | $ | 111,690 | $ | 116,163 | ||||
Provision for income taxes | $ | 34,949 | $ | 41,992 | ||||
Net income | $ | 76,741 | $ | 74,171 | ||||
Earnings per share | ||||||||
Basic | $ | 0.54 | $ | 0.52 | ||||
Diluted | $ | 0.54 | $ | 0.52 | ||||
Schedule of investments in qualified affordable housing partnerships and related unfunded commitments | ($ in thousands) | March 31, 2015 | December 31, 2014 | |||||
Investment in qualified affordable housing partnerships, net | $ | 182,719 | $ | 178,962 | ||||
Accrued expenses and other liabilities — Unfunded commitments | $ | 50,884 | $ | 43,311 | ||||
Schedule of other information related to investments in qualified affordable housing partnerships | Three Months Ended March 31, | |||||||
($ in thousands) | 2015 | 2014 | ||||||
Tax credits and other tax benefits recognized | $ | 8,775 | $ | 7,792 | ||||
Amortization expense included in provision for income taxes | $ | 6,244 | $ | 5,357 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||||
Estimated future amortization expense of premiums on acquired deposits | Estimated Amortization Expense of Premiums on Acquired Deposits | Amount | |||
($ in thousands) | |||||
Nine months ending December 31, 2015 | $ | 6,842 | |||
Year ending December 31, 2016 | 8,086 | ||||
Year ending December 31, 2017 | 6,935 | ||||
Year ending December 31, 2018 | 5,883 | ||||
Year ending December 31, 2019 | 4,864 | ||||
Thereafter | 10,307 | ||||
Total | $ | 42,917 | |||
STOCKHOLDERS_EQUITY_AND_EARNIN1
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | |||||||||||||||||||||||||
Earnings per share calculations | |||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||
($ in thousands, except per share data) | Net Income | Number of Shares | Per Share Amounts | ||||||||||||||||||||||
Net income | $ | 100,027 | |||||||||||||||||||||||
Less: | |||||||||||||||||||||||||
Earnings allocated to participating securities | (3 | ) | |||||||||||||||||||||||
Basic EPS — income allocated to common stockholders | $ | 100,024 | 143,655 | $ | 0.7 | ||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Stock options | — | 6 | |||||||||||||||||||||||
Restricted stock units | 106 | 533 | |||||||||||||||||||||||
Warrants | — | 155 | |||||||||||||||||||||||
Diluted EPS — income allocated to common stockholders | $ | 100,130 | 144,349 | $ | 0.69 | ||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||
($ in thousands, except per share data) | Net Income | Number of Shares | Per Share Amounts | ||||||||||||||||||||||
Net income (1) | $ | 74,171 | |||||||||||||||||||||||
Less: | |||||||||||||||||||||||||
Earnings allocated to participating securities | (160 | ) | |||||||||||||||||||||||
Basic EPS — income allocated to common stockholders (1) | $ | 74,011 | 141,962 | $ | 0.52 | ||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Stock options | — | 79 | |||||||||||||||||||||||
Restricted stock units | 80 | 447 | |||||||||||||||||||||||
Warrants | — | 144 | |||||||||||||||||||||||
Diluted EPS — income allocated to common stockholders(1) | $ | 74,091 | 142,632 | $ | 0.52 | ||||||||||||||||||||
-1 | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. See note 10 of the Notes to Consolidated Financial Statements for additional information. | ||||||||||||||||||||||||
Shares excluded from the calculation of diluted EPS | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||||||||||
Stock options | — | 81 | |||||||||||||||||||||||
Restricted stock units | 170 | 168 | |||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) balances | Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
($ in thousands) | Available-for-Sale | Other | Accumulated | Available-for-Sale | Other | Accumulated | |||||||||||||||||||
Investment | Investments | Other | Investment | Investments | Other | ||||||||||||||||||||
Securities | Comprehensive | Securities | Comprehensive | ||||||||||||||||||||||
Income | (Loss) Income | ||||||||||||||||||||||||
Balance, beginning of the period | $ | 4,176 | $ | 61 | $ | 4,237 | $ | (30,538 | ) | $ | 79 | $ | (30,459 | ) | |||||||||||
Net unrealized gains (losses) arising during period | 11,879 | (7 | ) | 11,872 | 15,422 | (17 | ) | 15,405 | |||||||||||||||||
Less: reclassification adjustment for gains included in net income | (2,554 | ) | — | (2,554 | ) | (1,983 | ) | — | (1,983 | ) | |||||||||||||||
Net unrealized gains (losses) | 9,325 | (7 | ) | 9,318 | 13,439 | (17 | ) | 13,422 | |||||||||||||||||
Balance, end of the period | $ | 13,501 | $ | 54 | $ | 13,555 | $ | (17,099 | ) | $ | 62 | $ | (17,037 | ) | |||||||||||
Schedule of components of other comprehensive income (loss), reclassifications to net income by income statement line item and the related tax effects | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
($ in thousands) | Before-Tax | Tax | Net-of-Tax | Before-Tax | Tax | Net-of-Tax | |||||||||||||||||||
Amount | Expense | Amount | Amount | Expense | Amount | ||||||||||||||||||||
or Benefit | or Benefit | ||||||||||||||||||||||||
Unrealized gains on available-for-sale investment securities : | |||||||||||||||||||||||||
Net unrealized gains arising during period | $ | 20,482 | $ | (8,603 | ) | $ | 11,879 | $ | 26,590 | $ | (11,168 | ) | $ | 15,422 | |||||||||||
Less: reclassification adjustment for gains included in net income (1) | (4,404 | ) | 1,850 | (2,554 | ) | (3,418 | ) | 1,435 | (1,983 | ) | |||||||||||||||
Net unrealized gains | 16,078 | (6,753 | ) | 9,325 | 23,172 | (9,733 | ) | 13,439 | |||||||||||||||||
Unrealized losses on other investments: | |||||||||||||||||||||||||
Net unrealized losses arising during period | (12 | ) | 5 | (7 | ) | (29 | ) | 12 | (17 | ) | |||||||||||||||
Less: reclassification adjustment for (gains) losses included in income | — | — | — | — | — | — | |||||||||||||||||||
Net unrealized losses | (12 | ) | 5 | (7 | ) | (29 | ) | 12 | (17 | ) | |||||||||||||||
Other comprehensive income | $ | 16,066 | $ | (6,748 | ) | $ | 9,318 | $ | 23,143 | $ | (9,721 | ) | $ | 13,422 | |||||||||||
-1 | The pretax amount is reported in net gains on sales of available-for-sale investment securities in the consolidated statements of income. | ||||||||||||||||||||||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||
Operating results and key financial measures for operating segments | ||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||
($ in thousands) | Retail | Commercial | Other | Total | ||||||||||
Banking | Banking | |||||||||||||
Interest income | $ | 87,446 | $ | 158,786 | $ | 17,029 | $ | 263,261 | ||||||
Charge for funds used | -23,298 | -37,351 | -9,445 | (70,094 | ) | |||||||||
Interest spread on funds used | 64,148 | 121,435 | 7,584 | 193,167 | ||||||||||
Interest expense | -12,224 | -4,263 | -11,057 | (27,544 | ) | |||||||||
Credit on funds provided | 57,668 | 8,016 | 4,410 | 70,094 | ||||||||||
Interest spread on funds provided | 45,444 | 3,753 | -6,647 | 42,550 | ||||||||||
Net interest income | $ | 109,592 | $ | 125,188 | $ | 937 | $ | 235,717 | ||||||
Provision for loan losses | $ | 731 | $ | 4,256 | $ | — | $ | 4,987 | ||||||
Depreciation, amortization and accretion (1) | $ | 1,682 | $ | -10,477 | $ | 12,922 | $ | 4,127 | ||||||
Goodwill | $ | 357,207 | $ | 112,226 | $ | — | $ | 469,433 | ||||||
Segment pre-tax profit | $ | 52,935 | $ | 93,175 | $ | 716 | $ | 146,826 | ||||||
Segment assets | $ | 7,540,501 | $ | 15,491,368 | $ | 6,874,966 | $ | 29,906,835 | ||||||
Three Months Ended March 31, 2014 | ||||||||||||||
($ in thousands) | Retail | Commercial | Other | Total | ||||||||||
Banking | Banking | |||||||||||||
Interest income | $ | 98,724 | $ | 169,076 | $ | 18,373 | $ | 286,173 | ||||||
Charge for funds used | -16,045 | -21,328 | -23,123 | (60,496 | ) | |||||||||
Interest spread on funds used | 82,679 | 147,748 | -4,750 | 225,677 | ||||||||||
Interest expense | -11,711 | -3,280 | -13,216 | (28,207 | ) | |||||||||
Credit on funds provided | 48,193 | 8,436 | 3,867 | 60,496 | ||||||||||
Interest spread on funds provided | 36,482 | 5,156 | -9,349 | 32,289 | ||||||||||
Net interest income (loss) | $ | 119,161 | $ | 152,904 | $ | -14,099 | $ | 257,966 | ||||||
Provision for loan losses | $ | 2,652 | $ | 4,281 | $ | — | $ | 6,933 | ||||||
Depreciation, amortization and accretion (1) (2) | $ | 2,571 | $ | -3,328 | $ | 9,821 | $ | 9,064 | ||||||
Goodwill | $ | 354,163 | $ | 104,304 | $ | — | $ | 458,467 | ||||||
Segment pre-tax profit (loss) (2) | $ | 52,170 | $ | 86,931 | $ | -22,938 | $ | 116,163 | ||||||
Segment assets (2) | $ | 7,877,996 | $ | 13,661,149 | $ | 5,861,459 | $ | 27,400,604 | ||||||
-1 | Includes amortization and accretion related to the FDIC indemnification asset. | |||||||||||||
-2 | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. | |||||||||||||
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
entity | entity | |
trust | ||
BASIS OF PRESENTATION | ||
Number of wholly owned subsidiaries that are statutory business trusts ("the Trusts") | 6 | |
Number of acquisitions | 0 | 1 |
BUSINESS_COMBINATION_Details
BUSINESS COMBINATION (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 17, 2014 | Dec. 31, 2014 | |
entity | entity | |||
Business combination | ||||
Number of business combinations | 0 | 1 | ||
Purchase consideration | ||||
Consideration transferred in the acquisition (in shares) | 5,583,093 | |||
Issuance of 5,583,093 shares pursuant to MetroCorp acquisition | $190,830,000 | |||
Assets acquired and liabilities assumed | ||||
Goodwill recorded as a result of the business combination | 469,433,000 | 458,467,000 | 469,433,000 | |
MetroCorp | ||||
Purchase consideration | ||||
Percentage of purchase consideration satisfied in stock | 66.67% | |||
Percentage of purchase consideration satisfied in cash | 33.33% | |||
Fair value of the consideration transferred | 291,400,000 | |||
Consideration transferred in the acquisition (in shares) | 5,583,093 | |||
Issuance of 5,583,093 shares pursuant to MetroCorp acquisition | 190,800,000 | |||
Consideration transferred in cash | 89,400,000 | |||
Additional cash given to acquiree's stock option holders as part of consideration transferred | 2,400,000 | |||
Fair value of warrants assumed as part of consideration transferred | 8,800,000 | |||
Assets acquired and liabilities assumed | ||||
Fair value of assets acquired | 1,700,000,000 | |||
Fair value of liabilities acquired | 1,410,000,000 | |||
Goodwill recorded as a result of the business combination | 121,000,000 | 132,000,000 | ||
MetroCorp | Adjustments | ||||
Assets acquired and liabilities assumed | ||||
Deferred tax assets | -10,300,000 | |||
Bank owned life insurance | ($700,000) |
FAIR_VALUE_MEASUREMENT_AND_FAI2
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | $2,841,085 | $2,626,365 | ||
U.S. Treasury securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 1,172,226 | 873,435 | ||
U.S. government agency and U.S. government sponsored enterprise debt securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 411,966 | 311,024 | ||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 95,235 | 141,420 | ||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 727,356 | 791,088 | ||
Municipal securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 191,246 | 250,448 | ||
Other residential mortgage-backed securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 51,501 | [1] | 53,918 | [1] |
Other commercial mortgage-backed securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 34,053 | [1] | ||
Corporate debt securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 140,401 | [1] | 115,182 | [1] |
Corporate debt securities | Non-investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 9,501 | [1] | 14,681 | [1] |
Other securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 41,653 | 41,116 | ||
Fair Value, Measurements, Recurring | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 2,841,085 | 2,626,365 | ||
Fair Value, Measurements, Recurring | Foreign exchange options | ||||
Derivative | ||||
Derivative assets | 3,683 | 6,136 | ||
Fair Value, Measurements, Recurring | Interest rate swaps on certificates of deposits | ||||
Derivative | ||||
Derivative liabilities | -6,370 | -9,922 | ||
Fair Value, Measurements, Recurring | Interest rate swaps and caps | ||||
Derivative | ||||
Derivative assets | 66,060 | 41,534 | ||
Derivative liabilities | -66,914 | -41,779 | ||
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||||
Derivative | ||||
Derivative assets | 13,340 | 8,123 | ||
Derivative liabilities | -13,080 | -9,171 | ||
Fair Value, Measurements, Recurring | Embedded derivative liabilities | ||||
Derivative | ||||
Derivative liabilities | -3,412 | -3,392 | ||
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 1,172,226 | 873,435 | ||
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government sponsored enterprise debt securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 411,966 | 311,024 | ||
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 95,235 | 141,420 | ||
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 727,356 | 791,088 | ||
Fair Value, Measurements, Recurring | Municipal securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 191,246 | 250,448 | ||
Fair Value, Measurements, Recurring | Other residential mortgage-backed securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 51,501 | 53,918 | ||
Fair Value, Measurements, Recurring | Other commercial mortgage-backed securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 34,053 | |||
Fair Value, Measurements, Recurring | Corporate debt securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 140,401 | 115,182 | ||
Fair Value, Measurements, Recurring | Corporate debt securities | Non-investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 9,501 | 14,681 | ||
Fair Value, Measurements, Recurring | Other securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 41,653 | 41,116 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 1,204,703 | 905,540 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 1,172,226 | 873,435 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 32,477 | 32,105 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 1,636,382 | 1,714,297 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange options | ||||
Derivative | ||||
Derivative assets | 3,683 | 6,136 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps on certificates of deposits | ||||
Derivative | ||||
Derivative liabilities | -6,370 | -9,922 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps and caps | ||||
Derivative | ||||
Derivative assets | 66,060 | 41,534 | ||
Derivative liabilities | -66,914 | -41,779 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||||
Derivative | ||||
Derivative assets | 13,340 | 8,123 | ||
Derivative liabilities | -13,080 | -9,171 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government sponsored enterprise debt securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 411,966 | 311,024 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 95,235 | 141,420 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 727,356 | 791,088 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 191,246 | 250,448 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other residential mortgage-backed securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 51,501 | 53,918 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other commercial mortgage-backed securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 34,053 | |||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 140,401 | 115,182 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Non-investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 9,501 | 8,153 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other securities | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 9,176 | 9,011 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | 6,528 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Embedded derivative liabilities | ||||
Derivative | ||||
Derivative liabilities | -3,412 | -3,392 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Non-investment grade | ||||
Available-for-sale investment securities | ||||
Total available-for-sale investment securities | $6,528 | |||
[1] | Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody's are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody's are considered non-investment grade. |
FAIR_VALUE_MEASUREMENT_AND_FAI3
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) (Fair Value, Measurements, Recurring, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Embedded derivative liabilities | ||||
Reconciliation of the beginning and ending balances for major liability categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||||
Beginning balance | ($3,392) | ($3,655) | ||
Total gains or (losses) for the period: | ||||
Included in earnings | -20 | [1] | 257 | [1] |
Ending balance | -3,412 | -3,398 | ||
Changes in unrealized losses included in earnings relating to assets and liabilities held at period-end | 20 | -257 | ||
Corporate debt securities | Non-investment grade | ||||
Reconciliation of the beginning and ending balances for major asset categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||||
Beginning balance | 6,528 | 6,371 | ||
Total gains or (losses) for the period: | ||||
Included in earnings | 960 | [1] | ||
Included in other comprehensive income (unrealized) | 922 | [2] | 434 | [2] |
Purchases, issues, sales, settlements: | ||||
Sales | -7,219 | |||
Settlements | -98 | -88 | ||
Transfers in and/or out of Level 3 | -1,093 | |||
Ending balance | $6,717 | |||
[1] | Realized gains or losses of corporate debt securities and embedded derivative liabilities are included in net gains on sales of investment securities and other operating expense, respectively, in the consolidated statements of income. | |||
[2] | Unrealized gains or losses on available-for-sale investment securities are reported in other comprehensive income, net of tax, in the consolidated statements of comprehensive income. |
FAIR_VALUE_MEASUREMENT_AND_FAI4
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Quantitative information | ||||
Available-for-sale investment securities | 2,841,085 | 2,626,365 | ||
Corporate debt securities | Non-investment grade | ||||
Quantitative information | ||||
Available-for-sale investment securities | 9,501 | [1] | 14,681 | [1] |
Fair Value, Measurements, Recurring | ||||
Quantitative information | ||||
Available-for-sale investment securities | 2,841,085 | 2,626,365 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
Available-for-sale investment securities | 6,528 | |||
Fair Value, Measurements, Recurring | Embedded derivative liabilities | Discounted cash flow | Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
Derivative liabilities | -3,412 | -3,392 | ||
Fair Value, Measurements, Recurring | Embedded derivative liabilities | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Minimum | ||||
Quantitative information | ||||
Credit risk | 0.03% | 0.12% | ||
Fair Value, Measurements, Recurring | Embedded derivative liabilities | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Maximum | ||||
Quantitative information | ||||
Credit risk | 0.07% | 0.14% | ||
Fair Value, Measurements, Recurring | Embedded derivative liabilities | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Weighted Average | ||||
Quantitative information | ||||
Credit risk | 0.06% | 0.13% | ||
Fair Value, Measurements, Recurring | Corporate debt securities | Non-investment grade | ||||
Quantitative information | ||||
Available-for-sale investment securities | 9,501 | 14,681 | ||
Fair Value, Measurements, Recurring | Corporate debt securities | Non-investment grade | Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
Available-for-sale investment securities | 6,528 | |||
Fair Value, Measurements, Recurring | Corporate debt securities | Non-investment grade | Discounted cash flow | Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
Available-for-sale investment securities | 6,528 | |||
Fair Value, Measurements, Recurring | Corporate debt securities | Non-investment grade | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Minimum | ||||
Quantitative information | ||||
Constant prepayment rate | 0.00% | |||
Constant default rate | 0.75% | |||
Discount margin | 4.50% | |||
Fair Value, Measurements, Recurring | Corporate debt securities | Non-investment grade | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Maximum | ||||
Quantitative information | ||||
Constant prepayment rate | 1.00% | |||
Constant default rate | 1.20% | |||
Discount margin | 7.50% | |||
Fair Value, Measurements, Recurring | Corporate debt securities | Non-investment grade | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Weighted Average | ||||
Quantitative information | ||||
Constant prepayment rate | 0.73% | |||
Constant default rate | 0.87% | |||
Loss severity | 85.00% | |||
Discount margin | 6.94% | |||
[1] | Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody's are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody's are considered non-investment grade. |
FAIR_VALUE_MEASUREMENT_AND_FAI5
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) (Fair Value, Measurements, Nonrecurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | $1,676 | $17,521 |
Loans Receivable | Non-PCI loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 39,417 | 67,811 |
Loans Receivable | Non-PCI loans | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 13,648 | 26,089 |
Loans Receivable | Non-PCI loans | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 11,356 | 16,581 |
Loans Receivable | Non-PCI loans | Residential | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 14,306 | 25,034 |
Loans Receivable | Non-PCI loans | Consumer | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 107 | 107 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 1,676 | 17,521 |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 39,417 | 67,811 |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI loans | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 13,648 | 26,089 |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI loans | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 11,356 | 16,581 |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI loans | Residential | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 14,306 | 25,034 |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI loans | Consumer | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | $107 | $107 |
FAIR_VALUE_MEASUREMENT_AND_FAI6
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 5) (Fair Value, Measurements, Nonrecurring, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Increase (decrease) in value of assets | ($277) | ($526) |
Loans Receivable | Non-PCI loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Increase (decrease) in value of assets | -1,868 | -7,359 |
Loans Receivable | Non-PCI loans | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Increase (decrease) in value of assets | 841 | -464 |
Loans Receivable | Non-PCI loans | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Increase (decrease) in value of assets | -2,470 | -6,530 |
Loans Receivable | Non-PCI loans | Residential | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Increase (decrease) in value of assets | ($239) | ($365) |
FAIR_VALUE_MEASUREMENT_AND_FAI7
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 6) (Fair Value, Measurements, Nonrecurring, USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Quantitative information | ||||
OREO | 1,676 | 17,521 | ||
Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
OREO | 1,676 | 17,521 | ||
OREO | Appraisal | Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
OREO | 1,676 | 17,521 | ||
OREO | Appraisal | Significant Unobservable Inputs (Level 3) | Weighted Average | ||||
Quantitative information | ||||
Selling cost (as a percent) | 8.00% | 8.00% | ||
Loans Receivable | Non-PCI loans | ||||
Quantitative information | ||||
Impaired loans | 39,417 | 67,811 | ||
Loans Receivable | Non-PCI loans | Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
Impaired loans | 39,417 | 67,811 | ||
Loans Receivable | Non-PCI loans | Discounted cash flow | Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
Impaired loans | 3,578 | 11,499 | ||
Loans Receivable | Non-PCI loans | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Minimum | ||||
Quantitative information | ||||
Discount rate (as a percent) | 0.00% | 0.00% | ||
Loans Receivable | Non-PCI loans | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Maximum | ||||
Quantitative information | ||||
Discount rate (as a percent) | 86.00% | 81.00% | ||
Loans Receivable | Non-PCI loans | Discounted cash flow | Significant Unobservable Inputs (Level 3) | Weighted Average | ||||
Quantitative information | ||||
Discount rate (as a percent) | 58.00% | 49.00% | ||
Loans Receivable | Non-PCI loans | Market comparables | Significant Unobservable Inputs (Level 3) | ||||
Quantitative information | ||||
Impaired loans | 35,839 | 56,312 | ||
Loans Receivable | Non-PCI loans | Market comparables | Significant Unobservable Inputs (Level 3) | Minimum | ||||
Quantitative information | ||||
Discount rate (as a percent) | 0.00% | [1] | 0.00% | [1] |
Loans Receivable | Non-PCI loans | Market comparables | Significant Unobservable Inputs (Level 3) | Maximum | ||||
Quantitative information | ||||
Discount rate (as a percent) | 100.00% | [1] | 100.00% | [1] |
Loans Receivable | Non-PCI loans | Market comparables | Significant Unobservable Inputs (Level 3) | Weighted Average | ||||
Quantitative information | ||||
Discount rate (as a percent) | 7.00% | [1] | 4.00% | [1] |
[1] | Discount rate is adjusted for factors such as liquidation cost of collateral and selling cost. |
FAIR_VALUE_MEASUREMENT_AND_FAI8
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 7) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | $1,886,199 | $1,039,885 | $1,884,855 | $895,820 | ||
Short-term investments | 325,350 | 338,714 | ||||
Securities purchased under resale agreements | 1,550,000 | 1,225,000 | ||||
Loans held for sale | 196,111 | 45,950 | ||||
Loans receivable, net | 21,116,931 | [1] | 21,468,270 | [1] | ||
Investment in Federal Home Loan Bank stock | 28,603 | 31,239 | ||||
Investment in Federal Reserve Bank stock | 54,556 | 54,451 | ||||
Financial Liabilities: | ||||||
Federal Home Loan Bank advances | 317,777 | 317,241 | ||||
Securities sold under repurchase agreements | 695,000 | 795,000 | ||||
Long-term debt | 220,905 | 225,848 | ||||
Carrying Amount | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 1,886,199 | 1,039,885 | ||||
Short-term investments | 325,350 | 338,714 | ||||
Securities purchased under resale agreements | 1,550,000 | 1,225,000 | ||||
Loans held for sale | 196,111 | 45,950 | ||||
Loans receivable, net | 21,116,931 | 21,468,270 | ||||
Investment in Federal Home Loan Bank stock | 28,603 | 31,239 | ||||
Investment in Federal Reserve Bank stock | 54,556 | 54,451 | ||||
Accrued interest receivable | 86,186 | 88,303 | ||||
Financial Liabilities: | ||||||
Demand, savings and money market deposits | 18,786,462 | 17,896,035 | ||||
Time deposits | 6,376,371 | 6,112,739 | ||||
Federal Home Loan Bank advances | 317,777 | 317,241 | ||||
Securities sold under repurchase agreements | 695,000 | 795,000 | ||||
Accrued interest payable | 12,141 | 11,303 | ||||
Long-term debt | 220,905 | 225,848 | ||||
Fair Value Measurements | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 1,886,199 | 1,039,885 | ||||
Short-term investments | 325,350 | 338,714 | ||||
Securities purchased under resale agreements | 1,597,101 | 1,191,060 | ||||
Loans held for sale | 196,111 | 45,950 | ||||
Loans receivable, net | 20,905,743 | 20,997,379 | ||||
Investment in Federal Home Loan Bank stock | 28,603 | 31,239 | ||||
Investment in Federal Reserve Bank stock | 54,556 | 54,451 | ||||
Accrued interest receivable | 86,186 | 88,303 | ||||
Financial Liabilities: | ||||||
Demand, savings and money market deposits | 18,786,462 | 17,896,035 | ||||
Time deposits | 6,358,260 | 6,095,217 | ||||
Federal Home Loan Bank advances | 334,286 | 336,302 | ||||
Securities sold under repurchase agreements | 751,270 | 870,434 | ||||
Accrued interest payable | 12,141 | 11,303 | ||||
Long-term debt | 207,906 | 205,777 | ||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 1,886,199 | 1,039,885 | ||||
Fair Value Measurements | Significant Other Observable Inputs (Level 2) | ||||||
Financial Assets: | ||||||
Short-term investments | 325,350 | 338,714 | ||||
Securities purchased under resale agreements | 1,597,101 | 1,191,060 | ||||
Loans held for sale | 196,111 | 45,950 | ||||
Investment in Federal Home Loan Bank stock | 28,603 | 31,239 | ||||
Investment in Federal Reserve Bank stock | 54,556 | 54,451 | ||||
Accrued interest receivable | 86,186 | 88,303 | ||||
Financial Liabilities: | ||||||
Demand, savings and money market deposits | 18,786,462 | 17,896,035 | ||||
Federal Home Loan Bank advances | 334,286 | 336,302 | ||||
Securities sold under repurchase agreements | 751,270 | 870,434 | ||||
Accrued interest payable | 12,141 | 11,303 | ||||
Long-term debt | 207,906 | 205,777 | ||||
Fair Value Measurements | Significant Unobservable Inputs (Level 3) | ||||||
Financial Assets: | ||||||
Loans receivable, net | 20,905,743 | 20,997,379 | ||||
Financial Liabilities: | ||||||
Time deposits | $6,358,260 | $6,095,217 | ||||
[1] | Loans net of ASC 310-30 discount. |
FAIR_VALUE_MEASUREMENT_AND_FAI9
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 8) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2010 | |
Valuation Methodologies | ||
Maximum Term of Maturity for Securities Purchased under Resale Agreements to be Included in Cash and Cash Equivalents | 90 days | |
Term of Maturity that Securities Purchased under Resale Agreements Must Exceed to be Included in Certain Fair Value Calculations | 90 days | |
Foreign exchange options | ||
Valuation Methodologies | ||
Term of contracts | 5 years | |
Embedded derivative liabilities | ||
Valuation Methodologies | ||
Term of contracts | 5 years |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of Stock-Based Compensation Plans | ||
Total compensation expense, before taxes | $4,000,000 | $3,200,000 |
Net tax benefit recognized in equity for stock compensation plans | 3,145,000 | 3,708,000 |
Stock options | ||
Summary of Stock-Based Compensation Plans | ||
Cash proceeds from stock option exercises | 838,000 | 283,000 |
Net tax benefit recognized in equity for stock compensation plans | $291,000 | $82,000 |
1998 Stock Incentive Plan | ||
Summary of Stock-Based Compensation Plans | ||
Incentive shares available to be issued | 3,050,063 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (Stock options, USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock options | ||
Stock Options | ||
Vesting period | 4 years | |
Contractual term of stock option grants | 7 years | |
Shares | ||
Outstanding at beginning of period (in shares) | 42,116 | |
Exercised (in shares) | -39,751 | |
Outstanding at end of period (in shares) | 2,365 | |
Vested or expected to vest at end of period (in shares) | 2,365 | |
Exercisable at end of period (in shares) | 2,365 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $20.75 | |
Exercised (in dollars per share) | $21.09 | |
Outstanding at end of period (in dollars per share) | $14.95 | |
Vested or expected to vest at end of period (in dollars per share) | $14.95 | |
Exercisable at end of period (in dollars per share) | $14.95 | |
Share based compensation plan, additional disclosures | ||
Outstanding at end of period, Weighted Average Remaining Contractual Term | 9 months 7 days | |
Vested or expected to vest at end of period, Weighted Average Remaining Contractual Term | 9 months 7 days | |
Exercisable at end of period, Weighted Average Remaining Contractual Term | 9 months 7 days | |
Outstanding at end of period, Aggregate Intrinsic Value | $60 | |
Vested or expected to vest at end of period, Aggregate Intrinsic Value | 60 | |
Exercisable at end of period, Aggregate Intrinsic Value | 60 | |
Intrinsic value of options exercised (in dollars) | $693 | $194 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 3) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restricted Stock Awards | Outside Director | ||
Shares | ||
Granted (in shares) | 0 | 0 |
Restricted Stock Awards | Minimum | ||
Summary of Stock-Based Compensation Plans | ||
Vesting period | 3 years | |
Restricted Stock Awards | Maximum | ||
Summary of Stock-Based Compensation Plans | ||
Vesting period | 5 years | |
Time-based restricted stock awards | ||
Shares | ||
Outstanding at beginning of period (in shares) | 751,020 | |
Granted (in shares) | 411,802 | |
Vested (in shares) | -207,495 | |
Forfeited (in shares) | -13,119 | |
Outstanding at end of period (in shares) | 942,208 | |
Weighted Average Price | ||
Outstanding at beginning of period (in dollars per share) | 30.61 | |
Granted (in dollars per share) | 38.85 | 36.83 |
Vested (in dollars per share) | 23.27 | |
Forfeited (in dollars per share) | 34.05 | |
Outstanding at end of period (in dollars per share) | 35.78 | |
Additional disclosures | ||
Total fair value of restricted stock awards vested | 8.4 | 14.6 |
Total unrecognized stock compensation expense | 29.3 | |
Weighted average period to recognize unrecognized compensation cost | 2 years 4 months 28 days | |
Performance-based restricted stock awards | ||
Shares | ||
Outstanding at beginning of period (in shares) | 518,553 | |
Granted (in shares) | 149,284 | |
Vested (in shares) | -144,445 | |
Outstanding at end of period (in shares) | 523,392 | |
Weighted Average Price | ||
Outstanding at beginning of period (in dollars per share) | 29.64 | |
Granted (in dollars per share) | 39.95 | 36.85 |
Vested (in dollars per share) | 22.05 | |
Outstanding at end of period (in dollars per share) | 35.64 | |
Additional disclosures | ||
Total fair value of restricted stock awards vested | 5.8 | 2.7 |
Total unrecognized stock compensation expense | 12.3 | |
Weighted average period to recognize unrecognized compensation cost | 2 years 3 months 15 days |
SECURITIES_PURCHASED_UNDER_RES1
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Resale agreements | ||
Gross resale agreements | $1,850,000 | $1,425,000 |
Weighted average interest rates (as a percent) | 1.42% | 1.55% |
SECURITIES_PURCHASED_UNDER_RES2
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS | ||
Gross repurchase agreements | $995,000 | $995,000 |
Weighted average interest rates (as a percent) | 3.70% | 3.70% |
SECURITIES_PURCHASED_UNDER_RES3
SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Assets, Resale Agreements | ||||
Gross Amounts of Recognized Assets | $1,850,000 | $1,425,000 | ||
Gross Amounts Offset on the Consolidated Balance Sheet | -300,000 | -200,000 | ||
Net Amounts of Assets Presented | 1,550,000 | 1,225,000 | ||
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||||
Financial Instruments | -350,000 | [1] | -425,000 | [1] |
Collateral Received | -1,195,203 | [2] | -797,172 | [2] |
Net Amount | 4,797 | 2,828 | ||
Liabilities, Repurchase Agreements | ||||
Gross Amounts of Recognized Liabilities | 995,000 | 995,000 | ||
Gross Amounts Offset on the Consolidated Balance Sheet | -300,000 | -200,000 | ||
Net Amounts of Liabilities Presented | 695,000 | 795,000 | ||
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||||
Financial Instruments | -350,000 | [1] | -425,000 | [1] |
Collateral Posted | ($345,000) | [3] | ($370,000) | [3] |
[1] | Includes financial instruments subject to enforceable master netting arrangements that are not permitted to be offset under ASC 210-20-45 but would be eligible for offsetting to the extent an event of default has occurred. | |||
[2] | Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. | |||
[3] | Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability owed to each counterparty. |
AVAILABLEFORSALE_INVESTMENT_SE2
AVAILABLE-FOR-SALE INVESTMENT SECURITIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | $2,817,847 | $2,619,205 | ||
Gross Unrealized Gains | 29,791 | 21,128 | ||
Gross Unrealized Losses | -6,553 | -13,968 | ||
Fair Value | 2,841,085 | 2,626,365 | ||
U.S. Treasury securities | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 1,162,801 | 873,101 | ||
Gross Unrealized Gains | 9,586 | 1,971 | ||
Gross Unrealized Losses | -161 | -1,637 | ||
Fair Value | 1,172,226 | 873,435 | ||
U.S. government agency and U.S. government sponsored enterprise debt securities | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 411,275 | 311,927 | ||
Gross Unrealized Gains | 1,143 | 490 | ||
Gross Unrealized Losses | -452 | -1,393 | ||
Fair Value | 411,966 | 311,024 | ||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 94,330 | 140,957 | ||
Gross Unrealized Gains | 1,242 | 1,056 | ||
Gross Unrealized Losses | -337 | -593 | ||
Fair Value | 95,235 | 141,420 | ||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 717,693 | 785,412 | ||
Gross Unrealized Gains | 11,274 | 9,754 | ||
Gross Unrealized Losses | -1,611 | -4,078 | ||
Fair Value | 727,356 | 791,088 | ||
Municipal securities | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 187,244 | 245,408 | ||
Gross Unrealized Gains | 4,800 | 6,202 | ||
Gross Unrealized Losses | -798 | -1,162 | ||
Fair Value | 191,246 | 250,448 | ||
Other residential mortgage-backed securities | Investment grade | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 50,297 | [1] | 52,694 | [1] |
Gross Unrealized Gains | 1,310 | [1] | 1,359 | [1] |
Gross Unrealized Losses | -106 | [1] | -135 | [1] |
Fair Value | 51,501 | [1] | 53,918 | [1] |
Other commercial mortgage-backed securities | Investment grade | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 34,000 | [1] | ||
Gross Unrealized Gains | 53 | [1] | ||
Fair Value | 34,053 | [1] | ||
Corporate debt securities | Investment grade | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 141,140 | [1] | 116,236 | [1] |
Gross Unrealized Losses | -739 | [1] | -1,054 | [1] |
Fair Value | 140,401 | [1] | 115,182 | [1] |
Corporate debt securities | Non-investment grade | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 11,524 | [1] | 17,881 | [1] |
Gross Unrealized Losses | -2,023 | [1] | -3,200 | [1] |
Fair Value | 9,501 | [1] | 14,681 | [1] |
Other securities | ||||
Schedule of Available-for-sale Investment Securities | ||||
Amortized Cost | 41,543 | 41,589 | ||
Gross Unrealized Gains | 436 | 243 | ||
Gross Unrealized Losses | -326 | -716 | ||
Fair Value | $41,653 | $41,116 | ||
[1] | Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody's are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody's are considered non-investment grade. |
AVAILABLEFORSALE_INVESTMENT_SE3
AVAILABLE-FOR-SALE INVESTMENT SECURITIES (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Available-for-sale Investment Securities | |||
Proceeds from sales | $180,501 | $330,231 | |
Gross realized gains | 4,404 | 3,545 | |
Gross realized losses | 127 | [1] | |
Related tax expense | 1,850 | 1,436 | |
MetroCorp | |||
Schedule of Available-for-sale Investment Securities | |||
Gross realized losses | $127 | ||
[1] | The gross $127 thousand of losses resulted from the available-for-sale investment securities acquired from MetroCorp which were sold immediately after the acquisition closed. |
AVAILABLEFORSALE_INVESTMENT_SE4
AVAILABLE-FOR-SALE INVESTMENT SECURITIES (Details 3) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | |||
OTTI credit losses | $0 | $0 | |
Gross realized gains | |||
Gross realized gains | 4,404 | 3,545 | |
Corporate debt securities | Non-investment grade | |||
Gross realized gains | |||
Gross realized gains | 960 | ||
Available-for-sale investment securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | |||
Beginning balance | 112,338 | 115,511 | |
Reduction for securities sold | -5,650 | ||
Ending balance | $106,688 | $115,511 | $115,511 |
AVAILABLEFORSALE_INVESTMENT_SE5
AVAILABLE-FOR-SALE INVESTMENT SECURITIES (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position less than 12 months, Fair Value | $296,465 | $414,390 |
Continuous unrealized loss position less than 12 months, Unrealized Losses | -1,319 | -2,051 |
Continuous unrealized loss position 12 months or more, Fair Value | 315,486 | 718,223 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -5,234 | -11,917 |
Continuous unrealized loss position total, Fair Value | 611,951 | 1,132,613 |
Continuous unrealized loss position total, Unrealized Losses | -6,553 | -13,968 |
U.S. Treasury securities | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position less than 12 months, Fair Value | 61,684 | 170,260 |
Continuous unrealized loss position less than 12 months, Unrealized Losses | -37 | -266 |
Continuous unrealized loss position 12 months or more, Fair Value | 50,860 | 163,800 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -124 | -1,371 |
Continuous unrealized loss position total, Fair Value | 112,544 | 334,060 |
Continuous unrealized loss position total, Unrealized Losses | -161 | -1,637 |
U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position less than 12 months, Fair Value | 144,114 | 69,438 |
Continuous unrealized loss position less than 12 months, Unrealized Losses | -383 | -504 |
Continuous unrealized loss position 12 months or more, Fair Value | 24,927 | 124,104 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -69 | -889 |
Continuous unrealized loss position total, Fair Value | 169,041 | 193,542 |
Continuous unrealized loss position total, Unrealized Losses | -452 | -1,393 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position less than 12 months, Fair Value | 14,119 | 45,405 |
Continuous unrealized loss position less than 12 months, Unrealized Losses | -141 | -257 |
Continuous unrealized loss position 12 months or more, Fair Value | 13,541 | 16,169 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -196 | -336 |
Continuous unrealized loss position total, Fair Value | 27,660 | 61,574 |
Continuous unrealized loss position total, Unrealized Losses | -337 | -593 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position less than 12 months, Fair Value | 40,969 | 81,927 |
Continuous unrealized loss position less than 12 months, Unrealized Losses | -97 | -270 |
Continuous unrealized loss position 12 months or more, Fair Value | 103,488 | 241,047 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -1,514 | -3,808 |
Continuous unrealized loss position total, Fair Value | 144,457 | 322,974 |
Continuous unrealized loss position total, Unrealized Losses | -1,611 | -4,078 |
Percentage of the total available-for-sale investment securities portfolio | 26.00% | 30.00% |
Municipal securities | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position less than 12 months, Fair Value | 26,905 | 6,391 |
Continuous unrealized loss position less than 12 months, Unrealized Losses | -335 | -26 |
Continuous unrealized loss position 12 months or more, Fair Value | 15,783 | 61,107 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -463 | -1,136 |
Continuous unrealized loss position total, Fair Value | 42,688 | 67,498 |
Continuous unrealized loss position total, Unrealized Losses | -798 | -1,162 |
Percentage of the total available-for-sale investment securities portfolio | 7.00% | 10.00% |
Other residential mortgage-backed securities | Investment grade | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position 12 months or more, Fair Value | 6,985 | 7,217 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -106 | -135 |
Continuous unrealized loss position total, Fair Value | 6,985 | 7,217 |
Continuous unrealized loss position total, Unrealized Losses | -106 | -135 |
Corporate debt securities | Investment grade | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position less than 12 months, Fair Value | 25,084 | |
Continuous unrealized loss position less than 12 months, Unrealized Losses | -12 | |
Continuous unrealized loss position 12 months or more, Fair Value | 90,401 | 90,098 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -739 | -1,042 |
Continuous unrealized loss position total, Fair Value | 90,401 | 115,182 |
Continuous unrealized loss position total, Unrealized Losses | -739 | -1,054 |
Corporate debt securities | Non-investment grade | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position 12 months or more, Fair Value | 9,501 | 14,681 |
Continuous unrealized loss position 12 months or more, Unrealized Losses | -2,023 | -3,200 |
Continuous unrealized loss position total, Fair Value | 9,501 | 14,681 |
Continuous unrealized loss position total, Unrealized Losses | -2,023 | -3,200 |
Percentage of the total available-for-sale investment securities portfolio | 1.00% | 1.00% |
Other securities | ||
Gross unrealized losses and related fair values of individual securities in a continuous unrealized loss position | ||
Continuous unrealized loss position less than 12 months, Fair Value | 8,674 | 15,885 |
Continuous unrealized loss position less than 12 months, Unrealized Losses | -326 | -716 |
Continuous unrealized loss position total, Fair Value | 8,674 | 15,885 |
Continuous unrealized loss position total, Unrealized Losses | ($326) | ($716) |
AVAILABLEFORSALE_INVESTMENT_SE6
AVAILABLE-FOR-SALE INVESTMENT SECURITIES (Details 5) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Scheduled maturities of available-for sale investment securities, Amortized Cost | ||
Due within one year | $435,764,000 | |
Due after one year through five years | 1,275,954,000 | |
Due after five years through ten years | 311,367,000 | |
Due after ten years | 794,762,000 | |
Total available-for-sale investment securities | 2,817,847,000 | |
Scheduled maturities of available-for sale investment securities, Estimated Fair Value | ||
Due within one year | 434,493,000 | |
Due after one year through five years | 1,289,312,000 | |
Due after five years through ten years | 311,157,000 | |
Due after ten years | 806,123,000 | |
Fair Value | 2,841,085,000 | 2,626,365,000 |
Par value of securities pledged to secure public deposits | $1,880,000,000 | $1,930,000,000 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Designated as Hedging Instrument | ||||
Fair Values of Derivative Instruments | ||||
Notional Amount | $129,096 | $132,667 | ||
Derivative Liabilities | 6,370 | [1] | 9,922 | [1] |
Designated as Hedging Instrument | Interest rate swaps on certificates of deposits | ||||
Fair Values of Derivative Instruments | ||||
Notional Amount | 129,096 | 132,667 | ||
Derivative Liabilities | 6,370 | [1] | 9,922 | [1] |
Derivative instruments not designated as hedging instruments | ||||
Fair Values of Derivative Instruments | ||||
Notional Amount | 6,340,521 | 5,672,472 | ||
Derivative Assets | 83,083 | [1] | 55,793 | [1] |
Derivative Liabilities | 83,406 | [1] | 54,342 | [1] |
Derivative instruments not designated as hedging instruments | Foreign exchange options | ||||
Fair Values of Derivative Instruments | ||||
Notional Amount | 50,000 | 85,614 | ||
Derivative Assets | 3,683 | [1] | 6,136 | [1] |
Derivative instruments not designated as hedging instruments | Embedded derivative liabilities | ||||
Fair Values of Derivative Instruments | ||||
Notional Amount | 47,794 | 47,838 | ||
Derivative Liabilities | 3,412 | [1] | 3,392 | [1] |
Derivative instruments not designated as hedging instruments | Interest rate swaps and caps | ||||
Fair Values of Derivative Instruments | ||||
Notional Amount | 5,204,760 | 4,858,391 | ||
Derivative Assets | 66,060 | [1] | 41,534 | [1] |
Derivative Liabilities | 66,914 | [1] | 41,779 | [1] |
Derivative instruments not designated as hedging instruments | Foreign exchange contracts | ||||
Fair Values of Derivative Instruments | ||||
Notional Amount | 1,037,967 | 680,629 | ||
Derivative Assets | 13,340 | [1] | 8,123 | [1] |
Derivative Liabilities | $13,080 | [1] | $9,171 | [1] |
[1] | Derivative assets are included in Other Assets. Derivative liabilities are included in Accrued Expenses and Other liabilities, and Deposits. |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) (Interest rate swaps on certificates of deposits, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Derivatives | ||
Notional amount terminated | $3,600,000 | |
Interest Expense | ||
Net gains (losses) recognized in the Income Statement | ||
Gains (losses) recognized on interest rate swaps | 3,048,000 | 2,704,000 |
Net amount recognized on fair value hedges (ineffective portion) | 353,000 | -233,000 |
Reduction in interest expense recognized on interest rate swaps | 920,000 | 1,824,000 |
Interest Expense | Certificates of deposits | ||
Net gains (losses) recognized in the Income Statement | ||
Gains (losses) recognized on certificates of deposit | ($2,695,000) | ($2,937,000) |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2010 | Mar. 31, 2015 | Dec. 31, 2014 | |
Foreign exchange options | |||
Derivatives | |||
Term of contract | 5 years | ||
Interest rate swaps and caps | |||
Derivatives | |||
Notional amount of derivative assets | $2,600,000,000 | $2,450,000,000 | |
Notional amount of derivative liabilities | 2,600,000,000 | 2,400,000,000 | |
Short-term foreign exchange contracts | |||
Derivatives | |||
Notional Amount | 1,040,000,000 | 680,600,000 | |
Fair value of derivative asset | 13,300,000 | 8,100,000 | |
Fair value of derivative liability | $13,100,000 | $9,200,000 |
DERIVATIVE_FINANCIAL_INSTRUMEN5
DERIVATIVE FINANCIAL INSTRUMENTS (Details 4) (Derivative instruments not designated as hedging instruments, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) | ||
Total net gains (losses) | $772 | ($3,183) |
Foreign exchange options | Foreign exchange income | ||
Derivative Instruments, Gain (Loss) | ||
Total net gains (losses) | 199 | -119 |
Foreign exchange options with embedded derivatives | Other operating expense | ||
Derivative Instruments, Gain (Loss) | ||
Total net gains (losses) | -141 | 1 |
Interest rate swaps and caps | Other operating income | ||
Derivative Instruments, Gain (Loss) | ||
Total net gains (losses) | -594 | -936 |
Foreign exchange contracts | Foreign exchange income | ||
Derivative Instruments, Gain (Loss) | ||
Total net gains (losses) | $1,308 | ($2,129) |
DERIVATIVE_FINANCIAL_INSTRUMEN6
DERIVATIVE FINANCIAL INSTRUMENTS (Details 5) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Counterparties assets | ||||
Assets, Derivatives | ||||
Gross Amounts of Recognized Assets | $13,564,000 | $12,396,000 | ||
Gross Amounts Offset On the Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets Presented | 13,564,000 | 12,396,000 | ||
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||||
Financial Instruments | -6,002,000 | [1] | -5,725,000 | [1] |
Collateral Received | -6,480,000 | [2] | -3,463,000 | [2] |
Net Amount | 1,082,000 | 3,208,000 | ||
Cash collateral received | 6,500,000 | 3,500,000 | ||
Counterparties liabilities | ||||
Liabilities, Derivatives | ||||
Gross Amounts of Recognized Liabilities | 79,890,000 | 56,505,000 | ||
Gross Amounts Offset On the Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Liabilities Presented | 79,890,000 | 56,505,000 | ||
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||||
Financial Instruments | -6,002,000 | [1] | -5,725,000 | [1] |
Collateral Posted | -72,018,000 | [3] | -49,951,000 | [3] |
Net Amount | 1,870,000 | 829,000 | ||
Cash collateral posted | $19,000,000 | $12,800,000 | ||
[1] | Represents the netting of derivative receivable and payable balance for the same counterparty under enforceable master netting arrangements if the Company has elected to net. | |||
[2] | Represents $6.5 million and $3.5 million of cash collateral received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements as of March 31, 2015 and December 31, 2014, respectively. | |||
[3] | Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements. Includes approximately $19.0 million and $12.8 million of cash collateral posted as of March 31, 2015 and December 31, 2014, respectively. |
LOANS_RECEIVABLE_AND_ALLOWANCE2
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Allowance for loan losses | ($257,738) | ($261,679) | ||||
Loans, net | 21,116,931 | [1] | 21,468,270 | [1] | ||
Non-PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, net | 19,879,588 | 20,146,871 | ||||
PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, net | 1,237,343 | [1] | 1,321,399 | [1] | ||
Loans Receivable | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 21,375,568 | [1] | 21,727,145 | [1] | ||
Unearned fees, premiums and discounts, net | -899 | [1] | 2,804 | [1] | ||
Allowance for loan losses | -257,738 | [1] | -261,679 | [1] | -252,136 | -249,675 |
Loans Receivable | Non-PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 20,137,582 | 20,405,032 | ||||
Unearned fees, premiums and discounts, net | -899 | 2,804 | ||||
Allowance for loan losses | -257,095 | -260,965 | -249,934 | -247,406 | ||
Loans Receivable | Non-PCI loans | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 19,412,805 | 19,625,603 | ||||
Loans Receivable | Non-PCI loans | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 184,514 | 213,007 | ||||
Loans Receivable | Non-PCI loans | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 539,783 | 565,834 | ||||
Loans Receivable | Non-PCI loans | Doubtful | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 426 | 533 | ||||
Loans Receivable | Non-PCI loans | Loss | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 54 | 55 | ||||
Loans Receivable | PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,237,986 | [1] | 1,322,113 | [1] | ||
Allowance for loan losses | -643 | [1] | -714 | [1] | -2,202 | -2,269 |
Loans Receivable | PCI loans | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,036,513 | 1,089,726 | ||||
Loans Receivable | PCI loans | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 15,193 | 18,688 | ||||
Loans Receivable | PCI loans | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 186,280 | 213,699 | ||||
CRE | Loans Receivable | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 7,045,421 | [1] | 6,819,513 | [1] | ||
CRE | Loans Receivable | Income producing | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 6,455,177 | [1] | 6,256,059 | [1] | ||
CRE | Loans Receivable | Construction | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 367,460 | [1] | 332,287 | [1] | ||
CRE | Loans Receivable | Land | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 222,784 | [1] | 231,167 | [1] | ||
CRE | Loans Receivable | Non-PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 6,371,041 | 6,102,216 | ||||
Allowance for loan losses | -69,740 | -72,263 | -63,627 | -70,154 | ||
CRE | Loans Receivable | Non-PCI loans | Income producing | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 5,802,931 | 5,568,046 | ||||
CRE | Loans Receivable | Non-PCI loans | Income producing | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 5,488,698 | 5,243,640 | ||||
CRE | Loans Receivable | Non-PCI loans | Income producing | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 56,245 | 54,673 | ||||
CRE | Loans Receivable | Non-PCI loans | Income producing | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 257,988 | 269,733 | ||||
CRE | Loans Receivable | Non-PCI loans | Construction | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 358,118 | 319,843 | ||||
CRE | Loans Receivable | Non-PCI loans | Construction | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 353,799 | 310,259 | ||||
CRE | Loans Receivable | Non-PCI loans | Construction | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 703 | 11 | ||||
CRE | Loans Receivable | Non-PCI loans | Construction | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 3,616 | 9,573 | ||||
CRE | Loans Receivable | Non-PCI loans | Land | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 209,992 | 214,327 | ||||
CRE | Loans Receivable | Non-PCI loans | Land | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 187,364 | 185,220 | ||||
CRE | Loans Receivable | Non-PCI loans | Land | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 5,701 | 5,701 | ||||
CRE | Loans Receivable | Non-PCI loans | Land | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 16,927 | 23,406 | ||||
CRE | Loans Receivable | PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 674,380 | [1] | 717,297 | [1] | ||
CRE | Loans Receivable | PCI loans | Income producing | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 652,246 | [1] | 688,013 | [1] | ||
CRE | Loans Receivable | PCI loans | Income producing | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 517,827 | 534,015 | ||||
CRE | Loans Receivable | PCI loans | Income producing | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 6,164 | 9,960 | ||||
CRE | Loans Receivable | PCI loans | Income producing | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 128,255 | 144,038 | ||||
CRE | Loans Receivable | PCI loans | Construction | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 9,342 | [1] | 12,444 | [1] | ||
CRE | Loans Receivable | PCI loans | Construction | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 585 | 589 | ||||
CRE | Loans Receivable | PCI loans | Construction | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,739 | 1,744 | ||||
CRE | Loans Receivable | PCI loans | Construction | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 7,018 | 10,111 | ||||
CRE | Loans Receivable | PCI loans | Land | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 12,792 | [1] | 16,840 | [1] | ||
CRE | Loans Receivable | PCI loans | Land | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 5,080 | 7,012 | ||||
CRE | Loans Receivable | PCI loans | Land | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 5,433 | 5,391 | ||||
CRE | Loans Receivable | PCI loans | Land | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 2,279 | 4,437 | ||||
C&I | Loans Receivable | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 7,720,764 | [1] | 8,077,201 | [1] | ||
C&I | Loans Receivable | Commercial business | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 6,871,450 | [1] | 7,181,189 | [1] | ||
C&I | Loans Receivable | Trade finance | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 849,314 | [1] | 896,012 | [1] | ||
C&I | Loans Receivable | Non-PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 7,643,239 | 7,987,581 | ||||
Allowance for loan losses | -133,914 | -134,598 | -127,156 | -115,184 | ||
C&I | Loans Receivable | Non-PCI loans | Commercial business | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 6,799,149 | 7,097,853 | ||||
C&I | Loans Receivable | Non-PCI loans | Commercial business | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 6,573,081 | 6,836,914 | ||||
C&I | Loans Receivable | Non-PCI loans | Commercial business | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 93,302 | 130,319 | ||||
C&I | Loans Receivable | Non-PCI loans | Commercial business | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 132,286 | 130,032 | ||||
C&I | Loans Receivable | Non-PCI loans | Commercial business | Doubtful | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 426 | 533 | ||||
C&I | Loans Receivable | Non-PCI loans | Commercial business | Loss | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 54 | 55 | ||||
C&I | Loans Receivable | Non-PCI loans | Trade finance | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 844,090 | 889,728 | ||||
C&I | Loans Receivable | Non-PCI loans | Trade finance | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 788,864 | 845,889 | ||||
C&I | Loans Receivable | Non-PCI loans | Trade finance | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 19,726 | 13,031 | ||||
C&I | Loans Receivable | Non-PCI loans | Trade finance | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 35,500 | 30,808 | ||||
C&I | Loans Receivable | PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 77,525 | [1] | 89,620 | [1] | ||
C&I | Loans Receivable | PCI loans | Commercial business | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 72,301 | [1] | 83,336 | [1] | ||
C&I | Loans Receivable | PCI loans | Commercial business | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 62,858 | 70,586 | ||||
C&I | Loans Receivable | PCI loans | Commercial business | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 997 | 1,103 | ||||
C&I | Loans Receivable | PCI loans | Commercial business | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 8,446 | 11,647 | ||||
C&I | Loans Receivable | PCI loans | Trade finance | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 5,224 | [1] | 6,284 | [1] | ||
C&I | Loans Receivable | PCI loans | Trade finance | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 3,535 | 4,620 | ||||
C&I | Loans Receivable | PCI loans | Trade finance | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,689 | 1,664 | ||||
Residential | Loans Receivable | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 4,997,219 | [1] | 5,316,689 | [1] | ||
Residential | Loans Receivable | Single-family | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 3,512,794 | [1] | 3,866,781 | [1] | ||
Residential | Loans Receivable | Multifamily | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,484,425 | [1] | 1,449,908 | [1] | ||
Residential | Loans Receivable | Non-PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 4,539,134 | 4,831,279 | ||||
Allowance for loan losses | -42,990 | -43,856 | -47,995 | -50,716 | ||
Residential | Loans Receivable | Non-PCI loans | Single-family | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 3,298,775 | 3,647,262 | ||||
Residential | Loans Receivable | Non-PCI loans | Single-family | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 3,277,085 | 3,627,491 | ||||
Residential | Loans Receivable | Non-PCI loans | Single-family | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 3,595 | 3,143 | ||||
Residential | Loans Receivable | Non-PCI loans | Single-family | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 18,095 | 16,628 | ||||
Residential | Loans Receivable | Non-PCI loans | Multifamily | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,240,359 | 1,184,017 | ||||
Residential | Loans Receivable | Non-PCI loans | Multifamily | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,162,798 | 1,095,982 | ||||
Residential | Loans Receivable | Non-PCI loans | Multifamily | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 4,906 | 5,124 | ||||
Residential | Loans Receivable | Non-PCI loans | Multifamily | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 72,655 | 82,911 | ||||
Residential | Loans Receivable | PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 458,085 | [1] | 485,410 | [1] | ||
Residential | Loans Receivable | PCI loans | Single-family | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 214,019 | [1] | 219,519 | [1] | ||
Residential | Loans Receivable | PCI loans | Single-family | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 208,238 | 213,829 | ||||
Residential | Loans Receivable | PCI loans | Single-family | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 745 | 374 | ||||
Residential | Loans Receivable | PCI loans | Single-family | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 5,036 | 5,316 | ||||
Residential | Loans Receivable | PCI loans | Multifamily | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 244,066 | [1] | 265,891 | [1] | ||
Residential | Loans Receivable | PCI loans | Multifamily | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 211,060 | 230,049 | ||||
Residential | Loans Receivable | PCI loans | Multifamily | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 33,006 | 35,842 | ||||
Consumer | Loans Receivable | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,612,164 | [1] | 1,513,742 | [1] | ||
Consumer | Loans Receivable | Non-PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,584,168 | 1,483,956 | ||||
Allowance for loan losses | -10,451 | -10,248 | -11,156 | -11,352 | ||
Consumer | Loans Receivable | Non-PCI loans | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 1,581,116 | 1,480,208 | ||||
Consumer | Loans Receivable | Non-PCI loans | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 336 | 1,005 | ||||
Consumer | Loans Receivable | Non-PCI loans | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 2,716 | 2,743 | ||||
Consumer | Loans Receivable | PCI loans | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 27,996 | [1] | 29,786 | [1] | ||
Consumer | Loans Receivable | PCI loans | Pass/Watch | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 27,330 | 29,026 | ||||
Consumer | Loans Receivable | PCI loans | Special Mention | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | 115 | 116 | ||||
Consumer | Loans Receivable | PCI loans | Substandard | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Total loans | $551 | $644 | ||||
[1] | Loans net of ASC 310-30 discount. |
LOANS_RECEIVABLE_AND_ALLOWANCE3
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 2) (Loans Receivable, USD $) | 3 Months Ended | |
In Billions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
item | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans receivable pledged to secure borrowings and to provide additional borrowing capacity from the FHLB and the Federal Reserve Bank | 14.79 | $14.66 |
Number of grades in the risk rating system utilized by the company to rate credit risk of loans receivable | 8 | |
Residential | Single-family | Minimum | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Number of units of residential property securing fixed and adjustable rate first mortgage loans | 1 | |
Adjustable rate mortgage, term of initial fixed interest rates | 1 year | |
Residential | Single-family | Maximum | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Number of units of residential property securing fixed and adjustable rate first mortgage loans | 4 | |
Adjustable rate mortgage, term of initial fixed interest rates | 3 years | |
Residential | Multifamily | Minimum | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Adjustable rate mortgage, term of initial fixed interest rates | 6 months | |
Residential | Multifamily | Maximum | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Adjustable rate mortgage, term of initial fixed interest rates | 3 years |
LOANS_RECEIVABLE_AND_ALLOWANCE4
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 3) (Loans Receivable, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Nonaccrual and Past Due Loans | ||||
Total loans | $21,375,568 | [1] | $21,727,145 | [1] |
Unearned fees, premiums and discounts, net | -899 | [1] | 2,804 | [1] |
Number of days a loan is past due and is placed on nonaccrual status | 90 days | |||
Non-PCI loans | ||||
Nonaccrual and Past Due Loans | ||||
Accruing loans 30 - 59 days past due | 31,659 | 30,318 | ||
Accruing loans 60 - 89 days past due | 6,142 | 9,917 | ||
Total accruing past due loans | 37,801 | 40,235 | ||
Nonaccrual loans less than 90 days past due | 42,105 | 41,770 | ||
Nonaccrual loans 90 or more days past due | 45,675 | 58,492 | ||
Total nonaccrual loans | 87,780 | 100,262 | ||
Current accruing loans | 20,012,001 | 20,264,535 | ||
Total loans | 20,137,582 | 20,405,032 | ||
Unearned fees, premiums and discounts, net | -899 | 2,804 | ||
Total recorded investment in non-PCI loans | 20,136,683 | 20,407,836 | ||
CRE | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 7,045,421 | [1] | 6,819,513 | [1] |
CRE | Income producing | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 6,455,177 | [1] | 6,256,059 | [1] |
CRE | Construction | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 367,460 | [1] | 332,287 | [1] |
CRE | Land | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 222,784 | [1] | 231,167 | [1] |
CRE | Non-PCI loans | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 6,371,041 | 6,102,216 | ||
CRE | Non-PCI loans | Income producing | ||||
Nonaccrual and Past Due Loans | ||||
Accruing loans 30 - 59 days past due | 9,699 | 14,171 | ||
Accruing loans 60 - 89 days past due | 1,860 | 3,593 | ||
Total accruing past due loans | 11,559 | 17,764 | ||
Nonaccrual loans less than 90 days past due | 18,739 | 19,348 | ||
Nonaccrual loans 90 or more days past due | 11,011 | 9,165 | ||
Total nonaccrual loans | 29,750 | 28,513 | ||
Current accruing loans | 5,761,622 | 5,521,769 | ||
Total loans | 5,802,931 | 5,568,046 | ||
CRE | Non-PCI loans | Construction | ||||
Nonaccrual and Past Due Loans | ||||
Nonaccrual loans less than 90 days past due | 14 | 15 | ||
Nonaccrual loans 90 or more days past due | 917 | 6,898 | ||
Total nonaccrual loans | 931 | 6,913 | ||
Current accruing loans | 357,187 | 312,930 | ||
Total loans | 358,118 | 319,843 | ||
CRE | Non-PCI loans | Land | ||||
Nonaccrual and Past Due Loans | ||||
Nonaccrual loans less than 90 days past due | 214 | 221 | ||
Nonaccrual loans 90 or more days past due | 2,386 | 2,502 | ||
Total nonaccrual loans | 2,600 | 2,723 | ||
Current accruing loans | 207,392 | 211,604 | ||
Total loans | 209,992 | 214,327 | ||
C&I | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 7,720,764 | [1] | 8,077,201 | [1] |
C&I | Commercial business | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 6,871,450 | [1] | 7,181,189 | [1] |
C&I | Trade finance | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 849,314 | [1] | 896,012 | [1] |
C&I | Non-PCI loans | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 7,643,239 | 7,987,581 | ||
C&I | Non-PCI loans | Commercial business | ||||
Nonaccrual and Past Due Loans | ||||
Accruing loans 30 - 59 days past due | 11,227 | 3,187 | ||
Accruing loans 60 - 89 days past due | 902 | 4,361 | ||
Total accruing past due loans | 12,129 | 7,548 | ||
Nonaccrual loans less than 90 days past due | 5,988 | 6,623 | ||
Nonaccrual loans 90 or more days past due | 25,436 | 21,813 | ||
Total nonaccrual loans | 31,424 | 28,436 | ||
Current accruing loans | 6,755,596 | 7,061,869 | ||
Total loans | 6,799,149 | 7,097,853 | ||
C&I | Non-PCI loans | Trade finance | ||||
Nonaccrual and Past Due Loans | ||||
Accruing loans 60 - 89 days past due | 600 | |||
Total accruing past due loans | 600 | |||
Nonaccrual loans less than 90 days past due | 37 | 73 | ||
Nonaccrual loans 90 or more days past due | 292 | |||
Total nonaccrual loans | 37 | 365 | ||
Current accruing loans | 843,453 | 889,363 | ||
Total loans | 844,090 | 889,728 | ||
Residential | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 4,997,219 | [1] | 5,316,689 | [1] |
Residential | Single-family | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 3,512,794 | [1] | 3,866,781 | [1] |
Residential | Multifamily | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 1,484,425 | [1] | 1,449,908 | [1] |
Residential | Non-PCI loans | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 4,539,134 | 4,831,279 | ||
Residential | Non-PCI loans | Single-family | ||||
Nonaccrual and Past Due Loans | ||||
Accruing loans 30 - 59 days past due | 7,239 | 6,381 | ||
Accruing loans 60 - 89 days past due | 2,402 | 1,294 | ||
Total accruing past due loans | 9,641 | 7,675 | ||
Nonaccrual loans less than 90 days past due | 4,731 | 2,861 | ||
Nonaccrual loans 90 or more days past due | 4,406 | 5,764 | ||
Total nonaccrual loans | 9,137 | 8,625 | ||
Current accruing loans | 3,279,997 | 3,630,962 | ||
Total loans | 3,298,775 | 3,647,262 | ||
Residential | Non-PCI loans | Multifamily | ||||
Nonaccrual and Past Due Loans | ||||
Accruing loans 30 - 59 days past due | 2,611 | 4,425 | ||
Accruing loans 60 - 89 days past due | 376 | 507 | ||
Total accruing past due loans | 2,987 | 4,932 | ||
Nonaccrual loans less than 90 days past due | 12,216 | 12,460 | ||
Nonaccrual loans 90 or more days past due | 1,145 | 8,359 | ||
Total nonaccrual loans | 13,361 | 20,819 | ||
Current accruing loans | 1,224,011 | 1,158,266 | ||
Total loans | 1,240,359 | 1,184,017 | ||
Consumer | ||||
Nonaccrual and Past Due Loans | ||||
Total loans | 1,612,164 | [1] | 1,513,742 | [1] |
Consumer | Non-PCI loans | ||||
Nonaccrual and Past Due Loans | ||||
Accruing loans 30 - 59 days past due | 883 | 2,154 | ||
Accruing loans 60 - 89 days past due | 2 | 162 | ||
Total accruing past due loans | 885 | 2,316 | ||
Nonaccrual loans less than 90 days past due | 166 | 169 | ||
Nonaccrual loans 90 or more days past due | 374 | 3,699 | ||
Total nonaccrual loans | 540 | 3,868 | ||
Current accruing loans | 1,582,743 | 1,477,772 | ||
Total loans | $1,584,168 | $1,483,956 | ||
[1] | Loans net of ASC 310-30 discount. |
LOANS_RECEIVABLE_AND_ALLOWANCE5
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Loans in process of foreclosure | ||
Other real estate owned, net | $32,692,000 | $32,111,000 |
Loans Receivable | PCI loans | ||
Nonaccrual loans | ||
Loans on nonaccrual status | 53,400,000 | 63,400,000 |
Residential real estate properties | ||
Loans in process of foreclosure | ||
Carrying amount of foreclosed residential real estate properties included in total net OREO | 4,100,000 | 3,500,000 |
Residential | ||
Loans in process of foreclosure | ||
Recorded investment of consumer mortgage loans for which formal foreclosure proceedings are in process | $16,700,000 | $16,900,000 |
LOANS_RECEIVABLE_AND_ALLOWANCE6
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 5) (Loans Receivable, USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
contract | |||||
Loans Modified as TDRs | |||||
Period beyond which a TDR generally becomes delinquent | 90 days | ||||
Non-PCI loans | |||||
Loans Modified as TDRs | |||||
Number of contracts modified as TDRs that subsequently defaulted | 0 | ||||
Performing loan | A/B Note Splits | |||||
Loans Modified as TDRs | |||||
Loan balance of restructured loans | 2,300,000 | $2,900,000 | |||
CRE | Non-PCI loans | |||||
Loans Modified as TDRs | |||||
Number of contracts modified as TDRs that subsequently defaulted | 1 | ||||
Balance of loans modified as TDRs that subsequently defaulted | 2,700,000 | ||||
CRE | Non-PCI loans | Income producing | |||||
Loans Modified as TDRs | |||||
Number of Contracts | 1 | ||||
Pre-Modification Outstanding Recorded Investment | 828,000 | ||||
Post-Modification Outstanding Recorded Investment | 833,000 | [1] | |||
C&I | Non-PCI loans | |||||
Loans Modified as TDRs | |||||
Number of contracts modified as TDRs that subsequently defaulted | 1 | ||||
Balance of loans modified as TDRs that subsequently defaulted | 570,000 | ||||
C&I | Non-PCI loans | Commercial business | |||||
Loans Modified as TDRs | |||||
Number of Contracts | 1 | 5 | |||
Pre-Modification Outstanding Recorded Investment | 167,000 | 1,721,000 | |||
Post-Modification Outstanding Recorded Investment | 164,000 | [1] | 1,691,000 | [1] | |
Financial Impact | -32,000 | [2] | 1,248,000 | [2] | |
Residential | Non-PCI loans | Single-family | |||||
Loans Modified as TDRs | |||||
Number of Contracts | 1 | 3 | |||
Pre-Modification Outstanding Recorded Investment | 281,000 | 5,823,000 | |||
Post-Modification Outstanding Recorded Investment | 281,000 | [1] | 5,804,000 | [1] | |
Financial Impact | -2,000 | [2] | |||
[1] | Includes subsequent payments after modification and reflects the balance as of March 31, 2015 and 2014. | ||||
[2] | The financial impact includes charge-offs and specific reserves recorded at modification date. |
LOANS_RECEIVABLE_AND_ALLOWANCE7
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 6) (Non-PCI loans, Loans Receivable, USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Impaired loans disclosures | |||||
Unpaid principal balance | $150,338 | $177,381 | |||
Recorded Investment With No Allowance | 71,100 | 82,465 | |||
Recorded Investment With Allowance | 59,052 | 71,655 | |||
Recorded investment | 130,152 | 154,120 | |||
Related allowance | 20,173 | 19,464 | |||
Average recorded investment | 134,758 | 186,935 | |||
Interest income recognized (accrual basis) | 639 | [1] | 913 | [1] | |
CRE | Income producing | |||||
Impaired loans disclosures | |||||
Unpaid principal balance | 50,389 | 57,805 | |||
Recorded Investment With No Allowance | 28,186 | 34,399 | |||
Recorded Investment With Allowance | 15,001 | 15,646 | |||
Recorded investment | 43,187 | 50,045 | |||
Related allowance | 1,399 | 1,581 | |||
Average recorded investment | 44,195 | 67,153 | |||
Interest income recognized (accrual basis) | 141 | [1] | 325 | [1] | |
CRE | Construction | |||||
Impaired loans disclosures | |||||
Unpaid principal balance | 916 | 6,888 | |||
Recorded Investment With No Allowance | 916 | 6,888 | |||
Recorded investment | 916 | 6,888 | |||
Average recorded investment | 3,902 | 6,888 | |||
CRE | Land | |||||
Impaired loans disclosures | |||||
Unpaid principal balance | 8,234 | 13,291 | |||
Recorded Investment With No Allowance | 2,826 | 2,838 | |||
Recorded Investment With Allowance | 543 | 5,622 | |||
Recorded investment | 3,369 | 8,460 | |||
Related allowance | 175 | 1,906 | |||
Average recorded investment | 3,438 | 12,227 | |||
Interest income recognized (accrual basis) | 10 | [1] | 121 | [1] | |
C&I | Commercial business | |||||
Impaired loans disclosures | |||||
Unpaid principal balance | 43,289 | 42,396 | |||
Recorded Investment With No Allowance | 10,815 | 10,552 | |||
Recorded Investment With Allowance | 28,186 | 25,717 | |||
Recorded investment | 39,001 | 36,269 | |||
Related allowance | 17,886 | 15,174 | |||
Average recorded investment | 39,310 | 43,726 | |||
Interest income recognized (accrual basis) | 202 | [1] | 207 | [1] | |
C&I | Trade finance | |||||
Impaired loans disclosures | |||||
Unpaid principal balance | 223 | 280 | |||
Recorded Investment With Allowance | 216 | 274 | |||
Recorded investment | 216 | 274 | |||
Related allowance | 20 | 28 | |||
Average recorded investment | 245 | 637 | |||
Interest income recognized (accrual basis) | 3 | [1] | 4 | [1] | |
Residential | Single-family | |||||
Impaired loans disclosures | |||||
Unpaid principal balance | 16,767 | 17,838 | |||
Recorded Investment With No Allowance | 7,007 | 5,137 | |||
Recorded Investment With Allowance | 8,404 | 11,398 | |||
Recorded investment | 15,411 | 16,535 | |||
Related allowance | 413 | 461 | |||
Average recorded investment | 15,423 | 17,100 | |||
Interest income recognized (accrual basis) | 68 | [1] | 50 | [1] | |
Residential | Multifamily | |||||
Impaired loans disclosures | |||||
Unpaid principal balance | 29,262 | 37,624 | |||
Recorded Investment With No Allowance | 20,200 | 21,500 | |||
Recorded Investment With Allowance | 6,594 | 12,890 | |||
Recorded investment | 26,794 | 34,390 | |||
Related allowance | 279 | 313 | |||
Average recorded investment | 26,987 | 36,369 | |||
Interest income recognized (accrual basis) | 203 | [1] | 205 | [1] | |
Consumer | |||||
Impaired loans disclosures | |||||
Unpaid principal balance | 1,258 | 1,259 | |||
Recorded Investment With No Allowance | 1,150 | 1,151 | |||
Recorded Investment With Allowance | 108 | 108 | |||
Recorded investment | 1,258 | 1,259 | |||
Related allowance | 1 | 1 | |||
Average recorded investment | 1,258 | 2,835 | |||
Interest income recognized (accrual basis) | $12 | [1] | $1 | [1] | |
[1] | Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are generally reflected as a reduction of principal and not as interest income. |
LOANS_RECEIVABLE_AND_ALLOWANCE8
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 7) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Financing Receivable Allowance for Credit Losses Roll Forward | |||
Beginning balance | $261,679 | ||
(Reversal of) provision for loan losses | 4,987 | 6,933 | |
Ending balance | 257,738 | ||
Ending balance allocated to: | |||
Ending balance | 257,738 | ||
Loans Receivable | |||
Financing Receivable Allowance for Credit Losses Roll Forward | |||
Beginning balance | 261,679 | [1] | 249,675 |
(Reversal of) provision for loan losses | 4,987 | 6,933 | |
Provision allocation for unfunded loan commitments and letters of credit | -2,920 | -215 | |
Charge-offs | -8,800 | -6,136 | |
Recoveries | 2,792 | 1,879 | |
Net recoveries (charge-offs) | -6,008 | -4,257 | |
Ending balance | 257,738 | [1] | 252,136 |
Ending balance allocated to: | |||
Individually evaluated for impairment | 20,173 | 26,718 | |
Collectively evaluated for impairment | 236,922 | 223,216 | |
Acquired with deteriorated credit quality | 643 | 2,202 | |
Ending balance | 257,738 | [1] | 252,136 |
Loans Receivable | Non-PCI loans | |||
Financing Receivable Allowance for Credit Losses Roll Forward | |||
Beginning balance | 260,965 | 247,406 | |
(Reversal of) provision for loan losses | 5,058 | 7,000 | |
Provision allocation for unfunded loan commitments and letters of credit | -2,920 | -215 | |
Charge-offs | -8,800 | -6,136 | |
Recoveries | 2,792 | 1,879 | |
Net recoveries (charge-offs) | -6,008 | -4,257 | |
Ending balance | 257,095 | 249,934 | |
Ending balance allocated to: | |||
Individually evaluated for impairment | 20,173 | 26,718 | |
Collectively evaluated for impairment | 236,922 | 223,216 | |
Ending balance | 257,095 | 249,934 | |
Loans Receivable | PCI loans | |||
Financing Receivable Allowance for Credit Losses Roll Forward | |||
Beginning balance | 714 | [1] | 2,269 |
(Reversal of) provision for loan losses | -71 | -67 | |
Ending balance | 643 | [1] | 2,202 |
Ending balance allocated to: | |||
Acquired with deteriorated credit quality | 643 | 2,202 | |
Ending balance | 643 | [1] | 2,202 |
CRE | Loans Receivable | Non-PCI loans | |||
Financing Receivable Allowance for Credit Losses Roll Forward | |||
Beginning balance | 72,263 | 70,154 | |
(Reversal of) provision for loan losses | -2,333 | -7,036 | |
Charge-offs | -1,002 | -319 | |
Recoveries | 812 | 828 | |
Net recoveries (charge-offs) | -190 | 509 | |
Ending balance | 69,740 | 63,627 | |
Ending balance allocated to: | |||
Individually evaluated for impairment | 1,574 | 8,375 | |
Collectively evaluated for impairment | 68,166 | 55,252 | |
Ending balance | 69,740 | 63,627 | |
C&I | Loans Receivable | Non-PCI loans | |||
Financing Receivable Allowance for Credit Losses Roll Forward | |||
Beginning balance | 134,598 | 115,184 | |
(Reversal of) provision for loan losses | 5,378 | 16,592 | |
Charge-offs | -6,589 | -5,531 | |
Recoveries | 527 | 911 | |
Net recoveries (charge-offs) | -6,062 | -4,620 | |
Ending balance | 133,914 | 127,156 | |
Ending balance allocated to: | |||
Individually evaluated for impairment | 17,906 | 16,490 | |
Collectively evaluated for impairment | 116,008 | 110,666 | |
Ending balance | 133,914 | 127,156 | |
Residential | Loans Receivable | Non-PCI loans | |||
Financing Receivable Allowance for Credit Losses Roll Forward | |||
Beginning balance | 43,856 | 50,716 | |
(Reversal of) provision for loan losses | -1,571 | -2,575 | |
Charge-offs | -746 | -283 | |
Recoveries | 1,451 | 137 | |
Net recoveries (charge-offs) | 705 | -146 | |
Ending balance | 42,990 | 47,995 | |
Ending balance allocated to: | |||
Individually evaluated for impairment | 692 | 1,853 | |
Collectively evaluated for impairment | 42,298 | 46,142 | |
Ending balance | 42,990 | 47,995 | |
Consumer | Loans Receivable | Non-PCI loans | |||
Financing Receivable Allowance for Credit Losses Roll Forward | |||
Beginning balance | 10,248 | 11,352 | |
(Reversal of) provision for loan losses | 664 | -196 | |
Charge-offs | -463 | -3 | |
Recoveries | 2 | 3 | |
Net recoveries (charge-offs) | -461 | ||
Ending balance | 10,451 | 11,156 | |
Ending balance allocated to: | |||
Individually evaluated for impairment | 1 | ||
Collectively evaluated for impairment | 10,450 | 11,156 | |
Ending balance | 10,451 | 11,156 | |
Unallocated | Loans Receivable | Non-PCI loans | |||
Financing Receivable Allowance for Credit Losses Roll Forward | |||
(Reversal of) provision for loan losses | 2,920 | 215 | |
Provision allocation for unfunded loan commitments and letters of credit | ($2,920) | ($215) | |
[1] | Loans net of ASC 310-30 discount. |
LOANS_RECEIVABLE_AND_ALLOWANCE9
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 8) (Loans Receivable, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Recorded investment in total loans receivable related to each balance in the allowance for loan losses | ||||
Individually evaluated for impairment | $130,152 | $154,120 | ||
Collectively evaluated for impairment | 20,007,430 | 20,250,912 | ||
Acquired with deteriorated credit quality | 1,237,986 | [1] | 1,322,113 | [1] |
Total loans | 21,375,568 | [1] | 21,727,145 | [1] |
CRE | ||||
Recorded investment in total loans receivable related to each balance in the allowance for loan losses | ||||
Individually evaluated for impairment | 47,472 | 65,393 | ||
Collectively evaluated for impairment | 6,323,569 | 6,036,823 | ||
Acquired with deteriorated credit quality | 674,380 | [1] | 717,297 | [1] |
Total loans | 7,045,421 | [1] | 6,819,513 | [1] |
C&I | ||||
Recorded investment in total loans receivable related to each balance in the allowance for loan losses | ||||
Individually evaluated for impairment | 39,217 | 36,543 | ||
Collectively evaluated for impairment | 7,604,022 | 7,951,038 | ||
Acquired with deteriorated credit quality | 77,525 | [1] | 89,620 | [1] |
Total loans | 7,720,764 | [1] | 8,077,201 | [1] |
Residential | ||||
Recorded investment in total loans receivable related to each balance in the allowance for loan losses | ||||
Individually evaluated for impairment | 42,205 | 50,925 | ||
Collectively evaluated for impairment | 4,496,929 | 4,780,354 | ||
Acquired with deteriorated credit quality | 458,085 | [1] | 485,410 | [1] |
Total loans | 4,997,219 | [1] | 5,316,689 | [1] |
Consumer | ||||
Recorded investment in total loans receivable related to each balance in the allowance for loan losses | ||||
Individually evaluated for impairment | 1,258 | 1,259 | ||
Collectively evaluated for impairment | 1,582,910 | 1,482,697 | ||
Acquired with deteriorated credit quality | 27,996 | [1] | 29,786 | [1] |
Total loans | $1,612,164 | [1] | $1,513,742 | [1] |
[1] | Loans net of ASC 310-30 discount. |
Recovered_Sheet1
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 9) (USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Net payable to the FDIC | $101,400,000 | ||||
Net FDIC indemnification asset | 27,600,000 | ||||
FDIC indemnification asset/(Payable to FDIC, net) | |||||
Beginning balance | -96,106,000 | 74,708,000 | |||
Amortization | -1,542,000 | -28,490,000 | |||
Reductions | -649,000 | [1] | -11,842,000 | [1] | |
Estimate of FDIC repayment | -3,114,000 | [2] | -6,824,000 | [2] | |
Ending Balance | -101,411,000 | 27,552,000 | |||
Loans Receivable | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans covered under shared-loss agreements | 354,400,000 | 1,480,000,000 | |||
Loans Receivable | PCI loans | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans covered under shared-loss agreements | 311,600,000 | 1,230,000,000 | |||
Changes in the accretable yield for the PCI loans | |||||
Beginning balance | 311,688,000 | 461,545,000 | |||
Additions | 6,745,000 | ||||
Accretion | -30,569,000 | -61,946,000 | |||
Changes in expected cash flows | 12,036,000 | 24,112,000 | |||
Ending Balance | 293,155,000 | 430,456,000 | |||
Loans Receivable | United Commercial Bank (UCB) | Covered Loans | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Percentage of eligible losses for which the FDIC is obligated to reimburse the Company | 80.00% | ||||
Percentage of eligible losses in excess of a specified amount for which the FDIC is obligated to reimburse the Company | 95.00% | ||||
Amount of eligible losses over which the FDIC is obligated to reimburse a higher percentage | $2,050,000,000 | ||||
Percentage obligation to reimburse the FDIC for eligible recoveries related to covered assets | 80.00% | ||||
Percentage obligation to reimburse the FDIC for eligible recoveries related to losses in excess of a specified amount on covered assets | 95.00% | ||||
Loans Receivable | Washington First International Bank (WFIB) | Covered Loans | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Percentage of eligible losses for which the FDIC is obligated to reimburse the Company | 80.00% | ||||
Percentage obligation to reimburse the FDIC for eligible recoveries related to covered assets | 80.00% | ||||
[1] | Reductions relate to charge-offs, partial prepayments, loan payoffs and loan sales which result in a corresponding reduction of the indemnification asset. | ||||
[2] | This represents the change in the calculated estimate the Company will be required to pay the FDIC at the end of the FDIC shared-loss agreements, due to lower thresholds of losses. |
Recovered_Sheet2
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Details 10) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Loans Held for Sale | |||
Loans held for sale | $196,111,000 | $45,950,000 | |
Loans receivable reclassified to loans held for sale | 820,473,000 | 478,982,000 | |
Write-down of loans transferred from loans held for investment to loans held for sale recorded to allowance for loan losses | 1,700,000 | 0 | |
Proceeds from total loans sold | 679,800,000 | 183,600,000 | |
Net gain from sale of loans held for sale during the period | $9,551,000 | $6,196,000 |
INVESTMENTS_IN_QUALIFIED_AFFOR2
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, NET, TAX CREDIT AND OTHER INVESTMENTS (Details) (USD $) | 3 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Impact of new accounting guidance | |||||
Investment in qualified affordable housing partnerships, net | $182,719 | $178,962 | [1] | ||
Other assets - Deferred tax assets | 389,601 | ||||
Retained earnings | 1,675,234 | 1,604,141 | [1] | ||
Noninterest expense - Amortization of tax credit and other investments | 6,299 | 1,492 | [1] | ||
Income before taxes | 146,826 | 116,163 | [1] | ||
Provision for income taxes | 46,799 | 41,992 | [1] | ||
Net income | 100,027 | 74,171 | [1] | ||
EARNINGS PER SHARE | |||||
BASIC (in dollars per share) | $0.70 | $0.52 | [1] | ||
DILUTED (in dollars per share) | $0.69 | $0.52 | [1] | ||
Previously Reported | |||||
Impact of new accounting guidance | |||||
Investment in qualified affordable housing partnerships, net | 178,652 | ||||
Other assets - Deferred tax assets | 384,367 | ||||
Retained earnings | 1,598,598 | ||||
Noninterest expense - Amortization of tax credit and other investments | 5,964 | ||||
Income before taxes | 111,690 | ||||
Provision for income taxes | 34,949 | ||||
Net income | $76,741 | ||||
EARNINGS PER SHARE | |||||
BASIC (in dollars per share) | $0.54 | ||||
DILUTED (in dollars per share) | $0.54 | ||||
[1] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
INVESTMENTS_IN_QUALIFIED_AFFOR3
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, NET, TAX CREDIT AND OTHER INVESTMENTS (Details 2) (USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
Investments in qualified affordable housing partnership, net | |||||
Investment in qualified affordable housing partnerships, net | $182,719,000 | $178,962,000 | [1] | ||
Accrued expenses and other liabilities - Unfunded commitments | 50,884,000 | 43,311,000 | |||
Tax credits and other tax benefits recognized | 8,775,000 | 7,792,000 | |||
Amortization expense included in provision for income taxes | 6,244,000 | 5,357,000 | |||
Investments in tax credit and other investments | |||||
Investments in tax credit and other investments | 117,000,000 | 110,100,000 | |||
Unfunded commitments for investments in tax credit and other investments | 66,200,000 | 71,400,000 | |||
Noninterest expense - Amortization of tax credit and other investments | $6,299,000 | $1,492,000 | [1] | ||
[1] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |||
Goodwill | $469,433,000 | $469,433,000 | $458,467,000 |
Goodwill impairment | $0 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Premiums on Acquired Deposits | |||
Amortization of premiums on deposits acquired | $2,391,000 | $2,500,000 | |
Estimated Future Amortization Expense of Premiums on Acquired Deposits | |||
Nine months ending December 31, 2015 | 6,842,000 | ||
Year ending December 31, 2016 | 8,086,000 | ||
Year ending December 31, 2017 | 6,935,000 | ||
Year ending December 31, 2018 | 5,883,000 | ||
Year ending December 31, 2019 | 4,864,000 | ||
Thereafter | 10,307,000 | ||
Total | 42,917,000 | ||
Premiums on acquired deposits | |||
Premiums on Acquired Deposits | |||
Gross carrying amount of premiums on acquired deposits | 108,800,000 | 108,800,000 | |
Accumulated amortization for premiums on acquired deposits | $65,900,000 | $63,500,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Credit Extensions | ||
Allowance for unfunded loan commitments, off-balance sheet credit exposures and recourse provision | $15,600,000 | $12,700,000 |
Undisbursed Loan Commitments | ||
Credit Extensions | ||
Loan | 3,710,000,000 | 3,870,000,000 |
Commercial and Standby Letters of Credit | ||
Credit Extensions | ||
Commercial and standby letters of credit issued | $1,440,000,000 | $1,250,000,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | Mar. 31, 2015 | Dec. 18, 2014 | Dec. 31, 2014 |
F&F, LLC and 618 Investment, Inc. v. East West Bank | East West Bank | |||
Litigation | |||
Interim adjusted amount of the verdict | $36,600,000 | ||
Litigation accrual | 32,600,000 | ||
Loans Sold or Securitized with Recourse | |||
Guarantees | |||
Principal amount of loans sold or securitized | 237,700,000 | 249,800,000 | |
Recourse reserve | 673,000 | 2,200,000 | |
Loans Sold or Securitized with Full Recourse | Residential | Single-family | |||
Guarantees | |||
Principal amount of loans sold or securitized | 34,300,000 | 35,500,000 | |
Loans Sold or Securitized with Limited Recourse | Residential | Multifamily | |||
Guarantees | |||
Principal amount of loans sold or securitized | $203,400,000 | $214,300,000 | |
Recourse provision limitation, maximum percentage of the top loss on the multifamily loans | 4.00% |
STOCKHOLDERS_EQUITY_AND_EARNIN2
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 17, 2014 | Dec. 31, 2014 | Jan. 16, 2014 |
Class of Stock | |||||
Final consideration (in shares) | 5,583,093 | ||||
Quarterly Dividends | |||||
Dividends for common stock declared (in dollars per share) | $0.20 | $0.18 | |||
MetroCorp | |||||
Class of Stock | |||||
Final consideration (in shares) | 5,583,093 | ||||
Final consideration in cash | $89.40 | ||||
Fair value of warrants assumed | 8.8 | ||||
Cash paid to option holders | 2.4 | ||||
Number of warrants exercised | 0 | ||||
MetroCorp | |||||
Class of Stock | |||||
Number of shares under warrant | 771,429 | ||||
Common Stock | |||||
Class of Stock | |||||
Amount of stock repurchase approved by the Board of Directors | 100 | ||||
Quarterly Dividends | |||||
Dividends for common stock declared (in dollars per share) | $0.20 | $0.18 | |||
Increase from prior quarterly dividend (in dollars per share) | $0.02 | ||||
Increase from prior quarterly dividend (as a percent) | 11.00% | ||||
Common stock cash dividends paid | $28.90 | $25.90 | |||
Common Stock | MetroCorp | |||||
Class of Stock | |||||
Final consideration (in shares) | 5,583,093 | ||||
Number of shares under warrant | 230,282 |
STOCKHOLDERS_EQUITY_AND_EARNIN3
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings per share calculations | |||
Net income | $100,027 | $74,171 | [1] |
Less: Earnings allocated to participating securities | -3 | -160 | |
Basic EPS - income allocated to common stockholders | 100,024 | 74,011 | [1] |
Effect of dilutive securities: | |||
Restricted stock units | 106 | 80 | |
Diluted EPS - income allocated to common stockholders | $100,130 | $74,091 | [1] |
Number of Shares | |||
Weighted average shares outstanding | 143,655 | 141,962 | |
Effect of dilutive securities on weighted average shares outstanding | |||
Stock options (in shares) | 6 | 79 | |
Restricted stock units (in shares) | 533 | 447 | |
Warrants (in shares) | 155 | 144 | |
Total weighted average diluted shares outstanding | 144,349 | 142,632 | |
Earnings per share available to common stockholders | |||
Basic EPS - income allocated to common stockholders (in dollars per share) | $0.70 | $0.52 | [1] |
Diluted EPS - income allocated to common stockholders (in dollars per share) | $0.69 | $0.52 | [1] |
[1] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
STOCKHOLDERS_EQUITY_AND_EARNIN4
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Details 3) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Excluded from the computation of diluted EPS (in shares) | 81 | |
Restricted Stock Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Excluded from the computation of diluted EPS (in shares) | 170 | 168 |
STOCKHOLDERS_EQUITY_AND_EARNIN5
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement | ||
Balance, beginning of the period | $4,237 | ($30,459) |
Net unrealized gains (losses) arising during period | 11,872 | 15,405 |
Less: reclassification adjustment for gains included in net income | -2,554 | -1,983 |
Net unrealized gains (losses) | 9,318 | 13,422 |
Balance, end of the period | 13,555 | -17,037 |
Available-for-Sale Investment Securities | ||
Statement | ||
Balance, beginning of the period | 4,176 | -30,538 |
Net unrealized gains (losses) arising during period | 11,879 | 15,422 |
Less: reclassification adjustment for gains included in net income | -2,554 | -1,983 |
Net unrealized gains (losses) | 9,325 | 13,439 |
Balance, end of the period | 13,501 | -17,099 |
Other Investments | ||
Statement | ||
Balance, beginning of the period | 61 | 79 |
Net unrealized gains (losses) arising during period | -7 | -17 |
Net unrealized gains (losses) | -7 | -17 |
Balance, end of the period | $54 | $62 |
STOCKHOLDERS_EQUITY_AND_EARNIN6
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Details 5) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Unrealized gains on available-for-sale investment securities: | ||||
Net unrealized gains arising during period, before-tax amount | $20,482 | $26,590 | ||
Less: reclassification adjustment for gains included in net income, before-tax amount | -4,404 | [1] | -3,418 | [1] |
Net unrealized gains, before-tax amount | 16,078 | 23,172 | ||
Unrealized losses on other investments: | ||||
Net unrealized losses arising during period, before-tax amount | -12 | -29 | ||
Net unrealized losses, before-tax amount | -12 | -29 | ||
Other comprehensive income, before-tax amount | 16,066 | 23,143 | ||
Unrealized gains on available-for-sale investment securities: | ||||
Net unrealized gains arising during period, tax expense or benefit | -8,603 | -11,168 | ||
Less: reclassification adjustment for gains included in net income, tax expense or benefit | 1,850 | [1] | 1,435 | [1] |
Net unrealized gains, tax expense or benefit | -6,753 | -9,733 | ||
Unrealized losses on other investments: | ||||
Net unrealized losses arising during period, tax expense or benefit | 5 | 12 | ||
Net unrealized losses, tax expense or benefit | 5 | 12 | ||
Other comprehensive income, tax expense or benefit | -6,748 | -9,721 | ||
Unrealized gains on available-for-sale investment securities: | ||||
Net unrealized gains arising during period, net-of-tax amount | 11,879 | 15,422 | ||
Less: reclassification adjustment for gains included in net income, net-of-tax amount | -2,554 | [1] | -1,983 | [1] |
Net unrealized gains, net-of-tax amount | 9,325 | 13,439 | ||
Unrealized losses on other investments: | ||||
Net unrealized losses arising during period, net-of-tax amount | -7 | -17 | ||
Net unrealized losses, net-of-tax amount | -7 | -17 | ||
Other comprehensive income | $9,318 | $13,422 | ||
[1] | The pretax amount is reported in net gains on sales of available-for-sale investment securities in the consolidated statements of income. |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) | 3 Months Ended |
Mar. 31, 2015 | |
item | |
BUSINESS SEGMENTS | |
Number of operating segments | 3 |
Number of business divisions | 3 |
Number of segment whom broad administrative support are provided | 2 |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
Segment Reporting Information | ||||||
Interest income | $263,261 | $286,173 | ||||
Charge for funds used | -70,094 | -60,496 | ||||
Interest spread on funds used | 193,167 | 225,677 | ||||
Interest expense | -27,544 | -28,207 | ||||
Credit on funds provided | 70,094 | 60,496 | ||||
Interest spread on funds provided | 42,550 | 32,289 | ||||
Net interest income (loss) | 235,717 | 257,966 | ||||
Provision for loan losses | 4,987 | 6,933 | ||||
Depreciation, amortization and accretion | 4,127 | [1] | 9,064 | [1],[2] | ||
Goodwill | 469,433 | 458,467 | 469,433 | |||
Segment pre-tax profit | 146,826 | 116,163 | [2] | |||
Segment assets | 29,906,835 | 27,400,604 | [2] | 28,743,592 | [2] | |
Retail Banking | ||||||
Segment Reporting Information | ||||||
Interest income | 87,446 | 98,724 | ||||
Charge for funds used | -23,298 | -16,045 | ||||
Interest spread on funds used | 64,148 | 82,679 | ||||
Interest expense | -12,224 | -11,711 | ||||
Credit on funds provided | 57,668 | 48,193 | ||||
Interest spread on funds provided | 45,444 | 36,482 | ||||
Net interest income (loss) | 109,592 | 119,161 | ||||
Provision for loan losses | 731 | 2,652 | ||||
Depreciation, amortization and accretion | 1,682 | [1] | 2,571 | [1],[2] | ||
Goodwill | 357,207 | 354,163 | ||||
Segment pre-tax profit | 52,935 | 52,170 | [2] | |||
Segment assets | 7,540,501 | 7,877,996 | [2] | |||
Commercial Banking | ||||||
Segment Reporting Information | ||||||
Interest income | 158,786 | 169,076 | ||||
Charge for funds used | -37,351 | -21,328 | ||||
Interest spread on funds used | 121,435 | 147,748 | ||||
Interest expense | -4,263 | -3,280 | ||||
Credit on funds provided | 8,016 | 8,436 | ||||
Interest spread on funds provided | 3,753 | 5,156 | ||||
Net interest income (loss) | 125,188 | 152,904 | ||||
Provision for loan losses | 4,256 | 4,281 | ||||
Depreciation, amortization and accretion | -10,477 | [1] | -3,328 | [1],[2] | ||
Goodwill | 112,226 | 104,304 | ||||
Segment pre-tax profit | 93,175 | 86,931 | [2] | |||
Segment assets | 15,491,368 | 13,661,149 | [2] | |||
Other | ||||||
Segment Reporting Information | ||||||
Interest income | 17,029 | 18,373 | ||||
Charge for funds used | -9,445 | -23,123 | ||||
Interest spread on funds used | 7,584 | -4,750 | ||||
Interest expense | -11,057 | -13,216 | ||||
Credit on funds provided | 4,410 | 3,867 | ||||
Interest spread on funds provided | -6,647 | -9,349 | ||||
Net interest income (loss) | 937 | -14,099 | ||||
Depreciation, amortization and accretion | 12,922 | [1] | 9,821 | [1],[2] | ||
Segment pre-tax profit | 716 | -22,938 | [2] | |||
Segment assets | $6,874,966 | $5,861,459 | [2] | |||
[1] | Includes amortization and accretion related to the FDIC indemnification asset. | |||||
[2] | Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company?s investments in qualified affordable housing projects Accounting Standard Update ("ASU") 2014-01. See Note 10 of the Notes to Consolidated Financial Statements for additional information. |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Apr. 30, 2015 | |
Subsequent events | |||
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $0.20 | $0.18 | |
Subsequent event | |||
Subsequent events | |||
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $0.20 |