Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 144,898,007 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 413,017 | $ 457,181 |
Interest-bearing cash with banks | 1,901,921 | 1,717,411 |
Cash and cash equivalents | 2,314,938 | 2,174,592 |
Interest-bearing deposits with banks | 478,871 | 398,422 |
Securities purchased under resale agreements (“resale agreements”) | 1,050,000 | 1,050,000 |
Securities: | ||
Available-for-sale investment securities, at fair value (includes assets pledged as collateral of $498,658 in 2018 and $534,327 in 2017) | 2,811,416 | 3,016,752 |
Restricted equity securities, at cost | 73,787 | 73,521 |
Loans held-for-sale | 46,181 | 85 |
Loans held-for-investment (net of allowance for loan losses of $297,654 in 2018 and $287,128 in 2017; includes assets pledged as collateral of $19,495,480 in 2018 and $18,880,598 in 2017) | 29,257,594 | 28,688,590 |
Investments in qualified affordable housing partnerships, net | 160,574 | 162,824 |
Investments in tax credit and other investments, net | 246,183 | 224,551 |
Premises and equipment (net of accumulated depreciation of $109,126 in 2018 and $111,898 in 2017) | 119,733 | 121,209 |
Goodwill | 465,547 | 469,433 |
Branch assets held-for-sale | 0 | 91,318 |
Other assets | 668,334 | 678,952 |
TOTAL | 37,693,158 | 37,150,249 |
LIABILITIES | ||
Noninterest-bearing | 11,763,936 | 10,887,306 |
Interest-bearing | 20,844,841 | 20,727,757 |
Total deposits | 32,608,777 | 31,615,063 |
Branch liability held-for-sale | 0 | 605,111 |
Short-term borrowings | 30,277 | 0 |
Federal Home Loan Bank (“FHLB”) advances | 324,451 | 323,891 |
Securities sold under repurchase agreements (“repurchase agreements”) | 50,000 | 50,000 |
Long-term debt | 166,640 | 171,577 |
Accrued expenses and other liabilities | 534,258 | 542,656 |
Total liabilities | 33,714,403 | 33,308,298 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,544,235 and 165,214,770 shares issued in 2018 and 2017, respectively | 166 | 165 |
Additional paid-in capital | 1,746,541 | 1,755,330 |
Retained earnings | 2,740,179 | 2,576,302 |
Treasury stock, at cost — 20,671,710 shares as of both 2018 and 2017 | (452,327) | (452,327) |
Accumulated other comprehensive loss (“AOCI”), net of tax | (55,804) | (37,519) |
Total stockholders’ equity | 3,978,755 | 3,841,951 |
TOTAL | $ 37,693,158 | $ 37,150,249 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
INTEREST AND DIVIDEND INCOME | ||
Loans receivable, including fees | $ 337,904 | $ 272,061 |
Investment securities | 15,456 | 15,247 |
Resale agreements | 6,934 | 9,468 |
Restricted equity securities | 634 | 777 |
Interest-bearing cash and deposits with banks | 10,945 | 5,116 |
Total interest and dividend income | 371,873 | 302,669 |
INTEREST EXPENSE | ||
Deposits | 39,136 | 23,672 |
Federal funds purchased and other short-term borrowings | 7 | 413 |
FHLB advances | 2,260 | 2,030 |
Repurchase agreements | 2,306 | 3,143 |
Long-term debt | 1,471 | 1,289 |
Total interest expense | 45,180 | 30,547 |
Net interest income before provision for credit losses | 326,693 | 272,122 |
Provision for credit losses | 20,218 | 7,068 |
Net interest income after provision for credit losses | 306,475 | 265,054 |
NONINTEREST INCOME | ||
Branch fees | 10,430 | 9,924 |
Letters of credit fees and foreign exchange income | 9,602 | 11,441 |
Ancillary loan fees and other income | 5,581 | 4,982 |
Wealth management fees | 2,953 | 4,335 |
Derivative fees and other income | 6,690 | 2,506 |
Net gains on sales of loans | 1,582 | 2,754 |
Net gains on sales of available-for-sale investment securities | 2,129 | 2,474 |
Net gains on sales of fixed assets | 1,086 | 72,007 |
Net gain on sale of business | 31,470 | 0 |
Other fees and operating income | 2,921 | 5,405 |
Total noninterest income | 74,444 | 115,828 |
NONINTEREST EXPENSE | ||
Compensation and employee benefits | 95,234 | 84,603 |
Occupancy and equipment expense | 16,880 | 15,640 |
Deposit insurance premiums and regulatory assessments | 6,273 | 5,929 |
Legal expense | 2,255 | 3,062 |
Data processing | 3,401 | 2,947 |
Consulting expense | 2,352 | 1,919 |
Deposit related expense | 2,679 | 2,365 |
Computer software expense | 5,054 | 3,968 |
Other operating expense | 17,607 | 18,085 |
Amortization of tax credit and other investments | 17,400 | 14,360 |
Total noninterest expense | 169,135 | 152,878 |
INCOME BEFORE INCOME TAXES | 211,784 | 228,004 |
INCOME TAX EXPENSE | 24,752 | 58,268 |
NET INCOME | $ 187,032 | $ 169,736 |
EARNINGS PER SHARE (“EPS”) | ||
BASIC (in dollars per share) | $ 1.29 | $ 1.18 |
DILUTED (in dollars per share) | $ 1.28 | $ 1.16 |
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING | ||
BASIC (in shares) | 144,664 | 144,249 |
DILUTED (in shares) | 145,939 | 145,732 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.20 | $ 0.20 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Available-for-sale securities pledged as collateral | $ 498,658 | $ 534,327 |
Allowance for loan losses | 297,654 | 287,128 |
Loans held-for-investment pledged as collateral | 19,495,480 | 18,880,598 |
Premises and equipment, accumulated depreciation | $ 109,126 | $ 111,898 |
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) | 165,544,235 | 165,214,770 |
Treasury stock, shares (in shares) | 20,671,710 | 20,671,710 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 187,032 | $ 169,736 |
Other comprehensive (loss) income, net of tax: | ||
Net changes in unrealized (losses) gains on available-for-sale investment securities | (18,812) | 3,621 |
Foreign currency translation adjustments | 6,798 | 1,007 |
Other comprehensive (loss) income | (12,014) | 4,628 |
COMPREHENSIVE INCOME | $ 175,018 | $ 174,364 |
Consolidated Statement of Chang
Consolidated Statement 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 | |
Beginning 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 (loss) | 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) | 0 | |||||
Net activity of common stock pursuant to various stock compensation plans and agreements | (12,154) | ||||||
Cash dividends on common stock | (29,148) | (29,148) | |||||
Ending 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) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Cumulative effect of change in accounting principle related to marketable equity securities | [1] | (160) | (545) | 385 | |||
Beginning balance (in shares) at Dec. 31, 2017 | 144,543,060 | ||||||
Beginning balance at Dec. 31, 2017 | 3,841,951 | 1,755,495 | 2,576,302 | (452,327) | (37,519) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate | [2] | 6,656 | (6,656) | ||||
Net income | 187,032 | 187,032 | |||||
Other comprehensive income (loss) | (12,014) | (12,014) | |||||
Stock compensation costs | 6,158 | 6,158 | |||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 329,465 | ||||||
Net activity of common stock pursuant to various stock compensation plans and agreements | (14,946) | (14,946) | |||||
Net activity of common stock pursuant to various stock compensation plans and agreements | 0 | ||||||
Cash dividends on common stock | (29,266) | (29,266) | |||||
Ending balance (in shares) at Mar. 31, 2018 | 144,872,525 | ||||||
Ending balance at Mar. 31, 2018 | $ 3,978,755 | $ 1,746,707 | $ 2,740,179 | $ (452,327) | $ (55,804) | ||
[1] | Represents the impact of the adoption in the first quarter of 2018 of Accounting Standards Update (“ASU”) 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. | ||||||
[2] | Represents amounts reclassified from AOCI to retained earnings due to the early adoption of ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income during the first quarter of 2018. Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 187,032 | $ 169,736 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 29,858 | 33,061 |
Accretion of discount and amortization of premiums, net | (2,680) | (4,931) |
Stock compensation costs | 6,158 | 5,151 |
Deferred income tax expense | 677 | 2,295 |
Provision for credit losses | 20,218 | 7,068 |
Net gains on sales of loans | (1,582) | (2,754) |
Net gains on sales of available-for-sale investment securities | (2,129) | (2,474) |
Net gains on sales of premises and equipment | (1,086) | (72,007) |
Net gain on sale of business | (31,470) | 0 |
Originations and purchases of loans held-for-sale | (4,617) | (4,287) |
Proceeds from sales and paydowns/payoffs in loans held-for-sale | 2,545 | 4,773 |
Proceeds from distributions received from equity method investees | 887 | 8 |
Net change in accrued interest receivable and other assets | 14,465 | 93,647 |
Net change in accrued expenses and other liabilities | (570) | (37,791) |
Other net operating activities | 148 | (5,220) |
Total adjustments | 30,822 | 16,539 |
Net cash provided by operating activities | 217,854 | 186,275 |
Net (increase) decrease in: | ||
Loans held-for-investment | (619,671) | (1,085,449) |
Interest-bearing deposits with banks | (71,203) | 75,140 |
Investments in qualified affordable housing partnerships, tax credit and other investments | (22,799) | (39,531) |
Payment for sale of business, net of cash transferred | (503,687) | 0 |
Purchases of: | ||
Resale agreements | 0 | (200,000) |
Available-for-sale investment securities | (157,933) | (50,936) |
Loans held-for-investment | (80,077) | (147,242) |
Premises and equipment | (1,757) | (1,191) |
Proceeds from sale of: | ||
Available-for-sale investment securities | 214,790 | 302,656 |
Loans held-for-investment | 112,964 | 276,643 |
Other real estate owned (“OREO”) | 2,716 | 3,958 |
Premises and equipment | 0 | 116,021 |
Paydowns and maturities of resale agreements | 0 | 400,000 |
Proceeds from distributions received from equity method investees | 629 | 1,169 |
Repayments, maturities and redemptions of available-for-sale investment securities | 87,677 | 125,006 |
Other net investing activities | (1,967) | 10,355 |
Net cash used in investing activities | (1,040,318) | (213,401) |
Net increase (decrease) in: | ||
Deposits | 964,380 | 646,188 |
Short-term borrowings | 30,215 | (18,524) |
Payments for: | ||
Repayment of long-term debt | (5,000) | (5,000) |
Repurchase of vested shares due to employee tax liability | (14,946) | (12,154) |
Cash dividends on common stock | (30,235) | (30,039) |
Net cash provided by financing activities | 944,414 | 580,471 |
Effect of exchange rate changes on cash and cash equivalents | 18,396 | 2,795 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 140,346 | 556,140 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,174,592 | 1,878,503 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,314,938 | 2,434,643 |
Cash paid (received) during the period for: | ||
Interest paid | 43,218 | 30,361 |
Income taxes paid (refunded), net | 10,084 | (230) |
Noncash investing and financing activities: | ||
Loans transferred from held-for-investment to held-for-sale | $ 155,767 | $ 278,024 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 and East West’s various subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of March 31, 2018 , East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with Financial Accounting Standards Board (“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 Consolidated Financial Statements. Certain items on the Consolidated Financial Statements and notes for the prior periods 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 Consolidated Financial Statements are issued for inclusion in the accompanying Consolidated 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 annual report on Form 10-K for the year ended December 31, 2017 filed with the U.S. Securities and Exchange Commission on February 27, 2018 (the “Company’s 2017 Form 10-K”). |
Current Accounting Developments
Current Accounting Developments | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Current Accounting Developments | Current Accounting Developments New Accounting Pronouncements Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which clarifies the principles for recognizing revenue for contracts to provide goods or services to customers. ASU 2014-09 also requires new quantitative and qualitative disclosures including the disaggregation of revenues and descriptions of performance obligations. The Company’s revenue is comprised of net interest income and noninterest income. The scope of this new guidance explicitly excludes net interest income, as well as other revenues from financial instruments including loans, leases, securities and derivatives. Accordingly, the majority of the Company’s revenues will not be affected. In addition, the new standard does not materially impact the timing or measurement of the Company’s revenue recognition as it is consistent with the Company’s existing accounting for contracts within the scope of the new standard. The Company adopted this guidance as of January 1, 2018 using the modified retrospective method where there was no cumulative effect adjustment to retained earnings as a result of adopting this new standard. In addition, the standard did not have a material impact on our consolidated financial statements. The Company has provided a disaggregation of the significant categories of revenues within the scope of this guidance and expanded the qualitative disclosures of the Company’s noninterest income. See Note 12 — Revenue from Contracts with Customers for additional information. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. With the exception of the amendments related to equity investments without readily determinable fair values and the use of exit price to measure the fair value of financial instruments for disclosure purposes that will be adopted prospectively, the Company adopted all the other amendments of the standard effective January 1, 2018 on a modified retrospective basis. ASU 2016-01 requires investments in marketable equity securities to be accounted for at fair value with unrealized gains or losses reflected in earnings. As of the date of adoption, the Company reclassified approximately $31.9 million of marketable equity securities that were previously classified as Available-for-sale investment securities, at fair value to Investment in tax credits and other investments, net. In addition, the Company recorded a cumulative-effect adjustment as of January 1, 2018 that reduced retained earnings by $545 thousand and increased AOCI by $385 thousand . The guidance also provides a measurement alternative for equity securities without readily determinable fair values to be measured at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Such price changes (if any) are reflected in earnings beginning in the period of adoption. The Company elected the measurement alternative for its privately held cost method investments of $11.4 million . No cumulative-effect adjustment to retained earnings was recorded related to the adoption of this guidance. The Company’s investments in the Federal Reserve Bank of San Francisco (“FRB”) and FHLB stock are not subject to this guidance and continue to be accounted for at cost. In addition, ASU 2016-01 eliminated the requirement to disclose methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the Consolidated Balance Sheet. Furthermore, for purposes of disclosing the fair value of financial instruments carried at amortized cost, the Company has updated its valuation methods as necessary to conform to an exit price concept as required by ASU 2016-01. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to provide guidance on eight specific issues related to classification on the Consolidated Statement of Cash Flows. The specific issues cover cash payments for debt prepayment or debt extinguishment costs; cash outflows for settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments that are not made soon after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; and beneficial interests received in securitization transactions. The guidance also clarifies that in instances of cash flows with multiple aspects that cannot be separately identified, the classification should be based on the activity that is likely to be the predominant source or use of the cash flows. The Company adopted this guidance in the first quarter of 2018 on a retrospective basis. The adoption of this guidance did not have a material impact on the Company’s 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 those amounts that are deemed to be restricted cash and restricted cash equivalents in its cash and cash equivalents balances on the Consolidated Statement of Cash Flows. In addition, the Company is required to explain the changes in the combined total of restricted and unrestricted balances on the Consolidated Statement of Cash Flows. The Company adopted this guidance in the first quarter of 2018 on a retrospective basis. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 narrows the definition of a business by adding an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If the screen is met, the set is not a business. ASU 2017-01 also specifies the minimum required inputs and processes necessary to be a business, and it removes the requirement to evaluate a market participant’s ability to replace missing elements when all of the inputs or processes that the seller used in operating a business were not obtained. ASU 2017-01 became effective on January 1, 2018. The Company adopted this guidance in the first quarter of 2018. This guidance is to be applied prospectively and did not have a material impact on the Company’s 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. The guidance does not require any accounting changes 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 on January 1, 2019, with early adoption permitted. The guidance should be applied using a modified retrospective transition method, with the cumulative-effect adjustment recognized to retained earnings as of the beginning of the period of adoption. The Company has elected to early adopt this guidance in the first quarter of 2018. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting , which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions and classification of the awards are the same immediately before and after the modification. ASU 2017-09 was effective on January 1, 2018, with early adoption permitted. The Company adopted the guidance in the first quarter of 2018 prospectively. The adoption did not have an impact on the Company’s Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This guidance better aligns the Company’s risk management activities and financial reporting for hedging relationships through changes to both the description and measurement guidance for qualifying hedging relationships. The guidance also changes the presentation of hedge results, expands and refines hedge accounting for both nonfinancial and financial risk components, and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item on the Consolidated Financial Statements. ASU 2017-12 is effective on January 1, 2019 by modified retrospective method, with early adoption permitted. The Company has elected to early adopt this guidance in the first quarter of 2018, and the adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Under current U.S. GAAP, deferred tax assets and liabilities are to be adjusted for the effect of a change in tax laws or rates included in net income of the reporting period that includes the enactment date. This accounting treatment resulted in the tax effect of items within AOCI not reflecting the appropriate tax rate. This guidance permits companies to reclassify the stranded tax effects resulting from the Tax Act from AOCI to retained earnings. The guidance is effective on January 1, 2019 with early adoption permitted. The Company has elected to early adopt this guidance in the first quarter of 2018 retrospectively. The Company has identified the unrealized losses for available-for-sale securities to be the only item in AOCI with stranded tax effects, and made a policy election to reclassify the related stranded tax effects using the “investment-by-investment” approach. The adoption of the guidance resulted in a cumulative-effect adjustment as of January 1, 2018 that increased retained earnings by $6.7 million and reduced AOCI by the same amount. Recent Accounting Pronouncements 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. The guidance requires lessees to recognize right-of-use assets and related lease liabilities for all leases with lease terms of more than 12 months on the Consolidated Balance Sheet, and provide quantitative and qualitative disclosures regarding key information about the 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 on January 1, 2019, with early adoption permitted. The guidance should be applied using a modified retrospective transition method through a cumulative-effect adjustment. The Company has completed its review of its existing lease contracts and service contracts that may include embedded leases and is in the process of implementing a new system to address this guidance. 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 Sheet. The Company does not expect a material impact to its recognition of operating lease expense on its Consolidated Statement of Income and is in the process of evaluating the impacts of adopting the new accounting guidance on its disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new current expected credit loss (“CECL”) impairment model applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loan receivables, available-for-sale and held-to-maturity debt securities, net investments in leases and off-balance sheet credit exposures. The CECL model utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. The expected credit losses are adjusted in each period for changes in expected lifetime credit losses. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loan 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 on January 1, 2020, with early adoption permitted on January 1, 2019. The guidance should be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. 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 debt securities. The Company has begun its implementation efforts by identifying key interpretive issues, assessing its processes and identifying the system requirements against the new guidance to determine what modifications may be required. The implementation efforts also involve, but are not limited to, assessing potential macroeconomic factors that will be used to determine the reasonable and supportable forecast period. 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. Under this guidance, 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. The guidance also eliminates the requirement to perform a qualitative assessment for any reporting units with a zero or negative carrying amount. ASU 2017-04 is effective on January 1, 2020 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 does not expect the adoption of this guidance to have a material impact on the Company’s Consolidated Financial Statements. |
Dispositions and Held-for-Sale
Dispositions and Held-for-Sale | 3 Months Ended |
Mar. 31, 2018 | |
Dispositions And Held-For-Sale Classification [Abstract] | |
Dispositions and Held-for-Sale | Dispositions and Held-for-Sale In the first quarter of 2017, the Company completed the sale and leaseback of a commercial property in San Francisco, California for cash consideration of $120.6 million , and entered into a leaseback with the buyer for part of the property, consisting of a retail branch and office facilities. The net book value of the property was $31.6 million at the time of the sale, resulting in a pre-tax gain of $85.4 million after considering $3.6 million in selling costs. As the leaseback is an operating lease, $71.7 million of the gain was recognized on the closing date, and $13.7 million was deferred and will be recognized over the term of the lease agreement. The Company reports a business as held-for-sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specific criteria are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less costs to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense are not recorded with respect to the assets of a business after it is classified as held-for-sale. On November 11, 2017, the Bank entered into a Purchase and Assumption Agreement to sell all of its eight Desert Community Bank (“DCB”) branches located in the High Desert area of Southern California, and related assets and liabilities to Flagstar Bank, a wholly-owned subsidiary of Flagstar Bancorp, Inc. The Company determined that this transaction met the criteria for held-for-sale as of December 31, 2017 . Branch assets held-for-sale as of December 31, 2017 were largely comprised of $78.1 million in loans held-for-sale and $8.0 million in premises and equipment, net. Branch liability held-for-sale as of December 31, 2017 was comprised of $605.1 million in deposits. The sale of the Bank’s eight DCB branches was completed on March 17, 2018. The assets and liabilities of the DCB branches that were sold in this transaction included primarily $613.7 million of deposits, $59.1 million of loans, $9.0 million of cash and cash equivalents and $7.9 million of premises and equipment. The transaction resulted in a net cash payment of $499.9 million by the Company to Flagstar Bank. After transaction costs, the sale resulted in a pre-tax gain of $31.5 million in the three months ended March 31, 2018, which was reported as Net gain on sale of business on the Consolidated Statement of Income. |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Fair Value of Financial Instruments | Fair Value Measurement and Fair Value of Financial Instruments Fair Value Determination Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value of financial instruments, 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 an asset or a 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 traded in active markets; quoted prices for identical or similar instruments traded 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. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable, and the significance of those inputs in the fair valuation measurement. 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. Level 3 Assets and Liabilities Valuation Process The Company generally determines the fair value of Level 3 assets and liabilities by using internal valuation methodologies, which primarily include discounted cash flows techniques that require both observable and unobservable inputs. Unobservable inputs (such as volatility and liquidity discount) are generally derived from historic performance of similar instruments or determined from previous market trades in similar instruments. Such inputs can be derived from similar portfolios with known historic experience or recent trades where particular unobservable inputs may be implied. The Company compares each unobservable input to historic experience and other third-party data where available. The models developed under internal valuation methodologies are subject to review according to the Company’s risk management policies and procedures, which include model validation. Model validation assesses the adequacy and appropriateness of the model, including reviewing its supporting model documentation and key components such as inputs, logic, processing components and output results. Validation also includes ensuring significant unobservable model inputs are appropriate given observable market transactions or other market data within the same or similar asset classes. The Company has ongoing monitoring procedures in place for Level 3 assets and liabilities that use internal valuation methodologies, which include but are not limited to, the following: • review of valuation results against expectations, including review of significant or unusual value fluctuations; and • quarterly analysis related to market data, where available. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities on a recurring basis, as well as the general classification of these instruments pursuant to the valuation hierarchy. 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 primarily comprised of U.S. Treasury securities. The fair value of other available-for-sale investment securities is 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 reviewed the methodologies used to develop the resulting fair value. The available-for-sale investment securities valued using such methods are classified as Level 2. Equity Securities — Equity securities were comprised of mutual funds as of both March 31, 2018 and December 31, 2017 . The Company uses Net Asset Value (“NAV”) information to determine the fair value of these equity securities. When NAV is available periodically and the equity securities can be put back to the transfer agents at the publicly available NAV, the fair value of the equity securities is classified as Level 1. When NAV is available periodically but the equity securities may not be readily marketable at its periodic NAV in the secondary market, the fair value of these equity securities is 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 fair value of the interest rate options, which consist 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 fall below (rise above) the strike rate of the floors (caps). 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, 2018 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of these interest rate contracts 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 instruments as Level 2 due to the observable nature of the significant inputs utilized. Foreign Exchange Spot and Forwards — 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 rate 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 rates. 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. Due to the short-term nature of the majority of these contracts, the counterparties’ credit risks are considered nominal and result 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 exchange contracts are classified as Level 2. During the three months ended March 31, 2018 , the Company entered into foreign currency forward contracts to hedge its net investment in its China subsidiary, East West Bank (China) Limited, a non-US Dollar (“USD”) functional currency subsidiary in China. These foreign currency forward contracts were designated as net investment hedges. A s of December 31, 2017 , foreign exchange forward contracts were used to economically hedge the Company’s net investment in East West Bank (China) Limited. The fair value of foreign currency forward contracts is valued by comparing the contracted foreign exchange rate to the current market foreign exchange rate. Key inputs of the current market exchange rate include forward rates and the interest rate curves 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 (“RPAs”) — The Company has entered into RPAs with institutional counterparties, under which the Company assumes its pro-rata share of the credit exposure associated with a 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. Accordingly, RPAs fall within Level 2. Equity warrants — The Company has obtained warrants to purchase preferred and common stock of technology and life sciences companies as part of the loan origination process. As of March 31, 2018 and December 31, 2017 , the warrants included on the Consolidated Financial Statements were from public and private companies. The Company valued these warrants based on the Black-Scholes option pricing model. For warrants from public companies, the model uses the underlying stock price, stated strike price, warrant expiration date, risk-free interest rate based on a duration-matched U.S. Treasury rate and market-observable company-specific option volatility as inputs to value the warrants. Due to the observable nature of the inputs used in deriving the estimated fair value, warrants from public companies are classified as Level 2. For warrants from private companies, the model uses inputs such as the offering price observed in the most recent round of funding, stated strike price, warrant expiration date, risk-free interest rate based on duration-matched U.S. Treasury rate and option volatility. The model values are then adjusted for a general lack of liquidity due to the private nature of the underlying companies. Due to the unobservable nature of the option volatility and liquidity discount assumptions used in deriving the estimated fair value, warrants from private companies are classified as Level 3. For the private company warrants that are expected to be exercised under known merger and acquisition (“M&A”) events associated with the portfolio company, the estimated fair value has been further adjusted based on non-public information considering the most likely outcome from the M&A events, where applicable. On a quarterly basis, the changes in the fair value of warrants from private companies are reviewed for reasonableness, and a sensitivity analysis on the option volatility and liquidity discount assumptions is performed. Commodity Options — The Company enters into energy commodity contracts in the form of options with its commercial loan customers to allow them to hedge against the risk of fluctuation in energy commodity prices. The fair value of the commodity contract is determined using the Black’s option pricing model utilizing expectation of future commodity price and volatility. The future commodity contract price is derived from observable inputs such as dealer quotes. The Company classifies these instruments as Level 2 due to the observable nature of the significant inputs utilized. The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 : ($ in thousands) Assets (Liabilities) Measured at Fair Value on a Recurring Basis 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 (1) : U.S. Treasury securities $ 651,830 $ 651,830 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 233,016 — 233,016 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 339,834 — 339,834 — Residential mortgage-backed securities 989,453 — 989,453 — Municipal securities 74,076 — 74,076 — Non-agency residential mortgage-backed securities: Investment grade 8,404 — 8,404 — Corporate debt securities: Investment grade 35,858 — 35,858 — Foreign bonds: Investment grade 478,945 — 478,945 — Total available-for-sale investment securities $ 2,811,416 $ 651,830 $ 2,159,586 $ — Investments in tax credit and other investments: Equity securities with readily determinable fair value (2) $ 30,987 $ 20,489 $ 10,498 $ — Total investments in tax credit and other investments $ 30,987 $ 20,489 $ 10,498 $ — Derivative assets (3) : Interest rate swaps and options $ 51,933 $ — $ 51,933 $ — Foreign exchange spot and forwards 6,087 — 6,087 — RPAs 1 — 1 — Equity warrants 1,513 — 582 931 Commodity options 297 — 297 — Total derivative assets $ 59,831 $ — $ 58,900 $ 931 Derivative liabilities: Interest rate swaps (3) $ 8,251 $ — $ 8,251 $ — Foreign exchange forwards (1) 1,154 — 1,154 — Interest rate swaps and options (3) 72,893 — 72,893 — Foreign exchange spot and forwards (3) 4,066 — 4,066 — RPAs (3) 21 — 21 — Commodity options (3) 288 — 288 — Total derivative liabilities $ 86,673 $ — $ 86,673 $ — (1) Changes in fair value of these financial instruments are recorded through other comprehensive income. (2) Equity securities with readily determinable fair value were comprised of mutual funds as of March 31, 2018 . These securities are held at NAV and changes in fair value are recorded through net income. (3) Changes in fair value of these financial instruments are recorded through net income. ($ in thousands) Assets (Liabilities) Measured at Fair Value on a Recurring Basis Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Available-for-sale investment securities (1) : U.S. Treasury securities $ 640,280 $ 640,280 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 203,392 — 203,392 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 318,957 — 318,957 — Residential mortgage-backed securities 1,190,271 — 1,190,271 — Municipal securities 99,982 — 99,982 — Non-agency residential mortgage-backed securities: Investment grade 9,117 — 9,117 — Corporate debt securities: Investment grade 37,003 — 37,003 — Foreign bonds: Investment grade 486,408 — 486,408 — Other securities 31,342 20,735 10,607 — Total available-for-sale investment securities $ 3,016,752 $ 661,015 $ 2,355,737 $ — Derivative assets (2) : Interest rate swaps and options $ 58,633 $ — $ 58,633 $ — Foreign exchange spot and forwards 5,840 — 5,840 — RPAs 1 — 1 — Equity warrants 1,672 — 993 679 Total derivative assets $ 66,146 $ — $ 65,467 $ 679 Derivative liabilities (2) : Interest rate swaps $ 6,799 $ — $ 6,799 $ — Interest rate swaps and options 57,958 — 57,958 — Foreign exchange spot and forwards 10,170 — 10,170 — RPAs 8 — 8 — Total derivative liabilities $ 74,935 $ — $ 74,935 $ — (1) Changes in fair value of these financial instruments are recorded through other comprehensive income. (2) Changes in fair value of these financial instruments are recorded through net income. 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. As of March 31, 2018 and December 31, 2017 , the only assets measured on a recurring basis that were classified as Level 3 were equity warrants issued by private companies. The following table presents a reconciliation of the beginning and ending balances for these warrants for the three months ended March 31, 2018 : ($ in thousands) Three Months Ended March 31, 2018 Equity warrants Beginning balance $ 679 Total gains for the period included in earnings (1) : 244 Issuances 8 Ending balance $ 931 (1) Unrealized gains of warrant income are included in Ancillary loan fees and other income on the Consolidated Statement of Income. Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value 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 into and out of Level 1, Level 2 or Level 3 during the three months ended March 31, 2018 and 2017 . The following table presents quantitative information about significant unobservable inputs used in the valuation of assets measured on a recurring basis classified as Level 3 as of March 31, 2018 . Significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets or liabilities. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets or liabilities would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Measurements (Level 3) Valuation Technique Unobservable Input(s) Weighted- Average Derivative assets: Equity warrants $ 931 Black-Scholes option pricing model Volatility 48% Liquidity discount 47% Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. The adjustments to fair value generally require the assets to be recorded at the lower of cost or fair value, or assessed for impairment. 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 impairment on certain non-PCI loans, application of fair value less costs to sell on OREO or lower of cost or fair value on loans held-for-sale. Non-PCI Impaired Loans — The Company typically adjusts the carrying amount of impaired loans when there is evidence of probable loss and when the expected fair value of the loan is less than its carrying amount. Impaired loans with specific reserves are classified as Level 3 assets. The following two methods are used to derive the fair value of impaired loans: • Discounted cash flow valuation techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of the loan and then discounting those cash flows. • The Company establishes a specific reserve for an impaired loan based on the fair value of the underlying collateral (which may take the form of real estate, inventory, equipment, contracts or guarantees). The fair value of the underlying collateral is generally based on third party appraisals (or internal evaluation if a third party appraisal is not required by regulations), which utilize one or more valuation techniques (income, market and/or cost approaches). 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 costs to sell at the time of foreclosure and at the lower of cost or estimated fair value less the costs to sell subsequent to acquisition. On a monthly basis, the current fair market value of each OREO property is reviewed to ensure that the current carrying value is appropriate. OREO properties are classified as Level 3. The following tables present the carrying amounts of assets included on the Consolidated Balance Sheet that had fair value changes measured on a nonrecurring basis as of March 31, 2018 and December 31, 2017 : 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 lending: Commercial and industrial (“C&I”) $ 29,403 $ — $ — $ 29,403 Commercial real estate (“CRE”) 5,171 — — 5,171 Consumer lending: Single-family residential 2,600 — — 2,600 Total non-PCI impaired loans $ 37,174 $ — $ — $ 37,174 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 lending: C&I $ 31,404 $ — $ — $ 31,404 CRE 2,667 — — 2,667 Construction and land 3,973 — — 3,973 Consumer lending: Single-family residential 144 — — 144 Total non-PCI impaired loans $ 38,188 $ — $ — $ 38,188 OREO $ 9 $ — $ — $ 9 The following table presents the fair value adjustments of assets measured on a nonrecurring basis recognized during the three months ended and included on the Consolidated Balance Sheet as of March 31, 2018 and 2017 : Three Months Ended March 31, ($ in thousands) 2018 2017 Non-PCI impaired loans: Commercial lending: C&I $ 13,899 $ 32 CRE 95 (64 ) Consumer lending: Single-family residential (15 ) 82 Other consumer — (1 ) Total non-PCI impaired loans $ 13,979 $ 49 OREO $ — $ (285 ) 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, 2018 and December 31, 2017 : ($ in thousands) Fair Value Valuation Unobservable Input(s) Range of Input(s) Weighted-Average March 31, 2018 Non-PCI impaired loans $ 28,596 Discounted cash flows Discount 4% — 7% 5% $ 3,114 Fair value of property Selling cost 8% 8% $ 4,849 Fair value of collateral Discount 15% — 50% 39% $ 615 Fair value of collateral Contract value NM NM December 31, 2017 Non-PCI impaired loans $ 22,802 Discounted cash flows Discount 4% — 10% 6% $ 9,773 Fair value of property Selling cost 8% 8% $ 3,207 Fair value of collateral Discount 20% — 32% 29% $ 2,406 Fair value of collateral Contract value NM NM OREO $ 9 Fair value of property Selling cost 8% 8% NM — Not meaningful. Disclosures about Fair Value of Financial Instruments The following tables present the fair value estimates for financial instruments as of March 31, 2018 and December 31, 2017 , excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in Note 4 — Fair Value Measurement and Fair Value of Financial Instruments . The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable, accrued interest payable and mortgage servicing rights, which are included in Other assets . These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet. During the first quarter of 2018 , the Company adopted ASU 2016-01 and has updated its valuation methods as necessary to conform to an “exit price” concept as required by ASU 2016-01. ($ in thousands) March 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 2,314,938 $ 2,314,938 $ — $ — $ 2,314,938 Interest-bearing deposits with banks $ 478,871 $ — $ 478,871 $ — $ 478,871 Resale agreements (1) $ 1,050,000 $ — $ 1,026,415 $ — $ 1,026,415 Restricted equity securities $ 73,787 $ — $ 73,787 $ — $ 73,787 Loans held-for-sale $ 46,181 $ — $ 46,181 $ — $ 46,181 Loans held-for-investment, net $ 29,257,594 $ — $ — $ 29,503,038 $ 29,503,038 Mortgage servicing rights $ 7,659 $ — $ — $ 12,626 $ 12,626 Accrued interest receivable $ 127,905 $ — $ 127,905 $ — $ 127,905 Financial liabilities: Customer deposits: Demand, checking, savings and money market deposits $ 26,407,708 $ — $ 26,407,708 $ — $ 26,407,708 Time deposits $ 6,201,069 $ — $ 6,177,010 $ — $ 6,177,010 Short-term borrowings $ 30,277 $ — $ 30,277 $ — $ 30,277 FHLB advances $ 324,451 $ — $ 335,788 $ — $ 335,788 Repurchase agreements (1) $ 50,000 $ — $ 114,260 $ — $ 114,260 Long-term debt $ 166,640 $ — $ 172,521 $ — $ 172,521 Accrued interest payable $ 12,686 $ — $ 12,686 $ — $ 12,686 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . As of March 31, 2018 , $400.0 million out of $450.0 million of repurchase agreements were eligible for netting against resale agreements. ($ in thousands) December 31, 2017 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 2,174,592 $ 2,174,592 $ — $ — $ 2,174,592 Interest-bearing deposits with banks $ 398,422 $ — $ 398,422 $ — $ 398,422 Resale agreements (1) $ 1,050,000 $ — $ 1,035,158 $ — $ 1,035,158 Restricted equity securities $ 73,521 $ — $ 73,521 $ — $ 73,521 Loans held-for-sale $ 85 $ — $ 85 $ — $ 85 Loans held-for-investment, net $ 28,688,590 $ — $ — $ 28,956,349 $ 28,956,349 Branch assets held-for-sale $ 91,318 $ 5,143 $ 10,970 $ 78,132 $ 94,245 Mortgage servicing rights $ 7,771 $ — $ — $ 11,324 $ 11,324 Accrued interest receivable $ 121,719 $ — $ 121,719 $ — $ 121,719 Financial liabilities: Customer deposits: Demand, checking, savings and money market deposits $ 25,974,314 $ — $ 25,974,314 $ — $ 25,974,314 Time deposits $ 5,640,749 $ — $ 5,626,855 $ — $ 5,626,855 Branch liability held-for-sale $ 605,111 $ — $ — $ 643,937 $ 643,937 FHLB advances $ 323,891 $ — $ 335,901 $ — $ 335,901 Repurchase agreements (1) $ 50,000 $ — $ 104,830 $ — $ 104,830 Long-term debt $ 171,577 $ — $ 171,673 $ — $ 171,673 Accrued interest payable $ 10,724 $ — $ 10,724 $ — $ 10,724 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . As of December 31, 2017 , $400.0 million out of $450.0 million of repurchase agreements were eligible for netting against resale agreements. |
Securities Purchased under Resa
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements | 3 Months Ended |
Mar. 31, 2018 | |
Resale and Repurchase Agreements [Abstract] | |
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements | Securities Purchased under Resale Agreements and Sold under Repurchase Agreements Resale Agreements Resale agreements are recorded at the values 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 $1.45 billion as of both March 31, 2018 and December 31, 2017 . The weighted-average interest rates were 2.55% and 2.43% as of March 31, 2018 and December 31, 2017 , respectively. Repurchase Agreements Long-term repurchase agreements are accounted for as collateralized financing transactions and recorded at the values at which the securities are sold. The collateral for the repurchase agreements is primarily comprised of U.S. Treasury securities, U.S. government agency and U.S. government sponsored enterprise mortgage-backed 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 $450.0 million as of both March 31, 2018 and December 31, 2017 . The weighted-average interest rates were 4.07% and 3.65% as of March 31, 2018 and December 31, 2017 , respectively. Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that provide the Company, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11. Collateral accepted includes securities that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Collateral accepted or pledged in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, but is usually delivered to and held by the third party trustees. The collateral amounts received/pledged are limited for presentation purposes to the related recognized asset/liability balance for each counterparty, and accordingly, do not include excess collateral received/pledged. The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of March 31, 2018 and December 31, 2017 : ($ in thousands) As of March 31, 2018 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Financial Collateral Net Amount Resale agreements $ 1,450,000 $ (400,000 ) $ 1,050,000 $ — $ (1,037,413 ) (1) $ 12,587 Gross Amounts Gross Amounts Net Amounts of on the Gross Amounts Not Offset on the Liabilities Financial Collateral Net Amount Repurchase agreements $ 450,000 $ (400,000 ) $ 50,000 $ — $ (50,000 ) (2) $ — ($ in thousands) As of December 31, 2017 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Financial Collateral Received Net Amount Resale agreements $ 1,450,000 $ (400,000 ) $ 1,050,000 $ — $ (1,045,696 ) (1) $ 4,304 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Liabilities Financial Collateral Net Amount Repurchase agreements $ 450,000 $ (400,000 ) $ 50,000 $ — $ (50,000 ) (2) $ — (1) 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. (2) 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, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables present the amortized cost, gross unrealized gains and losses, and fair value by major categories of available-for-sale investment securities carried at fair value, as of March 31, 2018 and December 31, 2017 : As of March 31, 2018 ($ in thousands) Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 668,670 $ 93 $ (16,933 ) $ 651,830 U.S. government agency and U.S. government sponsored enterprise debt securities 235,776 175 (2,935 ) 233,016 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 352,980 170 (13,316 ) 339,834 Residential mortgage-backed securities 1,008,235 1,844 (20,626 ) 989,453 Municipal securities 74,942 251 (1,117 ) 74,076 Non-agency residential mortgage-backed securities: Investment grade (1) 8,547 — (143 ) 8,404 Corporate debt securities: Investment grade (1) 36,379 178 (699 ) 35,858 Foreign bonds: Investment grade (1) (2) 505,364 — (26,419 ) 478,945 Total available-for-sale investment securities $ 2,890,893 $ 2,711 $ (82,188 ) $ 2,811,416 As of December 31, 2017 ($ in thousands) Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 651,395 $ — $ (11,115 ) $ 640,280 U.S. government agency and U.S. government sponsored enterprise debt securities 206,815 62 (3,485 ) 203,392 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 328,348 141 (9,532 ) 318,957 Residential mortgage-backed securities 1,199,869 3,964 (13,562 ) 1,190,271 Municipal securities 99,636 655 (309 ) 99,982 Non-agency residential mortgage-backed securities: Investment grade (1) 9,136 3 (22 ) 9,117 Corporate debt securities: Investment grade (1) 37,585 164 (746 ) 37,003 Foreign bonds: Investment grade (1) (2) 505,396 24 (19,012 ) 486,408 Other securities (3) 31,887 — (545 ) 31,342 Total available-for-sale investment securities $ 3,070,067 $ 5,013 $ (58,328 ) $ 3,016,752 (1) Available-for-sale investment securities rated BBB- or higher by Standard & Poor’s (“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 value of foreign bonds include $448.5 million and $456.1 million of multilateral development bank bonds as of March 31, 2018 and December 31, 2017 , respectively. (3) Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, these securities were reported as available-for-sale investment securities with changes in fair value recorded through other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from Available-for-sale investment securities to Investments in tax credit and other investments, net , with changes in fair value recorded through net income. Unrealized Losses The following tables present the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of March 31, 2018 and December 31, 2017 : As of March 31, 2018 ($ 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 $ 170,103 $ (3,130 ) $ 457,952 $ (13,803 ) $ 628,055 $ (16,933 ) U.S. government agency and U.S. government sponsored enterprise debt securities 133,861 (2,157 ) 86,549 (778 ) 220,410 (2,935 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 117,057 (3,255 ) 192,874 (10,061 ) 309,931 (13,316 ) Residential mortgage-backed securities 461,197 (8,362 ) 339,157 (12,264 ) 800,354 (20,626 ) Municipal securities 24,618 (671 ) 8,323 (446 ) 32,941 (1,117 ) Non-agency residential mortgage-backed securities: Investment grade 8,404 (143 ) — — 8,404 (143 ) Corporate debt securities: Investment grade — — 10,742 (699 ) 10,742 (699 ) Foreign bonds: Investment grade 130,436 (5,010 ) 348,510 (21,409 ) 478,946 (26,419 ) Total available-for-sale investment securities $ 1,045,676 $ (22,728 ) $ 1,444,107 $ (59,460 ) $ 2,489,783 $ (82,188 ) As of December 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 $ 168,061 $ (1,005 ) $ 472,219 $ (10,110 ) $ 640,280 $ (11,115 ) U.S. government agency and U.S. government sponsored enterprise debt securities 99,935 (623 ) 85,281 (2,862 ) 185,216 (3,485 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 113,775 (2,071 ) 191,827 (7,461 ) 305,602 (9,532 ) Residential mortgage-backed securities 413,621 (4,205 ) 361,809 (9,357 ) 775,430 (13,562 ) Municipal securities 8,490 (123 ) 8,588 (186 ) 17,078 (309 ) Non-agency residential mortgage-backed securities: Investment grade 4,599 (22 ) — — 4,599 (22 ) Corporate debt securities: Investment grade — — 11,905 (746 ) 11,905 (746 ) Foreign bonds: Investment grade 103,149 (1,325 ) 352,239 (17,687 ) 455,388 (19,012 ) Other securities (1) 31,215 (545 ) — — 31,215 (545 ) Total available-for-sale investment securities $ 942,845 $ (9,919 ) $ 1,483,868 $ (48,409 ) $ 2,426,713 $ (58,328 ) (1) Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, these securities were reported as available-for-sale investment securities with changes in fair value recorded through other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from Available-for-sale investment securities, at fair value to Investments in tax credit and other investments, net , with changes in fair value recorded through net income. For each reporting period, the Company examines all individual securities that are in an unrealized loss position for Other-Than-Temporary-Impairment (“OTTI”). For a discussion of the factors and criteria the Company uses in analyzing securities for OTTI, see Note 1 — Summary of Significant Accounting Policies — Securities to the Consolidated Financial Statements of the Company’s 2017 Form 10-K. The unrealized losses were primarily attributable 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 no credit loss is expected. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, no impairment loss was recorded on the Company’s Consolidated Statement of Income for each of the three months ended March 31, 2018 and 2017 . As of March 31, 2018 , the Company had 192 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily comprised of 111 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 23 U.S. Treasury securities and 17 investment grade foreign bonds. In comparison, as of December 31, 2017 , the Company had 165 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily comprised of 98 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 25 U.S. Treasury securities and 16 investment grade foreign bonds. Other-Than-Temporary Impairment No OTTI credit losses were recognized for each of the three months ended March 31, 2018 and 2017 . Realized Gains and Losses The following table presents the proceeds, gross realized gains and tax expense related to the sales of available-for-sale investment securities for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Proceeds from sales $ 214,790 $ 302,656 Gross realized gains $ 2,129 $ 2,474 Related tax expense $ 628 $ 1,040 Scheduled Maturities of Investment Securities The following table presents the scheduled maturities of available-for-sale investment securities as of March 31, 2018 : ($ in thousands) Amortized Cost Fair Value Due within one year $ 573,138 $ 549,190 Due after one year through five years 818,412 796,717 Due after five years through ten years 188,149 184,944 Due after ten years 1,311,194 1,280,565 Total available-for-sale investment securities $ 2,890,893 $ 2,811,416 Actual maturities of mortgage-backed securities can differ from contractual maturities as the 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 value of $498.7 million and $534.3 million as of March 31, 2018 and December 31, 2017 , respectively, were primarily pledged to secure repurchase agreements, public deposits, the FRB’s discount window and for other purposes required or permitted by law. Restricted Equity Securities Restricted equity securities include stock of the FRB and of the FHLB. Restricted equity securities are carried at cost as these securities do not have a readily determinable fair value. The following table presents the restricted equity securities as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 FRB stock $ 56,537 $ 56,271 FHLB stock 17,250 17,250 Total $ 73,787 $ 73,521 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses derivatives to manage exposure to market risk, primarily 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 rate 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 Sheet 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 2017 Form 10-K. The following table presents the total notional and gross fair value of the Company’s derivatives as of March 31, 2018 and December 31, 2017 . The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting arrangements, as included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet. ($ in thousands) March 31, 2018 December 31, 2017 Notional Amount Fair Value Notional Amount Fair Value Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps $ 35,811 $ — $ 8,251 $ 35,811 $ — $ 6,799 Net investment hedges: Foreign exchange forwards 97,464 — 1,154 — — — Total derivatives designated as hedging instruments $ 133,275 $ — $ 9,405 $ 35,811 $ — $ 6,799 Derivatives not designated as hedging instruments: Interest rate swaps and options $ 10,155,401 $ 51,933 $ 72,893 $ 9,333,860 $ 58,633 $ 57,958 Foreign exchange spot and forwards 895,788 6,087 4,066 770,215 5,840 10,170 Credit risk participation agreements 81,928 1 21 49,033 1 8 Equity warrants — (1) 1,513 — — (1) 1,672 — Commodity options — (2) 297 288 — — — Total derivatives not designated as hedging instruments $ 11,133,117 $ 59,831 $ 77,268 $ 10,153,108 $ 66,146 $ 68,136 (1) The Company held four warrants in public companies and 24 warrants in private companies as of March 31, 2018 . The Company held four warrants in public companies and 23 warrants in private companies as of December 31, 2017 . (2) The notional amount of the Company’s commodity option contracts entered with its customers and Chicago Mercantile Exchange (“CME”) totaled 216,000 barrels of oil each as of March 31, 2018 . Derivatives Designated as Hedging Instruments Fair Value Hedges — 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, the London Interbank Offered Rate. The Company entered into interest rate swaps, which were designated as fair value hedges. The interest rate swaps involve the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without the exchange of the underlying notional amount. The total notional amounts of the interest rate swaps on certificates of deposit were $35.8 million as of both March 31, 2018 and December 31, 2017 . The fair value liabilities of the interest rate swaps were $8.3 million and $6.8 million as of March 31, 2018 and December 31, 2017 , respectively. The following table presents the net (losses) gains recognized on the Consolidated Statement of Income related to the derivatives designated as fair value hedges for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 (Losses) gains recorded in interest expense: Recognized on interest rate swaps $ (1,452 ) $ (817 ) Recognized on certificates of deposit $ 1,279 $ 688 The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of the hedged certificates of deposit as of March 31, 2018 : ($ in thousands) March 31, 2018 Hedged Items Currently Designated Carrying Amount of the Hedged Assets (Liabilities) (1) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities) Certificates of deposit $ (29,779 ) $ 6,024 (1) The balance represents the full carrying amount of the hedged certificates of deposit as of the balance sheet date. Net Investment Hedges — ASC 830-20, Foreign Currency Matters — Foreign Currency Transactions, and ASC 815, Derivatives and Hedging, allows hedging of the foreign currency risk of a net investment in a foreign operation. The Company enters into foreign currency forward contracts to hedge its investment in East West Bank (China) Limited, a non-USD functional currency subsidiary of the Company 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 East West Bank (China) Limited, against the risk of adverse changes in the foreign currency exchange rate. The Company may de-designate the net investment hedges when the Company expects the hedge will cease to be highly effective. During the first quarter of 2017, the Company discontinued hedge accounting of the foreign currency forward contracts and continued to economically hedge its foreign currency exposure in its China subsidiary through foreign exchange forward contracts, which were included as part of the Derivatives Not Designated as Hedging Instruments — Foreign Exchange Contracts section. The cumulative effective portion of the net investment hedges recorded through the point of de-designation remained in the Foreign currency translation adjustment account within AOCI and will be reclassified into earnings only upon the sale or liquidation of the China subsidiary. During the first quarter of 2018, the Company entered into new foreign currency forward contracts designated as net investment hedges to hedge against the foreign currency exchange rate risk in connection with its investment in East West Bank (China) Limited. As of March 31, 2018 , the total notional amount and fair value of the foreign currency forward contracts designated as the net investment hedges were $97.5 million and a $1.2 million liability, respectively. As of December 31, 2017 , there were no derivative contracts designated as net investment hedges. As a result of the adoption of ASU 2017-12, the Company recorded the total fair value change of $1.2 million in the Foreign Currency Translation Adjustment account within AOCI during the three months ended March 31, 2018 . During the three months ended March 31, 2017 , before the adoption of ASU 2017-12, the Company recorded a loss of $648 thousand in the Foreign Currency Translation Adjustment account within AOCI related to the effective portion of the net investment hedges, and a loss of $2.0 million in the Letters of credit fees and foreign exchange income on the Consolidated Statement of Income related to the ineffective portion of the net investment hedges. 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 such as LCH, as a central counterparty. As of March 31, 2018 , the total notional amounts of interest rate swaps and options, including mirrored transactions with institutional counterparties and the Company’s customers, totaled $5.11 billion for derivatives that were in an asset valuation position and $5.05 billion for derivatives that were in a liability valuation position. As of December 31, 2017 , the total notional amounts of interest rate swaps and options, including mirrored transactions with institutional counterparties and the Company’s customers, totaled $4.69 billion for derivatives that were in an asset valuation position and $4.65 billion for derivatives that were in a liability valuation position. The fair value of interest rate swap and option contracts with institutional counterparties and the Company’s customers amounted to a $51.9 million asset and a $72.9 million liability as of March 31, 2018 . The fair value of interest rate swap and option contracts with institutional counterparties and the Company’s customers amounted to a $58.6 million asset and a $58.0 million liability as of December 31, 2017 . Beginning in January 2018, LCH amended its rulebook to legally characterize variation margin payments made to and received from LCH as settlement of derivatives and not as collateral against derivatives. Applying variation margin payments as settlement to LCH cleared derivative transactions resulted in a reduction in derivative asset and liability fair values of $25.7 million and $3.0 million , respectively, as of March 31, 2018. Included in the total notional amount of $10.16 billion of interest rates swaps and options is a notional amount of $1.40 billion of interest rate swaps that cleared through LCH with a fair value of approximately zero as of March 31, 2018 . Foreign Exchange Spot and Forwards — The Company enters into foreign exchange contracts with its customers, primarily comprised of spot and forward contracts to enable its customers to hedge their transactions in foreign currencies against fluctuations in foreign exchange rates, and also to allow the Company to economically hedge against foreign currency fluctuations in certain foreign currency denominated deposits that it offers to its customers. For a majority of the foreign exchange transactions entered with its customers, the Company enters into offsetting foreign exchange contracts with institutional counterparties to mitigate the foreign exchange rate risk. A majority of these contracts have original maturities of one year or less. As of March 31, 2018 and December 31, 2017 , the total notional amounts of the foreign exchange contracts were $895.8 million and $770.2 million , respectively. The fair value of the foreign exchange contracts recorded were a $6.1 million asset and a $4.1 million liability as of March 31, 2018 . The fair value of the foreign exchange contracts recorded were a $5.8 million asset and a $10.2 million liability as of December 31, 2017 . Credit Risk Participation Agreements — The Company has entered into RPAs with institutional counterparties, under which the Company assumed its pro-rata share of the credit exposure associated with a 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 or 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 amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument. As of March 31, 2018 , the notional amount and fair value of the RPAs purchased were $68.9 million and a $21 thousand liability, respectively. As of March 31, 2018 , the notional amount and fair value of the RPAs sold were $13.0 million and a $1 thousand asset, respectively. As of December 31, 2017 , the notional amount and fair value of the RPAs purchased were $35.2 million and an $8 thousand liability, respectively. As of December 31, 2017 , the notional amount and fair value of the RPAs sold were $13.8 million and a $1 thousand asset, respectively. Assuming all underlying borrowers referenced in the interest rate derivative contracts defaulted as of March 31, 2018 and December 31, 2017 , the exposures from the RPAs purchased would be $756 thousand and $419 thousand , respectively. As of March 31, 2018 and December 31, 2017 , the weighted-average remaining maturities of the outstanding RPAs were 6.7 years and 6.0 years , respectively. Equity Warrants — The Company has obtained warrants to purchase preferred and common stock of technology and life sciences companies, as part of the loan origination process. As of March 31, 2018 , the Company held four warrants in public companies and 24 warrants in private companies. The fair value of the warrants for public and private companies were a $582 thousand asset and a $931 thousand asset, respectively, totaling $ 1.5 million as of March 31, 2018 . As of December 31, 2017 , the Company held four warrants in public companies and 23 warrants in private companies. The fair value of the warrants for public and private companies were a $993 thousand asset and a $679 thousand asset, respectively, totaling $1.7 million as of December 31, 2017 . Commodity Options — In 2018, the Company entered into energy commodity contracts in the form of options with its commercial loan customers to allow them to hedge against the risk of fluctuation in energy commodity prices. To economically hedge against the risk of fluctuation in commodity prices in the products offered to its customers, the Company entered into mirrored commodity contracts with CME. As of March 31, 2018 , the total notional amount of the commodity contracts include 216,000 barrels of crude oil options with customers and 216,000 barrels of crude oil options with CME. The fair value of the commodity contracts recorded were a $297 thousand asset and a $288 thousand liability as of March 31, 2018 . Beginning in January 2017, CME amended its rulebook to legally characterize variation margin payments made to and received from CME as settlement of derivatives and not as collateral against derivatives. Applying variation margin payments as settlement to CME cleared derivative transactions resulted in a reduction in derivative asset and liability fair values of $276 thousand and $297 thousand , respectively, as of March 31, 2018. As a result, the notional quantity totaling 216,000 barrels of oil that cleared through CME had an insignificant fair value as of March 31, 2018 . The Company did not have any commodity contracts in 2017. The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three months ended March 31, 2018 and 2017 : ($ in thousands) Location in Consolidated Statement of Income Three Months Ended March 31, 2018 2017 Derivatives not designated as hedging instruments: Interest rate swaps and options Derivative fees and other income $ 1,106 $ (1,066 ) Foreign exchange spot and forwards Letters of credit fees and foreign exchange income 3,857 5,838 Credit risk participation agreements Derivative fees and other income (13 ) 1 Equity warrants Ancillary loan fees and other income (159 ) — Commodity options Derivative fees and other income — — Net gains $ 4,791 $ 4,773 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. As of March 31, 2018 and December 31, 2017 , the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a net liability position was $14.9 million and $6.3 million , respectively, with collateral posted of $12.3 million and $6.2 million , respectively. In the event that East West Bank’s credit rating had been downgraded to below investment grade, approximately $3.5 million of collateral would have been required to be posted as of March 31, 2018 . Minimal additional collateral would have been required to be posted as of December 31, 2017 . Offsetting of Derivatives The Company has entered into agreements with certain counterparty financial institutions, which include master netting agreements. However, the Company has elected to account for all derivatives with counterparty institutions on a gross basis. The following tables present gross derivatives on the Consolidated Balance Sheet and the respective collateral received or pledged in the form of other financial instruments, which are generally marketable securities and/or cash. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of overcollateralization are not shown: ($ in thousands) As of March 31, 2018 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Net Amounts Gross Amounts Not Offset on the Derivative Amount Collateral Net Amount Derivative Assets $ 59,831 $ 20,954 $ 38,877 $ — $ 38,877 $ (12,957 ) (1) $ (23,810 ) (2) $ 2,110 Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Net Amounts Gross Amounts Not Offset on the Derivative Amount Collateral Net Amount Derivative Liabilities $ 86,673 $ 61,135 $ 25,538 $ — $ 25,538 $ (12,957 ) (1) $ (12,038 ) (3) $ 543 ($ in thousands) As of December 31, 2017 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Derivative Collateral Net Amount Derivative Assets $ 66,146 $ 36,941 $ 29,205 $ — $ 29,205 $ (18,955 ) (1) $ (9,839 ) (2) $ 411 Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Derivative Collateral Net Amount Derivative Liabilities $ 74,935 $ 26,732 $ 48,203 $ — $ 48,203 $ (18,955 ) (1) $ (28,796 ) (3) $ 452 (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 cash and securities received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements, including $6.9 million and $8.6 million of cash collateral received as of March 31, 2018 and December 31, 2017, respectively. (3) Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements, including $1.5 million and $10.7 million of cash collateral posted as of March 31, 2018 and December 31, 2017 , respectively. In addition to the amounts included in the tables above, the Company also has balance sheet netting related to resale and repurchase agreements. Refer to Note 5 — Securities Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements for additional information. Refer to Note 4 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements for fair value measurement disclosures on derivatives. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses The Company’s held-for-investment loan portfolio includes originated and purchased loans. Originated and purchased loans with no evidence of credit deterioration at their acquisition date are referred to collectively as non-PCI loans. PCI loans are loans acquired with evidence of credit deterioration since their origination and for which it is probable at the acquisition date that the Company would be unable to collect all contractually required payments. PCI loans are accounted for under ASC Subtopic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . The Company has elected to account for PCI loans on a pool level basis under ASC 310-30 at the time of acquisition. The following table presents the composition of the Company’s non-PCI and PCI loans as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 Non-PCI Loans (1) PCI Loans (2) Total (1)(2) Non-PCI Loans (1) PCI Loans (2) Total (1)(2) Commercial lending: C&I $ 10,807,262 $ 11,042 $ 10,818,304 $ 10,685,436 $ 11,795 $ 10,697,231 CRE 8,762,910 259,836 9,022,746 8,659,209 277,688 8,936,897 Multifamily residential 1,898,517 56,338 1,954,855 1,855,128 61,048 1,916,176 Construction and land 669,296 44 669,340 659,326 371 659,697 Total commercial lending 22,137,985 327,260 22,465,245 21,859,099 350,902 22,210,001 Consumer lending: Single-family residential 4,818,094 112,486 4,930,580 4,528,911 117,378 4,646,289 Home equity lines of credit (“HELOCs”) 1,762,786 12,657 1,775,443 1,768,917 14,007 1,782,924 Other consumer 383,980 — 383,980 336,504 — 336,504 Total consumer lending 6,964,860 125,143 7,090,003 6,634,332 131,385 6,765,717 Total loans held-for-investment $ 29,102,845 $ 452,403 $ 29,555,248 $ 28,493,431 $ 482,287 $ 28,975,718 Allowance for loan losses (297,607 ) (47 ) (297,654 ) (287,070 ) (58 ) (287,128 ) Loans held-for-investment, net $ 28,805,238 $ 452,356 $ 29,257,594 $ 28,206,361 $ 482,229 $ 28,688,590 (1) Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(36.6) million and $(34.0) million as of March 31, 2018 and December 31, 2017 , respectively. (2) Includes ASC 310-30 discount of $32.2 million and $35.3 million as of March 31, 2018 and December 31, 2017 , respectively. The commercial lending portfolio includes C&I, CRE, multifamily residential, and construction and land loans. Consumer lending portfolio includes single-family residential, HELOC and other consumer loans. The C&I loan portfolio, which is comprised of commercial business and trade finance loans, provides financing to businesses in a wide spectrum of industries. The CRE loan portfolio includes income producing real estate loans where the interest rates may be fixed, variable or hybrid. Included in the CRE loan portfolio are owner occupied and non-owner occupied loans (where 50% or more of the debt service for the loan is provided by rental income). Construction loans in the construction and land loan portfolio mainly provide financing for the construction of hotels, multifamily and residential condominiums, as well as mixed use (residential and retail) structures. Residential loans are comprised of multifamily residential loans in the commercial lending portfolio and single-family residential loans in the consumer lending portfolio. The Company offers a variety of first lien mortgage loan programs, including fixed rate conforming loans as well as adjustable rate mortgage loans with interest rates that adjust annually after the initial fixed rate periods of one to seven years. The HELOC 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. Other consumer loans are mainly comprised of insurance premium financing and credit card loans. 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 associated with these products. The Company conducts a variety of quality control procedures and periodic audits, including the review of lending and legal requirements, to ensure that it is in compliance with these requirements. As of March 31, 2018 and December 31, 2017 , loans totaling $19.50 billion and $18.88 billion , respectively, were pledged to secure borrowings and to provide additional borrowing capacity from the FRB and the FHLB. 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 classifies loans 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 loans that have sufficient sources of repayment in order to repay the loan in full in accordance with all terms and conditions. Special Mention loans are loans that have potential weaknesses that warrant closer attention by management. Special Mention is 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 loans that 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 remains classified as Substandard grade. Doubtful loans have insufficient sources of repayment and a high probability of loss. Loss loans are loans that are 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 ratings for non-PCI loans by portfolio segment as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Pass/Watch Special Mention Substandard Doubtful Total Non-PCI Loans Commercial lending: C&I $ 10,464,618 $ 164,161 $ 150,565 $ 27,918 $ 10,807,262 CRE 8,614,575 41,942 106,393 — 8,762,910 Multifamily residential 1,884,434 — 14,083 — 1,898,517 Construction and land 614,481 684 54,131 — 669,296 Total commercial lending 21,578,108 206,787 325,172 27,918 22,137,985 Consumer lending: Single-family residential 4,803,472 7,563 7,059 — 4,818,094 HELOCs 1,753,398 2,451 6,937 — 1,762,786 Other consumer 381,487 2 2,491 — 383,980 Total consumer lending 6,938,357 10,016 16,487 — 6,964,860 Total $ 28,516,465 $ 216,803 $ 341,659 $ 27,918 $ 29,102,845 ($ in thousands) December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Total Non-PCI Loans Commercial lending: C&I $ 10,369,516 $ 114,769 $ 180,269 $ 20,882 $ 10,685,436 CRE 8,484,635 65,616 108,958 — 8,659,209 Multifamily residential 1,839,958 — 15,170 — 1,855,128 Construction and land 614,441 4,590 40,295 — 659,326 Total commercial lending 21,308,550 184,975 344,692 20,882 21,859,099 Consumer lending: Single-family residential 4,490,672 16,504 21,735 — 4,528,911 HELOCs 1,744,903 11,900 12,114 — 1,768,917 Other consumer 333,895 111 2,498 — 336,504 Total consumer lending 6,569,470 28,515 36,347 — 6,634,332 Total $ 27,878,020 $ 213,490 $ 381,039 $ 20,882 $ 28,493,431 The following tables present the credit risk ratings for PCI loans by portfolio segment as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Pass/Watch Special Mention Substandard Doubtful Total PCI Loans Commercial lending: C&I $ 10,071 $ 23 $ 948 $ — $ 11,042 CRE 219,255 2,525 38,056 — 259,836 Multifamily residential 52,426 — 3,912 — 56,338 Construction and land 44 — — — 44 Total commercial lending 281,796 2,548 42,916 — 327,260 Consumer lending: Single-family residential 111,567 748 171 — 112,486 HELOCs 12,435 212 10 — 12,657 Total consumer lending 124,002 960 181 — 125,143 Total (1) $ 405,798 $ 3,508 $ 43,097 $ — $ 452,403 ($ in thousands) December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Total PCI Loans Commercial lending: C&I $ 10,712 $ 57 $ 1,026 $ — $ 11,795 CRE 238,605 531 38,552 — 277,688 Multifamily residential 56,720 — 4,328 — 61,048 Construction and land 44 — 327 — 371 Total commercial lending 306,081 588 44,233 — 350,902 Consumer lending: Single-family residential 113,905 1,543 1,930 — 117,378 HELOCs 12,642 — 1,365 — 14,007 Total consumer lending 126,547 1,543 3,295 — 131,385 Total (1) $ 432,628 $ 2,131 $ 47,528 $ — $ 482,287 (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, unless the loan is well-collateralized or guaranteed by government agencies, and in the process of collection. Non-PCI loans that are less than 90 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, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Accruing 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 Commercial lending: C&I $ 16,767 $ 1,649 $ 2,381 $ 20,797 $ 38,609 $ 42,198 $ 80,807 $ 10,705,658 $ 10,807,262 CRE 6,872 2,095 — 8,967 5,321 21,175 26,496 8,727,447 8,762,910 Multifamily residential 2,958 14 — 2,972 1,000 1,050 2,050 1,893,495 1,898,517 Construction and land 1,804 — — 1,804 — 3,973 3,973 663,519 669,296 Total commercial lending 28,401 3,758 2,381 34,540 44,930 68,396 113,326 21,990,119 22,137,985 Consumer lending: Single-family residential 8,230 7,733 — 15,963 6 7,459 7,465 4,794,666 4,818,094 HELOCs 4,421 2,369 — 6,790 26 6,909 6,935 1,749,061 1,762,786 Other consumer 24 2 — 26 — 2,491 2,491 381,463 383,980 Total consumer lending 12,675 10,104 — 22,779 32 16,859 16,891 6,925,190 6,964,860 Total $ 41,076 $ 13,862 $ 2,381 $ 57,319 $ 44,962 $ 85,255 $ 130,217 $ 28,915,309 $ 29,102,845 ($ in thousands) December 31, 2017 Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Accruing 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 Commercial lending: C&I $ 30,964 $ 82 $ — $ 31,046 $ 27,408 $ 41,805 $ 69,213 $ 10,585,177 $ 10,685,436 CRE 3,414 466 — 3,880 5,430 21,556 26,986 8,628,343 8,659,209 Multifamily residential 4,846 14 — 4,860 1,418 299 1,717 1,848,551 1,855,128 Construction and land 758 — — 758 — 3,973 3,973 654,595 659,326 Total commercial lending 39,982 562 — 40,544 34,256 67,633 101,889 21,716,666 21,859,099 Consumer lending: Single-family residential 13,269 5,355 — 18,624 6 5,917 5,923 4,504,364 4,528,911 HELOCs 4,286 4,186 — 8,472 89 3,917 4,006 1,756,439 1,768,917 Other consumer 14 23 — 37 — 2,491 2,491 333,976 336,504 Total consumer lending 17,569 9,564 — 27,133 95 12,325 12,420 6,594,779 6,634,332 Total $ 57,551 $ 10,126 $ — $ 67,677 $ 34,351 $ 79,958 $ 114,309 $ 28,311,445 $ 28,493,431 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 2017 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. Refer to the discussion on PCI loans within this note for additional details on interest income recognition. As of March 31, 2018 and December 31, 2017 , PCI loans on nonaccrual status totaled $5.2 million and $5.3 million , respectively. Loans in Process of Foreclosure As of March 31, 2018 and December 31, 2017 , residential and consumer mortgage loans of $8.3 million and $6.6 million , respectively, were secured by residential real estate properties, for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdictions. As of March 31, 2018 , there were no foreclosed residential real estate properties included in total net OREO of $734 thousand . In comparison, a foreclosed residential real estate property with a carrying amount of $188 thousand was included in total net OREO of $830 thousand as of December 31, 2017 . Troubled Debt Restructurings Potential troubled debt restructurings (“TDRs”) are individually evaluated and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not have otherwise considered. There were no non-PCI TDR additions during the three months ended March 31, 2018 . The following table presents the additions to non-PCI TDRs for the three months ended March 31, 2017: ($ in thousands) Number Pre- Modification Post- Modification (1) Financial (2) Commercial lending: C&I 2 $ 6,448 $ 4,914 $ 1,273 CRE 1 1,526 1,505 — Construction and land 2 86 — — Total 5 $ 8,060 $ 6,419 $ 1,273 (1) Includes subsequent payments after modification and reflects the balance as of March 31, 2017. (2) The financial impact includes charge-offs and specific reserves recorded at the modification date. There were no non-PCI TDR modifications during the three months ended March 31, 2018 . The following table presents the non-PCI TDR modifications for the three months ended March 31, 2017 by modification type: ($ in thousands) Principal (1) Principal (2) Total Commercial lending: C&I $ — $ 4,914 $ 4,914 CRE 1,505 — 1,505 Total $ 1,505 $ 4,914 $ 6,419 (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 on loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three months ended March 31, 2018 and 2017 , and were still in default at the respective period end: ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31, 2018 2017 Number of Recorded Number of Recorded Commercial lending: C&I — $ — 1 $ 2,718 Consumer lending: HELOCs 1 $ 155 — $ — The amount of additional funds committed to lend to borrowers whose terms have been modified was $2.0 million and $5.1 million as of March 31, 2018 and December 31, 2017 , respectively. Impaired Loans The following tables present information on non-PCI impaired loans as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial lending: C&I $ 123,336 $ 43,192 $ 55,789 $ 98,981 $ 28,564 CRE 40,935 27,210 7,706 34,916 615 Multifamily residential 9,819 6,483 2,934 9,417 103 Construction and land 4,691 3,973 — 3,973 — Total commercial lending 178,781 80,858 66,429 147,287 29,282 Consumer lending: Single-family residential 16,983 2,600 13,219 15,819 541 HELOCs 8,277 4,774 3,360 8,134 5 Other consumer 2,491 — 2,491 2,491 2,491 Total consumer lending 27,751 7,374 19,070 26,444 3,037 Total non-PCI impaired loans $ 206,532 $ 88,232 $ 85,499 $ 173,731 $ 32,319 ($ in thousands) December 31, 2017 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial lending: C&I $ 130,773 $ 36,086 $ 62,599 $ 98,685 $ 16,094 CRE 41,248 28,699 6,857 35,556 684 Multifamily residential 11,164 8,019 2,617 10,636 88 Construction and land 4,781 3,973 — 3,973 — Total commercial lending 187,966 76,777 72,073 148,850 16,866 Consumer lending: Single-family residential 15,501 — 14,338 14,338 534 HELOCs 5,484 2,287 2,921 5,208 4 Other consumer 2,491 — 2,491 2,491 2,491 Total consumer lending 23,476 2,287 19,750 22,037 3,029 Total non-PCI impaired loans $ 211,442 $ 79,064 $ 91,823 $ 170,887 $ 19,895 The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Average Recognized Interest Income (1) Average Recognized Interest Income (1) Commercial lending: C&I $ 99,457 $ 1,900 $ 143,214 $ 221 CRE 35,166 868 44,772 35 Multifamily residential 9,458 116 9,269 38 Construction and land 3,973 69 4,717 — Total commercial lending 148,054 2,953 201,972 294 Consumer lending: Single-family residential 15,628 206 15,096 22 HELOCs 8,141 111 4,532 12 Other consumer 2,491 45 1 — Total consumer lending 26,260 362 19,629 34 Total non-PCI impaired loans $ 174,314 $ 3,315 $ 221,601 $ 328 (1) Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal, not as interest income. Allowance for Credit Losses The following table presents a summary of activities in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Non-PCI Loans Allowance for non-PCI loans, beginning of period $ 287,070 $ 260,402 Provision for loan losses on non-PCI loans 19,933 8,046 Gross charge-offs: Commercial lending: C&I (18,445 ) (7,057 ) Construction and land — (148 ) Consumer lending: Single-family residential (1 ) — Other consumer (17 ) (4 ) Total gross charge-offs (18,463 ) (7,209 ) Gross recoveries: Commercial lending: C&I 7,687 455 CRE 427 569 Multifamily residential 333 567 Construction and land 435 24 Consumer lending: Single-family residential 184 11 HELOCs — 24 Other consumer 1 118 Total gross recoveries 9,067 1,768 Net charge-offs (9,396 ) (5,441 ) Allowance for non-PCI loans, end of period 297,607 263,007 PCI Loans Allowance for PCI loans, beginning of period 58 118 Reversal of loan losses on PCI loans (11 ) (31 ) Allowance for PCI loans, end of period 47 87 Allowance for loan losses $ 297,654 $ 263,094 For further information on accounting policies and the methodologies 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 2017 Form 10-K. The following table presents a summary of activities in the allowance for unfunded credit reserves for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Allowance for unfunded credit reserves, beginning of period $ 13,318 $ 16,121 Provision for (reversal of) unfunded credit reserves 296 (947 ) Allowance for unfunded credit reserves, end of period $ 13,614 $ 15,174 The allowance for unfunded credit reserves is maintained at a level management believes to be sufficient to absorb estimated probable losses related to unfunded credit facilities. The allowance for unfunded credit reserves is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. 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, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Commercial Lending Consumer Lending C&I CRE Multifamily Residential Construction and Land Single- Family Residential HELOCs Other Consumer Total Allowance for loan losses Individually evaluated for impairment $ 28,564 $ 615 $ 103 $ — $ 541 $ 5 $ 2,491 $ 32,319 Collectively evaluated for impairment 141,131 39,056 18,396 32,220 25,416 7,036 2,033 265,288 Acquired with deteriorated credit quality — 47 — — — — — 47 Total $ 169,695 $ 39,718 $ 18,499 $ 32,220 $ 25,957 $ 7,041 $ 4,524 $ 297,654 Recorded investment in loans Individually evaluated for impairment $ 98,981 $ 34,916 $ 9,417 $ 3,973 $ 15,819 $ 8,134 $ 2,491 $ 173,731 Collectively evaluated for impairment 10,708,281 8,727,994 1,889,100 665,323 4,802,275 1,754,652 381,489 28,929,114 Acquired with deteriorated credit quality (1) 11,042 259,836 56,338 44 112,486 12,657 — 452,403 Total (1) $ 10,818,304 $ 9,022,746 $ 1,954,855 $ 669,340 $ 4,930,580 $ 1,775,443 $ 383,980 $ 29,555,248 ($ in thousands) December 31, 2017 Commercial Lending Consumer Lending C&I CRE Multifamily Residential Construction and Land Single- Family Residential HELOCs Other Consumer Total Allowance for loan losses Individually evaluated for impairment $ 16,094 $ 684 $ 88 $ — $ 534 $ 4 $ 2,491 $ 19,895 Collectively evaluated for impairment 146,964 40,495 19,021 26,881 25,828 7,350 636 267,175 Acquired with deteriorated credit quality — 58 — — — — — 58 Total $ 163,058 $ 41,237 $ 19,109 $ 26,881 $ 26,362 $ 7,354 $ 3,127 $ 287,128 Recorded investment in loans Individually evaluated for impairment $ 98,685 $ 35,556 $ 10,636 $ 3,973 $ 14,338 $ 5,208 $ 2,491 $ 170,887 Collectively evaluated for impairment 10,586,751 8,623,653 1,844,492 655,353 4,514,573 1,763,709 334,013 28,322,544 Acquired with deteriorated credit quality (1) 11,795 277,688 61,048 371 117,378 14,007 — 482,287 Total (1) $ 10,697,231 $ 8,936,897 $ 1,916,176 $ 659,697 $ 4,646,289 $ 1,782,924 $ 336,504 $ 28,975,718 (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 flows expectation. The cash flows expected over the life of the pools are estimated by an internal cash flows 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, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Accretable yield for PCI loans, beginning of period $ 101,977 $ 136,247 Accretion (9,134 ) (10,279 ) Changes in expected cash flows 3,021 2,022 Accretable yield for PCI loans, end of period $ 95,864 $ 127,990 Loans Held-for-Sale As of March 31, 2018 , loans held-for-sale of $46.2 million were comprised of C&I and single-family residential loans. In comparison, as of December 31, 2017 , loans held-for-sale of $85 thousand were comprised of single-family residential loans. Loans held-for-sale are carried at the lower of cost or fair value. When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is the Company’s intent to hold these loans to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s management evaluation processes, including asset/liability management and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from held-for-investment to held-for-sale at the lower of cost or fair value. From time to time, the Company purchases and sells loans in the secondary market. Certain purchased loans are transferred from held-for-investment to held-for-sale; and write-downs to allowance for loan losses are recorded, when appropriate. The following tables present information on the loans transferred from held-for-investment to held-for-sale, and sales and purchases of loans, during the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 Commercial Lending Consumer Lending C&I CRE Multifamily Residential Single-Family Other Consumer Total Loans transferred from held-for-investment to held-for-sale $ 146,391 $ 9,376 $ — $ — $ — $ 155,767 (1) Sales $ 102,365 $ 9,376 $ — $ 2,546 $ — $ 114,287 (2)(3)(4) Purchases $ 64,747 $ — $ 186 $ 15,113 $ — $ 80,046 (5) ($ in thousands) Three Months Ended March 31, 2017 Commercial Lending Consumer Lending C&I CRE Multifamily Single-Family Other Total Loans transferred from held-for-investment to held-for-sale $ 265,259 $ 12,765 $ — $ — $ — $ 278,024 (1) Sales $ 236,679 $ 12,765 $ — $ 4,310 $ 22,191 $ 275,945 (2)(3)(4) Purchases $ 147,116 $ — $ 126 $ — $ — $ 147,242 (5) (1) The Company recorded $85 thousand and $92 thousand in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three months ended March 31, 2018 and 2017 , respectively. (2) Includes originated loans sold of $89.7 million and $ 29.3 million for the three months ended March 31, 2018 and 2017 , respectively. Originated loans sold were primarily comprised of C&I and CRE loans for each of the three months ended March 31, 2018 , and 2017 . (3) Includes purchased loans sold in the secondary market of $24.6 million and $246.6 million for the three months ended March 31, 2018 and 2017 , respectively. (4) Net gains on sales of loans, excluding the lower of cost or fair value adjustments, were $1.6 million and $2.8 million for the three months ended March 31, 2018 and 2017 , respectively. No lower of cost or fair value adjustments were recorded for the three months ended March 31, 2018 . In comparison, the lower of cost or fair value adjustment of $69 thousand was recorded in Net gains on sales of loans on the Consolidated Statement of Income for the three months ended March 31, 2017 . (5) C&I loan purchases for each of the three months ended March 31, 2018 and 2017 mainly represent C&I syndicated loans. |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net | 3 Months Ended |
Mar. 31, 2018 | |
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 | 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 low or moderate income neighborhoods. 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 in Income tax expense on the Consolidated Statement of Income. The following table presents the balances of the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 Investments in qualified affordable housing partnerships, net $ 160,574 $ 162,824 Accrued expenses and other liabilities — Unfunded commitments $ 54,801 $ 55,815 The following table presents additional information related to the Company’s investments in qualified affordable housing partnerships, net, for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Tax credits and other tax benefits recognized $ 9,155 $ 9,621 Amortization expense included in income tax expense $ 7,073 $ 6,950 Investments in Tax Credit and Other Investments, Net Investments in tax credit and other investments, net, were $246.2 million and $224.6 million as of March 31, 2018 and December 31, 2017 , respectively. As a result of the adoption of ASU 2016-01 in the first quarter of 2018, $31.0 million of equity securities with readily determinable fair values were included in Investments in tax credit and other investments, net, on the Consolidated Balance Sheet as of March 31, 2018 . These equity securities are CRA investments and were measured at fair value with changes in fair value recorded through net income. The unrealized losses recognized during the three months ended March 31, 2018 on these equity securities totaled $ 454 thousand . The Company is not the primary beneficiary of the investments in tax credit and other investments and, therefore, is not required to consolidate these investments on the Consolidated Financial Statements. Depending on the ownership percentage and the influence the Company has on the investments in tax credit and other investments, the Company applies the equity or cost method of accounting, or the measurement alternative as elected under ASU 2016-01 for equity investments without readily determinable fair value. Total unfunded commitments for these investments were $107.8 million and $113.4 million as of March 31, 2018 and December 31, 2017 , respectively, and are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. Amortization of tax credit and other investments was $17.4 million and $14.4 million for the three months ended March 31, 2018 and 2017 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Total goodwill was $465.5 million and $469.4 million as of March 31, 2018 and December 31, 2017 , respectively. The $3.9 million decrease in goodwill was due to the sale of the Bank’s DCB branches in March 2018, for which the associated allocated goodwill was written off. Goodwill is tested for impairment on an annual basis as of December 31, or more frequently as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company’s three operating segments, Retail Banking, Commercial Banking and Other, are equivalent to the Company’s reporting units. For complete discussion and disclosure, see Note 16 — Business Segments to the Consolidated Financial Statements. Impairment Analysis The Company performed its annual impairment analysis as of December 31, 2017 and concluded that there was no goodwill impairment as the fair value of all reporting units exceeded their respective carrying value. There were no triggering events during the three months ended March 31, 2018 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 2017 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 and are included in Other assets on the Consolidated Balance Sheet. These intangibles are tested for impairment on an annual basis, or more frequently as events occur or current circumstances and conditions warrant. Core deposit intangibles associated with the sale of the Bank’s DCB branches with a net carrying value of $1.0 million were written off. There were no impairment write-downs on the remaining core deposit intangibles for each of the three months ended March 31, 2018 and 2017 . The following table presents the gross carrying value of core deposit intangible assets and accumulated amortization as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 Gross balance (1) $ 86,099 $ 100,166 Accumulated amortization (1) (67,562 ) (79,112 ) Net carrying balance $ 18,537 $ 21,054 (1) Excludes fully amortized core deposit intangible assets. 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 core deposit intangible assets was $1.5 million and $1.8 million for the three months ended March 31, 2018 and 2017 , respectively. The following table presents the estimated future amortization expense of core deposit intangibles as of March 31, 2018 : Year Ended December 31, Amount ($ in thousands) Remainder of 2018 $ 4,008 2019 4,518 2020 3,634 2021 2,749 2022 1,865 Thereafter 1,763 Total $ 18,537 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 Loan commitments $ 4,818,815 $ 5,075,480 Commercial letters of credit and SBLCs $ 1,632,585 $ 1,655,897 Loan commitments are agreements to lend to a customer provided that there are no violations of any conditions 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 are generally 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 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 the customers fail to pay, the Company would, as applicable, liquidate the collateral and/or offset accounts. As of March 31, 2018 , total letters of credit, which amounted to $1.63 billion , were comprised of SBLCs of $1.57 billion and commercial letters of credit of $60.5 million . 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 $13.4 million as of March 31, 2018 and $12.7 million as of December 31, 2017 . These amounts are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. 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 repurchase up to the recourse component of the loans when the loans default. The unpaid principal balance of total single-family and multifamily residential loans sold or securitized with recourse amounted to $108.7 million and $113.7 million as of March 31, 2018 and December 31, 2017 , respectively. The maximum potential future payments up to the recourse component that the Company is obligated to repurchase amounted to $37.8 million and $38.7 million as of March 31, 2018 and December 31, 2017 , respectively. The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit reserves and totaled $200 thousand and $214 thousand as of March 31, 2018 and December 31, 2017 , respectively. The allowance for unfunded credit reserves is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. 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 its business. In accordance with ASC 450, Contingencies, the Company accrues reserves for outstanding lawsuits, claims and proceedings when a loss contingency is probable and can be reasonably estimated. The Company estimates the amount of loss contingencies using current available information from legal proceedings, advice from legal counsel, and available insurance coverage. Due to the inherent subjectivity of the assessments and unpredictability of the outcomes of the legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, the Company’s exposure and ultimate losses may be higher, and possibly significantly more than the amounts accrued. Other Commitments — The Company has commitments to invest in qualified affordable housing partnerships, tax credit and other investments as discussed in Note 9 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements. As of March 31, 2018 and December 31, 2017 , these commitments were $162.6 million and $169.2 million , respectively. These commitments are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers - Topic 606 and all subsequent ASUs that modified ASC 606, Revenue from Contracts with Customers . The Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. The new standard did not materially impact the timing or measurement of the Company’s revenue recognition as it is consistent with the Company’s existing accounting for contracts within the scope of the new standard. There was no cumulative effect adjustment to retained earnings as a result of adopting this new standard. The following table presents revenue from contracts with customers within the scope of ASC 606 and other noninterest income, segregated by operating segments for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 Retail Banking Commercial Banking Other Total Noninterest income: Revenue from contracts with customers (1) : Branch fees: Deposit service charges and related fee income $ 6,014 $ 3,014 $ 158 $ 9,186 Card income 1,070 174 — 1,244 Wealth management fees 2,796 157 — 2,953 Total revenue from contracts with customers $ 9,880 $ 3,345 $ 158 $ 13,383 Other sources of noninterest income (2) 34,568 24,093 2,400 61,061 Total noninterest income $ 44,448 $ 27,438 $ 2,558 $ 74,444 ($ in thousands) Three Months Ended March 31, 2017 Retail Banking Commercial Banking Other Total Noninterest income: Revenue from contracts with customers (1) : Branch fees: Deposit service charges and related fee income $ 5,837 $ 2,742 $ 105 $ 8,684 Card income 1,027 213 — 1,240 Wealth management fees 3,246 1,089 — 4,335 Total revenue from contracts with customers $ 10,110 $ 4,044 $ 105 $ 14,259 Other sources of noninterest income (2) 3,454 21,690 76,425 101,569 Total noninterest income $ 13,564 $ 25,734 $ 76,530 $ 115,828 (1) There were no adjustments to the Company’s financial statements recorded as a result of the adoption of ASC 606. For comparability, the Company has adjusted prior period amounts to conform to the current period’s presentation. (2) Primarily represents revenue from contracts with customers that are out of the scope of ASC 606. Generally, the Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are typically satisfied as services are rendered. The Company generally records contract liabilities, or deferred revenue, when payments from customers are received or due in advance of providing services to customers and records contract assets when services are provided to customers before payment is received or before payment is due. Since the Company receives payments for its services during the period or at the time services are provided, there are no contract asset or receivable balances as of March 31, 2018 and December 31, 2017 . The major revenue streams by fee type that are within the scope of ASC 606 presented in the above tables are described in additional detail below: Branch Fees — Deposit Service Charges and Related Fee Income The Company offers a range of deposit products to individuals and businesses, which includes savings, money market, checking and time deposit accounts. The deposit account services include ongoing account maintenance, certain optional services, including banking services (e.g., automated teller machines, wire transfer services, and check orders), as well as treasury management and business account analysis services that are offered to business deposit customers. The Company may charge a fixed monthly account maintenance fee if certain average balances are not maintained, therefore making the fee variable. Additionally, each time a deposit customer selects an optional service, the Company may earn transactional fees. For arrangements where the Company charges ongoing account maintenance fees, it recognizes those fees each month the customer maintains its deposit account. When the customer selects an optional service, the Company generally recognizes the fee at the point in time when the transaction occurs. For business analysis accounts, business deposit customers receive an earnings credit based on their account balance which can be used to offset the cost of banking and treasury management services. Business analysis accounts that are assessed fees in excess of earnings credits received are typically charged at the end of each month after all transactions are known and the credits are calculated. Branch Fees — Card Income Card income is comprised of merchant referral fees and interchange income. For merchant referral fees, the Company provides marketing and referral services to acquiring banks for merchant card processing services and earns variable referral fees based on transaction activity. The Company satisfies its performance obligation over time as the Company identifies, solicits, and refers business customers who are provided such services. The Company receives monthly fees net of consideration it pays to the acquiring bank performing the merchant card processing services. The Company recognizes revenue on a monthly basis when the uncertainty associated with the variable referral fees is resolved at the time the Company receives monthly statements from the acquiring bank. For interchange income, the Company as a card issuer, has a stand ready performance obligation to authorize, clear, and settle card transactions. The Company earns, or pays, interchange fees which is a percentage-based fee on each transaction based on rates published by the corresponding payment network rates for transactions on their network. The Company measures its progress toward the satisfaction of its performance obligation over time, as services are rendered, and the Company provides continuous access to this service and settles transactions as its customer, the payment network, requires. Interchange income is presented net of direct costs paid to the customer and entities in their distribution chain, which are transaction based expenses such as rewards program expenses and certain network costs. Revenue is recognized when the net profit is determined by the payment networks at the end of each day. Wealth Management Fees The Company employs financial consultants to provide investment planning services for customers including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies, and risk management strategies. The fees the Company earns are variable and are generally received monthly. The Company recognizes revenue for the services performed at quarter end based on actual transaction details received from the broker dealer the Company engages. Practical Expedients and Exemptions The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose the value of unsatisfied performance obligations as the Company’s contracts with customers generally have a term that is less than one year, are open-ended with a cancellation period that is less than one year, or allow the Company to recognize revenue in the amount to which the Company has the right to invoice. In addition, given the short term nature of the contracts, the Company also applies the practical expedient in ASC 606-10-32-18 and does not adjust the consideration from customers for the effects of a significant financing component, if at contract inception the period between when the entity transfers the goods or services and when the customer pays for that good or service is one year or less. |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Pursuant to the Company’s 2016 Stock Incentive Plan, as amended, the Company may issue stock options, restricted stock awards (“RSAs”), restricted stock units (“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 or unvested RSAs as of March 31, 2018 and 2017 . 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 the RSUs are outstanding. 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 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, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Stock compensation costs $ 6,158 $ 5,151 Related net tax benefits for stock compensation plans $ 4,778 $ 4,414 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, 2018 based on the target amount of awards: Three Months Ended March 31, 2018 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 1,166,580 $ 42.00 424,299 $ 41.44 Granted 389,667 67.32 120,286 70.13 Vested (312,413 ) 39.97 (133,295 ) 41.15 Forfeited (29,223 ) 44.62 — — Outstanding, at end of period 1,214,611 $ 50.58 411,290 $ 49.93 As of March 31, 2018 , total unrecognized compensation costs related to time-based and performance-based RSUs amounted to $46.8 million and $26.0 million , respectively. These costs are expected to be recognized over a weighted-average period of 2.44 years and 2.37 years for time-based and performance-based RSUs, respectively. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
Stockholders' Equity and Earnings Per Share | Stockholders’ Equity and Earnings Per Share Warrant — The Company acquired MetroCorp Bancshares, Inc., (“MetroCorp”) on January 17, 2014. Prior to the acquisition, MetroCorp had an outstanding warrant to purchase 771,429 shares of its common stock. Upon the acquisition, the rights of the warrant holder were converted into the right to acquire 230,282 shares of East West’s common stock until January 16, 2019. The warrant has no t been exercised as of March 31, 2018 . Earnings Per Share — Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period, plus common share equivalents calculated for warrants and RSUs outstanding using the treasury stock method. The following table presents the EPS calculations for the three months ended March 31, 2018 and 2017 : ($ and shares in thousands, except per share data) Three Months Ended March 31, 2018 2017 Basic Net income $ 187,032 $ 169,736 Basic weighted-average number of shares outstanding 144,664 144,249 Basic EPS $ 1.29 $ 1.18 Diluted Net income $ 187,032 $ 169,736 Basic weighted-average number of shares outstanding 144,664 144,249 Diluted potential common shares (1) 1,275 1,483 Diluted weighted-average number of shares outstanding 145,939 145,732 Diluted EPS $ 1.28 $ 1.16 (1) Includes dilutive shares from RSUs and warrants for the three months ended March 31, 2018 and 2017 . For the three months ended March 31, 2018 and 2017, 177,807 and 193,916 weighted-average anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents the changes in the components of AOCI balances for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Available- Foreign (1) Total Available- Foreign (1) Total Beginning balance $ (30,898 ) $ (6,621 ) $ (37,519 ) $ (28,772 ) $ (19,374 ) $ (48,146 ) Cumulative effect of change in accounting principle related to marketable equity securities (2) 385 — 385 — — — Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate (3) (6,656 ) — (6,656 ) — — — Net unrealized (losses) gains arising during the period (17,311 ) 6,798 (10,513 ) 5,055 1,007 6,062 Amounts reclassified from AOCI (1,501 ) — (1,501 ) (1,434 ) — (1,434 ) Changes, net of taxes (18,812 ) 6,798 (12,014 ) 3,621 1,007 4,628 Ending balance $ (55,981 ) $ 177 $ (55,804 ) $ (25,151 ) $ (18,367 ) $ (43,518 ) (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. (2) Represents the impact of the adoption in the first quarter of 2018 of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. (3) Represents amounts reclassified from AOCI to retained earnings due to early adoption of ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Available-for-sale investment securities: Net unrealized (losses) gains arising during the period $ (24,577 ) $ 7,266 $ (17,311 ) $ 8,721 $ (3,666 ) $ 5,055 Net realized gains reclassified into net income (1) (2,129 ) 628 (1,501 ) (2,474 ) 1,040 (1,434 ) Net change (26,706 ) 7,894 (18,812 ) 6,247 (2,626 ) 3,621 Foreign currency translation adjustments: Net unrealized gains arising during period 6,798 — 6,798 1,007 — 1,007 Net change 6,798 — 6,798 1,007 — 1,007 Other comprehensive (loss) income $ (19,908 ) $ 7,894 $ (12,014 ) $ 7,254 $ (2,626 ) $ 4,628 (1) For the three months ended March 31, 2018 and 2017 , pre-tax amounts were reported in Net gains on sales of available-for-sale investment securities on the Consolidated Statement of Income. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | 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 segments 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 segments and assess its performance; and discrete financial information is available. The Retail Banking segment focuses primarily on deposit operations through the Bank’s branch network. The Commercial Banking segment primarily generates commercial loans and deposits through domestic commercial lending offices located in the U.S. and foreign commercial lending offices in China and Hong Kong. Furthermore, the Commercial Banking segment offers a wide variety of international finance, trade finance, and cash management services and products. The remaining centralized functions, including treasury activities of the Company 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 allocated 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 directly attributable to a segment is assigned to the related business segment. Indirect costs, including technology related costs and corporate overhead, are allocated based on that segment’s estimated usage using factors, including, but not limited to, full-time equivalent employees, net interest margin, and loan and deposit volume. The provision for credit losses is based on charge-offs for the period as well as an allocation of the remaining consolidated provision expense based on the average loan balances for each segment during the period. The Company’s internal funds transfer pricing process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as to provide a reasonable and consistent basis for the measurement of its business segments’ net interest margins and profitability. The Company’s internal funds transfer pricing assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions. The Company’s internal reporting process utilizes a full-allocation methodology. Under this methodology, corporate expenses and expenses incurred by the Other segment are allocated to the Retail Banking and Commercial Banking segments, except certain treasury-related expenses and an insignificant amount of other residual unallocated expenses. In reporting segment income after taxes prior to the fourth quarter of 2017, the Company applied the consolidated effective tax rate to all of its business segments, and allocated the amortization of tax credit and other investments from the Other segment to the Retail Banking and Commercial Banking segments. In the fourth quarter of 2017, the Company has recently changed its methodology to measure the after-tax income of the Retail Banking and Commercial Banking segments using the applicable statutory tax rates, with the Other segment receiving the residual tax expense or benefit to arrive at the consolidated effective tax rate. With this change, the amortization of tax credit and other investments which had previously been allocated to each segment is now allocated to the Other segment only, along with the tax benefit. The Company has also allocated indirect costs to noninterest expense by segment for management reporting. In addition, operating segment profitability, which had previously been presented on an income before income tax basis only, has now been revised to be presented both on income before and income after tax basis. Changes in the Company’s management structure and allocation or reporting methodologies may result in changes in the measurement of operating segment results. Results for prior year periods are generally reclassified for such changes for comparability 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, 2018 and 2017 : ($ in thousands) Retail Banking Commercial Banking Other Total Three Months Ended March 31, 2018 Interest income $ 104,710 $ 239,577 $ 27,586 $ 371,873 Charge for funds used (49,273 ) (111,366 ) (18,327 ) (178,966 ) Interest spread on funds used 55,437 128,211 9,259 192,907 Interest expense (24,940 ) (9,179 ) (11,061 ) (45,180 ) Credit on funds provided 145,451 25,448 8,067 178,966 Interest spread on funds provided (used) 120,511 16,269 (2,994 ) 133,786 Net interest income before provision for credit losses $ 175,948 $ 144,480 $ 6,265 $ 326,693 Provision for credit losses $ 3,093 $ 17,125 $ — $ 20,218 Noninterest income $ 44,448 $ 27,438 $ 2,558 $ 74,444 Noninterest expense $ 81,968 $ 65,020 $ 22,147 $ 169,135 Segment income (loss) before income taxes $ 135,335 $ 89,773 $ (13,324 ) $ 211,784 Segment income after income taxes $ 96,968 $ 64,362 $ 25,702 $ 187,032 As of March 31, 2018: Segment assets $ 9,345,892 $ 21,992,393 $ 6,354,873 $ 37,693,158 ($ in thousands) Retail Commercial Other Total Three Months Ended March 31, 2017 Interest income $ 81,025 $ 192,419 $ 29,225 $ 302,669 Charge for funds used (27,738 ) (64,509 ) (28,167 ) (120,414 ) Interest spread on funds used 53,287 127,910 1,058 182,255 Interest expense (16,183 ) (5,098 ) (9,266 ) (30,547 ) Credit on funds provided 102,546 12,043 5,825 120,414 Interest spread on funds provided (used) 86,363 6,945 (3,441 ) 89,867 Net interest income (loss) before provision for credit losses $ 139,650 $ 134,855 $ (2,383 ) $ 272,122 Provision for credit losses $ 378 $ 6,690 $ — $ 7,068 Noninterest income $ 13,564 $ 25,734 $ 76,530 $ 115,828 Noninterest expense $ 72,844 $ 54,373 $ 25,661 $ 152,878 Segment income before income taxes $ 79,992 $ 99,526 $ 48,486 $ 228,004 Segment income after income taxes $ 47,035 $ 58,796 $ 63,905 $ 169,736 As of March 31, 2017: Segment assets $ 8,213,268 $ 19,624,237 $ 7,504,621 $ 35,342,126 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 19, 2018 , the Company’s Board of Directors declared second quarter 2018 cash dividends on the Company’s common stock. The common stock cash dividend of $0.20 per share is payable on May 15, 2018 to stockholders of record as of May 1, 2018 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 and East West’s various subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of March 31, 2018 , East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with Financial Accounting Standards Board (“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 Consolidated Financial Statements. Certain items on the Consolidated Financial Statements and notes for the prior periods have been reclassified to conform to the current period presentation. |
New Accounting Pronouncements Adopted and Recent Accounting Pronouncements | New Accounting Pronouncements Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which clarifies the principles for recognizing revenue for contracts to provide goods or services to customers. ASU 2014-09 also requires new quantitative and qualitative disclosures including the disaggregation of revenues and descriptions of performance obligations. The Company’s revenue is comprised of net interest income and noninterest income. The scope of this new guidance explicitly excludes net interest income, as well as other revenues from financial instruments including loans, leases, securities and derivatives. Accordingly, the majority of the Company’s revenues will not be affected. In addition, the new standard does not materially impact the timing or measurement of the Company’s revenue recognition as it is consistent with the Company’s existing accounting for contracts within the scope of the new standard. The Company adopted this guidance as of January 1, 2018 using the modified retrospective method where there was no cumulative effect adjustment to retained earnings as a result of adopting this new standard. In addition, the standard did not have a material impact on our consolidated financial statements. The Company has provided a disaggregation of the significant categories of revenues within the scope of this guidance and expanded the qualitative disclosures of the Company’s noninterest income. See Note 12 — Revenue from Contracts with Customers for additional information. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. With the exception of the amendments related to equity investments without readily determinable fair values and the use of exit price to measure the fair value of financial instruments for disclosure purposes that will be adopted prospectively, the Company adopted all the other amendments of the standard effective January 1, 2018 on a modified retrospective basis. ASU 2016-01 requires investments in marketable equity securities to be accounted for at fair value with unrealized gains or losses reflected in earnings. As of the date of adoption, the Company reclassified approximately $31.9 million of marketable equity securities that were previously classified as Available-for-sale investment securities, at fair value to Investment in tax credits and other investments, net. In addition, the Company recorded a cumulative-effect adjustment as of January 1, 2018 that reduced retained earnings by $545 thousand and increased AOCI by $385 thousand . The guidance also provides a measurement alternative for equity securities without readily determinable fair values to be measured at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Such price changes (if any) are reflected in earnings beginning in the period of adoption. The Company elected the measurement alternative for its privately held cost method investments of $11.4 million . No cumulative-effect adjustment to retained earnings was recorded related to the adoption of this guidance. The Company’s investments in the Federal Reserve Bank of San Francisco (“FRB”) and FHLB stock are not subject to this guidance and continue to be accounted for at cost. In addition, ASU 2016-01 eliminated the requirement to disclose methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the Consolidated Balance Sheet. Furthermore, for purposes of disclosing the fair value of financial instruments carried at amortized cost, the Company has updated its valuation methods as necessary to conform to an exit price concept as required by ASU 2016-01. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to provide guidance on eight specific issues related to classification on the Consolidated Statement of Cash Flows. The specific issues cover cash payments for debt prepayment or debt extinguishment costs; cash outflows for settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments that are not made soon after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; and beneficial interests received in securitization transactions. The guidance also clarifies that in instances of cash flows with multiple aspects that cannot be separately identified, the classification should be based on the activity that is likely to be the predominant source or use of the cash flows. The Company adopted this guidance in the first quarter of 2018 on a retrospective basis. The adoption of this guidance did not have a material impact on the Company’s 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 those amounts that are deemed to be restricted cash and restricted cash equivalents in its cash and cash equivalents balances on the Consolidated Statement of Cash Flows. In addition, the Company is required to explain the changes in the combined total of restricted and unrestricted balances on the Consolidated Statement of Cash Flows. The Company adopted this guidance in the first quarter of 2018 on a retrospective basis. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 narrows the definition of a business by adding an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If the screen is met, the set is not a business. ASU 2017-01 also specifies the minimum required inputs and processes necessary to be a business, and it removes the requirement to evaluate a market participant’s ability to replace missing elements when all of the inputs or processes that the seller used in operating a business were not obtained. ASU 2017-01 became effective on January 1, 2018. The Company adopted this guidance in the first quarter of 2018. This guidance is to be applied prospectively and did not have a material impact on the Company’s 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. The guidance does not require any accounting changes 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 on January 1, 2019, with early adoption permitted. The guidance should be applied using a modified retrospective transition method, with the cumulative-effect adjustment recognized to retained earnings as of the beginning of the period of adoption. The Company has elected to early adopt this guidance in the first quarter of 2018. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting , which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions and classification of the awards are the same immediately before and after the modification. ASU 2017-09 was effective on January 1, 2018, with early adoption permitted. The Company adopted the guidance in the first quarter of 2018 prospectively. The adoption did not have an impact on the Company’s Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This guidance better aligns the Company’s risk management activities and financial reporting for hedging relationships through changes to both the description and measurement guidance for qualifying hedging relationships. The guidance also changes the presentation of hedge results, expands and refines hedge accounting for both nonfinancial and financial risk components, and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item on the Consolidated Financial Statements. ASU 2017-12 is effective on January 1, 2019 by modified retrospective method, with early adoption permitted. The Company has elected to early adopt this guidance in the first quarter of 2018, and the adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Under current U.S. GAAP, deferred tax assets and liabilities are to be adjusted for the effect of a change in tax laws or rates included in net income of the reporting period that includes the enactment date. This accounting treatment resulted in the tax effect of items within AOCI not reflecting the appropriate tax rate. This guidance permits companies to reclassify the stranded tax effects resulting from the Tax Act from AOCI to retained earnings. The guidance is effective on January 1, 2019 with early adoption permitted. The Company has elected to early adopt this guidance in the first quarter of 2018 retrospectively. The Company has identified the unrealized losses for available-for-sale securities to be the only item in AOCI with stranded tax effects, and made a policy election to reclassify the related stranded tax effects using the “investment-by-investment” approach. The adoption of the guidance resulted in a cumulative-effect adjustment as of January 1, 2018 that increased retained earnings by $6.7 million and reduced AOCI by the same amount. Recent Accounting Pronouncements 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. The guidance requires lessees to recognize right-of-use assets and related lease liabilities for all leases with lease terms of more than 12 months on the Consolidated Balance Sheet, and provide quantitative and qualitative disclosures regarding key information about the 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 on January 1, 2019, with early adoption permitted. The guidance should be applied using a modified retrospective transition method through a cumulative-effect adjustment. The Company has completed its review of its existing lease contracts and service contracts that may include embedded leases and is in the process of implementing a new system to address this guidance. 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 Sheet. The Company does not expect a material impact to its recognition of operating lease expense on its Consolidated Statement of Income and is in the process of evaluating the impacts of adopting the new accounting guidance on its disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new current expected credit loss (“CECL”) impairment model applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loan receivables, available-for-sale and held-to-maturity debt securities, net investments in leases and off-balance sheet credit exposures. The CECL model utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. The expected credit losses are adjusted in each period for changes in expected lifetime credit losses. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loan 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 on January 1, 2020, with early adoption permitted on January 1, 2019. The guidance should be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. 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 debt securities. The Company has begun its implementation efforts by identifying key interpretive issues, assessing its processes and identifying the system requirements against the new guidance to determine what modifications may be required. The implementation efforts also involve, but are not limited to, assessing potential macroeconomic factors that will be used to determine the reasonable and supportable forecast period. 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. Under this guidance, 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. The guidance also eliminates the requirement to perform a qualitative assessment for any reporting units with a zero or negative carrying amount. ASU 2017-04 is effective on January 1, 2020 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 does not expect the adoption of this guidance to have a material impact on the Company’s Consolidated Financial Statements. |
Held-For-Sale Classification | The Company reports a business as held-for-sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specific criteria are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less costs to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense are not recorded with respect to the assets of a business after it is classified as held-for-sale. |
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 classifies loans 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 loans that have sufficient sources of repayment in order to repay the loan in full in accordance with all terms and conditions. Special Mention loans are loans that have potential weaknesses that warrant closer attention by management. Special Mention is 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 loans that 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 remains classified as Substandard grade. Doubtful loans have insufficient sources of repayment and a high probability of loss. Loss loans are loans that are 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. |
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 and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from held-for-investment to held-for-sale at the lower of cost or fair value. From time to time, the Company purchases and sells loans in the secondary market. Certain purchased loans are transferred from held-for-investment to held-for-sale; and write-downs to allowance for loan losses are recorded, when appropriate. |
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 in Income tax expense on the Consolidated Statement of Income. |
Goodwill and Core Deposit Intangibles | Goodwill is tested for impairment on an annual basis as of December 31, or more frequently as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Core deposit intangibles represent the intangible value of depositor relationships resulting from deposit liabilities assumed in various acquisitions and are included in Other assets on the Consolidated Balance Sheet. These intangibles are tested for impairment on an annual basis, or more frequently as events occur or current circumstances and conditions warrant. |
Amortization Expense of Core Deposit Intangibles | The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. |
Earnings Per Share | 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 Fa26
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
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, 2018 and December 31, 2017 : ($ in thousands) Assets (Liabilities) Measured at Fair Value on a Recurring Basis 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 (1) : U.S. Treasury securities $ 651,830 $ 651,830 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 233,016 — 233,016 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 339,834 — 339,834 — Residential mortgage-backed securities 989,453 — 989,453 — Municipal securities 74,076 — 74,076 — Non-agency residential mortgage-backed securities: Investment grade 8,404 — 8,404 — Corporate debt securities: Investment grade 35,858 — 35,858 — Foreign bonds: Investment grade 478,945 — 478,945 — Total available-for-sale investment securities $ 2,811,416 $ 651,830 $ 2,159,586 $ — Investments in tax credit and other investments: Equity securities with readily determinable fair value (2) $ 30,987 $ 20,489 $ 10,498 $ — Total investments in tax credit and other investments $ 30,987 $ 20,489 $ 10,498 $ — Derivative assets (3) : Interest rate swaps and options $ 51,933 $ — $ 51,933 $ — Foreign exchange spot and forwards 6,087 — 6,087 — RPAs 1 — 1 — Equity warrants 1,513 — 582 931 Commodity options 297 — 297 — Total derivative assets $ 59,831 $ — $ 58,900 $ 931 Derivative liabilities: Interest rate swaps (3) $ 8,251 $ — $ 8,251 $ — Foreign exchange forwards (1) 1,154 — 1,154 — Interest rate swaps and options (3) 72,893 — 72,893 — Foreign exchange spot and forwards (3) 4,066 — 4,066 — RPAs (3) 21 — 21 — Commodity options (3) 288 — 288 — Total derivative liabilities $ 86,673 $ — $ 86,673 $ — (1) Changes in fair value of these financial instruments are recorded through other comprehensive income. (2) Equity securities with readily determinable fair value were comprised of mutual funds as of March 31, 2018 . These securities are held at NAV and changes in fair value are recorded through net income. (3) Changes in fair value of these financial instruments are recorded through net income. ($ in thousands) Assets (Liabilities) Measured at Fair Value on a Recurring Basis Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Available-for-sale investment securities (1) : U.S. Treasury securities $ 640,280 $ 640,280 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 203,392 — 203,392 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 318,957 — 318,957 — Residential mortgage-backed securities 1,190,271 — 1,190,271 — Municipal securities 99,982 — 99,982 — Non-agency residential mortgage-backed securities: Investment grade 9,117 — 9,117 — Corporate debt securities: Investment grade 37,003 — 37,003 — Foreign bonds: Investment grade 486,408 — 486,408 — Other securities 31,342 20,735 10,607 — Total available-for-sale investment securities $ 3,016,752 $ 661,015 $ 2,355,737 $ — Derivative assets (2) : Interest rate swaps and options $ 58,633 $ — $ 58,633 $ — Foreign exchange spot and forwards 5,840 — 5,840 — RPAs 1 — 1 — Equity warrants 1,672 — 993 679 Total derivative assets $ 66,146 $ — $ 65,467 $ 679 Derivative liabilities (2) : Interest rate swaps $ 6,799 $ — $ 6,799 $ — Interest rate swaps and options 57,958 — 57,958 — Foreign exchange spot and forwards 10,170 — 10,170 — RPAs 8 — 8 — Total derivative liabilities $ 74,935 $ — $ 74,935 $ — (1) Changes in fair value of these financial instruments are recorded through other comprehensive income. (2) Changes in fair value of these financial instruments are recorded through net income. |
Reconciliation of the beginning and ending balances for warrants measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following table presents a reconciliation of the beginning and ending balances for these warrants for the three months ended March 31, 2018 : ($ in thousands) Three Months Ended March 31, 2018 Equity warrants Beginning balance $ 679 Total gains for the period included in earnings (1) : 244 Issuances 8 Ending balance $ 931 (1) Unrealized gains of warrant income are included in Ancillary loan fees and other income on the Consolidated Statement of Income. |
Schedule of assets with fair value changes measured on a nonrecurring basis | The following tables present the carrying amounts of assets included on the Consolidated Balance Sheet that had fair value changes measured on a nonrecurring basis as of March 31, 2018 and December 31, 2017 : 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 lending: Commercial and industrial (“C&I”) $ 29,403 $ — $ — $ 29,403 Commercial real estate (“CRE”) 5,171 — — 5,171 Consumer lending: Single-family residential 2,600 — — 2,600 Total non-PCI impaired loans $ 37,174 $ — $ — $ 37,174 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 lending: C&I $ 31,404 $ — $ — $ 31,404 CRE 2,667 — — 2,667 Construction and land 3,973 — — 3,973 Consumer lending: Single-family residential 144 — — 144 Total non-PCI impaired loans $ 38,188 $ — $ — $ 38,188 OREO $ 9 $ — $ — $ 9 |
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 included on the Consolidated Balance Sheet as of March 31, 2018 and 2017 : Three Months Ended March 31, ($ in thousands) 2018 2017 Non-PCI impaired loans: Commercial lending: C&I $ 13,899 $ 32 CRE 95 (64 ) Consumer lending: Single-family residential (15 ) 82 Other consumer — (1 ) Total non-PCI impaired loans $ 13,979 $ 49 OREO $ — $ (285 ) |
Schedule of the carrying and fair values per the fair value hierarchy of certain financial instruments | The following tables present the fair value estimates for financial instruments as of March 31, 2018 and December 31, 2017 , excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in Note 4 — Fair Value Measurement and Fair Value of Financial Instruments . The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable, accrued interest payable and mortgage servicing rights, which are included in Other assets . These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet. During the first quarter of 2018 , the Company adopted ASU 2016-01 and has updated its valuation methods as necessary to conform to an “exit price” concept as required by ASU 2016-01. ($ in thousands) March 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 2,314,938 $ 2,314,938 $ — $ — $ 2,314,938 Interest-bearing deposits with banks $ 478,871 $ — $ 478,871 $ — $ 478,871 Resale agreements (1) $ 1,050,000 $ — $ 1,026,415 $ — $ 1,026,415 Restricted equity securities $ 73,787 $ — $ 73,787 $ — $ 73,787 Loans held-for-sale $ 46,181 $ — $ 46,181 $ — $ 46,181 Loans held-for-investment, net $ 29,257,594 $ — $ — $ 29,503,038 $ 29,503,038 Mortgage servicing rights $ 7,659 $ — $ — $ 12,626 $ 12,626 Accrued interest receivable $ 127,905 $ — $ 127,905 $ — $ 127,905 Financial liabilities: Customer deposits: Demand, checking, savings and money market deposits $ 26,407,708 $ — $ 26,407,708 $ — $ 26,407,708 Time deposits $ 6,201,069 $ — $ 6,177,010 $ — $ 6,177,010 Short-term borrowings $ 30,277 $ — $ 30,277 $ — $ 30,277 FHLB advances $ 324,451 $ — $ 335,788 $ — $ 335,788 Repurchase agreements (1) $ 50,000 $ — $ 114,260 $ — $ 114,260 Long-term debt $ 166,640 $ — $ 172,521 $ — $ 172,521 Accrued interest payable $ 12,686 $ — $ 12,686 $ — $ 12,686 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . As of March 31, 2018 , $400.0 million out of $450.0 million of repurchase agreements were eligible for netting against resale agreements. ($ in thousands) December 31, 2017 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 2,174,592 $ 2,174,592 $ — $ — $ 2,174,592 Interest-bearing deposits with banks $ 398,422 $ — $ 398,422 $ — $ 398,422 Resale agreements (1) $ 1,050,000 $ — $ 1,035,158 $ — $ 1,035,158 Restricted equity securities $ 73,521 $ — $ 73,521 $ — $ 73,521 Loans held-for-sale $ 85 $ — $ 85 $ — $ 85 Loans held-for-investment, net $ 28,688,590 $ — $ — $ 28,956,349 $ 28,956,349 Branch assets held-for-sale $ 91,318 $ 5,143 $ 10,970 $ 78,132 $ 94,245 Mortgage servicing rights $ 7,771 $ — $ — $ 11,324 $ 11,324 Accrued interest receivable $ 121,719 $ — $ 121,719 $ — $ 121,719 Financial liabilities: Customer deposits: Demand, checking, savings and money market deposits $ 25,974,314 $ — $ 25,974,314 $ — $ 25,974,314 Time deposits $ 5,640,749 $ — $ 5,626,855 $ — $ 5,626,855 Branch liability held-for-sale $ 605,111 $ — $ — $ 643,937 $ 643,937 FHLB advances $ 323,891 $ — $ 335,901 $ — $ 335,901 Repurchase agreements (1) $ 50,000 $ — $ 104,830 $ — $ 104,830 Long-term debt $ 171,577 $ — $ 171,673 $ — $ 171,673 Accrued interest payable $ 10,724 $ — $ 10,724 $ — $ 10,724 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . As of December 31, 2017 , $400.0 million out of $450.0 million of repurchase agreements were eligible for netting against resale agreements. |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Schedule of quantitative information about significant unobservable inputs used in the valuation of assets classified as Level 3 | The following table presents quantitative information about significant unobservable inputs used in the valuation of assets measured on a recurring basis classified as Level 3 as of March 31, 2018 . Significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets or liabilities. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets or liabilities would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Measurements (Level 3) Valuation Technique Unobservable Input(s) Weighted- Average Derivative assets: Equity warrants $ 931 Black-Scholes option pricing model Volatility 48% Liquidity discount 47% |
Fair Value, Measurements, Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
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, 2018 and December 31, 2017 : ($ in thousands) Fair Value Valuation Unobservable Input(s) Range of Input(s) Weighted-Average March 31, 2018 Non-PCI impaired loans $ 28,596 Discounted cash flows Discount 4% — 7% 5% $ 3,114 Fair value of property Selling cost 8% 8% $ 4,849 Fair value of collateral Discount 15% — 50% 39% $ 615 Fair value of collateral Contract value NM NM December 31, 2017 Non-PCI impaired loans $ 22,802 Discounted cash flows Discount 4% — 10% 6% $ 9,773 Fair value of property Selling cost 8% 8% $ 3,207 Fair value of collateral Discount 20% — 32% 29% $ 2,406 Fair value of collateral Contract value NM NM OREO $ 9 Fair value of property Selling cost 8% 8% NM — Not meaningful. |
Securities Purchased under Re27
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 Sheet as of March 31, 2018 and December 31, 2017 : ($ in thousands) As of March 31, 2018 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Financial Collateral Net Amount Resale agreements $ 1,450,000 $ (400,000 ) $ 1,050,000 $ — $ (1,037,413 ) (1) $ 12,587 Gross Amounts Gross Amounts Net Amounts of on the Gross Amounts Not Offset on the Liabilities Financial Collateral Net Amount Repurchase agreements $ 450,000 $ (400,000 ) $ 50,000 $ — $ (50,000 ) (2) $ — ($ in thousands) As of December 31, 2017 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Financial Collateral Received Net Amount Resale agreements $ 1,450,000 $ (400,000 ) $ 1,050,000 $ — $ (1,045,696 ) (1) $ 4,304 Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Liabilities Financial Collateral Net Amount Repurchase agreements $ 450,000 $ (400,000 ) $ 50,000 $ — $ (50,000 ) (2) $ — (1) 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. (2) 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, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses and fair value by major categories of available-for-sale investment securities | The following tables present the amortized cost, gross unrealized gains and losses, and fair value by major categories of available-for-sale investment securities carried at fair value, as of March 31, 2018 and December 31, 2017 : As of March 31, 2018 ($ in thousands) Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 668,670 $ 93 $ (16,933 ) $ 651,830 U.S. government agency and U.S. government sponsored enterprise debt securities 235,776 175 (2,935 ) 233,016 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 352,980 170 (13,316 ) 339,834 Residential mortgage-backed securities 1,008,235 1,844 (20,626 ) 989,453 Municipal securities 74,942 251 (1,117 ) 74,076 Non-agency residential mortgage-backed securities: Investment grade (1) 8,547 — (143 ) 8,404 Corporate debt securities: Investment grade (1) 36,379 178 (699 ) 35,858 Foreign bonds: Investment grade (1) (2) 505,364 — (26,419 ) 478,945 Total available-for-sale investment securities $ 2,890,893 $ 2,711 $ (82,188 ) $ 2,811,416 As of December 31, 2017 ($ in thousands) Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 651,395 $ — $ (11,115 ) $ 640,280 U.S. government agency and U.S. government sponsored enterprise debt securities 206,815 62 (3,485 ) 203,392 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 328,348 141 (9,532 ) 318,957 Residential mortgage-backed securities 1,199,869 3,964 (13,562 ) 1,190,271 Municipal securities 99,636 655 (309 ) 99,982 Non-agency residential mortgage-backed securities: Investment grade (1) 9,136 3 (22 ) 9,117 Corporate debt securities: Investment grade (1) 37,585 164 (746 ) 37,003 Foreign bonds: Investment grade (1) (2) 505,396 24 (19,012 ) 486,408 Other securities (3) 31,887 — (545 ) 31,342 Total available-for-sale investment securities $ 3,070,067 $ 5,013 $ (58,328 ) $ 3,016,752 (1) Available-for-sale investment securities rated BBB- or higher by Standard & Poor’s (“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 value of foreign bonds include $448.5 million and $456.1 million of multilateral development bank bonds as of March 31, 2018 and December 31, 2017 , respectively. (3) Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, these securities were reported as available-for-sale investment securities with changes in fair value recorded through other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from Available-for-sale investment securities to Investments in tax credit and other investments, net , with changes in fair value recorded through net income. |
Schedule of gross unrealized losses and related fair value of investment securities | The following tables present the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of March 31, 2018 and December 31, 2017 : As of March 31, 2018 ($ 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 $ 170,103 $ (3,130 ) $ 457,952 $ (13,803 ) $ 628,055 $ (16,933 ) U.S. government agency and U.S. government sponsored enterprise debt securities 133,861 (2,157 ) 86,549 (778 ) 220,410 (2,935 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 117,057 (3,255 ) 192,874 (10,061 ) 309,931 (13,316 ) Residential mortgage-backed securities 461,197 (8,362 ) 339,157 (12,264 ) 800,354 (20,626 ) Municipal securities 24,618 (671 ) 8,323 (446 ) 32,941 (1,117 ) Non-agency residential mortgage-backed securities: Investment grade 8,404 (143 ) — — 8,404 (143 ) Corporate debt securities: Investment grade — — 10,742 (699 ) 10,742 (699 ) Foreign bonds: Investment grade 130,436 (5,010 ) 348,510 (21,409 ) 478,946 (26,419 ) Total available-for-sale investment securities $ 1,045,676 $ (22,728 ) $ 1,444,107 $ (59,460 ) $ 2,489,783 $ (82,188 ) As of December 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 $ 168,061 $ (1,005 ) $ 472,219 $ (10,110 ) $ 640,280 $ (11,115 ) U.S. government agency and U.S. government sponsored enterprise debt securities 99,935 (623 ) 85,281 (2,862 ) 185,216 (3,485 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 113,775 (2,071 ) 191,827 (7,461 ) 305,602 (9,532 ) Residential mortgage-backed securities 413,621 (4,205 ) 361,809 (9,357 ) 775,430 (13,562 ) Municipal securities 8,490 (123 ) 8,588 (186 ) 17,078 (309 ) Non-agency residential mortgage-backed securities: Investment grade 4,599 (22 ) — — 4,599 (22 ) Corporate debt securities: Investment grade — — 11,905 (746 ) 11,905 (746 ) Foreign bonds: Investment grade 103,149 (1,325 ) 352,239 (17,687 ) 455,388 (19,012 ) Other securities (1) 31,215 (545 ) — — 31,215 (545 ) Total available-for-sale investment securities $ 942,845 $ (9,919 ) $ 1,483,868 $ (48,409 ) $ 2,426,713 $ (58,328 ) (1) Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, these securities were reported as available-for-sale investment securities with changes in fair value recorded through other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from Available-for-sale investment securities, at fair value to Investments in tax credit and other investments, net , with changes in fair value recorded through net income. |
Schedule of the proceeds, gross realized gains and losses, and tax expense related to the sales of available-for-sale investment securities | The following table presents the proceeds, gross realized gains and tax expense related to the sales of available-for-sale investment securities for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Proceeds from sales $ 214,790 $ 302,656 Gross realized gains $ 2,129 $ 2,474 Related tax expense $ 628 $ 1,040 |
Schedule of maturities of available-for-sale investment securities | The following table presents the scheduled maturities of available-for-sale investment securities as of March 31, 2018 : ($ in thousands) Amortized Cost Fair Value Due within one year $ 573,138 $ 549,190 Due after one year through five years 818,412 796,717 Due after five years through ten years 188,149 184,944 Due after ten years 1,311,194 1,280,565 Total available-for-sale investment securities $ 2,890,893 $ 2,811,416 |
Schedule of restricted equity securities | The following table presents the restricted equity securities as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 FRB stock $ 56,537 $ 56,271 FHLB stock 17,250 17,250 Total $ 73,787 $ 73,521 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional and gross fair values of derivatives | The following table presents the total notional and gross fair value of the Company’s derivatives as of March 31, 2018 and December 31, 2017 . The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting arrangements, as included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet. ($ in thousands) March 31, 2018 December 31, 2017 Notional Amount Fair Value Notional Amount Fair Value Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps $ 35,811 $ — $ 8,251 $ 35,811 $ — $ 6,799 Net investment hedges: Foreign exchange forwards 97,464 — 1,154 — — — Total derivatives designated as hedging instruments $ 133,275 $ — $ 9,405 $ 35,811 $ — $ 6,799 Derivatives not designated as hedging instruments: Interest rate swaps and options $ 10,155,401 $ 51,933 $ 72,893 $ 9,333,860 $ 58,633 $ 57,958 Foreign exchange spot and forwards 895,788 6,087 4,066 770,215 5,840 10,170 Credit risk participation agreements 81,928 1 21 49,033 1 8 Equity warrants — (1) 1,513 — — (1) 1,672 — Commodity options — (2) 297 288 — — — Total derivatives not designated as hedging instruments $ 11,133,117 $ 59,831 $ 77,268 $ 10,153,108 $ 66,146 $ 68,136 (1) The Company held four warrants in public companies and 24 warrants in private companies as of March 31, 2018 . The Company held four warrants in public companies and 23 warrants in private companies as of December 31, 2017 . (2) The notional amount of the Company’s commodity option contracts entered with its customers and Chicago Mercantile Exchange (“CME”) totaled 216,000 barrels of oil each as of March 31, 2018 . |
Schedule of net gains (losses) recognized on the Consolidated Statement of Income related to derivatives designated as fair value hedge | The following table presents the net (losses) gains recognized on the Consolidated Statement of Income related to the derivatives designated as fair value hedges for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 (Losses) gains recorded in interest expense: Recognized on interest rate swaps $ (1,452 ) $ (817 ) Recognized on certificates of deposit $ 1,279 $ 688 |
Schedule of the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of the hedged certificates of deposit | The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of the hedged certificates of deposit as of March 31, 2018 : ($ in thousands) March 31, 2018 Hedged Items Currently Designated Carrying Amount of the Hedged Assets (Liabilities) (1) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities) Certificates of deposit $ (29,779 ) $ 6,024 (1) The balance represents the full carrying amount of the hedged certificates of deposit as of the balance sheet date. |
Schedule of net gains (losses) recognized related to derivatives not designated on the Consolidated Statements of Income as hedging instruments | The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three months ended March 31, 2018 and 2017 : ($ in thousands) Location in Consolidated Statement of Income Three Months Ended March 31, 2018 2017 Derivatives not designated as hedging instruments: Interest rate swaps and options Derivative fees and other income $ 1,106 $ (1,066 ) Foreign exchange spot and forwards Letters of credit fees and foreign exchange income 3,857 5,838 Credit risk participation agreements Derivative fees and other income (13 ) 1 Equity warrants Ancillary loan fees and other income (159 ) — Commodity options Derivative fees and other income — — Net gains $ 4,791 $ 4,773 |
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 Sheet 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, 2018 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Net Amounts Gross Amounts Not Offset on the Derivative Amount Collateral Net Amount Derivative Assets $ 59,831 $ 20,954 $ 38,877 $ — $ 38,877 $ (12,957 ) (1) $ (23,810 ) (2) $ 2,110 Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Net Amounts Gross Amounts Not Offset on the Derivative Amount Collateral Net Amount Derivative Liabilities $ 86,673 $ 61,135 $ 25,538 $ — $ 25,538 $ (12,957 ) (1) $ (12,038 ) (3) $ 543 ($ in thousands) As of December 31, 2017 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Derivative Collateral Net Amount Derivative Assets $ 66,146 $ 36,941 $ 29,205 $ — $ 29,205 $ (18,955 ) (1) $ (9,839 ) (2) $ 411 Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Recognized Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Derivative Collateral Net Amount Derivative Liabilities $ 74,935 $ 26,732 $ 48,203 $ — $ 48,203 $ (18,955 ) (1) $ (28,796 ) (3) $ 452 (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 cash and securities received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements, including $6.9 million and $8.6 million of cash collateral received as of March 31, 2018 and December 31, 2017, respectively. (3) Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements, including $1.5 million and $10.7 million of cash collateral posted as of March 31, 2018 and December 31, 2017 , respectively. |
Loans Receivable and Allowanc30
Loans Receivable and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of composition of non-PCI and PCI loans | The following table presents the composition of the Company’s non-PCI and PCI loans as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 Non-PCI Loans (1) PCI Loans (2) Total (1)(2) Non-PCI Loans (1) PCI Loans (2) Total (1)(2) Commercial lending: C&I $ 10,807,262 $ 11,042 $ 10,818,304 $ 10,685,436 $ 11,795 $ 10,697,231 CRE 8,762,910 259,836 9,022,746 8,659,209 277,688 8,936,897 Multifamily residential 1,898,517 56,338 1,954,855 1,855,128 61,048 1,916,176 Construction and land 669,296 44 669,340 659,326 371 659,697 Total commercial lending 22,137,985 327,260 22,465,245 21,859,099 350,902 22,210,001 Consumer lending: Single-family residential 4,818,094 112,486 4,930,580 4,528,911 117,378 4,646,289 Home equity lines of credit (“HELOCs”) 1,762,786 12,657 1,775,443 1,768,917 14,007 1,782,924 Other consumer 383,980 — 383,980 336,504 — 336,504 Total consumer lending 6,964,860 125,143 7,090,003 6,634,332 131,385 6,765,717 Total loans held-for-investment $ 29,102,845 $ 452,403 $ 29,555,248 $ 28,493,431 $ 482,287 $ 28,975,718 Allowance for loan losses (297,607 ) (47 ) (297,654 ) (287,070 ) (58 ) (287,128 ) Loans held-for-investment, net $ 28,805,238 $ 452,356 $ 29,257,594 $ 28,206,361 $ 482,229 $ 28,688,590 (1) Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(36.6) million and $(34.0) million as of March 31, 2018 and December 31, 2017 , respectively. (2) Includes ASC 310-30 discount of $32.2 million and $35.3 million as of March 31, 2018 and December 31, 2017 , respectively. |
Summary of credit risk rating for non-PCI and PCI loans by portfolio segment | The following tables present the credit risk ratings for non-PCI loans by portfolio segment as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Pass/Watch Special Mention Substandard Doubtful Total Non-PCI Loans Commercial lending: C&I $ 10,464,618 $ 164,161 $ 150,565 $ 27,918 $ 10,807,262 CRE 8,614,575 41,942 106,393 — 8,762,910 Multifamily residential 1,884,434 — 14,083 — 1,898,517 Construction and land 614,481 684 54,131 — 669,296 Total commercial lending 21,578,108 206,787 325,172 27,918 22,137,985 Consumer lending: Single-family residential 4,803,472 7,563 7,059 — 4,818,094 HELOCs 1,753,398 2,451 6,937 — 1,762,786 Other consumer 381,487 2 2,491 — 383,980 Total consumer lending 6,938,357 10,016 16,487 — 6,964,860 Total $ 28,516,465 $ 216,803 $ 341,659 $ 27,918 $ 29,102,845 ($ in thousands) December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Total Non-PCI Loans Commercial lending: C&I $ 10,369,516 $ 114,769 $ 180,269 $ 20,882 $ 10,685,436 CRE 8,484,635 65,616 108,958 — 8,659,209 Multifamily residential 1,839,958 — 15,170 — 1,855,128 Construction and land 614,441 4,590 40,295 — 659,326 Total commercial lending 21,308,550 184,975 344,692 20,882 21,859,099 Consumer lending: Single-family residential 4,490,672 16,504 21,735 — 4,528,911 HELOCs 1,744,903 11,900 12,114 — 1,768,917 Other consumer 333,895 111 2,498 — 336,504 Total consumer lending 6,569,470 28,515 36,347 — 6,634,332 Total $ 27,878,020 $ 213,490 $ 381,039 $ 20,882 $ 28,493,431 The following tables present the credit risk ratings for PCI loans by portfolio segment as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Pass/Watch Special Mention Substandard Doubtful Total PCI Loans Commercial lending: C&I $ 10,071 $ 23 $ 948 $ — $ 11,042 CRE 219,255 2,525 38,056 — 259,836 Multifamily residential 52,426 — 3,912 — 56,338 Construction and land 44 — — — 44 Total commercial lending 281,796 2,548 42,916 — 327,260 Consumer lending: Single-family residential 111,567 748 171 — 112,486 HELOCs 12,435 212 10 — 12,657 Total consumer lending 124,002 960 181 — 125,143 Total (1) $ 405,798 $ 3,508 $ 43,097 $ — $ 452,403 ($ in thousands) December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Total PCI Loans Commercial lending: C&I $ 10,712 $ 57 $ 1,026 $ — $ 11,795 CRE 238,605 531 38,552 — 277,688 Multifamily residential 56,720 — 4,328 — 61,048 Construction and land 44 — 327 — 371 Total commercial lending 306,081 588 44,233 — 350,902 Consumer lending: Single-family residential 113,905 1,543 1,930 — 117,378 HELOCs 12,642 — 1,365 — 14,007 Total consumer lending 126,547 1,543 3,295 — 131,385 Total (1) $ 432,628 $ 2,131 $ 47,528 $ — $ 482,287 (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, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Accruing 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 Commercial lending: C&I $ 16,767 $ 1,649 $ 2,381 $ 20,797 $ 38,609 $ 42,198 $ 80,807 $ 10,705,658 $ 10,807,262 CRE 6,872 2,095 — 8,967 5,321 21,175 26,496 8,727,447 8,762,910 Multifamily residential 2,958 14 — 2,972 1,000 1,050 2,050 1,893,495 1,898,517 Construction and land 1,804 — — 1,804 — 3,973 3,973 663,519 669,296 Total commercial lending 28,401 3,758 2,381 34,540 44,930 68,396 113,326 21,990,119 22,137,985 Consumer lending: Single-family residential 8,230 7,733 — 15,963 6 7,459 7,465 4,794,666 4,818,094 HELOCs 4,421 2,369 — 6,790 26 6,909 6,935 1,749,061 1,762,786 Other consumer 24 2 — 26 — 2,491 2,491 381,463 383,980 Total consumer lending 12,675 10,104 — 22,779 32 16,859 16,891 6,925,190 6,964,860 Total $ 41,076 $ 13,862 $ 2,381 $ 57,319 $ 44,962 $ 85,255 $ 130,217 $ 28,915,309 $ 29,102,845 ($ in thousands) December 31, 2017 Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Accruing 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 Commercial lending: C&I $ 30,964 $ 82 $ — $ 31,046 $ 27,408 $ 41,805 $ 69,213 $ 10,585,177 $ 10,685,436 CRE 3,414 466 — 3,880 5,430 21,556 26,986 8,628,343 8,659,209 Multifamily residential 4,846 14 — 4,860 1,418 299 1,717 1,848,551 1,855,128 Construction and land 758 — — 758 — 3,973 3,973 654,595 659,326 Total commercial lending 39,982 562 — 40,544 34,256 67,633 101,889 21,716,666 21,859,099 Consumer lending: Single-family residential 13,269 5,355 — 18,624 6 5,917 5,923 4,504,364 4,528,911 HELOCs 4,286 4,186 — 8,472 89 3,917 4,006 1,756,439 1,768,917 Other consumer 14 23 — 37 — 2,491 2,491 333,976 336,504 Total consumer lending 17,569 9,564 — 27,133 95 12,325 12,420 6,594,779 6,634,332 Total $ 57,551 $ 10,126 $ — $ 67,677 $ 34,351 $ 79,958 $ 114,309 $ 28,311,445 $ 28,493,431 |
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: ($ in thousands) Number Pre- Modification Post- Modification (1) Financial (2) Commercial lending: C&I 2 $ 6,448 $ 4,914 $ 1,273 CRE 1 1,526 1,505 — Construction and land 2 86 — — Total 5 $ 8,060 $ 6,419 $ 1,273 (1) Includes subsequent payments after modification and reflects the balance as of March 31, 2017. (2) The financial impact includes charge-offs and specific reserves recorded at the modification date. There were no non-PCI TDR modifications during the three months ended March 31, 2018 . The following table presents the non-PCI TDR modifications for the three months ended March 31, 2017 by modification type: ($ in thousands) Principal (1) Principal (2) Total Commercial lending: C&I $ — $ 4,914 $ 4,914 CRE 1,505 — 1,505 Total $ 1,505 $ 4,914 $ 6,419 (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 on loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three months ended March 31, 2018 and 2017 , and were still in default at the respective period end: ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31, 2018 2017 Number of Recorded Number of Recorded Commercial lending: C&I — $ — 1 $ 2,718 Consumer lending: HELOCs 1 $ 155 — $ — |
Summary of non-PCI impaired loans | The following tables present information on non-PCI impaired loans as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial lending: C&I $ 123,336 $ 43,192 $ 55,789 $ 98,981 $ 28,564 CRE 40,935 27,210 7,706 34,916 615 Multifamily residential 9,819 6,483 2,934 9,417 103 Construction and land 4,691 3,973 — 3,973 — Total commercial lending 178,781 80,858 66,429 147,287 29,282 Consumer lending: Single-family residential 16,983 2,600 13,219 15,819 541 HELOCs 8,277 4,774 3,360 8,134 5 Other consumer 2,491 — 2,491 2,491 2,491 Total consumer lending 27,751 7,374 19,070 26,444 3,037 Total non-PCI impaired loans $ 206,532 $ 88,232 $ 85,499 $ 173,731 $ 32,319 ($ in thousands) December 31, 2017 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial lending: C&I $ 130,773 $ 36,086 $ 62,599 $ 98,685 $ 16,094 CRE 41,248 28,699 6,857 35,556 684 Multifamily residential 11,164 8,019 2,617 10,636 88 Construction and land 4,781 3,973 — 3,973 — Total commercial lending 187,966 76,777 72,073 148,850 16,866 Consumer lending: Single-family residential 15,501 — 14,338 14,338 534 HELOCs 5,484 2,287 2,921 5,208 4 Other consumer 2,491 — 2,491 2,491 2,491 Total consumer lending 23,476 2,287 19,750 22,037 3,029 Total non-PCI impaired loans $ 211,442 $ 79,064 $ 91,823 $ 170,887 $ 19,895 |
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 for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Average Recognized Interest Income (1) Average Recognized Interest Income (1) Commercial lending: C&I $ 99,457 $ 1,900 $ 143,214 $ 221 CRE 35,166 868 44,772 35 Multifamily residential 9,458 116 9,269 38 Construction and land 3,973 69 4,717 — Total commercial lending 148,054 2,953 201,972 294 Consumer lending: Single-family residential 15,628 206 15,096 22 HELOCs 8,141 111 4,532 12 Other consumer 2,491 45 1 — Total consumer lending 26,260 362 19,629 34 Total non-PCI impaired loans $ 174,314 $ 3,315 $ 221,601 $ 328 (1) Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal, not as interest income. |
Summary of activities in the allowance for credit losses | The following table presents a summary of activities in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Non-PCI Loans Allowance for non-PCI loans, beginning of period $ 287,070 $ 260,402 Provision for loan losses on non-PCI loans 19,933 8,046 Gross charge-offs: Commercial lending: C&I (18,445 ) (7,057 ) Construction and land — (148 ) Consumer lending: Single-family residential (1 ) — Other consumer (17 ) (4 ) Total gross charge-offs (18,463 ) (7,209 ) Gross recoveries: Commercial lending: C&I 7,687 455 CRE 427 569 Multifamily residential 333 567 Construction and land 435 24 Consumer lending: Single-family residential 184 11 HELOCs — 24 Other consumer 1 118 Total gross recoveries 9,067 1,768 Net charge-offs (9,396 ) (5,441 ) Allowance for non-PCI loans, end of period 297,607 263,007 PCI Loans Allowance for PCI loans, beginning of period 58 118 Reversal of loan losses on PCI loans (11 ) (31 ) Allowance for PCI loans, end of period 47 87 Allowance for loan losses $ 297,654 $ 263,094 The following table presents a summary of activities in the allowance for unfunded credit reserves for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Allowance for unfunded credit reserves, beginning of period $ 13,318 $ 16,121 Provision for (reversal of) unfunded credit reserves 296 (947 ) Allowance for unfunded credit reserves, end of period $ 13,614 $ 15,174 |
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, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 Commercial Lending Consumer Lending C&I CRE Multifamily Residential Construction and Land Single- Family Residential HELOCs Other Consumer Total Allowance for loan losses Individually evaluated for impairment $ 28,564 $ 615 $ 103 $ — $ 541 $ 5 $ 2,491 $ 32,319 Collectively evaluated for impairment 141,131 39,056 18,396 32,220 25,416 7,036 2,033 265,288 Acquired with deteriorated credit quality — 47 — — — — — 47 Total $ 169,695 $ 39,718 $ 18,499 $ 32,220 $ 25,957 $ 7,041 $ 4,524 $ 297,654 Recorded investment in loans Individually evaluated for impairment $ 98,981 $ 34,916 $ 9,417 $ 3,973 $ 15,819 $ 8,134 $ 2,491 $ 173,731 Collectively evaluated for impairment 10,708,281 8,727,994 1,889,100 665,323 4,802,275 1,754,652 381,489 28,929,114 Acquired with deteriorated credit quality (1) 11,042 259,836 56,338 44 112,486 12,657 — 452,403 Total (1) $ 10,818,304 $ 9,022,746 $ 1,954,855 $ 669,340 $ 4,930,580 $ 1,775,443 $ 383,980 $ 29,555,248 ($ in thousands) December 31, 2017 Commercial Lending Consumer Lending C&I CRE Multifamily Residential Construction and Land Single- Family Residential HELOCs Other Consumer Total Allowance for loan losses Individually evaluated for impairment $ 16,094 $ 684 $ 88 $ — $ 534 $ 4 $ 2,491 $ 19,895 Collectively evaluated for impairment 146,964 40,495 19,021 26,881 25,828 7,350 636 267,175 Acquired with deteriorated credit quality — 58 — — — — — 58 Total $ 163,058 $ 41,237 $ 19,109 $ 26,881 $ 26,362 $ 7,354 $ 3,127 $ 287,128 Recorded investment in loans Individually evaluated for impairment $ 98,685 $ 35,556 $ 10,636 $ 3,973 $ 14,338 $ 5,208 $ 2,491 $ 170,887 Collectively evaluated for impairment 10,586,751 8,623,653 1,844,492 655,353 4,514,573 1,763,709 334,013 28,322,544 Acquired with deteriorated credit quality (1) 11,795 277,688 61,048 371 117,378 14,007 — 482,287 Total (1) $ 10,697,231 $ 8,936,897 $ 1,916,176 $ 659,697 $ 4,646,289 $ 1,782,924 $ 336,504 $ 28,975,718 (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, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Accretable yield for PCI loans, beginning of period $ 101,977 $ 136,247 Accretion (9,134 ) (10,279 ) Changes in expected cash flows 3,021 2,022 Accretable yield for PCI loans, end of period $ 95,864 $ 127,990 |
Schedule of sales, purchases and securitization of loans, and reclassification of loans held-for-investment to(from) loans held-for-sale | The following tables present information on the loans transferred from held-for-investment to held-for-sale, and sales and purchases of loans, during the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 Commercial Lending Consumer Lending C&I CRE Multifamily Residential Single-Family Other Consumer Total Loans transferred from held-for-investment to held-for-sale $ 146,391 $ 9,376 $ — $ — $ — $ 155,767 (1) Sales $ 102,365 $ 9,376 $ — $ 2,546 $ — $ 114,287 (2)(3)(4) Purchases $ 64,747 $ — $ 186 $ 15,113 $ — $ 80,046 (5) ($ in thousands) Three Months Ended March 31, 2017 Commercial Lending Consumer Lending C&I CRE Multifamily Single-Family Other Total Loans transferred from held-for-investment to held-for-sale $ 265,259 $ 12,765 $ — $ — $ — $ 278,024 (1) Sales $ 236,679 $ 12,765 $ — $ 4,310 $ 22,191 $ 275,945 (2)(3)(4) Purchases $ 147,116 $ — $ 126 $ — $ — $ 147,242 (5) (1) The Company recorded $85 thousand and $92 thousand in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three months ended March 31, 2018 and 2017 , respectively. (2) Includes originated loans sold of $89.7 million and $ 29.3 million for the three months ended March 31, 2018 and 2017 , respectively. Originated loans sold were primarily comprised of C&I and CRE loans for each of the three months ended March 31, 2018 , and 2017 . (3) Includes purchased loans sold in the secondary market of $24.6 million and $246.6 million for the three months ended March 31, 2018 and 2017 , respectively. (4) Net gains on sales of loans, excluding the lower of cost or fair value adjustments, were $1.6 million and $2.8 million for the three months ended March 31, 2018 and 2017 , respectively. No lower of cost or fair value adjustments were recorded for the three months ended March 31, 2018 . In comparison, the lower of cost or fair value adjustment of $69 thousand was recorded in Net gains on sales of loans on the Consolidated Statement of Income for the three months ended March 31, 2017 . (5) C&I loan purchases for each of the three months ended March 31, 2018 and 2017 mainly represent C&I syndicated loans. |
Investments in Qualified Affo31
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net [Abstract] | |
Schedule of investments in qualified affordable housing partnerships, net and related unfunded commitments | The following table presents the balances of the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 Investments in qualified affordable housing partnerships, net $ 160,574 $ 162,824 Accrued expenses and other liabilities — Unfunded commitments $ 54,801 $ 55,815 |
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 three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Tax credits and other tax benefits recognized $ 9,155 $ 9,621 Amortization expense included in income tax expense $ 7,073 $ 6,950 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The following table presents the gross carrying value of core deposit intangible assets and accumulated amortization as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 Gross balance (1) $ 86,099 $ 100,166 Accumulated amortization (1) (67,562 ) (79,112 ) Net carrying balance $ 18,537 $ 21,054 (1) Excludes fully amortized core deposit intangible assets. |
Schedule of estimated future amortization expense of core deposit intangibles | The following table presents the estimated future amortization expense of core deposit intangibles as of March 31, 2018 : Year Ended December 31, Amount ($ in thousands) Remainder of 2018 $ 4,008 2019 4,518 2020 3,634 2021 2,749 2022 1,865 Thereafter 1,763 Total $ 18,537 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of credit-related commitments | The following table presents the Company’s credit-related commitments as of March 31, 2018 and December 31, 2017 : ($ in thousands) March 31, 2018 December 31, 2017 Loan commitments $ 4,818,815 $ 5,075,480 Commercial letters of credit and SBLCs $ 1,632,585 $ 1,655,897 |
Revenue from Contracts with C34
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenue from contracts with customers within the scope of ASC 606 and other noninterest income, segregated by operating segments for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 Retail Banking Commercial Banking Other Total Noninterest income: Revenue from contracts with customers (1) : Branch fees: Deposit service charges and related fee income $ 6,014 $ 3,014 $ 158 $ 9,186 Card income 1,070 174 — 1,244 Wealth management fees 2,796 157 — 2,953 Total revenue from contracts with customers $ 9,880 $ 3,345 $ 158 $ 13,383 Other sources of noninterest income (2) 34,568 24,093 2,400 61,061 Total noninterest income $ 44,448 $ 27,438 $ 2,558 $ 74,444 ($ in thousands) Three Months Ended March 31, 2017 Retail Banking Commercial Banking Other Total Noninterest income: Revenue from contracts with customers (1) : Branch fees: Deposit service charges and related fee income $ 5,837 $ 2,742 $ 105 $ 8,684 Card income 1,027 213 — 1,240 Wealth management fees 3,246 1,089 — 4,335 Total revenue from contracts with customers $ 10,110 $ 4,044 $ 105 $ 14,259 Other sources of noninterest income (2) 3,454 21,690 76,425 101,569 Total noninterest income $ 13,564 $ 25,734 $ 76,530 $ 115,828 (1) There were no adjustments to the Company’s financial statements recorded as a result of the adoption of ASC 606. For comparability, the Company has adjusted prior period amounts to conform to the current period’s presentation. (2) Primarily represents revenue from contracts with customers that are out of the scope of ASC 606. |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Stock compensation costs $ 6,158 $ 5,151 Related net tax benefits for stock compensation plans $ 4,778 $ 4,414 |
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, 2018 based on the target amount of awards: Three Months Ended March 31, 2018 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 1,166,580 $ 42.00 424,299 $ 41.44 Granted 389,667 67.32 120,286 70.13 Vested (312,413 ) 39.97 (133,295 ) 41.15 Forfeited (29,223 ) 44.62 — — Outstanding, at end of period 1,214,611 $ 50.58 411,290 $ 49.93 |
Stockholders' Equity and Earn36
Stockholders' Equity and Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 : ($ and shares in thousands, except per share data) Three Months Ended March 31, 2018 2017 Basic Net income $ 187,032 $ 169,736 Basic weighted-average number of shares outstanding 144,664 144,249 Basic EPS $ 1.29 $ 1.18 Diluted Net income $ 187,032 $ 169,736 Basic weighted-average number of shares outstanding 144,664 144,249 Diluted potential common shares (1) 1,275 1,483 Diluted weighted-average number of shares outstanding 145,939 145,732 Diluted EPS $ 1.28 $ 1.16 (1) Includes dilutive shares from RSUs and warrants for the three months ended March 31, 2018 and 2017 . |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Available- Foreign (1) Total Available- Foreign (1) Total Beginning balance $ (30,898 ) $ (6,621 ) $ (37,519 ) $ (28,772 ) $ (19,374 ) $ (48,146 ) Cumulative effect of change in accounting principle related to marketable equity securities (2) 385 — 385 — — — Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate (3) (6,656 ) — (6,656 ) — — — Net unrealized (losses) gains arising during the period (17,311 ) 6,798 (10,513 ) 5,055 1,007 6,062 Amounts reclassified from AOCI (1,501 ) — (1,501 ) (1,434 ) — (1,434 ) Changes, net of taxes (18,812 ) 6,798 (12,014 ) 3,621 1,007 4,628 Ending balance $ (55,981 ) $ 177 $ (55,804 ) $ (25,151 ) $ (18,367 ) $ (43,518 ) (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. (2) Represents the impact of the adoption in the first quarter of 2018 of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. (3) Represents amounts reclassified from AOCI to retained earnings due to early adoption of ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. |
Schedule of components of other comprehensive income (loss), reclassifications to net income and the related tax effects | The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three months ended March 31, 2018 and 2017 : ($ in thousands) Three Months Ended March 31, 2018 2017 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Available-for-sale investment securities: Net unrealized (losses) gains arising during the period $ (24,577 ) $ 7,266 $ (17,311 ) $ 8,721 $ (3,666 ) $ 5,055 Net realized gains reclassified into net income (1) (2,129 ) 628 (1,501 ) (2,474 ) 1,040 (1,434 ) Net change (26,706 ) 7,894 (18,812 ) 6,247 (2,626 ) 3,621 Foreign currency translation adjustments: Net unrealized gains arising during period 6,798 — 6,798 1,007 — 1,007 Net change 6,798 — 6,798 1,007 — 1,007 Other comprehensive (loss) income $ (19,908 ) $ 7,894 $ (12,014 ) $ 7,254 $ (2,626 ) $ 4,628 (1) For the three months ended March 31, 2018 and 2017 , pre-tax amounts were reported in Net gains on sales of available-for-sale investment securities on the Consolidated Statement of Income. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 : ($ in thousands) Retail Banking Commercial Banking Other Total Three Months Ended March 31, 2018 Interest income $ 104,710 $ 239,577 $ 27,586 $ 371,873 Charge for funds used (49,273 ) (111,366 ) (18,327 ) (178,966 ) Interest spread on funds used 55,437 128,211 9,259 192,907 Interest expense (24,940 ) (9,179 ) (11,061 ) (45,180 ) Credit on funds provided 145,451 25,448 8,067 178,966 Interest spread on funds provided (used) 120,511 16,269 (2,994 ) 133,786 Net interest income before provision for credit losses $ 175,948 $ 144,480 $ 6,265 $ 326,693 Provision for credit losses $ 3,093 $ 17,125 $ — $ 20,218 Noninterest income $ 44,448 $ 27,438 $ 2,558 $ 74,444 Noninterest expense $ 81,968 $ 65,020 $ 22,147 $ 169,135 Segment income (loss) before income taxes $ 135,335 $ 89,773 $ (13,324 ) $ 211,784 Segment income after income taxes $ 96,968 $ 64,362 $ 25,702 $ 187,032 As of March 31, 2018: Segment assets $ 9,345,892 $ 21,992,393 $ 6,354,873 $ 37,693,158 ($ in thousands) Retail Commercial Other Total Three Months Ended March 31, 2017 Interest income $ 81,025 $ 192,419 $ 29,225 $ 302,669 Charge for funds used (27,738 ) (64,509 ) (28,167 ) (120,414 ) Interest spread on funds used 53,287 127,910 1,058 182,255 Interest expense (16,183 ) (5,098 ) (9,266 ) (30,547 ) Credit on funds provided 102,546 12,043 5,825 120,414 Interest spread on funds provided (used) 86,363 6,945 (3,441 ) 89,867 Net interest income (loss) before provision for credit losses $ 139,650 $ 134,855 $ (2,383 ) $ 272,122 Provision for credit losses $ 378 $ 6,690 $ — $ 7,068 Noninterest income $ 13,564 $ 25,734 $ 76,530 $ 115,828 Noninterest expense $ 72,844 $ 54,373 $ 25,661 $ 152,878 Segment income before income taxes $ 79,992 $ 99,526 $ 48,486 $ 228,004 Segment income after income taxes $ 47,035 $ 58,796 $ 63,905 $ 169,736 As of March 31, 2017: Segment assets $ 8,213,268 $ 19,624,237 $ 7,504,621 $ 35,342,126 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Mar. 31, 2018trust |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly-owned subsidiaries that are statutory business trusts (the Trusts) | 6 |
Current Accounting Developmen40
Current Accounting Developments Current Accounting Developments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Marketable equity securities | $ 31,900 | ||
Cumulative effect of a change in accounting principle | [1] | (160) | |
Private Equity Funds | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost method investments | $ 11,400 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of a change in accounting principle | [1] | (545) | |
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate | [2] | 6,656 | |
AOCI, Net of Tax | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of a change in accounting principle | [1] | 385 | |
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate | [2] | $ (6,656) | |
ASU 2016-01 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of a change in accounting principle | (545) | ||
ASU 2016-01 | AOCI, Net of Tax | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of a change in accounting principle | $ 385 | ||
[1] | Represents the impact of the adoption in the first quarter of 2018 of Accounting Standards Update (“ASU”) 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. | ||
[2] | Represents amounts reclassified from AOCI to retained earnings due to the early adoption of ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income during the first quarter of 2018. Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. |
Dispositions and Held-for-Sale
Dispositions and Held-for-Sale (Sales Leaseback) (Details) - Commercial Property In San Francisco $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Sale Leaseback Transaction [Line Items] | |
Sales price | $ 120.6 |
Net book value | 31.6 |
Pre-tax profit from sale | 85.4 |
Selling costs | 3.6 |
Current period gain recognized | 71.7 |
Deferred gain | $ 13.7 |
Dispositions and Held-for-Sal42
Dispositions and Held-for-Sale (Held-for-Sale) (Details) $ in Thousands | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 11, 2017banking_branch |
Long Lived Assets Held-for-sale [Line Items] | |||
Branch assets held-for-sale | $ 0 | $ 91,318 | |
Branch liability held-for-sale | $ 0 | 605,111 | |
Desert Community Bank | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Branch liability held-for-sale | 605,100 | ||
Desert Community Bank | California | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Number of branches to be sold | banking_branch | 8 | ||
Loans held-for-sale | Desert Community Bank | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Branch assets held-for-sale | 78,100 | ||
Premises and equipment held-for-sale | Desert Community Bank | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Branch assets held-for-sale | $ 8,000 |
Dispositions and Held-for-Sal43
Dispositions and Held-for-Sale (Dispositions) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 17, 2018banking_branch | Mar. 16, 2018USD ($) | |
Disposition [Line Items] | ||||
Net gain on sale of business | $ 31,470 | $ 0 | ||
Desert Community Bank | ||||
Disposition [Line Items] | ||||
Net cash payment in sale of branches | 499,900 | |||
Net gain on sale of business | $ 31,500 | |||
Desert Community Bank | California | ||||
Disposition [Line Items] | ||||
Number of branches sold | banking_branch | 8 | |||
Loans | Desert Community Bank | ||||
Disposition [Line Items] | ||||
Branch assets sold | $ 59,100 | |||
Cash and cash equivalents | Desert Community Bank | ||||
Disposition [Line Items] | ||||
Branch assets sold | 9,000 | |||
Premises and equipment | Desert Community Bank | ||||
Disposition [Line Items] | ||||
Branch assets sold | 7,900 | |||
Deposits | Desert Community Bank | ||||
Disposition [Line Items] | ||||
Branch liabilities sold | $ 613,700 |
Fair Value Measurement and Fa44
Fair Value Measurement and Fair Value of Financial Instruments (Financial Assets and Liabilities Measurement on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment securities available-for-sale | ||
Equity securities | $ 31,900 | |
Derivative | ||
Derivative assets | $ 59,831 | 66,146 |
Derivative liabilities | 86,673 | 74,935 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 651,830 | 661,015 |
Equity securities | 20,489 | |
Total investments in tax credit and other investments | 20,489 | |
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange spot and forwards | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | RPAs | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity warrants | ||
Derivative | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity options | ||
Derivative | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps | ||
Derivative | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange forwards | ||
Derivative | ||
Derivative liabilities | 0 | |
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 | 651,830 | 640,280 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
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 | 20,735 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 2,159,586 | 2,355,737 |
Equity securities | 10,498 | |
Total investments in tax credit and other investments | 10,498 | |
Derivative | ||
Derivative assets | 58,900 | 65,467 |
Derivative liabilities | 86,673 | 74,935 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 51,933 | 58,633 |
Derivative liabilities | 72,893 | 57,958 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange spot and forwards | ||
Derivative | ||
Derivative assets | 6,087 | 5,840 |
Derivative liabilities | 4,066 | 10,170 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | RPAs | ||
Derivative | ||
Derivative assets | 1 | 1 |
Derivative liabilities | 21 | 8 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity warrants | ||
Derivative | ||
Derivative assets | 582 | 993 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commodity options | ||
Derivative | ||
Derivative assets | 297 | |
Derivative liabilities | 288 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Derivative | ||
Derivative liabilities | 8,251 | 6,799 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange forwards | ||
Derivative | ||
Derivative liabilities | 1,154 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
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 | 233,016 | 203,392 |
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 | 339,834 | 318,957 |
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 | 989,453 | 1,190,271 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 74,076 | 99,982 |
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 | 8,404 | 9,117 |
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 | 35,858 | 37,003 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 478,945 | 486,408 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 10,607 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Equity securities | 0 | |
Total investments in tax credit and other investments | 0 | |
Derivative | ||
Derivative assets | 931 | 679 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange spot and forwards | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | RPAs | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity warrants | ||
Derivative | ||
Derivative assets | 931 | 679 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commodity options | ||
Derivative | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swaps | ||
Derivative | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange forwards | ||
Derivative | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | |
Fair Value, Measurements, Recurring | Fair Value Measurements | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 2,811,416 | 3,016,752 |
Equity securities | 30,987 | |
Total investments in tax credit and other investments | 30,987 | |
Derivative | ||
Derivative assets | 59,831 | 66,146 |
Derivative liabilities | 86,673 | 74,935 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 51,933 | 58,633 |
Derivative liabilities | 72,893 | 57,958 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Foreign exchange spot and forwards | ||
Derivative | ||
Derivative assets | 6,087 | 5,840 |
Derivative liabilities | 4,066 | 10,170 |
Fair Value, Measurements, Recurring | Fair Value Measurements | RPAs | ||
Derivative | ||
Derivative assets | 1 | 1 |
Derivative liabilities | 21 | 8 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Equity warrants | ||
Derivative | ||
Derivative assets | 1,513 | 1,672 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Commodity options | ||
Derivative | ||
Derivative assets | 297 | |
Derivative liabilities | 288 | |
Fair Value, Measurements, Recurring | Fair Value Measurements | Interest rate swaps | ||
Derivative | ||
Derivative liabilities | 8,251 | 6,799 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Foreign exchange forwards | ||
Derivative | ||
Derivative liabilities | 1,154 | |
Fair Value, Measurements, Recurring | Fair Value Measurements | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 651,830 | 640,280 |
Fair Value, Measurements, Recurring | Fair Value Measurements | U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 233,016 | 203,392 |
Fair Value, Measurements, Recurring | Fair Value Measurements | 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 | 339,834 | 318,957 |
Fair Value, Measurements, Recurring | Fair Value Measurements | 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 | 989,453 | 1,190,271 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 74,076 | 99,982 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 8,404 | 9,117 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 35,858 | 37,003 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | $ 478,945 | 486,408 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | $ 31,342 |
Fair Value Measurement and Fa45
Fair Value Measurement and Fair Value of Financial Instruments (Reconciliation of Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring - Significant Unobservable Inputs (Level 3) - Equity warrants $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Beginning balance | $ 679 |
Included in earnings | 244 |
Issuances | 8 |
Ending balance | $ 931 |
Fair Value Measurement and Fa46
Fair Value Measurement and Fair Value of Financial Instruments (Quantitative Information for Significant Unobservable Inputs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Non-PCI Loans | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Non-PCI impaired loans | $ 37,174 | $ 38,188 |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Non-PCI impaired loans | 37,174 | 38,188 |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Discounted cash flows | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Non-PCI impaired loans | $ 28,596 | $ 22,802 |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Discount | 5.00% | 6.00% |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Minimum | ||
Quantitative information | ||
Discount | 4.00% | 4.00% |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Maximum | ||
Quantitative information | ||
Discount | 7.00% | 10.00% |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Fair value of property | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Non-PCI impaired loans | $ 3,114 | $ 9,773 |
Selling cost | 8.00% | 8.00% |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Fair value of property | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Selling cost | 8.00% | 8.00% |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Fair value of collateral, discount | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Non-PCI impaired loans | $ 4,849 | $ 3,207 |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Fair value of collateral, discount | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Discount | 39.00% | 29.00% |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Fair value of collateral, discount | Fair Value, Measurements, Nonrecurring | Minimum | ||
Quantitative information | ||
Discount | 15.00% | 20.00% |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Fair value of collateral, discount | Fair Value, Measurements, Nonrecurring | Maximum | ||
Quantitative information | ||
Discount | 50.00% | 32.00% |
Non-PCI Loans | Significant Unobservable Inputs (Level 3) | Fair value of collateral, contract value | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Non-PCI impaired loans | $ 615 | $ 2,406 |
OREO | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
OREO | 9 | |
OREO | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
OREO | 9 | |
OREO | Significant Unobservable Inputs (Level 3) | Fair value of property | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
OREO | $ 9 | |
Selling cost | 8.00% | |
OREO | Significant Unobservable Inputs (Level 3) | Fair value of property | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Selling cost | 8.00% | |
Equity warrants | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Equity warrants | $ 931 | $ 679 |
Equity warrants | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | Fair Value, Measurements, Recurring | Weighted Average | ||
Quantitative information | ||
Volatility | 48.00% | |
Liquidity discount | 47.00% |
Fair Value Measurement and Fa47
Fair Value Measurement and Fair Value of Financial Instruments (Carrying Amounts of Assets Included on the Consolidated Balance Sheets Measured on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | $ 37,174 | $ 38,188 |
OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 9 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 0 | |
Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 0 | |
Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 37,174 | 38,188 |
Significant Unobservable Inputs (Level 3) | OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 9 | |
Commercial lending | Commercial and industrial (“C&I”) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 29,403 | 31,404 |
Commercial lending | Commercial and industrial (“C&I”) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | 0 |
Commercial lending | Commercial and industrial (“C&I”) | Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | 0 |
Commercial lending | Commercial and industrial (“C&I”) | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 29,403 | 31,404 |
Commercial lending | Commercial real estate (“CRE”) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 5,171 | 2,667 |
Commercial lending | Commercial real estate (“CRE”) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | 0 |
Commercial lending | Commercial real estate (“CRE”) | Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | 0 |
Commercial lending | Commercial real estate (“CRE”) | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 5,171 | 2,667 |
Commercial lending | Construction and land | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 3,973 | |
Commercial lending | Construction and land | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | |
Commercial lending | Construction and land | Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | |
Commercial lending | Construction and land | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 3,973 | |
Consumer lending | Real estate loan | Single-family | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 2,600 | 144 |
Consumer lending | Real estate loan | Single-family | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | 0 |
Consumer lending | Real estate loan | Single-family | Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | 0 | 0 |
Consumer lending | Real estate loan | Single-family | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Non-PCI impaired loans | $ 2,600 | $ 144 |
Fair Value Measurement and Fa48
Fair Value Measurement and Fair Value of Financial Instruments (Fair Value Adjustments of Assets Measured on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | $ 13,979 | $ 49 |
OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | 0 | (285) |
Commercial lending | Commercial and industrial (“C&I”) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | 13,899 | 32 |
Commercial lending | Commercial real estate (“CRE”) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | 95 | (64) |
Consumer lending | Real estate loan | Single-family | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | (15) | 82 |
Consumer lending | Other consumer | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Fair value adjustments of assets | $ 0 | $ (1) |
Fair Value Measurement and Fa49
Fair Value Measurement and Fair Value of Financial Instruments (Carrying and Fair Values per the Fair Value Hierarchy of Certain Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||||
Cash and cash equivalents | $ 2,314,938 | $ 2,174,592 | $ 2,434,643 | $ 1,878,503 |
Interest-bearing deposits with banks | 478,871 | 398,422 | ||
Resale agreements | 1,050,000 | 1,050,000 | ||
Restricted equity securities | 73,787 | 73,521 | ||
Loans held-for-sale | 46,181 | 85 | ||
Loans held-for-investment, net | 29,257,594 | 28,688,590 | ||
Branch assets held-for-sale | 0 | 91,318 | ||
Financial liabilities: | ||||
Short-term borrowings | 30,277 | 0 | ||
FHLB advances | 324,451 | 323,891 | ||
Repurchase agreements | 50,000 | 50,000 | ||
Long-term debt | 166,640 | 171,577 | ||
Carrying amount of repurchase agreements eligible for netting against resale agreements | 400,000 | 400,000 | ||
Gross repurchase agreements | 450,000 | 450,000 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,314,938 | 2,174,592 | ||
Interest-bearing deposits with banks | 478,871 | 398,422 | ||
Resale agreements | 1,050,000 | 1,050,000 | ||
Restricted equity securities | 73,787 | 73,521 | ||
Loans held-for-sale | 46,181 | 85 | ||
Loans held-for-investment, net | 29,257,594 | 28,688,590 | ||
Branch assets held-for-sale | 91,318 | |||
Mortgage servicing rights | 7,659 | 7,771 | ||
Accrued interest receivable | 127,905 | 121,719 | ||
Financial liabilities: | ||||
Demand, checking, savings and money market deposits | 26,407,708 | 25,974,314 | ||
Time deposits | 6,201,069 | 5,640,749 | ||
Branch liability held-for-sale | 605,111 | |||
Short-term borrowings | 30,277 | |||
FHLB advances | 324,451 | 323,891 | ||
Repurchase agreements | 50,000 | 50,000 | ||
Long-term debt | 166,640 | 171,577 | ||
Accrued interest payable | 12,686 | 10,724 | ||
Estimated Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,314,938 | 2,174,592 | ||
Interest-bearing deposits with banks | 478,871 | 398,422 | ||
Resale agreements | 1,026,415 | 1,035,158 | ||
Restricted equity securities | 73,787 | 73,521 | ||
Loans held-for-sale | 46,181 | 85 | ||
Loans held-for-investment, net | 29,503,038 | 28,956,349 | ||
Branch assets held-for-sale | 94,245 | |||
Mortgage servicing rights | 12,626 | 11,324 | ||
Accrued interest receivable | 127,905 | 121,719 | ||
Financial liabilities: | ||||
Demand, checking, savings and money market deposits | 26,407,708 | 25,974,314 | ||
Time deposits | 6,177,010 | 5,626,855 | ||
Branch liability held-for-sale | 643,937 | |||
Short-term borrowings | 30,277 | |||
FHLB advances | 335,788 | 335,901 | ||
Repurchase agreements | 114,260 | 104,830 | ||
Long-term debt | 172,521 | 171,673 | ||
Accrued interest payable | 12,686 | 10,724 | ||
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,314,938 | 2,174,592 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Resale agreements | 0 | 0 | ||
Restricted equity securities | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 0 | 0 | ||
Branch assets held-for-sale | 5,143 | |||
Mortgage servicing rights | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Financial liabilities: | ||||
Demand, checking, savings and money market deposits | 0 | 0 | ||
Time deposits | 0 | 0 | ||
Branch liability held-for-sale | 0 | |||
Short-term borrowings | 0 | |||
FHLB advances | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||||
Financial assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Interest-bearing deposits with banks | 478,871 | 398,422 | ||
Resale agreements | 1,026,415 | 1,035,158 | ||
Restricted equity securities | 73,787 | 73,521 | ||
Loans held-for-sale | 46,181 | 85 | ||
Loans held-for-investment, net | 0 | 0 | ||
Branch assets held-for-sale | 10,970 | |||
Mortgage servicing rights | 0 | 0 | ||
Accrued interest receivable | 127,905 | 121,719 | ||
Financial liabilities: | ||||
Demand, checking, savings and money market deposits | 26,407,708 | 25,974,314 | ||
Time deposits | 6,177,010 | 5,626,855 | ||
Branch liability held-for-sale | 0 | |||
Short-term borrowings | 30,277 | |||
FHLB advances | 335,788 | 335,901 | ||
Repurchase agreements | 114,260 | 104,830 | ||
Long-term debt | 172,521 | 171,673 | ||
Accrued interest payable | 12,686 | 10,724 | ||
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | ||||
Financial assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Resale agreements | 0 | 0 | ||
Restricted equity securities | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 29,503,038 | 28,956,349 | ||
Branch assets held-for-sale | 78,132 | |||
Mortgage servicing rights | 12,626 | 11,324 | ||
Accrued interest receivable | 0 | 0 | ||
Financial liabilities: | ||||
Demand, checking, savings and money market deposits | 0 | 0 | ||
Time deposits | 0 | 0 | ||
Branch liability held-for-sale | 643,937 | |||
Short-term borrowings | 0 | |||
FHLB advances | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Accrued interest payable | $ 0 | $ 0 |
Securities Purchased under Re50
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Resale Agreements and Repurchase Agreements) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Resale agreements | ||
Gross resale agreements | $ 1,450,000 | $ 1,450,000 |
Weighted average interest rates (as a percent) | 2.55% | 2.43% |
Repurchase agreements | ||
Gross repurchase agreements | $ 450,000 | $ 450,000 |
Weighted average interest rates (as a percent) | 4.07% | 3.65% |
Securities Purchased under Re51
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Balance Sheet Offsetting) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets, Resale Agreements | ||
Gross Amounts of Recognized Assets | $ 1,450,000 | $ 1,450,000 |
Gross Amounts Offset on the Consolidated Balance Sheet | (400,000) | (400,000) |
Net Amounts of Assets Presented on the Consolidated Balance Sheet | 1,050,000 | 1,050,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||
Financial Instruments | 0 | 0 |
Collateral Received | (1,037,413) | (1,045,696) |
Net Amount | 12,587 | 4,304 |
Liabilities, Repurchase Agreements | ||
Gross Amounts of Recognized Liabilities | 450,000 | 450,000 |
Gross Amounts Offset on the Consolidated Balance Sheet | (400,000) | (400,000) |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheet | 50,000 | 50,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||
Financial Instruments | 0 | 0 |
Collateral Pledged | (50,000) | (50,000) |
Net Amount | $ 0 | $ 0 |
Securities (Schedule of Availab
Securities (Schedule of Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale investment securities: | ||
Amortized Cost | $ 2,890,893 | $ 3,070,067 |
Gross Unrealized Gains | 2,711 | 5,013 |
Gross Unrealized Losses | (82,188) | (58,328) |
Fair Value | 2,811,416 | 3,016,752 |
U.S. Treasury securities | ||
Available-for-sale investment securities: | ||
Amortized Cost | 668,670 | 651,395 |
Gross Unrealized Gains | 93 | 0 |
Gross Unrealized Losses | (16,933) | (11,115) |
Fair Value | 651,830 | 640,280 |
U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Available-for-sale investment securities: | ||
Amortized Cost | 235,776 | 206,815 |
Gross Unrealized Gains | 175 | 62 |
Gross Unrealized Losses | (2,935) | (3,485) |
Fair Value | 233,016 | 203,392 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale investment securities: | ||
Amortized Cost | 352,980 | 328,348 |
Gross Unrealized Gains | 170 | 141 |
Gross Unrealized Losses | (13,316) | (9,532) |
Fair Value | 339,834 | 318,957 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale investment securities: | ||
Amortized Cost | 1,008,235 | 1,199,869 |
Gross Unrealized Gains | 1,844 | 3,964 |
Gross Unrealized Losses | (20,626) | (13,562) |
Fair Value | 989,453 | 1,190,271 |
Municipal securities | ||
Available-for-sale investment securities: | ||
Amortized Cost | 74,942 | 99,636 |
Gross Unrealized Gains | 251 | 655 |
Gross Unrealized Losses | (1,117) | (309) |
Fair Value | 74,076 | 99,982 |
Non-agency residential mortgage-backed securities | Investment grade | ||
Available-for-sale investment securities: | ||
Amortized Cost | 8,547 | 9,136 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (143) | (22) |
Fair Value | 8,404 | 9,117 |
Corporate debt securities | Investment grade | ||
Available-for-sale investment securities: | ||
Amortized Cost | 36,379 | 37,585 |
Gross Unrealized Gains | 178 | 164 |
Gross Unrealized Losses | (699) | (746) |
Fair Value | 35,858 | 37,003 |
Foreign bonds | Investment grade | ||
Available-for-sale investment securities: | ||
Amortized Cost | 505,364 | 505,396 |
Gross Unrealized Gains | 0 | 24 |
Gross Unrealized Losses | (26,419) | (19,012) |
Fair Value | 478,945 | 486,408 |
Foreign bonds | Investment grade | Multilateral development bank | ||
Available-for-sale investment securities: | ||
Fair Value | $ 448,500 | 456,100 |
Other securities | ||
Available-for-sale investment securities: | ||
Amortized Cost | 31,887 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (545) | |
Fair Value | $ 31,342 |
Securities (Continuous Unrealiz
Securities (Continuous Unrealized Losses) (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)security | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)security | |
Fair Value | |||
Less Than 12 Months | $ 1,045,676,000 | $ 942,845,000 | |
12 Months or More | 1,444,107,000 | 1,483,868,000 | |
Total | 2,489,783,000 | 2,426,713,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (22,728,000) | (9,919,000) | |
12 Months or More | (59,460,000) | (48,409,000) | |
Total | (82,188,000) | $ (58,328,000) | |
Impairment loss | $ 0 | $ 0 | |
Number of securities in an unrealized loss position | security | 192 | 165 | |
U.S. Treasury securities | |||
Fair Value | |||
Less Than 12 Months | $ 170,103,000 | $ 168,061,000 | |
12 Months or More | 457,952,000 | 472,219,000 | |
Total | 628,055,000 | 640,280,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (3,130,000) | (1,005,000) | |
12 Months or More | (13,803,000) | (10,110,000) | |
Total | $ (16,933,000) | $ (11,115,000) | |
Number of securities in an unrealized loss position | security | 23 | 25 | |
U.S. government agency and U.S. government sponsored enterprise debt securities | |||
Fair Value | |||
Less Than 12 Months | $ 133,861,000 | $ 99,935,000 | |
12 Months or More | 86,549,000 | 85,281,000 | |
Total | 220,410,000 | 185,216,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (2,157,000) | (623,000) | |
12 Months or More | (778,000) | (2,862,000) | |
Total | $ (2,935,000) | $ (3,485,000) | |
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 | 111 | 98 | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | |||
Fair Value | |||
Less Than 12 Months | $ 117,057,000 | $ 113,775,000 | |
12 Months or More | 192,874,000 | 191,827,000 | |
Total | 309,931,000 | 305,602,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (3,255,000) | (2,071,000) | |
12 Months or More | (10,061,000) | (7,461,000) | |
Total | (13,316,000) | (9,532,000) | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | |||
Fair Value | |||
Less Than 12 Months | 461,197,000 | 413,621,000 | |
12 Months or More | 339,157,000 | 361,809,000 | |
Total | 800,354,000 | 775,430,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (8,362,000) | (4,205,000) | |
12 Months or More | (12,264,000) | (9,357,000) | |
Total | (20,626,000) | (13,562,000) | |
Municipal securities | |||
Fair Value | |||
Less Than 12 Months | 24,618,000 | 8,490,000 | |
12 Months or More | 8,323,000 | 8,588,000 | |
Total | 32,941,000 | 17,078,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (671,000) | (123,000) | |
12 Months or More | (446,000) | (186,000) | |
Total | (1,117,000) | (309,000) | |
Non-agency residential mortgage-backed securities | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 8,404,000 | 4,599,000 | |
12 Months or More | 0 | 0 | |
Total | 8,404,000 | 4,599,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (143,000) | (22,000) | |
12 Months or More | 0 | 0 | |
Total | (143,000) | (22,000) | |
Corporate debt securities | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | 10,742,000 | 11,905,000 | |
Total | 10,742,000 | 11,905,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | (699,000) | (746,000) | |
Total | (699,000) | (746,000) | |
Foreign bonds | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 130,436,000 | 103,149,000 | |
12 Months or More | 348,510,000 | 352,239,000 | |
Total | 478,946,000 | 455,388,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (5,010,000) | (1,325,000) | |
12 Months or More | (21,409,000) | (17,687,000) | |
Total | $ (26,419,000) | $ (19,012,000) | |
Number of securities in an unrealized loss position | security | 17 | 16 | |
Other securities | |||
Fair Value | |||
Less Than 12 Months | $ 31,215,000 | ||
12 Months or More | 0 | ||
Total | 31,215,000 | ||
Gross Unrealized Losses | |||
Less Than 12 Months | (545,000) | ||
12 Months or More | 0 | ||
Total | $ (545,000) |
Securities (Other-Than-Temporar
Securities (Other-Than-Temporary Impairment) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investment securities available-for-sale | ||
Other Than Temporary Impairment Credit Losses Recognized in Earnings | ||
OTTI credit losses | $ 0 | $ 0 |
Securities (Realized Gains and
Securities (Realized Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 214,790 | $ 302,656 |
Gross realized gains | 2,129 | 2,474 |
Related tax expense | $ 628 | $ 1,040 |
Securities (Scheduled Maturitie
Securities (Scheduled Maturities of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due within one year | $ 573,138 | |
Due after one year through five years | 818,412 | |
Due after five years through ten years | 188,149 | |
Due after ten years | 1,311,194 | |
Total available-for-sale investment securities | 2,890,893 | |
Fair Value | ||
Due within one year | 549,190 | |
Due after one year through five years | 796,717 | |
Due after five years through ten years | 184,944 | |
Due after ten years | 1,280,565 | |
Total available-for-sale investment securities | 2,811,416 | $ 3,016,752 |
Fair values of available-for-sale investment securities pledged | $ 498,700 | $ 534,300 |
Securities (Restricted Equity S
Securities (Restricted Equity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
FRB stock | $ 56,537 | $ 56,271 |
FHLB stock | 17,250 | 17,250 |
Total | $ 73,787 | $ 73,521 |
Derivatives (Notional and Fair
Derivatives (Notional and Fair Values) (Details) Boe in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Boewarrant | Dec. 31, 2017USD ($)warrant | |
Fair Values of Derivative Instruments | ||
Derivative Assets | $ 59,831 | $ 66,146 |
Derivative Liabilities | 86,673 | 74,935 |
Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 133,275 | 35,811 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 9,405 | 6,799 |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 35,811 | 35,811 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 8,251 | 6,799 |
Derivatives designated as hedging instruments | Foreign exchange forwards | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 97,464 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 1,154 | 0 |
Derivatives not designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 11,133,117 | 10,153,108 |
Derivative Assets | 59,831 | 66,146 |
Derivative Liabilities | 77,268 | 68,136 |
Derivatives not designated as hedging instruments | Interest rate swaps and options | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 10,155,401 | 9,333,860 |
Derivative Assets | 51,933 | 58,633 |
Derivative Liabilities | 72,893 | 57,958 |
Derivatives not designated as hedging instruments | Foreign exchange spot and forwards | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 895,788 | 770,215 |
Derivative Assets | 6,087 | 5,840 |
Derivative Liabilities | 4,066 | 10,170 |
Derivatives not designated as hedging instruments | Credit risk participation agreements | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 81,928 | 49,033 |
Derivative Assets | 1 | 1 |
Derivative Liabilities | 21 | 8 |
Derivatives not designated as hedging instruments | Equity warrants | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 0 | 0 |
Derivative Assets | 1,513 | 1,672 |
Derivative Liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | Warrant, Public Companies | ||
Fair Values of Derivative Instruments | ||
Derivative Assets | $ 582 | $ 993 |
Number of warrants held | warrant | 4 | 4 |
Derivatives not designated as hedging instruments | Warrant, Private Companies | ||
Fair Values of Derivative Instruments | ||
Derivative Assets | $ 931 | $ 679 |
Number of warrants held | warrant | 24 | 23 |
Derivatives not designated as hedging instruments | Commodity options | ||
Fair Values of Derivative Instruments | ||
Notional Amount | $ 0 | $ 0 |
Derivative Assets | 297 | 0 |
Derivative Liabilities | $ 288 | $ 0 |
Derivatives not designated as hedging instruments | Commodity options | Customers | ||
Fair Values of Derivative Instruments | ||
Notional amount of commodity contracts in number of barrels of oil | Boe | 216 | |
Derivatives not designated as hedging instruments | Commodity options | Chicago Mercantile Exchange (CME) | ||
Fair Values of Derivative Instruments | ||
Notional amount of commodity contracts in number of barrels of oil | Boe | 216 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) Boe in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Boewarrant | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)warrant | |
Derivative [Line Items] | |||
Derivative liabilities | $ 86,673 | $ 74,935 | |
Derivative assets | 59,831 | 66,146 | |
Derivative asset, reduction in fair value | 38,877 | 29,205 | |
Derivative liability, reduction in fair value | 25,538 | 48,203 | |
Collateral posted | 12,038 | 28,796 | |
Derivatives designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 133,275 | 35,811 | |
Derivative liabilities | 9,405 | 6,799 | |
Derivative assets | 0 | 0 | |
Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 11,133,117 | 10,153,108 | |
Derivative liabilities | 77,268 | 68,136 | |
Derivative assets | 59,831 | 66,146 | |
Interest rate swaps | Derivatives designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 35,811 | 35,811 | |
Derivative liabilities | 8,251 | 6,799 | |
Derivative assets | 0 | 0 | |
Interest rate swaps | Derivatives designated as hedging instruments | Fair Value Hedges | |||
Derivative [Line Items] | |||
Notional amount | 35,800 | 35,800 | |
Derivative liabilities | 8,300 | 6,800 | |
Foreign exchange forwards | Derivatives designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 97,464 | 0 | |
Derivative liabilities | 1,154 | 0 | |
Derivative assets | 0 | 0 | |
Foreign exchange forwards | Derivatives designated as hedging instruments | Net investment hedges | |||
Derivative [Line Items] | |||
Notional amount | 97,500 | ||
Derivative liabilities | 1,200 | ||
Total fair value change in Foreign Currency Translation Adjustment with AOCI | (1,200) | ||
Loss recognized in AOCI on net investment hedges (effective portion) | $ 648 | ||
(Losses) gains recognized in foreign exchange income (ineffective portion) | $ (2,000) | ||
Interest rate swaps and options | |||
Derivative [Line Items] | |||
Notional amount of derivative assets | 5,110,000 | 4,690,000 | |
Notional amount of derivative liabilities | 5,050,000 | 4,650,000 | |
Interest rate swaps and options | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 10,155,401 | 9,333,860 | |
Derivative liabilities | 72,893 | 57,958 | |
Derivative assets | 51,933 | 58,633 | |
Interest rate swaps and options | Derivatives not designated as hedging instruments | LCH | |||
Derivative [Line Items] | |||
Notional amount of derivative assets | 1,400,000 | ||
Fair value of interest rate swaps cleared through LCH | 0 | ||
Derivative asset, reduction in fair value | (25,700) | ||
Derivative liability, reduction in fair value | (3,000) | ||
Foreign exchange spot and forwards | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 895,788 | 770,215 | |
Derivative liabilities | 4,066 | 10,170 | |
Derivative assets | 6,087 | 5,840 | |
Credit risk participation agreements | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 81,928 | 49,033 | |
Derivative liabilities | 21 | 8 | |
Derivative assets | $ 1 | $ 1 | |
Weighted average remaining maturity (in years) | 6 years 8 months 12 days | 6 years | |
Credit risk participation agreements | Derivatives not designated as hedging instruments | Long | |||
Derivative [Line Items] | |||
Notional amount | $ 68,900 | $ 35,200 | |
Derivative liabilities | 21 | 8 | |
Interest rate derivative exposure | 756 | 419 | |
Credit risk participation agreements | Derivatives not designated as hedging instruments | Short | |||
Derivative [Line Items] | |||
Notional amount | 13,000 | 13,800 | |
Derivative assets | 1 | 1 | |
Equity warrants | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Derivative assets | 1,513 | 1,672 | |
Warrant, Public Companies | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Derivative assets | $ 582 | $ 993 | |
Number of warrants held | warrant | 4 | 4 | |
Warrant, Private Companies | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Derivative assets | $ 931 | $ 679 | |
Number of warrants held | warrant | 24 | 23 | |
Commodity options | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | $ 0 | $ 0 | |
Derivative liabilities | 288 | 0 | |
Derivative assets | $ 297 | 0 | |
Commodity options | Derivatives not designated as hedging instruments | Customers | |||
Derivative [Line Items] | |||
Notional amount of commodity contracts in number of barrels of oil | Boe | 216 | ||
Commodity options | Derivatives not designated as hedging instruments | Chicago Mercantile Exchange (CME) | |||
Derivative [Line Items] | |||
Derivative asset, reduction in fair value | $ (276) | ||
Derivative liability, reduction in fair value | $ (297) | ||
Notional amount of commodity contracts in number of barrels of oil | Boe | 216 | ||
Credit-risk-related contingent features | |||
Derivative [Line Items] | |||
Aggregate fair value of derivative instruments in net liability position | $ 14,900 | 6,300 | |
Collateral posted | 12,300 | $ 6,200 | |
Additional collateral required to be posted if credit rating is downgraded | $ 3,500 |
Derivatives (Net Gains (Losses)
Derivatives (Net Gains (Losses) on Derivatives Designated as Hedges) (Details) - Fair Value Hedges - Derivatives designated as hedging instruments - Interest Expense - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Certificates of deposits | ||
Derivative [Line Items] | ||
Recognized on certificates of deposit | $ 1,279 | $ 688 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Recognized on interest rate swaps | $ (1,452) | $ (817) |
Derivatives (Hedged Items Curre
Derivatives (Hedged Items Currently Designated) (Details) - Certificates of deposits - Fair Value Hedges - Interest rate swaps - Derivatives designated as hedging instruments $ in Thousands | Mar. 31, 2018USD ($) |
Derivative [Line Items] | |
Carrying Amount of the Hedged Assets/(Liabilities) | $ (29,779) |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities) | $ 6,024 |
Derivatives (Net Gains (Losse62
Derivatives (Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments) (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for derivative not designated as hedging instruments | $ 4,791 | $ 4,773 |
Interest rate swaps and options | Derivative fees and other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for derivative not designated as hedging instruments | 1,106 | (1,066) |
Foreign exchange spot and forwards | Letters of credit fees and foreign exchange income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for derivative not designated as hedging instruments | 3,857 | 5,838 |
Credit risk participation agreements | Derivative fees and other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for derivative not designated as hedging instruments | (13) | 1 |
Equity warrants | Ancillary loan fees and other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for derivative not designated as hedging instruments | (159) | 0 |
Commodity options | Derivative fees and other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) recognized for derivative not designated as hedging instruments | $ 0 | $ 0 |
Derivatives (Offsetting of Deri
Derivatives (Offsetting of Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives Assets | ||
Total Gross Amounts | $ 59,831 | $ 66,146 |
Gross Amounts of Contracts Not Subject to Master Netting Arrangements | 20,954 | 36,941 |
Gross Amounts of Contracts Subject to Master Netting Arrangements | 38,877 | 29,205 |
Gross Amounts Offset on the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented on the Consolidated Balance Sheet | 38,877 | 29,205 |
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||
Derivative Amount | (12,957) | (18,955) |
Collateral Received | (23,810) | (9,839) |
Net Amount | 2,110 | 411 |
Cash collateral received | 6,900 | 8,600 |
Derivatives Liabilities | ||
Total Gross Amounts | 86,673 | 74,935 |
Gross Amounts of Contracts Not Subject to Master Netting Arrangements | 61,135 | 26,732 |
Gross Amounts of Contracts Subject to Master Netting Arrangements | 25,538 | 48,203 |
Gross Amounts Offset on the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented on the Consolidated Balance Sheet | 25,538 | 48,203 |
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||
Derivative Amounts | (12,957) | (18,955) |
Collateral Posted | (12,038) | (28,796) |
Net Amount | 543 | 452 |
Cash collateral posted | $ 1,500 | $ 10,700 |
Loans Receivable and Allowanc64
Loans Receivable and Allowance for Credit Losses (Composition of Non-PCI and PCI Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | $ 29,555,248 | $ 28,975,718 |
Allowance for loan losses | (297,654) | (287,128) |
Loans held-for-investment, net | 29,257,594 | 28,688,590 |
Commercial lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 22,465,245 | 22,210,001 |
Commercial lending | Commercial and industrial (“C&I”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 10,818,304 | 10,697,231 |
Commercial lending | Commercial real estate (“CRE”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 9,022,746 | 8,936,897 |
Commercial lending | Real estate loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 1,954,855 | 1,916,176 |
Commercial lending | Construction and land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 669,340 | 659,697 |
Consumer lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 7,090,003 | 6,765,717 |
Consumer lending | Real estate loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 4,930,580 | 4,646,289 |
Consumer lending | Home equity lines of credit (“HELOCs”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 1,775,443 | 1,782,924 |
Consumer lending | Other consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 383,980 | 336,504 |
PCI Loans | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 452,403 | 482,287 |
Allowance for loan losses | (47) | (58) |
Loans held-for-investment, net | 452,356 | 482,229 |
Discount related to ASC 310-30 | 32,200 | 35,300 |
PCI Loans | Commercial lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 327,260 | 350,902 |
PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 11,042 | 11,795 |
PCI Loans | Commercial lending | Commercial real estate (“CRE”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 259,836 | 277,688 |
PCI Loans | Commercial lending | Real estate loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 56,338 | 61,048 |
PCI Loans | Commercial lending | Construction and land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 44 | 371 |
PCI Loans | Consumer lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 125,143 | 131,385 |
PCI Loans | Consumer lending | Real estate loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 112,486 | 117,378 |
PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 12,657 | 14,007 |
PCI Loans | Consumer lending | Other consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 0 | 0 |
Non-PCI Loans | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 29,102,845 | 28,493,431 |
Allowance for loan losses | (297,607) | (287,070) |
Loans held-for-investment, net | 28,805,238 | 28,206,361 |
Unearned fees, premiums and discounts, net | (36,600) | (34,000) |
Non-PCI Loans | Commercial lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 22,137,985 | 21,859,099 |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 10,807,262 | 10,685,436 |
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 8,762,910 | 8,659,209 |
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 1,898,517 | 1,855,128 |
Non-PCI Loans | Commercial lending | Construction and land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 669,296 | 659,326 |
Non-PCI Loans | Consumer lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 6,964,860 | 6,634,332 |
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 4,818,094 | 4,528,911 |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | 1,762,786 | 1,768,917 |
Non-PCI Loans | Consumer lending | Other consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment | $ 383,980 | $ 336,504 |
Loans Receivable and Allowanc65
Loans Receivable and Allowance for Credit Losses (Composition of Non-PCI and PCI Loans - Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-investment pledged as collateral | $ 19,495,480 | $ 18,880,598 |
Minimum | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Adjustable rate mortgage, initial fixed periods | 1 year | |
Maximum | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Adjustable rate mortgage, initial fixed periods | 7 years | |
Consumer lending | Home equity lines of credit (“HELOCs”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loan-to-value ratio (or less at origination) | 60.00% |
Loans Receivable and Allowanc66
Loans Receivable and Allowance for Credit Losses (Credit Risk Ratings for Non-PCI Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 29,555,248 | $ 28,975,718 |
Commercial lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 22,465,245 | 22,210,001 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 10,818,304 | 10,697,231 |
Commercial lending | Commercial real estate (“CRE”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 9,022,746 | 8,936,897 |
Commercial lending | Real estate loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,954,855 | 1,916,176 |
Commercial lending | Construction and land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 669,340 | 659,697 |
Consumer lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 7,090,003 | 6,765,717 |
Consumer lending | Real estate loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 4,930,580 | 4,646,289 |
Consumer lending | Home equity lines of credit (“HELOCs”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,775,443 | 1,782,924 |
Consumer lending | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 383,980 | 336,504 |
Non-PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 29,102,845 | 28,493,431 |
Non-PCI Loans | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 28,516,465 | 27,878,020 |
Non-PCI Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 216,803 | 213,490 |
Non-PCI Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 341,659 | 381,039 |
Non-PCI Loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 27,918 | 20,882 |
Non-PCI Loans | Commercial lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 22,137,985 | 21,859,099 |
Non-PCI Loans | Commercial lending | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 21,578,108 | 21,308,550 |
Non-PCI Loans | Commercial lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 206,787 | 184,975 |
Non-PCI Loans | Commercial lending | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 325,172 | 344,692 |
Non-PCI Loans | Commercial lending | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 27,918 | 20,882 |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 10,807,262 | 10,685,436 |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 10,464,618 | 10,369,516 |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 164,161 | 114,769 |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 150,565 | 180,269 |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 27,918 | 20,882 |
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 8,762,910 | 8,659,209 |
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 8,614,575 | 8,484,635 |
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 41,942 | 65,616 |
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 106,393 | 108,958 |
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,898,517 | 1,855,128 |
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,884,434 | 1,839,958 |
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 14,083 | 15,170 |
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Non-PCI Loans | Commercial lending | Construction and land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 669,296 | 659,326 |
Non-PCI Loans | Commercial lending | Construction and land | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 614,481 | 614,441 |
Non-PCI Loans | Commercial lending | Construction and land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 684 | 4,590 |
Non-PCI Loans | Commercial lending | Construction and land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 54,131 | 40,295 |
Non-PCI Loans | Commercial lending | Construction and land | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Non-PCI Loans | Consumer lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 6,964,860 | 6,634,332 |
Non-PCI Loans | Consumer lending | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 6,938,357 | 6,569,470 |
Non-PCI Loans | Consumer lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 10,016 | 28,515 |
Non-PCI Loans | Consumer lending | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 16,487 | 36,347 |
Non-PCI Loans | Consumer lending | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 4,818,094 | 4,528,911 |
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 4,803,472 | 4,490,672 |
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 7,563 | 16,504 |
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 7,059 | 21,735 |
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,762,786 | 1,768,917 |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,753,398 | 1,744,903 |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,451 | 11,900 |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 6,937 | 12,114 |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Non-PCI Loans | Consumer lending | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 383,980 | 336,504 |
Non-PCI Loans | Consumer lending | Other consumer | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 381,487 | 333,895 |
Non-PCI Loans | Consumer lending | Other consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2 | 111 |
Non-PCI Loans | Consumer lending | Other consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,491 | 2,498 |
Non-PCI Loans | Consumer lending | Other consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 452,403 | 482,287 |
PCI Loans | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 405,798 | 432,628 |
PCI Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 3,508 | 2,131 |
PCI Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 43,097 | 47,528 |
PCI Loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Commercial lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 327,260 | 350,902 |
PCI Loans | Commercial lending | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 281,796 | 306,081 |
PCI Loans | Commercial lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,548 | 588 |
PCI Loans | Commercial lending | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 42,916 | 44,233 |
PCI Loans | Commercial lending | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 11,042 | 11,795 |
PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 10,071 | 10,712 |
PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 23 | 57 |
PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 948 | 1,026 |
PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Commercial lending | Commercial real estate (“CRE”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 259,836 | 277,688 |
PCI Loans | Commercial lending | Commercial real estate (“CRE”) | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 219,255 | 238,605 |
PCI Loans | Commercial lending | Commercial real estate (“CRE”) | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,525 | 531 |
PCI Loans | Commercial lending | Commercial real estate (“CRE”) | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 38,056 | 38,552 |
PCI Loans | Commercial lending | Commercial real estate (“CRE”) | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Commercial lending | Real estate loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 56,338 | 61,048 |
PCI Loans | Commercial lending | Real estate loan | Multifamily | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 52,426 | 56,720 |
PCI Loans | Commercial lending | Real estate loan | Multifamily | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Commercial lending | Real estate loan | Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 3,912 | 4,328 |
PCI Loans | Commercial lending | Real estate loan | Multifamily | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Commercial lending | Construction and land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 44 | 371 |
PCI Loans | Commercial lending | Construction and land | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 44 | 44 |
PCI Loans | Commercial lending | Construction and land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Commercial lending | Construction and land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 327 |
PCI Loans | Commercial lending | Construction and land | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Consumer lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 125,143 | 131,385 |
PCI Loans | Consumer lending | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 124,002 | 126,547 |
PCI Loans | Consumer lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 960 | 1,543 |
PCI Loans | Consumer lending | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 181 | 3,295 |
PCI Loans | Consumer lending | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Consumer lending | Real estate loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 112,486 | 117,378 |
PCI Loans | Consumer lending | Real estate loan | Single-family | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 111,567 | 113,905 |
PCI Loans | Consumer lending | Real estate loan | Single-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 748 | 1,543 |
PCI Loans | Consumer lending | Real estate loan | Single-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 171 | 1,930 |
PCI Loans | Consumer lending | Real estate loan | Single-family | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 12,657 | 14,007 |
PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 12,435 | 12,642 |
PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 212 | 0 |
PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 10 | 1,365 |
PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
PCI Loans | Consumer lending | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 0 | $ 0 |
Loans Receivable and Allowanc67
Loans Receivable and Allowance for Credit Losses (Aging Analysis on Non-PCI Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Nonaccrual and Past Due Loans | ||
Number of days beyond loan classified nonaccrual | 90 days | |
Total loans | $ 29,555,248 | $ 28,975,718 |
Commercial lending | ||
Nonaccrual and Past Due Loans | ||
Total loans | 22,465,245 | 22,210,001 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total loans | 10,818,304 | 10,697,231 |
Commercial lending | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total loans | 9,022,746 | 8,936,897 |
Commercial lending | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total loans | 1,954,855 | 1,916,176 |
Commercial lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total loans | 669,340 | 659,697 |
Consumer lending | ||
Nonaccrual and Past Due Loans | ||
Total loans | 7,090,003 | 6,765,717 |
Consumer lending | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total loans | 4,930,580 | 4,646,289 |
Consumer lending | Home equity lines of credit (“HELOCs”) | ||
Nonaccrual and Past Due Loans | ||
Total loans | 1,775,443 | 1,782,924 |
Consumer lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total loans | 383,980 | 336,504 |
Non-PCI Loans | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 57,319 | 67,677 |
Total Nonaccrual Loans | 130,217 | 114,309 |
Current Accruing Loans | 28,915,309 | 28,311,445 |
Total loans | 29,102,845 | 28,493,431 |
Non-PCI Loans | Accruing Loans 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 41,076 | 57,551 |
Non-PCI Loans | Accruing Loans 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 13,862 | 10,126 |
Non-PCI Loans | Accruing Loans 90 or More Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2,381 | 0 |
Total Nonaccrual Loans | 85,255 | 79,958 |
Non-PCI Loans | Nonaccrual Loans Less Than 90 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 44,962 | 34,351 |
Non-PCI Loans | Commercial lending | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 34,540 | 40,544 |
Total Nonaccrual Loans | 113,326 | 101,889 |
Current Accruing Loans | 21,990,119 | 21,716,666 |
Total loans | 22,137,985 | 21,859,099 |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 20,797 | 31,046 |
Total Nonaccrual Loans | 80,807 | 69,213 |
Current Accruing Loans | 10,705,658 | 10,585,177 |
Total loans | 10,807,262 | 10,685,436 |
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 8,967 | 3,880 |
Total Nonaccrual Loans | 26,496 | 26,986 |
Current Accruing Loans | 8,727,447 | 8,628,343 |
Total loans | 8,762,910 | 8,659,209 |
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2,972 | 4,860 |
Total Nonaccrual Loans | 2,050 | 1,717 |
Current Accruing Loans | 1,893,495 | 1,848,551 |
Total loans | 1,898,517 | 1,855,128 |
Non-PCI Loans | Commercial lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 1,804 | 758 |
Total Nonaccrual Loans | 3,973 | 3,973 |
Current Accruing Loans | 663,519 | 654,595 |
Total loans | 669,296 | 659,326 |
Non-PCI Loans | Commercial lending | Accruing Loans 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 28,401 | 39,982 |
Non-PCI Loans | Commercial lending | Accruing Loans 30-59 Days Past Due | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 16,767 | 30,964 |
Non-PCI Loans | Commercial lending | Accruing Loans 30-59 Days Past Due | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 6,872 | 3,414 |
Non-PCI Loans | Commercial lending | Accruing Loans 30-59 Days Past Due | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2,958 | 4,846 |
Non-PCI Loans | Commercial lending | Accruing Loans 30-59 Days Past Due | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 1,804 | 758 |
Non-PCI Loans | Commercial lending | Accruing Loans 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 3,758 | 562 |
Non-PCI Loans | Commercial lending | Accruing Loans 60-89 Days Past Due | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 1,649 | 82 |
Non-PCI Loans | Commercial lending | Accruing Loans 60-89 Days Past Due | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2,095 | 466 |
Non-PCI Loans | Commercial lending | Accruing Loans 60-89 Days Past Due | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 14 | 14 |
Non-PCI Loans | Commercial lending | Accruing Loans 60-89 Days Past Due | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Non-PCI Loans | Commercial lending | Accruing Loans 90 or More Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2,381 | 0 |
Total Nonaccrual Loans | 68,396 | 67,633 |
Non-PCI Loans | Commercial lending | Accruing Loans 90 or More Days Past Due | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2,381 | 0 |
Total Nonaccrual Loans | 42,198 | 41,805 |
Non-PCI Loans | Commercial lending | Accruing Loans 90 or More Days Past Due | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 21,175 | 21,556 |
Non-PCI Loans | Commercial lending | Accruing Loans 90 or More Days Past Due | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 1,050 | 299 |
Non-PCI Loans | Commercial lending | Accruing Loans 90 or More Days Past Due | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 3,973 | 3,973 |
Non-PCI Loans | Commercial lending | Nonaccrual Loans Less Than 90 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 44,930 | 34,256 |
Non-PCI Loans | Commercial lending | Nonaccrual Loans Less Than 90 Days Past Due | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 38,609 | 27,408 |
Non-PCI Loans | Commercial lending | Nonaccrual Loans Less Than 90 Days Past Due | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 5,321 | 5,430 |
Non-PCI Loans | Commercial lending | Nonaccrual Loans Less Than 90 Days Past Due | Real estate loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 1,000 | 1,418 |
Non-PCI Loans | Commercial lending | Nonaccrual Loans Less Than 90 Days Past Due | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 0 | 0 |
Non-PCI Loans | Consumer lending | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 22,779 | 27,133 |
Total Nonaccrual Loans | 16,891 | 12,420 |
Current Accruing Loans | 6,925,190 | 6,594,779 |
Total loans | 6,964,860 | 6,634,332 |
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 15,963 | 18,624 |
Total Nonaccrual Loans | 7,465 | 5,923 |
Current Accruing Loans | 4,794,666 | 4,504,364 |
Total loans | 4,818,094 | 4,528,911 |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 6,790 | 8,472 |
Total Nonaccrual Loans | 6,935 | 4,006 |
Current Accruing Loans | 1,749,061 | 1,756,439 |
Total loans | 1,762,786 | 1,768,917 |
Non-PCI Loans | Consumer lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 26 | 37 |
Total Nonaccrual Loans | 2,491 | 2,491 |
Current Accruing Loans | 381,463 | 333,976 |
Total loans | 383,980 | 336,504 |
Non-PCI Loans | Consumer lending | Accruing Loans 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 12,675 | 17,569 |
Non-PCI Loans | Consumer lending | Accruing Loans 30-59 Days Past Due | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 8,230 | 13,269 |
Non-PCI Loans | Consumer lending | Accruing Loans 30-59 Days Past Due | Home equity lines of credit (“HELOCs”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 4,421 | 4,286 |
Non-PCI Loans | Consumer lending | Accruing Loans 30-59 Days Past Due | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 24 | 14 |
Non-PCI Loans | Consumer lending | Accruing Loans 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 10,104 | 9,564 |
Non-PCI Loans | Consumer lending | Accruing Loans 60-89 Days Past Due | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 7,733 | 5,355 |
Non-PCI Loans | Consumer lending | Accruing Loans 60-89 Days Past Due | Home equity lines of credit (“HELOCs”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2,369 | 4,186 |
Non-PCI Loans | Consumer lending | Accruing Loans 60-89 Days Past Due | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 2 | 23 |
Non-PCI Loans | Consumer lending | Accruing Loans 90 or More Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 16,859 | 12,325 |
Non-PCI Loans | Consumer lending | Accruing Loans 90 or More Days Past Due | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 7,459 | 5,917 |
Non-PCI Loans | Consumer lending | Accruing Loans 90 or More Days Past Due | Home equity lines of credit (“HELOCs”) | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 6,909 | 3,917 |
Non-PCI Loans | Consumer lending | Accruing Loans 90 or More Days Past Due | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Total Nonaccrual Loans | 2,491 | 2,491 |
Non-PCI Loans | Consumer lending | Nonaccrual Loans Less Than 90 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 32 | 95 |
Non-PCI Loans | Consumer lending | Nonaccrual Loans Less Than 90 Days Past Due | Real estate loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 6 | 6 |
Non-PCI Loans | Consumer lending | Nonaccrual Loans Less Than 90 Days Past Due | Home equity lines of credit (“HELOCs”) | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 26 | 89 |
Non-PCI Loans | Consumer lending | Nonaccrual Loans Less Than 90 Days Past Due | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | $ 0 | $ 0 |
Loans Receivable and Allowanc68
Loans Receivable and Allowance for Credit Losses (Narrative) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Loans in process of foreclosure | ||
Other real estate owned, net | $ 734,000 | $ 830,000 |
Residential real estate properties | ||
Loans in process of foreclosure | ||
Carrying amount of foreclosed residential real estate properties included in total net OREO | 0 | 188,000 |
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 | 8,300,000 | 6,600,000 |
PCI Loans | ||
Nonaccrual loans | ||
Loans on nonaccrual status | $ 5,200,000 | $ 5,300,000 |
Loans Receivable and Allowanc69
Loans Receivable and Allowance for Credit Losses (Additions to Non-PCI TDRs) (Details) - Non-PCI Loans $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)loan | |
Loans Modified as TDRs | |
Post- Modification Outstanding Recorded Investment | $ 6,419 |
Commercial lending | |
Loans Modified as TDRs | |
Number of Loans | loan | 5 |
Pre- Modification Outstanding Recorded Investment | $ 8,060 |
Post- Modification Outstanding Recorded Investment | 6,419 |
Financial Impact | $ 1,273 |
Commercial lending | Commercial and industrial (“C&I”) | |
Loans Modified as TDRs | |
Number of Loans | loan | 2 |
Pre- Modification Outstanding Recorded Investment | $ 6,448 |
Post- Modification Outstanding Recorded Investment | 4,914 |
Financial Impact | $ 1,273 |
Commercial lending | Commercial real estate (“CRE”) | |
Loans Modified as TDRs | |
Number of Loans | loan | 1 |
Pre- Modification Outstanding Recorded Investment | $ 1,526 |
Post- Modification Outstanding Recorded Investment | 1,505 |
Financial Impact | $ 0 |
Commercial lending | Construction and land | |
Loans Modified as TDRs | |
Number of Loans | loan | 2 |
Pre- Modification Outstanding Recorded Investment | $ 86 |
Post- Modification Outstanding Recorded Investment | 0 |
Financial Impact | $ 0 |
Loans Receivable and Allowanc70
Loans Receivable and Allowance for Credit Losses (Non-PCI TDR Modifications) (Details) - Non-PCI Loans $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | $ 6,419 |
Principal | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 1,505 |
Principal and Interest | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 4,914 |
Commercial lending | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 6,419 |
Commercial lending | Commercial and industrial (“C&I”) | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 4,914 |
Commercial lending | Commercial and industrial (“C&I”) | Principal | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 0 |
Commercial lending | Commercial and industrial (“C&I”) | Principal and Interest | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 4,914 |
Commercial lending | Commercial real estate (“CRE”) | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 1,505 |
Commercial lending | Commercial real estate (“CRE”) | Principal | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 1,505 |
Commercial lending | Commercial real estate (“CRE”) | Principal and Interest | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | 0 |
Commercial lending | Construction and land | |
Financing Receivable, Modifications [Line Items] | |
Post- Modification Outstanding Recorded Investment | $ 0 |
Loans Receivable and Allowanc71
Loans Receivable and Allowance for Credit Losses (Loans Modified as TDRs that Subsequently Defaulted) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)loan | Mar. 31, 2017USD ($)loan | Dec. 31, 2017USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Period beyond which a TDR generally becomes delinquent | 90 days | ||
Additional funds committed to lend to borrowers whose terms have been modified | $ 2,000 | $ 5,100 | |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 1 | |
Recorded Investment | $ 0 | $ 2,718 | |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 0 | |
Recorded Investment | $ 155 | $ 0 |
Loans Receivable and Allowanc72
Loans Receivable and Allowance for Credit Losses (Non-PCI Impaired Loans) (Details) - Non-PCI Loans - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Impaired loans disclosures | |||
Unpaid Principal Balance | $ 206,532 | $ 211,442 | |
Recorded Investment With No Allowance | 88,232 | 79,064 | |
Recorded Investment With Allowance | 85,499 | 91,823 | |
Total Recorded Investment | 173,731 | 170,887 | |
Related Allowance | 32,319 | 19,895 | |
Average Recorded Investment | 174,314 | $ 221,601 | |
Recognized Interest Income | 3,315 | 328 | |
Commercial lending | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 178,781 | 187,966 | |
Recorded Investment With No Allowance | 80,858 | 76,777 | |
Recorded Investment With Allowance | 66,429 | 72,073 | |
Total Recorded Investment | 147,287 | 148,850 | |
Related Allowance | 29,282 | 16,866 | |
Average Recorded Investment | 148,054 | 201,972 | |
Recognized Interest Income | 2,953 | 294 | |
Commercial lending | Commercial and industrial (“C&I”) | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 123,336 | 130,773 | |
Recorded Investment With No Allowance | 43,192 | 36,086 | |
Recorded Investment With Allowance | 55,789 | 62,599 | |
Total Recorded Investment | 98,981 | 98,685 | |
Related Allowance | 28,564 | 16,094 | |
Average Recorded Investment | 99,457 | 143,214 | |
Recognized Interest Income | 1,900 | 221 | |
Commercial lending | Commercial real estate (“CRE”) | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 40,935 | 41,248 | |
Recorded Investment With No Allowance | 27,210 | 28,699 | |
Recorded Investment With Allowance | 7,706 | 6,857 | |
Total Recorded Investment | 34,916 | 35,556 | |
Related Allowance | 615 | 684 | |
Average Recorded Investment | 35,166 | 44,772 | |
Recognized Interest Income | 868 | 35 | |
Commercial lending | Real estate loan | Multifamily | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 9,819 | 11,164 | |
Recorded Investment With No Allowance | 6,483 | 8,019 | |
Recorded Investment With Allowance | 2,934 | 2,617 | |
Total Recorded Investment | 9,417 | 10,636 | |
Related Allowance | 103 | 88 | |
Average Recorded Investment | 9,458 | 9,269 | |
Recognized Interest Income | 116 | 38 | |
Commercial lending | Construction and land | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 4,691 | 4,781 | |
Recorded Investment With No Allowance | 3,973 | 3,973 | |
Recorded Investment With Allowance | 0 | 0 | |
Total Recorded Investment | 3,973 | 3,973 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 3,973 | 4,717 | |
Recognized Interest Income | 69 | 0 | |
Consumer lending | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 27,751 | 23,476 | |
Recorded Investment With No Allowance | 7,374 | 2,287 | |
Recorded Investment With Allowance | 19,070 | 19,750 | |
Total Recorded Investment | 26,444 | 22,037 | |
Related Allowance | 3,037 | 3,029 | |
Average Recorded Investment | 26,260 | 19,629 | |
Recognized Interest Income | 362 | 34 | |
Consumer lending | Real estate loan | Single-family | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 16,983 | 15,501 | |
Recorded Investment With No Allowance | 2,600 | 0 | |
Recorded Investment With Allowance | 13,219 | 14,338 | |
Total Recorded Investment | 15,819 | 14,338 | |
Related Allowance | 541 | 534 | |
Average Recorded Investment | 15,628 | 15,096 | |
Recognized Interest Income | 206 | 22 | |
Consumer lending | Home equity lines of credit (“HELOCs”) | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 8,277 | 5,484 | |
Recorded Investment With No Allowance | 4,774 | 2,287 | |
Recorded Investment With Allowance | 3,360 | 2,921 | |
Total Recorded Investment | 8,134 | 5,208 | |
Related Allowance | 5 | 4 | |
Average Recorded Investment | 8,141 | 4,532 | |
Recognized Interest Income | 111 | 12 | |
Consumer lending | Other consumer | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 2,491 | 2,491 | |
Recorded Investment With No Allowance | 0 | 0 | |
Recorded Investment With Allowance | 2,491 | 2,491 | |
Total Recorded Investment | 2,491 | 2,491 | |
Related Allowance | 2,491 | $ 2,491 | |
Average Recorded Investment | 2,491 | 1 | |
Recognized Interest Income | $ 45 | $ 0 |
Loans Receivable and Allowanc73
Loans Receivable and Allowance for Credit Losses (Summary of Activities in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for loan losses | ||
Beginning balance | $ 287,128 | |
Ending balance | 297,654 | $ 263,094 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Allowance for loan losses | ||
Beginning balance | 163,058 | |
Ending balance | 169,695 | |
Commercial lending | Commercial real estate (“CRE”) | ||
Allowance for loan losses | ||
Beginning balance | 41,237 | |
Ending balance | 39,718 | |
Commercial lending | Real estate loan | Multifamily | ||
Allowance for loan losses | ||
Beginning balance | 19,109 | |
Ending balance | 18,499 | |
Commercial lending | Construction and land | ||
Allowance for loan losses | ||
Beginning balance | 26,881 | |
Ending balance | 32,220 | |
Consumer lending | Real estate loan | Single-family | ||
Allowance for loan losses | ||
Beginning balance | 26,362 | |
Ending balance | 25,957 | |
Consumer lending | Home equity lines of credit (“HELOCs”) | ||
Allowance for loan losses | ||
Beginning balance | 7,354 | |
Ending balance | 7,041 | |
Consumer lending | Other consumer | ||
Allowance for loan losses | ||
Beginning balance | 3,127 | |
Ending balance | 4,524 | |
Non-PCI Loans | ||
Allowance for loan losses | ||
Beginning balance | 287,070 | 260,402 |
(Reversal of) provision for loan losses | 19,933 | 8,046 |
Charge-offs | (18,463) | (7,209) |
Recoveries | 9,067 | 1,768 |
Net recoveries (charge-offs) | (9,396) | (5,441) |
Ending balance | 297,607 | 263,007 |
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | ||
Allowance for loan losses | ||
Charge-offs | (18,445) | (7,057) |
Recoveries | 7,687 | 455 |
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | ||
Allowance for loan losses | ||
Recoveries | 427 | 569 |
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | ||
Allowance for loan losses | ||
Recoveries | 333 | 567 |
Non-PCI Loans | Commercial lending | Construction and land | ||
Allowance for loan losses | ||
Charge-offs | 0 | (148) |
Recoveries | 435 | 24 |
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | ||
Allowance for loan losses | ||
Charge-offs | (1) | 0 |
Recoveries | 184 | 11 |
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | ||
Allowance for loan losses | ||
Recoveries | 0 | 24 |
Non-PCI Loans | Consumer lending | Other consumer | ||
Allowance for loan losses | ||
Charge-offs | 17 | (4) |
Recoveries | 1 | 118 |
PCI Loans | ||
Allowance for loan losses | ||
Beginning balance | 58 | 118 |
(Reversal of) provision for loan losses | (11) | (31) |
Ending balance | 47 | $ 87 |
PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | ||
Allowance for loan losses | ||
Beginning balance | 0 | |
Ending balance | 0 | |
PCI Loans | Commercial lending | Commercial real estate (“CRE”) | ||
Allowance for loan losses | ||
Beginning balance | 58 | |
Ending balance | 47 | |
PCI Loans | Commercial lending | Real estate loan | Multifamily | ||
Allowance for loan losses | ||
Beginning balance | 0 | |
Ending balance | 0 | |
PCI Loans | Commercial lending | Construction and land | ||
Allowance for loan losses | ||
Beginning balance | 0 | |
Ending balance | 0 | |
PCI Loans | Consumer lending | Real estate loan | Single-family | ||
Allowance for loan losses | ||
Beginning balance | 0 | |
Ending balance | 0 | |
PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | ||
Allowance for loan losses | ||
Beginning balance | 0 | |
Ending balance | 0 | |
PCI Loans | Consumer lending | Other consumer | ||
Allowance for loan losses | ||
Beginning balance | 0 | |
Ending balance | $ 0 |
Loans Receivable and Allowanc74
Loans Receivable and Allowance for Credit Losses (Summary of Activities in Allowance for Unfunded Credit Reserves) (Details) - Allowance for Unfunded Credit Reserves - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for unfunded credit reserves | ||
Allowance for unfunded credit reserves, beginning of period | $ 13,318 | $ 16,121 |
Provision for (reversal of) unfunded credit reserves | 296 | (947) |
Allowance for unfunded credit reserves, end of period | $ 13,614 | $ 15,174 |
Loans Receivable and Allowanc75
Loans Receivable and Allowance for Credit Losses (Allowance for Loan Losses and Recorded Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Allowance for loan losses | ||||
Allowance for loan losses | $ 297,654 | $ 287,128 | $ 263,094 | |
Recorded investment in loans | ||||
Loans held-for-investment | 29,555,248 | 28,975,718 | ||
Commercial lending | ||||
Recorded investment in loans | ||||
Loans held-for-investment | 22,465,245 | 22,210,001 | ||
Commercial lending | Commercial and industrial (“C&I”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 169,695 | 163,058 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 10,818,304 | 10,697,231 | ||
Commercial lending | Commercial real estate (“CRE”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 39,718 | 41,237 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 9,022,746 | 8,936,897 | ||
Commercial lending | Real estate loan | Multifamily | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 18,499 | 19,109 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 1,954,855 | 1,916,176 | ||
Commercial lending | Construction and land | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 32,220 | 26,881 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 669,340 | 659,697 | ||
Consumer lending | ||||
Recorded investment in loans | ||||
Loans held-for-investment | 7,090,003 | 6,765,717 | ||
Consumer lending | Real estate loan | Single-family | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 25,957 | 26,362 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 4,930,580 | 4,646,289 | ||
Consumer lending | Home equity lines of credit (“HELOCs”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 7,041 | 7,354 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 1,775,443 | 1,782,924 | ||
Consumer lending | Other consumer | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 4,524 | 3,127 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 383,980 | 336,504 | ||
Non-PCI Loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 32,319 | 19,895 | ||
Collectively evaluated for impairment | 265,288 | 267,175 | ||
Allowance for loan losses | 297,607 | 287,070 | 263,007 | $ 260,402 |
Recorded investment in loans | ||||
Individually evaluated for impairment | 173,731 | 170,887 | ||
Collectively evaluated for impairment | 28,929,114 | 28,322,544 | ||
Loans held-for-investment | 29,102,845 | 28,493,431 | ||
Non-PCI Loans | Commercial lending | ||||
Recorded investment in loans | ||||
Loans held-for-investment | 22,137,985 | 21,859,099 | ||
Non-PCI Loans | Commercial lending | Commercial and industrial (“C&I”) | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 28,564 | 16,094 | ||
Collectively evaluated for impairment | 141,131 | 146,964 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 98,981 | 98,685 | ||
Collectively evaluated for impairment | 10,708,281 | 10,586,751 | ||
Loans held-for-investment | 10,807,262 | 10,685,436 | ||
Non-PCI Loans | Commercial lending | Commercial real estate (“CRE”) | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 615 | 684 | ||
Collectively evaluated for impairment | 39,056 | 40,495 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 34,916 | 35,556 | ||
Collectively evaluated for impairment | 8,727,994 | 8,623,653 | ||
Loans held-for-investment | 8,762,910 | 8,659,209 | ||
Non-PCI Loans | Commercial lending | Real estate loan | Multifamily | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 103 | 88 | ||
Collectively evaluated for impairment | 18,396 | 19,021 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 9,417 | 10,636 | ||
Collectively evaluated for impairment | 1,889,100 | 1,844,492 | ||
Loans held-for-investment | 1,898,517 | 1,855,128 | ||
Non-PCI Loans | Commercial lending | Construction and land | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 32,220 | 26,881 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 3,973 | 3,973 | ||
Collectively evaluated for impairment | 665,323 | 655,353 | ||
Loans held-for-investment | 669,296 | 659,326 | ||
Non-PCI Loans | Consumer lending | ||||
Recorded investment in loans | ||||
Loans held-for-investment | 6,964,860 | 6,634,332 | ||
Non-PCI Loans | Consumer lending | Real estate loan | Single-family | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 541 | 534 | ||
Collectively evaluated for impairment | 25,416 | 25,828 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 15,819 | 14,338 | ||
Collectively evaluated for impairment | 4,802,275 | 4,514,573 | ||
Loans held-for-investment | 4,818,094 | 4,528,911 | ||
Non-PCI Loans | Consumer lending | Home equity lines of credit (“HELOCs”) | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 5 | 4 | ||
Collectively evaluated for impairment | 7,036 | 7,350 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 8,134 | 5,208 | ||
Collectively evaluated for impairment | 1,754,652 | 1,763,709 | ||
Loans held-for-investment | 1,762,786 | 1,768,917 | ||
Non-PCI Loans | Consumer lending | Other consumer | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 2,491 | 2,491 | ||
Collectively evaluated for impairment | 2,033 | 636 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 2,491 | 2,491 | ||
Collectively evaluated for impairment | 381,489 | 334,013 | ||
Loans held-for-investment | 383,980 | 336,504 | ||
Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 47 | 58 | $ 87 | $ 118 |
Recorded investment in loans | ||||
Loans held-for-investment | 452,403 | 482,287 | ||
Acquired with deteriorated credit quality | Commercial lending | ||||
Recorded investment in loans | ||||
Loans held-for-investment | 327,260 | 350,902 | ||
Acquired with deteriorated credit quality | Commercial lending | Commercial and industrial (“C&I”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 0 | 0 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 11,042 | 11,795 | ||
Acquired with deteriorated credit quality | Commercial lending | Commercial real estate (“CRE”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 47 | 58 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 259,836 | 277,688 | ||
Acquired with deteriorated credit quality | Commercial lending | Real estate loan | Multifamily | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 0 | 0 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 56,338 | 61,048 | ||
Acquired with deteriorated credit quality | Commercial lending | Construction and land | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 0 | 0 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 44 | 371 | ||
Acquired with deteriorated credit quality | Consumer lending | ||||
Recorded investment in loans | ||||
Loans held-for-investment | 125,143 | 131,385 | ||
Acquired with deteriorated credit quality | Consumer lending | Real estate loan | Single-family | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 0 | 0 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 112,486 | 117,378 | ||
Acquired with deteriorated credit quality | Consumer lending | Home equity lines of credit (“HELOCs”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 0 | 0 | ||
Recorded investment in loans | ||||
Loans held-for-investment | 12,657 | 14,007 | ||
Acquired with deteriorated credit quality | Consumer lending | Other consumer | ||||
Allowance for loan losses | ||||
Allowance for loan losses | 0 | 0 | ||
Recorded investment in loans | ||||
Loans held-for-investment | $ 0 | $ 0 |
Loans Receivable and Allowanc76
Loans Receivable and Allowance for Credit Losses (Accretable Yield for PCI Loans) (Details) - PCI Loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in accretable yield for PCI loans | ||
Accretable yield for PCI loans, beginning of period | $ 101,977 | $ 136,247 |
Accretion | (9,134) | (10,279) |
Changes in expected cash flows | 3,021 | 2,022 |
Accretable yield for PCI loans, end of period | $ 95,864 | $ 127,990 |
Loans Receivable and Allowanc77
Loans Receivable and Allowance for Credit Losses (Loans Held-for-Sale Activity Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-sale | $ 46,181 | $ 85 |
Loans Receivable and Allowanc78
Loans Receivable and Allowance for Credit Losses (Loans Held-for-Sale Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Loans Held-for-Sale | ||
Loans transferred from held-for-investment to held-for-sale | $ 155,767 | $ 278,024 |
Sales | 114,287 | 275,945 |
Purchases | 80,046 | 147,242 |
Net gains from sales of loans held-for-sale during the period, excluding lower of cost or fair value adjustment | 1,600 | 2,800 |
C & I and CRE | Originated | ||
Loans Held-for-Sale | ||
Sales | 89,700 | 29,300 |
Loans sold in secondary market | Purchased | ||
Loans Held-for-Sale | ||
Sales | 24,600 | 246,600 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Loans Held-for-Sale | ||
Sales | 102,365 | 236,679 |
Purchases | 64,747 | 147,116 |
Commercial lending | Commercial real estate (“CRE”) | ||
Loans Held-for-Sale | ||
Sales | 9,376 | 12,765 |
Purchases | 0 | 0 |
Commercial lending | Real estate loan | Multifamily | ||
Loans Held-for-Sale | ||
Sales | 0 | 0 |
Purchases | 186 | 126 |
Consumer lending | Real estate loan | Single-family | ||
Loans Held-for-Sale | ||
Sales | 2,546 | 4,310 |
Purchases | 15,113 | 0 |
Consumer lending | Other consumer | ||
Loans Held-for-Sale | ||
Sales | 0 | 22,191 |
Purchases | 0 | 0 |
Loans held-for-sale | ||
Loans Held-for-Sale | ||
Loans transferred from held-for-investment to held-for-sale | 155,767 | 278,024 |
Write-down of loans transferred from loans held-for-investment to loans held-for-sale recorded to allowance for loan losses | 85 | 92 |
Lower of cost or fair value adjustment | 69 | |
Loans held-for-sale | Commercial lending | Commercial and industrial (“C&I”) | ||
Loans Held-for-Sale | ||
Loans transferred from held-for-investment to held-for-sale | 146,391 | 265,259 |
Loans held-for-sale | Commercial lending | Commercial real estate (“CRE”) | ||
Loans Held-for-Sale | ||
Loans transferred from held-for-investment to held-for-sale | 9,376 | 12,765 |
Loans held-for-sale | Commercial lending | Real estate loan | Multifamily | ||
Loans Held-for-Sale | ||
Loans transferred from held-for-investment to held-for-sale | 0 | 0 |
Loans held-for-sale | Consumer lending | Real estate loan | Single-family | ||
Loans Held-for-Sale | ||
Loans transferred from held-for-investment to held-for-sale | 0 | 0 |
Loans held-for-sale | Consumer lending | Other consumer | ||
Loans Held-for-Sale | ||
Loans transferred from held-for-investment to held-for-sale | $ 0 | $ 0 |
Investments in Qualified Affo79
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Investments in Qualified Affordable Housing Partnerships, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
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 | $ 160,574 | $ 162,824 | |
Accrued expenses and other liabilities — Unfunded commitments | 54,801 | $ 55,815 | |
Tax credits and other tax benefits recognized | 9,155 | $ 9,621 | |
Amortization expense included in income tax expense | $ 7,073 | $ 6,950 |
Investments in Qualified Affo80
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Investments in Tax Credit and Other Investments, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Investments in tax credit and other investments, net | $ 246,183 | $ 224,551 | |
Marketable equity securities | 31,900 | ||
Unrealized loss recognized on marketable equity securities held | (454) | ||
Noninterest expense — amortization of tax credit and other investments | 17,400 | $ 14,360 | |
Investments in tax credit and other investments, net | |||
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Marketable equity securities | 31,000 | ||
Accrued expenses and other liabilities | |||
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Total unfunded commitments for investments in tax credit and other investments | $ 107,800 | $ 113,400 |
Goodwill and Other Intangible81
Goodwill and Other Intangible Assets (Goodwill and Impairment) (Details) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 465,547,000 | $ 465,547,000 | $ 469,433,000 |
Number of reporting units | segment | 3 | ||
Goodwill impairment | $ 0 | ||
Desert Community Bank | |||
Goodwill [Line Items] | |||
Decrease in goodwill | $ (3,900,000) |
Goodwill and Other Intangible82
Goodwill and Other Intangible Assets (Core Deposit Intangibles) (Details) - Core Deposit Intangibles - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross balance | $ 86,099,000 | $ 100,166,000 | |
Accumulated amortization | 67,562,000 | 79,112,000 | |
Net carrying balance | 18,537,000 | $ 21,054,000 | |
Write-off upon dispositions | 0 | $ 0 | |
Desert Community Bank | |||
Finite-Lived Intangible Assets [Line Items] | |||
Write-off upon dispositions | $ 1,000,000 |
Goodwill and Other Intangible83
Goodwill and Other Intangible Assets (Amortization Expense of Core Deposit Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1,500 | $ 1,800 | |
Core Deposit Intangibles | |||
Year Ended December 31, | |||
Remainder of 2018 | 4,008 | ||
2,019 | 4,518 | ||
2,020 | 3,634 | ||
2,021 | 2,749 | ||
2,022 | 1,865 | ||
Thereafter | 1,763 | ||
Net carrying balance | $ 18,537 | $ 21,054 |
Commitments and Contingencies84
Commitments and Contingencies (Credit-related Commitments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loan commitments | $ 4,818,815 | $ 5,075,480 |
Commercial letters of credit and SBLCs | $ 1,632,585 | $ 1,655,897 |
Commitments and Contingencies85
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Guarantees | ||
Commercial letters of credit and SBLCs | $ 1,632,585 | $ 1,655,897 |
Accrued expenses and other liabilities | ||
Guarantees | ||
Allowance for unfunded credit reserves | 13,400 | 12,700 |
Other Commitments | ||
Unfunded commitments in investments in qualified affordable housing partnerships, tax credit and other investments | 162,600 | 169,200 |
Single Family and Multi-family Residential | Loans Sold or Securitized with Recourse | ||
Guarantees | ||
Principal amount outstanding on loans sold or securitized | 108,700 | 113,700 |
Maximum potential future payments up to recourse component | 37,800 | 38,700 |
Single Family and Multi-family Residential | Loans Sold or Securitized with Recourse | Accrued expenses and other liabilities | ||
Guarantees | ||
Allowance for unfunded credit reserves | 200 | $ 214 |
Standby Letters of Credit | ||
Guarantees | ||
Commercial letters of credit and SBLCs | 1,570,000 | |
Commercial Letters of Credit | ||
Guarantees | ||
Commercial letters of credit and SBLCs | $ 60,500 |
Revenue from Contracts with C86
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 13,383 | $ 14,259 |
Other sources of noninterest income | 61,061 | 101,569 |
Total noninterest income | 74,444 | 115,828 |
Retail Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 9,880 | 10,110 |
Other sources of noninterest income | 34,568 | 3,454 |
Total noninterest income | 44,448 | 13,564 |
Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,345 | 4,044 |
Other sources of noninterest income | 24,093 | 21,690 |
Total noninterest income | 27,438 | 25,734 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 158 | 105 |
Other sources of noninterest income | 2,400 | 76,425 |
Total noninterest income | 2,558 | 76,530 |
Deposit service charges and related fee income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 9,186 | 8,684 |
Deposit service charges and related fee income | Retail Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 6,014 | 5,837 |
Deposit service charges and related fee income | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,014 | 2,742 |
Deposit service charges and related fee income | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 158 | 105 |
Card income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,244 | 1,240 |
Card income | Retail Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,070 | 1,027 |
Card income | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 174 | 213 |
Card income | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Wealth management fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,953 | 4,335 |
Wealth management fees | Retail Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,796 | 3,246 |
Wealth management fees | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 157 | 1,089 |
Wealth management fees | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 0 | $ 0 |
Stock Compensation Plans (Narra
Stock Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 0 | 0 |
RSAs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards other than options outstanding (in shares) | 0 | 0 |
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 | |
Performance-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards other than options outstanding (in shares) | 411,290 | 424,299 |
Total unrecognized compensation cost | $ 26 | |
Weighted average period to recognize unrecognized compensation cost | 2 years 4 months 13 days | |
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 | |
Time-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards other than options outstanding (in shares) | 1,214,611 | 1,166,580 |
Total unrecognized compensation cost | $ 46.8 | |
Weighted average period to recognize unrecognized compensation cost | 2 years 5 months 8 days |
Stock Compensation Plans (Compe
Stock Compensation Plans (Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total Stock Compensation Expense and Related Net Tax Benefit [Abstract] | ||
Stock compensation costs | $ 6,158 | $ 5,151 |
Related net tax benefits for stock compensation plans | $ 4,778 | $ 4,414 |
Stock Compensation Plans (Summa
Stock Compensation Plans (Summary of Activity for Time-Based and Performance-Based RSUs) (Details) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Time-Based RSUs | |
Shares | |
Outstanding, beginning of period (in shares) | shares | 1,166,580 |
Granted (in shares) | shares | 389,667 |
Vested (in shares) | shares | (312,413) |
Forfeited (in shares) | shares | (29,223) |
Outstanding, end of period (in shares) | shares | 1,214,611 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 42 |
Granted (in dollars per share) | $ / shares | 67.32 |
Vested (in dollars per share) | $ / shares | 39.97 |
Forfeited (in dollars per share) | $ / shares | 44.62 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 50.58 |
Performance-Based RSUs | |
Shares | |
Outstanding, beginning of period (in shares) | shares | 424,299 |
Granted (in shares) | shares | 120,286 |
Vested (in shares) | shares | (133,295) |
Forfeited (in shares) | shares | 0 |
Outstanding, end of period (in shares) | shares | 411,290 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 41.44 |
Granted (in dollars per share) | $ / shares | 70.13 |
Vested (in dollars per share) | $ / shares | 41.15 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 49.93 |
Stockholders' Equity and Earn90
Stockholders' Equity and Earnings Per Share (Warrants) (Details) - shares | Mar. 31, 2018 | Jan. 17, 2014 | Jan. 16, 2014 |
Class of Stock [Line Items] | |||
Number of warrants exercised (in warrants) | 0 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Shares of East West's common stock into which the warrant may be converted (in shares) | 230,282 | ||
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 Earn91
Stockholders' Equity and Earnings Per Share (Earnings Per Share Calculation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic | ||
Net income | $ 187,032 | $ 169,736 |
Basic weighted average number of shares outstanding (in shares) | 144,664 | 144,249 |
Basic EPS (in dollars per share) | $ 1.29 | $ 1.18 |
Diluted | ||
Net income | $ 187,032 | $ 169,736 |
Basic weighted average number of shares outstanding (in shares) | 144,664 | 144,249 |
Diluted potential common shares (in shares) | 1,275 | 1,483 |
Diluted weighted average number of shares outstanding (in shares) | 145,939 | 145,732 |
Diluted EPS (in dollars per share) | $ 1.28 | $ 1.16 |
Stockholders' Equity and Earn92
Stockholders' Equity and Earnings Per Share (Weighted Average Anti-dilutive Shares) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average anti-dilutive shares (in shares) | 177,807 | 193,916 |
Accumulated Other Comprehensi93
Accumulated Other Comprehensive Income (Loss) (Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 3,841,951 | $ 3,427,741 | ||
Cumulative effect of change in accounting principle related to marketable equity securities | [1] | $ (160) | ||
Net unrealized (losses) gains arising during the period | (10,513) | 6,062 | ||
Amounts reclassified from AOCI | (1,501) | (1,434) | ||
Other comprehensive (loss) income | (12,014) | 4,628 | ||
Ending balance | 3,978,755 | 3,565,954 | ||
Available- for-Sale Investment Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (30,898) | (28,772) | ||
Net unrealized (losses) gains arising during the period | (17,311) | 5,055 | ||
Amounts reclassified from AOCI | (1,501) | (1,434) | ||
Other comprehensive (loss) income | (18,812) | 3,621 | ||
Ending balance | (55,981) | (25,151) | ||
Available- for-Sale Investment Securities | ASU 2016-01 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of change in accounting principle related to marketable equity securities | 385 | |||
Available- for-Sale Investment Securities | ASU 2018-02 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate | (6,656) | |||
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (6,621) | (19,374) | ||
Net unrealized (losses) gains arising during the period | 6,798 | 1,007 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Other comprehensive (loss) income | 6,798 | 1,007 | ||
Ending balance | 177 | (18,367) | ||
AOCI, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (37,519) | (48,146) | ||
Cumulative effect of change in accounting principle related to marketable equity securities | [1] | 385 | ||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate | [2] | (6,656) | ||
Other comprehensive (loss) income | (12,014) | 4,628 | ||
Ending balance | (55,804) | $ (43,518) | ||
AOCI, Net of Tax | ASU 2016-01 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of change in accounting principle related to marketable equity securities | $ 385 | |||
AOCI, Net of Tax | ASU 2018-02 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification of tax effects in AOCI resulting from the new federal corporate income tax rate | $ (6,656) | |||
[1] | Represents the impact of the adoption in the first quarter of 2018 of Accounting Standards Update (“ASU”) 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. | |||
[2] | Represents amounts reclassified from AOCI to retained earnings due to the early adoption of ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income during the first quarter of 2018. Refer to Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information. |
Accumulated Other Comprehensi94
Accumulated Other Comprehensive Income (Loss) (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Before-Tax | ||
Net change | $ (19,908) | $ 7,254 |
Tax Effect | ||
Net change | 7,894 | (2,626) |
Net-of-Tax | ||
Net unrealized (losses) gains arising during the period | (10,513) | 6,062 |
Net realized gains reclassified into net income | (1,501) | (1,434) |
Other comprehensive (loss) income | (12,014) | 4,628 |
Available- for-Sale Investment Securities | ||
Before-Tax | ||
Net unrealized (losses) gains arising during the period | (24,577) | 8,721 |
Net realized gains reclassified into net income | (2,129) | (2,474) |
Net change | (26,706) | 6,247 |
Tax Effect | ||
Net unrealized (losses) gains arising during the period | 7,266 | (3,666) |
Net realized gains reclassified into net income | 628 | 1,040 |
Net change | 7,894 | (2,626) |
Net-of-Tax | ||
Net unrealized (losses) gains arising during the period | (17,311) | 5,055 |
Net realized gains reclassified into net income | (1,501) | (1,434) |
Other comprehensive (loss) income | (18,812) | 3,621 |
Foreign Currency Translation Adjustments | ||
Before-Tax | ||
Net unrealized (losses) gains arising during the period | 6,798 | 1,007 |
Net change | 6,798 | 1,007 |
Tax Effect | ||
Net unrealized (losses) gains arising during the period | 0 | 0 |
Net change | 0 | 0 |
Net-of-Tax | ||
Net unrealized (losses) gains arising during the period | 6,798 | 1,007 |
Net realized gains reclassified into net income | 0 | 0 |
Other comprehensive (loss) income | $ 6,798 | $ 1,007 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018segmentbusiness_division | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of business segments | business_division | 3 |
Number of segment whom broad administrative support are provided | 2 |
Business Segments (Operating Re
Business Segments (Operating Results and Other Key Financial Measures) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information | |||
Interest income | $ 371,873 | $ 302,669 | |
Charge for funds used | (178,966) | (120,414) | |
Interest spread on funds used | 192,907 | 182,255 | |
Interest expense | (45,180) | (30,547) | |
Credit on funds provided | 178,966 | 120,414 | |
Interest spread on funds provided (used) | 133,786 | 89,867 | |
Net interest income before provision for credit losses | 326,693 | 272,122 | |
Provision for credit losses | 20,218 | 7,068 | |
Noninterest income | 74,444 | 115,828 | |
Noninterest expense | 169,135 | 152,878 | |
Segment income (loss) before income taxes | 211,784 | 228,004 | |
Segment income after income taxes | 187,032 | 169,736 | |
Segment assets | 37,693,158 | 35,342,126 | $ 37,150,249 |
Retail Banking | |||
Segment Reporting Information | |||
Interest income | 104,710 | 81,025 | |
Charge for funds used | (49,273) | (27,738) | |
Interest spread on funds used | 55,437 | 53,287 | |
Interest expense | (24,940) | (16,183) | |
Credit on funds provided | 145,451 | 102,546 | |
Interest spread on funds provided (used) | 120,511 | 86,363 | |
Net interest income before provision for credit losses | 175,948 | 139,650 | |
Provision for credit losses | 3,093 | 378 | |
Noninterest income | 44,448 | 13,564 | |
Noninterest expense | 81,968 | 72,844 | |
Segment income (loss) before income taxes | 135,335 | 79,992 | |
Segment income after income taxes | 96,968 | 47,035 | |
Segment assets | 9,345,892 | 8,213,268 | |
Commercial Banking | |||
Segment Reporting Information | |||
Interest income | 239,577 | 192,419 | |
Charge for funds used | (111,366) | (64,509) | |
Interest spread on funds used | 128,211 | 127,910 | |
Interest expense | (9,179) | (5,098) | |
Credit on funds provided | 25,448 | 12,043 | |
Interest spread on funds provided (used) | 16,269 | 6,945 | |
Net interest income before provision for credit losses | 144,480 | 134,855 | |
Provision for credit losses | 17,125 | 6,690 | |
Noninterest income | 27,438 | 25,734 | |
Noninterest expense | 65,020 | 54,373 | |
Segment income (loss) before income taxes | 89,773 | 99,526 | |
Segment income after income taxes | 64,362 | 58,796 | |
Segment assets | 21,992,393 | 19,624,237 | |
Other | |||
Segment Reporting Information | |||
Interest income | 27,586 | 29,225 | |
Charge for funds used | (18,327) | (28,167) | |
Interest spread on funds used | 9,259 | 1,058 | |
Interest expense | (11,061) | (9,266) | |
Credit on funds provided | 8,067 | 5,825 | |
Interest spread on funds provided (used) | (2,994) | (3,441) | |
Net interest income before provision for credit losses | 6,265 | (2,383) | |
Provision for credit losses | 0 | 0 | |
Noninterest income | 2,558 | 76,530 | |
Noninterest expense | 22,147 | 25,661 | |
Segment income (loss) before income taxes | (13,324) | 48,486 | |
Segment income after income taxes | 25,702 | 63,905 | |
Segment assets | $ 6,354,873 | $ 7,504,621 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | May 15, 2018 | Apr. 19, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Subsequent events | ||||
Dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.20 | ||
Subsequent Event | ||||
Subsequent events | ||||
Dividends declared per common share (in dollars per share) | $ 0.20 | |||
Subsequent Event | Forecast | ||||
Subsequent events | ||||
Dividends paid per common share (in dollars per share) | $ 0.20 |