Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | EAST WEST BANCORP INC | |
Entity Central Index Key | 1,069,157 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 144,484,091 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 346,005 | $ 460,559 |
Interest-bearing cash with banks | 2,088,638 | 1,417,944 |
Cash and cash equivalents | 2,434,643 | 1,878,503 |
Interest-bearing deposits with banks | 249,849 | 323,148 |
Securities purchased under resale agreements (“resale agreements”) | 1,650,000 | 2,000,000 |
Securities : | ||
Available-for-sale investment securities, at fair value (includes assets pledged as collateral of $640,853 in 2017 and $767,437 in 2016) | 2,962,034 | 3,335,795 |
Held-to-maturity investment security, at cost (fair value of $133,656 in 2017 and $144,593 in 2016) | 132,497 | 143,971 |
Restricted equity securities, at cost | 73,019 | 72,775 |
Loans held-for-sale | 28,931 | 23,076 |
Loans held-for-investment (net of allowance for loan losses of $263,094 in 2017 and $260,520 in 2016; includes assets pledged as collateral of $17,159,894 in 2017 and $16,441,068 in 2016) | 26,198,198 | 25,242,619 |
Investments in qualified affordable housing partnerships, net | 176,965 | 183,917 |
Investments in tax credit and other investments, net | 177,023 | 173,280 |
Premises and equipment (net of accumulated depreciation of $103,933 in 2017 and $114,890 in 2016) | 128,002 | 159,923 |
Goodwill | 469,433 | 469,433 |
Other assets | 661,532 | 782,400 |
TOTAL | 35,342,126 | 34,788,840 |
Customer deposits: | ||
Noninterest-bearing | 10,658,946 | 10,183,946 |
Interest-bearing | 19,884,029 | 19,707,037 |
Total deposits | 30,542,975 | 29,890,983 |
Short-term borrowings | 42,023 | 60,050 |
Federal Home Loan Bank (“FHLB”) advances | 322,196 | 321,643 |
Securities sold under repurchase agreements (“repurchase agreements”) | 200,000 | 350,000 |
Long-term debt | 181,388 | 186,327 |
Accrued expenses and other liabilities | 487,590 | 552,096 |
Total liabilities | 31,776,172 | 31,361,099 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,119,710 and 164,604,072 shares issued in 2017 and 2016, respectively. | 164 | 164 |
Additional paid-in capital | 1,732,585 | 1,727,434 |
Retained earnings | 2,328,264 | 2,187,676 |
Treasury stock at cost — 20,658,144 shares in 2017 and 20,436,621 shares in 2016. | (451,541) | (439,387) |
Accumulated other comprehensive loss (“AOCI”), net of tax | (43,518) | (48,146) |
Total stockholders’ equity | 3,565,954 | 3,427,741 |
TOTAL | $ 35,342,126 | $ 34,788,840 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Available-for-sale securities pledged as collateral | $ 640,853 | $ 767,437 |
Held-to-maturity investment security, fair value | 133,656 | 144,593 |
Allowance for loan losses | 263,094 | 260,520 |
Loans held-for-investment pledged as collateral | 17,159,894 | 16,441,068 |
Premises and equipment, accumulated depreciation | $ 103,933 | $ 114,890 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 165,119,710 | 164,604,072 |
Treasury stock, shares (in shares) | 20,658,144 | 20,436,621 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
INTEREST AND DIVIDEND INCOME | ||
Loans receivable, including fees | $ 272,061 | $ 253,542 |
Investment securities | 15,247 | 11,193 |
Resale agreements | 9,468 | 6,677 |
Restricted equity securities | 777 | 795 |
Interest-bearing cash and deposits with banks | 5,116 | 3,965 |
Total interest and dividend income | 302,669 | 276,172 |
INTEREST EXPENSE | ||
Customer deposits | 23,672 | 19,297 |
Federal funds purchased and other short-term borrowings | 413 | 9 |
FHLB advances | 2,030 | 1,500 |
Repurchase agreements | 3,143 | 1,926 |
Long-term debt | 1,289 | 1,236 |
Total interest expense | 30,547 | 23,968 |
Net interest income before provision for credit losses | 272,122 | 252,204 |
Provision for credit losses | 7,068 | 1,440 |
Net interest income after provision for credit losses | 265,054 | 250,764 |
NONINTEREST INCOME | ||
Branch fees | 10,296 | 10,222 |
Letters of credit fees and foreign exchange income | 11,069 | 9,553 |
Ancillary loan fees | 4,982 | 3,577 |
Wealth management fees | 4,530 | 3,051 |
Derivative fees and other income | 2,506 | 2,543 |
Net gains on sales of loans | 2,754 | 1,927 |
Net gains on sales of available-for-sale investment securities | 2,474 | 3,842 |
Net gains on sales of fixed assets | 72,007 | 189 |
Other fees and operating income | 5,405 | 5,609 |
Total noninterest income | 116,023 | 40,513 |
NONINTEREST EXPENSE | ||
Compensation and employee benefits | 84,603 | 71,837 |
Occupancy and equipment expense | 15,640 | 14,415 |
Deposit insurance premiums and regulatory assessments | 5,929 | 5,418 |
Legal expense | 3,062 | 3,007 |
Data processing | 2,947 | 2,688 |
Consulting expense | 1,919 | 8,452 |
Deposit related expenses | 2,365 | 2,320 |
Computer software expense | 3,968 | 2,741 |
Other operating expense | 16,463 | 19,469 |
Amortization of tax credit and other investments | 14,360 | 14,155 |
Amortization of core deposit intangibles | 1,817 | 2,104 |
Total noninterest expense | 153,073 | 146,606 |
INCOME BEFORE INCOME TAXES | 228,004 | 144,671 |
INCOME TAX EXPENSE | 58,268 | 37,155 |
NET INCOME | $ 169,736 | $ 107,516 |
EARNINGS PER SHARE (“EPS”) | ||
BASIC (in dollars per share) | $ 1.18 | $ 0.75 |
DILUTED (in dollars per share) | $ 1.16 | $ 0.74 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||
BASIC (in shares) | 144,249 | 143,958 |
DILUTED (in shares) | 145,732 | 144,803 |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.2 | $ 0.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 169,736 | $ 107,516 |
Other comprehensive income, net of tax: | ||
Net change in unrealized gains on available-for-sale investment securities | 3,621 | 12,916 |
Foreign currency translation adjustments | 1,007 | (33) |
Other comprehensive income | 4,628 | 12,883 |
COMPREHENSIVE INCOME | $ 174,364 | $ 120,399 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Common Stock and Additional Paid-in Capital | Retained Earnings | Treasury Stock | AOCI, net of tax |
BALANCE (in shares) at Dec. 31, 2015 | 143,909,233 | |||||
Beginning balance at Dec. 31, 2015 | $ 3,122,950 | $ 1,701,459 | $ 1,872,594 | $ (436,162) | $ (14,941) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 107,516 | 107,516 | ||||
Other comprehensive income | 12,883 | 12,883 | ||||
Stock compensation costs | 4,575 | 4,575 | ||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 154,518 | |||||
Net activity of common stock pursuant to various stock compensation plans and agreements | (2,068) | 986 | (3,054) | |||
Common stock dividends | (29,075) | (29,075) | ||||
BALANCE (in shares) at Mar. 31, 2016 | 144,063,751 | |||||
Ending balance at Mar. 31, 2016 | 3,216,781 | 1,707,020 | 1,951,035 | (439,216) | (2,058) | |
BALANCE (in shares) at Dec. 31, 2016 | 144,167,451 | |||||
Beginning balance at Dec. 31, 2016 | 3,427,741 | 1,727,598 | 2,187,676 | (439,387) | (48,146) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 169,736 | 169,736 | ||||
Other comprehensive income | 4,628 | 4,628 | ||||
Stock compensation costs | 5,151 | 5,151 | ||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 294,115 | |||||
Net activity of common stock pursuant to various stock compensation plans and agreements | (12,154) | (12,154) | ||||
Common stock dividends | (29,148) | (29,148) | ||||
BALANCE (in shares) at Mar. 31, 2017 | 144,461,566 | |||||
Ending balance at Mar. 31, 2017 | $ 3,565,954 | $ 1,732,749 | $ 2,328,264 | $ (451,541) | $ (43,518) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 169,736 | $ 107,516 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 33,061 | 28,613 |
Accretion of discount and amortization of premiums, net | (4,931) | (15,855) |
Stock compensation costs | 5,151 | 4,575 |
Deferred tax expenses | 2,295 | 3,718 |
Provision for credit losses | 7,068 | 1,440 |
Net gains on sales of loans | (2,754) | (1,927) |
Net gains on sales of available-for-sale investment securities | (2,474) | (3,842) |
Net gains on sales of premises and equipment | (72,007) | (189) |
Originations and purchases of loans held-for-sale | (4,287) | (1,403) |
Proceeds from sales and paydowns/payoffs in loans held-for-sale | 4,773 | 2,229 |
Net change in accrued interest receivable and other assets | 93,501 | 2,057 |
Net change in accrued expenses and other liabilities | (37,791) | 57,957 |
Other net operating activities | (6,064) | (1,339) |
Total adjustments | 15,541 | 76,034 |
Net cash provided by operating activities | 185,277 | 183,550 |
Net (increase) decrease in: | ||
Loans held-for-investment | (1,085,449) | (165,726) |
Interest-bearing deposits with banks | 75,140 | (3,531) |
Investments in qualified affordable housing partnerships, tax credit and other investments | (38,354) | (8,390) |
Purchases of: | ||
Resale agreements | (200,000) | (1,000,000) |
Available-for-sale investment securities | (50,936) | (223,873) |
Loans held-for-investment | (147,242) | (239,399) |
Premises and equipment | (1,191) | (2,259) |
Proceeds from sale of: | ||
Available-for-sale investment securities | 302,656 | 652,753 |
Loans held-for-investment | 276,643 | 151,832 |
OREO | 3,958 | 384 |
Premises and equipment | 116,021 | 0 |
Paydowns and maturities of resale agreements | 400,000 | 1,000,000 |
Repayments, maturities and redemptions of available-for-sale investment securities | 125,006 | 158,268 |
Other net investing activities | 11,345 | 10,467 |
Net cash (used in) provided by investing activities | (212,403) | 330,526 |
Net increase in: | ||
Customer deposits | 646,188 | 1,116,272 |
Short-term borrowings | (18,524) | 9,962 |
Payments for: | ||
Repayment of FHLB advances | 0 | (700,000) |
Repayment of long-term debt | (5,000) | (5,000) |
Repurchase of vested shares due to employee tax liability | (12,154) | (3,054) |
Cash dividends on common stocks | (30,039) | (29,325) |
Other net financing activities | 0 | 986 |
Net cash provided by financing activities | 580,471 | 389,841 |
Effect of exchange rate changes on cash and cash equivalents | 2,795 | 493 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 556,140 | 904,410 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,878,503 | 1,360,887 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,434,643 | 2,265,297 |
Cash paid (received) during the period for: | ||
Interest | 30,361 | 24,309 |
Income tax refunds, net | (230) | (28,509) |
Noncash investing and financing activities: | ||
Loans held-for-investment transferred to loans held-for-sale, net | 278,024 | 308,722 |
Held-to-maturity investment security retained from securitization of loans | 0 | 160,135 |
Dividends payable | $ 891 | $ 250 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company”) is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The unaudited interim Consolidated Financial Statements in this Form 10-Q include the accounts of East West, East West Bank, East West Insurance Services, Inc., and various subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of March 31, 2017 , East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with FASB Accounting Standards Codification (“ASC”) Topic 810, the Trusts are not included on the Consolidated Financial Statements. The unaudited interim Consolidated Financial Statements presented in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”), applicable guidelines prescribed by regulatory authorities, and general practices in the banking industry, reflect all adjustments that, in the opinion of management, are necessary for fair statement of the interim period financial statements. Certain items on the Consolidated Financial Statements and notes for the prior years have been reclassified to conform to the current period presentation. 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 interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto, included in the Company’s 2016 Form 10-K. |
Current Accounting Developments
Current Accounting Developments | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Current Accounting Developments | Note 2 — Current Accounting Developments NEW ACCOUNTING PRONOUNCEMENTS ADOPTED In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not be considered a termination of the derivative instrument or a change in a critical term of the hedging relationship provided that all other hedge accounting criteria in ASC 815 continue to be met. This clarification applies to both cash flow and fair value hedging relationships. The Company adopted this guidance prospectively in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments which requires an entity to use a four step decision model when assessing contingent call (put) options that can accelerate the payment of principal on debt instruments to determine whether they are clearly and closely related to their debt hosts. The Company adopted this guidance on a modified retrospective basis in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-07, Investments — Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting, to eliminate the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. The amendments in ASU 2016-07 also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in AOCI at the date the investment becomes qualified for use of the equity method. The Company adopted this guidance prospectively in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification in the statement of cash flows. The Company adopted ASU 2016-09 in the first quarter of 2017. The changes that impacted the Company included a requirement that excess tax benefits and deficiencies be recognized as a component of Income tax expense on the Consolidated Statements of Income rather than Additional paid-in capital on the Consolidated Statements of Changes in Stockholders’ Equity as required in the previous guidance. Net excess tax benefits for restricted stock units (“RSUs”) of approximately $4.4 million were recognized by the Company as a component of Income tax expense on the Consolidated Statements of Income during the first quarter of 2017. This change also removes the impact of the excess tax benefits and deficiencies from the calculation of diluted EPS. In addition, ASU 2016-09 no longer requires a presentation of excess tax benefits and deficiencies as both an operating outflow and financing inflow on the Consolidated Statements of Cash Flows. Instead, excess tax benefits and deficiencies are recorded along with other income tax cash flows as an operating activity on the Consolidated Statements of Cash Flows. These changes were applied on a prospective basis. The adoption of ASU 2016-09 will result in increased volatility to the Company’s income tax expense but is not expected to have a material impact on the Consolidated Balance Sheets or the Consolidated Statements of Changes in Stockholders’ Equity. The income tax expense volatility is dependent on the Company’s stock price on the dates the RSUs vest, which occur primarily in the first quarter of each year. The Company has elected to retain its existing accounting policy election to estimate award forfeitures. 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. ASU 2014-09 clarifies the principles for recognizing revenue and replaces nearly all existing revenue recognition guidance in U.S. GAAP. Quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. ASU 2014-09 as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, is effective for interim and annual periods beginning after December 15, 2017 and is applied on either a modified retrospective or full retrospective basis. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. The Company’s revenue is mainly comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income, as well as other revenues from financial instruments such as loans, leases, securities and derivatives. The Company has conducted a comprehensive scoping exercise to determine the revenue streams that are in the scope of these updates. Preliminary results indicate that certain noninterest income financial statement line items may contain revenue streams that are in the scope of these updates. The Company’s next implementation efforts include identifying contracts within the scope of the new guidance and assessing the related noninterest income revenues to determine if any accounting or internal control changes will be required under the provisions of the new guidance. The Company continues to evaluate the impact of ASU 2014-09 on our noninterest income and on our presentation and disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires equity investments, except those accounted for under the equity method of accounting or consolidated, to be measured at fair value with changes recognized in net income. If there is no readily determinable fair value, the guidance allows entities the ability to measure investments at cost less impairment, whereby impairment is based on a qualitative assessment. The guidance eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost and changes the presentation of financial assets and financial liabilities on the Consolidated Balance Sheets or in the footnotes. If an entity has elected the fair value option to measure liabilities, the new accounting guidance requires the portion of the change in the fair value of a liability resulting from credit risk to be presented in Other Comprehensive Income . The Company has not elected to measure any of its liabilities at fair value, and therefore, this aspect of the guidance is not applicable to us. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is not permitted except for certain specific changes under the fair value option guidance. To adopt the amendments, the Company is required to make a cumulative effect adjustment to the Consolidated Balance Sheets as of the beginning of the fiscal year in which the guidance is effective. However, the amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the adoption date. The Company is currently evaluating the impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability in the accounting for lease transactions. ASU 2016-02 requires lessees to recognize all leases longer than 12 months on the Consolidated Balance Sheet as lease assets and lease liabilities and provide quantitative and qualitative disclosures regarding key information about leasing arrangements. For short-term leases with a term of 12 months or less, lessees can make a policy election not to recognize lease assets and lease liabilities. Lessor accounting is largely unchanged. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018 with modified retrospective application. Early adoption is permitted. The Company expects the adoption of ASU 2016-02 to result in additional assets and liabilities, as the Company will be required to recognize operating leases on its Consolidated Balance Sheets. The Company does not expect a material impact to its recognition of operating lease expense on its Consolidated Statements of Income. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to introduce a new approach based on expected losses to estimate credit losses on certain types of financial instruments, which modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new “expected credit loss” impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, available-for-sale and held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. For available-for-sale debt securities with unrealized losses, ASU 2016-13 does not change the measurement method of credit losses, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loans and lease losses and requires disclosure of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination (i.e., by vintage year). ASU 2016-13 is effective for the fiscal years beginning after December 15, 2019, including interim periods within those fiscal years using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Earlier adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While the Company is still evaluating the impact on its Consolidated Financial Statements, the Company expects that ASU 2016-13 may result in an increase in the allowance for credit losses due to the following factors: 1) the allowance for credit losses provides for expected credit losses over the remaining expected life of the loan portfolio, and will consider expected future changes in macroeconomic conditions; 2) the nonaccretable difference on the purchased credit impaired (“PCI”) loans will be recognized as an allowance, offset by an increase in the carrying value of the PCI loans; and 3) an allowance may be established for estimated credit losses on available-for-sale and held-to-maturity debt securities. The amount of the increase will be impacted by the portfolio composition and quality, as well as the economic conditions and forecasts as of the adoption date. The Company has began its implementation efforts by identifying key interpretive issues, and assessing its processes and identifying the system requirements against the new guidance to determine what modifications may be required. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to provide guidance on the classification of certain cash receipts and payments on the Consolidated Statements of Cash Flows in order to reduce diversity in practice. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The guidance requires application using a retrospective transition method. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires the Company to include in its cash and cash equivalents balances on the Statements of Cash Flows those amounts that are deemed to be restricted cash and restricted cash equivalents. In addition, the Company is required to explain the changes in the combined total of restricted and unrestricted balances on the Statements of Cash Flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, where the guidance should be applied using a retrospective transition method to each period presented. Early adoption is permitted. The Company is currently evaluating the impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment to simplify the accounting for goodwill impairment. An entity will no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests with measurement dates after January 1, 2017. The Company is currently evaluating the impact on its Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities , which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. Therefore, entities will no longer recognize a loss in earnings upon the debtor’s exercise of a call on a purchased callable debt security held at a premium. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized as an adjustment of yield over the contractual life (to maturity) of the instrument. ASU 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. Entities must apply a modified retrospective approach, with the cumulative effect adjustment recognized to retained earnings as of the beginning of the period of adoption. Entities are also required to provide disclosures about a change in accounting principle in the period of adoption. The Company is currently evaluating the impact on its Consolidated Financial Statements. |
Disposition of Commercial Prope
Disposition of Commercial Property | 3 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
Disposition of Commercial Property | Note 3 — Disposition of Commercial Property In the first quarter of 2017, the Company completed the sale and leaseback of a commercial property in San Francisco, California for a sale price of $120.6 million and entered into a lease agreement for part of the property, including a retail branch and office facilities. The total pre-tax profit from the sale was $85.4 million with $71.7 million recognized in the first quarter of 2017 and $13.7 million to be deferred over the term of the lease agreement. The first quarter 2017 diluted EPS impact from the sale of the commercial property was $0.28 per share, net of tax. |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
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. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy noted below is based on the quality and reliability of the information used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices available in active markets and the lowest priority to data lacking transparency. The fair value of the Company’s assets and liabilities is 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. The Company’s assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurements. The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 : Assets (Liabilities) Measured at Fair Value on a Recurring Basis ($ in thousands) Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-sale investment securities: U.S. Treasury securities $ 700,860 $ 700,860 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 180,863 — 180,863 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 264,522 — 264,522 — Residential mortgage-backed securities 1,179,755 — 1,179,755 — Municipal securities 147,069 — 147,069 — Non-agency residential mortgage-backed securities: Investment grade 10,730 — 10,730 — Corporate debt securities: Investment grade 2,254 — 2,254 — Non-investment grade 9,184 — 9,184 — Foreign bonds: Investment grade 425,868 — 425,868 — Other securities 40,929 31,075 9,854 — Total available-for-sale investment securities $ 2,962,034 $ 731,935 $ 2,230,099 $ — Derivative assets: Interest rate swaps and options $ 61,586 $ — $ 61,586 $ — Foreign exchange contracts $ 8,220 $ — $ 8,220 $ — Credit risk participation agreements (“RPAs”) $ 3 $ — $ 3 $ — Derivative liabilities: Interest rate swaps on certificates of deposit $ (6,793 ) $ — $ (6,793 ) $ — Interest rate swaps and options $ (60,204 ) $ — $ (60,204 ) $ — Foreign exchange contracts $ (7,357 ) $ — $ (7,357 ) $ — RPAs $ (2 ) $ — $ (2 ) $ — Assets (Liabilities) Measured at Fair Value on a Recurring Basis ($ in thousands) Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Available-for-sale investment securities: U.S. Treasury securities $ 720,479 $ 720,479 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 274,866 — 274,866 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 266,799 — 266,799 — Residential mortgage-backed securities 1,258,747 — 1,258,747 — Municipal securities 147,654 — 147,654 — Non-agency residential mortgage-backed securities: Investment grade 11,477 — 11,477 — Corporate debt securities: Investment grade 222,377 — 222,377 — Non-investment grade 9,173 — 9,173 — Foreign bonds: Investment grade 383,894 — 383,894 — Other securities 40,329 30,991 9,338 — Total available-for-sale investment securities $ 3,335,795 $ 751,470 $ 2,584,325 $ — Derivative assets: Foreign currency forward contracts $ 4,325 $ — $ 4,325 $ — Interest rate swaps and options $ 67,578 $ — $ 67,578 $ — Foreign exchange contracts $ 11,874 $ — $ 11,874 $ — RPAs $ 3 $ — $ 3 $ — Derivative liabilities: Interest rate swaps on certificates of deposit $ (5,976 ) $ — $ (5,976 ) $ — Interest rate swaps and options $ (65,131 ) $ — $ (65,131 ) $ — Foreign exchange contracts $ (11,213 ) $ — $ (11,213 ) $ — RPAs $ (3 ) $ — $ (3 ) $ — 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. There were no assets or liabilities measured using significant unobservable inputs (Level 3) on a recurring basis as of March 31, 2017 and December 31, 2016, and during the three months ended March 31, 2017 and 2016 . 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 become unobservable or observable 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. There were no transfers of assets and liabilities measured on a recurring basis in and out of Level 1, Level 2 and Level 3 during the three months ended March 31, 2017 and 2016 . Assets measured at fair value on a nonrecurring basis include certain non-purchased credit impaired (“non-PCI”) loans that were impaired, OREO and loans held-for-sale. These fair value adjustments result from impairments recognized during the period on certain non-PCI impaired loans, application of fair value less cost to sell on OREO and application of the lower of cost or fair value on loans held-for-sale. The following tables present the carrying amounts of assets included on the Consolidated Balance Sheets that had fair value changes measured on a nonrecurring basis: Assets Measured at Fair Value on a Nonrecurring Basis ($ in thousands) Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Non-PCI impaired loans: Commercial real estate (“CRE”) $ 10,042 $ — $ — $ 10,042 Commercial and industrial (“C&I”) 47,829 — — 47,829 Residential 2,522 — — 2,522 Consumer 610 — — 610 Total non-PCI impaired loans $ 61,003 $ — $ — $ 61,003 OREO $ 70 $ — $ — $ 70 Assets Measured at Fair Value on a Nonrecurring Basis ($ in thousands) Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Non-PCI impaired loans: CRE $ 14,908 $ — $ — $ 14,908 C&I 52,172 — — 52,172 Residential 2,464 — — 2,464 Consumer 610 — — 610 Total non-PCI impaired loans $ 70,154 $ — $ — $ 70,154 OREO $ 345 $ — $ — $ 345 Loans held-for-sale $ 22,703 $ — $ 22,703 $ — The following table presents the fair value adjustments of assets measured on a nonrecurring basis recognized during the three months ended and which were included on the Consolidated Balance Sheets as of March 31, 2017 and 2016 : Three Months Ended March 31, ($ in thousands) 2017 2016 Non-PCI impaired loans: CRE $ (64 ) $ 2,178 C&I 32 (1,935 ) Residential 82 (83 ) Consumer (1 ) 3 Total non-PCI impaired loans $ 49 $ 163 OREO $ (285 ) $ (461 ) Loans held-for-sale $ — $ (2,351 ) The following table presents the quantitative information about the significant unobservable inputs used in the valuation of assets measured on a nonrecurring basis classified as Level 3 as of March 31, 2017 and December 31, 2016 : ($ in thousands) Fair Value Valuation Unobservable Range of Inputs Weighted March 31, 2017 Non-PCI impaired loans $ 31,453 Discounted cash flow Discount 0% — 74% 11% $ 29,550 Market comparables Discount (1) 0% — 100% 7% OREO $ 70 Appraisal Selling cost 8% 8% December 31, 2016 Non-PCI impaired loans $ 31,835 Discounted cash flow Discount 0% — 62% 7% $ 38,319 Market comparables Discount (1) 0% — 100% 18% OREO $ 345 Appraisal Selling cost 8% 8% (1) Discount is adjusted for factors such as liquidation cost of collateral and selling cost. 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, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 2,434,643 $ 2,434,643 $ — $ — $ 2,434,643 Interest-bearing deposits with banks $ 249,849 $ — $ 249,849 $ — $ 249,849 Resale agreements (1) $ 1,650,000 $ — $ 1,628,839 $ — $ 1,628,839 Held-to-maturity investment security $ 132,497 $ — $ — $ 133,656 $ 133,656 Loans held-for-sale $ 28,931 $ — $ 28,931 $ — $ 28,931 Loans held-for-investment, net $ 26,198,198 $ — $ — $ 25,825,039 $ 25,825,039 Restricted equity securities $ 73,019 $ — $ 73,019 $ — $ 73,019 Accrued interest receivable $ 102,067 $ — $ 102,067 $ — $ 102,067 Financial liabilities: Customer deposits: Demand, interest checking, savings and money market deposits $ 24,700,811 $ — $ 24,700,811 $ — $ 24,700,811 Time deposits $ 5,842,164 $ — $ 5,837,924 $ — $ 5,837,924 Short-term borrowings $ 42,023 $ — $ 42,023 $ — $ 42,023 FHLB advances $ 322,196 $ — $ 336,619 $ — $ 336,619 Repurchase agreements (1) $ 200,000 $ — $ 260,545 $ — $ 260,545 Long-term debt $ 181,388 $ — $ 182,502 $ — $ 182,502 Accrued interest payable $ 9,626 $ — $ 9,626 $ — $ 9,626 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45, Balance Sheet Offsetting . As of March 31, 2017 , $250.0 million out of $450.0 million of repurchase agreements was eligible for netting against resale agreements. ($ in thousands) December 31, 2016 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 1,878,503 $ 1,878,503 $ — $ — $ 1,878,503 Interest-bearing deposits with banks $ 323,148 $ — $ 323,148 $ — $ 323,148 Resale agreements (1) $ 2,000,000 $ — $ 1,980,457 $ — $ 1,980,457 Held-to-maturity investment security $ 143,971 $ — $ — $ 144,593 $ 144,593 Loans held-for-sale $ 23,076 $ — $ 23,076 $ — $ 23,076 Loans held-for-investment, net $ 25,242,619 $ — $ — $ 24,915,143 $ 24,915,143 Restricted equity securities $ 72,775 $ — $ 72,775 $ — $ 72,775 Accrued interest receivable $ 100,524 $ — $ 100,524 $ — $ 100,524 Financial liabilities: Customer deposits: Demand, interest checking, savings and money market deposits $ 24,275,714 $ — $ 24,275,714 $ — $ 24,275,714 Time deposits $ 5,615,269 $ — $ 5,611,746 $ — $ 5,611,746 Short-term borrowings $ 60,050 $ — $ 60,050 $ — $ 60,050 FHLB advances $ 321,643 $ — $ 334,859 $ — $ 334,859 Repurchase agreements (1) $ 350,000 $ — $ 411,368 $ — $ 411,368 Long-term debt $ 186,327 $ — $ 186,670 $ — $ 186,670 Accrued interest payable $ 9,440 $ — $ 9,440 $ — $ 9,440 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45, Balance Sheet Offsetting . As of December 31, 2016 , $100.0 million out of $450.0 million of repurchase agreements was eligible for netting against resale agreements. The following is a description of the valuation methodologies and significant assumptions used to measure financial assets and liabilities at fair value and to estimate fair value for certain financial instruments not recorded at fair value. The description also includes the level of the fair value hierarchy in which the assets or liabilities are classified. Cash and Cash Equivalents — The carrying amount approximates fair value due to the short-term nature of these instruments. As such, the estimated fair value is classified as Level 1. Interest-bearing Deposits with Banks — The fair value of interest-bearing deposits with banks generally approximates their book value due to their short maturities. In addition, due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Resale Agreements — The fair value of resale agreements is estimated by discounting the cash flows based on expected maturities or repricing dates utilizing estimated market discount rates. In addition, due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Held-to-Maturity Investment Security — The fair value of the held-to-maturity investment security is determined by the discounted cash flow approach. The discount rate is derived from conditional prepayment rate, constant default rate, loss severity and discount margin. Due to the significant unobservable inputs, the held-to-maturity investment security is classified as Level 3. Available-for-Sale Investment Securities — When available, the Company uses quoted market prices to determine the fair value of available-for-sale investment securities, which are classified as Level 1. Level 1 available-for-sale investment securities are comprised primarily of 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 the average 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 were mainly comprised of C&I loans as of March 31, 2017 and consumer loans as of December 31, 2016. 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 fair value of non-PCI impaired loans is measured using the market comparables or discounted cash flow techniques. 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 generally based on third party appraisals (or internal evaluation if third party appraisal is not required by regulations) which utilize one or more valuation techniques (income, market and/or cost approaches). All third party appraisals and evaluations are reviewed and validated by independent appraisers or the Company’s appraisal department staffed by licensed appraisers and/or experienced real estate reviewers. The third party appraisals are ordered through the appraisal department (except for one-to-four unit residential appraisals which are typically ordered through an approved appraisal management company or an approved residential appraiser) at the inception, renewal or, for all real estate related loans, upon the occurrence of any event causing a downgrade to an adverse grade (i.e., “substandard” or “doubtful”). Updated appraisals and evaluations are generally obtained within the last 12 months . The Company increases the frequency of obtaining updated appraisals for adversely graded credits when declining market conditions exist. All appraisals include an “as is” market value without conditions as of the effective date of the appraisal. For certain impaired loans, the Company utilizes the discounted cash flow approach and applies a discount derived from historical data. The significant unobservable inputs used in the fair value measurement of non-PCI impaired loans are discounts applied based on the liquidation cost of collateral and selling cost. On a quarterly basis, all nonperforming assets are reviewed to assess whether the current carrying value is supported by the collateral or cash flow and to ensure that the current carrying value is appropriate. Non-PCI impaired loans are classified as Level 3. Loans Held-for-Investment, net — The fair value of loans held-for-investment other than Non-PCI impaired 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 that reflect the 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 adjustment of credit for such loans. Due to the unobservable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 3. Other Real Estate Owned — The Company’s OREO represents properties acquired through foreclosure or through full or partial satisfaction of loans held-for-investment, 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. Please 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. On a monthly basis, the current fair market value of each OREO property is reviewed to ensure that the current carrying value is appropriate. The Company uses the market comparable 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. Restricted Equity Securities — Restricted equity securities are comprised of FHLB stock and Federal Reserve Bank stock. The carrying amounts of the Company’s restricted equity securities 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. Interest Rate Swaps and Options — The Company enters into interest rate swap and option contracts with institutional counterparties to hedge against interest rate swap and option 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 option 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 the interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash receipts (or payments) are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. The fair value of the interest rate options, consisting of floors and caps, is determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates fell below (rise above) the strike rate of the floors (caps). The variable interest rates used in the calculation of projected receipts on the floor (cap) are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. In addition, to comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements of its derivatives. The credit valuation adjustments associated with the Company’s derivatives utilize Level 3 inputs, model-derived credit spreads. As of March 31, 2017 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of these interest rate contracts’ positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative portfolios. As a result, the Company classifies these derivative valuations in Level 2 of the fair value hierarchy due to the observable nature of the significant inputs utilized. 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 because the contracts with the customer and the institutional party mirror each other. The fair value is determined at each reporting period based on changes in the foreign exchange rate. These are over-the-counter contracts where quoted market prices are not readily available. Valuation is measured using conventional valuation methodologies with observable market data. Valuation depends on the type of derivative and the nature of the underlying rate and contractual terms including period of maturity, price and index upon which the derivative’s value is based. Key inputs include foreign exchange rates (spot and/or forward rates), volatility of currencies, and the correlation of such inputs. The counterparties’ credit risks are considered nominal and resulted in no adjustments to the valuation of the foreign exchange contracts. Due to the observable nature of the inputs used in deriving the fair value of these contracts, the valuation of foreign contracts is classified as Level 2. As of March 31, 2017, foreign exchange forward contracts used to economically hedge the Company’s net investment in East West Bank (China) Limited, a non-U.S. Dollar (“USD”) functional currency subsidiary in China are included in this caption. See Foreign Currency Forward Contracts in the section below for details on valuation methodologies and significant assumptions. Customer Deposits — The fair value of deposits with no stated maturity, such as demand deposits, interest checking, savings and money market deposits, approximates the carrying amount as the amounts are payable on demand at the measurement 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 current market rates for instruments with similar maturities. Due to the observable nature of the inputs used in deriving the estimated fair value, time deposits are classified as Level 2. Federal Home Loan Bank 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 value, these instruments are classified as Level 2. Repurchase Agreements — The fair value of the repurchase agreements is 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 value, 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. Foreign Currency Forward Contracts — During the three months ended December 31, 2015, the Company began entering into foreign currency forward contracts to hedge its net investment in East West Bank (China) Limited. Previously, the foreign currency forward contracts or a proportion of the forward contracts were eligible for hedge accounting. During the three months ended March 31, 2017, the foreign currency forward contracts were dedesignated when the hedge relationship ceased to be highly effective. The Company continues to economically hedge its foreign currency exposure resulting from its China subsidiary and the foreign exchange forward contracts are included as part of the “Foreign Exchange Contracts” caption as of March 31, 2017. The fair value of foreign currency forward contracts is valued by comparing the contracted foreign exchange rate to the current market exchange rate. Inputs include spot rates, forward rates, and the interest rate curve of the domestic and foreign currency. Interest rate forward curves are used to determine which forward rate pertains to a specific maturity. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Credit Risk Participation Agreements — The Company enters into RPAs, under which the Company assumes its pro-rata share of the credit exposure associated with the borrower’s performance related to interest rate derivative contracts. The fair value of RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. The credit spreads of the borrowers used in the calculation are estimated by the Company based on current market conditions, including consideration of current borrowing spreads for similar customers and transactions, review of existing collateralization or other credit enhancements, and changes in credit sector and entity-specific credit information. The Company has determined that the majority of the inputs used to value RPAs fall within Level 2 of the fair value hierarchy. 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. |
Securities Purchased under Resa
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements | 3 Months Ended |
Mar. 31, 2017 | |
Resale and Repurchase Agreements [Abstract] | |
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements | Note 5 — Securities Purchased under Resale Agreements and Sold under Repurchase Agreements Resale Agreements Resale agreements are recorded at the balances 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 $1.90 billion and $2.10 billion as of March 31, 2017 and December 31, 2016 , respectively. The weighted average interest rates were 2.15% and 1.84% as of March 31, 2017 and December 31, 2016 , respectively. Repurchase Agreements Long-term repurchase agreements are accounted for as collateralized financing transactions and recorded at the balances at which the securities were sold. The collateral for the repurchase agreements is comprised of U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, U.S. Treasury securities, and U.S. government agency and U.S. government sponsored enterprise debt securities. The Company may have to provide additional collateral for the repurchase agreements, as necessary. Gross repurchase agreements were $450.0 million as of both March 31, 2017 and December 31, 2016 , respectively. The weighted average interest rates were 3.30% and 3.15% as of March 31, 2017 and December 31, 2016 , respectively. Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that provide the Company, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheets when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45. Collateral accepted includes securities that are not recognized on the Consolidated Balance Sheets. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheets against the related collateralized liability. Collateral accepted or pledged in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, but is usually delivered to and held by the third party trustees. The collateral amounts received/posted are limited for presentation purposes to the related recognized asset/liability balance for each counterparty, and accordingly, do not include excess collateral received/pledged. The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 : ($ in thousands) As of March 31, 2017 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Financial Collateral Net Amount Resale agreements $ 1,900,000 $ (250,000 ) $ 1,650,000 $ (150,000 ) (1) $ (1,488,939 ) (2) $ 11,061 Gross Amounts Gross Amounts Net Amounts of on the Gross Amounts Not Offset on the Liabilities Financial Collateral Net Amount Repurchase agreements $ 450,000 $ (250,000 ) $ 200,000 $ (150,000 ) (1) $ (50,000 ) (3) $ — ($ in thousands) As of December 31, 2016 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Financial Collateral Net Amount Resale agreements $ 2,100,000 $ (100,000 ) $ 2,000,000 $ (150,000 ) (1) $ (1,839,120 ) (2) $ 10,880 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Liabilities Financial Collateral Net Amount Repurchase agreements $ 450,000 $ (100,000 ) $ 350,000 $ (150,000 ) (1) $ (200,000 ) (3) $ — (1) Represents financial instruments subject to enforceable master netting arrangements that are not eligible to be offset under ASC 210-20-45 but would be eligible for offsetting to the extent that 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. In addition to the amounts included in the tables above, the Company also has balance sheet netting related to derivatives, refer to Note 7 — Derivatives to the Consolidated Financial Statements for additional information. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 6 — Securities The following tables present as of March 31, 2017 and December 31, 2016 the amortized cost, gross unrealized gains and losses and fair value by major categories of available-for-sale investment securities, which are carried at fair value, and the held-to-maturity investment security, which is carried at amortized cost: As of March 31, 2017 ($ in thousands) Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 709,332 $ 10 $ (8,482 ) $ 700,860 U.S. government agency and U.S. government sponsored enterprise debt securities 183,605 134 (2,876 ) 180,863 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 271,025 337 (6,840 ) 264,522 Residential mortgage-backed securities 1,185,382 3,855 (9,482 ) 1,179,755 Municipal securities 146,559 1,909 (1,399 ) 147,069 Non-agency residential mortgage-backed securities: Investment grade (1) 10,837 — (107 ) 10,730 Corporate debt securities: Investment grade (1) 2,476 — (222 ) 2,254 Non-investment grade (1) 10,191 — (1,007 ) 9,184 Foreign bonds: Investment grade (1) (2) 445,433 49 (19,614 ) 425,868 Other securities 40,593 853 (517 ) 40,929 Total available-for-sale investment securities $ 3,005,433 $ 7,147 $ (50,546 ) $ 2,962,034 Held-to-maturity investment security: Non-agency commercial mortgage-backed security $ 132,497 $ 1,159 $ — $ 133,656 Total investment securities $ 3,137,930 $ 8,306 $ (50,546 ) $ 3,095,690 As of December 31, 2016 ($ in thousands) Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 730,287 $ 21 $ (9,829 ) $ 720,479 U.S. government agency and U.S. government sponsored enterprise debt securities 277,891 224 (3,249 ) 274,866 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 272,672 345 (6,218 ) 266,799 Residential mortgage-backed securities 1,266,372 3,924 (11,549 ) 1,258,747 Municipal securities 148,302 1,252 (1,900 ) 147,654 Non-agency residential mortgage-backed securities: Investment grade (1) 11,592 — (115 ) 11,477 Corporate debt securities: Investment grade (1) 222,190 562 (375 ) 222,377 Non-investment grade (1) 10,191 — (1,018 ) 9,173 Foreign bonds: Investment grade (1) (2) 405,443 30 (21,579 ) 383,894 Other securities 40,501 337 (509 ) 40,329 Total available-for-sale investment securities $ 3,385,441 $ 6,695 $ (56,341 ) $ 3,335,795 Held-to-maturity investment security: Non-agency commercial mortgage-backed security $ 143,971 $ 622 $ — $ 144,593 Total investment securities $ 3,529,412 $ 7,317 $ (56,341 ) $ 3,480,388 (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. Classifications are based on the lower of the credit ratings by S&P or Moody’s. (2) Fair values of foreign bonds include $395.5 million and $353.6 million of multilateral development bank bonds as of March 31, 2017 and December 31, 2016 , respectively. Unrealized Losses The following tables present as of March 31, 2017 and December 31, 2016 the Company’s investment portfolio’s gross unrealized losses and related fair values, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: As of March 31, 2017 ($ in thousands) Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale investment securities: U.S. Treasury securities $ 680,801 $ (8,482 ) $ — $ — $ 680,801 $ (8,482 ) U.S. government agency and U.S. government sponsored enterprise debt securities 154,847 (2,876 ) — — 154,847 (2,876 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 212,706 (5,879 ) 35,193 (961 ) 247,899 (6,840 ) Residential mortgage-backed securities 598,526 (8,151 ) 132,328 (1,331 ) 730,854 (9,482 ) Municipal securities 45,327 (1,006 ) 6,925 (393 ) 52,252 (1,399 ) Non-agency residential mortgage-backed securities: Investment grade 10,729 (107 ) — — 10,729 (107 ) Corporate debt securities: Investment grade — — 2,254 (222 ) 2,254 (222 ) Non-investment grade — — 9,184 (1,007 ) 9,184 (1,007 ) Foreign bonds: Investment grade 380,530 (19,409 ) 9,795 (205 ) 390,325 (19,614 ) Other securities 31,013 (517 ) — — 31,013 (517 ) Total available-for-sale investment securities $ 2,114,479 $ (46,427 ) $ 195,679 $ (4,119 ) $ 2,310,158 $ (50,546 ) Held-to-maturity investment security: Non-agency commercial mortgage-backed security $ — $ — $ — $ — $ — $ — Total investment securities $ 2,114,479 $ (46,427 ) $ 195,679 $ (4,119 ) $ 2,310,158 $ (50,546 ) As of December 31, 2016 ($ in thousands) Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale investment securities: U.S. Treasury securities $ 670,268 $ (9,829 ) $ — $ — $ 670,268 $ (9,829 ) U.S. government agency and U.S. government sponsored enterprise debt securities 203,901 (3,249 ) — — 203,901 (3,249 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 202,106 (5,452 ) 29,201 (766 ) 231,307 (6,218 ) Residential mortgage-backed securities 629,324 (9,594 ) 119,603 (1,955 ) 748,927 (11,549 ) Municipal securities 57,655 (1,699 ) 2,692 (201 ) 60,347 (1,900 ) Non-agency residential mortgage-backed securities: Investment grade 5,033 (101 ) 6,444 (14 ) 11,477 (115 ) Corporate debt securities: Investment grade — — 71,667 (375 ) 71,667 (375 ) Non-investment grade — — 9,173 (1,018 ) 9,173 (1,018 ) Foreign bonds: Investment grade 363,618 (21,327 ) 14,258 (252 ) 377,876 (21,579 ) Other securities 30,991 (509 ) — — 30,991 (509 ) Total available-for-sale investment securities $ 2,162,896 $ (51,760 ) $ 253,038 $ (4,581 ) $ 2,415,934 $ (56,341 ) Held-to-maturity investment security: Non-agency commercial mortgage-backed security $ — $ — $ — $ — $ — $ — Total investment securities $ 2,162,896 $ (51,760 ) $ 253,038 $ (4,581 ) $ 2,415,934 $ (56,341 ) For each reporting period, the Company examines all individual securities that are in an unrealized loss position for OTTI. For discussion of the factors and criteria the Company uses in analyzing securities for OTTI, see Note 1 — Summary of Significant Accounting Policies — Available-for-Sale Investment Securities t o the Consolidated Financial Statements of the Company’s 2016 Form 10-K. The unrealized losses were primarily attributed to the yield curve movement, in addition to widened liquidity and credit spreads. 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. The Company believes that the gross unrealized losses detailed in the previous tables are temporary and not due to reasons of credit quality. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, no impairment loss has been recorded on the Company’s Consolidated Statements of Income for the three months ended March 31, 2017 and 2016 . As of March 31, 2017 , the Company had 163 available-for-sale investment securities in an unrealized loss position with no credit impairment, primarily comprised of 13 investment grade foreign bonds, 83 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities and 27 U.S. Treasury securities. In comparison, the Company had 170 available-for-sale investment securities in an unrealized loss position with no credit impairment, primarily comprised of 13 investment grade foreign bonds, 82 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities and 26 U.S. Treasury securities as of December 31, 2016 . During the first quarter of 2016, the Company obtained a non-agency mortgage-backed investment security, through the securitization of multifamily real estate loans, which was classified as held-to-maturity and recorded at amortized cost. The Company has the intent and ability to hold the security to maturity. OTTI No OTTI credit losses were recognized for the three months ended March 31, 2017 and 2016 . Realized Gains and Losses The following table presents the proceeds, gross realized gains and losses, and tax expense related to the sales of available-for-sale investment securities for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Proceeds from sales $ 302,656 $ 652,753 Gross realized gains $ 2,474 $ 3,967 Gross realized losses $ — $ 125 Related tax expense $ 1,040 $ 1,616 Scheduled Maturities of Investment Securities The following table presents the scheduled maturities of available-for-sale investment securities as of March 31, 2017 : ($ in thousands) Amortized Cost Estimated Fair Value Due within one year $ 519,223 $ 503,271 Due after one year through five years 878,436 867,870 Due after five years through ten years 241,665 236,183 Due after ten years 1,366,109 1,354,710 Total available-for-sale investment securities $ 3,005,433 $ 2,962,034 The following table presents the scheduled maturity of the held-to-maturity investment security as of March 31, 2017 : ($ in thousands) Amortized Cost Estimated Fair Value Due after ten years $ 132,497 $ 133,656 Actual maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to prepay obligations. In addition, factors such as prepayments and interest rates may affect the yields on the carrying values of mortgage-backed securities. Available-for-sale investment securities with fair values of $640.9 million and $767.4 million as of March 31, 2017 and December 31, 2016 , respectively, were pledged to secure public deposits, repurchase agreements, the Federal Reserve Bank’s discount window, and for other purposes required or permitted by law. Restricted Equity Securities Restricted equity securities include stock of the Federal Reserve Bank and the Federal Home Loan Bank. Restricted equity securities are carried at cost as these securities do not have a readily determined fair value because ownership of these shares is restricted and they lack a market. The following table presents the restricted equity securities as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Federal Reserve Bank stock $ 17,250 $ 17,250 FHLB stock 55,769 55,525 Total $ 73,019 $ 72,775 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 7 — Derivatives The Company uses derivatives to manage exposure to market risk, including interest rate risk and foreign currency risk and to assist customers with their risk management objectives. The Company’s goal is to manage interest rate sensitivity and volatility so that movements in interest rates are not significant to earnings or capital. The Company also uses foreign exchange contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities, as well as the Company’s investment in its China subsidiary, East West Bank (China) Limited. The Company recognizes all derivatives on the Consolidated Balance Sheets at fair value. While the Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, other derivatives consist of economic hedges. For additional information on the Company’s derivatives and hedging activities, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2016 Form 10-K. The following table presents the total notional and fair values of the Company’s derivatives as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Derivative Assets (1) Derivative Liabilities (1) Derivative Assets (1) Derivative Liabilities (1) Derivatives designated as hedging instruments: Interest rate swaps on certificates of deposit $ 48,365 $ — $ 6,793 $ 48,365 $ — $ 5,976 Foreign currency forward contracts — — — 83,026 4,325 — Total derivatives designated as hedging instruments $ 48,365 $ — $ 6,793 $ 131,391 $ 4,325 $ 5,976 Derivatives not designated as hedging instruments: Interest rate swaps and options $ 7,831,456 $ 61,586 $ 60,204 $ 7,668,482 $ 67,578 $ 65,131 Foreign exchange contracts 1,267,282 8,220 7,357 767,764 11,874 11,213 RPAs 71,396 3 2 71,414 3 3 Total derivatives not designated as hedging instruments $ 9,170,134 $ 69,809 $ 67,563 $ 8,507,660 $ 79,455 $ 76,347 (1) Derivative assets and derivative liabilities are included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets. Derivatives Designated as Hedging Instruments Interest Rate Swaps on Certificates of Deposit — The Company is exposed to changes in the fair value of certain fixed rate certificates of deposit due to changes in the benchmark interest rate, London Interbank Offered Rate. 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. As of each of March 31, 2017 and December 31, 2016 , the total notional amount of the interest rate swaps on certificates of deposit was $48.4 million . The fair value liabilities of the interest rate swaps were $6.8 million and $6.0 million as of March 31, 2017 and December 31, 2016 , respectively. The following table presents the net (losses) gains recognized on the Consolidated Statements of Income related to the derivatives designated as fair value hedges for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 (Losses) gains recorded in interest expense: Recognized on interest rate swaps $ (817 ) $ 4,229 Recognized on certificates of deposit $ 688 $ (3,356 ) Net Investment Hedges — ASC 830-20, Foreign Currency Matters — Foreign Currency Transactions and ASC 815, Derivatives and Hedging, allow hedging of the foreign currency risk of a net investment in a foreign operation. During the fourth quarter of 2015, the Company began entering into foreign currency forward contracts to hedge its investment in East West Bank (China) Limited, a non-USD functional currency subsidiary in China. The hedging instruments designated as net investment hedges, involve hedging the risk of changes in the USD equivalent value of a designated monetary amount of the Company’s net investment in China, against the risk of adverse changes in the foreign currency exchange rate. The Company recorded the changes in the carrying amount of its China subsidiary in the Foreign currency translation adjustment account within AOCI. Simultaneously, the effective portion of the hedge of this exposure was also recorded in the Foreign Currency Translation Adjustment account and the ineffective portion, if any, was recorded in current earnings. During the three months ended March 31, 2017 , the Company discontinued hedge accounting prospectively. The cumulative effective portion of the net investment hedges recorded through the point of dedesignation will remain in the Foreign currency translation adjustment account within AOCI, and reclassified into earnings only upon the sale or liquidation of the China subsidiary. The Company continues to economically hedge its foreign currency exposure in its China subsidiary and the foreign exchange forward contracts are included as part of the Derivatives Not Designated as Hedging Instruments — “Foreign Exchange Contracts” caption as of March 31, 2017. As of March 31, 2017 , there were no derivative contracts designated as net investment hedges. As of December 31, 2016 , the total notional amount and fair value of the foreign currency forward contracts designated as net investment hedges were $83.0 million and a $4.3 million asset, respectively. The following table presents the losses recorded in the Foreign currency translation adjustment account within AOCI related to the effective portion of the net investment hedges and the ineffectiveness recorded on the Consolidated Statements of Income for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 Losses recognized in AOCI on net investment hedges (effective portion) $ 648 $ 1,485 Losses recognized in foreign exchange income (ineffective portion) $ 1,953 $ 880 Derivatives Not Designated as Hedging Instruments Interest Rate Swaps and Options — The Company enters into interest rate derivatives including interest rate swaps and options 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 mirrored interest rate contracts with institutional counterparties. As of March 31, 2017 , the total notional amounts of interest rate swaps and options, including mirrored transactions with institutional counterparties and the Company’s customers totaled $3.92 billion for derivatives that were in an asset valuation position and $3.91 billion for derivatives that were in a liability valuation position. As of December 31, 2016 , the total notional amounts of interest rate swaps and options, including mirrored transactions with institutional counterparties and the Company’s customers totaled $3.86 billion for derivatives that were in an asset valuation position and $3.81 billion for derivatives that were in a liability valuation position. The fair values of interest rate swap and option contracts with institutional counterparties and the Company’s customers amounted to a $61.6 million asset and a $60.2 million liability as of March 31, 2017 . The fair values of interest rate swap and option contracts with institutional counterparties and the Company’s customers amounted to a $67.6 million asset and a $65.1 million liability as of December 31, 2016 . Foreign Exchange Contracts — The Company enters into foreign exchange contracts on a regular basis, primarily comprised of forward and swap contracts to economically hedge foreign exchange rate fluctuations. A majority of these contracts have original maturities of one year or less. As of March 31, 2017 and December 31, 2016 , the total notional amounts of the foreign exchange contracts were $1.27 billion and $767.8 million , respectively. The fair values of the foreign exchange contracts recorded were an $8.2 million asset and a $7.4 million liability as of March 31, 2017 . The fair values of the short-term foreign exchange contracts recorded were an $11.9 million asset and an $11.2 million liability as of December 31, 2016 . Credit Risk Participation Agreements — The Company has entered into RPAs under which the Company assumed its pro-rata share of the credit exposure associated with the borrower’s performance related to interest rate derivative contracts. The Company may or may not be a party to the interest rate derivative contract and enters into such RPAs in instances where the Company is a party to the related loan participation agreement with the borrower. The Company will make/receive payments under the RPAs if the borrower defaults on its obligation to perform under the interest rate derivative contract. The Company manages its credit risk on the RPAs by monitoring the credit worthiness of the borrowers, which is based on the normal credit review process. The notional amounts of the RPAs reflect the Company’s pro-rata share of the derivative instrument. As of March 31, 2017 , the notional amount and the fair value of RPAs purchased were approximately $49.1 million and a $2 thousand liability, respectively. As of March 31, 2017 , the notional amount and fair value of the RPAs sold were approximately $22.3 million and a $3 thousand asset, respectively. As of December 31, 2016 , the notional amount and the fair value of RPAs purchased were approximately $48.3 million and a $3 thousand liability, respectively. As of December 31, 2016 , the notional amount and the fair value of the RPA sold was approximately $23.1 million and a $3 thousand asset, respectively. Assuming all underlying borrowers referenced in the interest rate derivative contracts defaulted as of March 31, 2017 and December 31, 2016 , the exposures from the RPAs purchased would be $112 thousand and $179 thousand , respectively. As of March 31, 2017 and December 31, 2016 , the weighted average remaining maturities of the outstanding RPAs were 3.5 years and 3.7 years , respectively. The following table presents the net gains (losses) recognized on the Company’s Consolidated Statements of Income related to derivatives not designated as hedging instruments for the three months ended March 31, 2017 and 2016 : ($ in thousands) Location in Consolidated Statements of Income Three Months Ended 2017 2016 Derivatives not designated as hedging instruments: Interest rate swaps and options Derivative fees and other income $ (1,066 ) $ (711 ) Foreign exchange contracts Foreign exchange income 5,838 2,828 RPAs Derivative fees and other income 1 (11 ) Net gains $ 4,773 $ 2,106 Credit-Risk-Related Contingent Features — Certain over-the-counter 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 a downgrade 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, 2017 and December 31, 2016 . Offsetting of Derivatives The Company has entered into agreements with certain 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 on the Consolidated Balance Sheets and the respective collateral 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, 2017 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts Net Amounts Gross Amounts Not Offset on the Derivative Amount Collateral Net Amount Derivatives Assets $ 69,809 $ 44,570 $ 25,239 $ — $ 25,239 $ (20,964 ) (1) $ (4,162 ) (2) $ 113 Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts Net Amounts Gross Amounts Not Offset on the Derivative Amount Collateral Net Amount Derivatives Liabilities $ 74,356 $ 22,699 $ 51,657 $ — $ 51,657 $ (20,964 ) (1) $ (29,833 ) (3) $ 860 ($ in thousands) As of December 31, 2016 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts Offset on the Consolidated Balance Sheets Net Amounts Gross Amounts Not Offset on the Derivative Collateral Net Amount Derivatives Assets $ 83,780 $ 51,218 $ 32,562 $ — $ 32,562 $ (20,991 ) (1) $ (10,687 ) (2) $ 884 Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts Offset on the Consolidated Balance Sheets Net Amounts Gross Amounts Not Offset on the Derivative Collateral Net Amount Derivatives Liabilities $ 82,323 $ 24,097 $ 58,226 $ — $ 58,226 $ (20,991 ) (1) $ (36,349 ) (3) $ 886 (1) Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable master netting arrangements if the Company has elected to net. (2) Represents $1.0 million and $8.1 million of cash collateral received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements as of March 31, 2017 and December 31, 2016 , respectively. (3) Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements. Includes approximately $1.2 million and $170 thousand of cash collateral posted as of March 31, 2017 and December 31, 2016 , respectively. In addition to the amounts included in the table above, the Company also has balance sheet netting related to resale and repurchase agreements, refer to Note 5 — Securities Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements for additional information. Refer to Note 4 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements for fair value measurement disclosures on derivatives. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable and Allowance for Credit Losses | Note 8 — Loans Receivable and Allowance for Credit Losses The Company’s held-for-investment loan portfolio includes originated and purchased loans. Originated and purchased loans with no evidence of credit deterioration at their acquisition date are referred to collectively as non-PCI loans. PCI loans are loans acquired with evidence of credit deterioration since their origination and it is probable at the acquisition date that the Company would be unable to collect all contractually required payments. PCI loans are accounted for under ASC Subtopic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . The Company has elected to account for PCI loans on a pool level basis under ASC 310-30 at the time of acquisition. The following table presents the composition of the Company’s non-PCI and PCI loans as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Non-PCI Loans (1) PCI Loans (2) Total (1)(2) Non-PCI Loans (1) PCI Loans (2) Total (1)(2) CRE: Income producing $ 7,964,224 $ 337,874 $ 8,302,098 $ 7,667,661 $ 348,448 $ 8,016,109 Construction 562,560 — 562,560 551,560 — 551,560 Land 120,885 1,347 122,232 121,276 1,918 123,194 Total CRE 8,647,669 339,221 8,986,890 8,340,497 350,366 8,690,863 C&I: Commercial business 9,176,747 32,110 9,208,857 8,921,246 38,387 8,959,633 Trade finance 709,215 — 709,215 680,930 — 680,930 Total C&I 9,885,962 32,110 9,918,072 9,602,176 38,387 9,640,563 Residential: Single-family 3,566,739 133,333 3,700,072 3,370,669 139,110 3,509,779 Multifamily 1,643,167 89,528 1,732,695 1,490,285 95,654 1,585,939 Total residential 5,209,906 222,861 5,432,767 4,860,954 234,764 5,095,718 Consumer 2,106,091 17,472 2,123,563 2,057,067 18,928 2,075,995 Total loans held-for-investment $ 25,849,628 $ 611,664 $ 26,461,292 $ 24,860,694 $ 642,445 $ 25,503,139 Allowance for loan losses (263,007 ) (87 ) (263,094 ) (260,402 ) (118 ) (260,520 ) Loans held-for-investment, net $ 25,586,621 $ 611,577 $ 26,198,198 $ 24,600,292 $ 642,327 $ 25,242,619 (1) Includes $(4.7) million and $1.2 million as of March 31, 2017 and December 31, 2016 , respectively, of net deferred loan fees, unamortized premiums and unaccreted discounts. (2) Loans net of ASC 310-30 discount. CRE loans include income producing real estate, construction and land loans where the interest rates may be fixed, variable or hybrid. Included in CRE loans are owner occupied CRE loans, and also non-owner occupied CRE loans where the borrowers rely on income from tenants to service the loan. Commercial business and trade finance in the C&I segment provide financing to businesses in a wide spectrum of industries. Residential loans are comprised of single-family and multifamily loans. The Company offers first lien mortgage loans secured by one-to-four unit residential properties located in its primary lending areas. The Company offers a variety of first lien mortgage loan programs, including fixed rate conforming loans and adjustable rate mortgage loans with initial fixed periods of one to five years, which adjust annually thereafter. Consumer loans are comprised of home equity lines of credit (“HELOCs”), insurance premium financing loans, credit card and auto loans. As of March 31, 2017 and December 31, 2016 , the Company’s HELOCs are the largest component of the consumer loan portfolio, and are secured by one-to-four unit residential properties located in its primary lending areas. The HELOCs loan portfolio is largely comprised of loans originated through a reduced documentation loan program, where a substantial down payment is required, resulting in a low loan-to-value ratio, typically 60% or less at origination. The Company is in a first lien position for many of these reduced documentation HELOCs. These loans have historically experienced low delinquency and default rates. 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, 2017 and December 31, 2016 , loans totaling $17.16 billion and $16.44 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 an 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 single-family residential loans, payment performance/delinquency is the driving indicator for the risk ratings. Risk ratings are the overall credit quality indicator for the Company and the credit quality indicator utilized for estimating the appropriate allowance for loan losses. The Company utilizes a risk rating system, which can be classified within 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. Special Mention loans are considered to have potential weaknesses that warrant closer attention by management. Special Mention is considered a transitory grade. If 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 indicate 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 based on changes in the borrowers’ financial status and the loans’ collectability. The following tables present the credit risk rating for non-PCI loans by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Pass/Watch Special Mention Substandard Doubtful Loss Total CRE: Income producing $ 7,800,487 $ 23,362 $ 140,375 $ — $ — $ 7,964,224 Construction 530,278 32,282 — — — 562,560 Land 109,013 — 11,872 — — 120,885 C&I: Commercial business 8,827,318 139,251 185,249 24,929 — 9,176,747 Trade finance 677,654 3,566 27,995 — — 709,215 Residential: Single-family 3,533,047 8,693 24,999 — — 3,566,739 Multifamily 1,619,193 1,284 22,690 — — 1,643,167 Consumer 2,087,485 6,907 11,699 — — 2,106,091 Total $ 25,184,475 $ 215,345 $ 424,879 $ 24,929 $ — $ 25,849,628 December 31, 2016 ($ in thousands) Pass/Watch Special Mention Substandard Doubtful Loss Total Non-PCI Loans CRE: Income producing $ 7,476,804 $ 29,005 $ 161,852 $ — $ — $ 7,667,661 Construction 551,560 — — — — 551,560 Land 107,976 — 13,290 10 — 121,276 C&I: Commercial business 8,559,674 155,276 201,139 5,157 — 8,921,246 Trade finance 635,027 9,435 36,460 — 8 680,930 Residential: Single-family 3,341,015 10,179 19,475 — — 3,370,669 Multifamily 1,462,522 2,268 25,495 — — 1,490,285 Consumer 2,043,405 6,764 6,898 — — 2,057,067 Total $ 24,177,983 $ 212,927 $ 464,609 $ 5,167 $ 8 $ 24,860,694 The following tables present the credit risk rating for PCI loans by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Pass/Watch Special Mention Substandard Total PCI Loans CRE: Income producing $ 282,099 $ 573 $ 55,202 $ 337,874 Land 1,012 — 335 1,347 C&I: Commercial business 27,884 680 3,546 32,110 Residential: Single-family 130,031 1,522 1,780 133,333 Multifamily 80,510 — 9,018 89,528 Consumer 15,559 374 1,539 17,472 Total (1) $ 537,095 $ 3,149 $ 71,420 $ 611,664 December 31, 2016 ($ in thousands) Pass/Watch Special Mention Substandard Total PCI Loans CRE: Income producing $ 293,529 $ 3,239 $ 51,680 $ 348,448 Land 1,562 — 356 1,918 C&I: Commercial business 33,885 772 3,730 38,387 Residential: Single-family 136,245 1,239 1,626 139,110 Multifamily 86,190 — 9,464 95,654 Consumer 17,433 316 1,179 18,928 Total (1) $ 568,844 $ 5,566 $ 68,035 $ 642,445 (1) Loans net of ASC 310-30 discount. Nonaccrual and Past Due Loans Non-PCI loans that are 90 or more days past due are generally placed on nonaccrual status. Additionally, non-PCI loans that are not 90 or more days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis on non-PCI loans as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Nonaccrual Loans Less Than 90 Days Past Due Nonaccrual Loans 90 or More Days Past Due Total Nonaccrual Loans Current Accruing Loans Total Non-PCI Loans CRE: Income producing $ 3,132 $ — $ 3,132 $ 11,596 $ 22,120 $ 33,716 $ 7,927,376 $ 7,964,224 Construction — — — — — — 562,560 562,560 Land — — — 47 4,453 4,500 116,385 120,885 C&I: Commercial business 8,478 5 8,483 47,238 44,855 92,093 9,076,171 9,176,747 Trade finance — — — — — — 709,215 709,215 Residential: Single-family 2,211 5,246 7,457 — 5,643 5,643 3,553,639 3,566,739 Multifamily 4,801 904 5,705 1,030 1,192 2,222 1,635,240 1,643,167 Consumer 3,352 444 3,796 156 2,825 2,981 2,099,314 2,106,091 Total $ 21,974 $ 6,599 $ 28,573 $ 60,067 $ 81,088 $ 141,155 $ 25,679,900 $ 25,849,628 December 31, 2016 ($ in thousands) Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Nonaccrual Loans Less Than 90 Days Past Due Nonaccrual Loans 90 or More Days Past Due Total Nonaccrual Loans Current Accruing Loans Total CRE: Income producing $ 6,233 $ 14,080 $ 20,313 $ 14,872 $ 12,035 $ 26,907 $ 7,620,441 $ 7,667,661 Construction 4,994 — 4,994 — — — 546,566 551,560 Land — — — 433 4,893 5,326 115,950 121,276 C&I: Commercial business 45,052 2,279 47,331 60,511 20,737 81,248 8,792,667 8,921,246 Trade finance — — — 8 — 8 680,922 680,930 Residential: Single-family 9,595 8,076 17,671 — 4,214 4,214 3,348,784 3,370,669 Multifamily 3,951 374 4,325 2,790 194 2,984 1,482,976 1,490,285 Consumer 3,327 3,228 6,555 165 1,965 2,130 2,048,382 2,057,067 Total $ 73,152 $ 28,037 $ 101,189 $ 78,779 $ 44,038 $ 122,817 $ 24,636,688 $ 24,860,694 For information on the policy for recording payments received and resuming accrual of interest on non-PCI loans that are placed on nonaccrual status, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2016 Form 10-K. PCI loans are excluded from the above aging analysis tables as the Company has elected to account for these loans on a pool level basis under ASC 310-30 at the time of acquisition. Please refer to the discussion on PCI loans within this note for additional details on interest income recognition. As of March 31, 2017 and December 31, 2016 , PCI loans on nonaccrual status totaled $12.0 million and $11.7 million , respectively. Loans in Process of Foreclosure As of March 31, 2017 and December 31, 2016 , the Company had $944 thousand and $3.1 million , respectively, of recorded investment in residential and consumer mortgage loans secured by residential real estate properties, for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdictions, which were not included in OREO. No foreclosed residential real estate properties were included in total net OREO of $3.6 million as of March 31, 2017 . In comparison, foreclosed residential real estate properties with a carrying amount of $401 thousand were included in total net OREO of $6.7 million as of December 31, 2016 . Troubled Debt Restructurings (“TDRs”) Potential TDRs are individually evaluated and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty in order to maximize the Company’s recovery. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower, it would not otherwise consider. The following table presents the additions to non-PCI TDRs for the three months ended March 31, 2017 and 2016 : Loans Modified as TDRs During the Three Months Ended March 31, ($ in thousands) 2017 2016 Number Pre- Modification Post- Modification (1) Financial (2) Number Pre- Modification Post- Modification (1) Financial (2) CRE: Income producing 1 $ 1,526 $ 1,505 $ — 2 $ 13,775 $ 13,758 $ — Land 2 $ 86 $ — $ — — $ — $ — $ — C&I: Commercial business 2 $ 6,448 $ 4,914 $ 1,273 4 $ 21,614 $ 18,577 $ 97 Trade finance — $ — $ — $ — 2 $ 7,901 $ 8,082 $ — Residential: Single-family — $ — $ — $ — 1 $ 276 $ 272 $ — Consumer — $ — $ — $ — 1 $ 344 $ 345 $ 1 (1) Includes subsequent payments after modification and reflects the balance as of March 31, 2017 and 2016 . (2) The financial impact includes charge-offs and specific reserves recorded at the modification date. The following table presents the non-PCI TDR modifications for the three months ended March 31, 2017 and 2016 by modification type: ($ in thousands) Modification Type During the Three Month Ended March 31, 2017 2016 Principal (1) Principal and Interest (2) Interest Rate Reduction Other Total Principal (1) Principal and Interest (2) Interest Rate Reduction Other Total CRE $ 1,505 $ — $ — $ — $ 1,505 $ 13,730 $ — $ — $ 28 $ 13,758 C&I — 4,914 — — 4,914 19,112 — 3,615 3,932 26,659 Residential — — — — — 272 — — — 272 Consumer — — — — — 345 — — — 345 Total $ 1,505 $ 4,914 $ — $ — $ 6,419 $ 33,459 $ — $ 3,615 $ 3,960 $ 41,034 (1) Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only. (2) Includes principal and interest deferments or reductions. Subsequent to restructuring, a TDR that becomes delinquent, generally beyond 90 days, is considered to have defaulted. As TDRs are individually evaluated for impairment under the specific reserve methodology, subsequent defaults do not generally have a significant additional impact on the allowance for loan losses. The following table presents information for loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three months ended March 31, 2017 and 2016 , and were still in default at the respective period end: Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31, 2017 2016 ($ in thousands) Number of Recorded Number of Recorded C&I: Commercial business 1 $ 2,718 4 $ 966 The amount of additional funds committed to lend to borrowers whose terms have been modified was $4.0 million and $9.9 million as of March 31, 2017 and December 31, 2016 , respectively. Impaired Loans The Company’s loans are grouped into heterogeneous and homogeneous (mostly consumer loans) categories. Classified loans in the heterogeneous category are identified and evaluated for impairment on an individual basis. A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all scheduled payments of principal or interest due in accordance with the original contractual terms. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as expedient, at the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent, less costs to sell. When the value of an impaired loan is less than the recorded investment and the loan is classified as nonperforming and uncollectible, the deficiency is charged-off against the allowance for loan losses. Impaired loans exclude the homogeneous consumer loan portfolio, which is evaluated collectively for impairment. The Company’s impaired loans include predominantly non-PCI loans held-for-investment on nonaccrual status and any non-PCI loans modified in a TDR, which may be on accrual or nonaccrual status. The following tables present information on the non-PCI impaired loans as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance CRE: Income producing $ 48,832 $ 34,984 $ 9,528 $ 44,512 $ 1,159 Land 5,050 4,453 47 4,500 6 C&I: Commercial business 182,965 101,963 34,031 135,994 6,218 Trade finance 3,449 3,438 — 3,438 — Residential: Single-family 16,132 1,864 13,172 15,036 611 Multifamily 10,132 5,649 3,575 9,224 121 Consumer 4,897 670 3,855 4,525 32 Total $ 271,457 $ 153,021 $ 64,208 $ 217,229 $ 8,147 December 31, 2016 ($ in thousands) Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance CRE: Income producing $ 50,718 $ 32,507 $ 14,001 $ 46,508 $ 1,263 Land 6,457 5,427 443 5,870 63 C&I: Commercial business 162,239 78,316 42,137 120,453 10,443 Trade finance 5,227 — 5,166 5,166 34 Residential: Single-family 15,435 — 14,335 14,335 687 Multifamily 11,181 5,684 4,357 10,041 180 Consumer 4,016 — 3,682 3,682 31 Total $ 255,273 $ 121,934 $ 84,121 $ 206,055 $ 12,701 The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans during the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Average Recorded Investment Recognized Interest Income (1) Average Recognized Interest Income (1) CRE: Income producing $ 44,772 $ 35 $ 71,767 $ 391 Land 4,717 — 6,952 9 C&I: Commercial business 138,931 214 94,505 369 Trade finance 4,283 7 13,737 66 Residential: Single-family 15,096 22 18,356 65 Multifamily 9,269 38 22,345 77 Consumer 4,533 12 1,638 16 Total non-PCI impaired loans $ 221,601 $ 328 $ 229,300 $ 993 (1) Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal and not as interest income. Allowance for Credit Losses The following tables present a summary of activities in the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 ($ in thousands) Non-PCI Loans PCI Loans CRE C&I Residential Consumer Total Total Beginning balance $ 72,804 $ 142,166 $ 37,333 $ 8,099 $ 260,402 $ 118 $ 260,520 Provision for (reversal of) loan losses 1,639 1,946 3,835 626 8,046 (31 ) 8,015 Charge-offs (148 ) (7,057 ) — (4 ) (7,209 ) — (7,209 ) Recoveries 593 455 578 142 1,768 — 1,768 Net recoveries (charge-offs) 445 (6,602 ) 578 138 (5,441 ) — (5,441 ) Ending balance $ 74,888 $ 137,510 $ 41,746 $ 8,863 $ 263,007 $ 87 $ 263,094 Three Months Ended March 31, 2016 ($ in thousands) Non-PCI Loans PCI Loans Total CRE C&I Residential Consumer Total Beginning balance $ 81,191 $ 134,597 $ 39,292 $ 9,520 $ 264,600 $ 359 $ 264,959 Provision for (reversal of) loan losses 1,306 4,654 (5,317 ) (226 ) 417 (31 ) 386 Charge-offs (56 ) (5,860 ) (137 ) (1 ) (6,054 ) — (6,054 ) Recoveries 97 686 97 67 947 — 947 Net recoveries (charge-offs) 41 (5,174 ) (40 ) 66 (5,107 ) — (5,107 ) Ending balance $ 82,538 $ 134,077 $ 33,935 $ 9,360 $ 259,910 $ 328 $ 260,238 For further information on accounting policies and the methodology used to estimate the allowance for credit losses and loan charge-offs, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2016 Form 10-K. The following table presents a summary of activities in the allowance for unfunded credit reserves during the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 Beginning balance $ 16,121 $ 20,360 (Reversal of) provision for unfunded credit reserves (947 ) 1,054 Ending balance $ 15,174 $ 21,414 The allowance for unfunded credit reserves is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities. The allowance for unfunded credit reserves is included in Accrued expense and other liabilities on the Consolidated Balance Sheets. See Note 11 — Commitments and Contingencies to the Consolidated Financial Statements for additional information related to unfunded credit reserves. The following tables present the Company’s allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) CRE C&I Residential Consumer Total Allowance for loan losses Individually evaluated for impairment $ 1,165 $ 6,218 $ 732 $ 32 $ 8,147 Collectively evaluated for impairment 73,723 131,292 41,014 8,831 254,860 Acquired with deteriorated credit quality 86 — 1 — 87 Ending balance $ 74,974 $ 137,510 $ 41,747 $ 8,863 $ 263,094 Recorded investment in loans Individually evaluated for impairment $ 49,012 $ 139,432 $ 24,260 $ 4,525 $ 217,229 Collectively evaluated for impairment 8,598,657 9,746,530 5,185,646 2,101,566 25,632,399 Acquired with deteriorated credit quality (1) 339,221 32,110 222,861 17,472 611,664 Ending balance (1) $ 8,986,890 $ 9,918,072 $ 5,432,767 $ 2,123,563 $ 26,461,292 December 31, 2016 ($ in thousands) CRE C&I Residential Consumer Total Allowance for loan losses Individually evaluated for impairment $ 1,326 $ 10,477 $ 867 $ 31 $ 12,701 Collectively evaluated for impairment 71,478 131,689 36,466 8,068 247,701 Acquired with deteriorated credit quality 112 1 5 — 118 Ending balance $ 72,916 $ 142,167 $ 37,338 $ 8,099 $ 260,520 Recorded investment in loans Individually evaluated for impairment $ 52,378 $ 125,619 $ 24,376 $ 3,682 $ 206,055 Collectively evaluated for impairment 8,288,119 9,476,557 4,836,578 2,053,385 24,654,639 Acquired with deteriorated credit quality (1) 350,366 38,387 234,764 18,928 642,445 Ending balance (1) $ 8,690,863 $ 9,640,563 $ 5,095,718 $ 2,075,995 $ 25,503,139 (1) Loans net of ASC 310-30 discount. Purchased Credit Impaired Loans At the date of acquisition, PCI loans are pooled and accounted for at fair value, which represents the discounted value of the expected cash flows of the loan portfolio. A pool is accounted for as a single asset with a single interest rate, cumulative loss rate and cash flow expectation. The cash flows expected over the life of the pools are estimated by an internal cash flow model that projects cash flows and calculates the carrying values of the pools, book yields, effective interest income and impairment, if any, based on pool level events. Assumptions as to cumulative loss rates, loss curves and prepayment speeds are utilized to calculate the expected cash flows. The amount of expected cash flows over the initial investment in the loan represents the “accretable yield,” which is recognized as interest income on a level yield basis over the life of the loan. Prepayments affect the estimated life of PCI loans, which may change the amount of interest income, and possibly principal, expected to be collected. The excess of total contractual cash flows over the cash flows expected to be received at origination is deemed to be the “nonaccretable difference.” The following table presents the changes in accretable yield for PCI loans for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Beginning balance $ 136,247 $ 214,907 Accretion (10,279 ) (22,429 ) Changes in expected cash flows 2,022 (6,487 ) Ending balance $ 127,990 $ 185,991 Loans Held-for-Sale Loans held-for-sale are carried at the lower of cost or fair value. When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is the Company’s intent to hold these loans to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s management evaluation processes, including asset/liability management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from the loans held-for-investment portfolio to the loans held-for-sale portfolio at the lower of cost or fair value. As of March 31, 2017 , loans held-for-sale amounted to $28.9 million , which were primarily comprised of C&I loans. As of December 31, 2016 , loans held-for-sale amounted to $23.1 million , which were comprised primarily of consumer loans. Transfers of loans held-for-investment to loans held-for-sale were $278.0 million during the three months ended March 31, 2017 . These loan transfers were comprised of C&I loans. In comparison, $308.7 million of loans held-for-investment were transferred to loans held-for-sale during the three months ended March 31, 2016 . These loan transfers were comprised primarily of multifamily residential, C&I and CRE loans. The Company recorded $92 thousand and $1.8 million , respectively, in write-downs to the allowance for loan losses related to loans transferred from loans held-for-investment to loans held-for-sale for the three months ended March 31, 2017 and 2016 . During the three months ended March 31, 2017 , the Company sold $29.3 million in originated loans, which were comprised of C&I and single-family residential loans, resulting in net gains of $1.8 million . In comparison, during the three months ended March 31, 2016 , the Company sold or securitized $256.2 million in originated loans, which were comprised primarily of multifamily residential, C&I and CRE loans, resulting in net gains of $4.3 million . During the same period, the Company recorded $1.1 million in net gains and $641 thousand in mortgage servicing rights, and retained $160.1 million of the senior tranche of the resulting securities from the securitization of $201.7 million of multifamily residential loans. From time to time, the Company purchases and sells loans in the secondary market. During the three months ended March 31, 2017 , the Company purchased $147.2 million of loans, compared to $239.3 million during the three months ended March 31, 2016 . The decrease in the loans purchased for the three months ended March 31, 2017 , compared to the same period in prior year, was primarily due to the purchase of single-family residential loans that were made to low-to-moderate income borrowers during the three months ended March 31, 2016 , while there was no such purchase during the same period in 2017 . Other loan purchases were largely made within the Company’s syndicated loan portfolio. Certain purchased loans were transferred from loans held-for-investment to loans held-for-sale and a write-down to allowance for loan losses was recorded, where appropriate. During the three months ended March 31, 2017 , the Company sold $246.6 million of loans in the secondary market at a net gain of $1.0 million . In comparison, the Company sold $53.9 million of loans in the secondary market during the three months ended March 31, 2016 and no gains or losses were recognized from these sales. For the three months ended March 31, 2017 and 2016 , the Company recorded valuation adjustments of $69 thousand and $2.4 million , respectively, in Net gains on sales of loans on the Consolidated Statements of Income to carry the loans held-for-sale portfolio at the lower of cost or fair value. |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net | 3 Months Ended |
Mar. 31, 2017 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net [Abstract] | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net | Note 9 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net 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 income. 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 U.S. 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 and 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 Partnerships, Net The Company records its investments in qualified affordable housing partnerships, net, using the proportional amortization method. 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 on the Consolidated Statements of Income as a component of income tax expense. The following table presents the balances of the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of the periods indicated: ($ in thousands) March 31, 2017 December 31, 2016 Investments in qualified affordable housing partnerships, net $ 176,965 $ 183,917 Accrued expenses and other liabilities — Unfunded commitments $ 52,223 $ 57,243 The following table presents additional information related to the Company’s investments in qualified affordable housing partnerships, net, for the periods indicated: ($ in thousands) Three Months Ended 2017 2016 Tax credits and other tax benefits recognized $ 9,621 $ 9,452 Amortization expense included in income tax expense $ 6,950 $ 6,966 Investments in Tax Credit and Other Investments, Net Investments in tax credit and other investments, net, were $177.0 million and $173.3 million as of March 31, 2017 and December 31, 2016 , respectively. 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 the limited partnership, the Company applies either the equity method or cost method of accounting. Total unfunded commitments for these investments were $101.8 million and $117.0 million as of March 31, 2017 and December 31, 2016 , respectively, and were included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. Amortization of tax credit and other investments was $14.4 million and $14.2 million for the three months ended March 31, 2017 and 2016 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 10 — Goodwill and Other Intangible Assets Goodwill Total goodwill of $469.4 million remained unchanged as of March 31, 2017 compared to December 31, 2016 . Goodwill is tested for impairment on an annual basis as of December 31 st , or more frequently as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company’s three operating segments, Retail Banking, Commercial Banking, and Other, are equivalent to the Company’s reporting units. For complete discussion and disclosure, see Note 15 — Business Segments to the Consolidated Financial Statements. Impairment Analysis The Company performed its annual impairment analysis as of December 31, 2016 and concluded that there was no goodwill impairment as the fair values of all reporting units exceeded the carrying amounts of goodwill. There were no triggering events during the three months ended March 31, 2017 and therefore, no additional goodwill impairment analysis was performed. No assurance can be given that goodwill will not be written down in future periods. Refer to Note 9 — Goodwill and Other Intangible Assets to the Consolidated Financial Statements of the Company’s 2016 Form 10-K for additional details related to the Company’s annual goodwill impairment analysis. Core Deposit Intangibles Core deposit intangibles represent the intangible value of depositor relationships resulting from deposit liabilities assumed in various acquisitions. These intangibles are tested for impairment on an annual basis, or more frequently as events occur, or as current circumstances and conditions warrant. There were no impairment write-downs on core deposit intangibles for the three months ended March 31, 2017 and 2016 . The following table presents the gross carrying value of intangible assets and accumulated amortization as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Gross balance $ 108,814 $ 108,814 Accumulated amortization 82,642 80,825 Net carrying balance $ 26,172 $ 27,989 Amortization Expense The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. The amortization expense related to the intangible assets was $1.8 million and $2.1 million for the three months ended March 31, 2017 and 2016 , respectively. The following table presents the estimated future amortization expense of core deposit intangibles: Year Ended December 31, Amount ($ in thousands) Remainder of 2017 $ 5,118 2018 5,883 2019 4,864 2020 3,846 2021 2,833 Thereafter 3,628 Total $ 26,172 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — 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 outstanding commercial and standby letters of credit (“ SBLCs”). The following table presents the Company’s credit-related commitments as of the periods indicated: ($ in thousands) March 31, 2017 December 31, 2016 Loan commitments $ 5,007,903 $ 5,077,869 Commercial letters of credit and SBLCs $ 1,695,083 $ 1,525,613 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 and may require maintenance of compensatory balances. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements. Commercial letters of credit are issued to facilitate domestic and foreign trade transactions while SBLCs generally are contingent upon the failure of the customers to perform according to the terms of the underlying contract with the third party. As a result, the total contractual amounts do not necessarily represent future funding requirements. The Company’s historical experience is that SBLCs typically expire without being funded. Additionally, in many cases, the Company holds collateral in various forms against these SBLCs. As a part of its risk management activities, the Company monitors the creditworthiness of customers in conjunction with its SBLC exposure. Customers are obligated to reimburse the Company for any payment made on the customers’ behalf. If customers fail to pay, the Company would, as applicable, liquidate the collateral and/or offset accounts. Total letters of credit of $1.70 billion consisted of commercial letters of credit of $58.7 million and SBLCs of $1.64 billion as of March 31, 2017 . The Company uses the same credit underwriting criteria in extending loans, commitments and conditional obligations to customers. Each customer’s creditworthiness is evaluated on a case-by-case basis. Collateral and financial guarantees may be obtained based on management’s assessment of the customer’s credit. Collateral may include cash, accounts receivable, inventory, property, plant and equipment and income-producing commercial property. Estimated exposure to loss from these commitments is included in the allowance for unfunded credit reserves and amounted to $14.8 million as of March 31, 2017 and $15.7 million as of December 31, 2016 . These amounts are included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. Guarantees — The Company has sold or securitized loans with recourse in the ordinary course of business. The recourse component in the loans sold or securitized with recourse is considered a guarantee. As the guarantor, the Company is obligated to make payments when the loans default. As of March 31, 2017 and December 31, 2016 , the unpaid principal balance of total single-family and multifamily residential loans sold or securitized with recourse amounted to $139.6 million and $150.5 million , respectively. The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit reserves and totaled $333 thousand and $373 thousand as of March 31, 2017 and December 31, 2016 , respectively. The allowance for unfunded credit reserves is included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. The Company continues to experience minimal losses from the single-family and multifamily residential loan portfolios sold or securitized with recourse. Litigation — The Company is a party to various legal actions arising in the course of business. In accordance with ASC 450, Contingencies , the Company accrues reserves for currently outstanding lawsuits, claims, and proceedings when a loss contingency is probable and can be reasonably estimated. The outcome of such legal actions is inherently difficult to predict and it is possible that one or more of the currently pending or threatened legal or regulatory matters could have a material adverse effect on the Company’s liquidity, consolidated financial position, and/or results of operations. In 2016, the Company entered into a settlement agreement to fully resolve and discharge the “F&F, LLC and 618 Investment, Inc. v. East West Bank” litigation and had accrued $25.0 million as of December 31, 2016 . These amounts were subsequently paid in January 2017. Other Commitments — The Company has commitments to invest in qualified affordable housing partnerships and other tax credit investments qualifying for low income housing tax credits or other types of tax credits. These commitments are payable on demand. As of March 31, 2017 and December 31, 2016 , these commitments were $154.0 million and $174.3 million , respectively. These commitments are included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Note 12 — Stock Compensation Plans Pursuant to the Company’s 2016 Stock Incentive Plan, as amended, the Company may issue stock options, restricted stock awards (“RSAs”), RSUs, stock appreciation rights, stock purchase warrants, phantom stock and dividend equivalents to certain employees and non-employee directors of the Company and its subsidiaries. There were no outstanding stock options and unvested RSAs as of March 31, 2017 and 2016. RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSUs vest ratably over three years or cliff vest after three or five years of continued employment from the date of the grant. RSUs entitle the recipient to receive cash dividends equivalent to any dividends paid on the underlying common stock during the period RSUs are outstanding. The RSU dividends are accrued during the vesting period and are paid at the time of vesting. While a portion of RSUs are time-vesting awards, others vest subject to the attainment of specified performance goals referred to as “Performance-based RSUs.” All RSUs are subject to forfeiture until vested. Performance-based RSUs are granted at the target amount of awards. Based on the Company’s attainment of specified performance goals and consideration of market conditions, the number of shares that vest can be adjusted to a minimum of zero and to a maximum of 200% of the target. The amount of performance-based RSUs that are eligible to vest is determined at the end of each performance period and is then added together to determine the total number of performance shares that are eligible to vest. Performance-based RSUs cliff vest three years from the date of the grant. Compensation costs for the time-based awards are based on the quoted market price of the Company’s stock at the grant date. Compensation costs associated with performance-based RSUs are based on grant date fair value which considers both market and performance conditions and is subject to subsequent adjustments based on the changes in the Company’s stock price and the projected outcome of the performance criteria. Compensation costs of both time-based and performance-based awards are recognized on a straight-line basis from the grant date until the vesting date of each grant. The following table presents a summary of the total share-based compensation expense and the related net tax benefit associated with the Company’s various employee share-based compensation plans for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 Stock compensation costs $ 5,151 $ 4,575 Related net tax benefit for stock compensation plans $ 4,414 $ 986 Effective January 1, 2017, the Company adopted ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . As a result of the adoption of this new guidance, all excess tax benefits and deficiencies on share-based payment awards are recognized within Income tax expense on the Consolidated Statements of Income for the three months ended March 31, 2017. For the three months ended March 31, 2016, these tax benefits were recorded as increases to Additional paid-in capital in the Consolidated Statements of Changes in Stockholders’ Equity. The following table presents a summary of the activity for the Company’s time-based and performance-based RSUs for the three months ended March 31, 2017 based on the target amount of awards: Three Months Ended March 31, 2017 Time-Based RSUs Performance-Based RSUs Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Outstanding at beginning of period 1,218,714 $ 35.92 410,746 $ 35.27 Granted 330,762 54.49 131,597 56.59 Vested (279,549 ) 36.84 (118,044 ) 36.85 Forfeited (61,193 ) 39.25 — — Outstanding at end of period 1,208,734 $ 40.62 424,299 $ 41.44 As of March 31, 2017 , total unrecognized compensation costs related to time-based and performance-based RSUs amounted to $34.6 million and $20.2 million , respectively. These costs are expected to be recognized over a weighted average period of 2.30 years and 2.41 years, respectively. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
Stockholders' Equity and Earnings Per Share | Note 13 — Stockholders’ Equity and Earnings Per Share Warrant — The Company acquired MetroCorp Bancshares, Inc., (“MetroCorp”) on January 17, 2014. Prior to the acquisition, MetroCorp had an outstanding warrant to purchase 771,429 shares of its common stock. Upon the acquisition, the rights of the warrant holder were converted into the right to acquire 230,282 shares of East West’s common stock until January 16, 2019. The warrant has no t been exercised as of March 31, 2017 . EPS — Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period, plus common share equivalents calculated for warrants and RSUs outstanding using the treasury stock method. With the adoption of ASU 2016-09 during the first quarter of 2017, the impact of excess tax benefits and deficiencies is no longer included in the calculation of diluted EPS. In addition, the adoption of ASU 2016-09 favorably impacted basic and diluted EPS by $0.03 per share each for the three months ended March 31, 2017. See Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. The following table presents the EPS calculations for the three months ended March 31, 2017 and 2016 : Three Months Ended ($ and shares in thousands, except per share data) 2017 2016 Basic Net income $ 169,736 $ 107,516 Basic weighted average number of shares outstanding 144,249 143,958 Basic EPS $ 1.18 $ 0.75 Diluted Net income $ 169,736 $ 107,516 Basic weighted average number of shares outstanding 144,249 143,958 Diluted potential common shares (1) 1,483 845 Diluted weighted average number of shares outstanding 145,732 144,803 Diluted EPS $ 1.16 $ 0.74 (1) Includes dilutive shares from RSUs and warrants for the three months ended March 31, 2017 and 2016 . For the three months ended March 31, 2017 and 2016 , approximately 194 thousand and 13 thousand weighted average anti-dilutive shares from RSUs, respectively, were excluded from the diluted EPS computation. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 14 — Accumulated Other Comprehensive Income (Loss) The following table presents the changes in the components of AOCI balances for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Available- Foreign (1) Total Available- Foreign (1) Total Beginning balance $ (28,772 ) $ (19,374 ) $ (48,146 ) $ (6,144 ) $ (8,797 ) $ (14,941 ) Net unrealized gains (losses) arising during the period 5,055 1,007 6,062 15,142 (33 ) 15,109 Amounts reclassified from AOCI (1,434 ) — (1,434 ) (2,226 ) — (2,226 ) Changes, net of taxes 3,621 1,007 4,628 12,916 (33 ) 12,883 Ending balance $ (25,151 ) $ (18,367 ) $ (43,518 ) $ 6,772 $ (8,830 ) $ (2,058 ) (1) Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was Chinese Renminbi and USD, respectively. The following table presents the components of other comprehensive income, reclassifications to net income and the related tax effects for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Available-for-sale investment securities: Net unrealized gains arising during the period $ 8,721 $ (3,666 ) $ 5,055 $ 26,130 $ (10,988 ) $ 15,142 Net realized gains reclassified into net income (1) (2,474 ) 1,040 (1,434 ) (3,842 ) 1,616 (2,226 ) Net change 6,247 (2,626 ) 3,621 22,288 (9,372 ) 12,916 Foreign currency translation adjustments: Net unrealized gains (losses) arising during period 1,007 — 1,007 (33 ) — (33 ) Net change 1,007 — 1,007 (33 ) — (33 ) Other comprehensive income $ 7,254 $ (2,626 ) $ 4,628 $ 22,255 $ (9,372 ) $ 12,883 (1) For the three months ended March 31, 2017 and 2016 , the pretax amounts were reported in Net gains on sales of available-for-sale investment securities on the Consolidated Statements of Income. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Note 15 — 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 C&I and CRE operations, primarily generates commercial loans and deposits through the commercial lending offices located in the Bank’s production offices. Furthermore, the Company’s Commercial Banking segment offers a wide variety of international finance, trade, and cash management 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. 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 credit 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. The Company’s internal 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. Internal transfer pricing assumptions and methodologies are reviewed at least annually to ensure that the Company’s process is reflective of current market conditions. The internal transfer pricing process is formulated with the goal of incentivizing 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 Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2016 Form 10-K. 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 deemed not practicable to do so. The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 Retail Banking Commercial Banking Other Total Interest income $ 81,648 $ 191,796 $ 29,225 $ 302,669 Charge for funds used (27,860 ) (64,387 ) (28,167 ) (120,414 ) Interest spread on funds used 53,788 127,409 1,058 182,255 Interest expense (16,173 ) (5,108 ) (9,266 ) (30,547 ) Credit on funds provided 102,528 12,061 5,825 120,414 Interest spread on funds provided 86,355 6,953 (3,441 ) 89,867 Net interest income (loss) before provision for credit losses $ 140,143 $ 134,362 $ (2,383 ) $ 272,122 Provision for credit losses $ 381 $ 6,687 $ — $ 7,068 Depreciation, amortization and (accretion), net $ 2,344 $ (3,474 ) $ 29,260 $ 28,130 Segment income before income taxes $ 73,361 $ 91,798 $ 62,845 $ 228,004 As of March 31, 2017: Goodwill $ 357,207 $ 112,226 $ — $ 469,433 Segment assets $ 8,213,268 $ 19,624,237 $ 7,504,621 $ 35,342,126 ($ in thousands) Three Months Ended March 31, 2016 Retail Commercial Other Total Interest income $ 77,371 $ 177,082 $ 21,719 $ 276,172 Charge for funds used (22,652 ) (53,791 ) (11,837 ) (88,280 ) Interest spread on funds used 54,719 123,291 9,882 187,892 Interest expense (14,606 ) (4,026 ) (5,336 ) (23,968 ) Credit on funds provided 72,431 9,977 5,872 88,280 Interest spread on funds provided 57,825 5,951 536 64,312 Net interest income before provision for credit losses $ 112,544 $ 129,242 $ 10,418 $ 252,204 (Reversal of) provision for credit losses $ (1,582 ) $ 3,022 $ — $ 1,440 Depreciation, amortization and (accretion), net $ 43 $ (10,773 ) $ 23,488 $ 12,758 Segment income before income taxes $ 45,945 $ 92,829 $ 5,897 $ 144,671 As of March 31, 2016: Goodwill $ 357,207 $ 112,226 $ — $ 469,433 Segment assets $ 7,203,470 $ 17,939,537 $ 7,966,162 $ 33,109,169 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 — Subsequent Events On April 19, 2017 , the Company’s Board of Directors declared second quarter 2017 cash dividends for the Company’s common stock. The common stock cash dividend of $0.20 is payable on May 15, 2017 to stockholders of record as of May 1, 2017 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company”) is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The unaudited interim Consolidated Financial Statements in this Form 10-Q include the accounts of East West, East West Bank, East West Insurance Services, Inc., and various subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of March 31, 2017 , East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with FASB Accounting Standards Codification (“ASC”) Topic 810, the Trusts are not included on the Consolidated Financial Statements. |
Basis of Presentation | The unaudited interim Consolidated Financial Statements presented in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”), applicable guidelines prescribed by regulatory authorities, and general practices in the banking industry, reflect all adjustments that, in the opinion of management, are necessary for fair statement of the interim period financial statements. Certain items on the Consolidated Financial Statements and notes for the prior years have been reclassified to conform to the current period presentation. |
Current Accounting Developments | NEW ACCOUNTING PRONOUNCEMENTS ADOPTED In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not be considered a termination of the derivative instrument or a change in a critical term of the hedging relationship provided that all other hedge accounting criteria in ASC 815 continue to be met. This clarification applies to both cash flow and fair value hedging relationships. The Company adopted this guidance prospectively in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments which requires an entity to use a four step decision model when assessing contingent call (put) options that can accelerate the payment of principal on debt instruments to determine whether they are clearly and closely related to their debt hosts. The Company adopted this guidance on a modified retrospective basis in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-07, Investments — Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting, to eliminate the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. The amendments in ASU 2016-07 also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in AOCI at the date the investment becomes qualified for use of the equity method. The Company adopted this guidance prospectively in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification in the statement of cash flows. The Company adopted ASU 2016-09 in the first quarter of 2017. The changes that impacted the Company included a requirement that excess tax benefits and deficiencies be recognized as a component of Income tax expense on the Consolidated Statements of Income rather than Additional paid-in capital on the Consolidated Statements of Changes in Stockholders’ Equity as required in the previous guidance. Net excess tax benefits for restricted stock units (“RSUs”) of approximately $4.4 million were recognized by the Company as a component of Income tax expense on the Consolidated Statements of Income during the first quarter of 2017. This change also removes the impact of the excess tax benefits and deficiencies from the calculation of diluted EPS. In addition, ASU 2016-09 no longer requires a presentation of excess tax benefits and deficiencies as both an operating outflow and financing inflow on the Consolidated Statements of Cash Flows. Instead, excess tax benefits and deficiencies are recorded along with other income tax cash flows as an operating activity on the Consolidated Statements of Cash Flows. These changes were applied on a prospective basis. The adoption of ASU 2016-09 will result in increased volatility to the Company’s income tax expense but is not expected to have a material impact on the Consolidated Balance Sheets or the Consolidated Statements of Changes in Stockholders’ Equity. The income tax expense volatility is dependent on the Company’s stock price on the dates the RSUs vest, which occur primarily in the first quarter of each year. The Company has elected to retain its existing accounting policy election to estimate award forfeitures. 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. ASU 2014-09 clarifies the principles for recognizing revenue and replaces nearly all existing revenue recognition guidance in U.S. GAAP. Quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. ASU 2014-09 as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, is effective for interim and annual periods beginning after December 15, 2017 and is applied on either a modified retrospective or full retrospective basis. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. The Company’s revenue is mainly comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income, as well as other revenues from financial instruments such as loans, leases, securities and derivatives. The Company has conducted a comprehensive scoping exercise to determine the revenue streams that are in the scope of these updates. Preliminary results indicate that certain noninterest income financial statement line items may contain revenue streams that are in the scope of these updates. The Company’s next implementation efforts include identifying contracts within the scope of the new guidance and assessing the related noninterest income revenues to determine if any accounting or internal control changes will be required under the provisions of the new guidance. The Company continues to evaluate the impact of ASU 2014-09 on our noninterest income and on our presentation and disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires equity investments, except those accounted for under the equity method of accounting or consolidated, to be measured at fair value with changes recognized in net income. If there is no readily determinable fair value, the guidance allows entities the ability to measure investments at cost less impairment, whereby impairment is based on a qualitative assessment. The guidance eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost and changes the presentation of financial assets and financial liabilities on the Consolidated Balance Sheets or in the footnotes. If an entity has elected the fair value option to measure liabilities, the new accounting guidance requires the portion of the change in the fair value of a liability resulting from credit risk to be presented in Other Comprehensive Income . The Company has not elected to measure any of its liabilities at fair value, and therefore, this aspect of the guidance is not applicable to us. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is not permitted except for certain specific changes under the fair value option guidance. To adopt the amendments, the Company is required to make a cumulative effect adjustment to the Consolidated Balance Sheets as of the beginning of the fiscal year in which the guidance is effective. However, the amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the adoption date. The Company is currently evaluating the impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability in the accounting for lease transactions. ASU 2016-02 requires lessees to recognize all leases longer than 12 months on the Consolidated Balance Sheet as lease assets and lease liabilities and provide quantitative and qualitative disclosures regarding key information about leasing arrangements. For short-term leases with a term of 12 months or less, lessees can make a policy election not to recognize lease assets and lease liabilities. Lessor accounting is largely unchanged. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018 with modified retrospective application. Early adoption is permitted. The Company expects the adoption of ASU 2016-02 to result in additional assets and liabilities, as the Company will be required to recognize operating leases on its Consolidated Balance Sheets. The Company does not expect a material impact to its recognition of operating lease expense on its Consolidated Statements of Income. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to introduce a new approach based on expected losses to estimate credit losses on certain types of financial instruments, which modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new “expected credit loss” impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, available-for-sale and held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. For available-for-sale debt securities with unrealized losses, ASU 2016-13 does not change the measurement method of credit losses, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loans and lease losses and requires disclosure of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination (i.e., by vintage year). ASU 2016-13 is effective for the fiscal years beginning after December 15, 2019, including interim periods within those fiscal years using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Earlier adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While the Company is still evaluating the impact on its Consolidated Financial Statements, the Company expects that ASU 2016-13 may result in an increase in the allowance for credit losses due to the following factors: 1) the allowance for credit losses provides for expected credit losses over the remaining expected life of the loan portfolio, and will consider expected future changes in macroeconomic conditions; 2) the nonaccretable difference on the purchased credit impaired (“PCI”) loans will be recognized as an allowance, offset by an increase in the carrying value of the PCI loans; and 3) an allowance may be established for estimated credit losses on available-for-sale and held-to-maturity debt securities. The amount of the increase will be impacted by the portfolio composition and quality, as well as the economic conditions and forecasts as of the adoption date. The Company has began its implementation efforts by identifying key interpretive issues, and assessing its processes and identifying the system requirements against the new guidance to determine what modifications may be required. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to provide guidance on the classification of certain cash receipts and payments on the Consolidated Statements of Cash Flows in order to reduce diversity in practice. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The guidance requires application using a retrospective transition method. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires the Company to include in its cash and cash equivalents balances on the Statements of Cash Flows those amounts that are deemed to be restricted cash and restricted cash equivalents. In addition, the Company is required to explain the changes in the combined total of restricted and unrestricted balances on the Statements of Cash Flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, where the guidance should be applied using a retrospective transition method to each period presented. Early adoption is permitted. The Company is currently evaluating the impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment to simplify the accounting for goodwill impairment. An entity will no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests with measurement dates after January 1, 2017. The Company is currently evaluating the impact on its Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities , which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. Therefore, entities will no longer recognize a loss in earnings upon the debtor’s exercise of a call on a purchased callable debt security held at a premium. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized as an adjustment of yield over the contractual life (to maturity) of the instrument. ASU 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. Entities must apply a modified retrospective approach, with the cumulative effect adjustment recognized to retained earnings as of the beginning of the period of adoption. Entities are also required to provide disclosures about a change in accounting principle in the period of adoption. The Company is currently evaluating the impact on its Consolidated Financial Statements. |
Credit Quality Indicators | All loans are subject to the Company’s internal and external credit review and monitoring. Loans are risk rated based on an 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 single-family residential loans, payment performance/delinquency is the driving indicator for the risk ratings. Risk ratings are the overall credit quality indicator for the Company and the credit quality indicator utilized for estimating the appropriate allowance for loan losses. The Company utilizes a risk rating system, which can be classified within 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. Special Mention loans are considered to have potential weaknesses that warrant closer attention by management. Special Mention is considered a transitory grade. If 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 indicate 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 based on changes in the borrowers’ financial status and the loans’ collectability. |
Impaired Loans | 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. A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all scheduled payments of principal or interest due in accordance with the original contractual terms. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as 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 and the loan is classified as nonperforming and uncollectible, the deficiency is charged-off against the allowance for loan losses. Impaired loans exclude the homogeneous consumer loan portfolio, which is evaluated collectively for impairment. The Company’s impaired loans include predominantly non-PCI loans held-for-investment on nonaccrual status and any non-PCI loans modified in a TDR, which may be on accrual or nonaccrual status. |
Investments in Qualified Affordable Housing Partnerships, Net | The Company records its investments in qualified affordable housing partnerships, net, using the proportional amortization method. 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 on the Consolidated Statements of Income as a component of income tax expense. |
Goodwill and Other Intangible Assets | Core deposit intangibles 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. Goodwill is tested for impairment on an annual basis as of December 31 st , 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. |
Amortization Expense | The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. |
Earnings Per Share | EPS — Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period, plus common share equivalents calculated for warrants and RSUs outstanding using the treasury stock method. |
Fair Value Measurement and Fa25
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Quantitative information | |
Schedule of assets (liabilities) measured at fair value on a recurring basis | The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 : Assets (Liabilities) Measured at Fair Value on a Recurring Basis ($ in thousands) Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-sale investment securities: U.S. Treasury securities $ 700,860 $ 700,860 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 180,863 — 180,863 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 264,522 — 264,522 — Residential mortgage-backed securities 1,179,755 — 1,179,755 — Municipal securities 147,069 — 147,069 — Non-agency residential mortgage-backed securities: Investment grade 10,730 — 10,730 — Corporate debt securities: Investment grade 2,254 — 2,254 — Non-investment grade 9,184 — 9,184 — Foreign bonds: Investment grade 425,868 — 425,868 — Other securities 40,929 31,075 9,854 — Total available-for-sale investment securities $ 2,962,034 $ 731,935 $ 2,230,099 $ — Derivative assets: Interest rate swaps and options $ 61,586 $ — $ 61,586 $ — Foreign exchange contracts $ 8,220 $ — $ 8,220 $ — Credit risk participation agreements (“RPAs”) $ 3 $ — $ 3 $ — Derivative liabilities: Interest rate swaps on certificates of deposit $ (6,793 ) $ — $ (6,793 ) $ — Interest rate swaps and options $ (60,204 ) $ — $ (60,204 ) $ — Foreign exchange contracts $ (7,357 ) $ — $ (7,357 ) $ — RPAs $ (2 ) $ — $ (2 ) $ — Assets (Liabilities) Measured at Fair Value on a Recurring Basis ($ in thousands) Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Available-for-sale investment securities: U.S. Treasury securities $ 720,479 $ 720,479 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 274,866 — 274,866 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 266,799 — 266,799 — Residential mortgage-backed securities 1,258,747 — 1,258,747 — Municipal securities 147,654 — 147,654 — Non-agency residential mortgage-backed securities: Investment grade 11,477 — 11,477 — Corporate debt securities: Investment grade 222,377 — 222,377 — Non-investment grade 9,173 — 9,173 — Foreign bonds: Investment grade 383,894 — 383,894 — Other securities 40,329 30,991 9,338 — Total available-for-sale investment securities $ 3,335,795 $ 751,470 $ 2,584,325 $ — Derivative assets: Foreign currency forward contracts $ 4,325 $ — $ 4,325 $ — Interest rate swaps and options $ 67,578 $ — $ 67,578 $ — Foreign exchange contracts $ 11,874 $ — $ 11,874 $ — RPAs $ 3 $ — $ 3 $ — Derivative liabilities: Interest rate swaps on certificates of deposit $ (5,976 ) $ — $ (5,976 ) $ — Interest rate swaps and options $ (65,131 ) $ — $ (65,131 ) $ — Foreign exchange contracts $ (11,213 ) $ — $ (11,213 ) $ — RPAs $ (3 ) $ — $ (3 ) $ — |
Schedule of assets measured at fair value on a nonrecurring basis | The following tables present the carrying amounts of assets included on the Consolidated Balance Sheets that had fair value changes measured on a nonrecurring basis: Assets Measured at Fair Value on a Nonrecurring Basis ($ in thousands) Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Non-PCI impaired loans: Commercial real estate (“CRE”) $ 10,042 $ — $ — $ 10,042 Commercial and industrial (“C&I”) 47,829 — — 47,829 Residential 2,522 — — 2,522 Consumer 610 — — 610 Total non-PCI impaired loans $ 61,003 $ — $ — $ 61,003 OREO $ 70 $ — $ — $ 70 Assets Measured at Fair Value on a Nonrecurring Basis ($ in thousands) Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Non-PCI impaired loans: CRE $ 14,908 $ — $ — $ 14,908 C&I 52,172 — — 52,172 Residential 2,464 — — 2,464 Consumer 610 — — 610 Total non-PCI impaired loans $ 70,154 $ — $ — $ 70,154 OREO $ 345 $ — $ — $ 345 Loans held-for-sale $ 22,703 $ — $ 22,703 $ — |
Schedule of fair value adjustments of assets measured on a nonrecurring basis recognized | The following table presents the fair value adjustments of assets measured on a nonrecurring basis recognized during the three months ended and which were included on the Consolidated Balance Sheets as of March 31, 2017 and 2016 : Three Months Ended March 31, ($ in thousands) 2017 2016 Non-PCI impaired loans: CRE $ (64 ) $ 2,178 C&I 32 (1,935 ) Residential 82 (83 ) Consumer (1 ) 3 Total non-PCI impaired loans $ 49 $ 163 OREO $ (285 ) $ (461 ) Loans held-for-sale $ — $ (2,351 ) |
Schedule of the carrying and fair values per the fair value hierarchy of certain financial instruments | 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, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 2,434,643 $ 2,434,643 $ — $ — $ 2,434,643 Interest-bearing deposits with banks $ 249,849 $ — $ 249,849 $ — $ 249,849 Resale agreements (1) $ 1,650,000 $ — $ 1,628,839 $ — $ 1,628,839 Held-to-maturity investment security $ 132,497 $ — $ — $ 133,656 $ 133,656 Loans held-for-sale $ 28,931 $ — $ 28,931 $ — $ 28,931 Loans held-for-investment, net $ 26,198,198 $ — $ — $ 25,825,039 $ 25,825,039 Restricted equity securities $ 73,019 $ — $ 73,019 $ — $ 73,019 Accrued interest receivable $ 102,067 $ — $ 102,067 $ — $ 102,067 Financial liabilities: Customer deposits: Demand, interest checking, savings and money market deposits $ 24,700,811 $ — $ 24,700,811 $ — $ 24,700,811 Time deposits $ 5,842,164 $ — $ 5,837,924 $ — $ 5,837,924 Short-term borrowings $ 42,023 $ — $ 42,023 $ — $ 42,023 FHLB advances $ 322,196 $ — $ 336,619 $ — $ 336,619 Repurchase agreements (1) $ 200,000 $ — $ 260,545 $ — $ 260,545 Long-term debt $ 181,388 $ — $ 182,502 $ — $ 182,502 Accrued interest payable $ 9,626 $ — $ 9,626 $ — $ 9,626 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45, Balance Sheet Offsetting . As of March 31, 2017 , $250.0 million out of $450.0 million of repurchase agreements was eligible for netting against resale agreements. ($ in thousands) December 31, 2016 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 1,878,503 $ 1,878,503 $ — $ — $ 1,878,503 Interest-bearing deposits with banks $ 323,148 $ — $ 323,148 $ — $ 323,148 Resale agreements (1) $ 2,000,000 $ — $ 1,980,457 $ — $ 1,980,457 Held-to-maturity investment security $ 143,971 $ — $ — $ 144,593 $ 144,593 Loans held-for-sale $ 23,076 $ — $ 23,076 $ — $ 23,076 Loans held-for-investment, net $ 25,242,619 $ — $ — $ 24,915,143 $ 24,915,143 Restricted equity securities $ 72,775 $ — $ 72,775 $ — $ 72,775 Accrued interest receivable $ 100,524 $ — $ 100,524 $ — $ 100,524 Financial liabilities: Customer deposits: Demand, interest checking, savings and money market deposits $ 24,275,714 $ — $ 24,275,714 $ — $ 24,275,714 Time deposits $ 5,615,269 $ — $ 5,611,746 $ — $ 5,611,746 Short-term borrowings $ 60,050 $ — $ 60,050 $ — $ 60,050 FHLB advances $ 321,643 $ — $ 334,859 $ — $ 334,859 Repurchase agreements (1) $ 350,000 $ — $ 411,368 $ — $ 411,368 Long-term debt $ 186,327 $ — $ 186,670 $ — $ 186,670 Accrued interest payable $ 9,440 $ — $ 9,440 $ — $ 9,440 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45, Balance Sheet Offsetting . As of December 31, 2016 , $100.0 million out of $450.0 million of repurchase agreements was eligible for netting against resale agreements. |
Fair Value, Measurements, Nonrecurring | |
Quantitative information | |
Schedule of quantitative information about significant unobservable inputs used in the valuation of assets classified as Level 3 | The following table presents the quantitative information about the significant unobservable inputs used in the valuation of assets measured on a nonrecurring basis classified as Level 3 as of March 31, 2017 and December 31, 2016 : ($ in thousands) Fair Value Valuation Unobservable Range of Inputs Weighted March 31, 2017 Non-PCI impaired loans $ 31,453 Discounted cash flow Discount 0% — 74% 11% $ 29,550 Market comparables Discount (1) 0% — 100% 7% OREO $ 70 Appraisal Selling cost 8% 8% December 31, 2016 Non-PCI impaired loans $ 31,835 Discounted cash flow Discount 0% — 62% 7% $ 38,319 Market comparables Discount (1) 0% — 100% 18% OREO $ 345 Appraisal Selling cost 8% 8% (1) Discount is adjusted for factors such as liquidation cost of collateral and selling cost. |
Securities Purchased under Re26
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Resale and Repurchase Agreements [Abstract] | |
Schedule of balance sheet offsetting for resale and repurchase agreements | The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 : ($ in thousands) As of March 31, 2017 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Financial Collateral Net Amount Resale agreements $ 1,900,000 $ (250,000 ) $ 1,650,000 $ (150,000 ) (1) $ (1,488,939 ) (2) $ 11,061 Gross Amounts Gross Amounts Net Amounts of on the Gross Amounts Not Offset on the Liabilities Financial Collateral Net Amount Repurchase agreements $ 450,000 $ (250,000 ) $ 200,000 $ (150,000 ) (1) $ (50,000 ) (3) $ — ($ in thousands) As of December 31, 2016 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Financial Collateral Net Amount Resale agreements $ 2,100,000 $ (100,000 ) $ 2,000,000 $ (150,000 ) (1) $ (1,839,120 ) (2) $ 10,880 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Liabilities Financial Collateral Net Amount Repurchase agreements $ 450,000 $ (100,000 ) $ 350,000 $ (150,000 ) (1) $ (200,000 ) (3) $ — (1) Represents financial instruments subject to enforceable master netting arrangements that are not eligible to be offset under ASC 210-20-45 but would be eligible for offsetting to the extent that 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. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses and fair value by major categories of investment securities | The following tables present as of March 31, 2017 and December 31, 2016 the amortized cost, gross unrealized gains and losses and fair value by major categories of available-for-sale investment securities, which are carried at fair value, and the held-to-maturity investment security, which is carried at amortized cost: As of March 31, 2017 ($ in thousands) Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 709,332 $ 10 $ (8,482 ) $ 700,860 U.S. government agency and U.S. government sponsored enterprise debt securities 183,605 134 (2,876 ) 180,863 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 271,025 337 (6,840 ) 264,522 Residential mortgage-backed securities 1,185,382 3,855 (9,482 ) 1,179,755 Municipal securities 146,559 1,909 (1,399 ) 147,069 Non-agency residential mortgage-backed securities: Investment grade (1) 10,837 — (107 ) 10,730 Corporate debt securities: Investment grade (1) 2,476 — (222 ) 2,254 Non-investment grade (1) 10,191 — (1,007 ) 9,184 Foreign bonds: Investment grade (1) (2) 445,433 49 (19,614 ) 425,868 Other securities 40,593 853 (517 ) 40,929 Total available-for-sale investment securities $ 3,005,433 $ 7,147 $ (50,546 ) $ 2,962,034 Held-to-maturity investment security: Non-agency commercial mortgage-backed security $ 132,497 $ 1,159 $ — $ 133,656 Total investment securities $ 3,137,930 $ 8,306 $ (50,546 ) $ 3,095,690 As of December 31, 2016 ($ in thousands) Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 730,287 $ 21 $ (9,829 ) $ 720,479 U.S. government agency and U.S. government sponsored enterprise debt securities 277,891 224 (3,249 ) 274,866 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 272,672 345 (6,218 ) 266,799 Residential mortgage-backed securities 1,266,372 3,924 (11,549 ) 1,258,747 Municipal securities 148,302 1,252 (1,900 ) 147,654 Non-agency residential mortgage-backed securities: Investment grade (1) 11,592 — (115 ) 11,477 Corporate debt securities: Investment grade (1) 222,190 562 (375 ) 222,377 Non-investment grade (1) 10,191 — (1,018 ) 9,173 Foreign bonds: Investment grade (1) (2) 405,443 30 (21,579 ) 383,894 Other securities 40,501 337 (509 ) 40,329 Total available-for-sale investment securities $ 3,385,441 $ 6,695 $ (56,341 ) $ 3,335,795 Held-to-maturity investment security: Non-agency commercial mortgage-backed security $ 143,971 $ 622 $ — $ 144,593 Total investment securities $ 3,529,412 $ 7,317 $ (56,341 ) $ 3,480,388 (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. Classifications are based on the lower of the credit ratings by S&P or Moody’s. (2) Fair values of foreign bonds include $395.5 million and $353.6 million of multilateral development bank bonds as of March 31, 2017 and December 31, 2016 , respectively. |
Schedule of gross unrealized losses and related fair value of investment securities | The following tables present as of March 31, 2017 and December 31, 2016 the Company’s investment portfolio’s gross unrealized losses and related fair values, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: As of March 31, 2017 ($ in thousands) Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale investment securities: U.S. Treasury securities $ 680,801 $ (8,482 ) $ — $ — $ 680,801 $ (8,482 ) U.S. government agency and U.S. government sponsored enterprise debt securities 154,847 (2,876 ) — — 154,847 (2,876 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 212,706 (5,879 ) 35,193 (961 ) 247,899 (6,840 ) Residential mortgage-backed securities 598,526 (8,151 ) 132,328 (1,331 ) 730,854 (9,482 ) Municipal securities 45,327 (1,006 ) 6,925 (393 ) 52,252 (1,399 ) Non-agency residential mortgage-backed securities: Investment grade 10,729 (107 ) — — 10,729 (107 ) Corporate debt securities: Investment grade — — 2,254 (222 ) 2,254 (222 ) Non-investment grade — — 9,184 (1,007 ) 9,184 (1,007 ) Foreign bonds: Investment grade 380,530 (19,409 ) 9,795 (205 ) 390,325 (19,614 ) Other securities 31,013 (517 ) — — 31,013 (517 ) Total available-for-sale investment securities $ 2,114,479 $ (46,427 ) $ 195,679 $ (4,119 ) $ 2,310,158 $ (50,546 ) Held-to-maturity investment security: Non-agency commercial mortgage-backed security $ — $ — $ — $ — $ — $ — Total investment securities $ 2,114,479 $ (46,427 ) $ 195,679 $ (4,119 ) $ 2,310,158 $ (50,546 ) As of December 31, 2016 ($ in thousands) Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale investment securities: U.S. Treasury securities $ 670,268 $ (9,829 ) $ — $ — $ 670,268 $ (9,829 ) U.S. government agency and U.S. government sponsored enterprise debt securities 203,901 (3,249 ) — — 203,901 (3,249 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 202,106 (5,452 ) 29,201 (766 ) 231,307 (6,218 ) Residential mortgage-backed securities 629,324 (9,594 ) 119,603 (1,955 ) 748,927 (11,549 ) Municipal securities 57,655 (1,699 ) 2,692 (201 ) 60,347 (1,900 ) Non-agency residential mortgage-backed securities: Investment grade 5,033 (101 ) 6,444 (14 ) 11,477 (115 ) Corporate debt securities: Investment grade — — 71,667 (375 ) 71,667 (375 ) Non-investment grade — — 9,173 (1,018 ) 9,173 (1,018 ) Foreign bonds: Investment grade 363,618 (21,327 ) 14,258 (252 ) 377,876 (21,579 ) Other securities 30,991 (509 ) — — 30,991 (509 ) Total available-for-sale investment securities $ 2,162,896 $ (51,760 ) $ 253,038 $ (4,581 ) $ 2,415,934 $ (56,341 ) Held-to-maturity investment security: Non-agency commercial mortgage-backed security $ — $ — $ — $ — $ — $ — Total investment securities $ 2,162,896 $ (51,760 ) $ 253,038 $ (4,581 ) $ 2,415,934 $ (56,341 ) |
Schedule of the proceeds, gross realized gains and losses related to the sales of available-for-sale investment securities | The following table presents the proceeds, gross realized gains and losses, and tax expense related to the sales of available-for-sale investment securities for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Proceeds from sales $ 302,656 $ 652,753 Gross realized gains $ 2,474 $ 3,967 Gross realized losses $ — $ 125 Related tax expense $ 1,040 $ 1,616 |
Schedule of maturities of investment securities | The following table presents the scheduled maturities of available-for-sale investment securities as of March 31, 2017 : ($ in thousands) Amortized Cost Estimated Fair Value Due within one year $ 519,223 $ 503,271 Due after one year through five years 878,436 867,870 Due after five years through ten years 241,665 236,183 Due after ten years 1,366,109 1,354,710 Total available-for-sale investment securities $ 3,005,433 $ 2,962,034 The following table presents the scheduled maturity of the held-to-maturity investment security as of March 31, 2017 : ($ in thousands) Amortized Cost Estimated Fair Value Due after ten years $ 132,497 $ 133,656 |
Schedule of restricted equity securities | The following table presents the restricted equity securities as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Federal Reserve Bank stock $ 17,250 $ 17,250 FHLB stock 55,769 55,525 Total $ 73,019 $ 72,775 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional and fair values of derivatives | The following table presents the total notional and fair values of the Company’s derivatives as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Derivative Assets (1) Derivative Liabilities (1) Derivative Assets (1) Derivative Liabilities (1) Derivatives designated as hedging instruments: Interest rate swaps on certificates of deposit $ 48,365 $ — $ 6,793 $ 48,365 $ — $ 5,976 Foreign currency forward contracts — — — 83,026 4,325 — Total derivatives designated as hedging instruments $ 48,365 $ — $ 6,793 $ 131,391 $ 4,325 $ 5,976 Derivatives not designated as hedging instruments: Interest rate swaps and options $ 7,831,456 $ 61,586 $ 60,204 $ 7,668,482 $ 67,578 $ 65,131 Foreign exchange contracts 1,267,282 8,220 7,357 767,764 11,874 11,213 RPAs 71,396 3 2 71,414 3 3 Total derivatives not designated as hedging instruments $ 9,170,134 $ 69,809 $ 67,563 $ 8,507,660 $ 79,455 $ 76,347 (1) Derivative assets and derivative liabilities are included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets. |
Schedule of net gains (losses) recognized on the Consolidated Statements of Income related to derivatives designated as fair value hedge | The following table presents the net (losses) gains recognized on the Consolidated Statements of Income related to the derivatives designated as fair value hedges for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 (Losses) gains recorded in interest expense: Recognized on interest rate swaps $ (817 ) $ 4,229 Recognized on certificates of deposit $ 688 $ (3,356 ) |
Schedule of gains (losses) related to net investment hedges in accumulated other comprehensive income (loss) and Consolidated Statements of Income | The following table presents the losses recorded in the Foreign currency translation adjustment account within AOCI related to the effective portion of the net investment hedges and the ineffectiveness recorded on the Consolidated Statements of Income for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 Losses recognized in AOCI on net investment hedges (effective portion) $ 648 $ 1,485 Losses recognized in foreign exchange income (ineffective portion) $ 1,953 $ 880 |
Schedule of net gains (losses) recognized on the Consolidated Statements of Income related to derivatives not designated as hedging instruments | 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 for the three months ended March 31, 2017 and 2016 : ($ in thousands) Location in Consolidated Statements of Income Three Months Ended 2017 2016 Derivatives not designated as hedging instruments: Interest rate swaps and options Derivative fees and other income $ (1,066 ) $ (711 ) Foreign exchange contracts Foreign exchange income 5,838 2,828 RPAs Derivative fees and other income 1 (11 ) Net gains $ 4,773 $ 2,106 |
Schedule of gross derivatives on the Consolidated Balance Sheets and the respective collateral received or pledged in the form of other financial instruments | The following tables present gross derivatives on the Consolidated Balance Sheets and the respective collateral 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, 2017 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts Net Amounts Gross Amounts Not Offset on the Derivative Amount Collateral Net Amount Derivatives Assets $ 69,809 $ 44,570 $ 25,239 $ — $ 25,239 $ (20,964 ) (1) $ (4,162 ) (2) $ 113 Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts Net Amounts Gross Amounts Not Offset on the Derivative Amount Collateral Net Amount Derivatives Liabilities $ 74,356 $ 22,699 $ 51,657 $ — $ 51,657 $ (20,964 ) (1) $ (29,833 ) (3) $ 860 ($ in thousands) As of December 31, 2016 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts Offset on the Consolidated Balance Sheets Net Amounts Gross Amounts Not Offset on the Derivative Collateral Net Amount Derivatives Assets $ 83,780 $ 51,218 $ 32,562 $ — $ 32,562 $ (20,991 ) (1) $ (10,687 ) (2) $ 884 Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts of Recognized Gross Amounts Offset on the Consolidated Balance Sheets Net Amounts Gross Amounts Not Offset on the Derivative Collateral Net Amount Derivatives Liabilities $ 82,323 $ 24,097 $ 58,226 $ — $ 58,226 $ (20,991 ) (1) $ (36,349 ) (3) $ 886 (1) Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable master netting arrangements if the Company has elected to net. (2) Represents $1.0 million and $8.1 million of cash collateral received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements as of March 31, 2017 and December 31, 2016 , respectively. (3) Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements. Includes approximately $1.2 million and $170 thousand of cash collateral posted as of March 31, 2017 and December 31, 2016 , respectively. |
Loans Receivable and Allowanc29
Loans Receivable and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of composition of non-PCI and PCI loans | The following table presents the composition of the Company’s non-PCI and PCI loans as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Non-PCI Loans (1) PCI Loans (2) Total (1)(2) Non-PCI Loans (1) PCI Loans (2) Total (1)(2) CRE: Income producing $ 7,964,224 $ 337,874 $ 8,302,098 $ 7,667,661 $ 348,448 $ 8,016,109 Construction 562,560 — 562,560 551,560 — 551,560 Land 120,885 1,347 122,232 121,276 1,918 123,194 Total CRE 8,647,669 339,221 8,986,890 8,340,497 350,366 8,690,863 C&I: Commercial business 9,176,747 32,110 9,208,857 8,921,246 38,387 8,959,633 Trade finance 709,215 — 709,215 680,930 — 680,930 Total C&I 9,885,962 32,110 9,918,072 9,602,176 38,387 9,640,563 Residential: Single-family 3,566,739 133,333 3,700,072 3,370,669 139,110 3,509,779 Multifamily 1,643,167 89,528 1,732,695 1,490,285 95,654 1,585,939 Total residential 5,209,906 222,861 5,432,767 4,860,954 234,764 5,095,718 Consumer 2,106,091 17,472 2,123,563 2,057,067 18,928 2,075,995 Total loans held-for-investment $ 25,849,628 $ 611,664 $ 26,461,292 $ 24,860,694 $ 642,445 $ 25,503,139 Allowance for loan losses (263,007 ) (87 ) (263,094 ) (260,402 ) (118 ) (260,520 ) Loans held-for-investment, net $ 25,586,621 $ 611,577 $ 26,198,198 $ 24,600,292 $ 642,327 $ 25,242,619 (1) Includes $(4.7) million and $1.2 million as of March 31, 2017 and December 31, 2016 , respectively, of net deferred loan fees, unamortized premiums and unaccreted discounts. (2) Loans net of ASC 310-30 discount. |
Summary of credit risk rating for non-PCI and PCI loans by portfolio segment | The following tables present the credit risk rating for non-PCI loans by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Pass/Watch Special Mention Substandard Doubtful Loss Total CRE: Income producing $ 7,800,487 $ 23,362 $ 140,375 $ — $ — $ 7,964,224 Construction 530,278 32,282 — — — 562,560 Land 109,013 — 11,872 — — 120,885 C&I: Commercial business 8,827,318 139,251 185,249 24,929 — 9,176,747 Trade finance 677,654 3,566 27,995 — — 709,215 Residential: Single-family 3,533,047 8,693 24,999 — — 3,566,739 Multifamily 1,619,193 1,284 22,690 — — 1,643,167 Consumer 2,087,485 6,907 11,699 — — 2,106,091 Total $ 25,184,475 $ 215,345 $ 424,879 $ 24,929 $ — $ 25,849,628 December 31, 2016 ($ in thousands) Pass/Watch Special Mention Substandard Doubtful Loss Total Non-PCI Loans CRE: Income producing $ 7,476,804 $ 29,005 $ 161,852 $ — $ — $ 7,667,661 Construction 551,560 — — — — 551,560 Land 107,976 — 13,290 10 — 121,276 C&I: Commercial business 8,559,674 155,276 201,139 5,157 — 8,921,246 Trade finance 635,027 9,435 36,460 — 8 680,930 Residential: Single-family 3,341,015 10,179 19,475 — — 3,370,669 Multifamily 1,462,522 2,268 25,495 — — 1,490,285 Consumer 2,043,405 6,764 6,898 — — 2,057,067 Total $ 24,177,983 $ 212,927 $ 464,609 $ 5,167 $ 8 $ 24,860,694 The following tables present the credit risk rating for PCI loans by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Pass/Watch Special Mention Substandard Total PCI Loans CRE: Income producing $ 282,099 $ 573 $ 55,202 $ 337,874 Land 1,012 — 335 1,347 C&I: Commercial business 27,884 680 3,546 32,110 Residential: Single-family 130,031 1,522 1,780 133,333 Multifamily 80,510 — 9,018 89,528 Consumer 15,559 374 1,539 17,472 Total (1) $ 537,095 $ 3,149 $ 71,420 $ 611,664 December 31, 2016 ($ in thousands) Pass/Watch Special Mention Substandard Total PCI Loans CRE: Income producing $ 293,529 $ 3,239 $ 51,680 $ 348,448 Land 1,562 — 356 1,918 C&I: Commercial business 33,885 772 3,730 38,387 Residential: Single-family 136,245 1,239 1,626 139,110 Multifamily 86,190 — 9,464 95,654 Consumer 17,433 316 1,179 18,928 Total (1) $ 568,844 $ 5,566 $ 68,035 $ 642,445 (1) Loans net of ASC 310-30 discount. |
Schedule of aging analysis on non-PCI loans | The following tables present the aging analysis on non-PCI loans as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Nonaccrual Loans Less Than 90 Days Past Due Nonaccrual Loans 90 or More Days Past Due Total Nonaccrual Loans Current Accruing Loans Total Non-PCI Loans CRE: Income producing $ 3,132 $ — $ 3,132 $ 11,596 $ 22,120 $ 33,716 $ 7,927,376 $ 7,964,224 Construction — — — — — — 562,560 562,560 Land — — — 47 4,453 4,500 116,385 120,885 C&I: Commercial business 8,478 5 8,483 47,238 44,855 92,093 9,076,171 9,176,747 Trade finance — — — — — — 709,215 709,215 Residential: Single-family 2,211 5,246 7,457 — 5,643 5,643 3,553,639 3,566,739 Multifamily 4,801 904 5,705 1,030 1,192 2,222 1,635,240 1,643,167 Consumer 3,352 444 3,796 156 2,825 2,981 2,099,314 2,106,091 Total $ 21,974 $ 6,599 $ 28,573 $ 60,067 $ 81,088 $ 141,155 $ 25,679,900 $ 25,849,628 December 31, 2016 ($ in thousands) Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Nonaccrual Loans Less Than 90 Days Past Due Nonaccrual Loans 90 or More Days Past Due Total Nonaccrual Loans Current Accruing Loans Total CRE: Income producing $ 6,233 $ 14,080 $ 20,313 $ 14,872 $ 12,035 $ 26,907 $ 7,620,441 $ 7,667,661 Construction 4,994 — 4,994 — — — 546,566 551,560 Land — — — 433 4,893 5,326 115,950 121,276 C&I: Commercial business 45,052 2,279 47,331 60,511 20,737 81,248 8,792,667 8,921,246 Trade finance — — — 8 — 8 680,922 680,930 Residential: Single-family 9,595 8,076 17,671 — 4,214 4,214 3,348,784 3,370,669 Multifamily 3,951 374 4,325 2,790 194 2,984 1,482,976 1,490,285 Consumer 3,327 3,228 6,555 165 1,965 2,130 2,048,382 2,057,067 Total $ 73,152 $ 28,037 $ 101,189 $ 78,779 $ 44,038 $ 122,817 $ 24,636,688 $ 24,860,694 |
Summary of additions and modifications to non-PCI troubled debt restructurings | The following table presents the additions to non-PCI TDRs for the three months ended March 31, 2017 and 2016 : Loans Modified as TDRs During the Three Months Ended March 31, ($ in thousands) 2017 2016 Number Pre- Modification Post- Modification (1) Financial (2) Number Pre- Modification Post- Modification (1) Financial (2) CRE: Income producing 1 $ 1,526 $ 1,505 $ — 2 $ 13,775 $ 13,758 $ — Land 2 $ 86 $ — $ — — $ — $ — $ — C&I: Commercial business 2 $ 6,448 $ 4,914 $ 1,273 4 $ 21,614 $ 18,577 $ 97 Trade finance — $ — $ — $ — 2 $ 7,901 $ 8,082 $ — Residential: Single-family — $ — $ — $ — 1 $ 276 $ 272 $ — Consumer — $ — $ — $ — 1 $ 344 $ 345 $ 1 (1) Includes subsequent payments after modification and reflects the balance as of March 31, 2017 and 2016 . (2) The financial impact includes charge-offs and specific reserves recorded at the modification date. The following table presents the non-PCI TDR modifications for the three months ended March 31, 2017 and 2016 by modification type: ($ in thousands) Modification Type During the Three Month Ended March 31, 2017 2016 Principal (1) Principal and Interest (2) Interest Rate Reduction Other Total Principal (1) Principal and Interest (2) Interest Rate Reduction Other Total CRE $ 1,505 $ — $ — $ — $ 1,505 $ 13,730 $ — $ — $ 28 $ 13,758 C&I — 4,914 — — 4,914 19,112 — 3,615 3,932 26,659 Residential — — — — — 272 — — — 272 Consumer — — — — — 345 — — — 345 Total $ 1,505 $ 4,914 $ — $ — $ 6,419 $ 33,459 $ — $ 3,615 $ 3,960 $ 41,034 (1) Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only. (2) Includes principal and interest deferments or reductions. The following table presents information for loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three months ended March 31, 2017 and 2016 , and were still in default at the respective period end: Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31, 2017 2016 ($ in thousands) Number of Recorded Number of Recorded C&I: Commercial business 1 $ 2,718 4 $ 966 |
Summary of non-PCI impaired loans | The following tables present information on the non-PCI impaired loans as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance CRE: Income producing $ 48,832 $ 34,984 $ 9,528 $ 44,512 $ 1,159 Land 5,050 4,453 47 4,500 6 C&I: Commercial business 182,965 101,963 34,031 135,994 6,218 Trade finance 3,449 3,438 — 3,438 — Residential: Single-family 16,132 1,864 13,172 15,036 611 Multifamily 10,132 5,649 3,575 9,224 121 Consumer 4,897 670 3,855 4,525 32 Total $ 271,457 $ 153,021 $ 64,208 $ 217,229 $ 8,147 December 31, 2016 ($ in thousands) Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance CRE: Income producing $ 50,718 $ 32,507 $ 14,001 $ 46,508 $ 1,263 Land 6,457 5,427 443 5,870 63 C&I: Commercial business 162,239 78,316 42,137 120,453 10,443 Trade finance 5,227 — 5,166 5,166 34 Residential: Single-family 15,435 — 14,335 14,335 687 Multifamily 11,181 5,684 4,357 10,041 180 Consumer 4,016 — 3,682 3,682 31 Total $ 255,273 $ 121,934 $ 84,121 $ 206,055 $ 12,701 |
Schedule of average recorded investment and interest income recognized on non-PCI impaired loans | The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans during the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Average Recorded Investment Recognized Interest Income (1) Average Recognized Interest Income (1) CRE: Income producing $ 44,772 $ 35 $ 71,767 $ 391 Land 4,717 — 6,952 9 C&I: Commercial business 138,931 214 94,505 369 Trade finance 4,283 7 13,737 66 Residential: Single-family 15,096 22 18,356 65 Multifamily 9,269 38 22,345 77 Consumer 4,533 12 1,638 16 Total non-PCI impaired loans $ 221,601 $ 328 $ 229,300 $ 993 (1) Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal and not as interest income. |
Summary of activities in the allowance for credit losses | The following tables present a summary of activities in the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 ($ in thousands) Non-PCI Loans PCI Loans CRE C&I Residential Consumer Total Total Beginning balance $ 72,804 $ 142,166 $ 37,333 $ 8,099 $ 260,402 $ 118 $ 260,520 Provision for (reversal of) loan losses 1,639 1,946 3,835 626 8,046 (31 ) 8,015 Charge-offs (148 ) (7,057 ) — (4 ) (7,209 ) — (7,209 ) Recoveries 593 455 578 142 1,768 — 1,768 Net recoveries (charge-offs) 445 (6,602 ) 578 138 (5,441 ) — (5,441 ) Ending balance $ 74,888 $ 137,510 $ 41,746 $ 8,863 $ 263,007 $ 87 $ 263,094 Three Months Ended March 31, 2016 ($ in thousands) Non-PCI Loans PCI Loans Total CRE C&I Residential Consumer Total Beginning balance $ 81,191 $ 134,597 $ 39,292 $ 9,520 $ 264,600 $ 359 $ 264,959 Provision for (reversal of) loan losses 1,306 4,654 (5,317 ) (226 ) 417 (31 ) 386 Charge-offs (56 ) (5,860 ) (137 ) (1 ) (6,054 ) — (6,054 ) Recoveries 97 686 97 67 947 — 947 Net recoveries (charge-offs) 41 (5,174 ) (40 ) 66 (5,107 ) — (5,107 ) Ending balance $ 82,538 $ 134,077 $ 33,935 $ 9,360 $ 259,910 $ 328 $ 260,238 The following table presents a summary of activities in the allowance for unfunded credit reserves during the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 Beginning balance $ 16,121 $ 20,360 (Reversal of) provision for unfunded credit reserves (947 ) 1,054 Ending balance $ 15,174 $ 21,414 |
Summary of allowance for loan losses and recorded investments by portfolio segment and impairment methodology | The following tables present the Company’s allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) CRE C&I Residential Consumer Total Allowance for loan losses Individually evaluated for impairment $ 1,165 $ 6,218 $ 732 $ 32 $ 8,147 Collectively evaluated for impairment 73,723 131,292 41,014 8,831 254,860 Acquired with deteriorated credit quality 86 — 1 — 87 Ending balance $ 74,974 $ 137,510 $ 41,747 $ 8,863 $ 263,094 Recorded investment in loans Individually evaluated for impairment $ 49,012 $ 139,432 $ 24,260 $ 4,525 $ 217,229 Collectively evaluated for impairment 8,598,657 9,746,530 5,185,646 2,101,566 25,632,399 Acquired with deteriorated credit quality (1) 339,221 32,110 222,861 17,472 611,664 Ending balance (1) $ 8,986,890 $ 9,918,072 $ 5,432,767 $ 2,123,563 $ 26,461,292 December 31, 2016 ($ in thousands) CRE C&I Residential Consumer Total Allowance for loan losses Individually evaluated for impairment $ 1,326 $ 10,477 $ 867 $ 31 $ 12,701 Collectively evaluated for impairment 71,478 131,689 36,466 8,068 247,701 Acquired with deteriorated credit quality 112 1 5 — 118 Ending balance $ 72,916 $ 142,167 $ 37,338 $ 8,099 $ 260,520 Recorded investment in loans Individually evaluated for impairment $ 52,378 $ 125,619 $ 24,376 $ 3,682 $ 206,055 Collectively evaluated for impairment 8,288,119 9,476,557 4,836,578 2,053,385 24,654,639 Acquired with deteriorated credit quality (1) 350,366 38,387 234,764 18,928 642,445 Ending balance (1) $ 8,690,863 $ 9,640,563 $ 5,095,718 $ 2,075,995 $ 25,503,139 (1) Loans net of ASC 310-30 discount. |
Summary of changes in accretable yield for PCI loans | The following table presents the changes in accretable yield for PCI loans for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Beginning balance $ 136,247 $ 214,907 Accretion (10,279 ) (22,429 ) Changes in expected cash flows 2,022 (6,487 ) Ending balance $ 127,990 $ 185,991 |
Investments in Qualified Affo30
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net [Abstract] | |
Schedule of investments in qualified affordable housing partnerships, net and related unfunded commitments | The following table presents the balances of the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of the periods indicated: ($ in thousands) March 31, 2017 December 31, 2016 Investments in qualified affordable housing partnerships, net $ 176,965 $ 183,917 Accrued expenses and other liabilities — Unfunded commitments $ 52,223 $ 57,243 |
Schedule of additional information related to investments in qualified affordable housing partnerships, net | The following table presents additional information related to the Company’s investments in qualified affordable housing partnerships, net, for the periods indicated: ($ in thousands) Three Months Ended 2017 2016 Tax credits and other tax benefits recognized $ 9,621 $ 9,452 Amortization expense included in income tax expense $ 6,950 $ 6,966 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The following table presents the gross carrying value of intangible assets and accumulated amortization as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Gross balance $ 108,814 $ 108,814 Accumulated amortization 82,642 80,825 Net carrying balance $ 26,172 $ 27,989 |
Schedule of estimated future amortization expense of core deposit intangibles | The following table presents the estimated future amortization expense of core deposit intangibles: Year Ended December 31, Amount ($ in thousands) Remainder of 2017 $ 5,118 2018 5,883 2019 4,864 2020 3,846 2021 2,833 Thereafter 3,628 Total $ 26,172 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of credit-related commitments | The following table presents the Company’s credit-related commitments as of the periods indicated: ($ in thousands) March 31, 2017 December 31, 2016 Loan commitments $ 5,007,903 $ 5,077,869 Commercial letters of credit and SBLCs $ 1,695,083 $ 1,525,613 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock compensation expense and related net tax benefit | The following table presents a summary of the total share-based compensation expense and the related net tax benefit associated with the Company’s various employee share-based compensation plans for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 Stock compensation costs $ 5,151 $ 4,575 Related net tax benefit for stock compensation plans $ 4,414 $ 986 |
Summary of activity for time-based and performance-based restricted stock units | The following table presents a summary of the activity for the Company’s time-based and performance-based RSUs for the three months ended March 31, 2017 based on the target amount of awards: Three Months Ended March 31, 2017 Time-Based RSUs Performance-Based RSUs Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Outstanding at beginning of period 1,218,714 $ 35.92 410,746 $ 35.27 Granted 330,762 54.49 131,597 56.59 Vested (279,549 ) 36.84 (118,044 ) 36.85 Forfeited (61,193 ) 39.25 — — Outstanding at end of period 1,208,734 $ 40.62 424,299 $ 41.44 |
Stockholders' Equity and Earn34
Stockholders' Equity and Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
Schedule of earnings per share calculations | The following table presents the EPS calculations for the three months ended March 31, 2017 and 2016 : Three Months Ended ($ and shares in thousands, except per share data) 2017 2016 Basic Net income $ 169,736 $ 107,516 Basic weighted average number of shares outstanding 144,249 143,958 Basic EPS $ 1.18 $ 0.75 Diluted Net income $ 169,736 $ 107,516 Basic weighted average number of shares outstanding 144,249 143,958 Diluted potential common shares (1) 1,483 845 Diluted weighted average number of shares outstanding 145,732 144,803 Diluted EPS $ 1.16 $ 0.74 (1) Includes dilutive shares from RSUs and warrants for the three months ended March 31, 2017 and 2016 . |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of the changes in components of accumulated other comprehensive income (loss) balances | The following table presents the changes in the components of AOCI balances for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Available- Foreign (1) Total Available- Foreign (1) Total Beginning balance $ (28,772 ) $ (19,374 ) $ (48,146 ) $ (6,144 ) $ (8,797 ) $ (14,941 ) Net unrealized gains (losses) arising during the period 5,055 1,007 6,062 15,142 (33 ) 15,109 Amounts reclassified from AOCI (1,434 ) — (1,434 ) (2,226 ) — (2,226 ) Changes, net of taxes 3,621 1,007 4,628 12,916 (33 ) 12,883 Ending balance $ (25,151 ) $ (18,367 ) $ (43,518 ) $ 6,772 $ (8,830 ) $ (2,058 ) (1) Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was Chinese Renminbi and USD, respectively. |
Schedule of components of other comprehensive income, reclassifications to net income and the related tax effects | The following table presents the components of other comprehensive income, reclassifications to net income and the related tax effects for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Available-for-sale investment securities: Net unrealized gains arising during the period $ 8,721 $ (3,666 ) $ 5,055 $ 26,130 $ (10,988 ) $ 15,142 Net realized gains reclassified into net income (1) (2,474 ) 1,040 (1,434 ) (3,842 ) 1,616 (2,226 ) Net change 6,247 (2,626 ) 3,621 22,288 (9,372 ) 12,916 Foreign currency translation adjustments: Net unrealized gains (losses) arising during period 1,007 — 1,007 (33 ) — (33 ) Net change 1,007 — 1,007 (33 ) — (33 ) Other comprehensive income $ 7,254 $ (2,626 ) $ 4,628 $ 22,255 $ (9,372 ) $ 12,883 (1) For the three months ended March 31, 2017 and 2016 , the pretax amounts were reported in Net gains on sales of available-for-sale investment securities on the Consolidated Statements of Income. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of operating results and other key financial measures by operating segments | The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 Retail Banking Commercial Banking Other Total Interest income $ 81,648 $ 191,796 $ 29,225 $ 302,669 Charge for funds used (27,860 ) (64,387 ) (28,167 ) (120,414 ) Interest spread on funds used 53,788 127,409 1,058 182,255 Interest expense (16,173 ) (5,108 ) (9,266 ) (30,547 ) Credit on funds provided 102,528 12,061 5,825 120,414 Interest spread on funds provided 86,355 6,953 (3,441 ) 89,867 Net interest income (loss) before provision for credit losses $ 140,143 $ 134,362 $ (2,383 ) $ 272,122 Provision for credit losses $ 381 $ 6,687 $ — $ 7,068 Depreciation, amortization and (accretion), net $ 2,344 $ (3,474 ) $ 29,260 $ 28,130 Segment income before income taxes $ 73,361 $ 91,798 $ 62,845 $ 228,004 As of March 31, 2017: Goodwill $ 357,207 $ 112,226 $ — $ 469,433 Segment assets $ 8,213,268 $ 19,624,237 $ 7,504,621 $ 35,342,126 ($ in thousands) Three Months Ended March 31, 2016 Retail Commercial Other Total Interest income $ 77,371 $ 177,082 $ 21,719 $ 276,172 Charge for funds used (22,652 ) (53,791 ) (11,837 ) (88,280 ) Interest spread on funds used 54,719 123,291 9,882 187,892 Interest expense (14,606 ) (4,026 ) (5,336 ) (23,968 ) Credit on funds provided 72,431 9,977 5,872 88,280 Interest spread on funds provided 57,825 5,951 536 64,312 Net interest income before provision for credit losses $ 112,544 $ 129,242 $ 10,418 $ 252,204 (Reversal of) provision for credit losses $ (1,582 ) $ 3,022 $ — $ 1,440 Depreciation, amortization and (accretion), net $ 43 $ (10,773 ) $ 23,488 $ 12,758 Segment income before income taxes $ 45,945 $ 92,829 $ 5,897 $ 144,671 As of March 31, 2016: Goodwill $ 357,207 $ 112,226 $ — $ 469,433 Segment assets $ 7,203,470 $ 17,939,537 $ 7,966,162 $ 33,109,169 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Mar. 31, 2017trust |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly-owned subsidiaries that are statutory business trusts (the Trusts) | 6 |
Current Accounting Developmen38
Current Accounting Developments (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Net excess tax benefits for restricted stock units | $ 4.4 |
Disposition of Commercial Pro39
Disposition of Commercial Property (Details) - Commercial Property in San Francisco $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)$ / shares | |
Sale Leaseback Transaction [Line Items] | |
Sale price | $ 120.6 |
Pre-tax profit from sale | 85.4 |
Current period gain recognized | 71.7 |
Deferred gain | $ 13.7 |
Impact from sale on diluted EPS (in dollars per share) | $ / shares | $ 0.28 |
Fair Value Measurement and Fa40
Fair Value Measurement and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment securities available-for-sale | ||
Available-for-sale investment securities | $ 2,962,034 | $ 3,335,795 |
Derivative | ||
Derivative assets | 69,809 | 83,780 |
Derivative liabilities | (74,356) | (82,323) |
U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 700,860 | 720,479 |
U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 180,863 | 274,866 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 264,522 | 266,799 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 1,179,755 | 1,258,747 |
Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 147,069 | 147,654 |
Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 10,730 | 11,477 |
Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 2,254 | 222,377 |
Corporate debt securities | Non-investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,184 | 9,173 |
Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 425,868 | 383,894 |
Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 40,929 | 40,329 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 731,935 | 751,470 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 700,860 | 720,479 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 31,075 | 30,991 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 2,230,099 | 2,584,325 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 61,586 | 67,578 |
Derivative liabilities | (60,204) | (65,131) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets | 8,220 | 11,874 |
Derivative liabilities | (7,357) | (11,213) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | RPAs | ||
Derivative | ||
Derivative assets | 3 | 3 |
Derivative liabilities | (2) | (3) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps on certificates of deposit | ||
Derivative | ||
Derivative liabilities | (6,793) | (5,976) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency forward contracts | ||
Derivative | ||
Derivative assets | 4,325 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 180,863 | 274,866 |
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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 264,522 | 266,799 |
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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 1,179,755 | 1,258,747 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 147,069 | 147,654 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 10,730 | 11,477 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 2,254 | 222,377 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Non-investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,184 | 9,173 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 425,868 | 383,894 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,854 | 9,338 |
Fair Value, Measurements, Recurring | Estimated Fair Value | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 2,962,034 | 3,335,795 |
Fair Value, Measurements, Recurring | Estimated Fair Value | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 61,586 | 67,578 |
Derivative liabilities | (60,204) | (65,131) |
Fair Value, Measurements, Recurring | Estimated Fair Value | Foreign exchange contracts | ||
Derivative | ||
Derivative assets | 8,220 | 11,874 |
Derivative liabilities | (7,357) | (11,213) |
Fair Value, Measurements, Recurring | Estimated Fair Value | RPAs | ||
Derivative | ||
Derivative assets | 3 | 3 |
Derivative liabilities | (2) | (3) |
Fair Value, Measurements, Recurring | Estimated Fair Value | Interest rate swaps on certificates of deposit | ||
Derivative | ||
Derivative liabilities | (6,793) | (5,976) |
Fair Value, Measurements, Recurring | Estimated Fair Value | Foreign currency forward contracts | ||
Derivative | ||
Derivative assets | 4,325 | |
Fair Value, Measurements, Recurring | Estimated Fair Value | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 700,860 | 720,479 |
Fair Value, Measurements, Recurring | Estimated Fair Value | U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 180,863 | 274,866 |
Fair Value, Measurements, Recurring | Estimated Fair Value | U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 264,522 | 266,799 |
Fair Value, Measurements, Recurring | Estimated Fair Value | U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 1,179,755 | 1,258,747 |
Fair Value, Measurements, Recurring | Estimated Fair Value | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 147,069 | 147,654 |
Fair Value, Measurements, Recurring | Estimated Fair Value | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 10,730 | 11,477 |
Fair Value, Measurements, Recurring | Estimated Fair Value | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 2,254 | 222,377 |
Fair Value, Measurements, Recurring | Estimated Fair Value | Corporate debt securities | Non-investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,184 | 9,173 |
Fair Value, Measurements, Recurring | Estimated Fair Value | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 425,868 | 383,894 |
Fair Value, Measurements, Recurring | Estimated Fair Value | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | $ 40,929 | $ 40,329 |
Fair Value Measurement and Fa41
Fair Value Measurement and Fair Value of Financial Instruments (Details 2) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-sale | $ 22,703 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-sale | 22,703 | |
Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | $ 61,003 | 70,154 |
Non-PCI impaired loans | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 61,003 | 70,154 |
Non-PCI impaired loans | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 10,042 | 14,908 |
Non-PCI impaired loans | CRE | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 10,042 | 14,908 |
Non-PCI impaired loans | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 47,829 | 52,172 |
Non-PCI impaired loans | C&I | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 47,829 | 52,172 |
Non-PCI impaired loans | Residential | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 2,522 | 2,464 |
Non-PCI impaired loans | Residential | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 2,522 | 2,464 |
Non-PCI impaired loans | Consumer | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 610 | 610 |
Non-PCI impaired loans | Consumer | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 610 | 610 |
OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 70 | 345 |
OREO | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | $ 70 | $ 345 |
Fair Value Measurement and Fa42
Fair Value Measurement and Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Loans held-for-sale | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | $ 69 | $ 2,400 |
Fair Value, Measurements, Nonrecurring | OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | (285) | (461) |
Fair Value, Measurements, Nonrecurring | Loans held-for-sale | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | 0 | (2,351) |
Fair Value, Measurements, Nonrecurring | Loans Receivable | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | 49 | 163 |
Fair Value, Measurements, Nonrecurring | Loans Receivable | Non-PCI impaired loans | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | (64) | 2,178 |
Fair Value, Measurements, Nonrecurring | Loans Receivable | Non-PCI impaired loans | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | 32 | (1,935) |
Fair Value, Measurements, Nonrecurring | Loans Receivable | Non-PCI impaired loans | Residential | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | 82 | (83) |
Fair Value, Measurements, Nonrecurring | Loans Receivable | Non-PCI impaired loans | Consumer | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | $ (1) | $ 3 |
Fair Value Measurement and Fa43
Fair Value Measurement and Fair Value of Financial Instruments (Details 4) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Non-PCI impaired loans | ||
Quantitative information | ||
Impaired loans | $ 61,003 | $ 70,154 |
OREO | ||
Quantitative information | ||
OREO | 70 | 345 |
Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | ||
Quantitative information | ||
Impaired loans | 61,003 | 70,154 |
Significant Unobservable Inputs (Level 3) | OREO | ||
Quantitative information | ||
OREO | 70 | 345 |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI impaired loans | Discounted cash flow | ||
Quantitative information | ||
Impaired loans | $ 31,453 | $ 31,835 |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI impaired loans | Discounted cash flow | Minimum | ||
Quantitative information | ||
Discount rate (as a percent) | 0.00% | 0.00% |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI impaired loans | Discounted cash flow | Maximum | ||
Quantitative information | ||
Discount rate (as a percent) | 74.00% | 62.00% |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI impaired loans | Discounted cash flow | Weighted Average | ||
Quantitative information | ||
Discount rate (as a percent) | 11.00% | 7.00% |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI impaired loans | Market comparables | ||
Quantitative information | ||
Impaired loans | $ 29,550 | $ 38,319 |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI impaired loans | Market comparables | Minimum | ||
Quantitative information | ||
Discount rate (as a percent) | 0.00% | 0.00% |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI impaired loans | Market comparables | Maximum | ||
Quantitative information | ||
Discount rate (as a percent) | 100.00% | 100.00% |
Significant Unobservable Inputs (Level 3) | Loans Receivable | Non-PCI impaired loans | Market comparables | Weighted Average | ||
Quantitative information | ||
Discount rate (as a percent) | 7.00% | 18.00% |
Significant Unobservable Inputs (Level 3) | Loans Receivable | OREO | Appraisal | ||
Quantitative information | ||
OREO | $ 70 | $ 345 |
Selling cost (as a percent) | 8.00% | 8.00% |
Significant Unobservable Inputs (Level 3) | Loans Receivable | OREO | Appraisal | Weighted Average | ||
Quantitative information | ||
Selling cost (as a percent) | 8.00% | 8.00% |
Fair Value Measurement and Fa44
Fair Value Measurement and Fair Value of Financial Instruments (Details 5) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||||
Cash and cash equivalents | $ 2,434,643 | $ 1,878,503 | $ 2,265,297 | $ 1,360,887 |
Interest-bearing deposits with banks | 249,849 | 323,148 | ||
Resale agreements | 1,650,000 | 2,000,000 | ||
Held-to-maturity investment security | 132,497 | 143,971 | ||
Loans held-for-sale | 28,931 | 23,076 | ||
Loans held-for-investment, net | 26,198,198 | 25,242,619 | ||
Restricted equity securities | 73,019 | 72,775 | ||
Customer deposits: | ||||
Short-term borrowings | 42,023 | 60,050 | ||
FHLB advances | 322,196 | 321,643 | ||
Repurchase agreements | 200,000 | 350,000 | ||
Long-term debt | 181,388 | 186,327 | ||
Carrying amount of repurchase agreements eligible for netting against resale agreements | 250,000 | 100,000 | ||
Gross repurchase agreements | 450,000 | 450,000 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,434,643 | 1,878,503 | ||
Interest-bearing deposits with banks | 249,849 | 323,148 | ||
Resale agreements | 1,650,000 | 2,000,000 | ||
Held-to-maturity investment security | 132,497 | 143,971 | ||
Loans held-for-sale | 28,931 | 23,076 | ||
Loans held-for-investment, net | 26,198,198 | 25,242,619 | ||
Restricted equity securities | 73,019 | 72,775 | ||
Accrued interest receivable | 102,067 | 100,524 | ||
Customer deposits: | ||||
Demand, interest checking, savings and money market deposits | 24,700,811 | 24,275,714 | ||
Time deposits | 5,842,164 | 5,615,269 | ||
Short-term borrowings | 42,023 | 60,050 | ||
FHLB advances | 322,196 | 321,643 | ||
Repurchase agreements | 200,000 | 350,000 | ||
Long-term debt | 181,388 | 186,327 | ||
Accrued interest payable | 9,626 | 9,440 | ||
Estimated Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,434,643 | 1,878,503 | ||
Interest-bearing deposits with banks | 249,849 | 323,148 | ||
Resale agreements | 1,628,839 | 1,980,457 | ||
Held-to-maturity investment security | 133,656 | 144,593 | ||
Loans held-for-sale | 28,931 | 23,076 | ||
Loans held-for-investment, net | 25,825,039 | 24,915,143 | ||
Restricted equity securities | 73,019 | 72,775 | ||
Accrued interest receivable | 102,067 | 100,524 | ||
Customer deposits: | ||||
Demand, interest checking, savings and money market deposits | 24,700,811 | 24,275,714 | ||
Time deposits | 5,837,924 | 5,611,746 | ||
Short-term borrowings | 42,023 | 60,050 | ||
FHLB advances | 336,619 | 334,859 | ||
Repurchase agreements | 260,545 | 411,368 | ||
Long-term debt | 182,502 | 186,670 | ||
Accrued interest payable | 9,626 | 9,440 | ||
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,434,643 | 1,878,503 | ||
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||||
Financial assets: | ||||
Interest-bearing deposits with banks | 249,849 | 323,148 | ||
Resale agreements | 1,628,839 | 1,980,457 | ||
Loans held-for-sale | 28,931 | 23,076 | ||
Restricted equity securities | 73,019 | 72,775 | ||
Accrued interest receivable | 102,067 | 100,524 | ||
Customer deposits: | ||||
Demand, interest checking, savings and money market deposits | 24,700,811 | 24,275,714 | ||
Time deposits | 5,837,924 | 5,611,746 | ||
Short-term borrowings | 42,023 | 60,050 | ||
FHLB advances | 336,619 | 334,859 | ||
Repurchase agreements | 260,545 | 411,368 | ||
Long-term debt | 182,502 | 186,670 | ||
Accrued interest payable | 9,626 | 9,440 | ||
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | ||||
Financial assets: | ||||
Held-to-maturity investment security | 133,656 | 144,593 | ||
Loans held-for-investment, net | $ 25,825,039 | $ 24,915,143 |
Fair Value Measurement and Fa45
Fair Value Measurement and Fair Value of Financial Instruments (Details 6) | 3 Months Ended |
Mar. 31, 2017 | |
Loans Receivable | Non-PCI impaired loans | |
Fair Values of Financial Assets | |
Period for updated appraisals and evaluations of impaired loans | 12 months |
Securities Purchased under Re46
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Resale agreements | ||
Gross resale agreements | $ 1,900,000 | $ 2,100,000 |
Weighted average interest rates (as a percent) | 2.15% | 1.84% |
Repurchase agreements | ||
Gross repurchase agreements | $ 450,000 | $ 450,000 |
Weighted average interest rates (as a percent) | 3.30% | 3.15% |
Securities Purchased under Re47
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Details 2) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets, Resale Agreements | ||
Gross Amounts of Recognized Assets | $ 1,900,000 | $ 2,100,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | (250,000) | (100,000) |
Net Amounts of Assets Presented on the Consolidated Balance Sheets | 1,650,000 | 2,000,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets | ||
Financial Instruments | (150,000) | (150,000) |
Collateral Pledged | (1,488,939) | (1,839,120) |
Net Amount | 11,061 | 10,880 |
Liabilities, Repurchase Agreements | ||
Gross Amounts of Recognized Liabilities | 450,000 | 450,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | (250,000) | (100,000) |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 200,000 | 350,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets | ||
Financial Instruments | (150,000) | (150,000) |
Collateral Posted | (50,000) | (200,000) |
Net Amount | $ 0 | $ 0 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities | ||
Amortized Cost | $ 3,005,433 | $ 3,385,441 |
Gross Unrealized Gains | 7,147 | 6,695 |
Gross Unrealized Losses | (50,546) | (56,341) |
Fair Value | 2,962,034 | 3,335,795 |
Schedule of Held-to-maturity Security | ||
Amortized Cost | 132,497 | 143,971 |
Fair Value | 133,656 | 144,593 |
Investment Securities | ||
Amortized Cost | 3,137,930 | 3,529,412 |
Gross Unrealized Gains | 8,306 | 7,317 |
Gross Unrealized Losses | (50,546) | (56,341) |
Fair Value | 3,095,690 | 3,480,388 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 709,332 | 730,287 |
Gross Unrealized Gains | 10 | 21 |
Gross Unrealized Losses | (8,482) | (9,829) |
Fair Value | 700,860 | 720,479 |
U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 183,605 | 277,891 |
Gross Unrealized Gains | 134 | 224 |
Gross Unrealized Losses | (2,876) | (3,249) |
Fair Value | 180,863 | 274,866 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 271,025 | 272,672 |
Gross Unrealized Gains | 337 | 345 |
Gross Unrealized Losses | (6,840) | (6,218) |
Fair Value | 264,522 | 266,799 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 1,185,382 | 1,266,372 |
Gross Unrealized Gains | 3,855 | 3,924 |
Gross Unrealized Losses | (9,482) | (11,549) |
Fair Value | 1,179,755 | 1,258,747 |
Municipal securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 146,559 | 148,302 |
Gross Unrealized Gains | 1,909 | 1,252 |
Gross Unrealized Losses | (1,399) | (1,900) |
Fair Value | 147,069 | 147,654 |
Non-agency residential mortgage-backed securities | Investment grade | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 10,837 | 11,592 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (107) | (115) |
Fair Value | 10,730 | 11,477 |
Corporate debt securities | Investment grade | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 2,476 | 222,190 |
Gross Unrealized Gains | 0 | 562 |
Gross Unrealized Losses | (222) | (375) |
Fair Value | 2,254 | 222,377 |
Corporate debt securities | Non-investment grade | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 10,191 | 10,191 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,007) | (1,018) |
Fair Value | 9,184 | 9,173 |
Foreign bonds | Investment grade | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 445,433 | 405,443 |
Gross Unrealized Gains | 49 | 30 |
Gross Unrealized Losses | (19,614) | (21,579) |
Fair Value | 425,868 | 383,894 |
Foreign bonds | Investment grade | Multilateral development bank | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 395,500 | 353,600 |
Other securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 40,593 | 40,501 |
Gross Unrealized Gains | 853 | 337 |
Gross Unrealized Losses | (517) | (509) |
Fair Value | 40,929 | 40,329 |
Non-agency commercial mortgage-backed security | ||
Schedule of Held-to-maturity Security | ||
Amortized Cost | 132,497 | 143,971 |
Gross Unrealized Gains | 1,159 | 622 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 133,656 | $ 144,593 |
Securities (Details 2)
Securities (Details 2) | 3 Months Ended | ||
Mar. 31, 2017USD ($)security | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)security | |
Fair Value | |||
Less Than 12 Months | $ 2,114,479,000 | $ 2,162,896,000 | |
12 Months or More | 195,679,000 | 253,038,000 | |
Total | 2,310,158,000 | 2,415,934,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (46,427,000) | (51,760,000) | |
12 Months or More | (4,119,000) | (4,581,000) | |
Total | (50,546,000) | $ (56,341,000) | |
Impairment loss | $ 0 | $ 0 | |
Number of securities in an unrealized loss position | security | 163 | 170 | |
Fair Value | |||
Less Than 12 Months | $ 2,114,479,000 | $ 2,162,896,000 | |
12 Months or More | 195,679,000 | 253,038,000 | |
Total | 2,310,158,000 | 2,415,934,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (46,427,000) | (51,760,000) | |
12 Months or More | (4,119,000) | (4,581,000) | |
Total | (50,546,000) | (56,341,000) | |
U.S. Treasury securities | |||
Fair Value | |||
Less Than 12 Months | 680,801,000 | 670,268,000 | |
12 Months or More | 0 | 0 | |
Total | 680,801,000 | 670,268,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (8,482,000) | (9,829,000) | |
12 Months or More | 0 | 0 | |
Total | $ (8,482,000) | $ (9,829,000) | |
Number of securities in an unrealized loss position | security | 27 | 26 | |
U.S. government agency and U.S. government sponsored enterprise debt securities | |||
Fair Value | |||
Less Than 12 Months | $ 154,847,000 | $ 203,901,000 | |
12 Months or More | 0 | 0 | |
Total | 154,847,000 | 203,901,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (2,876,000) | (3,249,000) | |
12 Months or More | 0 | 0 | |
Total | $ (2,876,000) | $ (3,249,000) | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | |||
Gross Unrealized Losses | |||
Number of securities in an unrealized loss position | security | 83 | 82 | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | |||
Fair Value | |||
Less Than 12 Months | $ 212,706,000 | $ 202,106,000 | |
12 Months or More | 35,193,000 | 29,201,000 | |
Total | 247,899,000 | 231,307,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (5,879,000) | (5,452,000) | |
12 Months or More | (961,000) | (766,000) | |
Total | (6,840,000) | (6,218,000) | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | |||
Fair Value | |||
Less Than 12 Months | 598,526,000 | 629,324,000 | |
12 Months or More | 132,328,000 | 119,603,000 | |
Total | 730,854,000 | 748,927,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (8,151,000) | (9,594,000) | |
12 Months or More | (1,331,000) | (1,955,000) | |
Total | (9,482,000) | (11,549,000) | |
Municipal securities | |||
Fair Value | |||
Less Than 12 Months | 45,327,000 | 57,655,000 | |
12 Months or More | 6,925,000 | 2,692,000 | |
Total | 52,252,000 | 60,347,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (1,006,000) | (1,699,000) | |
12 Months or More | (393,000) | (201,000) | |
Total | (1,399,000) | (1,900,000) | |
Non-agency residential mortgage-backed securities | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 10,729,000 | 5,033,000 | |
12 Months or More | 0 | 6,444,000 | |
Total | 10,729,000 | 11,477,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (107,000) | (101,000) | |
12 Months or More | 0 | (14,000) | |
Total | (107,000) | (115,000) | |
Corporate debt securities | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | 2,254,000 | 71,667,000 | |
Total | 2,254,000 | 71,667,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | (222,000) | (375,000) | |
Total | (222,000) | (375,000) | |
Corporate debt securities | Non-investment grade | |||
Fair Value | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | 9,184,000 | 9,173,000 | |
Total | 9,184,000 | 9,173,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | (1,007,000) | (1,018,000) | |
Total | (1,007,000) | (1,018,000) | |
Foreign bonds | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 380,530,000 | 363,618,000 | |
12 Months or More | 9,795,000 | 14,258,000 | |
Total | 390,325,000 | 377,876,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (19,409,000) | (21,327,000) | |
12 Months or More | (205,000) | (252,000) | |
Total | $ (19,614,000) | $ (21,579,000) | |
Number of securities in an unrealized loss position | security | 13 | 13 | |
Other securities | |||
Fair Value | |||
Less Than 12 Months | $ 31,013,000 | $ 30,991,000 | |
12 Months or More | 0 | 0 | |
Total | 31,013,000 | 30,991,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (517,000) | (509,000) | |
12 Months or More | 0 | 0 | |
Total | (517,000) | (509,000) | |
Non-agency commercial mortgage-backed security | |||
Fair Value | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | 0 | 0 | |
Total | 0 | 0 | |
Gross Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | 0 | 0 | |
Total | $ 0 | $ 0 |
Securities (Details 3)
Securities (Details 3) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Investment securities available-for-sale | ||
Other Than Temporary Impairment Credit Losses Recognized in Earnings | ||
OTTI credit losses | $ 0 | $ 0 |
Securities (Details 4)
Securities (Details 4) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 302,656 | $ 652,753 |
Gross realized gains | 2,474 | 3,967 |
Gross realized losses | 0 | 125 |
Related tax expense | $ 1,040 | $ 1,616 |
Securities (Details 5)
Securities (Details 5) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due within one year | $ 519,223 | |
Due after one year through five years | 878,436 | |
Due after five years through ten years | 241,665 | |
Due after ten years | 1,366,109 | |
Total available-for-sale investment securities | 3,005,433 | |
Estimated Fair Value | ||
Due within one year | 503,271 | |
Due after one year through five years | 867,870 | |
Due after five years through ten years | 236,183 | |
Due after ten years | 1,354,710 | |
Total available-for-sale investment securities | 2,962,034 | $ 3,335,795 |
Amortized Cost | ||
Due after ten years | 132,497 | |
Estimated Fair Value | ||
Due after ten years | 133,656 | |
Fair values of available-for-sale investment securities pledged | $ 640,900 | $ 767,400 |
Securities (Details 6)
Securities (Details 6) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Reserve Bank stock | $ 17,250 | $ 17,250 |
FHLB stock | 55,769 | 55,525 |
Total | $ 73,019 | $ 72,775 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Values of Derivative Instruments | ||
Derivative Assets | $ 69,809 | $ 83,780 |
Derivative Liabilities | 74,356 | 82,323 |
Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 48,365 | 131,391 |
Derivative Assets | 0 | 4,325 |
Derivative Liabilities | 6,793 | 5,976 |
Derivatives designated as hedging instruments | Interest rate swaps on certificates of deposit | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 48,365 | 48,365 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 6,793 | 5,976 |
Derivatives designated as hedging instruments | Foreign currency forward contracts | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 0 | 83,026 |
Derivative Assets | 0 | 4,325 |
Derivative Liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 9,170,134 | 8,507,660 |
Derivative Assets | 69,809 | 79,455 |
Derivative Liabilities | 67,563 | 76,347 |
Derivatives not designated as hedging instruments | Interest rate swaps and options | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 7,831,456 | 7,668,482 |
Derivative Assets | 61,586 | 67,578 |
Derivative Liabilities | 60,204 | 65,131 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 1,267,282 | 767,764 |
Derivative Assets | 8,220 | 11,874 |
Derivative Liabilities | 7,357 | 11,213 |
Derivatives not designated as hedging instruments | RPAs | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 71,396 | 71,414 |
Derivative Assets | 3 | 3 |
Derivative Liabilities | $ 2 | $ 3 |
Derivatives (Details 2)
Derivatives (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Derivative liabilities | $ 74,356 | $ 82,323 |
Derivative assets | 69,809 | 83,780 |
Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 48,365 | 131,391 |
Derivative liabilities | 6,793 | 5,976 |
Derivative assets | 0 | 4,325 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 9,170,134 | 8,507,660 |
Derivative liabilities | 67,563 | 76,347 |
Derivative assets | 69,809 | 79,455 |
Interest rate swaps on certificates of deposit | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 48,365 | 48,365 |
Derivative liabilities | 6,793 | 5,976 |
Derivative assets | 0 | 0 |
Foreign currency forward contracts | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 0 | 83,026 |
Derivative liabilities | 0 | 0 |
Derivative assets | 0 | 4,325 |
Interest rate swaps and options | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 7,831,456 | 7,668,482 |
Derivative liabilities | 60,204 | 65,131 |
Derivative assets | 61,586 | 67,578 |
Notional amount of derivative assets | 3,920,000 | 3,860,000 |
Notional amount of derivative liabilities | 3,910,000 | 3,810,000 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 1,270,000 | 767,800 |
Derivative liabilities | 7,400 | 11,200 |
Derivative assets | 8,200 | 11,900 |
RPAs | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 71,396 | 71,414 |
Derivative liabilities | 2 | 3 |
Derivative assets | 3 | 3 |
Interest rate derivative exposure | $ 112 | $ 179 |
Weighted average remaining maturity (in years) | 3 years 6 months | 3 years 8 months |
RPAs | Derivatives not designated as hedging instruments | Long | ||
Derivative [Line Items] | ||
Notional amount | $ 49,100 | $ 48,300 |
RPAs | Derivatives not designated as hedging instruments | Short | ||
Derivative [Line Items] | ||
Notional amount | $ 22,300 | $ 23,100 |
Derivatives (Details 3)
Derivatives (Details 3) - Interest Expense - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Certificates of deposits | ||
Derivative [Line Items] | ||
Recognized on certificates of deposit | $ 688 | $ (3,356) |
Interest rate swaps on certificates of deposit | ||
Derivative [Line Items] | ||
Recognized on interest rate swaps | $ (817) | $ 4,229 |
Derivatives (Details 4)
Derivatives (Details 4) - Derivatives designated as hedging instruments - Net investment hedges - Foreign currency forward contracts - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses recognized in AOCI on net investment hedges (effective portion) | $ 648 | $ 1,485 |
Losses recognized in foreign exchange income (ineffective portion) | $ 1,953 | $ 880 |
Derivatives (Details 5)
Derivatives (Details 5) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for not designated as hedging instruments | $ 4,773 | $ 2,106 |
Interest rate swaps and options | Derivative fees and other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for not designated as hedging instruments | (1,066) | (711) |
Foreign exchange contracts | Foreign exchange income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for not designated as hedging instruments | 5,838 | 2,828 |
RPAs | Derivative fees and other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for not designated as hedging instruments | $ 1 | $ (11) |
Derivatives (Details 6)
Derivatives (Details 6) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives Assets | ||
Gross Amounts including Contracts Not Subject to Master Netting Arrangement | $ 69,809 | $ 83,780 |
Contracts Not Subject to Master Netting Arrangements | 44,570 | 51,218 |
Gross Amounts | 25,239 | 32,562 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented on the Consolidated Balance Sheets | 25,239 | 32,562 |
Gross Amounts Not Offset on the Consolidated Balance Sheets | ||
Derivative Amount | (20,964) | (20,991) |
Collateral Received | (4,162) | (10,687) |
Net Amount | 113 | 884 |
Cash collateral received | 1,000 | 8,100 |
Derivatives Liabilities | ||
Gross Amounts including Contracts Not Subject to Master Netting Arrangement | 74,356 | 82,323 |
Contracts Not Subject to Master Netting Arrangements | 22,699 | 24,097 |
Gross Amounts | 51,657 | 58,226 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented on the Consolidated Balance Sheets | 51,657 | 58,226 |
Gross Amounts Not Offset on the Consolidated Balance Sheets | ||
Derivative Amount | (20,964) | (20,991) |
Collateral Posted | (29,833) | (36,349) |
Net Amount | 860 | 886 |
Cash collateral posted | $ 1,200 | $ 170 |
Loans Receivable and Allowanc60
Loans Receivable and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment, net | $ 26,198,198 | $ 25,242,619 |
Loans Receivable | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 26,461,292 | 25,503,139 |
Allowance for loan losses | (263,094) | (260,520) |
Loans held-for-investment, net | 26,198,198 | 25,242,619 |
Loans Receivable | CRE | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 8,986,890 | 8,690,863 |
Loans Receivable | CRE | Income producing | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 8,302,098 | 8,016,109 |
Loans Receivable | CRE | Construction | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 562,560 | 551,560 |
Loans Receivable | CRE | Land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 122,232 | 123,194 |
Loans Receivable | C&I | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 9,918,072 | 9,640,563 |
Loans Receivable | C&I | Commercial business | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 9,208,857 | 8,959,633 |
Loans Receivable | C&I | Trade finance | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 709,215 | 680,930 |
Loans Receivable | Residential | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 5,432,767 | 5,095,718 |
Loans Receivable | Residential | Real estate loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 3,700,072 | 3,509,779 |
Loans Receivable | Residential | Real estate loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 1,732,695 | 1,585,939 |
Loans Receivable | Consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 2,123,563 | 2,075,995 |
Loans Receivable | Non-PCI Loans | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 25,849,628 | 24,860,694 |
Allowance for loan losses | (263,007) | (260,402) |
Loans held-for-investment, net | 25,586,621 | 24,600,292 |
Deferred loan fees, unamortized premiums and unaccreted discounts | (4,700) | 1,200 |
Loans Receivable | Non-PCI Loans | CRE | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 8,647,669 | 8,340,497 |
Loans Receivable | Non-PCI Loans | CRE | Income producing | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 7,964,224 | 7,667,661 |
Loans Receivable | Non-PCI Loans | CRE | Construction | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 562,560 | 551,560 |
Loans Receivable | Non-PCI Loans | CRE | Land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 120,885 | 121,276 |
Loans Receivable | Non-PCI Loans | C&I | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 9,885,962 | 9,602,176 |
Loans Receivable | Non-PCI Loans | C&I | Commercial business | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 9,176,747 | 8,921,246 |
Loans Receivable | Non-PCI Loans | C&I | Trade finance | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 709,215 | 680,930 |
Loans Receivable | Non-PCI Loans | Residential | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 5,209,906 | 4,860,954 |
Loans Receivable | Non-PCI Loans | Residential | Real estate loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 3,566,739 | 3,370,669 |
Loans Receivable | Non-PCI Loans | Residential | Real estate loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 1,643,167 | 1,490,285 |
Loans Receivable | Non-PCI Loans | Consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 2,106,091 | 2,057,067 |
Loans Receivable | PCI Loans | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 611,664 | 642,445 |
Allowance for loan losses | (87) | (118) |
Loans held-for-investment, net | 611,577 | 642,327 |
Loans Receivable | PCI Loans | CRE | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 339,221 | 350,366 |
Loans Receivable | PCI Loans | CRE | Income producing | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 337,874 | 348,448 |
Loans Receivable | PCI Loans | CRE | Construction | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 0 | 0 |
Loans Receivable | PCI Loans | CRE | Land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 1,347 | 1,918 |
Loans Receivable | PCI Loans | C&I | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 32,110 | 38,387 |
Loans Receivable | PCI Loans | C&I | Commercial business | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 32,110 | 38,387 |
Loans Receivable | PCI Loans | C&I | Trade finance | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 0 | 0 |
Loans Receivable | PCI Loans | Residential | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 222,861 | 234,764 |
Loans Receivable | PCI Loans | Residential | Real estate loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 133,333 | 139,110 |
Loans Receivable | PCI Loans | Residential | Real estate loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 89,528 | 95,654 |
Loans Receivable | PCI Loans | Consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | $ 17,472 | $ 18,928 |
Loans Receivable and Allowanc61
Loans Receivable and Allowance for Credit Losses (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loan-to-value ratio (or less at origination) | 60.00% | |
Loans receivable pledged to secure borrowings and to provide additional borrowing capacity from the FHLB and the Federal Reserve Bank | $ 17,159,894 | $ 16,441,068 |
Loans Receivable | ||
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 | $ 17,160,000 | $ 16,440,000 |
Loans Receivable | Residential | Real estate loan | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Adjustable rate mortgage, term of initial fixed interest rates, option one | 1 year | |
Adjustable rate mortgage, term of initial fixed interest rates, option two | 5 years |
Loans Receivable and Allowanc62
Loans Receivable and Allowance for Credit Losses (Details 3) - Loans Receivable - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | $ 26,461,292 | $ 25,503,139 |
CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 8,986,890 | 8,690,863 |
CRE | Income producing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 8,302,098 | 8,016,109 |
CRE | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 562,560 | 551,560 |
CRE | Land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 122,232 | 123,194 |
C&I | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 9,918,072 | 9,640,563 |
C&I | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 9,208,857 | 8,959,633 |
C&I | Trade finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 709,215 | 680,930 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 5,432,767 | 5,095,718 |
Residential | Real estate loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 3,700,072 | 3,509,779 |
Residential | Real estate loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,732,695 | 1,585,939 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 2,123,563 | 2,075,995 |
Non-PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 25,849,628 | 24,860,694 |
Non-PCI Loans | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 25,184,475 | 24,177,983 |
Non-PCI Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 215,345 | 212,927 |
Non-PCI Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 424,879 | 464,609 |
Non-PCI Loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 24,929 | 5,167 |
Non-PCI Loans | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 8 |
Non-PCI Loans | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 8,647,669 | 8,340,497 |
Non-PCI Loans | CRE | Income producing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 7,964,224 | 7,667,661 |
Non-PCI Loans | CRE | Income producing | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 7,800,487 | 7,476,804 |
Non-PCI Loans | CRE | Income producing | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 23,362 | 29,005 |
Non-PCI Loans | CRE | Income producing | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 140,375 | 161,852 |
Non-PCI Loans | CRE | Income producing | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | CRE | Income producing | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | CRE | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 562,560 | 551,560 |
Non-PCI Loans | CRE | Construction | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 530,278 | 551,560 |
Non-PCI Loans | CRE | Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 32,282 | 0 |
Non-PCI Loans | CRE | Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | CRE | Construction | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | CRE | Construction | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | CRE | Land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 120,885 | 121,276 |
Non-PCI Loans | CRE | Land | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 109,013 | 107,976 |
Non-PCI Loans | CRE | Land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | CRE | Land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 11,872 | 13,290 |
Non-PCI Loans | CRE | Land | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 10 |
Non-PCI Loans | CRE | Land | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | C&I | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 9,885,962 | 9,602,176 |
Non-PCI Loans | C&I | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 9,176,747 | 8,921,246 |
Non-PCI Loans | C&I | Commercial business | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 8,827,318 | 8,559,674 |
Non-PCI Loans | C&I | Commercial business | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 139,251 | 155,276 |
Non-PCI Loans | C&I | Commercial business | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 185,249 | 201,139 |
Non-PCI Loans | C&I | Commercial business | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 24,929 | 5,157 |
Non-PCI Loans | C&I | Commercial business | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | C&I | Trade finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 709,215 | 680,930 |
Non-PCI Loans | C&I | Trade finance | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 677,654 | 635,027 |
Non-PCI Loans | C&I | Trade finance | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 3,566 | 9,435 |
Non-PCI Loans | C&I | Trade finance | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 27,995 | 36,460 |
Non-PCI Loans | C&I | Trade finance | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | C&I | Trade finance | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 8 |
Non-PCI Loans | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 5,209,906 | 4,860,954 |
Non-PCI Loans | Residential | Real estate loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 3,566,739 | 3,370,669 |
Non-PCI Loans | Residential | Real estate loan | Single-family | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 3,533,047 | 3,341,015 |
Non-PCI Loans | Residential | Real estate loan | Single-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 8,693 | 10,179 |
Non-PCI Loans | Residential | Real estate loan | Single-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 24,999 | 19,475 |
Non-PCI Loans | Residential | Real estate loan | Single-family | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | Residential | Real estate loan | Single-family | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | Residential | Real estate loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,643,167 | 1,490,285 |
Non-PCI Loans | Residential | Real estate loan | Multifamily | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,619,193 | 1,462,522 |
Non-PCI Loans | Residential | Real estate loan | Multifamily | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,284 | 2,268 |
Non-PCI Loans | Residential | Real estate loan | Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 22,690 | 25,495 |
Non-PCI Loans | Residential | Real estate loan | Multifamily | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | Residential | Real estate loan | Multifamily | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 2,106,091 | 2,057,067 |
Non-PCI Loans | Consumer | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 2,087,485 | 2,043,405 |
Non-PCI Loans | Consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 6,907 | 6,764 |
Non-PCI Loans | Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 11,699 | 6,898 |
Non-PCI Loans | Consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI Loans | Consumer | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 611,664 | 642,445 |
PCI Loans | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 537,095 | 568,844 |
PCI Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 3,149 | 5,566 |
PCI Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 71,420 | 68,035 |
PCI Loans | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 339,221 | 350,366 |
PCI Loans | CRE | Income producing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 337,874 | 348,448 |
PCI Loans | CRE | Income producing | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 282,099 | 293,529 |
PCI Loans | CRE | Income producing | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 573 | 3,239 |
PCI Loans | CRE | Income producing | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 55,202 | 51,680 |
PCI Loans | CRE | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | CRE | Land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,347 | 1,918 |
PCI Loans | CRE | Land | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,012 | 1,562 |
PCI Loans | CRE | Land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | CRE | Land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 335 | 356 |
PCI Loans | C&I | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 32,110 | 38,387 |
PCI Loans | C&I | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 32,110 | 38,387 |
PCI Loans | C&I | Commercial business | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 27,884 | 33,885 |
PCI Loans | C&I | Commercial business | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 680 | 772 |
PCI Loans | C&I | Commercial business | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 3,546 | 3,730 |
PCI Loans | C&I | Trade finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 222,861 | 234,764 |
PCI Loans | Residential | Real estate loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 133,333 | 139,110 |
PCI Loans | Residential | Real estate loan | Single-family | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 130,031 | 136,245 |
PCI Loans | Residential | Real estate loan | Single-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,522 | 1,239 |
PCI Loans | Residential | Real estate loan | Single-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,780 | 1,626 |
PCI Loans | Residential | Real estate loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 89,528 | 95,654 |
PCI Loans | Residential | Real estate loan | Multifamily | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 80,510 | 86,190 |
PCI Loans | Residential | Real estate loan | Multifamily | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Residential | Real estate loan | Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 9,018 | 9,464 |
PCI Loans | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 17,472 | 18,928 |
PCI Loans | Consumer | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 15,559 | 17,433 |
PCI Loans | Consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 374 | 316 |
PCI Loans | Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | $ 1,539 | $ 1,179 |
Loans Receivable and Allowanc63
Loans Receivable and Allowance for Credit Losses (Details 4) - Loans Receivable - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Nonaccrual and Past Due Loans | ||
Number of days beyond loan classified nonaccrual | 90 days | |
Total loans | $ 26,461,292 | $ 25,503,139 |
CRE | ||
Nonaccrual and Past Due Loans | ||
Total loans | 8,986,890 | 8,690,863 |
CRE | Income producing | ||
Nonaccrual and Past Due Loans | ||
Total loans | 8,302,098 | 8,016,109 |
CRE | Construction | ||
Nonaccrual and Past Due Loans | ||
Total loans | 562,560 | 551,560 |
CRE | Land | ||
Nonaccrual and Past Due Loans | ||
Total loans | 122,232 | 123,194 |
C&I | ||
Nonaccrual and Past Due Loans | ||
Total loans | 9,918,072 | 9,640,563 |
C&I | Commercial business | ||
Nonaccrual and Past Due Loans | ||
Total loans | 9,208,857 | 8,959,633 |
C&I | Trade finance | ||
Nonaccrual and Past Due Loans | ||
Total loans | 709,215 | 680,930 |
Residential | ||
Nonaccrual and Past Due Loans | ||
Total loans | 5,432,767 | 5,095,718 |
Residential | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total loans | 3,700,072 | 3,509,779 |
Residential | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total loans | 1,732,695 | 1,585,939 |
Consumer | ||
Nonaccrual and Past Due Loans | ||
Total loans | 2,123,563 | 2,075,995 |
Non-PCI Loans | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 28,573 | 101,189 |
Total Nonaccrual Loans | 141,155 | 122,817 |
Current Accruing Loans | 25,679,900 | 24,636,688 |
Total loans | 25,849,628 | 24,860,694 |
Non-PCI Loans | CRE | ||
Nonaccrual and Past Due Loans | ||
Total loans | 8,647,669 | 8,340,497 |
Non-PCI Loans | CRE | Income producing | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 3,132 | 20,313 |
Total Nonaccrual Loans | 33,716 | 26,907 |
Current Accruing Loans | 7,927,376 | 7,620,441 |
Total loans | 7,964,224 | 7,667,661 |
Non-PCI Loans | CRE | Construction | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 4,994 |
Total Nonaccrual Loans | 0 | 0 |
Current Accruing Loans | 562,560 | 546,566 |
Total loans | 562,560 | 551,560 |
Non-PCI Loans | CRE | Land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 4,500 | 5,326 |
Current Accruing Loans | 116,385 | 115,950 |
Total loans | 120,885 | 121,276 |
Non-PCI Loans | C&I | ||
Nonaccrual and Past Due Loans | ||
Total loans | 9,885,962 | 9,602,176 |
Non-PCI Loans | C&I | Commercial business | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 8,483 | 47,331 |
Total Nonaccrual Loans | 92,093 | 81,248 |
Current Accruing Loans | 9,076,171 | 8,792,667 |
Total loans | 9,176,747 | 8,921,246 |
Non-PCI Loans | C&I | Trade finance | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 0 | 8 |
Current Accruing Loans | 709,215 | 680,922 |
Total loans | 709,215 | 680,930 |
Non-PCI Loans | Residential | ||
Nonaccrual and Past Due Loans | ||
Total loans | 5,209,906 | 4,860,954 |
Non-PCI Loans | Residential | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 7,457 | 17,671 |
Total Nonaccrual Loans | 5,643 | 4,214 |
Current Accruing Loans | 3,553,639 | 3,348,784 |
Total loans | 3,566,739 | 3,370,669 |
Non-PCI Loans | Residential | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 5,705 | 4,325 |
Total Nonaccrual Loans | 2,222 | 2,984 |
Current Accruing Loans | 1,635,240 | 1,482,976 |
Total loans | 1,643,167 | 1,490,285 |
Non-PCI Loans | Consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 3,796 | 6,555 |
Total Nonaccrual Loans | 2,981 | 2,130 |
Current Accruing Loans | 2,099,314 | 2,048,382 |
Total loans | 2,106,091 | 2,057,067 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 21,974 | 73,152 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | CRE | Income producing | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 3,132 | 6,233 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | CRE | Construction | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 4,994 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | CRE | Land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | C&I | Commercial business | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 8,478 | 45,052 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | C&I | Trade finance | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | Residential | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2,211 | 9,595 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | Residential | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 4,801 | 3,951 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | Consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 3,352 | 3,327 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 6,599 | 28,037 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | CRE | Income producing | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 14,080 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | CRE | Construction | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | CRE | Land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | C&I | Commercial business | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 5 | 2,279 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | C&I | Trade finance | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | Residential | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 5,246 | 8,076 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | Residential | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 904 | 374 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | Consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 444 | 3,228 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 60,067 | 78,779 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | CRE | Income producing | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 11,596 | 14,872 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | CRE | Construction | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 0 | 0 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | CRE | Land | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 47 | 433 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | C&I | Commercial business | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 47,238 | 60,511 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | C&I | Trade finance | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 0 | 8 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | Residential | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 0 | 0 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | Residential | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 1,030 | 2,790 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | Consumer | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 156 | 165 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 81,088 | 44,038 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | CRE | Income producing | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 22,120 | 12,035 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | CRE | Construction | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 0 | 0 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | CRE | Land | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 4,453 | 4,893 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | C&I | Commercial business | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 44,855 | 20,737 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | C&I | Trade finance | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 0 | 0 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | Residential | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 5,643 | 4,214 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | Residential | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 1,192 | 194 |
Non-PCI Loans | Nonaccrual Loans 90 or More Days Past Due | Consumer | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | $ 2,825 | $ 1,965 |
Loans Receivable and Allowanc64
Loans Receivable and Allowance for Credit Losses (Details 5) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Loans in process of foreclosure | ||
Other real estate owned, net | $ 3,600,000 | $ 6,700,000 |
Residential real estate properties | ||
Loans in process of foreclosure | ||
Carrying amount of foreclosed residential real estate properties included in total net OREO | 0 | 401,000 |
Residential | ||
Loans in process of foreclosure | ||
Recorded investment in residential and consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process | 944,000 | 3,100,000 |
Loans Receivable | Acquired with deteriorated credit quality | ||
Nonaccrual loans | ||
Total Nonaccrual Loans | $ 12,000,000 | $ 11,700,000 |
Loans Receivable and Allowanc65
Loans Receivable and Allowance for Credit Losses (Details 6) - Loans Receivable - Non-PCI Loans $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)loan | Mar. 31, 2016USD ($)loan | |
Loans Modified as TDRs | ||
Post-Modification Outstanding Recorded Investment | $ 6,419 | $ 41,034 |
CRE | ||
Loans Modified as TDRs | ||
Post-Modification Outstanding Recorded Investment | $ 1,505 | $ 13,758 |
CRE | Income producing | ||
Loans Modified as TDRs | ||
Number of Loans | loan | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 1,526 | $ 13,775 |
Post-Modification Outstanding Recorded Investment | 1,505 | 13,758 |
Financial Impact | $ 0 | $ 0 |
CRE | Land | ||
Loans Modified as TDRs | ||
Number of Loans | loan | 2 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 86 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 |
Financial Impact | 0 | 0 |
C&I | ||
Loans Modified as TDRs | ||
Post-Modification Outstanding Recorded Investment | $ 4,914 | $ 26,659 |
C&I | Commercial business | ||
Loans Modified as TDRs | ||
Number of Loans | loan | 2 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 6,448 | $ 21,614 |
Post-Modification Outstanding Recorded Investment | 4,914 | 18,577 |
Financial Impact | $ 1,273 | $ 97 |
C&I | Trade finance | ||
Loans Modified as TDRs | ||
Number of Loans | loan | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 7,901 |
Post-Modification Outstanding Recorded Investment | 0 | 8,082 |
Financial Impact | 0 | 0 |
Residential | ||
Loans Modified as TDRs | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 272 |
Residential | Real estate loan | Single-family | ||
Loans Modified as TDRs | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 276 |
Post-Modification Outstanding Recorded Investment | 0 | 272 |
Financial Impact | $ 0 | $ 0 |
Consumer | ||
Loans Modified as TDRs | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 344 |
Post-Modification Outstanding Recorded Investment | 0 | 345 |
Financial Impact | $ 0 | $ 1 |
Loans Receivable and Allowanc66
Loans Receivable and Allowance for Credit Losses (Details 7) - Loans Receivable - Non-PCI Loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | $ 6,419 | $ 41,034 |
Principal | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 1,505 | 33,459 |
Principal and Interest | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 4,914 | 0 |
Interest Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 3,615 |
Other | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 3,960 |
CRE | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 1,505 | 13,758 |
CRE | Principal | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 1,505 | 13,730 |
CRE | Principal and Interest | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 0 |
CRE | Interest Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 0 |
CRE | Other | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 28 |
C&I | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 4,914 | 26,659 |
C&I | Principal | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 19,112 |
C&I | Principal and Interest | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 4,914 | 0 |
C&I | Interest Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 3,615 |
C&I | Other | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 3,932 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 272 |
Residential | Principal | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 272 |
Residential | Principal and Interest | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 0 |
Residential | Interest Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 0 |
Residential | Other | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 0 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 345 |
Consumer | Principal | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 345 |
Consumer | Principal and Interest | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 0 |
Consumer | Interest Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | 0 | 0 |
Consumer | Other | ||
Financing Receivable, Modifications [Line Items] | ||
Post-modification outstanding recorded investment | $ 0 | $ 0 |
Loans Receivable and Allowanc67
Loans Receivable and Allowance for Credit Losses (Details 8) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)loan | Mar. 31, 2016USD ($)loan | Dec. 31, 2016USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Additional funds committed to lend to borrowers whose terms have been modified | $ 4,000 | $ 9,900 | |
Loans Receivable | |||
Financing Receivable, Modifications [Line Items] | |||
Period beyond which a TDR generally becomes delinquent | 90 days | ||
Loans Receivable | Non-PCI Loans | C&I | Commercial business | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans modified as TDRs that subsequently defaulted | loan | 1 | 4 | |
Recorded Investment | $ 2,718 | $ 966 |
Loans Receivable and Allowanc68
Loans Receivable and Allowance for Credit Losses (Details 9) - Loans Receivable - Non-PCI Loans - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Impaired loans disclosures | |||
Unpaid Principal Balance | $ 271,457 | $ 255,273 | |
Recorded Investment With No Allowance | 153,021 | 121,934 | |
Recorded Investment With Allowance | 64,208 | 84,121 | |
Total Recorded Investment | 217,229 | 206,055 | |
Related Allowance | 8,147 | 12,701 | |
Average Recorded Investment | 221,601 | $ 229,300 | |
Recognized Interest Income | 328 | 993 | |
CRE | Income producing | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 48,832 | 50,718 | |
Recorded Investment With No Allowance | 34,984 | 32,507 | |
Recorded Investment With Allowance | 9,528 | 14,001 | |
Total Recorded Investment | 44,512 | 46,508 | |
Related Allowance | 1,159 | 1,263 | |
Average Recorded Investment | 44,772 | 71,767 | |
Recognized Interest Income | 35 | 391 | |
CRE | Land | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 5,050 | 6,457 | |
Recorded Investment With No Allowance | 4,453 | 5,427 | |
Recorded Investment With Allowance | 47 | 443 | |
Total Recorded Investment | 4,500 | 5,870 | |
Related Allowance | 6 | 63 | |
Average Recorded Investment | 4,717 | 6,952 | |
Recognized Interest Income | 0 | 9 | |
C&I | Commercial business | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 182,965 | 162,239 | |
Recorded Investment With No Allowance | 101,963 | 78,316 | |
Recorded Investment With Allowance | 34,031 | 42,137 | |
Total Recorded Investment | 135,994 | 120,453 | |
Related Allowance | 6,218 | 10,443 | |
Average Recorded Investment | 138,931 | 94,505 | |
Recognized Interest Income | 214 | 369 | |
C&I | Trade finance | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 3,449 | 5,227 | |
Recorded Investment With No Allowance | 3,438 | 0 | |
Recorded Investment With Allowance | 0 | 5,166 | |
Total Recorded Investment | 3,438 | 5,166 | |
Related Allowance | 0 | 34 | |
Average Recorded Investment | 4,283 | 13,737 | |
Recognized Interest Income | 7 | 66 | |
Residential | Real estate loan | Single-family | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 16,132 | 15,435 | |
Recorded Investment With No Allowance | 1,864 | 0 | |
Recorded Investment With Allowance | 13,172 | 14,335 | |
Total Recorded Investment | 15,036 | 14,335 | |
Related Allowance | 611 | 687 | |
Average Recorded Investment | 15,096 | 18,356 | |
Recognized Interest Income | 22 | 65 | |
Residential | Real estate loan | Multifamily | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 10,132 | 11,181 | |
Recorded Investment With No Allowance | 5,649 | 5,684 | |
Recorded Investment With Allowance | 3,575 | 4,357 | |
Total Recorded Investment | 9,224 | 10,041 | |
Related Allowance | 121 | 180 | |
Average Recorded Investment | 9,269 | 22,345 | |
Recognized Interest Income | 38 | 77 | |
Consumer | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 4,897 | 4,016 | |
Recorded Investment With No Allowance | 670 | 0 | |
Recorded Investment With Allowance | 3,855 | 3,682 | |
Total Recorded Investment | 4,525 | 3,682 | |
Related Allowance | 32 | $ 31 | |
Average Recorded Investment | 4,533 | 1,638 | |
Recognized Interest Income | $ 12 | $ 16 |
Loans Receivable and Allowanc69
Loans Receivable and Allowance for Credit Losses (Details 10) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for loan losses | ||
Beginning balance | $ 260,520 | |
Charge-offs | (92) | $ (1,800) |
Ending balance | 263,094 | |
CRE | ||
Allowance for loan losses | ||
Beginning balance | 72,916 | |
Ending balance | 74,974 | |
C&I | ||
Allowance for loan losses | ||
Beginning balance | 142,167 | |
Ending balance | 137,510 | |
Residential | ||
Allowance for loan losses | ||
Beginning balance | 37,338 | |
Ending balance | 41,747 | |
Consumer | ||
Allowance for loan losses | ||
Beginning balance | 8,099 | |
Ending balance | 8,863 | |
PCI Loans | ||
Allowance for loan losses | ||
Beginning balance | 118 | |
Ending balance | 87 | |
PCI Loans | CRE | ||
Allowance for loan losses | ||
Beginning balance | 112 | |
Ending balance | 86 | |
PCI Loans | C&I | ||
Allowance for loan losses | ||
Beginning balance | 1 | |
Ending balance | 0 | |
PCI Loans | Residential | ||
Allowance for loan losses | ||
Beginning balance | 5 | |
Ending balance | 1 | |
PCI Loans | Consumer | ||
Allowance for loan losses | ||
Beginning balance | 0 | |
Ending balance | 0 | |
Loans Receivable | ||
Allowance for loan losses | ||
Beginning balance | 260,520 | 264,959 |
Provision for (reversal of) loan losses | 8,015 | 386 |
Charge-offs | (7,209) | (6,054) |
Recoveries | 1,768 | 947 |
Net recoveries (charge-offs) | (5,441) | (5,107) |
Ending balance | 263,094 | 260,238 |
Loans Receivable | PCI Loans | ||
Allowance for loan losses | ||
Beginning balance | 118 | 359 |
Provision for (reversal of) loan losses | (31) | (31) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 87 | 328 |
Loans Receivable | Non-PCI Loans | ||
Allowance for loan losses | ||
Beginning balance | 260,402 | 264,600 |
Provision for (reversal of) loan losses | 8,046 | 417 |
Charge-offs | (7,209) | (6,054) |
Recoveries | 1,768 | 947 |
Net recoveries (charge-offs) | (5,441) | (5,107) |
Ending balance | 263,007 | 259,910 |
Loans Receivable | Non-PCI Loans | CRE | ||
Allowance for loan losses | ||
Beginning balance | 72,804 | 81,191 |
Provision for (reversal of) loan losses | 1,639 | 1,306 |
Charge-offs | (148) | (56) |
Recoveries | 593 | 97 |
Net recoveries (charge-offs) | 445 | 41 |
Ending balance | 74,888 | 82,538 |
Loans Receivable | Non-PCI Loans | C&I | ||
Allowance for loan losses | ||
Beginning balance | 142,166 | 134,597 |
Provision for (reversal of) loan losses | 1,946 | 4,654 |
Charge-offs | (7,057) | (5,860) |
Recoveries | 455 | 686 |
Net recoveries (charge-offs) | (6,602) | (5,174) |
Ending balance | 137,510 | 134,077 |
Loans Receivable | Non-PCI Loans | Residential | ||
Allowance for loan losses | ||
Beginning balance | 37,333 | 39,292 |
Provision for (reversal of) loan losses | 3,835 | (5,317) |
Charge-offs | 0 | (137) |
Recoveries | 578 | 97 |
Net recoveries (charge-offs) | 578 | (40) |
Ending balance | 41,746 | 33,935 |
Loans Receivable | Non-PCI Loans | Consumer | ||
Allowance for loan losses | ||
Beginning balance | 8,099 | 9,520 |
Provision for (reversal of) loan losses | 626 | (226) |
Charge-offs | (4) | (1) |
Recoveries | 142 | 67 |
Net recoveries (charge-offs) | 138 | 66 |
Ending balance | $ 8,863 | $ 9,360 |
Loans Receivable and Allowanc70
Loans Receivable and Allowance for Credit Losses (Details 11) - Allowance for Unfunded Credit Reserve - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for unfunded credit reserves | ||
Beginning balance | $ 16,121 | $ 20,360 |
(Reversal of) provision for unfunded credit reserves | (947) | 1,054 |
Ending balance | $ 15,174 | $ 21,414 |
Loans Receivable and Allowanc71
Loans Receivable and Allowance for Credit Losses (Details 12) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for loan losses | ||||
Individually evaluated for impairment | $ 8,147 | $ 12,701 | ||
Collectively evaluated for impairment | 254,860 | 247,701 | ||
Allowance for loan losses | 263,094 | 260,520 | ||
Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 87 | 118 | ||
CRE | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 1,165 | 1,326 | ||
Collectively evaluated for impairment | 73,723 | 71,478 | ||
Allowance for loan losses | 74,974 | 72,916 | ||
CRE | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 86 | 112 | ||
C&I | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 6,218 | 10,477 | ||
Collectively evaluated for impairment | 131,292 | 131,689 | ||
Allowance for loan losses | 137,510 | 142,167 | ||
C&I | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 0 | 1 | ||
Residential | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 732 | 867 | ||
Collectively evaluated for impairment | 41,014 | 36,466 | ||
Allowance for loan losses | 41,747 | 37,338 | ||
Residential | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 1 | 5 | ||
Consumer | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 32 | 31 | ||
Collectively evaluated for impairment | 8,831 | 8,068 | ||
Allowance for loan losses | 8,863 | 8,099 | ||
Consumer | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 0 | 0 | ||
Loans Receivable | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 263,094 | 260,520 | $ 260,238 | $ 264,959 |
Recorded investment in loans | ||||
Individually evaluated for impairment | 217,229 | 206,055 | ||
Collectively evaluated for impairment | 25,632,399 | 24,654,639 | ||
Total loans held-for-investment | 26,461,292 | 25,503,139 | ||
Loans Receivable | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 87 | 118 | $ 328 | $ 359 |
Recorded investment in loans | ||||
Total loans held-for-investment | 611,664 | 642,445 | ||
Loans Receivable | CRE | ||||
Recorded investment in loans | ||||
Individually evaluated for impairment | 49,012 | 52,378 | ||
Collectively evaluated for impairment | 8,598,657 | 8,288,119 | ||
Total loans held-for-investment | 8,986,890 | 8,690,863 | ||
Loans Receivable | CRE | Acquired with deteriorated credit quality | ||||
Recorded investment in loans | ||||
Total loans held-for-investment | 339,221 | 350,366 | ||
Loans Receivable | C&I | ||||
Recorded investment in loans | ||||
Individually evaluated for impairment | 139,432 | 125,619 | ||
Collectively evaluated for impairment | 9,746,530 | 9,476,557 | ||
Total loans held-for-investment | 9,918,072 | 9,640,563 | ||
Loans Receivable | C&I | Acquired with deteriorated credit quality | ||||
Recorded investment in loans | ||||
Total loans held-for-investment | 32,110 | 38,387 | ||
Loans Receivable | Residential | ||||
Recorded investment in loans | ||||
Individually evaluated for impairment | 24,260 | 24,376 | ||
Collectively evaluated for impairment | 5,185,646 | 4,836,578 | ||
Total loans held-for-investment | 5,432,767 | 5,095,718 | ||
Loans Receivable | Residential | Acquired with deteriorated credit quality | ||||
Recorded investment in loans | ||||
Total loans held-for-investment | 222,861 | 234,764 | ||
Loans Receivable | Consumer | ||||
Recorded investment in loans | ||||
Individually evaluated for impairment | 4,525 | 3,682 | ||
Collectively evaluated for impairment | 2,101,566 | 2,053,385 | ||
Total loans held-for-investment | 2,123,563 | 2,075,995 | ||
Loans Receivable | Consumer | Acquired with deteriorated credit quality | ||||
Recorded investment in loans | ||||
Total loans held-for-investment | $ 17,472 | $ 18,928 |
Loans Receivable and Allowanc72
Loans Receivable and Allowance for Credit Losses (Details 13) - Loans Receivable - PCI Loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in accretable yield for PCI loans | ||
Beginning balance | $ 136,247 | $ 214,907 |
Accretion | (10,279) | (22,429) |
Changes in expected cash flows | 2,022 | (6,487) |
Ending balance | $ 127,990 | $ 185,991 |
Loans Receivable and Allowanc73
Loans Receivable and Allowance for Credit Losses (Details 14) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loans Held-for-Sale | |||
Loans held-for-sale | $ 28,931,000 | $ 23,076,000 | |
Loans held-for-investment transferred to loans held-for-sale, net | 278,024,000 | $ 308,722,000 | |
Write-down of loans transferred from loans held-for-investment to loans held-for-sale recorded to allowance for loan losses | 92,000 | 1,800,000 | |
Held-to-maturity investment security | 132,497,000 | $ 143,971,000 | |
Loans held-for-sale | |||
Loans Held-for-Sale | |||
Lower of cost or fair value adjustment | 69,000 | 2,400,000 | |
Multifamily | |||
Loans Held-for-Sale | |||
Gain on securitizations | 1,100,000 | ||
Mortgage servicing rights | 641,000 | ||
Held-to-maturity investment security | 160,100,000 | ||
Loans securitized | 201,700,000 | ||
Loans purchased in secondary market | |||
Loans Held-for-Sale | |||
Loans purchased | 147,200,000 | 239,300,000 | |
Originated | Single-family residential and C&I | |||
Loans Held-for-Sale | |||
Loans sold | 29,300,000 | ||
Net gains (losses) from sales of loans held-for-sale during the period | 1,800,000 | ||
Originated | Multifamily residential, C&I, and CRE | |||
Loans Held-for-Sale | |||
Net gains (losses) from sales of loans held-for-sale during the period | 4,300,000 | ||
Carrying value of loans sold or securitized | 256,200,000 | ||
Purchased | Loans sold in secondary market | |||
Loans Held-for-Sale | |||
Net gains (losses) from sales of loans held-for-sale during the period | 1,000,000 | 0 | |
Carrying value of loans sold or securitized | $ 246,600,000 | $ 53,900,000 |
Investments in Qualified Affo74
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net [Abstract] | |||
Minimum compliance period for qualified affordable housing partnerships to fully utilize the tax credits (in years) | 15 years | ||
Investments in qualified affordable housing partnerships, net | $ 176,965 | $ 183,917 | |
Accrued expenses and other liabilities — Unfunded commitments | 52,223 | $ 57,243 | |
Tax credits and other tax benefits recognized | 9,621 | $ 9,452 | |
Amortization expense included in income tax expense | $ 6,950 | $ 6,966 |
Investments in Qualified Affo75
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net [Abstract] | |||
Investments in tax credit and other investments, net | $ 177,023 | $ 173,280 | |
Total unfunded commitments for investments in tax credit and other investments | 101,800 | $ 117,000 | |
Noninterest expense — amortization of tax credit and other investments | $ 14,360 | $ 14,155 |
Goodwill and Other Intangible76
Goodwill and Other Intangible Assets (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 469,433,000 | $ 469,433,000 | $ 469,433,000 |
Number of operating segments | segment | 3 | ||
Goodwill impairment | $ 0 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1,817,000 | 2,104,000 | |
Core Deposit Intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment write-downs | 0 | 0 | |
Amortization expense | $ 1,800,000 | $ 2,100,000 |
Goodwill and Other Intangible77
Goodwill and Other Intangible Assets (Details 2) - Core Deposit Intangibles - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | $ 108,814 | $ 108,814 |
Accumulated amortization | 82,642 | 80,825 |
Total | $ 26,172 | $ 27,989 |
Goodwill and Other Intangible78
Goodwill and Other Intangible Assets (Details 3) - Core Deposit Intangibles - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Year Ended December 31, | ||
Remainder of 2017 | $ 5,118 | |
2,018 | 5,883 | |
2,019 | 4,864 | |
2,020 | 3,846 | |
2,021 | 2,833 | |
Thereafter | 3,628 | |
Total | $ 26,172 | $ 27,989 |
Commitments and Contingencies79
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Credit Extensions | ||
Loan commitments | $ 5,007,903 | $ 5,077,869 |
Commercial letters of credit and SBLCs | 1,695,083 | 1,525,613 |
Commercial Letters of Credit | ||
Credit Extensions | ||
Commercial letters of credit and SBLCs | 58,700 | |
Standby Letters of Credit | ||
Credit Extensions | ||
Commercial letters of credit and SBLCs | 1,640,000 | |
Accrued Expenses and Other Liabilities | ||
Credit Extensions | ||
Allowance for unfunded credit reserves | $ 14,800 | $ 15,700 |
Commitments and Contingencies80
Commitments and Contingencies (Details 2) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
East West Bank | F&F, LLC and 618 Investment, Inc. v. East West Bank | ||
Litigation | ||
Litigation accrual | $ 25,000 | |
Accrued Expenses and Other Liabilities | ||
Other Commitments | ||
Unfunded commitments in investments in AHP and other tax credit investments | $ 154,000 | 174,300 |
Loans Sold or Securitized with Recourse | ||
Guarantees | ||
Unpaid principal amount of loans sold or securitized with recourse | 139,600 | 150,500 |
Loans Sold or Securitized with Recourse | Accrued Expenses and Other Liabilities | ||
Guarantees | ||
Allowance for unfunded credit reserves | $ 333 | $ 373 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 0 | 0 | |
Total Stock Compensation Expense and Related Net Tax Benefit [Abstract] | |||
Stock compensation costs | $ 5,151 | $ 4,575 | |
Related net tax benefit for stock compensation plans | $ 4,414 | ||
Related net tax benefit for stock compensation plans | $ 986 | ||
RSUs | Ratably | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs | Cliff | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs | Cliff | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (in shares) | 0 | 0 | |
Performance-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (in shares) | 424,299 | 410,746 | |
Performance-Based RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential for awards to vest (as a percent) | 0.00% | ||
Performance-Based RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential for awards to vest (as a percent) | 200.00% | ||
Performance-Based RSUs | Cliff | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
Stock Compensation Plans (Det82
Stock Compensation Plans (Details 2) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Time-Based RSUs | |
Shares | |
Outstanding at beginning of period (in shares) | shares | 1,218,714 |
Granted (in shares) | shares | 330,762 |
Vested (in shares) | shares | (279,549) |
Forfeited (in shares) | shares | (61,193) |
Outstanding at end of period (in shares) | shares | 1,208,734 |
Weighted Average Grant-Date Fair Value | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 35.92 |
Granted (in dollars per share) | $ / shares | 54.49 |
Vested (in dollars per share) | $ / shares | 36.84 |
Forfeited (in dollars per share) | $ / shares | 39.25 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 40.62 |
Total unrecognized compensation cost | $ | $ 34.6 |
Weighted average period to recognize unrecognized compensation cost | 2 years 3 months 19 days |
Performance-Based RSUs | |
Shares | |
Outstanding at beginning of period (in shares) | shares | 410,746 |
Granted (in shares) | shares | 131,597 |
Vested (in shares) | shares | (118,044) |
Forfeited (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 424,299 |
Weighted Average Grant-Date Fair Value | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 35.27 |
Granted (in dollars per share) | $ / shares | 56.59 |
Vested (in dollars per share) | $ / shares | 36.85 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 41.44 |
Total unrecognized compensation cost | $ | $ 20.2 |
Weighted average period to recognize unrecognized compensation cost | 2 years 4 months 28 days |
Stockholders' Equity and Earn83
Stockholders' Equity and Earnings Per Share (Details) - shares | Mar. 31, 2017 | Jan. 17, 2014 | Jan. 16, 2014 |
Class of Stock [Line Items] | |||
Shares of East West's common stock into which the warrant may be converted (in shares) | 230,282 | ||
Number of warrants exercised (in warrants) | 0 | ||
MetroCorp | MetroCorp | |||
Class of Stock [Line Items] | |||
Shares of East West's common stock into which the warrant may be converted (in shares) | 771,429 |
Stockholders' Equity and Earn84
Stockholders' Equity and Earnings Per Share (Details 2) - Accounting Standards Update 2016-09 | 3 Months Ended |
Mar. 31, 2017$ / shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Impact on basic earnings per share, ASU 2016-09 (in dollars per share) | $ 0.03 |
Impact on diluted earnings per share, ASU 2016-09 (in dollars per share) | $ 0.03 |
Stockholders' Equity and Earn85
Stockholders' Equity and Earnings Per Share (Details 3) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic | ||
Net income | $ 169,736 | $ 107,516 |
Basic weighted average number of shares outstanding (in shares) | 144,249 | 143,958 |
Basic EPS (in dollars per share) | $ 1.18 | $ 0.75 |
Diluted | ||
Net income | $ 169,736 | $ 107,516 |
Basic weighted average number of shares outstanding (in shares) | 144,249 | 143,958 |
Diluted potential common shares (in shares) | 1,483 | 845 |
Diluted weighted average number of shares outstanding (in shares) | 145,732 | 144,803 |
Diluted EPS (in dollars per share) | $ 1.16 | $ 0.74 |
Stockholders' Equity and Earn86
Stockholders' Equity and Earnings Per Share (Details 4) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average anti-dilutive shares (in shares) | 194 | 13 |
Accumulated Other Comprehensi87
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 3,427,741 | $ 3,122,950 |
Other comprehensive income | 4,628 | 12,883 |
Ending balance | 3,565,954 | 3,216,781 |
Available-for-Sale Investment Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (28,772) | (6,144) |
Net unrealized gains (losses) arising during the period | 5,055 | 15,142 |
Amounts reclassified from AOCI | (1,434) | (2,226) |
Other comprehensive income | 3,621 | 12,916 |
Ending balance | (25,151) | 6,772 |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (19,374) | (8,797) |
Net unrealized gains (losses) arising during the period | 1,007 | (33) |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income | 1,007 | (33) |
Ending balance | (18,367) | (8,830) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (48,146) | (14,941) |
Net unrealized gains (losses) arising during the period | 6,062 | 15,109 |
Amounts reclassified from AOCI | (1,434) | (2,226) |
Other comprehensive income | 4,628 | 12,883 |
Ending balance | $ (43,518) | $ (2,058) |
Accumulated Other Comprehensi88
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Before-Tax | ||
Net change | $ 7,254 | $ 22,255 |
Tax Effect | ||
Net change | (2,626) | (9,372) |
Net-of-Tax | ||
Other comprehensive income | 4,628 | 12,883 |
Available-for-Sale Investment Securities | ||
Before-Tax | ||
Net unrealized gains (losses) arising during the period | 8,721 | 26,130 |
Net realized gains reclassified into net income | (2,474) | (3,842) |
Net change | 6,247 | 22,288 |
Tax Effect | ||
Net unrealized gains (losses) arising during the period | (3,666) | (10,988) |
Net realized gains reclassified into net income | 1,040 | 1,616 |
Net change | (2,626) | (9,372) |
Net-of-Tax | ||
Net unrealized gains (losses) arising during the period | 5,055 | 15,142 |
Net realized gains reclassified into net income | (1,434) | (2,226) |
Other comprehensive income | 3,621 | 12,916 |
Foreign Currency Translation Adjustments | ||
Before-Tax | ||
Net unrealized gains (losses) arising during the period | 1,007 | (33) |
Net change | 1,007 | (33) |
Tax Effect | ||
Net unrealized gains (losses) arising during the period | 0 | 0 |
Net change | 0 | 0 |
Net-of-Tax | ||
Net unrealized gains (losses) arising during the period | 1,007 | (33) |
Net realized gains reclassified into net income | 0 | 0 |
Other comprehensive income | $ 1,007 | $ (33) |
Business Segments (Details)
Business Segments (Details) | 3 Months Ended |
Mar. 31, 2017segmentbusiness_division | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of business divisions | business_division | 3 |
Number of segment whom broad administrative support are provided | 2 |
Business Segments (Details 2)
Business Segments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information | |||
Interest income | $ 302,669 | $ 276,172 | |
Charge for funds used | (120,414) | (88,280) | |
Interest spread on funds used | 182,255 | 187,892 | |
Interest expense | (30,547) | (23,968) | |
Credit on funds provided | 120,414 | 88,280 | |
Interest spread on funds provided | 89,867 | 64,312 | |
Net interest income before provision for credit losses | 272,122 | 252,204 | |
(Reversal of) provision for credit losses | 7,068 | 1,440 | |
Depreciation, amortization and (accretion), net | 28,130 | 12,758 | |
Segment pretax profit (loss) | 228,004 | 144,671 | |
Goodwill | 469,433 | 469,433 | $ 469,433 |
Segment assets | 35,342,126 | 33,109,169 | $ 34,788,840 |
Retail Banking | |||
Segment Reporting Information | |||
Interest income | 81,648 | 77,371 | |
Charge for funds used | (27,860) | (22,652) | |
Interest spread on funds used | 53,788 | 54,719 | |
Interest expense | (16,173) | (14,606) | |
Credit on funds provided | 102,528 | 72,431 | |
Interest spread on funds provided | 86,355 | 57,825 | |
Net interest income before provision for credit losses | 140,143 | 112,544 | |
(Reversal of) provision for credit losses | 381 | (1,582) | |
Depreciation, amortization and (accretion), net | 2,344 | 43 | |
Segment pretax profit (loss) | 73,361 | 45,945 | |
Goodwill | 357,207 | 357,207 | |
Segment assets | 8,213,268 | 7,203,470 | |
Commercial Banking | |||
Segment Reporting Information | |||
Interest income | 191,796 | 177,082 | |
Charge for funds used | (64,387) | (53,791) | |
Interest spread on funds used | 127,409 | 123,291 | |
Interest expense | (5,108) | (4,026) | |
Credit on funds provided | 12,061 | 9,977 | |
Interest spread on funds provided | 6,953 | 5,951 | |
Net interest income before provision for credit losses | 134,362 | 129,242 | |
(Reversal of) provision for credit losses | 6,687 | 3,022 | |
Depreciation, amortization and (accretion), net | (3,474) | (10,773) | |
Segment pretax profit (loss) | 91,798 | 92,829 | |
Goodwill | 112,226 | 112,226 | |
Segment assets | 19,624,237 | 17,939,537 | |
Other | |||
Segment Reporting Information | |||
Interest income | 29,225 | 21,719 | |
Charge for funds used | (28,167) | (11,837) | |
Interest spread on funds used | 1,058 | 9,882 | |
Interest expense | (9,266) | (5,336) | |
Credit on funds provided | 5,825 | 5,872 | |
Interest spread on funds provided | (3,441) | 536 | |
Net interest income before provision for credit losses | (2,383) | 10,418 | |
(Reversal of) provision for credit losses | 0 | 0 | |
Depreciation, amortization and (accretion), net | 29,260 | 23,488 | |
Segment pretax profit (loss) | 62,845 | 5,897 | |
Goodwill | 0 | 0 | |
Segment assets | $ 7,504,621 | $ 7,966,162 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Apr. 19, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Subsequent events | |||
Dividends declared per common share (in dollars per share) | $ 0.2 | $ 0.20 | |
Subsequent Event | |||
Subsequent events | |||
Dividends declared per common share (in dollars per share) | $ 0.20 |