Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-24939 | |
Entity Registrant Name | EAST WEST BANCORP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4703316 | |
Entity Address, Address Line One | 135 North Los Robles Ave. | |
Entity Address, Address Line Two | 7th Floor | |
Entity Address, City or Town | Pasadena | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91101 | |
City Area Code | 626 | |
Local Phone Number | 768-6000 | |
Title of each class | Common Stock, par value $0.001 per share | |
Trading Symbol | EWBC | |
Name of each exchange on which registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 140,917,512 | |
Entity Central Index Key | 0001069157 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 688,936 | $ 527,317 |
Interest-bearing cash with banks | 1,213,117 | 3,385,618 |
Cash and cash equivalents | 1,902,053 | 3,912,935 |
Interest-bearing deposits with banks | 712,709 | 736,492 |
Assets purchased under resale agreements (“resale agreements”) | 1,422,794 | 2,353,503 |
Securities: | ||
Available-for-sale (“AFS”) debt securities, at fair value (amortized cost of $6,891,522 and $10,087,179) | 6,255,504 | 9,965,353 |
Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,656,549) | 3,028,302 | 0 |
Loans held-for-sale | 28,464 | 635 |
Loans held-for-investment (net of allowance for loan losses of $563,270 and $541,579) | 45,938,806 | 41,152,202 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net | 634,304 | 628,263 |
Premises and equipment (net of accumulated depreciation of $143,708 and $139,358) | 93,911 | 97,302 |
Goodwill | 465,697 | 465,697 |
Operating lease right-of-use assets | 107,588 | 98,632 |
Other assets | 1,804,151 | 1,459,687 |
TOTAL | 62,394,283 | 60,870,701 |
Deposits: | ||
Noninterest-bearing | 23,028,831 | 22,845,464 |
Interest-bearing | 31,314,523 | 30,505,068 |
Total deposits | 54,343,354 | 53,350,532 |
Federal Home Loan Bank (“FHLB”) advances | 174,776 | 249,331 |
Assets sold under repurchase agreements (“repurchase agreements”) | 611,785 | 300,000 |
Long-term debt and finance lease liabilities | 152,663 | 151,997 |
Operating lease liabilities | 115,387 | 105,534 |
Accrued expenses and other liabilities | 1,386,836 | 876,089 |
Total liabilities | 56,784,801 | 55,033,483 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 168,427,021 and 167,790,645 shares issued | 168 | 168 |
Additional paid-in capital | 1,914,064 | 1,893,557 |
Retained earnings | 5,064,650 | 4,683,659 |
Treasury stock, at cost 27,509,632 and 25,882,691 shares | 768,752 | 649,785 |
Accumulated other comprehensive loss (“AOCI”), net of tax | (600,648) | (90,381) |
Total stockholders’ equity | 5,609,482 | 5,837,218 |
TOTAL | $ 62,394,283 | $ 60,870,701 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
AFS debt securities, amortized cost | $ 6,891,522 | $ 10,087,179 |
HTM debt securities, fair value | 2,656,549 | |
Allowance for loan losses | 563,270 | 541,579 |
Premises and equipment, accumulated depreciation | $ 143,708 | $ 139,358 |
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) | 168,427,021 | 167,790,645 |
Treasury stock, shares (in shares) | 27,509,632 | 25,882,691 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans receivable, including fees | $ 439,416 | $ 352,453 | $ 816,526 | $ 694,461 |
Debt securities | 46,176 | 34,690 | 88,843 | 63,790 |
Resale agreements | 8,553 | 8,021 | 16,936 | 14,120 |
Restricted equity securities | 822 | 541 | 1,431 | 1,088 |
Interest-bearing cash and deposits with banks | 4,787 | 3,628 | 8,047 | 7,260 |
Total interest and dividend income | 499,754 | 399,333 | 931,783 | 780,719 |
INTEREST EXPENSE | ||||
Deposits | 22,488 | 17,998 | 35,477 | 39,820 |
Short-term borrowings | 241 | 0 | 250 | 42 |
FHLB advances | 559 | 2,099 | 1,137 | 5,168 |
Repurchase agreements | 2,418 | 1,991 | 4,434 | 3,969 |
Long-term debt and finance lease liabilities | 1,096 | 772 | 1,920 | 1,552 |
Total interest expense | 26,802 | 22,860 | 43,218 | 50,551 |
Net interest income before provision for (reversal of) credit losses | 472,952 | 376,473 | 888,565 | 730,168 |
Provision for (reversal of) credit losses | 13,500 | (15,000) | 21,500 | (15,000) |
Net interest income after provision for (reversal of) credit losses | 459,452 | 391,473 | 867,065 | 745,168 |
NONINTEREST INCOME | ||||
Lending fees | 20,142 | 21,092 | 39,580 | 39,449 |
Deposit account fees | 22,372 | 17,342 | 42,687 | 32,725 |
Interest rate contracts and other derivative income (loss) | 9,801 | (3,172) | 20,934 | 13,825 |
Foreign exchange income | 11,361 | 13,007 | 24,060 | 22,533 |
Wealth management fees | 6,539 | 7,951 | 12,591 | 14,862 |
Net gains on sales of loans | 917 | 1,491 | 3,839 | 3,272 |
Gains on sales of AFS debt securities | 28 | 632 | 1,306 | 824 |
Other investment income | 4,863 | 7,596 | 6,490 | 8,521 |
Other income | 2,421 | 2,492 | 6,700 | 5,286 |
Total noninterest income | 78,444 | 68,431 | 158,187 | 141,297 |
NONINTEREST EXPENSE | ||||
Compensation and employee benefits | 113,364 | 105,426 | 229,633 | 213,234 |
Occupancy and equipment expense | 15,469 | 15,377 | 30,933 | 31,299 |
Deposit insurance premiums and regulatory assessments | 4,927 | 4,274 | 9,644 | 8,150 |
Deposit account expense | 5,671 | 3,817 | 10,364 | 7,709 |
Data processing | 3,486 | 4,035 | 7,151 | 8,513 |
Computer software expense | 6,572 | 7,521 | 13,866 | 14,680 |
Consulting expense | 2,021 | 1,868 | 3,854 | 3,343 |
Legal expense | 1,047 | 1,975 | 1,765 | 3,477 |
Other operating expense | 29,324 | 17,939 | 50,221 | 37,546 |
Amortization of tax credit and other investments | 14,979 | 27,291 | 28,879 | 52,649 |
Total noninterest expense | 196,860 | 189,523 | 386,310 | 380,600 |
INCOME BEFORE INCOME TAXES | 341,036 | 270,381 | 638,942 | 505,865 |
INCOME TAX EXPENSE | 82,707 | 45,639 | 142,961 | 76,129 |
NET INCOME | $ 258,329 | $ 224,742 | $ 495,981 | $ 429,736 |
EARNINGS PER SHARE (“EPS”) | ||||
BASIC (in dollars per share) | $ 1.83 | $ 1.58 | $ 3.50 | $ 3.03 |
DILUTED (in dollars per share) | $ 1.81 | $ 1.57 | $ 3.47 | $ 3.01 |
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING | ||||
BASIC (in shares) | 141,429 | 141,868 | 141,725 | 141,758 |
DILUTED (in shares) | 142,372 | 143,040 | 142,838 | 142,963 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 258,329 | $ 224,742 | $ 495,981 | $ 429,736 |
Other comprehensive (loss) income, net of tax: | ||||
Net changes in unrealized (losses) gains on AFS debt securities | (192,878) | 73,049 | (362,148) | (60,399) |
Net changes in unrealized gains (losses) on securities transferred from AFS to HTM | 3,750 | 0 | (106,930) | 0 |
Net changes in unrealized (losses) gains on cash flow hedges | (6,380) | 68 | (31,103) | 500 |
Foreign currency translation adjustments | (10,215) | 2,234 | (10,086) | 885 |
Other comprehensive (loss) income | (205,723) | 75,351 | (510,267) | (59,014) |
COMPREHENSIVE INCOME (LOSS) | $ 52,606 | $ 300,093 | $ (14,286) | $ 370,722 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Various Stock Compensation Plans And Agreements | Stock Repurchase Plan | Common Stock | Common Stock Various Stock Compensation Plans And Agreements | Common Stock Stock Repurchase Plan | Common Stock and Additional Paid-in Capital | Retained Earnings | Treasury Stock | Treasury Stock Various Stock Compensation Plans And Agreements | Treasury Stock Stock Repurchase Plan | AOCI, Net of Tax |
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance (in shares) | 141,565,229 | |||||||||||
Beginning balance at Dec. 31, 2020 | $ 5,269,175 | $ 1,858,519 | $ 4,000,414 | $ (634,083) | $ 44,325 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 429,736 | 429,736 | ||||||||||
Other comprehensive income (loss) | (59,014) | (59,014) | ||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements (in shares) | 513,806 | |||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 17,728 | 17,728 | ||||||||||
Repurchase of common stock pursuant to various stock compensation plans and agreements and Stock Repurchase Plan (in shares) | (201,530) | |||||||||||
Repurchase of common stock pursuant to various stock compensation plans and agreements and Stock Repurchase Plan | $ (15,254) | $ (15,254) | ||||||||||
Cash dividends on common stock | (94,823) | (94,823) | ||||||||||
Ending balance at Jun. 30, 2021 | 5,547,548 | 1,876,247 | 4,335,327 | (649,337) | (14,689) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance (in shares) | 141,843,036 | |||||||||||
Beginning balance at Mar. 31, 2021 | 5,285,027 | 1,866,101 | 4,158,032 | (649,066) | (90,040) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 224,742 | 224,742 | ||||||||||
Other comprehensive income (loss) | 75,351 | 75,351 | ||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements (in shares) | 38,073 | |||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 10,146 | 10,146 | ||||||||||
Repurchase of common stock pursuant to various stock compensation plans and agreements and Stock Repurchase Plan (in shares) | (3,604) | |||||||||||
Repurchase of common stock pursuant to various stock compensation plans and agreements and Stock Repurchase Plan | (271) | (271) | ||||||||||
Cash dividends on common stock | (47,447) | (47,447) | ||||||||||
Ending balance at Jun. 30, 2021 | 5,547,548 | 1,876,247 | 4,335,327 | (649,337) | (14,689) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance (in shares) | 141,877,505 | |||||||||||
Beginning balance (in shares) | 141,907,954 | |||||||||||
Beginning balance at Dec. 31, 2021 | 5,837,218 | 1,893,725 | 4,683,659 | (649,785) | (90,381) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 495,981 | 495,981 | ||||||||||
Other comprehensive income (loss) | (510,267) | (510,267) | ||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements (in shares) | 639,847 | |||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 20,507 | 20,507 | ||||||||||
Repurchase of common stock pursuant to various stock compensation plans and agreements and Stock Repurchase Plan (in shares) | (244,895) | (1,385,517) | ||||||||||
Repurchase of common stock pursuant to various stock compensation plans and agreements and Stock Repurchase Plan | (18,977) | $ (99,990) | (18,977) | $ (99,990) | ||||||||
Cash dividends on common stock | (114,990) | (114,990) | ||||||||||
Ending balance at Jun. 30, 2022 | 5,609,482 | 1,914,232 | 5,064,650 | (768,752) | (600,648) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance (in shares) | 142,256,520 | |||||||||||
Beginning balance at Mar. 31, 2022 | 5,703,456 | 1,903,042 | 4,863,721 | (668,382) | (394,925) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 258,329 | 258,329 | ||||||||||
Other comprehensive income (loss) | (205,723) | (205,723) | ||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements (in shares) | 51,733 | |||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 11,190 | 11,190 | ||||||||||
Repurchase of common stock pursuant to various stock compensation plans and agreements and Stock Repurchase Plan (in shares) | (5,347) | (1,385,517) | ||||||||||
Repurchase of common stock pursuant to various stock compensation plans and agreements and Stock Repurchase Plan | $ (380) | $ (99,990) | $ (380) | $ (99,990) | ||||||||
Cash dividends on common stock | (57,400) | (57,400) | ||||||||||
Ending balance at Jun. 30, 2022 | $ 5,609,482 | $ 1,914,232 | $ 5,064,650 | $ (768,752) | $ (600,648) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance (in shares) | 140,917,389 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.40 | $ 0.33 | $ 0.80 | $ 0.66 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 495,981 | $ 429,736 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 48,911 | 70,402 |
Amortization of premiums and accretion of discount, net | 21,519 | 11,310 |
Stock compensation costs | 17,009 | 16,025 |
Deferred income tax (expense) benefit | (7,554) | 2,571 |
Provision for (reversal of) credit losses | 21,500 | (15,000) |
Net gains on sales of loans | (3,839) | (3,272) |
Gains on sales of AFS debt securities | (1,306) | (824) |
Loans held-for-sale: | ||
Originations and purchases | (447) | (8,703) |
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale | 461 | 10,353 |
Proceeds from distributions received from equity method investees | 4,412 | 3,564 |
Net change in accrued interest receivable and other assets | (128,071) | (73,809) |
Net change in accrued expenses and other liabilities | 457,296 | (44,113) |
Other net operating activities | 3,182 | 5,571 |
Total adjustments | 433,073 | (25,925) |
Net cash provided by operating activities | 929,054 | 403,811 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investments in qualified affordable housing partnerships, tax credit and other investments | (49,545) | (92,780) |
Interest-bearing deposits with banks | 23,442 | (20,534) |
Resale agreements: | ||
Proceeds from paydowns and maturities | 1,162,172 | 506,353 |
Purchases | (231,463) | (1,345,537) |
AFS debt securities: | ||
Proceeds from sales | 129,181 | 164,898 |
Proceeds from repayments, maturities and redemptions | 613,244 | 877,123 |
Purchases | (767,015) | (4,015,212) |
HTM debt securities: | ||
Proceeds from repayments, maturities and redemptions | 40,072 | 0 |
Purchases | (50,000) | 0 |
Loans held-for-investment: | ||
Proceeds from sales of loans originally classified as held-for-investment | 325,813 | 248,540 |
Purchases | (541,997) | (542,839) |
Other changes in loans held-for-investment, net | (4,639,384) | (1,389,832) |
Proceeds from distributions received from equity method investees | 8,717 | 4,983 |
Other net investing activities | 1,354 | 2,388 |
Net cash used in investing activities | (3,975,409) | (5,602,449) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 1,046,046 | 7,708,661 |
Net decrease in short-term borrowings | (49) | (21,143) |
FHLB advances: | ||
Proceeds | 3,950,000 | 0 |
Repayment | (4,025,000) | (405,000) |
Repurchase agreements: | ||
Proceeds from repurchase agreements | 311,785 | 0 |
Long-term debt and lease liabilities: | ||
Repayment of long-term debt and lease liabilities | (457) | (613) |
Common stock: | ||
Repurchase of common stocks pursuant to the Stock Repurchase Program | (99,990) | 0 |
Proceeds from issuance pursuant to various stock compensation plans and agreements | 1,444 | 1,180 |
Stocks tendered for payment of withholding taxes | (18,977) | (15,254) |
Cash dividends paid | (115,623) | (95,060) |
Net cash provided by financing activities | 1,049,179 | 7,172,771 |
Effect of exchange rate changes on cash and cash equivalents | (13,706) | 5,701 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (2,010,882) | 1,979,834 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,912,935 | 4,017,971 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,902,053 | 5,997,805 |
Cash paid during the period for: | ||
Interest | 45,057 | 52,228 |
Income taxes, net | 188,510 | 114,202 |
Noncash investing and financing activities: | ||
Securities transferred from AFS to HTM debt securities | 3,010,003 | 0 |
Loans transferred from held-for-investment to held-for-sale | 351,406 | 247,636 |
Loans transferred from held-for-sale to held-for-investment | 631 | 0 |
Loans transferred to other real estate owned (“OREO”) and other foreclosed assets | $ 0 | $ 13,025 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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 Quarterly Report on Form 10-Q (“this Form 10-Q”) include the accounts of East West, East West Bank and East West’s subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of June 30, 2022, East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 810, Consolidation , the Trusts are not included on the Consolidated Financial Statements. The unaudited interim Consolidated Financial Statements are presented in accordance with United States (“U.S.”) Generally Accepted Accounting Principles (“GAAP”), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. While the unaudited interim Consolidated Financial Statements reflect all adjustments that, in the opinion of management, are necessary for fair presentation, they primarily serve to update the most recently filed annual report on Form 10-K, and may not include all the information and notes necessary to constitute a complete set of financial statements. Accordingly, they 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, 2021, filed with the U.S. Securities and Exchange Commission on February 28, 2022 (the “Company’s 2021 Form 10-K”). In addition, certain items on the Consolidated Financial Statements and notes for the prior periods have been reclassified to conform to the current period presentation. The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements, income and expenses during the reporting period, and the related disclosures. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual results could be materially different from those estimates. Hence, the current period’s results of operations are not necessarily indicative of results that may be expected for any future 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. |
Current Accounting Developments
Current Accounting Developments and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Current Accounting Developments and Summary of Significant Accounting Policies | Current Accounting Developments and Summary of Significant Accounting Policies Recent Accounting Pronouncements Standard Required Date of Adoption Description Effect on Financial Statements Standards Not Yet Adopted Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) : Trouble Debt Restructurings and the Vintage Disclosures January 1, 2023 ASU 2022-02 eliminates the troubled debt restructuring (“TDRs”) accounting model for creditors and instead requires companies to apply the loan refinancing and restructuring guidance to determine whether a modification made to a borrower results in a new loan or a continuation of an existing loan. In addition, companies are no longer required to use a discounted cash flow method to measure the allowance for credit losses for certain TDRs and instead allows for the use of an expected loss approach for all loans. The guidance also introduces new disclosure requirements related to restructuring of financing receivables made to borrowers experiencing financial difficulty, and amends vintage disclosures to require current-period gross write-off by year of origination. The guidance should be applied on a prospective basis except for amendments related to recognition and measurement of TDRs, where a modified retrospective transition method is optional. The Company does not expect the adoption of this guidance to have a material impact on the Company’s Consolidated Financial Statements. The Company expects to adopt ASU 2022-02 on January 1, 2023. Significant Accounting Policies Update During the first quarter of 2022, the Company transferred $3.01 billion in fair value of debt securities from AFS to HTM. Transfer between Categories of Debt Securities — Upon transfer of a debt security from the AFS to HTM category, the security’s new amortized cost is reset to fair value, reduced by any previous write-offs but excluding any allowance for credit losses. Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income over the remaining life of the securities as effective yield adjustments, in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. For transfers of securities from the AFS to HTM category, any allowance for credit losses that was previously recorded under the AFS model is reversed and an allowance for credit losses is subsequently recorded under the HTM debt security model. The reversal and re-establishment of the allowance for credit losses are recorded in the provision for credit losses. Held-to-Maturity Debt Securities — Debt securities that the Company has the intent and ability to hold until maturity are classified as HTM and are carried at amortized cost, net of allowance for credit losses. HTM debt securities are generally placed on nonaccrual status using factors similar to those described for loans. The amortized cost of the Company’s HTM debt securities excludes accrued interest, which is included in Other assets on the Consolidated Balance Sheet. The Company has made an accounting policy election not to recognize an allowance for credit losses for accrued interest receivables on HTM debt securities, as the Company reverses any accrued interest against interest income if a debt security is placed on nonaccrual status. Any cash collected on nonaccrual HTM securities is applied to reduce the security’s amortized cost basis and not as interest income. Generally, the Company returns an HTM security to accrual status when all delinquent interest and principal become current under the contractual terms of the security, and the collectability of remaining principal and interest is no longer doubtful. Allowance for Credit Losses on Held-to-Maturity Debt Securities — For each major HTM debt security type, the allowance for credit losses is estimated collectively for groups of securities with similar risk characteristics. For securities that do not share similar risk characteristics, the losses are estimated individually. Examples of securities for which the Company applies a zero credit loss assumption include debt securities that are either guaranteed or issued by the U.S. government or government-sponsored enterprises, are highly rated by nationally recognized statistical rating organizations (“NRSROs”), and have a long history of no credit losses. Any expected credit loss is recorded through the allowance for credit losses on HTM debt securities and deducted from the amortized cost basis of the security, so that the balance sheet reflects the net amount the Company expects to collect. |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
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 the price that would be 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 described 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 prices derived from 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 inputs to the valuation methodology used are observable or unobservable, and the significance of those inputs in the fair value 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. 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 fair value hierarchy. Available-for-Sale Debt Securities — The fair value of AFS debt securities is generally determined by independent external pricing service providers who have experience in valuing these securities or by taking the average quoted market prices obtained from independent external brokers. The valuations provided by the third-party pricing service providers are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, prepayment expectations and reference data obtained from market research publications. Inputs used by the third-party pricing service providers in valuing collateralized mortgage obligations and other securitization structures also include new issue data, monthly payment information, whole loan collateral performance, tranche evaluation and “To Be Announced” prices. In valuing securities issued by state and political subdivisions, inputs used by third-party pricing service providers also include material event notices. On a monthly basis, the Company validates the valuations provided by third-party pricing service providers to ensure that the fair value determination is consistent with the applicable accounting guidance and the financial instruments are properly classified in the fair value hierarchy. To perform this validation, the Company evaluates the fair values of securities by comparing the fair values provided by the third-party pricing service providers to prices from other available independent sources for the same securities. When significant variances in prices are identified, the Company further compares inputs used by different sources to ascertain the reliability of these sources. On a quarterly basis, the Company reviews the valuation inputs and methodology for each security category furnished by third-party pricing service providers. When available, the Company uses quoted market prices to determine the fair value of AFS debt securities that are classified as Level 1. Level 1 AFS debt securities consist of U.S. Treasury securities. When pricing is unavailable from third-party pricing service providers for certain securities, the Company requests market quotes from various independent external brokers and utilizes the average quoted market prices. In addition, the Company obtains market quotes from other official published sources. As these valuations are based on observable inputs in the current marketplace, they are classified as Level 2. The Company periodically communicates with the independent external brokers to validate their pricing methodology. Information such as pricing sources, pricing assumptions, data inputs and valuation techniques are reviewed periodically. Equity Securities — Equity securities consisted of mutual funds as of both June 30, 2022 and December 31, 2021. The Company invested in these mutual funds for Community Reinvestment Act (“CRA”) purposes. 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 Contracts — The Company enters into interest rate swap and option contracts that are not designated as hedging instruments with its borrowers to lock in attractive intermediate and long-term interest rates, resulting in the customer obtaining a synthetic fixed-rate loan. To economically hedge against the interest rate risks in the products offered to its customers, the Company enters into mirrored offsetting interest rate contracts with third-party financial institutions. The Company also enters into interest rate swap or interest rate collar contracts with institutional counterparties to hedge against certain variable interest rate borrowings and variable interest rate loans. These interest rate contracts with institutional counterparties are designated as cash flow hedges. 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, Fair Value Measurement , the Company incorporates credit valuation adjustments to appropriately reflect both its own 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 model-derived credit spreads, which are Level 3 inputs. Considering the observable nature of all other significant inputs utilized, the Company classifies these derivative instruments as Level 2. Foreign Exchange Contracts — The Company enters into foreign exchange contracts to accommodate the business needs of its customers. For a majority of the foreign exchange contracts entered with its customers, the Company entered into offsetting foreign exchange contracts with third-party financial institutions to manage its exposure. The Company also utilizes foreign exchange contracts that are not designated as hedging instruments to mitigate the economic effect of fluctuations in certain foreign currency on-balance sheet assets and liabilities, primarily foreign currency denominated deposits that it offers to its customers. The fair value of foreign exchange contracts 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 is classified as Level 2. As of June 30, 2022 and December 31, 2021, the Bank held foreign currency non-deliverable forward contracts to hedge its net investment in its China subsidiary, East West Bank (China) Limited, a non-U.S. dollar (“USD”) functional currency subsidiary in China. These foreign currency non-deliverable forward contracts were designated as net investment hedges. The fair value of foreign currency non-deliverable forward contracts is determined by comparing the contracted foreign exchange rate to the current market foreign exchange rate. Key inputs of the current market exchange rate include spot rates and forward rates of the contractual currencies. Foreign exchange 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 Contracts — The Company may periodically enter into credit risk participation agreements (“RPAs”) to manage the credit exposure on interest rate contracts associated with the syndicated loans. The Company may enter into protection sold or protection purchased RPAs with institutional counterparties. 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. Since the majority of the inputs used to value the RPAs are observable, RPAs are classified as Level 2. Equity Contracts — As part of the loan origination process, the Company may obtain warrants to purchase preferred and/or common stock of the borrowers, which are mainly in the technology and life sciences sectors. As of June 30, 2022 and December 31, 2021, the warrants included on the Consolidated Financial Statements were from both public and private companies. The Company values 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 Company applies proxy volatilities based on the industry sectors of the private companies. The model values are then adjusted for a general lack of liquidity due to the private nature of the underlying companies. Since both option volatility and liquidity discount assumptions are subject to management’s judgment, measurement uncertainty is inherent in the valuation of private company warrants. 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. On a quarterly basis, the changes in the fair value of warrants from private companies are reviewed for reasonableness, and a measurement of uncertainty analysis on the option volatility and liquidity discount assumptions is performed. Commodity Contracts — The Company enters into energy commodity contracts consisting of swaps and options with its oil and gas loan customers, which allow them to hedge against the risk of fluctuation in energy commodity prices. The fair value of the commodity option contracts is determined using the Black-Scholes model and assumptions that include expectations of future commodity price and volatility. The future commodity contract price is derived from observable inputs such as the market price of the commodity. Commodity swaps are structured as an exchange of fixed cash flows for floating cash flows. The fair value of the commodity 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) based on the market prices of the commodity. The fixed cash flows are predetermined based on the known volumes and fixed price as specified in the swap agreement. The floating cash flows are correlated with the change of forward commodity prices, which is derived from market corroborated futures settlement prices. As a result, the Company classifies these derivative 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 June 30, 2022 and December 31, 2021: ($ in thousands) Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 624,686 $ — $ — $ 624,686 U.S. government agency and U.S. government-sponsored enterprise debt securities — 285,245 — 285,245 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 563,832 — 563,832 Residential mortgage-backed securities — 1,910,240 — 1,910,240 Municipal securities — 266,733 — 266,733 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 411,768 — 411,768 Residential mortgage-backed securities — 726,989 — 726,989 Corporate debt securities — 559,293 — 559,293 Foreign government bonds — 242,997 — 242,997 Asset-backed securities — 67,350 — 67,350 Collateralized loan obligations (“CLOs”) — 596,371 — 596,371 Total AFS debt securities $ 624,686 $ 5,630,818 $ — $ 6,255,504 Investments in tax credit and other investments: Equity securities $ 20,463 $ 4,312 $ — $ 24,775 Total investments in tax credit and other investments $ 20,463 $ 4,312 $ — $ 24,775 Derivative assets: Interest rate contracts $ — $ 261,326 $ — $ 261,326 Foreign exchange contracts — 42,324 — 42,324 Equity contracts — 2 357 359 Commodity contracts — 404,275 — 404,275 Gross derivative assets $ — $ 707,927 $ 357 $ 708,284 Netting adjustments (1) $ — $ (251,718) $ — $ (251,718) Net derivative assets $ — $ 456,209 $ 357 $ 456,566 Derivative liabilities: Interest rate contracts $ — $ 359,674 $ — $ 359,674 Foreign exchange contracts — 29,144 — 29,144 Credit contracts — 76 — 76 Commodity contracts — 373,675 — 373,675 Gross derivative liabilities $ — $ 762,569 $ — $ 762,569 Netting adjustments (1) $ — $ (126,414) $ — $ (126,414) Net derivative liabilities $ — $ 636,155 $ — $ 636,155 ($ in thousands) Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 1,032,681 $ — $ — $ 1,032,681 U.S. government agency and U.S. government-sponsored enterprise debt securities — 1,301,971 — 1,301,971 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 1,228,980 — 1,228,980 Residential mortgage-backed securities — 2,928,283 — 2,928,283 Municipal securities — 523,158 — 523,158 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 496,443 — 496,443 Residential mortgage-backed securities — 881,931 — 881,931 Corporate debt securities — 649,665 — 649,665 Foreign government bonds — 257,733 — 257,733 Asset-backed securities — 74,558 — 74,558 CLOs — 589,950 — 589,950 Total AFS debt securities $ 1,032,681 $ 8,932,672 $ — $ 9,965,353 Investments in tax credit and other investments: Equity securities $ 22,130 $ 4,474 $ — $ 26,604 Total investments in tax credit and other investments $ 22,130 $ 4,474 $ — $ 26,604 Derivative assets: Interest rate contracts $ — $ 240,222 $ — $ 240,222 Foreign exchange contracts — 21,033 — 21,033 Equity contracts — 5 215 220 Commodity contracts — 222,709 — 222,709 Gross derivative assets $ — $ 483,969 $ 215 $ 484,184 Netting adjustments (1) $ — $ (100,953) $ — $ (100,953) Net derivative assets $ — $ 383,016 $ 215 $ 383,231 Derivative liabilities: Interest rate contracts $ — $ 179,962 $ — $ 179,962 Foreign exchange contracts — 15,501 — 15,501 Credit contracts — 141 — 141 Commodity contracts — 194,567 — 194,567 Gross derivative liabilities $ — $ 390,171 $ — $ 390,171 Netting adjustments (1) $ — $ (232,727) $ — $ (232,727) Net derivative liabilities $ — $ 157,444 $ — $ 157,444 (1) Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information. For the three and six months ended June 30, 2022 and 2021, Level 3 fair value measurements that were measured on a recurring basis consisted of equity contracts issued by private companies. The following table provides a reconciliation of the beginning and ending balances of these equity contracts for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Equity contracts Beginning balance $ 309 $ 272 $ 215 $ 273 Total gains included in earnings (1) 48 47 51 46 Issuances — — 91 — Settlements — (96) — (96) Ending balance $ 357 $ 223 $ 357 $ 223 (1) Includes unrealized gains (losses) of $48 thousand and $(27) thousand for the three months ended June 30, 2022 and 2021, respectively, and $51 thousand and $(29) thousand for the six months ended June 30, 2022 and 2021, respectively. The realized/unrealized gains (losses) of equity contracts are recorded in Lending fees on the Consolidated Statement of Income. The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of June 30, 2022 and December 31, 2021. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Valuation Unobservable Range of Inputs Weighted- Average of Inputs (1) June 30, 2022 Derivative assets: Equity contracts $ 357 Black-Scholes option pricing model Equity volatility 46% — 70%. 61% Liquidity discount 47% 47% December 31, 2021 Derivative assets: Equity contracts $ 215 Black-Scholes option pricing model Equity volatility 44% — 54% 49% Liquidity discount 47% 47% (1) Weighted-average of inputs is calculated based on the fair value of equity contracts as of June 30, 2022 and December 31, 2021. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets measured at fair value on a nonrecurring basis include certain individually evaluated loans held-for-investment, investments in qualified affordable housing partnerships, tax credit and other investments, OREO, loans held-for-sale, and other nonperforming assets. Nonrecurring fair value adjustments result from the impairment on certain individually evaluated loans held-for-investment and investments in qualified affordable housing partnerships, tax credit and other investments, from write-downs of OREO and other nonperforming assets, or from the application of lower of cost or fair value on loans held-for-sale. Individually Evaluated Loans Held-for-Investment — Individually evaluated loans held-for-investment are classified as Level 3 assets. The following two methods are used to derive the fair value of individually evaluated loans held-for-investment: • Discounted cash flow valuation techniques that consist of developing an expected stream of cash flows over the life of the loans, and then calculating the present value of the loans by discounting the expected cash flows at a designated discount rate. • When the repayment of an individually evaluated loan is dependent on the sale of the collateral, the fair value of the loan is determined 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 an internal valuation if a third-party appraisal is not required by regulations, or unavailable. An internal valuation utilizes one or more valuation techniques such as the income, market and/or cost approaches. Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net — The Company conducts due diligence on its investments in qualified affordable housing partnerships, tax credit and other investments prior to the initial investment date and through the placed-in-service date. After these investments are either acquired or placed into service, the Company continues its periodic monitoring process to ensure book values are realizable and that there is no significant tax credit recapture risk. This monitoring process includes the quarterly review of the financial statements, the annual review of tax returns of the investment entity, the annual review of the financial statements of the guarantor (if any) and a comparison of the actual performance of the investment against the financial projections prepared at the time when the investment was made. The Company assesses its tax credit and other investments for possible other-than-temporary impairment (“OTTI”) on an annual basis or when events or circumstances suggest that the carrying amount of the investments may not be realizable. These circumstances can include, but are not limited to the following factors: • expected future cash flows that are less than the carrying amoun t of the investment; • changes in the economic, market or technological environment that could adversely affect the investee’s operations; and • other factors that raise doubt about the investee’s ability to continue as a going concern, such as negative cash flows from operations and the continuing prospects of the underlying operations of the investment. All available information is considered in assessing whether a decline in value is other-than-temporary. Generally, none of the aforementioned factors are individually conclusive and the relative importance placed on individual facts may vary depending on the situation. In accordance with ASC 323-10-35-32, Investments — Equity Method and Joint Ventures, an impairment charge would only be recognized in earnings for a decline in value that is determined to be other-than-temporary. Other Real Estate Owned — The Company’s OREO represents properties acquired through foreclosure, or through full or partial satisfaction of loans held-for-investment. These OREO properties 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. Other Nonperforming Assets — Other nonperforming assets are recorded at fair value upon the transfer from loans to foreclosed assets. Subsequently, foreclosed assets are recorded at the lower of carrying value or fair value. Fair value is based on independent market prices, appraised values of the collateral or management’s estimated recovery of the foreclosed asset. The Company records an impairment when the foreclosed asset’s fair value declines below its carrying value. The fair value measurement of other nonperforming assets is classified within one of the three levels in a valuation hierarchy based upon the observability of inputs to the valuation as of the measurement date. The following tables present the carrying amounts of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of June 30, 2022 and December 31, 2021: ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: Commercial and industrial (“C&I”) $ — $ — $ 55,015 $ 55,015 Commercial real estate (“CRE”): CRE — — 30,716 30,716 Multifamily residential — — 1,055 1,055 Total commercial — — 86,786 86,786 Consumer: Residential mortgage: Home equity lines of credit (“HELOCs”) — — 1,167 1,167 Total consumer — — 1,167 1,167 Total loans held-for-investment $ — $ — $ 87,953 $ 87,953 ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: C&I $ — $ — $ 102,349 $ 102,349 CRE: CRE — — 21,891 21,891 Total commercial — — 124,240 124,240 Consumer: Residential mortgage: HELOCs — — 2,744 2,744 Total consumer — — 2,744 2,744 Total loans held-for-investment $ — $ — $ 126,984 $ 126,984 Other nonperforming assets $ 391 $ — $ — $ 391 The following table presents the increase (decrease) in fair value of certain assets held at the end of the respective reporting periods, for which a nonrecurring fair value adjustment was recognized for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Loans held-for-investment: Commercial: C&I $ (6,054) $ (6,462) $ (14,740) $ (15,530) CRE: CRE (533) (275) 2,330 (7,336) Multifamily residential (8) 2 (8) (6) Construction and land — (209) — (280) Total commercial (6,595) (6,944) (12,418) (23,152) Consumer: Residential mortgage: Single-family residential — — — (8) HELOCs 82 3 85 (23) Other consumer — (2,491) — (2,491) Total consumer 82 (2,488) 85 (2,522) Total loans held-for-investment $ (6,513) $ (9,432) $ (12,333) $ (25,674) Investments in tax credit and other investments, net $ — $ 877 $ — $ 877 OREO $ — $ (910) $ — $ (910) Other nonperforming assets $ (6,861) $ — $ (6,861) $ (3,890) The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of June 30, 2022 and December 31, 2021: ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) June 30, 2022 Loans held-for-investment $ 36,889 Discounted cash flows Discount 4% — 6% 4% $ 19,293 Fair value of collateral Discount 15% — 77% 37% $ 31,771 Fair value of property Selling cost 8% 8% December 31, 2021 Loans held-for-investment $ 64,919 Discounted cash flows Discount 4% — 15% 7% $ 38,537 Fair value of collateral Discount 15% — 75% 41% $ 23,528 Fair value of property Selling cost 8% 8% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of June 30, 2022 and December 31, 2021. Disclosures about Fair Value of Financial Instruments The following tables present the fair value estimates for financial instruments as of June 30, 2022 and December 31, 2021, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable, restricted equity securities, at cost, and mortgage servicing rights that are included in Other assets , and accrued interest payable which is included in Accrued expenses and other liabilities . These financial assets and liabilities are measured on an amortized cost basis on the Company’s Consolidated Balance Sheet. ($ in thousands) June 30, 2022 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 1,902,053 $ 1,902,053 $ — $ — $ 1,902,053 Interest-bearing deposits with banks $ 712,709 $ — $ 712,709 $ — $ 712,709 Resale agreements $ 1,422,794 $ — $ 1,348,036 $ — $ 1,348,036 HTM debt securities $ 3,028,302 $ 486,521 $ 2,170,028 $ — $ 2,656,549 Restricted equity securities, at cost $ 77,962 $ — $ 77,962 $ — $ 77,962 Loans held-for-sale $ 28,464 $ — $ 28,464 $ — $ 28,464 Loans held-for-investment, net $ 45,938,806 $ — $ — $ 45,860,749 $ 45,860,749 Mortgage servicing rights $ 5,909 $ — $ — $ 10,349 $ 10,349 Accrued interest receivable $ 172,008 $ — $ 172,008 $ — $ 172,008 Financial liabilities: Demand, checking, savings and money market deposits $ 44,965,778 $ — $ 44,965,778 $ — $ 44,965,778 Time deposits $ 9,377,576 $ — $ 9,318,992 $ — $ 9,318,992 FHLB advances $ 174,776 $ — $ 175,207 $ — $ 175,207 Repurchase agreements $ 611,785 $ — $ 619,280 $ — $ 619,280 Long-term debt $ 147,801 $ — $ 139,206 $ — $ 139,206 Accrued interest payable $ 9,596 $ — $ 9,596 $ — $ 9,596 ($ in thousands) December 31, 2021 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 3,912,935 $ 3,912,935 $ — $ — $ 3,912,935 Interest-bearing deposits with banks $ 736,492 $ — $ 736,492 $ — $ 736,492 Resale agreements $ 2,353,503 $ — $ 2,335,901 $ — $ 2,335,901 Restricted equity securities, at cost $ 77,434 $ — $ 77,434 $ — $ 77,434 Loans held-for-sale $ 635 $ — $ 635 $ — $ 635 Loans held-for-investment, net $ 41,152,202 $ — $ — $ 41,199,599 $ 41,199,599 Mortgage servicing rights $ 5,706 $ — $ — $ 9,104 $ 9,104 Accrued interest receivable $ 159,833 $ — $ 159,833 $ — $ 159,833 Financial liabilities: Demand, checking, savings and money market deposits $ 45,388,550 $ — $ 45,388,550 $ — $ 45,388,550 Time deposits $ 7,961,982 $ — $ 7,966,116 $ — $ 7,966,116 FHLB advances $ 249,331 $ — $ 250,372 $ — $ 250,372 Repurchase agreements $ 300,000 $ — $ 310,525 $ — $ 310,525 Long-term debt $ 147,658 $ — $ 151,020 $ — $ 151,020 Accrued interest payable $ 11,435 $ — $ 11,435 $ — $ 11,435 |
Assets Purchased under Resale A
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements | 6 Months Ended |
Jun. 30, 2022 | |
RESALE AND REPURCHASE AGREEMENTS [Abstract] | |
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements | Assets Purchased under Resale Agreements and Sold under Repurchase Agreements Assets Purchased under Resale Agreements In the resale agreements, the Company is exposed to credit risk for both the counterparties and the underlying collateral. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with the counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. It is also the Company’s policy to take possession, where possible, of the assets underlying resale agreements. As a result of the Company’s credit risk mitigation practices with respect to resale agreements as described above, the Company did not hold any reserves for credit impairment with respect to these agreements as of both June 30, 2022 and December 31, 2021. Securities Purchased under Resale Agreements — Total securities purchased under resale agreements were $1.13 billion as of June 30, 2022, and $1.33 billion as of December 31, 2021. The weighted-average yields were 1.96% and 1.54% for the three months ended June 30, 2022 and 2021, respectively; and 1.79% and 1.55% for the six months ended June 30, 2022 and 2021, respectively. Loans Purchased under Resale Agreements — Total loans purchased under resale agreements were $289.8 million as of June 30, 2022, and $1.02 billion as of December 31, 2021. The weighted-average yields were 2.47% and 1.47% for the three months ended June 30, 2022 and 2021, respectively; and 1.91% and 1.64% for the six months ended June 30, 2022 and 2021, respectively. Assets Sold under Repurchase Agreements — As of June 30, 2022, securities sold under the repurchase agreements consisted of U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, and U.S. Treasury securities. Gross repurchase agreements were $611.8 million as of June 30, 2022, and $300.0 million as of December 31, 2021. The weighted-average interest rates were 2.70% and 2.63% for the three months ended June 30, 2022 and 2021, respectively; and 2.66% and 2.65% for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, $311.8 million and $300.0 million of the securities sold under repurchase agreements will mature in 2022 and 2023, respectively. Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that, in the event of default by the counterparty, provide the Company the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting Repurchase and Reverse Repurchase Agreements . Collateral received includes securities and loans that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Securities received or pledged as collateral in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and are usually delivered to and held by the third-party trustees. The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Assets Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Received Resale agreements $ 1,422,794 $ — $ 1,422,794 $ (1,336,962) (1) $ 85,832 Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Pledged Repurchase agreements $ 611,785 $ — $ 611,785 $ (611,785) (2) $ — ($ in thousands) December 31, 2021 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Net Collateral Received Resale agreements $ 2,353,503 $ — $ 2,353,503 $ (2,327,687) (1) $ 25,816 Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Pledged Repurchase agreements $ 300,000 $ — $ 300,000 $ (300,000) (2) $ — (1) Represents the fair value of assets the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. (2) Represents the fair value of assets the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability due to each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. In addition to the amounts included in the tables above, the Company also has balance sheet netting related to derivatives. Refer to Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2022 | |
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 AFS and HTM debt securities as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 676,320 $ — $ (51,634) $ 624,686 U.S. government agency and U.S. government-sponsored enterprise debt securities 324,463 — (39,218) 285,245 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 614,135 125 (50,428) 563,832 Residential mortgage-backed securities 2,097,339 193 (187,292) 1,910,240 Municipal securities 306,419 22 (39,708) 266,733 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 451,200 247 (39,679) 411,768 Residential mortgage-backed securities 808,012 — (81,023) 726,989 Corporate debt securities 673,502 105 (114,314) 559,293 Foreign government bonds 253,118 648 (10,769) 242,997 Asset-backed securities 69,764 — (2,414) 67,350 CLOs 617,250 — (20,879) 596,371 Total AFS debt securities 6,891,522 1,340 (637,358) 6,255,504 HTM debt securities: U.S. Treasury securities 521,352 — (34,831) 486,521 U.S. government agency and U.S. government-sponsored enterprise debt securities 997,369 — (144,291) 853,078 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 512,391 — (62,563) 449,828 Residential mortgage-backed securities 807,111 — (96,637) 710,474 Municipal securities 190,079 — (33,431) 156,648 Total HTM debt securities 3,028,302 — (371,753) 2,656,549 Total debt securities $ 9,919,824 $ 1,340 $ (1,009,111) $ 8,912,053 ($ in thousands) December 31, 2021 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 1,049,238 $ 130 $ (16,687) $ 1,032,681 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,333,984 2,697 (34,710) 1,301,971 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 1,242,043 15,791 (28,854) 1,228,980 Residential mortgage-backed securities 2,968,789 8,629 (49,135) 2,928,283 Municipal securities 519,381 10,065 (6,288) 523,158 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 498,920 3,000 (5,477) 496,443 Residential mortgage-backed securities 889,937 971 (8,977) 881,931 Corporate debt securities 657,516 8,738 (16,589) 649,665 Foreign government bonds 260,447 767 (3,481) 257,733 Asset-backed securities 74,674 185 (301) 74,558 CLOs 592,250 52 (2,352) 589,950 Total AFS debt securities $ 10,087,179 $ 51,025 $ (172,851) $ 9,965,353 During the first quarter of 2022, the Company transferred $3.01 billion in fair value of debt securities from AFS to HTM. At the time of the transfer, $113.0 million of unrealized losses, net of tax, was retained in AOCI. As of June 30, 2022 and December 31, 2021, the amortized cost of debt securities excluded accrued interest receivables of $34.9 million and $33.1 million, respectively, which are included in Other assets on the Consolidated Balance Sheet. For the Company’s accounting policy related to debt securities’ accrued interest receivable, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in the Company’s 2021 Form 10-K and Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10-Q. Unrealized Losses of Available-for-Sale Debt Securities The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of June 30, 2022 and December 31, 2021. ($ in thousands) June 30, 2022 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross AFS debt securities: U.S. Treasury securities $ 466,095 $ (32,524) $ 158,591 $ (19,110) $ 624,686 $ (51,634) U.S. government agency and U.S. government sponsored enterprise debt securities 249,274 (35,689) 35,971 (3,529) 285,245 (39,218) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 440,235 (34,101) 110,670 (16,327) 550,905 (50,428) Residential mortgage-backed securities 1,433,558 (122,567) 463,552 (64,725) 1,897,110 (187,292) Municipal securities 265,197 (39,708) — — 265,197 (39,708) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 335,199 (28,436) 65,175 (11,243) 400,374 (39,679) Residential mortgage-backed securities 616,819 (67,098) 110,170 (13,925) 726,989 (81,023) Corporate debt securities 295,000 (35,503) 236,189 (78,811) 531,189 (114,314) Foreign government bonds 18,887 (165) 67,798 (10,604) 86,685 (10,769) Asset-backed securities 57,469 (1,888) 9,881 (526) 67,350 (2,414) CLOs 312,368 (10,882) 284,003 (9,997) 596,371 (20,879) Total AFS debt securities $ 4,490,101 $ (408,561) $ 1,542,000 $ (228,797) $ 6,032,101 $ (637,358) ($ in thousands) December 31, 2021 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross AFS debt securities: U.S. Treasury securities $ 935,776 $ (14,689) $ 47,881 $ (1,998) $ 983,657 $ (16,687) U.S. government agency and U.S. government-sponsored enterprise debt securities 773,647 (18,000) 402,907 (16,710) 1,176,554 (34,710) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 440,734 (13,589) 257,745 (15,265) 698,479 (28,854) Residential mortgage-backed securities 2,138,542 (37,691) 330,522 (11,444) 2,469,064 (49,135) Municipal securities 177,065 (5,682) 17,003 (606) 194,068 (6,288) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 301,925 (4,158) 40,013 (1,319) 341,938 (5,477) Residential mortgage-backed securities 707,792 (8,966) 6,431 (11) 714,223 (8,977) Corporate debt securities 183,916 (3,084) 251,494 (13,505) 435,410 (16,589) Foreign government bonds 27,097 (5) 133,279 (3,476) 160,376 (3,481) Asset-backed securities 24,885 (301) — — 24,885 (301) CLOs 221,586 (64) 291,712 (2,288) 513,298 (2,352) Total AFS debt securities $ 5,932,965 $ (106,229) $ 1,778,987 $ (66,622) $ 7,711,952 $ (172,851) As of June 30, 2022, the Company had a total of 531 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting primarily of 244 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 100 non-agency mortgage-backed securities, and 63 corporate debt securities. In comparison, as of December 31, 2021, the Company had a total of 431 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting primarily of 180 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 50 U.S. government agency and U.S. government-sponsored agency debt securities, 21 U.S. Treasury securities, and 30 corporate debt securities. Allowance for Credit Losses on Available-for-Sale Debt Securities Each reporting period, the Company assesses each AFS debt security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in the Company’s 2021 Form 10-K. The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate movement and widening of liquidity and/or credit spreads. U.S. Treasury, U.S. government agency, U.S. government-sponsored agency, and U.S. government-sponsored enterprise mortgage-backed securities, are issued, guaranteed, or otherwise supported by the U.S. government and have a zero credit loss assumption. The other securities that were in an unrealized loss position as of June 30, 2022 were mainly comprised of the following: • Non-agency mortgage-backed securities — The market value decline as of June 30, 2022 was primarily due to interest rate movement and spreads widening. Since these securities are rated investment grade by NRSROs, or have high priority in the cash flow waterfall within the securitization structure, and the contractual payments have historically been on time, the Company believes the risk of credit losses on these securities is low. • Corporate debt securities — The market value decline as of June 30, 2022 was primarily due to interest rate movement and spreads widening. Since credit profiles of these securities are strong (rated investment grade by NRSROs) and the contractual payments from these bonds have been and are expected to be received on time, the Company believes that the risk of credit losses on these securities is low. As of June 30, 2022 and December 31, 2021, the Company had the intent to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company will not have to sell these securities before the recovery of their amortized cost. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, there was no allowance for credit losses as of June 30, 2022 and December 31, 2021 provided against these securities. In addition, there was no provision for credit losses recognized for the three and six months ended June 30, 2022 and 2021. If a credit loss had been identified, the Company would record an impairment through the allowance for credit losses with a corresponding Provision for credit losses on the Consolidated Statement of Income. Allowance for Credit Losses on Held-to-Maturity Debt Securities The Company separately evaluates its HTM debt securities for any credit losses using an expected loss model, similar to the methodology used for loans. Any expected credit loss is recorded through the allowance for credit losses and is deducted from the amortized cost basis. The net amount the Company expects to collect is reflected on the Consolidated Balance Sheet. The Company monitors the credit quality of the HTM debt securities using external credit ratings. As of June 30, 2022, all HTM securities were rated investment grade by NRSROs and issued, guaranteed, or supported by U.S. government entities and agencies. Accordingly, the Company applied a zero credit loss assumption and no allowance for credit losses was recorded as of June 30, 2022. Overall, the Company believes that the credit support levels of the debt securities are strong and, based on current assessments and macroeconomic forecasts, expects that full contractual cash flows will be received. For more information on the Company’s credit loss methodology, refer to Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10-Q. Realized Gains and Losses The following table presents the gross realized gains and tax expense related to the sales of AFS debt securities for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gross realized gains $ 28 $ 632 $ 1,306 $ 824 Related tax expense $ 8 $ 187 $ 386 $ 244 Contractual Maturities of Available-for-Sale and Held-to-Maturity Debt Securities The following tables present the contractual maturities, amortized cost, fair value and weighted average yields of AFS and HTM debt securities as of June 30, 2022. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties. ($ in thousands) Within One Year After One Year through Five Years After Five Years through Ten Years After Ten Years Total AFS debt securities: U.S. Treasury securities Amortized cost $ — $ 576,626 $ 99,694 $ — $ 676,320 Fair value — 536,698 87,988 — 624,686 Weighted-average yield (1) — % 1.28 % 0.74 % — % 1.20 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost — 29,193 125,001 170,269 324,463 Fair value — 27,700 110,199 147,346 285,245 Weighted-average yield (1) — % 1.62 % 1.16 % 2.09 % 1.69 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Amortized cost — 13,289 192,287 2,505,898 2,711,474 Fair value — 13,205 182,832 2,278,035 2,474,072 Weighted-average yield (1) — % 3.11 % 2.69 % 2.11 % 2.15 % Municipal securities Amortized cost — 39,712 6,498 260,209 306,419 Fair value — 37,800 5,758 223,175 266,733 Weighted-average yield (1) (2) — % 2.47 % 1.79 % 2.23 % 2.25 % Non-agency mortgage-backed securities Amortized cost 10,019 196,136 40,404 1,012,653 1,259,212 Fair value 9,894 189,963 39,224 899,676 1,138,757 Weighted-average yield (1) 4.47 % 3.56 % 1.19 % 2.23 % 2.42 % Corporate debt securities Amortized cost 10,000 — 334,502 329,000 673,502 Fair value 9,847 — 309,395 240,051 559,293 Weighted average yield (1) 3.26 % — % 3.59 % 1.98 % 2.80 % Foreign government bonds Amortized cost 108,712 44,406 50,000 50,000 253,118 Fair value 108,660 44,832 50,081 39,424 242,997 Weighted-average yield (1) 1.82 % 3.01 % 0.55 % 1.50 % 1.71 % Asset-backed securities: Amortized cost — — — 69,764 69,764 Fair value — — — 67,350 67,350 Weighted-average yield (1) — % — % — % 2.74 % 2.74 % CLOs Amortized cost — — — 617,250 617,250 Fair value — — — 596,371 596,371 Weighted average yield (1) — % — % — % 2.22 % 2.22 % Total AFS debt securities Amortized cost $ 128,731 $ 899,362 $ 848,386 $ 5,015,043 $ 6,891,522 Fair value $ 128,401 $ 850,198 $ 785,477 $ 4,491,428 $ 6,255,504 Weighted-average yield (1) 2.14 % 1.95 % 2.39 % 2.15 % 2.15 % ($ in thousands) Within One Year After One Year through Five Years After Five Years through Ten Years After Ten Years Total HTM debt securities: U.S. Treasury securities Amortized cost $ — $ 166,856 $ 354,496 $ — $ 521,352 Fair value — 156,200 330,321 — 486,521 Weighted-average yield (1) — % 0.90 % 1.12 % — % 1.05 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost — — 213,101 784,268 997,369 Fair value — — 193,357 659,721 853,078 Weighted-average yield (1) — % — % 2.03 % 1.86 % 1.90 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities Amortized cost — — 87,264 1,232,238 1,319,502 Fair value — — 78,993 1,081,309 1,160,302 Weighted-average yield (1) — % — % 1.60 % 1.59 % 1.59 % Municipal securities Amortized cost — — — 190,079 190,079 Fair value — — — 156,648 156,648 Weighted-average yield (1) (2) — % — % — % 1.97 % 1.97 % Total HTM debt securities Amortized cost $ — $ 166,856 $ 654,861 $ 2,206,585 $ 3,028,302 Fair value $ — $ 156,200 $ 602,671 $ 1,897,678 $ 2,656,549 Weighted-average yield (1) — % 0.90 % 1.48 % 1.72 % 1.62 % (1) Weighted-average yields are computed based on amortized cost balances. (2) Yields on tax-exempt securities are not presented on a tax-equivalent basis. As of June 30, 2022 and December 31, 2021, AFS and HTM debt securities with carrying valu es of $1.29 billion and $803.9 million, respectively, were pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law. Restricted Equity Securities The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Federal Reserve Bank of San Francisco (“FRBSF”) stock $ 60,712 $ 60,184 FHLB stock 17,250 17,250 Total restricted equity securities $ 77,962 $ 77,434 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses derivatives to manage exposure to market risk, primarily interest rate or foreign currency risk, as well as to assist customers with their risk management objectives. The Company’s goal is to manage interest rate sensitivity and volatility to mitigate the effect of interest rate changes on 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 Bank’s investment in 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 serve as economic hedges. For additional information on the Company’s derivatives and hedging activities, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Derivatives to the Consolidated Financial Statements of the Company’s 2021 Form 10-K. The following table presents the notional amounts and gross fair values of the Company’s derivatives, as well as the balance sheet netting adjustments on an aggregate basis as of June 30, 2022 and December 31, 2021. The derivative assets and liabilities are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after applicable variation margin payments with central clearing organizations have been applied as settlement. Total derivative assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of June 30, 2022 and December 31, 2021. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet. ($ in thousands) June 30, 2022 December 31, 2021 Notional Fair Value Notional Fair Value Derivative Derivative Derivative Derivative Derivatives designated as hedging instruments: Cash flow hedges: Interest rate contracts $ 1,525,000 $ 586 $ 96 $ 275,000 $ — $ 57 Net investment hedges: Foreign exchange contracts 84,832 2,765 — 86,531 — 225 Total derivatives designated as hedging instruments $ 1,609,832 $ 3,351 $ 96 $ 361,531 $ — $ 282 Derivatives not designated as hedging instruments: Interest rate contracts $ 17,570,112 $ 260,740 $ 359,578 $ 17,575,420 $ 240,222 $ 179,905 Foreign exchange contracts 2,654,194 39,559 29,144 1,874,681 21,033 15,276 Credit contracts 121,784 — 76 72,560 — 141 Equity contracts — (1) 359 — — (1) 220 — Commodity contracts — (2) 404,275 373,675 — (2) 222,709 194,567 Total derivatives not designated as hedging instruments $ 20,346,090 $ 704,933 $ 762,473 $ 19,522,661 $ 484,184 $ 389,889 Gross derivative assets/liabilities $ 708,284 $ 762,569 $ 484,184 $ 390,171 Less: Master netting agreements (126,414) (126,414) (58,679) (58,679) Less: Cash collateral received/paid (125,304) — (42,274) (174,048) Net derivative assets/liabilities $ 456,566 $ 636,155 $ 383,231 $ 157,444 (1) The Company held equity contracts in one public company and 13 private companies as of June 30, 2022. In comparison, the Company held equity contracts in one public company and 12 private companies as of December 31, 2021. (2) The notional amount of the Company’s commodity contracts entered with its customers totaled 8,211 thousand barrels of crude oil and 83,113 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2022. In comparison, the notional amount of the Company’s commodity contracts entered with its customers totaled 7,519 thousand barrels of crude oil and 83,274 thousand MMBTUs of natural gas as of December 31, 2021. The Company simultaneously entered into the offsetting commodity contracts with mirrored terms with third-party financial institutions. Derivatives Designated as Hedging Instruments Cash Flow Hedges — In 2020, the Company entered into $275.0 million in total notional amounts of interest rate swaps that were designated as cash flow hedges to limit the exposure to the variability in interest payments on certain floating rate borrowings. During the six months ended June 30, 2022, the Company entered into $1.00 billion in notional amounts of interest rate swaps and $250.0 million in notional amounts of interest rate collars. These derivative instruments were designated as cash flow hedges to limit the exposure to the variability in interest receipts on certain variable-rate CRE loans. Changes in the fair values of cash flow hedges are recognized in AOCI and reclassified to earnings in the same period when the hedged cash flows impact earnings. Reclassified gains and losses on these interest rate contracts are recorded either in the same line item as the interest payments of the hedged long-term borrowings within Interest expense, or in the same line items as the interest receipts of the hedged variable-rate CRE loans within Interest and dividend income in the Consolidated Statements of Income. Considering the interest rates, yield curve and notional amounts as of June 30, 2022, the Company expected to reclassify an estimated $11.3 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI into earnings during the next 12 months. The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and six months ended June 30, 2022 and 2021. The after-tax impact of cash flow hedges on AOCI is discussed in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-Q. ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Losses) gains recognized in AOCI: Interest rate contracts $ (7,837) $ (106) $ (40,446) $ 320 Gains (losses) reclassified from AOCI into earnings: Interest expense $ 308 $ (201) $ 135 $ (378) Interest income 812 — 3,085 — Total $ 1,120 $ (201) $ 3,220 $ (378) Net Investment Hedges — ASC 830-20, Foreign Currency Matters — Foreign Currency Transactions and ASC 815, Derivatives and Hedging , allow hedging of the foreign currency risk of a net investment in a foreign operation. The Company enters into foreign currency forward contracts to hedge a portion of the Bank’s investment in East West Bank (China) Limited, a non-USD functional currency subsidiary in China. The hedging instruments designated as net investment hedges involve hedging the risk of changes in the USD equivalent value of a designated monetary amount of the Bank’s net investment in East West Bank (China) Limited, against the risk of adverse changes in the foreign currency exchange rate of the Chinese Renminbi (“RMB”). The Company may de-designate the net investment hedges when the Company expects the hedge will cease to be highly effective. The following table presents the after-tax gains (losses) recognized in AOCI on net investment hedges for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gains (losses) recognized in AOCI $ 2,319 $ (1,643) $ 1,200 $ (1,543) Derivatives Not Designated as Hedging Instruments Interest Rate Contracts — The Company enters into interest rate contracts, which include interest rate swaps and options with its customers to allow the customers 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 offsetting interest rate contracts with third-party financial institutions, including central clearing organizations. The following tables present the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Purchased options $ — $ — $ — Purchased options $ 1,513,842 $ 20,933 $ — Written options 1,481,552 — 19,760 Written options 32,290 — 1,076 Sold collars and corridors 187,168 9 5,040 Collars and corridors 187,168 5,071 9 Swaps 7,069,901 8,482 326,853 Swaps 7,098,191 226,245 6,840 Total $ 8,738,621 $ 8,491 $ 351,653 Total $ 8,831,491 $ 252,249 $ 7,925 ($ in thousands) December 31, 2021 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Written options $ 1,118,074 $ — $ 2,148 Purchased options $ 1,118,074 $ 2,159 $ — Sold collars and corridors 194,181 1,272 642 Collars and corridors 194,181 646 1,275 Swaps 7,460,836 211,727 39,650 Swaps 7,490,074 24,418 136,190 Total $ 8,773,091 $ 212,999 $ 42,440 Total $ 8,802,329 $ 27,223 $ 137,465 Included in the total notional amount of $8.83 billion of interest rate contracts entered into with financial counterparties as of June 30, 2022, was a notional amount of $2.24 billion of interest rate swaps that cleared through London Clearing House (“LCH”). Applying variation margin payments as settlement to LCH cleared derivative transactions resulted in a reduction in derivative asset fair value of $113.2 million and a reduction in liability fair value of $2.2 million as of June 30, 2022. In comparison, included in the total notional amount of $8.80 billion of interest rate contracts entered into with financial counterparties as of December 31, 2021, was a notional amount of $2.79 billion of interest rate swaps that cleared through LCH. Applying variation margin payments as settlement to LCH cleared derivative transactions resulted in a reduction in derivative asset fair values of $18.1 million and a reduction in liability fair values of $79.9 million as of December 31, 2021. Foreign Exchange Contracts — The Company enters into foreign exchange contracts with its customers, consisting of forward, spot, swap and option contracts to accommodate the business needs of its customers. The Company enters into offsetting foreign exchange contracts with third-party financial institutions to manage its foreign exchange exposure with its customers, or enters into bilateral collateral and master netting agreements with certain customer counterparties to manage its credit exposure. The Company also utilizes foreign exchange contracts, which are not designated as hedging instruments, to mitigate the economic effect of currency fluctuations on certain foreign currency-denominated on-balance sheet assets and liabilities, primarily foreign currency-denominated deposits offered to its customers. A majority of the foreign exchange contracts had original maturities of one year or less as of both June 30, 2022 and December 31, 2021. The following tables present the notional amounts and the gross fair values of foreign exchange derivative contracts outstanding as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Forwards and spots $ 954,101 $ 13,188 $ 19,119 Forwards and spots $ 310,784 $ 10,139 $ 2,014 Swaps 175,373 648 864 Swaps 1,163,410 15,061 6,624 Written options 20,000 170 312 Purchased options 20,000 312 170 Collars 5,263 — 41 Collars 5,263 41 — Total $ 1,154,737 $ 14,006 $ 20,336 Total $ 1,499,457 $ 25,553 $ 8,808 ($ in thousands) December 31, 2021 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Forwards and spots $ 900,290 $ 13,688 $ 9,446 Forwards and spots $ 267,689 $ 1,564 $ 2,695 Swaps 66,474 1,034 17 Swaps 599,654 4,745 3,116 Written options 20,287 1 — Purchased options 20,287 1 2 Total $ 987,051 $ 14,723 $ 9,463 Total $ 887,630 $ 6,310 $ 5,813 Credit Contracts — The Company may periodically enter into credit RPAs with institutional counterparties to manage the credit exposure of the interest rate contracts associated with the syndicated loans. The Company may enter into protection sold or protection purchased RPAs. The purchaser of credit protection that enters into an interest rate contract with the borrower, may in turn enter into an RPA with a seller of protection, under which the seller of protection receives a fee to accept a portion of the credit risk. A seller of credit protection is required to make payments to the buyer if a borrower defaults on the related interest rate contract. Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and institutional counterparties, which is part of the normal credit review and monitoring process. The majority of the reference entities of the protection sold RPAs were investment grade as of both June 30, 2022 and December 31, 2021. Assuming the underlying borrowers referenced in the interest rate contracts defaulted as of June 30, 2022 and December 31, 2021, the maximum exposure of protection sold RPAs would be $38 thousand and $3.2 million, respectively. As of June 30, 2022 and December 31, 2021, the weighted-average remaining maturities of the outstanding protection sold RPAs were 2.6 years and 3.2 years, respectively. The notional amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument. The following table presents the notional amounts and the gross fair values of RPAs sold outstanding as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities RPAs — protection sold $ 121,784 $ — $ 76 $ 72,560 $ — $ 141 Equity Contracts — From time to time, as part of the Company’s loan origination process, the Company obtains warrants to purchase preferred and/or common stock of technology and life science companies to which it provides loans. Warrants grant the Company the right to buy a certain class of the underlying company’s equity at a certain price before expiration. The Company held warrants in one public company and 13 private companies as of June 30, 2022, and held warrants in one public company and 12 private companies as of December 31, 2021. The total fair value of the warrants held was $359 thousand and $220 thousand as of June 30, 2022 and December 31, 2021, respectively. Commodity Contracts — The Company enters into energy commodity contracts in the form of swaps and options with its commercial loan customers to allow them to hedge against the risk of energy commodity price fluctuation. To economically hedge against the risk and exposure of commodity price fluctuation in the products offered to its customers, the Company enters into offsetting commodity contracts with third-party financial institutions. The following tables present the notional amounts and fair values of the commodity derivative positions outstanding as of June 30, 2022 and December 31, 2021: ($ and units in thousands) June 30, 2022 Customer Counterparty ($ and units in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Crude oil: Crude oil: Written options 1,205 Barrels $ 1,330 $ — Purchased options 1,205 Barrels $ — $ 1,154 Collars 3,218 Barrels 70,802 817 Collars 3,223 Barrels 288 65,988 Swaps 3,788 Barrels 105,189 2,658 Swaps 5,935 Barrels 43,075 133,723 Total 8,211 $ 177,321 $ 3,475 Total 10,363 $ 43,363 $ 200,865 Natural gas: Natural gas: Collars 28,206 MMBTUs 29,062 3,815 Collars 30,122 MMBTUs 2,999 28,390 Swaps 54,907 MMBTUs 98,480 6,478 Swaps 91,869 MMBTUs 53,050 130,652 Total 83,113 $ 127,542 $ 10,293 Total 121,991 $ 56,049 $ 159,042 Total $ 304,863 $ 13,768 Total $ 99,412 $ 359,907 ($ and units in thousands) December 31, 2021 Customer Counterparty ($ and units in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Crude oil: Crude oil: Written options — Barrels $ 87 $ — Purchased options — Barrels $ — $ 81 Collars 2,837 Barrels 33,826 106 Collars 2,888 Barrels — 33,399 Swaps 4,682 Barrels 71,242 60 Swaps 7,517 Barrels 27,524 82,723 Total 7,519 $ 105,155 $ 166 Total 10,405 $ 27,524 $ 116,203 Natural gas: Natural gas: Collars 24,315 MMBTUs $ 10,903 $ 458 Collars 25,929 MMBTUs $ 1,136 $ 10,936 Swaps 58,959 MMBTUs 49,188 3,775 Swaps 109,567 MMBTUs 28,803 63,029 Total 83,274 $ 60,091 $ 4,233 Total 135,496 $ 29,939 $ 73,965 Total $ 165,246 $ 4,399 Total $ 57,463 $ 190,168 As of June 30, 2022, the notional amounts that cleared through the Chicago Mercantile Exchange (“CME”) totaled 1,100 thousand barrels of crude oil and 14,625 thousand MMBTUs of natural gas. Applying the variation margin payments as settlement to CME-cleared derivative transactions resulted in a reduction to the gross derivative asset fair value of $2.1 million and a reduction to the liability fair value of $28.9 million, respectively, as of June 30, 2022. In comparison, the notional amounts that cleared through CME totaled 1,036 thousand barrels of crude oil and 11,490 thousand MMBTUs of natural gas as of December 31, 2021. Applying the variation margin payments as settlement to CME-cleared derivative transactions resulted in a reduction to the gross derivative asset fair value of $2.2 million and a reduction to the liability fair value of $25.8 million, respectively, as of December 31, 2021. The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Classification on Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives not designated as hedging instruments: Interest rate contracts Interest rate contracts and other derivative income (loss) $ 5,984 $ (5,338) $ 13,569 $ 8,563 Foreign exchange contracts Foreign exchange income (4,557) 11,972 2,765 22,215 Credit contracts Interest rate contracts and other derivative income (loss) (9) 150 65 195 Equity contracts Lending fees 93 74 187 385 Commodity contracts Interest rate contracts and other derivative income (loss) 344 (188) 295 (19) Net gains $ 1,855 $ 6,670 $ 16,881 $ 31,339 Credit Risk-Related Contingent Features — Certain of the Company’s over-the-counter derivative contracts contain early termination provisions that may require the Company to settle any outstanding balances upon the occurrence of a specified credit risk-related event. Such event primarily relates to a downgrade in the credit rating of East West Bank to below investment grad e. As of June 30, 2022, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $31.6 million, in which $28.3 million of collateral was posted to cover these positions. In comparison, a s of December 31, 2021, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $66.8 million, in which $66.6 million of collateral was posted to cover these positions. In the event that the credit rating of East West Bank had been downgraded to below investment grade, minimal additional collateral would have been required to be posted as of June 30, 2022 and December 31, 2021. Offsetting of Derivatives The following tables present the gross derivative fair values, the balance sheet netting adjustments and the resulting net fair values recorded on the consolidated balance sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements with central counterparties, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability, after the application of netting; therefore, instances of overcollateralization are not shown: ($ in thousands) As of June 30, 2022 Gross Amounts Recognized (1) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Derivative assets $ 708,284 $ (126,414) $ (125,304) $ 456,566 $ — $ 456,566 Gross Amounts Recognized (2) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 762,569 $ (126,414) $ — $ 636,155 $ (118,694) $ 517,461 ($ in thousands) As of December 31, 2021 Gross Amounts Recognized (1) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Derivative assets $ 484,184 $ (58,679) $ (42,274) $ 383,231 $ — $ 383,231 Gross Amounts Recognized (2) Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Net Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 390,171 $ (58,679) $ (174,048) $ 157,444 $ (106,598) $ 50,846 (1) Includes $1.1 million and $587 thousand of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2022 and December 31, 2021, respectively. (2) Includes $517 thousand and $666 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2022 and December 31, 2021, respectively. (3) Gross cash collateral received under master netting arrangements or similar agreements were $141.9 million and $47.0 million as of June 30, 2022 and December 31, 2021, respectively. Of the gross cash collateral received, $125.3 million and $42.3 million were used to offset against derivative assets as of June 30, 2022 and December 31, 2021, respectively. (4) No cash collateral was pledged under master netting arrangements or similar agreements as of June 30, 2022. In comparison, cash collateral pledged under master netting arrangements or similar agreements was $176.5 million as of December 31, 2021, of which $174.0 million were used to offset against derivative liabilities as of December 31, 2021. (5) Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of noncash collateral on the consolidated balance sheet but requires the disclosure of such amounts. In addition to the amounts included in the tables above, the Company also has balance sheet netting related to the resale and repurchase agreements. Refer to Note 4 — Assets Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements in this Form 10-Q for additional information. Refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q for fair value measurement disclosures on derivatives. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses The following table presents the composition of the Company’s loans held-for-investment outstanding as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Commercial: C&I (1) $ 15,377,117 $ 14,150,608 CRE: CRE 13,566,748 12,155,047 Multifamily residential 4,443,704 3,675,605 Construction and land 515,857 346,486 Total CRE 18,526,309 16,177,138 Total commercial 33,903,426 30,327,746 Consumer: Residential mortgage: Single-family residential 10,234,473 9,093,702 HELOCs 2,280,080 2,144,821 Total residential mortgage 12,514,553 11,238,523 Other consumer 84,097 127,512 Total consumer 12,598,650 11,366,035 Total loans held-for-investment (2) $ 46,502,076 $ 41,693,781 Allowance for loan losses (563,270) (541,579) Loans held-for-investment, net (2) $ 45,938,806 $ 41,152,202 (1) Includes Paycheck Protection Program loans of $153.3 million and $534.2 million as of June 30, 2022 and December 31, 2021, respectively. (2) Includes $(56.2) million and $(50.7) million of net deferred loan fees and net unamortized premiums as of June 30, 2022 and December 31, 2021, respectively. L oans held-for-investment accrued interest receivable was $132.3 million and $107.4 million as of June 30, 2022 and December 31, 2021, respectively, and is included in Other assets on the Consolidated Balance Sheet. Interest income reversed for the three and six months ended June 30, 2022 and 2021 was insignificant. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2021 Form 10-K. The Company’s FRBSF and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $26.78 billion and $27.67 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of June 30, 2022 and December 31, 2021. Credit Quality Indicators All loans are subject to the Company’s credit review and monitoring process. For the commercial loan portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the consumer loan portfolio, payment performance or delinquency is typically the driving indicator for risk ratings. The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10: • Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions. • Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.” • Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.” • Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.” • Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.” Loan exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans. The following tables summarize the Company’s loans held-for-investment by loan portfolio segments, internal risk ratings and vintage year as of June 30, 2022 and December 31, 2021. The vintage year is the year of origination, renewal or major modification. ($ in thousands) June 30, 2022 Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans Total 2022 2021 2020 2019 2018 Prior Commercial: C&I: Pass $ 1,632,575 $ 2,948,526 $ 769,887 $ 524,311 $ 170,119 $ 270,405 $ 8,656,225 $ 28,475 $ 15,000,523 Criticized (accrual) 64,608 43,748 50,746 32,574 24,206 19,222 101,437 — 336,541 Criticized (nonaccrual) 3,242 4,129 15,356 — 5,630 11,660 36 — 40,053 Total C&I 1,700,425 2,996,403 835,989 556,885 199,955 301,287 8,757,698 28,475 15,377,117 CRE: Pass 2,638,027 2,565,665 1,815,298 1,907,721 1,598,242 2,358,965 150,983 14,498 13,049,399 Criticized (accrual) 5,023 109,974 69,751 99,541 101,188 102,333 1,455 16,808 506,073 Criticized (nonaccrual) — 4,201 — — — 7,075 — — 11,276 Subtotal CRE 2,643,050 2,679,840 1,885,049 2,007,262 1,699,430 2,468,373 152,438 31,306 13,566,748 Multifamily residential: Pass 1,091,403 967,791 687,577 591,961 371,378 661,082 13,301 — 4,384,493 Criticized (accrual) — — 714 20,454 36,577 — — 57,745 Criticized (nonaccrual) — — — — — 1,466 — — 1,466 Subtotal multifamily residential 1,091,403 967,791 687,577 592,675 391,832 699,125 13,301 — 4,443,704 Construction and land: Pass 94,071 232,421 98,608 60,928 3,332 236 — — 489,596 Criticized (accrual) — 4,405 — 21,856 — — — 26,261 Criticized (nonaccrual) — — — — — — — — — Subtotal construction and land 94,071 232,421 103,013 60,928 25,188 236 — — 515,857 Total CRE 3,828,524 3,880,052 2,675,639 2,660,865 2,116,450 3,167,734 165,739 31,306 18,526,309 Total commercial 5,528,949 6,876,455 3,511,628 3,217,750 2,316,405 3,469,021 8,923,437 59,781 33,903,426 Consumer: Residential mortgage: Single-family residential: Pass (1) 1,983,527 2,565,374 1,903,821 1,194,265 898,768 1,655,824 — — 10,201,579 Criticized (accrual) — — 2,146 1,087 2,159 1,301 — — 6,693 Criticized (nonaccrual) (1) — — 753 2,778 8,504 14,166 — — 26,201 Total single-family residential mortgage 1,983,527 2,565,374 1,906,720 1,198,130 909,431 1,671,291 — — 10,234,473 HELOCs: Pass 929 6,114 6,859 1,253 2,088 13,340 2,081,521 157,658 2,269,762 Criticized (accrual) — — — — — 2 613 615 Criticized (nonaccrual) — 1,008 815 220 463 1,640 1,692 3,865 9,703 Total HELOCs 929 7,122 7,674 1,473 2,551 14,980 2,083,215 162,136 2,280,080 Total residential mortgage 1,984,456 2,572,496 1,914,394 1,199,603 911,982 1,686,271 2,083,215 162,136 12,514,553 Other consumer: Pass 1,211 13,072 5,258 — — 15,173 49,369 — 84,083 Criticized (accrual) 3 — — — — — — — 3 Criticized (nonaccrual) — — — — — — 11 — 11 Total other consumer 1,214 13,072 5,258 — — 15,173 49,380 — 84,097 Total consumer 1,985,670 2,585,568 1,919,652 1,199,603 911,982 1,701,444 2,132,595 162,136 12,598,650 Total by Risk Rating: Pass 7,441,743 9,298,963 5,287,308 4,280,439 3,043,927 4,975,025 10,951,399 200,631 45,479,435 Criticized (accrual) 69,634 153,722 127,048 133,916 169,863 159,433 102,894 17,421 933,931 Criticized (nonaccrual) 3,242 9,338 16,924 2,998 14,597 36,007 1,739 3,865 88,710 Total $ 7,514,619 $ 9,462,023 $ 5,431,280 $ 4,417,353 $ 3,228,387 $ 5,170,465 $ 11,056,032 $ 221,917 $ 46,502,076 ($ in thousands) December 31, 2021 Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans Total 2021 2020 2019 2018 2017 Prior Commercial: C&I: Pass $ 3,911,722 $ 1,133,085 $ 629,007 $ 187,195 $ 132,392 $ 225,326 $ 7,383,485 $ 28,842 $ 13,631,054 Criticized (accrual) 85,036 117,357 72,277 51,553 15,136 4,005 115,167 — 460,531 Criticized (nonaccrual) 29,456 2,792 513 517 9,301 16,444 — — 59,023 Total C&I 4,026,214 1,253,234 701,797 239,265 156,829 245,775 7,498,652 28,842 14,150,608 CRE: Pass 2,792,193 2,090,503 2,230,520 1,863,481 1,120,682 1,727,862 128,668 6,389 11,960,298 Criticized (accrual) 71,055 3,200 9,176 21,077 24,851 55,892 — — 185,251 Criticized (nonaccrual) 4,350 — — — 4,752 396 — — 9,498 Subtotal CRE 2,867,598 2,093,703 2,239,696 1,884,558 1,150,285 1,784,150 128,668 6,389 12,155,047 Multifamily residential: Pass 1,026,295 726,772 688,453 419,319 308,087 424,947 20,524 — 3,614,397 Criticized (accrual) — — 721 22,344 7,033 30,666 — — 60,764 Criticized (nonaccrual) — — — — — 444 — — 444 Subtotal multifamily residential 1,026,295 726,772 689,174 441,663 315,120 456,057 20,524 — 3,675,605 Construction and land: Pass 122,983 103,743 90,544 3,412 — 391 — — 321,073 Criticized (accrual) 3,355 — — 22,058 — — — — 25,413 Criticized (nonaccrual) — — — — — — — — — Subtotal construction and land 126,338 103,743 90,544 25,470 — 391 — — 346,486 Total CRE 4,020,231 2,924,218 3,019,414 2,351,691 1,465,405 2,240,598 149,192 6,389 16,177,138 Total commercial 8,046,445 4,177,452 3,721,211 2,590,956 1,622,234 2,486,373 7,647,844 35,231 30,327,746 Consumer: Residential mortgage: Single-family residential: Pass (1) 2,616,958 2,108,370 1,375,929 1,079,030 763,351 1,127,516 — — 9,071,154 Criticized (accrual) — — 458 2,813 1,899 3,212 — — 8,382 Criticized (nonaccrual) (1) — — 1,751 3,889 4,295 4,231 — — 14,166 Total single-family residential mortgage 2,616,958 2,108,370 1,378,138 1,085,732 769,545 1,134,959 — — 9,093,702 HELOCs: Pass 648 3,277 4,644 1,347 3,268 11,215 1,913,478 197,414 2,135,291 Criticized (accrual) — — — — — 371 7 708 1,086 Criticized (nonaccrual) — — 52 188 3,543 973 — 3,688 8,444 Total HELOCs 648 3,277 4,696 1,535 6,811 12,559 1,913,485 201,810 2,144,821 Total residential mortgage 2,617,606 2,111,647 1,382,834 1,087,267 776,356 1,147,518 1,913,485 201,810 11,238,523 Other consumer: Pass 16,831 5,258 — — 1,741 52,147 51,481 — 127,458 Criticized (accrual) 2 — — — — — — — 2 Criticized (nonaccrual) — — — — — — 52 — 52 Total other consumer 16,833 5,258 — — 1,741 52,147 51,533 — 127,512 Total consumer 2,634,439 2,116,905 1,382,834 1,087,267 778,097 1,199,665 1,965,018 201,810 11,366,035 Total by Risk Rating: Pass 10,487,630 6,171,008 5,019,097 3,553,784 2,329,521 3,569,404 9,497,636 232,645 40,860,725 Criticized (accrual) 159,448 120,557 82,632 119,845 48,919 94,146 115,174 708 741,429 Criticized (nonaccrual) 33,806 2,792 2,316 4,594 21,891 22,488 52 3,688 91,627 Total $ 10,680,884 $ 6,294,357 $ 5,104,045 $ 3,678,223 $ 2,400,331 $ 3,686,038 $ 9,612,862 $ 237,041 $ 41,693,781 (1) As of June 30, 2022 and December 31, 2021, $1.2 million and $1.6 million, respectively, of nonaccrual loans whose payments are guaranteed by the Federal Housing Administration were classified with a “Pass” rating. Revolving loans that are converted to term loans presented in the tables above are excluded from the term loans by vintage year columns. During the three and six months ended June 30, 2022, there were no conversions of HELOC revolving loans to term loans. Two CRE revolving loans of $26.4 million were converted to term loans during the three and six months ended June 30, 2022. In comparison, HELOC revolving loans of $20.9 million and $57.6 million were converted to term loans during the three and six months ended June 30, 2021, respectively. There were no conversions of CRE revolving loans to term loans during the three months ended June 30, 2021. Two CRE revolving loans of $5.0 million were converted to term loans during the six months ended June 30, 2021. Nonaccrual and Past Due Loans Loans that are 90 or more days past due are generally placed on nonaccrual status unless the loan is well-collateralized and in the process of collection. Loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis of total loans held-for-investment as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Current Accruing Loans (1) Accruing Accruing Total Total Total Commercial: C&I $ 15,326,934 $ 10,097 $ 33 $ 10,130 $ 40,053 $ 15,377,117 CRE: CRE 13,554,820 451 201 652 11,276 13,566,748 Multifamily residential 4,441,408 830 — 830 1,466 4,443,704 Construction and land 515,857 — — — — 515,857 Total CRE 18,512,085 1,281 201 1,482 12,742 18,526,309 Total commercial 33,839,019 11,378 234 11,612 52,795 33,903,426 Consumer: Residential mortgage: Single-family residential 10,186,333 13,718 6,996 20,714 27,426 10,234,473 HELOCs 2,263,510 6,254 613 6,867 9,703 2,280,080 Total residential mortgage 12,449,843 19,972 7,609 27,581 37,129 12,514,553 Other consumer 83,988 92 6 98 11 84,097 Total consumer 12,533,831 20,064 7,615 27,679 37,140 12,598,650 Total $ 46,372,850 $ 31,442 $ 7,849 $ 39,291 $ 89,935 $ 46,502,076 ($ in thousands) December 31, 2021 Current Accruing Loans (1) Accruing Accruing Total Total Total Commercial: C&I $ 14,080,516 $ 6,983 $ 4,086 $ 11,069 $ 59,023 $ 14,150,608 CRE: CRE 12,141,827 3,722 — 3,722 9,498 12,155,047 Multifamily residential 3,669,819 5,320 22 5,342 444 3,675,605 Construction and land 346,486 — — — — 346,486 Total CRE 16,158,132 9,042 22 9,064 9,942 16,177,138 Total commercial 30,238,648 16,025 4,108 20,133 68,965 30,327,746 Consumer: Residential mortgage: Single-family residential 9,059,222 10,191 8,569 18,760 15,720 9,093,702 HELOCs 2,130,523 4,776 1,078 5,854 8,444 2,144,821 Total residential mortgage 11,189,745 14,967 9,647 24,614 24,164 11,238,523 Other consumer 127,352 99 9 108 52 127,512 Total consumer 11,317,097 15,066 9,656 24,722 24,216 11,366,035 Total $ 41,555,745 $ 31,091 $ 13,764 $ 44,855 $ 93,181 $ 41,693,781 (1) As of both June 30, 2022 and December 31, 2021, loans in payment deferral programs offered in response to the Coronavirus Disease 2019 (“COVID-19”) pandemic that are performing according to their modified terms are generally not considered delinquent, and are included in the “Current Accruing Loans” column. The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of both June 30, 2022 and December 31, 2021. Nonaccrual loans may not have an allowance for credit losses since there is no loss expectation when the loan balances are well-secured by the collateral value. ($ in thousands) June 30, 2022 December 31, 2021 Commercial: C&I $ 18,251 $ 22,967 CRE 10,956 9,102 Multifamily residential 1,055 — Total commercial 30,262 32,069 Consumer: Single-family residential 12,952 5,785 HELOCs 5,351 5,033 Total consumer 18,303 10,818 Total nonaccrual loans with no related allowance for loan losses $ 48,565 $ 42,887 Foreclosed Assets The Company acquires assets from borrowers through loan restructurings, workouts, and foreclosures. Assets acquired may include real properties (e.g., residential real estate, land, and buildings) and commercial and personal properties. The Company recognizes foreclosed assets upon receiving assets in satisfaction of a loan (e.g., taking legal title or physical possession). Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had no foreclosed assets as of June 30, 2022, compared with $10.3 million as of December 31, 2021. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of consumer real estate loans that were in the process of active or suspended foreclosure was $12.9 million and $7.3 million as of June 30, 2022 and December 31, 2021, respectively. Troubled Debt Restructurings TDRs are individually evaluated, and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulties. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not have otherwise considered. The COVID-related modifications that occurred between March 2020 and January 1, 2022, were generally not classified as TDRs due to the relief under the Coronavirus Aid, Relief, and Economic Security Act, as amended by the Consolidated Appropriations Act, 2021, and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised), and therefore are not included in the discussion below. See Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Troubled Debt Restructurings to the Consolidated Financial Statements in the Company’s 2021 Form 10-K for additional information. The following tables present the additions to TDRs for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Loans Modified as TDRs During the Three Months Ended June 30, 2022 2021 Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 2 $ 12,955 $ 12,245 $ 2,111 4 $ 20,375 $ 20,084 $ 2,162 Total 2 $ 12,955 $ 12,245 $ 2,111 4 $ 20,375 $ 20,084 $ 2,162 ($ in thousands) Loans Modified as TDRs During the Six Months Ended June 30, 2022 2021 Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 3 $ 30,134 $ 21,428 $ 10,157 5 $ 20,818 $ 20,499 $ 2,318 Total 3 $ 30,134 $ 21,428 $ 10,157 5 $ 20,818 $ 20,499 $ 2,318 (1) Includes subsequent payments after modification and reflects the balance as of June 30, 2022 and 2021. (2) Includes charge-offs and specific reserves recorded since the modification date. The following tables present the TDR post-modification outstanding balances by the primary modification type for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Modification Type During the Three Months Ended June 30, 2022 2021 Principal (1) Interest Rate Reduction Other (2) Total Principal (1) Interest Rate Reduction Other Total Commercial: C&I $ — $ — $ 12,245 $ 12,245 $ 3,373 $ 16,711 $ — $ 20,084 Total $ — $ — $ 12,245 $ 12,245 $ 3,373 $ 16,711 $ — $ 20,084 ($ in thousands) Modification Type During the Six Months Ended June 30, 2022 2021 Principal (1) Interest Rate Reduction Other (2) Total Principal (1) Interest Rate Reduction Other Total Commercial: C&I $ 9,183 $ — $ 12,245 $ 21,428 $ 3,788 $ 16,711 $ — $ 20,499 Total $ 9,183 $ — $ 12,245 $ 21,428 $ 3,788 $ 16,711 $ — $ 20,499 (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 increase in new commitment. After a loan is modified as TDR, the Company continues to monitor its performance under its most recent restructured terms. A TDR may become delinquent and result in payment default (generally 90 days past due) subsequent to restructuring. The following tables present information on loans that entered into default during the three and six months ended June 30, 2022 and 2021, that were modified as TDRs during the 12 months preceding payment default: ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2022 2021 Number of Recorded Number of Recorded Commercial: C&I 1 $ 1,055 — $ — Total 1 $ 1,055 — $ — ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2022 2021 Number of Recorded Number of Recorded Commercial: C&I 2 $ 4,305 1 $ 11,431 Total 2 $ 4,305 1 $ 11,431 As of June 30, 2022 and December 31, 2021, the remaining commitments to lend to borrowers whose terms of their outstanding owed balances were modified as TDRs were $1.9 million and $5.0 million, respectively. Allowance for Credit Losses The Company has an allowance framework under ASU 2016-13 for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The Company’s allowance for credit losses, which includes both the allowance for loan losses and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses, and periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors. The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense. The allowance for credit losses estimation involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures that share risk characteristics with other similar exposures are collectively evaluated. The collectively evaluated loans include performing risk-rated loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis. These individually assessed loans include TDR and nonaccrual loans. Allowance for Collectively Evaluated Loans The allowance for collectively evaluated loans consists of a quantitative component that assesses the different risk factors considered in our models and a qualitative component that considers risk factors external to the models. Each of these components are described below. • Quantitative Component — The Company applies quantitative methods to estimate loan losses by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios, which include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted, multiple-scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the life of loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining lives of the loans to estimate the allowance for loan losses. During the third quarter of 2021, the reasonable and supportable forecast period, key credit risk characteristics and macroeconomic variables to estimate the expected credit losses of the C&I segment were modified due to model enhancement. There were no changes to the overall model methodology. For the three and six months ended June 30, 2022, there were no changes to the reasonable and supportable forecast period and reversion to the historical loss experience method. The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment: Portfolio Segment Risk Characteristics Macroeconomic Variables C&I Age (1) , size and spread at origination, and risk rating Volatility Index (“VIX”) and BBB yield to 10-year U.S. Treasury spread (“BBB Spread”) (1) CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates Single-family residential and HELOCs FICO score, delinquency status, maturity date, collateral value, and geographic location Unemployment rate, GDP, and home price index Other consumer Historical loss experience Immaterial (2) (1) Due to the model enhancements during the third quarter of 2021, the risk characteristic related to “time-to-maturity” was changed to “age”; while macroeconomic variables related to “unemployment rate and two- and ten-year U.S. Treasury spread” were changed to “VIX and BBB Spread”. (2) Macroeconomic variables are included in the qualitative estimate. Allowance for Loan Losses for the Commercial Loan Portfolio The Company’s C&I lifetime loss rate model estimates credit losses by estimating a loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans 11 quarters, thereafter immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate. For CRE, multifamily residential, and construction and land loans, projected probabilities of default (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period. In order to estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. Allowance for Loan Losses for the Consumer Loan Portfolio For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends after the reasonable and supportable period. In order to estimate the life of a loan for the single-family residential and HELOC portfolios, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. For other consumer loans, the Company uses a loss rate approach. • Qualitative Component — The Company also considers the following qualitative factors in the determination of the collectively evaluated allowance, if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to: – Loan growth trends; – the volume and severity of past due financial assets, and the volume and severity of adversely classified financial assets; – the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices; – knowledge of a borrower’s operations; – the quality of the Company’s credit review system; – the experience, ability and depth of the Company’s management, lending associates and other relevant associates; – the effect of other external factors such as the regulatory and legal environments and changes in technology; – actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and – risk factors in certain industry sectors not captured by the quantitative models. The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period. While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk. Allowance for Individually Evaluated Loans When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual or TDR loans, the Company estimates the allowance for loan losses on an individual loan basis. The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; and (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan. • Collateral-Dependent Loans — The allowance of a collateral-dependent loan is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of June 30, 2022, collateral-dependent commercial and consumer loans totaled $38.9 million and $19.0 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $37.0 million and $14.0 million, respectively, as of December 31, 2021. The Company's commercial collateral-dependent loans were secured by real estate, and its consumer collateral-dependent loans were all residential mortgage loans, secured by the underlying real estate. As of both June 30, 2022 and December 31, 2021 , the collateral value of the properties securing the collateral-dependent loans, net of selling costs, exceeded t he recorded value of the loans. The following tables summarize the activities in the allowance for loan losses by portfolio segments for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, 2022 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 339,446 $ 147,104 $ 24,176 $ 11,016 $ 18,210 $ 3,748 $ 1,985 $ 545,685 Provision for (reversal of) credit losses on loans (a) 19,030 (6,819) 1,976 (4,338) 3,461 (339) (502) 12,469 Gross charge-offs (240) (671) (8) — — (193) (34) (1,146) Gross recoveries 6,514 631 408 4 169 4 — 7,730 Total net recoveries (charge-offs) 6,274 (40) 400 4 169 (189) (34) 6,584 Foreign currency translation adjustment (1,468) — — — — — — (1,468) Allowance for loan losses, end of period $ 363,282 $ 140,245 $ 26,552 $ 6,682 $ 21,840 $ 3,220 $ 1,449 $ 563,270 ($ in thousands) Three Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 394,084 $ 146,399 $ 27,407 $ 19,089 $ 15,839 $ 2,670 $ 2,018 $ 607,506 (Reversal of) provision for credit losses on loans (a) (22,605) 19,375 (5,385) (3,243) 609 250 2,209 (8,790) Gross charge-offs (10,572) (4,134) (113) (209) — — (32) (15,060) Gross recoveries 1,338 322 16 6 82 18 3 1,785 Total net (charge-offs) recoveries (9,234) (3,812) (97) (203) 82 18 (29) (13,275) Foreign currency translation adjustment 283 — — — — — — 283 Allowance for loan losses, end of period $ 362,528 $ 161,962 $ 21,925 $ 15,643 $ 16,530 $ 2,938 $ 4,198 $ 585,724 ($ in thousands) Six Months Ended June 30, 2022 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 338,252 $ 150,940 $ 14,400 $ 15,468 $ 17,160 $ 3,435 $ 1,924 $ 541,579 Provision for (reversal of) credit losses on loans (a) 28,292 (10,312) 11,633 (8,844) 4,387 (40) (395) 24,721 Gross charge-offs (11,428) (1,069) (9) — — (193) (80) (12,779) Gross recoveries 9,516 686 528 58 293 18 — 11,099 Total net (charge-offs) recoveries (1,912) ( |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities | 6 Months Ended |
Jun. 30, 2022 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities [Abstract] | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities | Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities The CRA encourages banks to meet the credit needs of their communities, particularly low- and moderate-income individuals and neighborhoods. The Company invests in certain affordable housing projects in the form of ownership interests in limited partnerships or limited liability companies that qualify for CRA consideration and tax credits. These entities are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the U.S. To fully utilize the available tax credits, each of these entities must meet the regulatory affordable housing requirements for a minimum 15-year compliance period. In addition to affordable housing projects, the Company also invests in small business investment companies and new market tax credit projects that qualify for CRA consideration, as well as 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, and 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 if certain criteria are met. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the amortization in Income tax expense on the Consolidated Statement of Income. The following table presents the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Investments in qualified affordable housing partnerships, net $ 319,484 $ 289,741 Accrued expenses and other liabilities — Unfunded commitments $ 178,714 $ 146,152 The following table presents additional information related to the Company’s investments in qualified affordable housing partnerships, net, for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Tax credits and other tax benefits recognized $ 12,754 $ 11,319 $ 25,584 $ 22,722 Amortization expense included in income tax expense $ 10,042 $ 7,736 $ 20,067 $ 16,448 Investments in Tax Credit and Other Investments, Net Depending on the Company’s ownership percentage in investments in tax credit and other investments, the Company applies the equity or fair value method of accounting, or the measurement alternative as elected under ASU 2016-01 for equity investments without readily determinable fair values. The following table presents the Company’s investments in tax credit and other investments, net, and related unfunded commitments as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Investments in tax credit and other investments, net $ 314,820 $ 338,522 Accrued expenses and other liabilities — Unfunded commitments $ 144,272 $ 163,464 Amortization of tax credit and other investments totaled $15.0 million and $28.9 million, for the three and six months ended June 30, 2022, respectively, as compared with $27.3 million and $52.6 million, for the same periods in 2021, respectively. For CRA investment purposes, the Company held equity securities that are mutual funds with readily determinable fair values of $24.8 million and $26.6 million, as of June 30, 2022 and December 31, 2021, respectively. These equity securities were measured at fair value with changes in fair value recorded in Other investment income on the Consolidated Statement of Income. The Company recorded unrealized losses of $783 thousand and unrealized gains of $69 thousand on these equity securities for the three months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, the Company recorded unrealized losses of $1.9 million and $428 thousand, respectively. Equity securities with readily determinable fair values were included in Investments in tax credit and other investments, net on the Consolidated Balance Sheet. The Company held equity securities without readily determinable fair values totaling $35.0 million and $33.1 million as of June 30, 2022 and December 31, 2021, respectively, which were measured using the measurement alternative at cost less impairment and adjusted for observable price changes. For the three and six months ended June 30, 2022 and 2021, there were no adjustments made to these securities. Equity securities without readily determinable fair values were included in Investments in qualified affordable housing partnerships, tax credit and other investments, net and Other assets on the Consolidated Balance Sheet. Tax credit investments are evaluated for possible OTTI on an annual basis or when events or changes in circumstances suggest that the carrying amount of the tax credit investments may not be realizable. OTTI charges and impairment recoveries are recorded within Amortization of tax credit and other investments on the Consolidated Statement of Income. Refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q for a discussion on the Company’s impairment evaluation and monitoring process of tax credit investments. For the three and six months ended June 30, 2022, the Company recorded no impairment recoveries and no OTTI charges. In comparison, the Company recorded impairment recoveries of $877 thousand related to two energy tax credit investments and no OTTI charges for the three months ended June 30, 2021. For the six months ended June 30, 2021, the Company recorded $1.3 million of impairment recoveries related to one historic tax credit and two energy tax credits and no OTTI charges. Variable Interest Entities The Company invests in unconsolidated limited partnerships and similar entities that construct, own and operate affordable housing, historic rehabilitation, and wind and solar energy projects, of which the majority of such investments are variable interest entities (“VIEs”). As a limited partner in these partnerships, these investments are designed to generate a return primarily through the realization of federal tax credits and tax benefits. An unrelated third party is typically the general partner or managing member who has control over the significant activities of such investments. While the Company’s interest in some of the investments may exceed 50% of the outstanding equity interests, the Company does not consolidate these structures due to the general partner’s or managing member’s ability to manage the entity, which is indicative of the general partner’s or managing member’s power over the entity. The Company’s maximum exposure to loss in connection with these partnerships consists of the unamortized investment balance and any tax credits claimed that may become subject to recapture. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Total goodwill was $465.7 million as of both June 30, 2022 and December 31, 2021. The Company’s goodwill impairment test is performed annually, as of December 31, or more frequently if events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. Based on the Company’s annual goodwill impairment testing as of December 31, 2021, there was no impairment. Additional information pertaining to the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Goodwill and Other Intangible Assets to the Consolidated Financial Statements in the Company’s 2021 Form 10-K. As of June 30, 2022, the Company reviewed recent market movements, as well as its business performance and market capitalization, and concluded that goodwill was not impaired. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments to Extend Credit — In the normal course of doing business, the Company provides customers loan commitments on predetermined terms. These outstanding commitments to extend credit are not reflected in the accompanying Consolidated Financial Statements. While the Company does not anticipate losses from these transactions, commitments to extend credit are included in determining the appropriate level of allowance for unfunded credit commitments, and outstanding commercial letters of credit and standby letters of credit (“SBLCs”). The following table presents the Company’s credit-related commitments as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 ($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Loan commitments $ 3,642,119 $ 2,880,229 $ 963,277 $ 139,623 $ 7,625,248 $ 6,911,398 Commercial letters of credit and SBLCs 1,080,377 342,243 111,182 732,561 2,266,363 2,221,699 Total $ 4,722,496 $ 3,222,472 $ 1,074,459 $ 872,184 $ 9,891,611 $ 9,133,097 Loan commitments are agreements to lend to customers provided 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 existing accounts. As of June 30, 2022, total letters of credit of $2.27 billion consisted of SBLCs of $2.23 billion and commercial letters of credit of $33.6 million. As of December 31, 2021, total letters of credit of $2.22 billion consisted of SBLCs of $2.14 billion and commercial letters of credit of $78.9 million. As of both June 30, 2022 and December 31, 2021, substantially all SBLCs were rated as “Pass” by the Bank’s internal credit risk rating system. The Company applies the same credit underwriting criteria to extend 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 a customer’s credit risk. Collateral may include cash, accounts receivable, inventory, property, plant and equipment, and real estate property. Estimated exposure to loss from these commitments is included in the allowance for unfunded credit commitments and amounted to $24.3 million and $27.5 million as of June 30, 2022 and December 31, 2021, respectively. Guarantees — From time to time, the Company sells or securitizes single-family and multifamily residential loans with recourse in the ordinary course of business. The Company is obligated to repurchase up to the recourse component of the loans if the loans default. The following table presents the carrying amounts of loans sold or securitized with recourse and the maximum potential future payments as of June 30, 2022 and December 31, 2021: ($ in thousands) Maximum Potential Future Payments Carrying Value June 30, December 31, June 30, December 31, Expire in One Year or Less Expire Expire Expire After Five Years Total Total Total Total Single-family residential loans sold or securitized with recourse $ 12 $ 174 $ 32 $ 6,897 $ 7,115 $ 7,926 $ 7,115 $ 7,926 Multifamily residential loans sold or securitized with recourse — — — 14,996 14,996 14,996 22,089 23,169 Total $ 12 $ 174 $ 32 $ 21,893 $ 22,111 $ 22,922 $ 29,204 $ 31,095 The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit commitments and totaled $37 thousand and $29 thousand as of June 30, 2022 and December 31, 2021, respectively. The allowance for unfunded credit commitments 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 ordinary 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 8 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities to the Consolidated Financial Statements in this Form 10-Q. As of June 30, 2022 and December 31, 2021, these commitments were $323.0 million and $309.6 million, respectively. These commitments are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. |
Stock Compensation Plans
Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation PlansPursuant to the Company’s 2021 Stock Incentive Plan, as amended, the Company may issue stocks, stock options, restricted stock, restricted stock units (“RSUs”) including performance-based RSUs, stock purchase warrants, stock appreciation rights, phantom stock and dividend equivalents to eligible employees, non-employee directors, consultants, and other service providers of the Company and its subsidiaries. There were no outstanding awards other than RSUs as of both June 30, 2022 and December 31, 2021. The following table presents a summary of the total share-based compensation expense and the related net tax benefits associated with the Company’s various employee share-based compensation plans for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Stock compensation costs $ 8,576 $ 8,208 $ 17,009 $ 16,025 Related net tax benefits for stock compensation plans $ 109 $ 37 $ 5,268 $ 1,657 Restricted Stock Units — RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSUs generally cliff vest after three years of continued employment from the date of the grant, and are authorized to settle predominantly in shares of the Company’s common stock. Certain RSUs are settled in cash. Dividends are accrued during the vesting period and paid at the time of vesting. While a portion of RSUs are time-based vesting awards, others vest subject to the attainment of specified performance goals, referred to as “performance-based RSUs.” Performance-based RSUs are granted annually upon approval by the Company’s Compensation Committee based on the performance in the year prior to the grant date of the award. The number of awards that vest can range from zero to a maximum of 200% of the granted number of awards based on the Company’s achievement of specified performance criteria over a performance period of three years. Compensation costs are calculated using the quoted market price of the Company’s common stock at the grant date. Compensation costs for certain time-based awards that will be settled in cash are adjusted to fair value based on changes in the share price of the Company’s common stock up to the settlement date. For performance-based RSUs, the compensation costs are based on grant date fair value which considers both performance and market conditions, and is subject to subsequent adjustments based on the Company’s outcome in meeting the performance criteria at the end of the performance period. Compensation costs of both time and performance-based awards are estimated based on awards ultimately expected to vest, and are recognized net of estimated forfeitures on a straight-line basis from the grant date until the vesting date of each grant. For accounting on stock-based compensation plans, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements of the Company’s 2021 Form 10-K for additional information. During the six months ended June 30, 2022, the Company modified 31,523 time-based RSUs held by 119 foreign employees from vesting in cash to vesting in shares without changing any of the other terms. There was no incremental compensation expense recognized as a result of the modification for the three and six months ended June 30, 2022. The following table presents a summary of the activities for the Company’s time-based and performance-based RSUs that will be settled in shares for the six months ended June 30, 2022. The number of performance-based RSUs stated below reflects the number of awards granted on the grant date. Time-Based RSUs Performance-Based RSUs Shares Weighted- Shares Weighted- Outstanding, January 1, 2022 1,329,946 $ 52.65 369,731 $ 54.28 Modified from cash-settled RSUs 31,523 77.28 — — Granted 409,065 52.97 91,874 77.91 Vested (370,018) 53.11 (125,213) 54.64 Forfeited (68,084) 61.50 — — Outstanding, June 30, 2022 1,332,432 $ 52.76 336,392 $ 60.60 The following table presents a summary of the activities for the Company’s time-based RSUs that are cash-settled for the six months ended June 30, 2022. During the six months ended June 30, 2022, the amount of cash paid to settle the RSUs that vested was $318 thousand. Shares Outstanding, January 1, 2022 32,647 Modified to share-settled RSUs (31,523) Granted 2,668 Vested (3,471) Forfeited (321) Outstanding, June 30, 2022 — As of June 30, 2022, there were $38.1 million and $20.3 million of total unrecognized compensation costs related to unvested time-based and performance-based RSUs, respectively. Both of these costs are expected to be recognized over a weighted-average period of 2.13 years and 2.11 years, respectively. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
Stockholders' Equity and Earnings Per Share | Stockholders’ Equity and Earnings Per Share The following table presents the basic and diluted EPS calculations for the three and six months ended June 30, 2022 and 2021. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements of the Company’s 2021 Form 10-K. ($ and shares in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic: Net income $ 258,329 $ 224,742 $ 495,981 $ 429,736 Weighted-average number of shares outstanding 141,429 141,868 141,725 141,758 Basic EPS $ 1.83 $ 1.58 $ 3.50 $ 3.03 Diluted: Net income $ 258,329 $ 224,742 $ 495,981 $ 429,736 Weighted-average number of shares outstanding 141,429 141,868 141,725 141,758 Add: Dilutive impact of unvested RSUs 943 1,172 1,113 1,205 Diluted weighted-average number of shares outstanding 142,372 143,040 142,838 142,963 Diluted EPS $ 1.81 $ 1.57 $ 3.47 $ 3.01 For the three and six months ended June 30, 2022, approximately 381 thousand and 70 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computations. In comparison, two thousand and four thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations for the three and six months ended June 30, 2021, respectively. Stock Repurchase Program — In 2020, the Company’s Board of Directors authorized a stock repurchase program to buy back up to $500.0 million of the Company’s common stock. During the three and six months ended June 30, 2022, the Company repurchased 1,385,517 shares at an average price of $72.17 per share at a total cost of $100.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables present the changes in the components of AOCI balances for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Debt Cash Foreign Currency Translation Adjustments (1) Total Balance, April 1, 2021 $ (81,201) $ (798) $ (8,041) $ (90,040) Net unrealized gains (losses) arising during the period 73,494 (76) 2,234 75,652 Amounts reclassified from AOCI (445) 144 — (301) Changes, net of tax 73,049 68 2,234 75,351 Balance, June 30, 2021 $ (8,152) $ (730) $ (5,807) $ (14,689) Balance, April 1, 2022 $ (365,653) (2) $ (24,466) $ (4,806) $ (394,925) Net unrealized losses arising during the period (192,858) (5,582) (10,215) (208,655) Amounts reclassified from AOCI 3,730 (798) — 2,932 Changes, net of tax (189,128) (6,380) (10,215) (205,723) Balance, June 30, 2022 $ (554,781) $ (30,846) $ (15,021) $ (600,648) ($ in thousands) Debt Cash Foreign Currency Translation Adjustments (1) Total Balance, January 1, 2021 $ 52,247 $ (1,230) $ (6,692) $ 44,325 Net unrealized (losses) gains arising during the period (59,819) 229 885 (58,705) Amounts reclassified from AOCI (580) 271 — (309) Changes, net of tax (60,399) 500 885 (59,014) Balance, June 30, 2021 $ (8,152) $ (730) $ (5,807) $ (14,689) Balance, January 1, 2022 $ (85,703) $ 257 $ (4,935) $ (90,381) Net unrealized losses arising during the period (474,219) (28,809) (10,086) (513,114) Amounts reclassified from AOCI 5,141 (2,294) — 2,847 Changes, net of tax (469,078) (31,103) (10,086) (510,267) Balance, June 30, 2022 $ (554,781) (2) $ (30,846) $ (15,021) $ (600,648) (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 RMB and USD, respectively. (2) Includes after-tax unamortized losses of $113.0 million related to AFS debt securities that were transferred to HTM. For further information, refer to Note 5 — Securities to the Consolidated Financial Statements in this Form 10-Q. The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, 2022 2021 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: Net unrealized (losses) gains arising during the period $ (273,840) $ 80,982 $ (192,858) $ 104,283 $ (30,789) $ 73,494 Reclassification adjustments: Net realized (gains) reclassified into net income (1) (28) 8 (20) (632) 187 (445) Amortization of unrealized losses on transferred securities (2) 5,324 (1,574) 3,750 — — — Net change (268,544) 79,416 (189,128) 103,651 (30,602) 73,049 Cash flow hedges: Net unrealized (losses) gains arising during the period (7,837) 2,255 (5,582) (106) 30 (76) Net realized (gains) losses reclassified into net income (3) (1,120) 322 (798) 201 (57) 144 Net change (8,957) 2,577 (6,380) 95 (27) 68 Foreign currency translation adjustments, net of hedges: Net unrealized (losses) gains arising during the period (9,278) (937) (10,215) 1,584 650 2,234 Net change (9,278) (937) (10,215) 1,584 650 2,234 Other comprehensive (loss) income $ (286,779) $ 81,056 $ (205,723) $ 105,330 $ (29,979) $ 75,351 ($ in thousands) Six Months Ended June 30, 2022 2021 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: Net unrealized losses arising during the period $ (673,302) $ 199,083 $ (474,219) $ (84,993) $ 25,174 $ (59,819) Reclassification adjustments: Net realized (gains) reclassified into net income (1) (1,306) 386 (920) (824) 244 (580) Amortization of unrealized losses on transferred securities (2) 8,605 (2,544) 6,061 — — — Net change (666,003) 196,925 (469,078) (85,817) 25,418 (60,399) Cash flow hedges: Net unrealized (losses) gains arising during the period (40,446) 11,637 (28,809) 320 (91) 229 Net realized (gains) losses reclassified into net income (3) (3,220) 926 (2,294) 378 (107) 271 Net change (43,666) 12,563 (31,103) 698 (198) 500 Foreign currency translation adjustments, net of hedges: Net unrealized (losses) gains arising during the period (9,600) (486) (10,086) 275 610 885 Net change (9,600) (486) (10,086) 275 610 885 Other comprehensive loss $ (719,269) $ 209,002 $ (510,267) $ (84,844) $ 25,830 $ (59,014) (1) For the three and six months ended June 30, 2022 and 2021, pre-tax amounts were reported in Gains on sales of AFS debt securities on the Consolidated Statement of Income. (2) Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio. (3) For the three and six months ended June 30, 2022 and 2021, pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Other. These segments are defined by the type of customers served, and the related products and services provided. The segments reflect how financial information is currently evaluated by management. Operating segment results are based on the Company’s internal management reporting process, which reflects assignments and allocations of certain balance sheet and income statement items. The information presented is not indicative of how the segments would perform if they operated as independent entities due to the interrelationships among the segments. The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Company’s domestic branch network and digital banking platform. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small- and medium-sized enterprises through the Company’s branch network. Other products and services provided by this segment include wealth management, treasury management, interest rate risk hedging and foreign exchange services. The Commercial Banking segment primarily generates commercial loan and deposit products. Commercial loan products include CRE lending, construction finance, working capital lines of credit, trade finance, letters of credit, commercial business lending, affordable housing lending, asset-based lending, asset-backed finance, project finance and equipment financing. Commercial deposit products and other financial services include treasury management, foreign exchange services and interest rate and commodity risk hedging. The remaining centralized functions, including the corporate 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, namely the Consumer and Business Banking and the Commercial Banking segments. The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company. The internal reporting process derives operating segment results by utilizing allocation methodologies for revenues and expenses. Net interest income of each segment represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for funding charges or credits through the Company’s internal funds transfer pricing (“FTP”) process. Noninterest income and noninterest expense directly attributable to a business segment are assigned to that segment. Indirect costs, including technology-related costs and corporate overhead, are allocated based on a segment’s estimated usage using factors including but not limited to, full-time equivalent employees, net interest income, and loan and deposit volume. Charge-offs are recorded to the segment directly associated with the respective loans charged off, and provision for credit losses is recorded to the segments based on the related loans for which allowances are evaluated. The Company’s internal reporting process utilizes a full-allocation methodology. Under this methodology, corporate and indirect expenses incurred by the Other segment are allocated to the Consumer and Business Banking and the Commercial Banking segments, except certain corporate treasury-related expenses and insignificant unallocated expenses. The corporate treasury function within the Other segment is responsible for the Company’s liquidity and interest rate management. The Company’s internal FTP process is also managed by the corporate treasury function within the Other segment. The 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 FTP process charges a cost to fund loans (“FTP charges for loans”) and allocates credits for funds provided from deposits (“FTP credits for deposits”) using internal FTP rates. FTP charges for loans are determined based on a matched cost of funds, which is tied to the pricing and term characteristics of the loans. FTP credits for deposits are based on matched funding credit rates, which are tied to the implied or stated maturity of the deposits. FTP credits for deposits reflect the long-term value generated by the deposits. The net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Other segment. The FTP process transfers the corporate interest rate risk exposure to the treasury function within the Other segment, where such exposures are centrally managed. The Company’s internal FTP assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions. The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Consumer and Commercial Other Total Three Months Ended June 30, 2022 Net interest income (loss) before provision for credit losses $ 284,373 $ 230,964 $ (42,385) $ 472,952 Provision for credit losses 2,898 10,602 — 13,500 Noninterest income 28,384 48,032 2,028 78,444 Noninterest expense 94,295 81,023 21,542 196,860 Segment income (loss) before income taxes 215,564 187,371 (61,899) 341,036 Segment net income (loss) $ 153,549 $ 133,861 $ (29,081) $ 258,329 As of June 30, 2022 Segment assets $ 16,472,373 $ 32,256,044 $ 13,665,866 $ 62,394,283 ($ in thousands) Consumer and Commercial Other Total Three Months Ended June 30, 2021 Net interest income before provision for (reversal of) credit losses $ 173,775 $ 192,696 $ 10,002 $ 376,473 Provision for (reversal of) credit losses 2,358 (17,358) — (15,000) Noninterest income (1) 24,332 32,674 11,425 68,431 Noninterest expense 87,650 64,164 37,709 189,523 Segment income (loss) before income taxes (1) 108,099 178,564 (16,282) 270,381 Segment net income (1) $ 77,429 $ 127,873 $ 19,440 $ 224,742 As of June 30, 2021 Segment assets $ 14,594,087 $ 27,354,253 $ 17,906,536 $ 59,854,876 ($ in thousands) Consumer and Commercial Other Total Six Months Ended June 30, 2022 Net interest income (loss) before provision for credit losses $ 497,587 $ 439,041 $ (48,063) $ 888,565 Provision for credit losses 6,002 15,498 — 21,500 Noninterest income 53,583 97,109 7,495 158,187 Noninterest expense 190,390 154,418 41,502 386,310 Segment income (loss) before income taxes 354,778 366,234 (82,070) 638,942 Segment net income (loss) $ 252,713 $ 261,368 $ (18,100) $ 495,981 As of June 30, 2022 Segment assets $ 16,472,373 $ 32,256,044 $ 13,665,866 $ 62,394,283 ($ in thousands) Consumer and Commercial Other Total Six Months Ended June 30, 2021 Net interest income before reversal of credit losses $ 323,674 $ 369,788 $ 36,706 $ 730,168 Reversal of credit losses (1,891) (13,109) — (15,000) Noninterest income (1) 47,774 80,070 13,453 141,297 Noninterest expense 176,936 133,421 70,243 380,600 Segment income (loss) before income taxes (1) 196,403 329,546 (20,084) 505,865 Segment net income (1) $ 140,680 $ 236,080 $ 52,976 $ 429,736 As of June 30, 2021 Segment assets $ 14,594,087 $ 27,354,253 $ 17,906,536 $ 59,854,876 (1) During the fourth quarter of 2021, the Company enhanced its segment allocation methodology related to the fair values of interest rate and commodity derivative contracts, which are included in noninterest income. These fair values, which were previously allocated to the “ Commercial Banking ” segment prior to the fourth quarter of 2021, have since been reclassified between “ Consumer and Business Banking ” and “ Commercial Banking .” Balances for the second quarter and first half of 2021 have been reclassified to reflect these allocation changes for comparability. |
Current Accounting Developmen_2
Current Accounting Developments and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [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 Quarterly Report on Form 10-Q (“this Form 10-Q”) include the accounts of East West, East West Bank and East West’s subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of June 30, 2022, East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 810, Consolidation , the Trusts are not included on the Consolidated Financial Statements. |
Basis of Presentation | The unaudited interim Consolidated Financial Statements are presented in accordance with United States (“U.S.”) Generally Accepted Accounting Principles (“GAAP”), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. While the unaudited interim Consolidated Financial Statements reflect all adjustments that, in the opinion of management, are necessary for fair presentation, they primarily serve to update the most recently filed annual report on Form 10-K, and may not include all the information and notes necessary to constitute a complete set of financial statements. Accordingly, they 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, 2021, filed with the U.S. Securities and Exchange Commission on February 28, 2022 (the “Company’s 2021 Form 10-K”). In addition, certain items on the Consolidated Financial Statements and notes for the prior periods have been reclassified to conform to the current period presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standard Required Date of Adoption Description Effect on Financial Statements Standards Not Yet Adopted Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) : Trouble Debt Restructurings and the Vintage Disclosures January 1, 2023 ASU 2022-02 eliminates the troubled debt restructuring (“TDRs”) accounting model for creditors and instead requires companies to apply the loan refinancing and restructuring guidance to determine whether a modification made to a borrower results in a new loan or a continuation of an existing loan. In addition, companies are no longer required to use a discounted cash flow method to measure the allowance for credit losses for certain TDRs and instead allows for the use of an expected loss approach for all loans. The guidance also introduces new disclosure requirements related to restructuring of financing receivables made to borrowers experiencing financial difficulty, and amends vintage disclosures to require current-period gross write-off by year of origination. The guidance should be applied on a prospective basis except for amendments related to recognition and measurement of TDRs, where a modified retrospective transition method is optional. The Company does not expect the adoption of this guidance to have a material impact on the Company’s Consolidated Financial Statements. The Company expects to adopt ASU 2022-02 on January 1, 2023. |
Transfer between Categories of Debt Securities and Held-to-Maturity Debt Securities | Transfer between Categories of Debt Securities — Upon transfer of a debt security from the AFS to HTM category, the security’s new amortized cost is reset to fair value, reduced by any previous write-offs but excluding any allowance for credit losses. Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income over the remaining life of the securities as effective yield adjustments, in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. For transfers of securities from the AFS to HTM category, any allowance for credit losses that was previously recorded under the AFS model is reversed and an allowance for credit losses is subsequently recorded under the HTM debt security model. The reversal and re-establishment of the allowance for credit losses are recorded in the provision for credit losses. Held-to-Maturity Debt Securities — Debt securities that the Company has the intent and ability to hold until maturity are classified as HTM and are carried at amortized cost, net of allowance for credit losses. HTM debt securities are generally placed on nonaccrual status using factors similar to those described for loans. The amortized cost of the Company’s HTM debt securities excludes accrued interest, which is included in Other assets on the Consolidated Balance Sheet. The Company has made an accounting policy election not to recognize an allowance for credit losses for accrued interest receivables on HTM debt securities, as the Company reverses any accrued interest against interest income if a debt security is placed on nonaccrual status. Any cash collected on nonaccrual HTM securities is applied to reduce the security’s amortized cost basis and not as interest income. Generally, the Company returns an HTM security to accrual status when all delinquent interest and principal become current under the contractual terms of the security, and the collectability of remaining principal and interest is no longer doubtful. |
Allowance for Credit Losses on Held-to-Maturity Debt Securities | Allowance for Credit Losses on Held-to-Maturity Debt Securities — For each major HTM debt security type, the allowance for credit losses is estimated collectively for groups of securities with similar risk characteristics. For securities that do not share similar risk characteristics, the losses are estimated individually. Examples of securities for which the Company applies a zero credit loss assumption include debt securities that are either guaranteed or issued by the U.S. government or government-sponsored enterprises, are highly rated by nationally recognized statistical rating organizations (“NRSROs”), and have a long history of no credit losses. Any expected credit loss is recorded through the allowance for credit losses on HTM debt securities and deducted from the amortized cost basis of the security, so that the balance sheet reflects the net amount the Company expects to collect. |
Fair Value Determination | Fair Value Determination Fair value is defined as the price that would be received to sell an asset or the price that would be 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 described 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 prices derived from 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. |
Balance Sheet Offsetting | The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that, in the event of default by the counterparty, provide the Company 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, Balance Sheet Offsetting Repurchase and Reverse Repurchase Agreements |
Cash Flow Hedges | Changes in the fair values of cash flow hedges are recognized in AOCI and reclassified to earnings in the same period when the hedged cash flows impact earnings. Reclassified gains and losses on these interest rate contracts are recorded either in the same line item as the interest payments of the hedged long-term borrowings within Interest expense, or in the same line items as the interest receipts of the hedged variable-rate CRE loans within Interest and dividend income |
Credit Quality Indicators | Credit Quality Indicators All loans are subject to the Company’s credit review and monitoring process. For the commercial loan portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the consumer loan portfolio, payment performance or delinquency is typically the driving indicator for risk ratings. The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10: • Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions. • Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.” • Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.” • Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.” • Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.” |
Investments in Qualified Affordable Housing Partnerships, Net and Investments in Tax Credit and Other Investments, Net | The Company records its investments in qualified affordable housing partnerships, net, using the proportional amortization method if certain criteria are met. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the amortization in Income tax expense on the Consolidated Statement of Income. Tax credit investments are evaluated for possible OTTI on an annual basis or when events or changes in circumstances suggest that the carrying amount of the tax credit investments may not be realizable. OTTI charges and impairment recoveries are recorded within Amortization of tax credit and other investments |
Variable Interest Entities | Variable Interest Entities The Company invests in unconsolidated limited partnerships and similar entities that construct, own and operate affordable housing, historic rehabilitation, and wind and solar energy projects, of which the majority of such investments are variable interest entities (“VIEs”). As a limited partner in these partnerships, these investments are designed to generate a return primarily through the realization of federal tax credits and tax benefits. An unrelated third party is typically the general partner or managing member who has control over the significant activities of such investments. While the Company’s interest in some of the investments may exceed 50% of the outstanding equity interests, the Company does not consolidate these structures due to the general partner’s or managing member’s ability to manage the entity, which is indicative of the general partner’s or managing member’s power over the entity. The Company’s maximum exposure to loss in connection with these partnerships consists of the unamortized investment balance and any tax credits claimed that may become subject to recapture. |
Goodwill | The Company’s goodwill impairment test is performed annually, as of December 31, or more frequently if events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. |
Litigation | Litigation — The Company is a party to various legal actions arising in the ordinary 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. |
Share-based Compensation | Compensation costs are calculated using the quoted market price of the Company’s common stock at the grant date. Compensation costs for certain time-based awards that will be settled in cash are adjusted to fair value based on changes in the share price of the Company’s common stock up to the settlement date. For performance-based RSUs, the compensation costs are based on grant date fair value which considers both performance and market conditions, and is subject to subsequent adjustments based on the Company’s outcome in meeting the performance criteria at the end of the performance period. Compensation costs of both time and performance-based awards are estimated based on awards ultimately expected to vest, and are recognized net of estimated forfeitures on a straight-line basis from the grant date until the vesting date of each grant. |
Allowance for Credit Losses | Allowance for Credit Losses The Company has an allowance framework under ASU 2016-13 for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The Company’s allowance for credit losses, which includes both the allowance for loan losses and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses, and periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors. The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense. The allowance for credit losses estimation involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures that share risk characteristics with other similar exposures are collectively evaluated. The collectively evaluated loans include performing risk-rated loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis. These individually assessed loans include TDR and nonaccrual loans. Allowance for Collectively Evaluated Loans The allowance for collectively evaluated loans consists of a quantitative component that assesses the different risk factors considered in our models and a qualitative component that considers risk factors external to the models. Each of these components are described below. • Quantitative Component — The Company applies quantitative methods to estimate loan losses by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios, which include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted, multiple-scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the life of loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining lives of the loans to estimate the allowance for loan losses. During the third quarter of 2021, the reasonable and supportable forecast period, key credit risk characteristics and macroeconomic variables to estimate the expected credit losses of the C&I segment were modified due to model enhancement. There were no changes to the overall model methodology. For the three and six months ended June 30, 2022, there were no changes to the reasonable and supportable forecast period and reversion to the historical loss experience method. The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment: Portfolio Segment Risk Characteristics Macroeconomic Variables C&I Age (1) , size and spread at origination, and risk rating Volatility Index (“VIX”) and BBB yield to 10-year U.S. Treasury spread (“BBB Spread”) (1) CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates Single-family residential and HELOCs FICO score, delinquency status, maturity date, collateral value, and geographic location Unemployment rate, GDP, and home price index Other consumer Historical loss experience Immaterial (2) (1) Due to the model enhancements during the third quarter of 2021, the risk characteristic related to “time-to-maturity” was changed to “age”; while macroeconomic variables related to “unemployment rate and two- and ten-year U.S. Treasury spread” were changed to “VIX and BBB Spread”. (2) Macroeconomic variables are included in the qualitative estimate. Allowance for Loan Losses for the Commercial Loan Portfolio The Company’s C&I lifetime loss rate model estimates credit losses by estimating a loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans 11 quarters, thereafter immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate. For CRE, multifamily residential, and construction and land loans, projected probabilities of default (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period. In order to estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. Allowance for Loan Losses for the Consumer Loan Portfolio For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends after the reasonable and supportable period. In order to estimate the life of a loan for the single-family residential and HELOC portfolios, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. For other consumer loans, the Company uses a loss rate approach. • Qualitative Component — The Company also considers the following qualitative factors in the determination of the collectively evaluated allowance, if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to: – Loan growth trends; – the volume and severity of past due financial assets, and the volume and severity of adversely classified financial assets; – the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices; – knowledge of a borrower’s operations; – the quality of the Company’s credit review system; – the experience, ability and depth of the Company’s management, lending associates and other relevant associates; – the effect of other external factors such as the regulatory and legal environments and changes in technology; – actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and – risk factors in certain industry sectors not captured by the quantitative models. The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period. While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk. Allowance for Individually Evaluated Loans When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual or TDR loans, the Company estimates the allowance for loan losses on an individual loan basis. The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; and (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan. • Collateral-Dependent Loans — |
Fair Value Measurement and Fa_2
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Schedule Of Financial 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 June 30, 2022 and December 31, 2021: ($ in thousands) Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 624,686 $ — $ — $ 624,686 U.S. government agency and U.S. government-sponsored enterprise debt securities — 285,245 — 285,245 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 563,832 — 563,832 Residential mortgage-backed securities — 1,910,240 — 1,910,240 Municipal securities — 266,733 — 266,733 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 411,768 — 411,768 Residential mortgage-backed securities — 726,989 — 726,989 Corporate debt securities — 559,293 — 559,293 Foreign government bonds — 242,997 — 242,997 Asset-backed securities — 67,350 — 67,350 Collateralized loan obligations (“CLOs”) — 596,371 — 596,371 Total AFS debt securities $ 624,686 $ 5,630,818 $ — $ 6,255,504 Investments in tax credit and other investments: Equity securities $ 20,463 $ 4,312 $ — $ 24,775 Total investments in tax credit and other investments $ 20,463 $ 4,312 $ — $ 24,775 Derivative assets: Interest rate contracts $ — $ 261,326 $ — $ 261,326 Foreign exchange contracts — 42,324 — 42,324 Equity contracts — 2 357 359 Commodity contracts — 404,275 — 404,275 Gross derivative assets $ — $ 707,927 $ 357 $ 708,284 Netting adjustments (1) $ — $ (251,718) $ — $ (251,718) Net derivative assets $ — $ 456,209 $ 357 $ 456,566 Derivative liabilities: Interest rate contracts $ — $ 359,674 $ — $ 359,674 Foreign exchange contracts — 29,144 — 29,144 Credit contracts — 76 — 76 Commodity contracts — 373,675 — 373,675 Gross derivative liabilities $ — $ 762,569 $ — $ 762,569 Netting adjustments (1) $ — $ (126,414) $ — $ (126,414) Net derivative liabilities $ — $ 636,155 $ — $ 636,155 ($ in thousands) Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 1,032,681 $ — $ — $ 1,032,681 U.S. government agency and U.S. government-sponsored enterprise debt securities — 1,301,971 — 1,301,971 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 1,228,980 — 1,228,980 Residential mortgage-backed securities — 2,928,283 — 2,928,283 Municipal securities — 523,158 — 523,158 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 496,443 — 496,443 Residential mortgage-backed securities — 881,931 — 881,931 Corporate debt securities — 649,665 — 649,665 Foreign government bonds — 257,733 — 257,733 Asset-backed securities — 74,558 — 74,558 CLOs — 589,950 — 589,950 Total AFS debt securities $ 1,032,681 $ 8,932,672 $ — $ 9,965,353 Investments in tax credit and other investments: Equity securities $ 22,130 $ 4,474 $ — $ 26,604 Total investments in tax credit and other investments $ 22,130 $ 4,474 $ — $ 26,604 Derivative assets: Interest rate contracts $ — $ 240,222 $ — $ 240,222 Foreign exchange contracts — 21,033 — 21,033 Equity contracts — 5 215 220 Commodity contracts — 222,709 — 222,709 Gross derivative assets $ — $ 483,969 $ 215 $ 484,184 Netting adjustments (1) $ — $ (100,953) $ — $ (100,953) Net derivative assets $ — $ 383,016 $ 215 $ 383,231 Derivative liabilities: Interest rate contracts $ — $ 179,962 $ — $ 179,962 Foreign exchange contracts — 15,501 — 15,501 Credit contracts — 141 — 141 Commodity contracts — 194,567 — 194,567 Gross derivative liabilities $ — $ 390,171 $ — $ 390,171 Netting adjustments (1) $ — $ (232,727) $ — $ (232,727) Net derivative liabilities $ — $ 157,444 $ — $ 157,444 (1) Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information. |
Schedule Of The Carrying And Fair Value Estimates Per The Fair Value Hierarchy Of Financial Instruments Measured On a Nonrecurring Basis | The following tables present the fair value estimates for financial instruments as of June 30, 2022 and December 31, 2021, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable, restricted equity securities, at cost, and mortgage servicing rights that are included in Other assets , and accrued interest payable which is included in Accrued expenses and other liabilities . These financial assets and liabilities are measured on an amortized cost basis on the Company’s Consolidated Balance Sheet. ($ in thousands) June 30, 2022 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 1,902,053 $ 1,902,053 $ — $ — $ 1,902,053 Interest-bearing deposits with banks $ 712,709 $ — $ 712,709 $ — $ 712,709 Resale agreements $ 1,422,794 $ — $ 1,348,036 $ — $ 1,348,036 HTM debt securities $ 3,028,302 $ 486,521 $ 2,170,028 $ — $ 2,656,549 Restricted equity securities, at cost $ 77,962 $ — $ 77,962 $ — $ 77,962 Loans held-for-sale $ 28,464 $ — $ 28,464 $ — $ 28,464 Loans held-for-investment, net $ 45,938,806 $ — $ — $ 45,860,749 $ 45,860,749 Mortgage servicing rights $ 5,909 $ — $ — $ 10,349 $ 10,349 Accrued interest receivable $ 172,008 $ — $ 172,008 $ — $ 172,008 Financial liabilities: Demand, checking, savings and money market deposits $ 44,965,778 $ — $ 44,965,778 $ — $ 44,965,778 Time deposits $ 9,377,576 $ — $ 9,318,992 $ — $ 9,318,992 FHLB advances $ 174,776 $ — $ 175,207 $ — $ 175,207 Repurchase agreements $ 611,785 $ — $ 619,280 $ — $ 619,280 Long-term debt $ 147,801 $ — $ 139,206 $ — $ 139,206 Accrued interest payable $ 9,596 $ — $ 9,596 $ — $ 9,596 ($ in thousands) December 31, 2021 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 3,912,935 $ 3,912,935 $ — $ — $ 3,912,935 Interest-bearing deposits with banks $ 736,492 $ — $ 736,492 $ — $ 736,492 Resale agreements $ 2,353,503 $ — $ 2,335,901 $ — $ 2,335,901 Restricted equity securities, at cost $ 77,434 $ — $ 77,434 $ — $ 77,434 Loans held-for-sale $ 635 $ — $ 635 $ — $ 635 Loans held-for-investment, net $ 41,152,202 $ — $ — $ 41,199,599 $ 41,199,599 Mortgage servicing rights $ 5,706 $ — $ — $ 9,104 $ 9,104 Accrued interest receivable $ 159,833 $ — $ 159,833 $ — $ 159,833 Financial liabilities: Demand, checking, savings and money market deposits $ 45,388,550 $ — $ 45,388,550 $ — $ 45,388,550 Time deposits $ 7,961,982 $ — $ 7,966,116 $ — $ 7,966,116 FHLB advances $ 249,331 $ — $ 250,372 $ — $ 250,372 Repurchase agreements $ 300,000 $ — $ 310,525 $ — $ 310,525 Long-term debt $ 147,658 $ — $ 151,020 $ — $ 151,020 Accrued interest payable $ 11,435 $ — $ 11,435 $ — $ 11,435 |
Fair Value, Measurements, Recurring | |
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Reconciliation Of The Beginning And Ending Balances For Equity Warrants Measured At Fair Value On a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table provides a reconciliation of the beginning and ending balances of these equity contracts for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Equity contracts Beginning balance $ 309 $ 272 $ 215 $ 273 Total gains included in earnings (1) 48 47 51 46 Issuances — — 91 — Settlements — (96) — (96) Ending balance $ 357 $ 223 $ 357 $ 223 (1) Includes unrealized gains (losses) of $48 thousand and $(27) thousand for the three months ended June 30, 2022 and 2021, respectively, and $51 thousand and $(29) thousand for the six months ended June 30, 2022 and 2021, respectively. The realized/unrealized gains (losses) of equity contracts are recorded in Lending fees on the Consolidated Statement of Income. |
Schedule Of Quantitative Information About Significant Unobservable Inputs Used In The Valuation Of Level 3 Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of June 30, 2022 and December 31, 2021. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Valuation Unobservable Range of Inputs Weighted- Average of Inputs (1) June 30, 2022 Derivative assets: Equity contracts $ 357 Black-Scholes option pricing model Equity volatility 46% — 70%. 61% Liquidity discount 47% 47% December 31, 2021 Derivative assets: Equity contracts $ 215 Black-Scholes option pricing model Equity volatility 44% — 54% 49% Liquidity discount 47% 47% (1) Weighted-average of inputs is calculated based on the fair value of equity contracts as of June 30, 2022 and December 31, 2021. |
Fair Value, Measurements, Nonrecurring | |
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Schedule Of Quantitative Information About Significant Unobservable Inputs Used In The Valuation Of Level 3 Fair Value Measurements | The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of June 30, 2022 and December 31, 2021: ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) June 30, 2022 Loans held-for-investment $ 36,889 Discounted cash flows Discount 4% — 6% 4% $ 19,293 Fair value of collateral Discount 15% — 77% 37% $ 31,771 Fair value of property Selling cost 8% 8% December 31, 2021 Loans held-for-investment $ 64,919 Discounted cash flows Discount 4% — 15% 7% $ 38,537 Fair value of collateral Discount 15% — 75% 41% $ 23,528 Fair value of property Selling cost 8% 8% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of June 30, 2022 and December 31, 2021. |
Schedule Of Carrying Amounts Of Assets That Were Still Held And Had Fair Value Changes Measured On a Nonrecurring Basis | The following tables present the carrying amounts of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of June 30, 2022 and December 31, 2021: ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: Commercial and industrial (“C&I”) $ — $ — $ 55,015 $ 55,015 Commercial real estate (“CRE”): CRE — — 30,716 30,716 Multifamily residential — — 1,055 1,055 Total commercial — — 86,786 86,786 Consumer: Residential mortgage: Home equity lines of credit (“HELOCs”) — — 1,167 1,167 Total consumer — — 1,167 1,167 Total loans held-for-investment $ — $ — $ 87,953 $ 87,953 ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: C&I $ — $ — $ 102,349 $ 102,349 CRE: CRE — — 21,891 21,891 Total commercial — — 124,240 124,240 Consumer: Residential mortgage: HELOCs — — 2,744 2,744 Total consumer — — 2,744 2,744 Total loans held-for-investment $ — $ — $ 126,984 $ 126,984 Other nonperforming assets $ 391 $ — $ — $ 391 |
Schedule Of Increase (Decrease) In Fair Value Of Assets For Which a Fair Value Adjustment Has Been Recognized, Nonrecurring Basis | The following table presents the increase (decrease) in fair value of certain assets held at the end of the respective reporting periods, for which a nonrecurring fair value adjustment was recognized for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Loans held-for-investment: Commercial: C&I $ (6,054) $ (6,462) $ (14,740) $ (15,530) CRE: CRE (533) (275) 2,330 (7,336) Multifamily residential (8) 2 (8) (6) Construction and land — (209) — (280) Total commercial (6,595) (6,944) (12,418) (23,152) Consumer: Residential mortgage: Single-family residential — — — (8) HELOCs 82 3 85 (23) Other consumer — (2,491) — (2,491) Total consumer 82 (2,488) 85 (2,522) Total loans held-for-investment $ (6,513) $ (9,432) $ (12,333) $ (25,674) Investments in tax credit and other investments, net $ — $ 877 $ — $ 877 OREO $ — $ (910) $ — $ (910) Other nonperforming assets $ (6,861) $ — $ (6,861) $ (3,890) |
Assets Purchased under Resale_2
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Assets Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Received Resale agreements $ 1,422,794 $ — $ 1,422,794 $ (1,336,962) (1) $ 85,832 Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Pledged Repurchase agreements $ 611,785 $ — $ 611,785 $ (611,785) (2) $ — ($ in thousands) December 31, 2021 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Net Collateral Received Resale agreements $ 2,353,503 $ — $ 2,353,503 $ (2,327,687) (1) $ 25,816 Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Pledged Repurchase agreements $ 300,000 $ — $ 300,000 $ (300,000) (2) $ — (1) Represents the fair value of assets the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of AFS and HTM debt securities as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 676,320 $ — $ (51,634) $ 624,686 U.S. government agency and U.S. government-sponsored enterprise debt securities 324,463 — (39,218) 285,245 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 614,135 125 (50,428) 563,832 Residential mortgage-backed securities 2,097,339 193 (187,292) 1,910,240 Municipal securities 306,419 22 (39,708) 266,733 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 451,200 247 (39,679) 411,768 Residential mortgage-backed securities 808,012 — (81,023) 726,989 Corporate debt securities 673,502 105 (114,314) 559,293 Foreign government bonds 253,118 648 (10,769) 242,997 Asset-backed securities 69,764 — (2,414) 67,350 CLOs 617,250 — (20,879) 596,371 Total AFS debt securities 6,891,522 1,340 (637,358) 6,255,504 HTM debt securities: U.S. Treasury securities 521,352 — (34,831) 486,521 U.S. government agency and U.S. government-sponsored enterprise debt securities 997,369 — (144,291) 853,078 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 512,391 — (62,563) 449,828 Residential mortgage-backed securities 807,111 — (96,637) 710,474 Municipal securities 190,079 — (33,431) 156,648 Total HTM debt securities 3,028,302 — (371,753) 2,656,549 Total debt securities $ 9,919,824 $ 1,340 $ (1,009,111) $ 8,912,053 ($ in thousands) December 31, 2021 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 1,049,238 $ 130 $ (16,687) $ 1,032,681 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,333,984 2,697 (34,710) 1,301,971 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 1,242,043 15,791 (28,854) 1,228,980 Residential mortgage-backed securities 2,968,789 8,629 (49,135) 2,928,283 Municipal securities 519,381 10,065 (6,288) 523,158 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 498,920 3,000 (5,477) 496,443 Residential mortgage-backed securities 889,937 971 (8,977) 881,931 Corporate debt securities 657,516 8,738 (16,589) 649,665 Foreign government bonds 260,447 767 (3,481) 257,733 Asset-backed securities 74,674 185 (301) 74,558 CLOs 592,250 52 (2,352) 589,950 Total AFS debt securities $ 10,087,179 $ 51,025 $ (172,851) $ 9,965,353 |
Debt Securities, Held-To-Maturity | The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of AFS and HTM debt securities as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 676,320 $ — $ (51,634) $ 624,686 U.S. government agency and U.S. government-sponsored enterprise debt securities 324,463 — (39,218) 285,245 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 614,135 125 (50,428) 563,832 Residential mortgage-backed securities 2,097,339 193 (187,292) 1,910,240 Municipal securities 306,419 22 (39,708) 266,733 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 451,200 247 (39,679) 411,768 Residential mortgage-backed securities 808,012 — (81,023) 726,989 Corporate debt securities 673,502 105 (114,314) 559,293 Foreign government bonds 253,118 648 (10,769) 242,997 Asset-backed securities 69,764 — (2,414) 67,350 CLOs 617,250 — (20,879) 596,371 Total AFS debt securities 6,891,522 1,340 (637,358) 6,255,504 HTM debt securities: U.S. Treasury securities 521,352 — (34,831) 486,521 U.S. government agency and U.S. government-sponsored enterprise debt securities 997,369 — (144,291) 853,078 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 512,391 — (62,563) 449,828 Residential mortgage-backed securities 807,111 — (96,637) 710,474 Municipal securities 190,079 — (33,431) 156,648 Total HTM debt securities 3,028,302 — (371,753) 2,656,549 Total debt securities $ 9,919,824 $ 1,340 $ (1,009,111) $ 8,912,053 ($ in thousands) December 31, 2021 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 1,049,238 $ 130 $ (16,687) $ 1,032,681 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,333,984 2,697 (34,710) 1,301,971 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 1,242,043 15,791 (28,854) 1,228,980 Residential mortgage-backed securities 2,968,789 8,629 (49,135) 2,928,283 Municipal securities 519,381 10,065 (6,288) 523,158 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 498,920 3,000 (5,477) 496,443 Residential mortgage-backed securities 889,937 971 (8,977) 881,931 Corporate debt securities 657,516 8,738 (16,589) 649,665 Foreign government bonds 260,447 767 (3,481) 257,733 Asset-backed securities 74,674 185 (301) 74,558 CLOs 592,250 52 (2,352) 589,950 Total AFS debt securities $ 10,087,179 $ 51,025 $ (172,851) $ 9,965,353 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of June 30, 2022 and December 31, 2021. ($ in thousands) June 30, 2022 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross AFS debt securities: U.S. Treasury securities $ 466,095 $ (32,524) $ 158,591 $ (19,110) $ 624,686 $ (51,634) U.S. government agency and U.S. government sponsored enterprise debt securities 249,274 (35,689) 35,971 (3,529) 285,245 (39,218) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 440,235 (34,101) 110,670 (16,327) 550,905 (50,428) Residential mortgage-backed securities 1,433,558 (122,567) 463,552 (64,725) 1,897,110 (187,292) Municipal securities 265,197 (39,708) — — 265,197 (39,708) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 335,199 (28,436) 65,175 (11,243) 400,374 (39,679) Residential mortgage-backed securities 616,819 (67,098) 110,170 (13,925) 726,989 (81,023) Corporate debt securities 295,000 (35,503) 236,189 (78,811) 531,189 (114,314) Foreign government bonds 18,887 (165) 67,798 (10,604) 86,685 (10,769) Asset-backed securities 57,469 (1,888) 9,881 (526) 67,350 (2,414) CLOs 312,368 (10,882) 284,003 (9,997) 596,371 (20,879) Total AFS debt securities $ 4,490,101 $ (408,561) $ 1,542,000 $ (228,797) $ 6,032,101 $ (637,358) ($ in thousands) December 31, 2021 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross AFS debt securities: U.S. Treasury securities $ 935,776 $ (14,689) $ 47,881 $ (1,998) $ 983,657 $ (16,687) U.S. government agency and U.S. government-sponsored enterprise debt securities 773,647 (18,000) 402,907 (16,710) 1,176,554 (34,710) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 440,734 (13,589) 257,745 (15,265) 698,479 (28,854) Residential mortgage-backed securities 2,138,542 (37,691) 330,522 (11,444) 2,469,064 (49,135) Municipal securities 177,065 (5,682) 17,003 (606) 194,068 (6,288) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 301,925 (4,158) 40,013 (1,319) 341,938 (5,477) Residential mortgage-backed securities 707,792 (8,966) 6,431 (11) 714,223 (8,977) Corporate debt securities 183,916 (3,084) 251,494 (13,505) 435,410 (16,589) Foreign government bonds 27,097 (5) 133,279 (3,476) 160,376 (3,481) Asset-backed securities 24,885 (301) — — 24,885 (301) CLOs 221,586 (64) 291,712 (2,288) 513,298 (2,352) Total AFS debt securities $ 5,932,965 $ (106,229) $ 1,778,987 $ (66,622) $ 7,711,952 $ (172,851) |
Schedule Of The Gross Realized Gains And Tax Expense Related To The Sales Of AFS Debt Securities | The following table presents the gross realized gains and tax expense related to the sales of AFS debt securities for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gross realized gains $ 28 $ 632 $ 1,306 $ 824 Related tax expense $ 8 $ 187 $ 386 $ 244 |
Schedule Of Contractual Maturities And Weighted Average Yields Of AFS And HTM Debt Securities | The following tables present the contractual maturities, amortized cost, fair value and weighted average yields of AFS and HTM debt securities as of June 30, 2022. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties. ($ in thousands) Within One Year After One Year through Five Years After Five Years through Ten Years After Ten Years Total AFS debt securities: U.S. Treasury securities Amortized cost $ — $ 576,626 $ 99,694 $ — $ 676,320 Fair value — 536,698 87,988 — 624,686 Weighted-average yield (1) — % 1.28 % 0.74 % — % 1.20 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost — 29,193 125,001 170,269 324,463 Fair value — 27,700 110,199 147,346 285,245 Weighted-average yield (1) — % 1.62 % 1.16 % 2.09 % 1.69 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Amortized cost — 13,289 192,287 2,505,898 2,711,474 Fair value — 13,205 182,832 2,278,035 2,474,072 Weighted-average yield (1) — % 3.11 % 2.69 % 2.11 % 2.15 % Municipal securities Amortized cost — 39,712 6,498 260,209 306,419 Fair value — 37,800 5,758 223,175 266,733 Weighted-average yield (1) (2) — % 2.47 % 1.79 % 2.23 % 2.25 % Non-agency mortgage-backed securities Amortized cost 10,019 196,136 40,404 1,012,653 1,259,212 Fair value 9,894 189,963 39,224 899,676 1,138,757 Weighted-average yield (1) 4.47 % 3.56 % 1.19 % 2.23 % 2.42 % Corporate debt securities Amortized cost 10,000 — 334,502 329,000 673,502 Fair value 9,847 — 309,395 240,051 559,293 Weighted average yield (1) 3.26 % — % 3.59 % 1.98 % 2.80 % Foreign government bonds Amortized cost 108,712 44,406 50,000 50,000 253,118 Fair value 108,660 44,832 50,081 39,424 242,997 Weighted-average yield (1) 1.82 % 3.01 % 0.55 % 1.50 % 1.71 % Asset-backed securities: Amortized cost — — — 69,764 69,764 Fair value — — — 67,350 67,350 Weighted-average yield (1) — % — % — % 2.74 % 2.74 % CLOs Amortized cost — — — 617,250 617,250 Fair value — — — 596,371 596,371 Weighted average yield (1) — % — % — % 2.22 % 2.22 % Total AFS debt securities Amortized cost $ 128,731 $ 899,362 $ 848,386 $ 5,015,043 $ 6,891,522 Fair value $ 128,401 $ 850,198 $ 785,477 $ 4,491,428 $ 6,255,504 Weighted-average yield (1) 2.14 % 1.95 % 2.39 % 2.15 % 2.15 % ($ in thousands) Within One Year After One Year through Five Years After Five Years through Ten Years After Ten Years Total HTM debt securities: U.S. Treasury securities Amortized cost $ — $ 166,856 $ 354,496 $ — $ 521,352 Fair value — 156,200 330,321 — 486,521 Weighted-average yield (1) — % 0.90 % 1.12 % — % 1.05 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost — — 213,101 784,268 997,369 Fair value — — 193,357 659,721 853,078 Weighted-average yield (1) — % — % 2.03 % 1.86 % 1.90 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities Amortized cost — — 87,264 1,232,238 1,319,502 Fair value — — 78,993 1,081,309 1,160,302 Weighted-average yield (1) — % — % 1.60 % 1.59 % 1.59 % Municipal securities Amortized cost — — — 190,079 190,079 Fair value — — — 156,648 156,648 Weighted-average yield (1) (2) — % — % — % 1.97 % 1.97 % Total HTM debt securities Amortized cost $ — $ 166,856 $ 654,861 $ 2,206,585 $ 3,028,302 Fair value $ — $ 156,200 $ 602,671 $ 1,897,678 $ 2,656,549 Weighted-average yield (1) — % 0.90 % 1.48 % 1.72 % 1.62 % (1) Weighted-average yields are computed based on amortized cost balances. (2) Yields on tax-exempt securities are not presented on a tax-equivalent basis. |
Schedule Of Restricted Equity Securities | The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Federal Reserve Bank of San Francisco (“FRBSF”) stock $ 60,712 $ 60,184 FHLB stock 17,250 17,250 Total restricted equity securities $ 77,962 $ 77,434 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Notional And Gross Fair Values Of Derivatives | The following table presents the notional amounts and gross fair values of the Company’s derivatives, as well as the balance sheet netting adjustments on an aggregate basis as of June 30, 2022 and December 31, 2021. The derivative assets and liabilities are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after applicable variation margin payments with central clearing organizations have been applied as settlement. Total derivative assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of June 30, 2022 and December 31, 2021. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet. ($ in thousands) June 30, 2022 December 31, 2021 Notional Fair Value Notional Fair Value Derivative Derivative Derivative Derivative Derivatives designated as hedging instruments: Cash flow hedges: Interest rate contracts $ 1,525,000 $ 586 $ 96 $ 275,000 $ — $ 57 Net investment hedges: Foreign exchange contracts 84,832 2,765 — 86,531 — 225 Total derivatives designated as hedging instruments $ 1,609,832 $ 3,351 $ 96 $ 361,531 $ — $ 282 Derivatives not designated as hedging instruments: Interest rate contracts $ 17,570,112 $ 260,740 $ 359,578 $ 17,575,420 $ 240,222 $ 179,905 Foreign exchange contracts 2,654,194 39,559 29,144 1,874,681 21,033 15,276 Credit contracts 121,784 — 76 72,560 — 141 Equity contracts — (1) 359 — — (1) 220 — Commodity contracts — (2) 404,275 373,675 — (2) 222,709 194,567 Total derivatives not designated as hedging instruments $ 20,346,090 $ 704,933 $ 762,473 $ 19,522,661 $ 484,184 $ 389,889 Gross derivative assets/liabilities $ 708,284 $ 762,569 $ 484,184 $ 390,171 Less: Master netting agreements (126,414) (126,414) (58,679) (58,679) Less: Cash collateral received/paid (125,304) — (42,274) (174,048) Net derivative assets/liabilities $ 456,566 $ 636,155 $ 383,231 $ 157,444 (1) The Company held equity contracts in one public company and 13 private companies as of June 30, 2022. In comparison, the Company held equity contracts in one public company and 12 private companies as of December 31, 2021. (2) The notional amount of the Company’s commodity contracts entered with its customers totaled 8,211 thousand barrels of crude oil and 83,113 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2022. In comparison, the notional amount of the Company’s commodity contracts entered with its customers totaled 7,519 thousand barrels of crude oil and 83,274 thousand MMBTUs of natural gas as of December 31, 2021. The Company simultaneously entered into the offsetting commodity contracts with mirrored terms with third-party financial institutions. The following tables present the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Purchased options $ — $ — $ — Purchased options $ 1,513,842 $ 20,933 $ — Written options 1,481,552 — 19,760 Written options 32,290 — 1,076 Sold collars and corridors 187,168 9 5,040 Collars and corridors 187,168 5,071 9 Swaps 7,069,901 8,482 326,853 Swaps 7,098,191 226,245 6,840 Total $ 8,738,621 $ 8,491 $ 351,653 Total $ 8,831,491 $ 252,249 $ 7,925 ($ in thousands) December 31, 2021 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Written options $ 1,118,074 $ — $ 2,148 Purchased options $ 1,118,074 $ 2,159 $ — Sold collars and corridors 194,181 1,272 642 Collars and corridors 194,181 646 1,275 Swaps 7,460,836 211,727 39,650 Swaps 7,490,074 24,418 136,190 Total $ 8,773,091 $ 212,999 $ 42,440 Total $ 8,802,329 $ 27,223 $ 137,465 The following tables present the notional amounts and the gross fair values of foreign exchange derivative contracts outstanding as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Forwards and spots $ 954,101 $ 13,188 $ 19,119 Forwards and spots $ 310,784 $ 10,139 $ 2,014 Swaps 175,373 648 864 Swaps 1,163,410 15,061 6,624 Written options 20,000 170 312 Purchased options 20,000 312 170 Collars 5,263 — 41 Collars 5,263 41 — Total $ 1,154,737 $ 14,006 $ 20,336 Total $ 1,499,457 $ 25,553 $ 8,808 ($ in thousands) December 31, 2021 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Forwards and spots $ 900,290 $ 13,688 $ 9,446 Forwards and spots $ 267,689 $ 1,564 $ 2,695 Swaps 66,474 1,034 17 Swaps 599,654 4,745 3,116 Written options 20,287 1 — Purchased options 20,287 1 2 Total $ 987,051 $ 14,723 $ 9,463 Total $ 887,630 $ 6,310 $ 5,813 ($ in thousands) June 30, 2022 December 31, 2021 Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities RPAs — protection sold $ 121,784 $ — $ 76 $ 72,560 $ — $ 141 The following tables present the notional amounts and fair values of the commodity derivative positions outstanding as of June 30, 2022 and December 31, 2021: ($ and units in thousands) June 30, 2022 Customer Counterparty ($ and units in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Crude oil: Crude oil: Written options 1,205 Barrels $ 1,330 $ — Purchased options 1,205 Barrels $ — $ 1,154 Collars 3,218 Barrels 70,802 817 Collars 3,223 Barrels 288 65,988 Swaps 3,788 Barrels 105,189 2,658 Swaps 5,935 Barrels 43,075 133,723 Total 8,211 $ 177,321 $ 3,475 Total 10,363 $ 43,363 $ 200,865 Natural gas: Natural gas: Collars 28,206 MMBTUs 29,062 3,815 Collars 30,122 MMBTUs 2,999 28,390 Swaps 54,907 MMBTUs 98,480 6,478 Swaps 91,869 MMBTUs 53,050 130,652 Total 83,113 $ 127,542 $ 10,293 Total 121,991 $ 56,049 $ 159,042 Total $ 304,863 $ 13,768 Total $ 99,412 $ 359,907 ($ and units in thousands) December 31, 2021 Customer Counterparty ($ and units in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Crude oil: Crude oil: Written options — Barrels $ 87 $ — Purchased options — Barrels $ — $ 81 Collars 2,837 Barrels 33,826 106 Collars 2,888 Barrels — 33,399 Swaps 4,682 Barrels 71,242 60 Swaps 7,517 Barrels 27,524 82,723 Total 7,519 $ 105,155 $ 166 Total 10,405 $ 27,524 $ 116,203 Natural gas: Natural gas: Collars 24,315 MMBTUs $ 10,903 $ 458 Collars 25,929 MMBTUs $ 1,136 $ 10,936 Swaps 58,959 MMBTUs 49,188 3,775 Swaps 109,567 MMBTUs 28,803 63,029 Total 83,274 $ 60,091 $ 4,233 Total 135,496 $ 29,939 $ 73,965 Total $ 165,246 $ 4,399 Total $ 57,463 $ 190,168 |
Schedule Of Pre-Tax Changes In AOCI From Cash Flows Hedges | The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and six months ended June 30, 2022 and 2021. The after-tax impact of cash flow hedges on AOCI is discussed in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-Q. ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (Losses) gains recognized in AOCI: Interest rate contracts $ (7,837) $ (106) $ (40,446) $ 320 Gains (losses) reclassified from AOCI into earnings: Interest expense $ 308 $ (201) $ 135 $ (378) Interest income 812 — 3,085 — Total $ 1,120 $ (201) $ 3,220 $ (378) |
Tabular Disclosure Of Gains and Losses On Derivative Instruments Qualified And Designated In Net Investment Hedges | The following table presents the after-tax gains (losses) recognized in AOCI on net investment hedges for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gains (losses) recognized in AOCI $ 2,319 $ (1,643) $ 1,200 $ (1,543) |
Schedule Of The Net (Losses) Gains Recognized On The Company’s Consolidated Statement of Income Related To Derivatives Not Designated 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 and six months ended June 30, 2022 and 2021: ($ in thousands) Classification on Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives not designated as hedging instruments: Interest rate contracts Interest rate contracts and other derivative income (loss) $ 5,984 $ (5,338) $ 13,569 $ 8,563 Foreign exchange contracts Foreign exchange income (4,557) 11,972 2,765 22,215 Credit contracts Interest rate contracts and other derivative income (loss) (9) 150 65 195 Equity contracts Lending fees 93 74 187 385 Commodity contracts Interest rate contracts and other derivative income (loss) 344 (188) 295 (19) Net gains $ 1,855 $ 6,670 $ 16,881 $ 31,339 |
Schedule Of Gross Derivative Fair Values, The Balance Sheet Netting Adjustments And The Resulting Net Fair Values Recorded On The Consolidated Balance Sheet, As Well As The Cash and Non-Cash Collateral Associated With Master Netting Arrangements | The following tables present the gross derivative fair values, the balance sheet netting adjustments and the resulting net fair values recorded on the consolidated balance sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements with central counterparties, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability, after the application of netting; therefore, instances of overcollateralization are not shown: ($ in thousands) As of June 30, 2022 Gross Amounts Recognized (1) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Derivative assets $ 708,284 $ (126,414) $ (125,304) $ 456,566 $ — $ 456,566 Gross Amounts Recognized (2) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 762,569 $ (126,414) $ — $ 636,155 $ (118,694) $ 517,461 ($ in thousands) As of December 31, 2021 Gross Amounts Recognized (1) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Derivative assets $ 484,184 $ (58,679) $ (42,274) $ 383,231 $ — $ 383,231 Gross Amounts Recognized (2) Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Net Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 390,171 $ (58,679) $ (174,048) $ 157,444 $ (106,598) $ 50,846 (1) Includes $1.1 million and $587 thousand of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2022 and December 31, 2021, respectively. (2) Includes $517 thousand and $666 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2022 and December 31, 2021, respectively. (3) Gross cash collateral received under master netting arrangements or similar agreements were $141.9 million and $47.0 million as of June 30, 2022 and December 31, 2021, respectively. Of the gross cash collateral received, $125.3 million and $42.3 million were used to offset against derivative assets as of June 30, 2022 and December 31, 2021, respectively. (4) No cash collateral was pledged under master netting arrangements or similar agreements as of June 30, 2022. In comparison, cash collateral pledged under master netting arrangements or similar agreements was $176.5 million as of December 31, 2021, of which $174.0 million were used to offset against derivative liabilities as of December 31, 2021. (5) Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of noncash collateral on the consolidated balance sheet but requires the disclosure of such amounts. |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule Of Composition Of Loans Held-For-Investment | The following table presents the composition of the Company’s loans held-for-investment outstanding as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Commercial: C&I (1) $ 15,377,117 $ 14,150,608 CRE: CRE 13,566,748 12,155,047 Multifamily residential 4,443,704 3,675,605 Construction and land 515,857 346,486 Total CRE 18,526,309 16,177,138 Total commercial 33,903,426 30,327,746 Consumer: Residential mortgage: Single-family residential 10,234,473 9,093,702 HELOCs 2,280,080 2,144,821 Total residential mortgage 12,514,553 11,238,523 Other consumer 84,097 127,512 Total consumer 12,598,650 11,366,035 Total loans held-for-investment (2) $ 46,502,076 $ 41,693,781 Allowance for loan losses (563,270) (541,579) Loans held-for-investment, net (2) $ 45,938,806 $ 41,152,202 (1) Includes Paycheck Protection Program loans of $153.3 million and $534.2 million as of June 30, 2022 and December 31, 2021, respectively. (2) Includes $(56.2) million and $(50.7) million of net deferred loan fees and net unamortized premiums as of June 30, 2022 and December 31, 2021, respectively. |
Schedule Of Loans Held-For-Investment By Loan Portfolio Segments, Internal Risk Ratings And Vintage Year | The following tables summarize the Company’s loans held-for-investment by loan portfolio segments, internal risk ratings and vintage year as of June 30, 2022 and December 31, 2021. The vintage year is the year of origination, renewal or major modification. ($ in thousands) June 30, 2022 Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans Total 2022 2021 2020 2019 2018 Prior Commercial: C&I: Pass $ 1,632,575 $ 2,948,526 $ 769,887 $ 524,311 $ 170,119 $ 270,405 $ 8,656,225 $ 28,475 $ 15,000,523 Criticized (accrual) 64,608 43,748 50,746 32,574 24,206 19,222 101,437 — 336,541 Criticized (nonaccrual) 3,242 4,129 15,356 — 5,630 11,660 36 — 40,053 Total C&I 1,700,425 2,996,403 835,989 556,885 199,955 301,287 8,757,698 28,475 15,377,117 CRE: Pass 2,638,027 2,565,665 1,815,298 1,907,721 1,598,242 2,358,965 150,983 14,498 13,049,399 Criticized (accrual) 5,023 109,974 69,751 99,541 101,188 102,333 1,455 16,808 506,073 Criticized (nonaccrual) — 4,201 — — — 7,075 — — 11,276 Subtotal CRE 2,643,050 2,679,840 1,885,049 2,007,262 1,699,430 2,468,373 152,438 31,306 13,566,748 Multifamily residential: Pass 1,091,403 967,791 687,577 591,961 371,378 661,082 13,301 — 4,384,493 Criticized (accrual) — — 714 20,454 36,577 — — 57,745 Criticized (nonaccrual) — — — — — 1,466 — — 1,466 Subtotal multifamily residential 1,091,403 967,791 687,577 592,675 391,832 699,125 13,301 — 4,443,704 Construction and land: Pass 94,071 232,421 98,608 60,928 3,332 236 — — 489,596 Criticized (accrual) — 4,405 — 21,856 — — — 26,261 Criticized (nonaccrual) — — — — — — — — — Subtotal construction and land 94,071 232,421 103,013 60,928 25,188 236 — — 515,857 Total CRE 3,828,524 3,880,052 2,675,639 2,660,865 2,116,450 3,167,734 165,739 31,306 18,526,309 Total commercial 5,528,949 6,876,455 3,511,628 3,217,750 2,316,405 3,469,021 8,923,437 59,781 33,903,426 Consumer: Residential mortgage: Single-family residential: Pass (1) 1,983,527 2,565,374 1,903,821 1,194,265 898,768 1,655,824 — — 10,201,579 Criticized (accrual) — — 2,146 1,087 2,159 1,301 — — 6,693 Criticized (nonaccrual) (1) — — 753 2,778 8,504 14,166 — — 26,201 Total single-family residential mortgage 1,983,527 2,565,374 1,906,720 1,198,130 909,431 1,671,291 — — 10,234,473 HELOCs: Pass 929 6,114 6,859 1,253 2,088 13,340 2,081,521 157,658 2,269,762 Criticized (accrual) — — — — — 2 613 615 Criticized (nonaccrual) — 1,008 815 220 463 1,640 1,692 3,865 9,703 Total HELOCs 929 7,122 7,674 1,473 2,551 14,980 2,083,215 162,136 2,280,080 Total residential mortgage 1,984,456 2,572,496 1,914,394 1,199,603 911,982 1,686,271 2,083,215 162,136 12,514,553 Other consumer: Pass 1,211 13,072 5,258 — — 15,173 49,369 — 84,083 Criticized (accrual) 3 — — — — — — — 3 Criticized (nonaccrual) — — — — — — 11 — 11 Total other consumer 1,214 13,072 5,258 — — 15,173 49,380 — 84,097 Total consumer 1,985,670 2,585,568 1,919,652 1,199,603 911,982 1,701,444 2,132,595 162,136 12,598,650 Total by Risk Rating: Pass 7,441,743 9,298,963 5,287,308 4,280,439 3,043,927 4,975,025 10,951,399 200,631 45,479,435 Criticized (accrual) 69,634 153,722 127,048 133,916 169,863 159,433 102,894 17,421 933,931 Criticized (nonaccrual) 3,242 9,338 16,924 2,998 14,597 36,007 1,739 3,865 88,710 Total $ 7,514,619 $ 9,462,023 $ 5,431,280 $ 4,417,353 $ 3,228,387 $ 5,170,465 $ 11,056,032 $ 221,917 $ 46,502,076 ($ in thousands) December 31, 2021 Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans Total 2021 2020 2019 2018 2017 Prior Commercial: C&I: Pass $ 3,911,722 $ 1,133,085 $ 629,007 $ 187,195 $ 132,392 $ 225,326 $ 7,383,485 $ 28,842 $ 13,631,054 Criticized (accrual) 85,036 117,357 72,277 51,553 15,136 4,005 115,167 — 460,531 Criticized (nonaccrual) 29,456 2,792 513 517 9,301 16,444 — — 59,023 Total C&I 4,026,214 1,253,234 701,797 239,265 156,829 245,775 7,498,652 28,842 14,150,608 CRE: Pass 2,792,193 2,090,503 2,230,520 1,863,481 1,120,682 1,727,862 128,668 6,389 11,960,298 Criticized (accrual) 71,055 3,200 9,176 21,077 24,851 55,892 — — 185,251 Criticized (nonaccrual) 4,350 — — — 4,752 396 — — 9,498 Subtotal CRE 2,867,598 2,093,703 2,239,696 1,884,558 1,150,285 1,784,150 128,668 6,389 12,155,047 Multifamily residential: Pass 1,026,295 726,772 688,453 419,319 308,087 424,947 20,524 — 3,614,397 Criticized (accrual) — — 721 22,344 7,033 30,666 — — 60,764 Criticized (nonaccrual) — — — — — 444 — — 444 Subtotal multifamily residential 1,026,295 726,772 689,174 441,663 315,120 456,057 20,524 — 3,675,605 Construction and land: Pass 122,983 103,743 90,544 3,412 — 391 — — 321,073 Criticized (accrual) 3,355 — — 22,058 — — — — 25,413 Criticized (nonaccrual) — — — — — — — — — Subtotal construction and land 126,338 103,743 90,544 25,470 — 391 — — 346,486 Total CRE 4,020,231 2,924,218 3,019,414 2,351,691 1,465,405 2,240,598 149,192 6,389 16,177,138 Total commercial 8,046,445 4,177,452 3,721,211 2,590,956 1,622,234 2,486,373 7,647,844 35,231 30,327,746 Consumer: Residential mortgage: Single-family residential: Pass (1) 2,616,958 2,108,370 1,375,929 1,079,030 763,351 1,127,516 — — 9,071,154 Criticized (accrual) — — 458 2,813 1,899 3,212 — — 8,382 Criticized (nonaccrual) (1) — — 1,751 3,889 4,295 4,231 — — 14,166 Total single-family residential mortgage 2,616,958 2,108,370 1,378,138 1,085,732 769,545 1,134,959 — — 9,093,702 HELOCs: Pass 648 3,277 4,644 1,347 3,268 11,215 1,913,478 197,414 2,135,291 Criticized (accrual) — — — — — 371 7 708 1,086 Criticized (nonaccrual) — — 52 188 3,543 973 — 3,688 8,444 Total HELOCs 648 3,277 4,696 1,535 6,811 12,559 1,913,485 201,810 2,144,821 Total residential mortgage 2,617,606 2,111,647 1,382,834 1,087,267 776,356 1,147,518 1,913,485 201,810 11,238,523 Other consumer: Pass 16,831 5,258 — — 1,741 52,147 51,481 — 127,458 Criticized (accrual) 2 — — — — — — — 2 Criticized (nonaccrual) — — — — — — 52 — 52 Total other consumer 16,833 5,258 — — 1,741 52,147 51,533 — 127,512 Total consumer 2,634,439 2,116,905 1,382,834 1,087,267 778,097 1,199,665 1,965,018 201,810 11,366,035 Total by Risk Rating: Pass 10,487,630 6,171,008 5,019,097 3,553,784 2,329,521 3,569,404 9,497,636 232,645 40,860,725 Criticized (accrual) 159,448 120,557 82,632 119,845 48,919 94,146 115,174 708 741,429 Criticized (nonaccrual) 33,806 2,792 2,316 4,594 21,891 22,488 52 3,688 91,627 Total $ 10,680,884 $ 6,294,357 $ 5,104,045 $ 3,678,223 $ 2,400,331 $ 3,686,038 $ 9,612,862 $ 237,041 $ 41,693,781 (1) As of June 30, 2022 and December 31, 2021, $1.2 million and $1.6 million, respectively, of nonaccrual loans whose payments are guaranteed by the Federal Housing Administration were classified with a “Pass” rating. |
Schedule Of Aging Analysis Of Loans | The following tables present the aging analysis of total loans held-for-investment as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 Current Accruing Loans (1) Accruing Accruing Total Total Total Commercial: C&I $ 15,326,934 $ 10,097 $ 33 $ 10,130 $ 40,053 $ 15,377,117 CRE: CRE 13,554,820 451 201 652 11,276 13,566,748 Multifamily residential 4,441,408 830 — 830 1,466 4,443,704 Construction and land 515,857 — — — — 515,857 Total CRE 18,512,085 1,281 201 1,482 12,742 18,526,309 Total commercial 33,839,019 11,378 234 11,612 52,795 33,903,426 Consumer: Residential mortgage: Single-family residential 10,186,333 13,718 6,996 20,714 27,426 10,234,473 HELOCs 2,263,510 6,254 613 6,867 9,703 2,280,080 Total residential mortgage 12,449,843 19,972 7,609 27,581 37,129 12,514,553 Other consumer 83,988 92 6 98 11 84,097 Total consumer 12,533,831 20,064 7,615 27,679 37,140 12,598,650 Total $ 46,372,850 $ 31,442 $ 7,849 $ 39,291 $ 89,935 $ 46,502,076 ($ in thousands) December 31, 2021 Current Accruing Loans (1) Accruing Accruing Total Total Total Commercial: C&I $ 14,080,516 $ 6,983 $ 4,086 $ 11,069 $ 59,023 $ 14,150,608 CRE: CRE 12,141,827 3,722 — 3,722 9,498 12,155,047 Multifamily residential 3,669,819 5,320 22 5,342 444 3,675,605 Construction and land 346,486 — — — — 346,486 Total CRE 16,158,132 9,042 22 9,064 9,942 16,177,138 Total commercial 30,238,648 16,025 4,108 20,133 68,965 30,327,746 Consumer: Residential mortgage: Single-family residential 9,059,222 10,191 8,569 18,760 15,720 9,093,702 HELOCs 2,130,523 4,776 1,078 5,854 8,444 2,144,821 Total residential mortgage 11,189,745 14,967 9,647 24,614 24,164 11,238,523 Other consumer 127,352 99 9 108 52 127,512 Total consumer 11,317,097 15,066 9,656 24,722 24,216 11,366,035 Total $ 41,555,745 $ 31,091 $ 13,764 $ 44,855 $ 93,181 $ 41,693,781 (1) As of both June 30, 2022 and December 31, 2021, loans in payment deferral programs offered in response to the Coronavirus Disease 2019 (“COVID-19”) pandemic that are performing according to their modified terms are generally not considered delinquent, and are included in the “Current Accruing Loans” column. |
Schedule Of Amortized Cost Of Loans On Nonaccrual Status With No Related Allowance For Loan Losses | The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of both June 30, 2022 and December 31, 2021. Nonaccrual loans may not have an allowance for credit losses since there is no loss expectation when the loan balances are well-secured by the collateral value. ($ in thousands) June 30, 2022 December 31, 2021 Commercial: C&I $ 18,251 $ 22,967 CRE 10,956 9,102 Multifamily residential 1,055 — Total commercial 30,262 32,069 Consumer: Single-family residential 12,952 5,785 HELOCs 5,351 5,033 Total consumer 18,303 10,818 Total nonaccrual loans with no related allowance for loan losses $ 48,565 $ 42,887 |
Summary Of Additions And Post-Modification to Troubled Debt Restructurings | The following tables present the additions to TDRs for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Loans Modified as TDRs During the Three Months Ended June 30, 2022 2021 Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 2 $ 12,955 $ 12,245 $ 2,111 4 $ 20,375 $ 20,084 $ 2,162 Total 2 $ 12,955 $ 12,245 $ 2,111 4 $ 20,375 $ 20,084 $ 2,162 ($ in thousands) Loans Modified as TDRs During the Six Months Ended June 30, 2022 2021 Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 3 $ 30,134 $ 21,428 $ 10,157 5 $ 20,818 $ 20,499 $ 2,318 Total 3 $ 30,134 $ 21,428 $ 10,157 5 $ 20,818 $ 20,499 $ 2,318 (1) Includes subsequent payments after modification and reflects the balance as of June 30, 2022 and 2021. (2) Includes charge-offs and specific reserves recorded since the modification date. The following tables present the TDR post-modification outstanding balances by the primary modification type for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Modification Type During the Three Months Ended June 30, 2022 2021 Principal (1) Interest Rate Reduction Other (2) Total Principal (1) Interest Rate Reduction Other Total Commercial: C&I $ — $ — $ 12,245 $ 12,245 $ 3,373 $ 16,711 $ — $ 20,084 Total $ — $ — $ 12,245 $ 12,245 $ 3,373 $ 16,711 $ — $ 20,084 ($ in thousands) Modification Type During the Six Months Ended June 30, 2022 2021 Principal (1) Interest Rate Reduction Other (2) Total Principal (1) Interest Rate Reduction Other Total Commercial: C&I $ 9,183 $ — $ 12,245 $ 21,428 $ 3,788 $ 16,711 $ — $ 20,499 Total $ 9,183 $ — $ 12,245 $ 21,428 $ 3,788 $ 16,711 $ — $ 20,499 (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. |
Summary Of TDR Loans Subsequently Defaulted | The following tables present information on loans that entered into default during the three and six months ended June 30, 2022 and 2021, that were modified as TDRs during the 12 months preceding payment default: ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2022 2021 Number of Recorded Number of Recorded Commercial: C&I 1 $ 1,055 — $ — Total 1 $ 1,055 — $ — ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2022 2021 Number of Recorded Number of Recorded Commercial: C&I 2 $ 4,305 1 $ 11,431 Total 2 $ 4,305 1 $ 11,431 |
Financing Receivable Credit Quality Indicators, Key Credit Risk Characteristics and Macroeconomic Variables | The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment: Portfolio Segment Risk Characteristics Macroeconomic Variables C&I Age (1) , size and spread at origination, and risk rating Volatility Index (“VIX”) and BBB yield to 10-year U.S. Treasury spread (“BBB Spread”) (1) CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates Single-family residential and HELOCs FICO score, delinquency status, maturity date, collateral value, and geographic location Unemployment rate, GDP, and home price index Other consumer Historical loss experience Immaterial (2) (1) Due to the model enhancements during the third quarter of 2021, the risk characteristic related to “time-to-maturity” was changed to “age”; while macroeconomic variables related to “unemployment rate and two- and ten-year U.S. Treasury spread” were changed to “VIX and BBB Spread”. (2) Macroeconomic variables are included in the qualitative estimate. |
Summary Of Activity In The Allowance For Credit Losses | The following tables summarize the activities in the allowance for loan losses by portfolio segments for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, 2022 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 339,446 $ 147,104 $ 24,176 $ 11,016 $ 18,210 $ 3,748 $ 1,985 $ 545,685 Provision for (reversal of) credit losses on loans (a) 19,030 (6,819) 1,976 (4,338) 3,461 (339) (502) 12,469 Gross charge-offs (240) (671) (8) — — (193) (34) (1,146) Gross recoveries 6,514 631 408 4 169 4 — 7,730 Total net recoveries (charge-offs) 6,274 (40) 400 4 169 (189) (34) 6,584 Foreign currency translation adjustment (1,468) — — — — — — (1,468) Allowance for loan losses, end of period $ 363,282 $ 140,245 $ 26,552 $ 6,682 $ 21,840 $ 3,220 $ 1,449 $ 563,270 ($ in thousands) Three Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 394,084 $ 146,399 $ 27,407 $ 19,089 $ 15,839 $ 2,670 $ 2,018 $ 607,506 (Reversal of) provision for credit losses on loans (a) (22,605) 19,375 (5,385) (3,243) 609 250 2,209 (8,790) Gross charge-offs (10,572) (4,134) (113) (209) — — (32) (15,060) Gross recoveries 1,338 322 16 6 82 18 3 1,785 Total net (charge-offs) recoveries (9,234) (3,812) (97) (203) 82 18 (29) (13,275) Foreign currency translation adjustment 283 — — — — — — 283 Allowance for loan losses, end of period $ 362,528 $ 161,962 $ 21,925 $ 15,643 $ 16,530 $ 2,938 $ 4,198 $ 585,724 ($ in thousands) Six Months Ended June 30, 2022 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 338,252 $ 150,940 $ 14,400 $ 15,468 $ 17,160 $ 3,435 $ 1,924 $ 541,579 Provision for (reversal of) credit losses on loans (a) 28,292 (10,312) 11,633 (8,844) 4,387 (40) (395) 24,721 Gross charge-offs (11,428) (1,069) (9) — — (193) (80) (12,779) Gross recoveries 9,516 686 528 58 293 18 — 11,099 Total net (charge-offs) recoveries (1,912) (383) 519 58 293 (175) (80) (1,680) Foreign currency translation adjustment (1,350) — — — — — — (1,350) Allowance for loan losses, end of period $ 363,282 $ 140,245 $ 26,552 $ 6,682 $ 21,840 $ 3,220 $ 1,449 $ 563,270 ($ in thousands) Six Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 398,040 $ 163,791 $ 27,573 $ 10,239 $ 15,520 $ 2,690 $ 2,130 $ 619,983 (Reversal of) provision for credit losses on loans (a) (18,763) 9,098 (6,776) 5,349 985 272 2,096 (7,739) Gross charge-offs (19,008) (11,329) (130) (280) (134) (45) (33) (30,959) Gross recoveries 2,098 402 1,258 335 159 21 5 4,278 Total net (charge-offs) recoveries (16,910) (10,927) 1,128 55 25 (24) (28) (26,681) Foreign currency translation adjustment 161 — — — — — — 161 Allowance for loan losses, end of period $ 362,528 $ 161,962 $ 21,925 $ 15,643 $ 16,530 $ 2,938 $ 4,198 $ 585,724 and 2021 : ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Unfunded credit facilities Allowance for unfunded credit commitments, beginning of period $ 23,262 $ 32,529 $ 27,514 $ 33,577 Provision for (reversal of) credit losses on unfunded credit commitments (b) 1,031 (6,210) (3,221) (7,261) Foreign currency translation adjustment 11 (19) 11 (16) Allowance for unfunded credit commitments, end of period 24,304 26,300 24,304 26,300 Provision for (reversal of) credit losses (a) + (b) $ 13,500 $ (15,000) $ 21,500 $ (15,000) |
Schedule Of Carrying Value Of Loans Purchased For The Held-For-Investment Portfolio, Loans Sold and Loans Transferred | The following tables provide information on the carrying value of loans transferred, loans sold and purchased for the held-for-investment portfolio, during the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, 2022 Commercial Consumer Total C&I CRE Residential Mortgage CRE Multifamily Single-Family Loans transferred from held-for-investment to held-for-sale (1) $ 208,335 $ 9,854 $ — $ — $ 218,189 Loans transferred from held-for-sale to held-for-investment $ — $ — $ — $ 631 $ 631 Sales (2)(3)(4) $ 180,029 $ 9,854 $ — $ — $ 189,883 Purchases (5) $ 194,066 $ — $ — $ 122,723 $ 316,789 ($ in thousands) Three Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage CRE Multifamily Single-Family Loans transferred from held-for-investment to held-for-sale (1) $ 84,745 $ 17,019 $ — $ — $ 101,764 Sales (2)(3)(4) $ 84,503 $ 17,019 $ — $ 2,658 $ 104,180 Purchases (5) $ 66,415 $ — $ — $ 165,163 $ 231,578 ($ in thousands) Six Months Ended June 30, 2022 Commercial Consumer Total C&I CRE Residential Mortgage CRE Multifamily Single-Family Loans transferred from held-for-investment to held-for-sale (1) $ 319,772 $ 31,634 $ — $ — $ 351,406 Loans transferred from held-for-sale to held-for-investment $ — $ — $ — $ 631 $ 631 Sales (2)(3)(4) $ 287,503 $ 31,634 $ — $ 451 $ 319,588 Purchases (5) $ 304,662 $ — $ — $ 237,098 $ 541,760 ($ in thousands) Six Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage CRE Multifamily Single-Family Loans transferred from held-for-investment to held-for-sale (1) $ 210,585 $ 37,051 $ — $ — $ 247,636 Sales (2)(3)(4) $ 210,382 $ 37,051 $ — $ 10,164 $ 257,597 Purchases (5) $ 245,093 $ — $ 370 $ 296,963 $ 542,426 (1) Includes write-downs of $158 thousand and $217 thousand to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three and six months ended June 30, 2022 and $1.3 million for the three and six months ended June 30, 2021. (2) Includes originated loans sold of $55.4 million and $167.7 million for the three and six months ended June 30, 2022, respectively, and $67.6 million and $198.6 million for the three and six months ended June 30, 2021, respectively. Originated loans sold consisted primarily of C&I loans for each of the three and six months ended June 30, 2022 and 2021. (3) Includes $134.5 million and $151.9 million of purchased loans sold in the secondary market for the three and six months ended June 30, 2022, respectively and $36.6 million and $59.0 million for the three and six months ended June 30, 2021, respectively. (4) Net gains on sales of loans were $917 thousand and $3.8 million for the three and six months ended June 30, 2022, respectively, and $1.5 million and $3.3 million for the three and six months ended June 30, 2021, respectively. (5) C&I loan purchases were comprised primarily of syndicated C&I term loans. |
Investments in Qualified Affo_2
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities [Abstract] | |
Schedule of Investments in Qualified Affordable Housing Partnerships, Net and Related Unfunded Commitments | The following table presents the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Investments in qualified affordable housing partnerships, net $ 319,484 $ 289,741 Accrued expenses and other liabilities — Unfunded commitments $ 178,714 $ 146,152 |
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 and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Tax credits and other tax benefits recognized $ 12,754 $ 11,319 $ 25,584 $ 22,722 Amortization expense included in income tax expense $ 10,042 $ 7,736 $ 20,067 $ 16,448 |
Schedule of Investment in Tax Credit and Other Investments, Net and Related Unfunded Commitments | The following table presents the Company’s investments in tax credit and other investments, net, and related unfunded commitments as of June 30, 2022 and December 31, 2021: ($ in thousands) June 30, 2022 December 31, 2021 Investments in tax credit and other investments, net $ 314,820 $ 338,522 Accrued expenses and other liabilities — Unfunded commitments $ 144,272 $ 163,464 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Credit-Related Commitments | The following table presents the Company’s credit-related commitments as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 ($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Loan commitments $ 3,642,119 $ 2,880,229 $ 963,277 $ 139,623 $ 7,625,248 $ 6,911,398 Commercial letters of credit and SBLCs 1,080,377 342,243 111,182 732,561 2,266,363 2,221,699 Total $ 4,722,496 $ 3,222,472 $ 1,074,459 $ 872,184 $ 9,891,611 $ 9,133,097 |
Schedule of Guarantees Outstanding | The following table presents the carrying amounts of loans sold or securitized with recourse and the maximum potential future payments as of June 30, 2022 and December 31, 2021: ($ in thousands) Maximum Potential Future Payments Carrying Value June 30, December 31, June 30, December 31, Expire in One Year or Less Expire Expire Expire After Five Years Total Total Total Total Single-family residential loans sold or securitized with recourse $ 12 $ 174 $ 32 $ 6,897 $ 7,115 $ 7,926 $ 7,115 $ 7,926 Multifamily residential loans sold or securitized with recourse — — — 14,996 14,996 14,996 22,089 23,169 Total $ 12 $ 174 $ 32 $ 21,893 $ 22,111 $ 22,922 $ 29,204 $ 31,095 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [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 benefits associated with the Company’s various employee share-based compensation plans for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Stock compensation costs $ 8,576 $ 8,208 $ 17,009 $ 16,025 Related net tax benefits for stock compensation plans $ 109 $ 37 $ 5,268 $ 1,657 |
Summary of Activity for Time-Based and Performance-Based Restricted Stock Units | The following table presents a summary of the activities for the Company’s time-based and performance-based RSUs that will be settled in shares for the six months ended June 30, 2022. The number of performance-based RSUs stated below reflects the number of awards granted on the grant date. Time-Based RSUs Performance-Based RSUs Shares Weighted- Shares Weighted- Outstanding, January 1, 2022 1,329,946 $ 52.65 369,731 $ 54.28 Modified from cash-settled RSUs 31,523 77.28 — — Granted 409,065 52.97 91,874 77.91 Vested (370,018) 53.11 (125,213) 54.64 Forfeited (68,084) 61.50 — — Outstanding, June 30, 2022 1,332,432 $ 52.76 336,392 $ 60.60 |
Summary of Time-Based RUS's That Will be Settled in Cash | The following table presents a summary of the activities for the Company’s time-based RSUs that are cash-settled for the six months ended June 30, 2022. During the six months ended June 30, 2022, the amount of cash paid to settle the RSUs that vested was $318 thousand. Shares Outstanding, January 1, 2022 32,647 Modified to share-settled RSUs (31,523) Granted 2,668 Vested (3,471) Forfeited (321) Outstanding, June 30, 2022 — |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Calculations | The following table presents the basic and diluted EPS calculations for the three and six months ended June 30, 2022 and 2021. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements of the Company’s 2021 Form 10-K. ($ and shares in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic: Net income $ 258,329 $ 224,742 $ 495,981 $ 429,736 Weighted-average number of shares outstanding 141,429 141,868 141,725 141,758 Basic EPS $ 1.83 $ 1.58 $ 3.50 $ 3.03 Diluted: Net income $ 258,329 $ 224,742 $ 495,981 $ 429,736 Weighted-average number of shares outstanding 141,429 141,868 141,725 141,758 Add: Dilutive impact of unvested RSUs 943 1,172 1,113 1,205 Diluted weighted-average number of shares outstanding 142,372 143,040 142,838 142,963 Diluted EPS $ 1.81 $ 1.57 $ 3.47 $ 3.01 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule Of The Changes In Components Of Accumulated Other Comprehensive Income (Loss) Balances | The following tables present the changes in the components of AOCI balances for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Debt Cash Foreign Currency Translation Adjustments (1) Total Balance, April 1, 2021 $ (81,201) $ (798) $ (8,041) $ (90,040) Net unrealized gains (losses) arising during the period 73,494 (76) 2,234 75,652 Amounts reclassified from AOCI (445) 144 — (301) Changes, net of tax 73,049 68 2,234 75,351 Balance, June 30, 2021 $ (8,152) $ (730) $ (5,807) $ (14,689) Balance, April 1, 2022 $ (365,653) (2) $ (24,466) $ (4,806) $ (394,925) Net unrealized losses arising during the period (192,858) (5,582) (10,215) (208,655) Amounts reclassified from AOCI 3,730 (798) — 2,932 Changes, net of tax (189,128) (6,380) (10,215) (205,723) Balance, June 30, 2022 $ (554,781) $ (30,846) $ (15,021) $ (600,648) ($ in thousands) Debt Cash Foreign Currency Translation Adjustments (1) Total Balance, January 1, 2021 $ 52,247 $ (1,230) $ (6,692) $ 44,325 Net unrealized (losses) gains arising during the period (59,819) 229 885 (58,705) Amounts reclassified from AOCI (580) 271 — (309) Changes, net of tax (60,399) 500 885 (59,014) Balance, June 30, 2021 $ (8,152) $ (730) $ (5,807) $ (14,689) Balance, January 1, 2022 $ (85,703) $ 257 $ (4,935) $ (90,381) Net unrealized losses arising during the period (474,219) (28,809) (10,086) (513,114) Amounts reclassified from AOCI 5,141 (2,294) — 2,847 Changes, net of tax (469,078) (31,103) (10,086) (510,267) Balance, June 30, 2022 $ (554,781) (2) $ (30,846) $ (15,021) $ (600,648) (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 RMB and USD, respectively. (2) Includes after-tax unamortized losses of $113.0 million related to AFS debt securities that were transferred to HTM. For further information, refer to Note 5 — Securities to the Consolidated Financial Statements in this Form 10-Q. |
Schedule Of Components Of Other Comprehensive Income (Loss), Reclassifications To Net Income And The Related Tax Effects | The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, 2022 2021 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: Net unrealized (losses) gains arising during the period $ (273,840) $ 80,982 $ (192,858) $ 104,283 $ (30,789) $ 73,494 Reclassification adjustments: Net realized (gains) reclassified into net income (1) (28) 8 (20) (632) 187 (445) Amortization of unrealized losses on transferred securities (2) 5,324 (1,574) 3,750 — — — Net change (268,544) 79,416 (189,128) 103,651 (30,602) 73,049 Cash flow hedges: Net unrealized (losses) gains arising during the period (7,837) 2,255 (5,582) (106) 30 (76) Net realized (gains) losses reclassified into net income (3) (1,120) 322 (798) 201 (57) 144 Net change (8,957) 2,577 (6,380) 95 (27) 68 Foreign currency translation adjustments, net of hedges: Net unrealized (losses) gains arising during the period (9,278) (937) (10,215) 1,584 650 2,234 Net change (9,278) (937) (10,215) 1,584 650 2,234 Other comprehensive (loss) income $ (286,779) $ 81,056 $ (205,723) $ 105,330 $ (29,979) $ 75,351 ($ in thousands) Six Months Ended June 30, 2022 2021 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: Net unrealized losses arising during the period $ (673,302) $ 199,083 $ (474,219) $ (84,993) $ 25,174 $ (59,819) Reclassification adjustments: Net realized (gains) reclassified into net income (1) (1,306) 386 (920) (824) 244 (580) Amortization of unrealized losses on transferred securities (2) 8,605 (2,544) 6,061 — — — Net change (666,003) 196,925 (469,078) (85,817) 25,418 (60,399) Cash flow hedges: Net unrealized (losses) gains arising during the period (40,446) 11,637 (28,809) 320 (91) 229 Net realized (gains) losses reclassified into net income (3) (3,220) 926 (2,294) 378 (107) 271 Net change (43,666) 12,563 (31,103) 698 (198) 500 Foreign currency translation adjustments, net of hedges: Net unrealized (losses) gains arising during the period (9,600) (486) (10,086) 275 610 885 Net change (9,600) (486) (10,086) 275 610 885 Other comprehensive loss $ (719,269) $ 209,002 $ (510,267) $ (84,844) $ 25,830 $ (59,014) (1) For the three and six months ended June 30, 2022 and 2021, pre-tax amounts were reported in Gains on sales of AFS debt securities on the Consolidated Statement of Income. (2) Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio. (3) For the three and six months ended June 30, 2022 and 2021, pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income. |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule Of Operating Results And Other Key Financial Measures For The Individual 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 and six months ended June 30, 2022 and 2021: ($ in thousands) Consumer and Commercial Other Total Three Months Ended June 30, 2022 Net interest income (loss) before provision for credit losses $ 284,373 $ 230,964 $ (42,385) $ 472,952 Provision for credit losses 2,898 10,602 — 13,500 Noninterest income 28,384 48,032 2,028 78,444 Noninterest expense 94,295 81,023 21,542 196,860 Segment income (loss) before income taxes 215,564 187,371 (61,899) 341,036 Segment net income (loss) $ 153,549 $ 133,861 $ (29,081) $ 258,329 As of June 30, 2022 Segment assets $ 16,472,373 $ 32,256,044 $ 13,665,866 $ 62,394,283 ($ in thousands) Consumer and Commercial Other Total Three Months Ended June 30, 2021 Net interest income before provision for (reversal of) credit losses $ 173,775 $ 192,696 $ 10,002 $ 376,473 Provision for (reversal of) credit losses 2,358 (17,358) — (15,000) Noninterest income (1) 24,332 32,674 11,425 68,431 Noninterest expense 87,650 64,164 37,709 189,523 Segment income (loss) before income taxes (1) 108,099 178,564 (16,282) 270,381 Segment net income (1) $ 77,429 $ 127,873 $ 19,440 $ 224,742 As of June 30, 2021 Segment assets $ 14,594,087 $ 27,354,253 $ 17,906,536 $ 59,854,876 ($ in thousands) Consumer and Commercial Other Total Six Months Ended June 30, 2022 Net interest income (loss) before provision for credit losses $ 497,587 $ 439,041 $ (48,063) $ 888,565 Provision for credit losses 6,002 15,498 — 21,500 Noninterest income 53,583 97,109 7,495 158,187 Noninterest expense 190,390 154,418 41,502 386,310 Segment income (loss) before income taxes 354,778 366,234 (82,070) 638,942 Segment net income (loss) $ 252,713 $ 261,368 $ (18,100) $ 495,981 As of June 30, 2022 Segment assets $ 16,472,373 $ 32,256,044 $ 13,665,866 $ 62,394,283 ($ in thousands) Consumer and Commercial Other Total Six Months Ended June 30, 2021 Net interest income before reversal of credit losses $ 323,674 $ 369,788 $ 36,706 $ 730,168 Reversal of credit losses (1,891) (13,109) — (15,000) Noninterest income (1) 47,774 80,070 13,453 141,297 Noninterest expense 176,936 133,421 70,243 380,600 Segment income (loss) before income taxes (1) 196,403 329,546 (20,084) 505,865 Segment net income (1) $ 140,680 $ 236,080 $ 52,976 $ 429,736 As of June 30, 2021 Segment assets $ 14,594,087 $ 27,354,253 $ 17,906,536 $ 59,854,876 (1) During the fourth quarter of 2021, the Company enhanced its segment allocation methodology related to the fair values of interest rate and commodity derivative contracts, which are included in noninterest income. These fair values, which were previously allocated to the “ Commercial Banking ” segment prior to the fourth quarter of 2021, have since been reclassified between “ Consumer and Business Banking ” and “ Commercial Banking .” Balances for the second quarter and first half of 2021 have been reclassified to reflect these allocation changes for comparability. |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2022 trust |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly-owned subsidiaries that are statutory business trusts (the Trusts) | 6 |
Current Accounting Developmen_3
Current Accounting Developments and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Fair value of debt securities from AFS to HTM | $ 3,010 |
Fair Value Measurement and Fa_3
Fair Value Measurement and Fair Value of Financial Instruments - Financial Assets and Liabilities Measurement on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-sale debt securities | ||
Fair Value | $ 6,255,504 | $ 9,965,353 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Total investments in tax credit and other investments | 634,304 | 628,263 |
Derivative | ||
Derivative assets - Fair value | 708,284 | 484,184 |
Net derivative assets | 456,566 | 383,231 |
Derivative liabilities - Fair value | 762,569 | 390,171 |
Net derivative liabilities | 636,155 | 157,444 |
U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 624,686 | 1,032,681 |
U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 285,245 | 1,301,971 |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 563,832 | 1,228,980 |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,910,240 | 2,928,283 |
Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 266,733 | 523,158 |
Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 411,768 | 496,443 |
Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 726,989 | 881,931 |
Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 559,293 | 649,665 |
Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 242,997 | 257,733 |
Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 67,350 | 74,558 |
Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 596,371 | 589,950 |
Fair Value, Measurements, Recurring | ||
Available-for-sale debt securities | ||
Fair Value | 6,255,504 | 9,965,353 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Equity securities | 24,775 | 26,604 |
Total investments in tax credit and other investments | 24,775 | 26,604 |
Derivative | ||
Derivative assets - Fair value | 708,284 | 484,184 |
Netting adjustments | (251,718) | (100,953) |
Net derivative assets | 456,566 | 383,231 |
Derivative liabilities - Fair value | 762,569 | 390,171 |
Netting adjustments | (126,414) | (232,727) |
Net derivative liabilities | 636,155 | 157,444 |
Fair Value, Measurements, Recurring | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 261,326 | 240,222 |
Derivative liabilities - Fair value | 359,674 | 179,962 |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 42,324 | 21,033 |
Derivative liabilities - Fair value | 29,144 | 15,501 |
Fair Value, Measurements, Recurring | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 359 | 220 |
Fair Value, Measurements, Recurring | Credit contracts | ||
Derivative | ||
Derivative liabilities - Fair value | 76 | 141 |
Fair Value, Measurements, Recurring | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 404,275 | 222,709 |
Derivative liabilities - Fair value | 373,675 | 194,567 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 624,686 | 1,032,681 |
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 285,245 | 1,301,971 |
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 563,832 | 1,228,980 |
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,910,240 | 2,928,283 |
Fair Value, Measurements, Recurring | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 266,733 | 523,158 |
Fair Value, Measurements, Recurring | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 411,768 | 496,443 |
Fair Value, Measurements, Recurring | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 726,989 | 881,931 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 559,293 | 649,665 |
Fair Value, Measurements, Recurring | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 242,997 | 257,733 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 67,350 | 74,558 |
Fair Value, Measurements, Recurring | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 596,371 | 589,950 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Available-for-sale debt securities | ||
Fair Value | 624,686 | 1,032,681 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Equity securities | 20,463 | 22,130 |
Total investments in tax credit and other investments | 20,463 | 22,130 |
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Netting adjustments | 0 | 0 |
Net derivative assets | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Netting adjustments | 0 | 0 |
Net derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Credit contracts | ||
Derivative | ||
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 624,686 | 1,032,681 |
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 | ||
Available-for-sale debt securities | ||
Fair Value | 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 | ||
Available-for-sale debt securities | ||
Fair Value | 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 | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Available-for-sale debt securities | ||
Fair Value | 5,630,818 | 8,932,672 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Equity securities | 4,312 | 4,474 |
Total investments in tax credit and other investments | 4,312 | 4,474 |
Derivative | ||
Derivative assets - Fair value | 707,927 | 483,969 |
Netting adjustments | (251,718) | (100,953) |
Net derivative assets | 456,209 | 383,016 |
Derivative liabilities - Fair value | 762,569 | 390,171 |
Netting adjustments | (126,414) | (232,727) |
Net derivative liabilities | 636,155 | 157,444 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 261,326 | 240,222 |
Derivative liabilities - Fair value | 359,674 | 179,962 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 42,324 | 21,033 |
Derivative liabilities - Fair value | 29,144 | 15,501 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 2 | 5 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Credit contracts | ||
Derivative | ||
Derivative liabilities - Fair value | 76 | 141 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 404,275 | 222,709 |
Derivative liabilities - Fair value | 373,675 | 194,567 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 285,245 | 1,301,971 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 563,832 | 1,228,980 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,910,240 | 2,928,283 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 266,733 | 523,158 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 411,768 | 496,443 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 726,989 | 881,931 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 559,293 | 649,665 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 242,997 | 257,733 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 67,350 | 74,558 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 596,371 | 589,950 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Equity securities | 0 | 0 |
Total investments in tax credit and other investments | 0 | 0 |
Derivative | ||
Derivative assets - Fair value | 357 | 215 |
Netting adjustments | 0 | 0 |
Net derivative assets | 357 | 215 |
Derivative liabilities - Fair value | 0 | 0 |
Netting adjustments | 0 | 0 |
Net derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 357 | 215 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Credit contracts | ||
Derivative | ||
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 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 | ||
Available-for-sale debt securities | ||
Fair Value | 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 | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | $ 0 | $ 0 |
Fair Value Measurement and Fa_4
Fair Value Measurement and Fair Value of Financial Instruments - Reconciliation of Assets and Liabilities Measured on Recurring Basis (Details) - Equity contracts - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lending fees | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Total unrealized gains (losses) for the period included in earnings | $ 48 | $ (27) | $ 51 | $ (29) |
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 309 | 272 | 215 | 273 |
Total gains included in earnings | 48 | 47 | 51 | 46 |
Issuances | 0 | 0 | 91 | 0 |
Settlements | 0 | (96) | 0 | (96) |
Ending balance | $ 357 | $ 223 | $ 357 | $ 223 |
Fair Value Measurement and Fa_5
Fair Value Measurement and Fair Value of Financial Instruments - Quantitative Information for Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Quantitative information | ||
Derivative assets - Fair value | $ 708,284 | $ 484,184 |
Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Derivative assets - Fair value | 708,284 | 484,184 |
Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 87,953 | 126,984 |
Level 3 | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Derivative assets - Fair value | 357 | 215 |
Level 3 | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 87,953 | 126,984 |
Level 3 | Discounted cash flows | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 36,889 | 64,919 |
Level 3 | Fair value of collateral | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 19,293 | 38,537 |
Level 3 | Fair value of property | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | $ 31,771 | $ 23,528 |
Discount | Level 3 | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Minimum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 4% | 4% |
Discount | Level 3 | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Maximum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 6% | 15% |
Discount | Level 3 | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 4% | 7% |
Discount | Level 3 | Fair value of collateral | Fair Value, Measurements, Nonrecurring | Minimum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 15% | 15% |
Discount | Level 3 | Fair value of collateral | Fair Value, Measurements, Nonrecurring | Maximum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 77% | 75% |
Discount | Level 3 | Fair value of collateral | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 37% | 41% |
Selling cost | Level 3 | Fair value of property | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 8% | 8% |
Selling cost | Level 3 | Fair value of property | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 8% | 8% |
Equity contracts | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Derivative assets - Fair value | $ 359 | $ 220 |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Derivative assets - Fair value | $ 357 | $ 215 |
Equity contracts | Equity volatility | Level 3 | Black-Scholes option pricing model | Fair Value, Measurements, Recurring | Minimum | ||
Quantitative information | ||
Measurement input | 46% | 44% |
Equity contracts | Equity volatility | Level 3 | Black-Scholes option pricing model | Fair Value, Measurements, Recurring | Maximum | ||
Quantitative information | ||
Measurement input | 70% | 54% |
Equity contracts | Equity volatility | Level 3 | Black-Scholes option pricing model | Fair Value, Measurements, Recurring | Weighted Average | ||
Quantitative information | ||
Measurement input | 61% | 49% |
Equity contracts | Liquidity discount | Level 3 | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Measurement input | 47% | 47% |
Equity contracts | Liquidity discount | Level 3 | Fair Value, Measurements, Recurring | Weighted Average | ||
Quantitative information | ||
Measurement input | 47% | 47% |
Fair Value Measurement and Fa_6
Fair Value Measurement and Fair Value of Financial Instruments - Carrying Amounts of Assets That Were Still Held and Had Fair Value Changes Measured on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | $ 87,953 | $ 126,984 |
Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 86,786 | 124,240 |
Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,167 | 2,744 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 87,953 | 126,984 |
Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 86,786 | 124,240 |
Significant Unobservable Inputs (Level 3) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,167 | 2,744 |
Other nonperforming assets | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 391 | |
Other nonperforming assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 391 | |
Other nonperforming assets | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 0 | |
Other nonperforming assets | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 0 | |
Commercial and industrial (“C&I”) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 55,015 | 102,349 |
Commercial and industrial (“C&I”) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Commercial and industrial (“C&I”) | Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Commercial and industrial (“C&I”) | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 55,015 | 102,349 |
Commercial real estate (“CRE”) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 30,716 | 21,891 |
Commercial real estate (“CRE”) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Commercial real estate (“CRE”) | Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Commercial real estate (“CRE”) | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 30,716 | 21,891 |
Multifamily residential | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,055 | |
Multifamily residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Multifamily residential | Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Multifamily residential | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,055 | |
HELOCs | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,167 | 2,744 |
HELOCs | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
HELOCs | Significant Other Observable Inputs (Level 2) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
HELOCs | Significant Unobservable Inputs (Level 3) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | $ 1,167 | $ 2,744 |
Fair Value Measurement and Fa_7
Fair Value Measurement and Fair Value of Financial Instruments - Increase (Decrease) in Fair Value of Assets Measured on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | $ (6,513) | $ (9,432) | $ (12,333) | $ (25,674) |
Tax credit investments | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 0 | 877 | 0 | 877 |
OREO | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 0 | (910) | 0 | (910) |
Other nonperforming assets | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (6,861) | 0 | (6,861) | (3,890) |
Commercial lending | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (6,595) | (6,944) | (12,418) | (23,152) |
Commercial lending | Commercial and industrial (“C&I”) | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (6,054) | (6,462) | (14,740) | (15,530) |
Commercial lending | Commercial real estate (“CRE”) | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (533) | (275) | 2,330 | (7,336) |
Commercial lending | Multifamily residential | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (8) | 2 | (8) | (6) |
Commercial lending | Construction and land | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 0 | (209) | 0 | (280) |
Consumer lending | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 82 | (2,488) | 85 | (2,522) |
Consumer lending | Single Family Residential | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 0 | 0 | 0 | (8) |
Consumer lending | HELOCs | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 82 | 3 | 85 | (23) |
Consumer lending | Other consumer | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | $ 0 | $ (2,491) | $ 0 | $ (2,491) |
Fair Value Measurement and Fa_8
Fair Value Measurement and Fair Value of Financial Instruments - Carrying and Fair Value Estimates per the Fair Value Hierarchy of Financial Instruments Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Cash and cash equivalents | $ 1,902,053 | $ 3,912,935 |
Interest-bearing deposits with banks | 712,709 | 736,492 |
Resale agreements | 1,422,794 | 2,353,503 |
HTM debt securities | 3,028,302 | 0 |
Restricted equity securities, at cost | 77,962 | 77,434 |
Loans held-for-investment, net | 45,938,806 | 41,152,202 |
Financial liabilities: | ||
FHLB advances | 174,776 | 249,331 |
Repurchase agreements | 611,785 | 300,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 1,902,053 | 3,912,935 |
Interest-bearing deposits with banks | 712,709 | 736,492 |
Resale agreements | 1,422,794 | 2,353,503 |
HTM debt securities | 3,028,302 | |
Restricted equity securities, at cost | 77,962 | 77,434 |
Loans held-for-sale | 28,464 | 635 |
Loans held-for-investment, net | 45,938,806 | 41,152,202 |
Mortgage servicing rights | 5,909 | 5,706 |
Accrued interest receivable | 172,008 | 159,833 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 44,965,778 | 45,388,550 |
Time deposits | 9,377,576 | 7,961,982 |
FHLB advances | 174,776 | 249,331 |
Repurchase agreements | 611,785 | 300,000 |
Long-term debt | 147,801 | 147,658 |
Accrued interest payable | 9,596 | 11,435 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 1,902,053 | 3,912,935 |
Interest-bearing deposits with banks | 712,709 | 736,492 |
Resale agreements | 1,348,036 | 2,335,901 |
HTM debt securities | 2,656,549 | |
Restricted equity securities, at cost | 77,962 | 77,434 |
Loans held-for-sale | 28,464 | 635 |
Loans held-for-investment, net | 45,860,749 | 41,199,599 |
Mortgage servicing rights | 10,349 | 9,104 |
Accrued interest receivable | 172,008 | 159,833 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 44,965,778 | 45,388,550 |
Time deposits | 9,318,992 | 7,966,116 |
FHLB advances | 175,207 | 250,372 |
Repurchase agreements | 619,280 | 310,525 |
Long-term debt | 139,206 | 151,020 |
Accrued interest payable | 9,596 | 11,435 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 1,902,053 | 3,912,935 |
Interest-bearing deposits with banks | 0 | 0 |
Resale agreements | 0 | 0 |
HTM debt securities | 486,521 | |
Restricted equity securities, at cost | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment, net | 0 | 0 |
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 |
FHLB advances | 0 | 0 |
Repurchase agreements | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits with banks | 712,709 | 736,492 |
Resale agreements | 1,348,036 | 2,335,901 |
HTM debt securities | 2,170,028 | |
Restricted equity securities, at cost | 77,962 | 77,434 |
Loans held-for-sale | 28,464 | 635 |
Loans held-for-investment, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 172,008 | 159,833 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 44,965,778 | 45,388,550 |
Time deposits | 9,318,992 | 7,966,116 |
FHLB advances | 175,207 | 250,372 |
Repurchase agreements | 619,280 | 310,525 |
Long-term debt | 139,206 | 151,020 |
Accrued interest payable | 9,596 | 11,435 |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Resale agreements | 0 | 0 |
HTM debt securities | 0 | |
Restricted equity securities, at cost | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment, net | 45,860,749 | 41,199,599 |
Mortgage servicing rights | 10,349 | 9,104 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 0 | 0 |
Time deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Repurchase agreements | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Assets Purchased under Resale_3
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements - Resale Agreements and Repurchase Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Resale agreements | |||||
Gross resale agreements | $ 1,130,000 | $ 1,130,000 | $ 1,330,000 | ||
Average yield | 1.96% | 1.54% | 1.79% | 1.55% | |
Loans purchased under agreements to resell | $ 289,800 | $ 289,800 | 1,020,000 | ||
Repurchase agreements | |||||
Gross repurchase agreements | $ 611,785 | $ 611,785 | $ 300,000 | ||
Average rate paid | 2.70% | 2.63% | 2.66% | 2.65% | |
SecuritiesSoldUnderAgreementsToRepurchaseMaturinginYearCurrent | $ 311,800 | $ 311,800 | |||
SecuritiesSoldUnderAgreementsToRepurchaseMaturinginYearOne | $ 300,000 | $ 300,000 | |||
Loans Purchased Under Resale Agreements | |||||
Resale agreements | |||||
Weighted-average yields | 2.47% | 1.47% | 1.91% | 1.64% |
Assets Purchased under Resale_4
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements - Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets, Resale Agreements | ||
Gross Amounts of Recognized Assets | $ 1,422,794 | $ 2,353,503 |
Gross Amounts Offset on the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented on the Consolidated Balance Sheet | 1,422,794 | 2,353,503 |
Assets Purchased under Agreements to Resell Gross Amounts Not Offset [Abstract] | ||
Collateral Received | (1,336,962) | (2,327,687) |
Net Amount | 85,832 | 25,816 |
Liabilities, Repurchase Agreements | ||
Gross Amounts of Recognized Liabilities | 611,785 | 300,000 |
Gross Amounts Offset on the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheet | 611,785 | 300,000 |
Assets Sold under Agreements to Repurchase Gross Amounts Not Offset [Abstract] | ||
Collateral Pledged | (611,785) | (300,000) |
Net Amount | $ 0 | $ 0 |
Securities - Schedule of Debt S
Securities - Schedule of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
AFS debt securities: | ||
Amortized Cost | $ 6,891,522 | $ 10,087,179 |
Gross Unrealized Gains | 1,340 | 51,025 |
Gross Unrealized Losses | (637,358) | (172,851) |
Fair Value | 6,255,504 | 9,965,353 |
HTM debt securities: | ||
Amortized Cost | 3,028,302 | 0 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (371,753) | |
Fair Value | 2,656,549 | |
Total debt securities | ||
Amortized Cost | 9,919,824 | |
Gross Unrealized Gains | 1,340 | |
Gross Unrealized Losses | (1,009,111) | |
Fair Value | 8,912,053 | |
U.S. Treasury securities | ||
AFS debt securities: | ||
Amortized Cost | 676,320 | 1,049,238 |
Gross Unrealized Gains | 0 | 130 |
Gross Unrealized Losses | (51,634) | (16,687) |
Fair Value | 624,686 | 1,032,681 |
HTM debt securities: | ||
Amortized Cost | 521,352 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (34,831) | |
Fair Value | 486,521 | |
U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
AFS debt securities: | ||
Amortized Cost | 324,463 | 1,333,984 |
Gross Unrealized Gains | 0 | 2,697 |
Gross Unrealized Losses | (39,218) | (34,710) |
Fair Value | 285,245 | 1,301,971 |
HTM debt securities: | ||
Amortized Cost | 997,369 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (144,291) | |
Fair Value | 853,078 | |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 614,135 | 1,242,043 |
Gross Unrealized Gains | 125 | 15,791 |
Gross Unrealized Losses | (50,428) | (28,854) |
Fair Value | 563,832 | 1,228,980 |
HTM debt securities: | ||
Amortized Cost | 512,391 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (62,563) | |
Fair Value | 449,828 | |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 2,097,339 | 2,968,789 |
Gross Unrealized Gains | 193 | 8,629 |
Gross Unrealized Losses | (187,292) | (49,135) |
Fair Value | 1,910,240 | 2,928,283 |
HTM debt securities: | ||
Amortized Cost | 807,111 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (96,637) | |
Fair Value | 710,474 | |
Municipal securities | ||
AFS debt securities: | ||
Amortized Cost | 306,419 | 519,381 |
Gross Unrealized Gains | 22 | 10,065 |
Gross Unrealized Losses | (39,708) | (6,288) |
Fair Value | 266,733 | 523,158 |
HTM debt securities: | ||
Amortized Cost | 190,079 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (33,431) | |
Fair Value | 156,648 | |
Non-agency commercial mortgage-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 451,200 | 498,920 |
Gross Unrealized Gains | 247 | 3,000 |
Gross Unrealized Losses | (39,679) | (5,477) |
Fair Value | 411,768 | 496,443 |
Non-agency residential mortgage-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 808,012 | 889,937 |
Gross Unrealized Gains | 0 | 971 |
Gross Unrealized Losses | (81,023) | (8,977) |
Fair Value | 726,989 | 881,931 |
Corporate debt securities | ||
AFS debt securities: | ||
Amortized Cost | 673,502 | 657,516 |
Gross Unrealized Gains | 105 | 8,738 |
Gross Unrealized Losses | (114,314) | (16,589) |
Fair Value | 559,293 | 649,665 |
Foreign government bonds | ||
AFS debt securities: | ||
Amortized Cost | 253,118 | 260,447 |
Gross Unrealized Gains | 648 | 767 |
Gross Unrealized Losses | (10,769) | (3,481) |
Fair Value | 242,997 | 257,733 |
Asset-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 69,764 | 74,674 |
Gross Unrealized Gains | 0 | 185 |
Gross Unrealized Losses | (2,414) | (301) |
Fair Value | 67,350 | 74,558 |
Collateralized loan obligations (“CLOs”) | ||
AFS debt securities: | ||
Amortized Cost | 617,250 | 592,250 |
Gross Unrealized Gains | 0 | 52 |
Gross Unrealized Losses | (20,879) | (2,352) |
Fair Value | $ 596,371 | $ 589,950 |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) security | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) security | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) security | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Fair value of debt securities from AFS to HTM | $ 3,010,000,000 | |||||
Unrealized losses, net of tax, from transfer of AFS to HTM | $ 113,000,000 | |||||
AFS and HTM, accrued interest | $ 34,900,000 | $ 34,900,000 | $ 33,100,000 | |||
Available-for-sale debt securities fair value, Total | $ 6,032,101,000 | $ 6,032,101,000 | $ 7,711,952,000 | |||
Number of available-for-sale debt securities in an unrealized loss position | security | 531 | 531 | 431 | |||
Debt Securities, AFS, allowance for credit loss | $ 0 | $ 0 | $ 0 | |||
Provision (reversal of provision) for credit losses | 0 | $ 0 | 0 | $ 0 | ||
Allowance for credit loss | 0 | 0 | ||||
Fair value of debt securities | 8,912,053,000 | 8,912,053,000 | ||||
Asset Pledged as Collateral | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Fair value of debt securities | $ 1,290,000,000 | $ 1,290,000,000 | $ 803,900,000 | |||
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Number of available-for-sale debt securities in an unrealized loss position | security | 244 | 244 | 180 | |||
Non-agency mortgage-backed securities | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Number of available-for-sale debt securities in an unrealized loss position | security | 100 | 100 | ||||
Corporate debt securities | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Available-for-sale debt securities fair value, Total | $ 531,189,000 | $ 531,189,000 | $ 435,410,000 | |||
Number of available-for-sale debt securities in an unrealized loss position | security | 63 | 63 | 30 | |||
U.S. government-sponsored enterprises debt securities | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Available-for-sale debt securities fair value, Total | $ 285,245,000 | $ 285,245,000 | $ 1,176,554,000 | |||
Number of available-for-sale debt securities in an unrealized loss position | security | 50 | |||||
U.S. Treasury securities | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Available-for-sale debt securities fair value, Total | $ 624,686,000 | $ 624,686,000 | $ 983,657,000 | |||
Number of available-for-sale debt securities in an unrealized loss position | security | 21 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | $ 4,490,101 | $ 5,932,965 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (408,561) | (106,229) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 1,542,000 | 1,778,987 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (228,797) | (66,622) |
Available-for-sale debt securities fair value, Total | 6,032,101 | 7,711,952 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (637,358) | (172,851) |
U.S. Treasury securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 466,095 | 935,776 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (32,524) | (14,689) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 158,591 | 47,881 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (19,110) | (1,998) |
Available-for-sale debt securities fair value, Total | 624,686 | 983,657 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (51,634) | (16,687) |
U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 249,274 | 773,647 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (35,689) | (18,000) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 35,971 | 402,907 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (3,529) | (16,710) |
Available-for-sale debt securities fair value, Total | 285,245 | 1,176,554 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (39,218) | (34,710) |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 440,235 | 440,734 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (34,101) | (13,589) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 110,670 | 257,745 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (16,327) | (15,265) |
Available-for-sale debt securities fair value, Total | 550,905 | 698,479 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (50,428) | (28,854) |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 1,433,558 | 2,138,542 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (122,567) | (37,691) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 463,552 | 330,522 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (64,725) | (11,444) |
Available-for-sale debt securities fair value, Total | 1,897,110 | 2,469,064 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (187,292) | (49,135) |
Municipal securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 265,197 | 177,065 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (39,708) | (5,682) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 0 | 17,003 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | 0 | (606) |
Available-for-sale debt securities fair value, Total | 265,197 | 194,068 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (39,708) | (6,288) |
Non-agency commercial mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 335,199 | 301,925 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (28,436) | (4,158) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 65,175 | 40,013 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (11,243) | (1,319) |
Available-for-sale debt securities fair value, Total | 400,374 | 341,938 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (39,679) | (5,477) |
Non-agency residential mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 616,819 | 707,792 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (67,098) | (8,966) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 110,170 | 6,431 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (13,925) | (11) |
Available-for-sale debt securities fair value, Total | 726,989 | 714,223 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (81,023) | (8,977) |
Corporate debt securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 295,000 | 183,916 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (35,503) | (3,084) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 236,189 | 251,494 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (78,811) | (13,505) |
Available-for-sale debt securities fair value, Total | 531,189 | 435,410 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (114,314) | (16,589) |
Foreign government bonds | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 18,887 | 27,097 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (165) | (5) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 67,798 | 133,279 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (10,604) | (3,476) |
Available-for-sale debt securities fair value, Total | 86,685 | 160,376 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (10,769) | (3,481) |
Asset-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 57,469 | 24,885 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (1,888) | (301) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 9,881 | 0 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (526) | 0 |
Available-for-sale debt securities fair value, Total | 67,350 | 24,885 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (2,414) | (301) |
Collateralized loan obligations (“CLOs”) | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 312,368 | 221,586 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (10,882) | (64) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 284,003 | 291,712 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (9,997) | (2,288) |
Available-for-sale debt securities fair value, Total | 596,371 | 513,298 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | $ (20,879) | $ (2,352) |
Securities - Gross Realized Gai
Securities - Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains | $ 28 | $ 632 | $ 1,306 | $ 824 |
Related tax expense | $ 8 | $ 187 | $ 386 | $ 244 |
Securities - Scheduled Contract
Securities - Scheduled Contractual Maturities of AFS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized cost | ||
Within One Year | $ 128,731 | |
After One Year through Five Years | 899,362 | |
After Five Years through Ten Years | 848,386 | |
After Ten Years | 5,015,043 | |
Amortized Cost | 6,891,522 | $ 10,087,179 |
Fair value | ||
Within One Year | 128,401 | |
After One Year through Five Years | 850,198 | |
After Five Years through Ten Years | 785,477 | |
After Ten Years | 4,491,428 | |
Total | $ 6,255,504 | 9,965,353 |
Weighted Average Yield | ||
Within One Year | 2.14% | |
After One Year through Five Years | 1.95% | |
After Five Years through Ten Years | 2.39% | |
After Ten Years | 2.15% | |
Total | 2.15% | |
U.S. Treasury securities | ||
Amortized cost | ||
Within One Year | $ 0 | |
After One Year through Five Years | 576,626 | |
After Five Years through Ten Years | 99,694 | |
After Ten Years | 0 | |
Amortized Cost | 676,320 | 1,049,238 |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 536,698 | |
After Five Years through Ten Years | 87,988 | |
After Ten Years | 0 | |
Total | $ 624,686 | 1,032,681 |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 1.28% | |
After Five Years through Ten Years | 0.74% | |
After Ten Years | 0% | |
Total | 1.20% | |
U.S. government-sponsored enterprises debt securities | ||
Amortized cost | ||
Within One Year | $ 0 | |
After One Year through Five Years | 29,193 | |
After Five Years through Ten Years | 125,001 | |
After Ten Years | 170,269 | |
Amortized Cost | 324,463 | 1,333,984 |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 27,700 | |
After Five Years through Ten Years | 110,199 | |
After Ten Years | 147,346 | |
Total | $ 285,245 | 1,301,971 |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 1.62% | |
After Five Years through Ten Years | 1.16% | |
After Ten Years | 2.09% | |
Total | 1.69% | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | ||
Amortized cost | ||
Within One Year | $ 0 | |
After One Year through Five Years | 13,289 | |
After Five Years through Ten Years | 192,287 | |
After Ten Years | 2,505,898 | |
Amortized Cost | 2,711,474 | |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 13,205 | |
After Five Years through Ten Years | 182,832 | |
After Ten Years | 2,278,035 | |
Total | $ 2,474,072 | |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 3.11% | |
After Five Years through Ten Years | 2.69% | |
After Ten Years | 2.11% | |
Total | 2.15% | |
Municipal securities | ||
Amortized cost | ||
Within One Year | $ 0 | |
After One Year through Five Years | 39,712 | |
After Five Years through Ten Years | 6,498 | |
After Ten Years | 260,209 | |
Amortized Cost | 306,419 | 519,381 |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 37,800 | |
After Five Years through Ten Years | 5,758 | |
After Ten Years | 223,175 | |
Total | $ 266,733 | 523,158 |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 2.47% | |
After Five Years through Ten Years | 1.79% | |
After Ten Years | 2.23% | |
Total | 2.25% | |
Non-agency mortgage-backed securities | ||
Amortized cost | ||
Within One Year | $ 10,019 | |
After One Year through Five Years | 196,136 | |
After Five Years through Ten Years | 40,404 | |
After Ten Years | 1,012,653 | |
Amortized Cost | 1,259,212 | |
Fair value | ||
Within One Year | 9,894 | |
After One Year through Five Years | 189,963 | |
After Five Years through Ten Years | 39,224 | |
After Ten Years | 899,676 | |
Total | $ 1,138,757 | |
Weighted Average Yield | ||
Within One Year | 4.47% | |
After One Year through Five Years | 3.56% | |
After Five Years through Ten Years | 1.19% | |
After Ten Years | 2.23% | |
Total | 2.42% | |
Corporate debt securities | ||
Amortized cost | ||
Within One Year | $ 10,000 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 334,502 | |
After Ten Years | 329,000 | |
Amortized Cost | 673,502 | 657,516 |
Fair value | ||
Within One Year | 9,847 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 309,395 | |
After Ten Years | 240,051 | |
Total | $ 559,293 | 649,665 |
Weighted Average Yield | ||
Within One Year | 3.26% | |
After One Year through Five Years | 0% | |
After Five Years through Ten Years | 3.59% | |
After Ten Years | 1.98% | |
Total | 2.80% | |
Foreign government bonds | ||
Amortized cost | ||
Within One Year | $ 108,712 | |
After One Year through Five Years | 44,406 | |
After Five Years through Ten Years | 50,000 | |
After Ten Years | 50,000 | |
Amortized Cost | 253,118 | 260,447 |
Fair value | ||
Within One Year | 108,660 | |
After One Year through Five Years | 44,832 | |
After Five Years through Ten Years | 50,081 | |
After Ten Years | 39,424 | |
Total | $ 242,997 | 257,733 |
Weighted Average Yield | ||
Within One Year | 1.82% | |
After One Year through Five Years | 3.01% | |
After Five Years through Ten Years | 0.55% | |
After Ten Years | 1.50% | |
Total | 1.71% | |
Asset-backed securities | ||
Amortized cost | ||
Within One Year | $ 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 0 | |
After Ten Years | 69,764 | |
Amortized Cost | 69,764 | 74,674 |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 0 | |
After Ten Years | 67,350 | |
Total | $ 67,350 | 74,558 |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 0% | |
After Five Years through Ten Years | 0% | |
After Ten Years | 2.74% | |
Total | 2.74% | |
Collateralized loan obligations (“CLOs”) | ||
Amortized cost | ||
Within One Year | $ 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 0 | |
After Ten Years | 617,250 | |
Amortized Cost | 617,250 | 592,250 |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 0 | |
After Ten Years | 596,371 | |
Total | $ 596,371 | $ 589,950 |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 0% | |
After Five Years through Ten Years | 0% | |
After Ten Years | 2.22% | |
Total | 2.22% |
Securities - Scheduled Contra_2
Securities - Scheduled Contractual Maturities of HTM Debt Securities (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Amortized cost | |
Within One Year | $ 0 |
After One Year through Five Years | 166,856 |
After Five Years through Ten Years | 654,861 |
After Ten Years | 2,206,585 |
Total | 3,028,302 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 156,200 |
After Five Years through Ten Years | 602,671 |
After Ten Years | 1,897,678 |
Total | $ 2,656,549 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 0.90% |
After Five Years through Ten Years | 1.48% |
After Ten Years | 1.72% |
Total | 1.62% |
U.S. Treasury securities | |
Amortized cost | |
Within One Year | $ 0 |
After One Year through Five Years | 166,856 |
After Five Years through Ten Years | 354,496 |
After Ten Years | 0 |
Total | 521,352 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 156,200 |
After Five Years through Ten Years | 330,321 |
After Ten Years | 0 |
Total | $ 486,521 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 0.90% |
After Five Years through Ten Years | 1.12% |
After Ten Years | 0% |
Total | 1.05% |
U.S. government-sponsored enterprises debt securities | |
Amortized cost | |
Within One Year | $ 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 213,101 |
After Ten Years | 784,268 |
Total | 997,369 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 193,357 |
After Ten Years | 659,721 |
Total | $ 853,078 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 0% |
After Five Years through Ten Years | 2.03% |
After Ten Years | 1.86% |
Total | 1.90% |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | |
Amortized cost | |
Within One Year | $ 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 87,264 |
After Ten Years | 1,232,238 |
Total | 1,319,502 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 78,993 |
After Ten Years | 1,081,309 |
Total | $ 1,160,302 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 0% |
After Five Years through Ten Years | 1.60% |
After Ten Years | 1.59% |
Total | 1.59% |
Municipal securities | |
Amortized cost | |
Within One Year | $ 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 0 |
After Ten Years | 190,079 |
Total | 190,079 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 0 |
After Ten Years | 156,648 |
Total | $ 156,648 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 0% |
After Five Years through Ten Years | 0% |
After Ten Years | 1.97% |
Total | 1.97% |
Securities - Restricted Equity
Securities - Restricted Equity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Reserve Bank of San Francisco (“FRBSF”) stock | $ 60,712 | $ 60,184 |
FHLB stock | 17,250 | 17,250 |
Total restricted equity securities | $ 77,962 | $ 77,434 |
Derivatives - Notional and Fair
Derivatives - Notional and Fair Values (Details) MMBTU in Thousands, Boe in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) MMBTU Boe company | Dec. 31, 2021 USD ($) Boe MMBTU company | |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | $ 708,284 | $ 484,184 |
Less: Master netting agreements | (126,414) | (58,679) |
Less: Cash collateral received/paid | (125,304) | (42,274) |
Net derivative assets | 456,566 | 383,231 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 762,569 | 390,171 |
Less: Master netting agreements | (126,414) | (58,679) |
Less: Cash collateral received/paid | 0 | (174,048) |
Net derivative liabilities | $ 636,155 | $ 157,444 |
Crude oil | Customer Counterparty | ||
Derivative Liability [Abstract] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 8,211 | 7,519 |
Natural gas | Customer Counterparty | ||
Derivative Liability [Abstract] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 83,113 | 83,274 |
Derivative instruments designated as hedging instruments | ||
Derivative Instruments | ||
Notional Amount | $ 1,609,832 | $ 361,531 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 3,351 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 96 | 282 |
Derivative instruments designated as hedging instruments | Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments | ||
Notional Amount | 1,525,000 | 275,000 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 586 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 96 | 57 |
Derivative instruments designated as hedging instruments | Net Investment Hedging | Foreign exchange contracts | ||
Derivative Instruments | ||
Notional Amount | 84,832 | 86,531 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 2,765 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 0 | 225 |
Derivatives not designated as hedging instruments | ||
Derivative Instruments | ||
Notional Amount | 20,346,090 | 19,522,661 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 704,933 | 484,184 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 762,473 | 389,889 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments | ||
Notional Amount | 17,570,112 | 17,575,420 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 260,740 | 240,222 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 359,578 | 179,905 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments | ||
Notional Amount | 2,654,194 | 1,874,681 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 39,559 | 21,033 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 29,144 | 15,276 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative Instruments | ||
Notional Amount | 121,784 | 72,560 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 0 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 76 | 141 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative Instruments | ||
Notional Amount | 0 | 0 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 359 | 220 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 0 | 0 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative Instruments | ||
Notional Amount | 0 | 0 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 404,275 | 222,709 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | $ 373,675 | $ 194,567 |
Derivatives not designated as hedging instruments | Equity, Public Companies | ||
Derivative Liability [Abstract] | ||
Number of companies that issued the equity (issuers portion only) | company | 1 | 1 |
Derivatives not designated as hedging instruments | Equity, Private Companies | ||
Derivative Liability [Abstract] | ||
Number of companies that issued the equity (issuers portion only) | company | 13 | 12 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) MMBTU in Thousands, Boe in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 USD ($) Boe MMBTU company | Dec. 31, 2021 USD ($) MMBTU Boe company | Dec. 31, 2020 USD ($) | |
Derivative [Line Items] | |||
Derivative assets - Fair value | $ 708,284 | $ 484,184 | |
Derivative liabilities - Fair value | 762,569 | 390,171 | |
Credit-risk-related contingent features | |||
Derivative [Line Items] | |||
Aggregate fair value of derivative instruments in net liability position | 31,600 | 66,800 | |
Collateral posted | 28,300 | 66,600 | |
Derivative instruments designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 1,609,832 | 361,531 | |
Derivative assets - Fair value | 3,351 | 0 | |
Derivative liabilities - Fair value | 96 | 282 | |
Derivative instruments designated as hedging instruments | Interest rate swap | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Notional amount | 1,000,000 | $ 275,000 | |
Net unrealized losses, net of tax, recorded in AOCI expected to be reclassified into earnings during next 12 months | 11,300 | ||
Derivative instruments designated as hedging instruments | Interest rate contracts | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Notional amount | 1,525,000 | 275,000 | |
Derivative assets - Fair value | 586 | 0 | |
Derivative liabilities - Fair value | 96 | 57 | |
Derivative instruments designated as hedging instruments | Interest Rate Collar | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Notional amount | 250,000 | ||
Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 20,346,090 | 19,522,661 | |
Derivative assets - Fair value | 704,933 | 484,184 | |
Derivative liabilities - Fair value | 762,473 | 389,889 | |
Derivatives not designated as hedging instruments | Interest rate contracts | |||
Derivative [Line Items] | |||
Notional amount | 17,570,112 | 17,575,420 | |
Derivative assets - Fair value | 260,740 | 240,222 | |
Derivative liabilities - Fair value | 359,578 | 179,905 | |
Derivatives not designated as hedging instruments | Interest rate contracts | Financial Counterparty | |||
Derivative [Line Items] | |||
Notional amount | 8,830,000 | 8,800,000 | |
Derivatives not designated as hedging instruments | Interest rate contracts | LCH | |||
Derivative [Line Items] | |||
Notional amount | 2,240,000 | 2,790,000 | |
Derivative assets - Fair value | 113,200 | 18,100 | |
Derivative liabilities - Fair value | 2,200 | 79,900 | |
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Notional amount | 2,654,194 | 1,874,681 | |
Derivative assets - Fair value | 39,559 | 21,033 | |
Derivative liabilities - Fair value | 29,144 | 15,276 | |
Derivatives not designated as hedging instruments | Credit contracts | |||
Derivative [Line Items] | |||
Notional amount | 121,784 | 72,560 | |
Derivative assets - Fair value | 0 | 0 | |
Derivative liabilities - Fair value | 76 | 141 | |
Derivatives not designated as hedging instruments | Credit contracts | RPAs — protection sold | |||
Derivative [Line Items] | |||
Maximum exposure of RPAs with protection sold | $ 38 | $ 3,200 | |
Weighted average remaining maturity of outstanding RPAs | 2 years 7 months 6 days | 3 years 2 months 12 days | |
Derivatives not designated as hedging instruments | Equity, Public Companies | |||
Derivative [Line Items] | |||
Number of companies that issued the equity (issuers portion only) | company | 1 | 1 | |
Derivatives not designated as hedging instruments | Equity contracts | |||
Derivative [Line Items] | |||
Notional amount | $ 0 | $ 0 | |
Derivative assets - Fair value | 359 | 220 | |
Derivative liabilities - Fair value | $ 0 | $ 0 | |
Derivatives not designated as hedging instruments | Equity, Private Companies | |||
Derivative [Line Items] | |||
Number of companies that issued the equity (issuers portion only) | company | 13 | 12 | |
Derivatives not designated as hedging instruments | Commodity contracts | |||
Derivative [Line Items] | |||
Notional amount | $ 0 | $ 0 | |
Derivative assets - Fair value | 404,275 | 222,709 | |
Derivative liabilities - Fair value | 373,675 | 194,567 | |
Derivatives not designated as hedging instruments | Commodity contracts | Chicago Mercantile Exchange (CME) | |||
Derivative [Line Items] | |||
Derivative assets - Fair value | 2,100 | 2,200 | |
Derivative liabilities - Fair value | $ 28,900 | $ 25,800 | |
Derivatives not designated as hedging instruments | Commodity contracts | Chicago Mercantile Exchange (CME) | Oil | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | Boe | 1,100 | 1,036 | |
Derivatives not designated as hedging instruments | Commodity contracts | Chicago Mercantile Exchange (CME) | Natural gas | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 14,625 | 11,490 | |
Maximum | Derivatives not designated as hedging instruments | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Original maturity (in years) | 1 year | 1 year |
Derivatives - Gains (Losses) in
Derivatives - Gains (Losses) in Cash Flow Hedge and Net Investment Hedge (Details) - Derivative instruments designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flow Hedging | Interest rate contracts | ||||
Derivative [Line Items] | ||||
(Losses) gains recognized in AOCI: | $ (7,837) | $ (106) | $ (40,446) | $ 320 |
Gains (losses) reclassified from AOCI into earnings: | 1,120 | (201) | 3,220 | (378) |
Cash Flow Hedging | Interest rate contracts | Interest expense | ||||
Derivative [Line Items] | ||||
Gains (losses) reclassified from AOCI into earnings: | 308 | (201) | 135 | (378) |
Cash Flow Hedging | Interest rate contracts | Interest income | ||||
Derivative [Line Items] | ||||
Gains (losses) reclassified from AOCI into earnings: | 812 | 0 | 3,085 | 0 |
Net Investment Hedging | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gains (losses) recognized in AOCI | $ 2,319 | $ (1,643) | $ 1,200 | $ (1,543) |
Derivatives - Derivatives Not D
Derivatives - Derivatives Not Designated as Hedging Instruments - Interest Rate Contracts (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 708,284 | $ 484,184 |
Derivative liabilities - Fair value | 762,569 | 390,171 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 20,346,090 | 19,522,661 |
Derivative assets - Fair value | 704,933 | 484,184 |
Derivative liabilities - Fair value | 762,473 | 389,889 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 17,570,112 | 17,575,420 |
Derivative assets - Fair value | 260,740 | 240,222 |
Derivative liabilities - Fair value | 359,578 | 179,905 |
Derivatives not designated as hedging instruments | Financial Counterparty | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 8,830,000 | 8,800,000 |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Purchased options | ||
Derivative [Line Items] | ||
Notional Amount | 0 | |
Derivative assets - Fair value | 0 | |
Derivative liabilities - Fair value | 0 | |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Written options | ||
Derivative [Line Items] | ||
Notional Amount | 1,481,552 | 1,118,074 |
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 19,760 | 2,148 |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Sold collars and corridors | ||
Derivative [Line Items] | ||
Notional Amount | 187,168 | 194,181 |
Derivative assets - Fair value | 9 | 1,272 |
Derivative liabilities - Fair value | 5,040 | 642 |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 7,069,901 | 7,460,836 |
Derivative assets - Fair value | 8,482 | 211,727 |
Derivative liabilities - Fair value | 326,853 | 39,650 |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 8,738,621 | 8,773,091 |
Derivative assets - Fair value | 8,491 | 212,999 |
Derivative liabilities - Fair value | 351,653 | 42,440 |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Purchased options | ||
Derivative [Line Items] | ||
Notional Amount | 1,513,842 | 1,118,074 |
Derivative assets - Fair value | 20,933 | 2,159 |
Derivative liabilities - Fair value | 0 | 0 |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Written options | ||
Derivative [Line Items] | ||
Notional Amount | 32,290 | |
Derivative assets - Fair value | 0 | |
Derivative liabilities - Fair value | 1,076 | |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Collars and corridors | ||
Derivative [Line Items] | ||
Notional Amount | 187,168 | 194,181 |
Derivative assets - Fair value | 5,071 | 646 |
Derivative liabilities - Fair value | 9 | 1,275 |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 7,098,191 | 7,490,074 |
Derivative assets - Fair value | 226,245 | 24,418 |
Derivative liabilities - Fair value | 6,840 | 136,190 |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 8,831,491 | 8,802,329 |
Derivative assets - Fair value | 252,249 | 27,223 |
Derivative liabilities - Fair value | $ 7,925 | $ 137,465 |
Derivatives - Derivatives Not_2
Derivatives - Derivatives Not Designated as Hedging Instruments - Foreign Exchange Contracts (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 708,284 | $ 484,184 |
Derivative liabilities - Fair value | 762,569 | 390,171 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 20,346,090 | 19,522,661 |
Derivative assets - Fair value | 704,933 | 484,184 |
Derivative liabilities - Fair value | 762,473 | 389,889 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 2,654,194 | 1,874,681 |
Derivative assets - Fair value | 39,559 | 21,033 |
Derivative liabilities - Fair value | 29,144 | 15,276 |
Foreign exchange contracts | Customer Counterparty | Forwards and spots | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 954,101 | 900,290 |
Derivative assets - Fair value | 13,188 | 13,688 |
Derivative liabilities - Fair value | 19,119 | 9,446 |
Foreign exchange contracts | Customer Counterparty | Swaps | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 175,373 | 66,474 |
Derivative assets - Fair value | 648 | 1,034 |
Derivative liabilities - Fair value | 864 | 17 |
Foreign exchange contracts | Customer Counterparty | Written options | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 20,000 | 20,287 |
Derivative assets - Fair value | 170 | 1 |
Derivative liabilities - Fair value | 312 | 0 |
Foreign exchange contracts | Customer Counterparty | Collars | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 5,263 | |
Derivative assets - Fair value | 0 | |
Derivative liabilities - Fair value | 41 | |
Foreign exchange contracts | Customer Counterparty | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 1,154,737 | 987,051 |
Derivative assets - Fair value | 14,006 | 14,723 |
Derivative liabilities - Fair value | 20,336 | 9,463 |
Foreign exchange contracts | Financial Counterparty | Forwards and spots | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 310,784 | 267,689 |
Derivative assets - Fair value | 10,139 | 1,564 |
Derivative liabilities - Fair value | 2,014 | 2,695 |
Foreign exchange contracts | Financial Counterparty | Swaps | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 1,163,410 | 599,654 |
Derivative assets - Fair value | 15,061 | 4,745 |
Derivative liabilities - Fair value | 6,624 | 3,116 |
Foreign exchange contracts | Financial Counterparty | Purchased options | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 20,000 | 20,287 |
Derivative assets - Fair value | 312 | 1 |
Derivative liabilities - Fair value | 170 | 2 |
Foreign exchange contracts | Financial Counterparty | Collars | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 5,263 | |
Derivative assets - Fair value | 41 | |
Derivative liabilities - Fair value | 0 | |
Foreign exchange contracts | Financial Counterparty | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 1,499,457 | 887,630 |
Derivative assets - Fair value | 25,553 | 6,310 |
Derivative liabilities - Fair value | $ 8,808 | $ 5,813 |
Derivatives - Derivatives Not_3
Derivatives - Derivatives Not Designated as Hedging Instruments - Credit Contracts (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 708,284 | $ 484,184 |
Derivative liabilities - Fair value | 762,569 | 390,171 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 20,346,090 | 19,522,661 |
Derivative assets - Fair value | 704,933 | 484,184 |
Derivative liabilities - Fair value | 762,473 | 389,889 |
Credit contracts | Derivatives not designated as hedging instruments | Other credit derivatives | RPAs — protection sold | ||
Derivative [Line Items] | ||
Notional Amount | 121,784 | 72,560 |
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | $ 76 | $ 141 |
Derivatives - Derivatives Not_4
Derivatives - Derivatives Not Designated as Hedging Instruments - Commodity Contracts (Details) MMBTU in Thousands, Boe in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) MMBTU Boe | Dec. 31, 2021 USD ($) Boe MMBTU | |
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 708,284 | $ 484,184 |
Derivative liabilities - Fair value | $ 762,569 | $ 390,171 |
Customer Counterparty | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 8,211 | 7,519 |
Customer Counterparty | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 83,113 | 83,274 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 704,933 | $ 484,184 |
Derivative liabilities - Fair value | 762,473 | 389,889 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative assets - Fair value | 404,275 | 222,709 |
Derivative liabilities - Fair value | 373,675 | 194,567 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative assets - Fair value | 304,863 | 165,246 |
Derivative liabilities - Fair value | $ 13,768 | $ 4,399 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Crude oil | Written options | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 1,205 | 0 |
Derivative assets - Fair value | $ 1,330 | $ 87 |
Derivative liabilities - Fair value | $ 0 | $ 0 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Crude oil | Collars | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 3,218 | 2,837 |
Derivative assets - Fair value | $ 70,802 | $ 33,826 |
Derivative liabilities - Fair value | $ 817 | $ 106 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Crude oil | Swaps | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 3,788 | 4,682 |
Derivative assets - Fair value | $ 105,189 | $ 71,242 |
Derivative liabilities - Fair value | $ 2,658 | $ 60 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Crude oil | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 8,211 | 7,519 |
Derivative assets - Fair value | $ 177,321 | $ 105,155 |
Derivative liabilities - Fair value | $ 3,475 | $ 166 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Natural gas | Collars | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 28,206 | 24,315 |
Derivative assets - Fair value | $ 29,062 | $ 10,903 |
Derivative liabilities - Fair value | $ 3,815 | $ 458 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Natural gas | Swaps | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 54,907 | 58,959 |
Derivative assets - Fair value | $ 98,480 | $ 49,188 |
Derivative liabilities - Fair value | $ 6,478 | $ 3,775 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Natural gas | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 83,113 | 83,274 |
Derivative assets - Fair value | $ 127,542 | $ 60,091 |
Derivative liabilities - Fair value | 10,293 | 4,233 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative assets - Fair value | 99,412 | 57,463 |
Derivative liabilities - Fair value | $ 359,907 | $ 190,168 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Crude oil | Purchased options | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 1,205 | 0 |
Derivative assets - Fair value | $ 0 | $ 0 |
Derivative liabilities - Fair value | $ 1,154 | $ 81 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Crude oil | Collars | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 3,223 | 2,888 |
Derivative assets - Fair value | $ 288 | $ 0 |
Derivative liabilities - Fair value | $ 65,988 | $ 33,399 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Crude oil | Swaps | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 5,935 | 7,517 |
Derivative assets - Fair value | $ 43,075 | $ 27,524 |
Derivative liabilities - Fair value | $ 133,723 | $ 82,723 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Crude oil | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 10,363 | 10,405 |
Derivative assets - Fair value | $ 43,363 | $ 27,524 |
Derivative liabilities - Fair value | $ 200,865 | $ 116,203 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Natural gas | Collars | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 30,122 | 25,929 |
Derivative assets - Fair value | $ 2,999 | $ 1,136 |
Derivative liabilities - Fair value | $ 28,390 | $ 10,936 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Natural gas | Swaps | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 91,869 | 109,567 |
Derivative assets - Fair value | $ 53,050 | $ 28,803 |
Derivative liabilities - Fair value | $ 130,652 | $ 63,029 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Natural gas | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 121,991 | 135,496 |
Derivative assets - Fair value | $ 56,049 | $ 29,939 |
Derivative liabilities - Fair value | $ 159,042 | $ 73,965 |
Derivatives - Net Gains (Losses
Derivatives - Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | $ 1,855 | $ 6,670 | $ 16,881 | $ 31,339 |
Interest rate contracts | Interest rate contracts and other derivative income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 5,984 | (5,338) | 13,569 | 8,563 |
Foreign exchange contracts | Foreign exchange income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | (4,557) | 11,972 | 2,765 | 22,215 |
Credit contracts | Interest rate contracts and other derivative income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | (9) | 150 | 65 | 195 |
Equity contracts | Lending fees | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 93 | 74 | 187 | 385 |
Commodity contracts | Interest rate contracts and other derivative income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | $ 344 | $ (188) | $ 295 | $ (19) |
Derivatives - Offsetting of Der
Derivatives - Offsetting of Derivatives (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative assets | ||
Derivative assets - Fair value | $ 708,284,000 | $ 484,184,000 |
Less: Master netting agreements | (126,414,000) | (58,679,000) |
Less: Cash collateral received/paid | (125,304,000) | (42,274,000) |
Net derivative assets | 456,566,000 | 383,231,000 |
Less: Security Collateral Received | 0 | 0 |
Net Amount | 456,566,000 | 383,231,000 |
Contracts not subject to master netting arrangements, gross amounts recognized | 1,100,000 | 587,000 |
Derivative, cash collateral received, including amount offset by fair value assets, and excess cash amount | (141,900,000) | (47,000,000) |
Amount used to offset against derivative assets | (125,304,000) | (42,274,000) |
Derivative liabilities | ||
Gross amounts recognized | 762,569,000 | 390,171,000 |
Less: Master netting agreements | (126,414,000) | (58,679,000) |
Less: Cash collateral received/paid | 0 | (174,048,000) |
Net derivative liabilities | 636,155,000 | 157,444,000 |
Less: Security Collateral Pledged | (118,694,000) | (106,598,000) |
Net Amount | 517,461,000 | 50,846,000 |
Contracts not subject to master netting arrangements, gross amounts recognized | 517,000 | 666,000 |
Derivative, cash collateral posted against derivative liabilities, including amount offset the derivative fair value liabilities, and excess cash amount | 4 | 176,500,000 |
Amount used to offset against derivative liabilities | $ 0 | $ (174,048,000) |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Fair Value | Fair Value |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Credit Losses - Composition of Loans Held-for-Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | $ 46,502,076 | $ 41,693,781 | ||||
Allowance for loan losses | (563,270) | $ (545,685) | (541,579) | $ (585,724) | $ (607,506) | $ (619,983) |
Loans held-for-investment, net | 45,938,806 | 41,152,202 | ||||
Net deferred loan fees and net unamortized premiums | (56,200) | (50,700) | ||||
Commercial and industrial (“C&I”) | CARES Act, Paycheck Protection Program | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 153,300 | 534,200 | ||||
Commercial lending | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 33,903,426 | 30,327,746 | ||||
Commercial lending | Commercial and industrial (“C&I”) | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 15,377,117 | 14,150,608 | ||||
Allowance for loan losses | (363,282) | (339,446) | (338,252) | (362,528) | (394,084) | (398,040) |
Commercial lending | Commercial real estate (“CRE”) | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 13,566,748 | 12,155,047 | ||||
Allowance for loan losses | (140,245) | (147,104) | (150,940) | (161,962) | (146,399) | (163,791) |
Commercial lending | Real estate loan | Multifamily residential | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 4,443,704 | 3,675,605 | ||||
Allowance for loan losses | (26,552) | (24,176) | (14,400) | (21,925) | (27,407) | (27,573) |
Commercial lending | Construction and land | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 515,857 | 346,486 | ||||
Allowance for loan losses | (6,682) | (11,016) | (15,468) | (15,643) | (19,089) | (10,239) |
Commercial lending | Total CRE | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 18,526,309 | 16,177,138 | ||||
Consumer lending | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 12,598,650 | 11,366,035 | ||||
Consumer lending | Real estate loan | Single-family residential | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 10,234,473 | 9,093,702 | ||||
Allowance for loan losses | (21,840) | (18,210) | (17,160) | (16,530) | (15,839) | (15,520) |
Consumer lending | HELOCs | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 2,280,080 | 2,144,821 | ||||
Allowance for loan losses | (3,220) | (3,748) | (3,435) | (2,938) | (2,670) | (2,690) |
Consumer lending | Total residential mortgage | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 12,514,553 | 11,238,523 | ||||
Consumer lending | Other consumer | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 84,097 | 127,512 | ||||
Allowance for loan losses | $ (1,449) | $ (1,985) | $ (1,924) | $ (4,198) | $ (2,018) | $ (2,130) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Credit Losses - Composition of Loans Held-for-Investment- Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Dec. 31, 2021 USD ($) | |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Accrued interest receivable | $ 132,300 | $ 132,300 | $ 107,400 | ||
Loans held-for-investment | 46,502,076 | 46,502,076 | 41,693,781 | ||
Asset Pledged as Collateral | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans receivable pledged to secure borrowings and provide additional borrowing capacity from the FRB and FHLB | $ 26,780,000 | $ 26,780,000 | |||
Asset Pledged as Collateral | Federal Home Loan Bank Advances | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans receivable pledged to secure borrowings and provide additional borrowing capacity from the FRB and FHLB | $ 27,670,000 | ||||
HELOC's, Commercial and Industrial ("C&I") and Commercial Real Estate ("CRE") | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Financing receivable number converted to term loans | loan | 0 | 0 | |||
HELOCs | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Converted to term loan | $ 20,900 | $ 57,600 | |||
Commercial real estate (“CRE”) | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Financing receivable number converted to term loans | loan | 2 | 0 | 2 | 2 | |
Converted to term loan | $ 26,400 | $ 26,400 | $ 5,000 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Credit Losses - Credit Risk Ratings and/or Vintage Years for Loans Held-for-Investment by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | $ 7,514,619 | $ 10,680,884 |
One Year before Current Fiscal Year | 9,462,023 | 6,294,357 |
Two Years before Current Fiscal Year | 5,431,280 | 5,104,045 |
Three Years before Current Fiscal Year | 4,417,353 | 3,678,223 |
Four Years before Current Fiscal Year | 3,228,387 | 2,400,331 |
Prior | 5,170,465 | 3,686,038 |
Revolving Loans | 11,056,032 | 9,612,862 |
Revolving Loans Converted to Term Loans | 221,917 | 237,041 |
Total | 46,502,076 | 41,693,781 |
Federal Housing Administration Loan | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Financing receivable, recorded investment, 90 days past due and still accruing, classified as pass | 1,200 | 1,600 |
Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 7,441,743 | 10,487,630 |
One Year before Current Fiscal Year | 9,298,963 | 6,171,008 |
Two Years before Current Fiscal Year | 5,287,308 | 5,019,097 |
Three Years before Current Fiscal Year | 4,280,439 | 3,553,784 |
Four Years before Current Fiscal Year | 3,043,927 | 2,329,521 |
Prior | 4,975,025 | 3,569,404 |
Revolving Loans | 10,951,399 | 9,497,636 |
Revolving Loans Converted to Term Loans | 200,631 | 232,645 |
Total | 45,479,435 | 40,860,725 |
Criticized (accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 69,634 | 159,448 |
One Year before Current Fiscal Year | 153,722 | 120,557 |
Two Years before Current Fiscal Year | 127,048 | 82,632 |
Three Years before Current Fiscal Year | 133,916 | 119,845 |
Four Years before Current Fiscal Year | 169,863 | 48,919 |
Prior | 159,433 | 94,146 |
Revolving Loans | 102,894 | 115,174 |
Revolving Loans Converted to Term Loans | 17,421 | 708 |
Total | 933,931 | 741,429 |
Criticized (nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 3,242 | 33,806 |
One Year before Current Fiscal Year | 9,338 | 2,792 |
Two Years before Current Fiscal Year | 16,924 | 2,316 |
Three Years before Current Fiscal Year | 2,998 | 4,594 |
Four Years before Current Fiscal Year | 14,597 | 21,891 |
Prior | 36,007 | 22,488 |
Revolving Loans | 1,739 | 52 |
Revolving Loans Converted to Term Loans | 3,865 | 3,688 |
Total | 88,710 | 91,627 |
Commercial lending | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 5,528,949 | 8,046,445 |
One Year before Current Fiscal Year | 6,876,455 | 4,177,452 |
Two Years before Current Fiscal Year | 3,511,628 | 3,721,211 |
Three Years before Current Fiscal Year | 3,217,750 | 2,590,956 |
Four Years before Current Fiscal Year | 2,316,405 | 1,622,234 |
Prior | 3,469,021 | 2,486,373 |
Revolving Loans | 8,923,437 | 7,647,844 |
Revolving Loans Converted to Term Loans | 59,781 | 35,231 |
Total | 33,903,426 | 30,327,746 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,700,425 | 4,026,214 |
One Year before Current Fiscal Year | 2,996,403 | 1,253,234 |
Two Years before Current Fiscal Year | 835,989 | 701,797 |
Three Years before Current Fiscal Year | 556,885 | 239,265 |
Four Years before Current Fiscal Year | 199,955 | 156,829 |
Prior | 301,287 | 245,775 |
Revolving Loans | 8,757,698 | 7,498,652 |
Revolving Loans Converted to Term Loans | 28,475 | 28,842 |
Total | 15,377,117 | 14,150,608 |
Commercial lending | Commercial and industrial (“C&I”) | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,632,575 | 3,911,722 |
One Year before Current Fiscal Year | 2,948,526 | 1,133,085 |
Two Years before Current Fiscal Year | 769,887 | 629,007 |
Three Years before Current Fiscal Year | 524,311 | 187,195 |
Four Years before Current Fiscal Year | 170,119 | 132,392 |
Prior | 270,405 | 225,326 |
Revolving Loans | 8,656,225 | 7,383,485 |
Revolving Loans Converted to Term Loans | 28,475 | 28,842 |
Total | 15,000,523 | 13,631,054 |
Commercial lending | Commercial and industrial (“C&I”) | Criticized (accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 64,608 | 85,036 |
One Year before Current Fiscal Year | 43,748 | 117,357 |
Two Years before Current Fiscal Year | 50,746 | 72,277 |
Three Years before Current Fiscal Year | 32,574 | 51,553 |
Four Years before Current Fiscal Year | 24,206 | 15,136 |
Prior | 19,222 | 4,005 |
Revolving Loans | 101,437 | 115,167 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 336,541 | 460,531 |
Commercial lending | Commercial and industrial (“C&I”) | Criticized (nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 3,242 | 29,456 |
One Year before Current Fiscal Year | 4,129 | 2,792 |
Two Years before Current Fiscal Year | 15,356 | 513 |
Three Years before Current Fiscal Year | 0 | 517 |
Four Years before Current Fiscal Year | 5,630 | 9,301 |
Prior | 11,660 | 16,444 |
Revolving Loans | 36 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 40,053 | 59,023 |
Commercial lending | Commercial real estate (“CRE”) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 2,643,050 | 2,867,598 |
One Year before Current Fiscal Year | 2,679,840 | 2,093,703 |
Two Years before Current Fiscal Year | 1,885,049 | 2,239,696 |
Three Years before Current Fiscal Year | 2,007,262 | 1,884,558 |
Four Years before Current Fiscal Year | 1,699,430 | 1,150,285 |
Prior | 2,468,373 | 1,784,150 |
Revolving Loans | 152,438 | 128,668 |
Revolving Loans Converted to Term Loans | 31,306 | 6,389 |
Total | 13,566,748 | 12,155,047 |
Commercial lending | Commercial real estate (“CRE”) | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 2,638,027 | 2,792,193 |
One Year before Current Fiscal Year | 2,565,665 | 2,090,503 |
Two Years before Current Fiscal Year | 1,815,298 | 2,230,520 |
Three Years before Current Fiscal Year | 1,907,721 | 1,863,481 |
Four Years before Current Fiscal Year | 1,598,242 | 1,120,682 |
Prior | 2,358,965 | 1,727,862 |
Revolving Loans | 150,983 | 128,668 |
Revolving Loans Converted to Term Loans | 14,498 | 6,389 |
Total | 13,049,399 | 11,960,298 |
Commercial lending | Commercial real estate (“CRE”) | Criticized (accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 5,023 | 71,055 |
One Year before Current Fiscal Year | 109,974 | 3,200 |
Two Years before Current Fiscal Year | 69,751 | 9,176 |
Three Years before Current Fiscal Year | 99,541 | 21,077 |
Four Years before Current Fiscal Year | 101,188 | 24,851 |
Prior | 102,333 | 55,892 |
Revolving Loans | 1,455 | 0 |
Revolving Loans Converted to Term Loans | 16,808 | 0 |
Total | 506,073 | 185,251 |
Commercial lending | Commercial real estate (“CRE”) | Criticized (nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 4,350 |
One Year before Current Fiscal Year | 4,201 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 4,752 |
Prior | 7,075 | 396 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 11,276 | 9,498 |
Commercial lending | Real estate loan | Multifamily residential | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,091,403 | 1,026,295 |
One Year before Current Fiscal Year | 967,791 | 726,772 |
Two Years before Current Fiscal Year | 687,577 | 689,174 |
Three Years before Current Fiscal Year | 592,675 | 441,663 |
Four Years before Current Fiscal Year | 391,832 | 315,120 |
Prior | 699,125 | 456,057 |
Revolving Loans | 13,301 | 20,524 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 4,443,704 | 3,675,605 |
Commercial lending | Real estate loan | Multifamily residential | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,091,403 | 1,026,295 |
One Year before Current Fiscal Year | 967,791 | 726,772 |
Two Years before Current Fiscal Year | 687,577 | 688,453 |
Three Years before Current Fiscal Year | 591,961 | 419,319 |
Four Years before Current Fiscal Year | 371,378 | 308,087 |
Prior | 661,082 | 424,947 |
Revolving Loans | 13,301 | 20,524 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 4,384,493 | 3,614,397 |
Commercial lending | Real estate loan | Multifamily residential | Criticized (accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 721 | |
Three Years before Current Fiscal Year | 714 | 22,344 |
Four Years before Current Fiscal Year | 20,454 | 7,033 |
Prior | 36,577 | 30,666 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 57,745 | 60,764 |
Commercial lending | Real estate loan | Multifamily residential | Criticized (nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 1,466 | 444 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 1,466 | 444 |
Commercial lending | Construction and land | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 94,071 | 126,338 |
One Year before Current Fiscal Year | 232,421 | 103,743 |
Two Years before Current Fiscal Year | 103,013 | 90,544 |
Three Years before Current Fiscal Year | 60,928 | 25,470 |
Four Years before Current Fiscal Year | 25,188 | 0 |
Prior | 236 | 391 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 515,857 | 346,486 |
Commercial lending | Construction and land | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 94,071 | 122,983 |
One Year before Current Fiscal Year | 232,421 | 103,743 |
Two Years before Current Fiscal Year | 98,608 | 90,544 |
Three Years before Current Fiscal Year | 60,928 | 3,412 |
Four Years before Current Fiscal Year | 3,332 | 0 |
Prior | 236 | 391 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 489,596 | 321,073 |
Commercial lending | Construction and land | Criticized (accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 3,355 |
One Year before Current Fiscal Year | 0 | |
Two Years before Current Fiscal Year | 4,405 | 0 |
Three Years before Current Fiscal Year | 0 | 22,058 |
Four Years before Current Fiscal Year | 21,856 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 26,261 | 25,413 |
Commercial lending | Construction and land | Criticized (nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 0 | 0 |
Commercial lending | Total CRE | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 3,828,524 | 4,020,231 |
One Year before Current Fiscal Year | 3,880,052 | 2,924,218 |
Two Years before Current Fiscal Year | 2,675,639 | 3,019,414 |
Three Years before Current Fiscal Year | 2,660,865 | 2,351,691 |
Four Years before Current Fiscal Year | 2,116,450 | 1,465,405 |
Prior | 3,167,734 | 2,240,598 |
Revolving Loans | 165,739 | 149,192 |
Revolving Loans Converted to Term Loans | 31,306 | 6,389 |
Total | 18,526,309 | 16,177,138 |
Consumer lending | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,985,670 | 2,634,439 |
One Year before Current Fiscal Year | 2,585,568 | 2,116,905 |
Two Years before Current Fiscal Year | 1,919,652 | 1,382,834 |
Three Years before Current Fiscal Year | 1,199,603 | 1,087,267 |
Four Years before Current Fiscal Year | 911,982 | 778,097 |
Prior | 1,701,444 | 1,199,665 |
Revolving Loans | 2,132,595 | 1,965,018 |
Revolving Loans Converted to Term Loans | 162,136 | 201,810 |
Total | 12,598,650 | 11,366,035 |
Consumer lending | Real estate loan | Single-family residential | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,983,527 | 2,616,958 |
One Year before Current Fiscal Year | 2,565,374 | 2,108,370 |
Two Years before Current Fiscal Year | 1,906,720 | 1,378,138 |
Three Years before Current Fiscal Year | 1,198,130 | 1,085,732 |
Four Years before Current Fiscal Year | 909,431 | 769,545 |
Prior | 1,671,291 | 1,134,959 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 10,234,473 | 9,093,702 |
Consumer lending | Real estate loan | Single-family residential | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,983,527 | 2,616,958 |
One Year before Current Fiscal Year | 2,565,374 | 2,108,370 |
Two Years before Current Fiscal Year | 1,903,821 | 1,375,929 |
Three Years before Current Fiscal Year | 1,194,265 | 1,079,030 |
Four Years before Current Fiscal Year | 898,768 | 763,351 |
Prior | 1,655,824 | 1,127,516 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 10,201,579 | 9,071,154 |
Consumer lending | Real estate loan | Single-family residential | Criticized (accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 2,146 | 458 |
Three Years before Current Fiscal Year | 1,087 | 2,813 |
Four Years before Current Fiscal Year | 2,159 | 1,899 |
Prior | 1,301 | 3,212 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 6,693 | 8,382 |
Consumer lending | Real estate loan | Single-family residential | Criticized (nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 753 | 1,751 |
Three Years before Current Fiscal Year | 2,778 | 3,889 |
Four Years before Current Fiscal Year | 8,504 | 4,295 |
Prior | 14,166 | 4,231 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 26,201 | 14,166 |
Consumer lending | HELOCs | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 929 | 648 |
One Year before Current Fiscal Year | 7,122 | 3,277 |
Two Years before Current Fiscal Year | 7,674 | 4,696 |
Three Years before Current Fiscal Year | 1,473 | 1,535 |
Four Years before Current Fiscal Year | 2,551 | 6,811 |
Prior | 14,980 | 12,559 |
Revolving Loans | 2,083,215 | 1,913,485 |
Revolving Loans Converted to Term Loans | 162,136 | 201,810 |
Total | 2,280,080 | 2,144,821 |
Consumer lending | HELOCs | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 929 | 648 |
One Year before Current Fiscal Year | 6,114 | 3,277 |
Two Years before Current Fiscal Year | 6,859 | 4,644 |
Three Years before Current Fiscal Year | 1,253 | 1,347 |
Four Years before Current Fiscal Year | 2,088 | 3,268 |
Prior | 13,340 | 11,215 |
Revolving Loans | 2,081,521 | 1,913,478 |
Revolving Loans Converted to Term Loans | 157,658 | 197,414 |
Total | 2,269,762 | 2,135,291 |
Consumer lending | HELOCs | Criticized (accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 371 | |
Revolving Loans | 2 | 7 |
Revolving Loans Converted to Term Loans | 613 | 708 |
Total | 615 | 1,086 |
Consumer lending | HELOCs | Criticized (nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One Year before Current Fiscal Year | 1,008 | 0 |
Two Years before Current Fiscal Year | 815 | 52 |
Three Years before Current Fiscal Year | 220 | 188 |
Four Years before Current Fiscal Year | 463 | 3,543 |
Prior | 1,640 | 973 |
Revolving Loans | 1,692 | 0 |
Revolving Loans Converted to Term Loans | 3,865 | 3,688 |
Total | 9,703 | 8,444 |
Consumer lending | Total residential mortgage | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,984,456 | 2,617,606 |
One Year before Current Fiscal Year | 2,572,496 | 2,111,647 |
Two Years before Current Fiscal Year | 1,914,394 | 1,382,834 |
Three Years before Current Fiscal Year | 1,199,603 | 1,087,267 |
Four Years before Current Fiscal Year | 911,982 | 776,356 |
Prior | 1,686,271 | 1,147,518 |
Revolving Loans | 2,083,215 | 1,913,485 |
Revolving Loans Converted to Term Loans | 162,136 | 201,810 |
Total | 12,514,553 | 11,238,523 |
Consumer lending | Other consumer | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,214 | 16,833 |
One Year before Current Fiscal Year | 13,072 | 5,258 |
Two Years before Current Fiscal Year | 5,258 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 1,741 |
Prior | 15,173 | 52,147 |
Revolving Loans | 49,380 | 51,533 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 84,097 | 127,512 |
Consumer lending | Other consumer | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,211 | 16,831 |
One Year before Current Fiscal Year | 13,072 | 5,258 |
Two Years before Current Fiscal Year | 5,258 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 1,741 |
Prior | 15,173 | 52,147 |
Revolving Loans | 49,369 | 51,481 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 84,083 | 127,458 |
Consumer lending | Other consumer | Criticized (accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 3 | 2 |
One Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 3 | 2 |
Consumer lending | Other consumer | Criticized (nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
One Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 11 | 52 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | $ 11 | $ 52 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Credit Losses - Aging Analysis on Loans Held-for-Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | $ 89,935 | $ 93,181 |
Loans held-for-investment | 46,502,076 | 41,693,781 |
Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 46,372,850 | 41,555,745 |
Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 39,291 | 44,855 |
Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 31,442 | 31,091 |
Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 7,849 | 13,764 |
Commercial lending | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 52,795 | 68,965 |
Loans held-for-investment | 33,903,426 | 30,327,746 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 40,053 | 59,023 |
Loans held-for-investment | 15,377,117 | 14,150,608 |
Commercial lending | Commercial real estate (“CRE”) | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 11,276 | 9,498 |
Loans held-for-investment | 13,566,748 | 12,155,047 |
Commercial lending | Real estate loan | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 1,466 | 444 |
Loans held-for-investment | 4,443,704 | 3,675,605 |
Commercial lending | Construction and land | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 0 | 0 |
Loans held-for-investment | 515,857 | 346,486 |
Commercial lending | Total CRE | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 12,742 | 9,942 |
Loans held-for-investment | 18,526,309 | 16,177,138 |
Commercial lending | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 33,839,019 | 30,238,648 |
Commercial lending | Current Accruing Loans | Commercial and industrial (“C&I”) | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 15,326,934 | 14,080,516 |
Commercial lending | Current Accruing Loans | Commercial real estate (“CRE”) | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 13,554,820 | 12,141,827 |
Commercial lending | Current Accruing Loans | Real estate loan | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 4,441,408 | 3,669,819 |
Commercial lending | Current Accruing Loans | Construction and land | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 515,857 | 346,486 |
Commercial lending | Current Accruing Loans | Total CRE | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 18,512,085 | 16,158,132 |
Commercial lending | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 11,612 | 20,133 |
Commercial lending | Total Accruing Past Due Loans | Commercial and industrial (“C&I”) | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 10,130 | 11,069 |
Commercial lending | Total Accruing Past Due Loans | Commercial real estate (“CRE”) | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 652 | 3,722 |
Commercial lending | Total Accruing Past Due Loans | Real estate loan | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 830 | 5,342 |
Commercial lending | Total Accruing Past Due Loans | Construction and land | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 0 | 0 |
Commercial lending | Total Accruing Past Due Loans | Total CRE | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 1,482 | 9,064 |
Commercial lending | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 11,378 | 16,025 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Commercial and industrial (“C&I”) | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 10,097 | 6,983 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Commercial real estate (“CRE”) | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 451 | 3,722 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Real estate loan | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 830 | 5,320 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Construction and land | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 0 | 0 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Total CRE | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 1,281 | 9,042 |
Commercial lending | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 234 | 4,108 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Commercial and industrial (“C&I”) | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 33 | 4,086 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Commercial real estate (“CRE”) | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 201 | 0 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Real estate loan | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 0 | 22 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Construction and land | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 0 | 0 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Total CRE | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 201 | 22 |
Consumer lending | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 37,140 | 24,216 |
Loans held-for-investment | 12,598,650 | 11,366,035 |
Consumer lending | Real estate loan | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 27,426 | 15,720 |
Loans held-for-investment | 10,234,473 | 9,093,702 |
Consumer lending | HELOCs | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 9,703 | 8,444 |
Loans held-for-investment | 2,280,080 | 2,144,821 |
Consumer lending | Total residential mortgage | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 37,129 | 24,164 |
Loans held-for-investment | 12,514,553 | 11,238,523 |
Consumer lending | Other consumer | ||
Current, Past Due or Nonaccrual Loans | ||
Total Nonaccrual Loans | 11 | 52 |
Loans held-for-investment | 84,097 | 127,512 |
Consumer lending | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 12,533,831 | 11,317,097 |
Consumer lending | Current Accruing Loans | Real estate loan | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 10,186,333 | 9,059,222 |
Consumer lending | Current Accruing Loans | HELOCs | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 2,263,510 | 2,130,523 |
Consumer lending | Current Accruing Loans | Total residential mortgage | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 12,449,843 | 11,189,745 |
Consumer lending | Current Accruing Loans | Other consumer | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 83,988 | 127,352 |
Consumer lending | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 27,679 | 24,722 |
Consumer lending | Total Accruing Past Due Loans | Real estate loan | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 20,714 | 18,760 |
Consumer lending | Total Accruing Past Due Loans | HELOCs | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 6,867 | 5,854 |
Consumer lending | Total Accruing Past Due Loans | Total residential mortgage | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 27,581 | 24,614 |
Consumer lending | Total Accruing Past Due Loans | Other consumer | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 98 | 108 |
Consumer lending | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 20,064 | 15,066 |
Consumer lending | Accruing Loans 30-59 Days Past Due | Real estate loan | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 13,718 | 10,191 |
Consumer lending | Accruing Loans 30-59 Days Past Due | HELOCs | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 6,254 | 4,776 |
Consumer lending | Accruing Loans 30-59 Days Past Due | Total residential mortgage | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 19,972 | 14,967 |
Consumer lending | Accruing Loans 30-59 Days Past Due | Other consumer | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 92 | 99 |
Consumer lending | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 7,615 | 9,656 |
Consumer lending | Accruing Loans 60-89 Days Past Due | Real estate loan | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 6,996 | 8,569 |
Consumer lending | Accruing Loans 60-89 Days Past Due | HELOCs | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 613 | 1,078 |
Consumer lending | Accruing Loans 60-89 Days Past Due | Total residential mortgage | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | 7,609 | 9,647 |
Consumer lending | Accruing Loans 60-89 Days Past Due | Other consumer | ||
Current, Past Due or Nonaccrual Loans | ||
Loans held-for-investment | $ 6 | $ 9 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Credit Losses - Amortized Cost of Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | $ 48,565 | $ 42,887 |
Commercial lending | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 30,262 | 32,069 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 18,251 | 22,967 |
Commercial lending | Commercial real estate (“CRE”) | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 10,956 | 9,102 |
Commercial lending | Real estate loan | Multifamily residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 1,055 | 0 |
Consumer lending | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 18,303 | 10,818 |
Consumer lending | Real estate loan | Single-family residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 12,952 | 5,785 |
Consumer lending | HELOCs | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | $ 5,351 | $ 5,033 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Credit Losses - Loans Receivable Narrative (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Foreclosed assets | ||
Other assets, foreclosed assets | $ 0 | $ 10,300,000 |
Residential real estate properties | ||
Foreclosed assets | ||
Recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process | $ 12,900,000 | $ 7,300,000 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Credit Losses - Additions to TDRs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Loans Modified as TDRs | ||||
Number of Loans | loan | 2 | 4 | 3 | 5 |
Pre- Modification Outstanding Recorded Investment | $ 12,955 | $ 20,375 | $ 30,134 | $ 20,818 |
Post-modification outstanding recorded investment | 12,245 | 20,084 | 21,428 | 20,499 |
Financial Impact | $ 2,111 | $ 2,162 | $ 10,157 | $ 2,318 |
Commercial lending | Commercial and industrial (“C&I”) | ||||
Loans Modified as TDRs | ||||
Number of Loans | loan | 2 | 4 | 3 | 5 |
Pre- Modification Outstanding Recorded Investment | $ 12,955 | $ 20,375 | $ 30,134 | $ 20,818 |
Post-modification outstanding recorded investment | 12,245 | 20,084 | 21,428 | 20,499 |
Financial Impact | $ 2,111 | $ 2,162 | $ 10,157 | $ 2,318 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Credit Losses - TDR Post-Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-modification outstanding recorded investment | $ 12,245 | $ 20,084 | $ 21,428 | $ 20,499 | |
Commitment to lend | 1,900 | 1,900 | $ 5,000 | ||
Financial Impact | 2,111 | 2,162 | 10,157 | 2,318 | |
Principal | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-modification outstanding recorded investment | 0 | 3,373 | 9,183 | 3,788 | |
Interest Rate Reduction | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-modification outstanding recorded investment | 0 | 16,711 | 0 | 16,711 | |
Other | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-modification outstanding recorded investment | 12,245 | 0 | 12,245 | 0 | |
Commercial lending | Commercial and industrial (“C&I”) | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-modification outstanding recorded investment | 12,245 | 20,084 | 21,428 | 20,499 | |
Financial Impact | 2,111 | 2,162 | 10,157 | 2,318 | |
Commercial lending | Commercial and industrial (“C&I”) | Principal | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-modification outstanding recorded investment | 0 | 3,373 | 9,183 | 3,788 | |
Commercial lending | Commercial and industrial (“C&I”) | Interest Rate Reduction | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-modification outstanding recorded investment | 0 | 16,711 | 0 | 16,711 | |
Commercial lending | Commercial and industrial (“C&I”) | Other | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-modification outstanding recorded investment | $ 12,245 | $ 0 | $ 12,245 | $ 0 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Credit Losses - Loans Modified as TDRs that Subsequently Defaulted (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 1 | 0 | 2 | 1 |
Recorded Investment | $ | $ 1,055 | $ 0 | $ 4,305 | $ 11,431 |
Commercial lending | Commercial and industrial (“C&I”) | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 1 | 0 | 2 | 1 |
Recorded Investment | $ | $ 1,055 | $ 0 | $ 4,305 | $ 11,431 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Credit Losses - Collateral-Dependent Loans Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Commercial lending | ||
Financing Receivable Allowance for Credit Losses | ||
Collateral dependent loan | $ 38.9 | $ 37 |
Consumer lending | ||
Financing Receivable Allowance for Credit Losses | ||
Collateral dependent loan | $ 19 | $ 14 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Credit Losses - Summary of Activities in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | $ 545,685 | $ 607,506 | $ 541,579 | $ 619,983 |
Provision for (reversal of) credit losses on loans | 12,469 | (8,790) | 24,721 | (7,739) |
Gross charge-offs | (1,146) | (15,060) | (12,779) | (30,959) |
Gross recoveries | 7,730 | 1,785 | 11,099 | 4,278 |
Total net recoveries (charge-offs) | 6,584 | (13,275) | (1,680) | (26,681) |
Foreign currency translation adjustment | (1,468) | 283 | (1,350) | 161 |
Allowance for loan losses, end of period | 563,270 | 585,724 | 563,270 | 585,724 |
Commercial lending | Commercial and industrial (“C&I”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 339,446 | 394,084 | 338,252 | 398,040 |
Provision for (reversal of) credit losses on loans | 19,030 | (22,605) | 28,292 | (18,763) |
Gross charge-offs | (240) | (10,572) | (11,428) | (19,008) |
Gross recoveries | 6,514 | 1,338 | 9,516 | 2,098 |
Total net recoveries (charge-offs) | 6,274 | (9,234) | (1,912) | (16,910) |
Foreign currency translation adjustment | (1,468) | 283 | (1,350) | 161 |
Allowance for loan losses, end of period | 363,282 | 362,528 | 363,282 | 362,528 |
Commercial lending | Commercial real estate (“CRE”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 147,104 | 146,399 | 150,940 | 163,791 |
Provision for (reversal of) credit losses on loans | (6,819) | 19,375 | (10,312) | 9,098 |
Gross charge-offs | (671) | (4,134) | (1,069) | (11,329) |
Gross recoveries | 631 | 322 | 686 | 402 |
Total net recoveries (charge-offs) | (40) | (3,812) | (383) | (10,927) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 140,245 | 161,962 | 140,245 | 161,962 |
Commercial lending | Residential loan | Multifamily residential | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 24,176 | 27,407 | 14,400 | 27,573 |
Provision for (reversal of) credit losses on loans | 1,976 | (5,385) | 11,633 | (6,776) |
Gross charge-offs | (8) | (113) | (9) | (130) |
Gross recoveries | 408 | 16 | 528 | 1,258 |
Total net recoveries (charge-offs) | 400 | (97) | 519 | 1,128 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 26,552 | 21,925 | 26,552 | 21,925 |
Commercial lending | Construction and land | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 11,016 | 19,089 | 15,468 | 10,239 |
Provision for (reversal of) credit losses on loans | (4,338) | (3,243) | (8,844) | 5,349 |
Gross charge-offs | 0 | (209) | 0 | (280) |
Gross recoveries | 4 | 6 | 58 | 335 |
Total net recoveries (charge-offs) | 4 | (203) | 58 | 55 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 6,682 | 15,643 | 6,682 | 15,643 |
Consumer lending | Residential loan | Single-family residential | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 18,210 | 15,839 | 17,160 | 15,520 |
Provision for (reversal of) credit losses on loans | 3,461 | 609 | 4,387 | 985 |
Gross charge-offs | 0 | 0 | 0 | (134) |
Gross recoveries | 169 | 82 | 293 | 159 |
Total net recoveries (charge-offs) | 169 | 82 | 293 | 25 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 21,840 | 16,530 | 21,840 | 16,530 |
Consumer lending | HELOCs | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 3,748 | 2,670 | 3,435 | 2,690 |
Provision for (reversal of) credit losses on loans | (339) | 250 | (40) | 272 |
Gross charge-offs | (193) | 0 | (193) | (45) |
Gross recoveries | 4 | 18 | 18 | 21 |
Total net recoveries (charge-offs) | (189) | 18 | (175) | (24) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 3,220 | 2,938 | 3,220 | 2,938 |
Consumer lending | Other consumer | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 1,985 | 2,018 | 1,924 | 2,130 |
Provision for (reversal of) credit losses on loans | (502) | 2,209 | (395) | 2,096 |
Gross charge-offs | (34) | (32) | (80) | (33) |
Gross recoveries | 0 | 3 | 0 | 5 |
Total net recoveries (charge-offs) | (34) | (29) | (80) | (28) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | $ 1,449 | $ 4,198 | $ 1,449 | $ 4,198 |
Loans Receivable and Allowan_14
Loans Receivable and Allowance for Credit Losses - Summary of Activities in Allowance for loan losses by Portfolio Segments and Unfunded Credit Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for unfunded credit reserves | ||||
Allowance for unfunded credit commitments, beginning of period | $ 27,500 | |||
Allowance for unfunded credit commitments, end of period | $ 24,300 | 24,300 | ||
Provision for (reversal of) credit losses | 13,500 | $ (15,000) | 21,500 | $ (15,000) |
Unfunded Credit Commitments | ||||
Allowance for unfunded credit reserves | ||||
Allowance for unfunded credit commitments, beginning of period | 23,262 | 32,529 | 27,514 | 33,577 |
Provision for (reversal of) credit losses on unfunded credit commitments | 1,031 | (6,210) | (3,221) | (7,261) |
Foreign currency translation adjustment | 11 | (19) | 11 | (16) |
Allowance for unfunded credit commitments, end of period | $ 24,304 | $ 26,300 | $ 24,304 | $ 26,300 |
Loans Receivable and Allowan_15
Loans Receivable and Allowance for Credit Losses - Allowance for Credit Losses Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Allowance for credit losses | $ 587.6 | $ 569.1 |
Increase in allowance for credit losses | $ 18.5 |
Loans Receivable and Allowan_16
Loans Receivable and Allowance for Credit Losses- Loan Purchases, Sales And Transfers Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Single Family Residential | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-sale | $ 635 | |
Real estate loan | Commercial and industrial (“C&I”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-sale | $ 28,500 |
Loans Receivable and Allowan_17
Loans Receivable and Allowance for Credit Losses - Loan Purchases, Sales and Transfers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | $ 218,189 | $ 101,764 | $ 351,406 | $ 247,636 |
Loans transferred from held-for-sale to held-for-investment | 631 | 631 | 0 | |
Sales | 189,883 | 104,180 | 319,588 | 257,597 |
Purchases | 316,789 | 231,578 | 541,760 | 542,426 |
Writeoff | 158 | 1,300 | 217 | 1,300 |
Net gains on sales of loans | 917 | 1,491 | 3,839 | 3,272 |
Commercial and industrial (“C&I”) | Originated | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Sales | 55,400 | 67,600 | 167,700 | 198,600 |
Loans sold in secondary market | Purchased | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Sales | 134,500 | 36,600 | 151,900 | 59,000 |
Commercial lending | Commercial and industrial (“C&I”) | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 208,335 | 84,745 | 319,772 | 210,585 |
Loans transferred from held-for-sale to held-for-investment | 0 | 0 | ||
Sales | 180,029 | 84,503 | 287,503 | 210,382 |
Purchases | 194,066 | 66,415 | 304,662 | 245,093 |
Commercial lending | Commercial real estate (“CRE”) | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 9,854 | 17,019 | 31,634 | 37,051 |
Loans transferred from held-for-sale to held-for-investment | 0 | 0 | ||
Sales | 9,854 | 17,019 | 31,634 | 37,051 |
Purchases | 0 | 0 | 0 | 0 |
Commercial lending | Real estate loan | Multifamily residential | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 0 | 0 | 0 | 0 |
Loans transferred from held-for-sale to held-for-investment | 0 | 0 | ||
Sales | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 370 |
Consumer lending | Real estate loan | Single-family residential | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 0 | 0 | 0 | 0 |
Loans transferred from held-for-sale to held-for-investment | 631 | 631 | ||
Sales | 0 | 2,658 | 451 | 10,164 |
Purchases | $ 122,723 | $ 165,163 | $ 237,098 | $ 296,963 |
Investments in Qualified Affo_3
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities - Investments in Qualified Affordable Housing Partnerships, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities [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, And Related Unfunded Commitments [Abstract] | |||||
Investments in qualified affordable housing partnerships, net | $ 319,484 | $ 319,484 | $ 289,741 | ||
Accrued expenses and other liabilities — Unfunded commitments | 178,714 | 178,714 | $ 146,152 | ||
Additional Information related to Investments in Qualified Affordable Housing Partnerships, Net [Abstract] | |||||
Tax credits and other tax benefits recognized | 12,754 | $ 11,319 | 25,584 | $ 22,722 | |
Amortization expense included in income tax expense | $ 10,042 | $ 7,736 | $ 20,067 | $ 16,448 |
Investments in Qualified Affo_4
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities - Investments in Tax Credit and Other Investments, Net (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) loan | Dec. 31, 2021 USD ($) | |
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Investments in tax credit and other investments, net | $ 314,820,000 | $ 314,820,000 | $ 338,522,000 | ||
Accrued expenses and other liabilities — Unfunded commitments | 144,272,000 | 144,272,000 | 163,464,000 | ||
Amortization expense of tax credit and other investments | 14,979,000 | $ 27,291,000 | 28,879,000 | $ 52,649,000 | |
Unrealized gains (losses) recognized on equity securities with readily determinable fair values | (783,000) | 69,000 | (1,900,000) | (428,000) | |
Adjustments to equity securities without readily determinable fair values | 0 | 0 | 0 | 0 | |
Pre-tax recoveries | 0 | 0 | |||
Investment in tax credit and other investments | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Impairment Charges | 0 | 0 | 0 | 0 | |
Investment in tax credit and other investments | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Pre-tax recoveries | $ 877,000 | $ 1,300,000 | |||
Number of energy tax credits | loan | 2 | 2 | |||
Number of historic tax credits | loan | 1 | ||||
Tax credit investments | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Equity securities with readily determinable fair values | 24,800,000 | 24,800,000 | 26,600,000 | ||
Investments in Tax Credit and Other Investments and Other Assets | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Equity securities without readily determinable fair values | $ 35,000,000 | $ 35,000,000 | $ 33,100,000 |
Investments in Qualified Affo_5
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities - Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments in Tax Credit and Other Investments, Net [Line Items] | ||
Fair Value | $ 6,255,504 | $ 9,965,353 |
Collateralized loan obligations (“CLOs”) | ||
Investments in Tax Credit and Other Investments, Net [Line Items] | ||
Fair Value | 596,371 | 589,950 |
Collateralized loan obligations (“CLOs”) | AFS debt securities | ||
Investments in Tax Credit and Other Investments, Net [Line Items] | ||
Fair Value | $ 284,000 | $ 291,700 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 465,697 | $ 465,697 |
Commitments and Contingencies -
Commitments and Contingencies - Credit-Related Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loan commitments | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | $ 3,642,119 | |
Expire After One Year Through Three Years | 2,880,229 | |
Expire After Three Years Through Five Years | 963,277 | |
Expire After Five Years | 139,623 | |
Total | 7,625,248 | $ 6,911,398 |
Commercial letters of credit and SBLCs | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | 1,080,377 | |
Expire After One Year Through Three Years | 342,243 | |
Expire After Three Years Through Five Years | 111,182 | |
Expire After Five Years | 732,561 | |
Total | 2,266,363 | 2,221,699 |
Commitments to Extend Credit | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | 4,722,496 | |
Expire After One Year Through Three Years | 3,222,472 | |
Expire After Three Years Through Five Years | 1,074,459 | |
Expire After Five Years | 872,184 | |
Total | $ 9,891,611 | $ 9,133,097 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments to Extend Credit | ||
Letters of credit | $ 2,270,000 | $ 2,220,000 |
Allowance for unfunded credit commitments | 24,300 | 27,500 |
Accrued expenses and other liabilities | ||
Other Commitments | ||
Unfunded commitments for investments in AHP and other tax credit investments | 323,000 | 309,600 |
Single Family and Multi-family Residential Loans | Loans Sold or Securitized with Recourse | Loans Sold or Securitized With Recourse | ||
Commitments to Extend Credit | ||
Allowance for unfunded credit commitments | 37 | 29 |
Standby Letters of Credit | ||
Commitments to Extend Credit | ||
Letters of credit | 2,230,000 | 2,140,000 |
Commercial Letters of Credit | ||
Commitments to Extend Credit | ||
Letters of credit | $ 33,600 | $ 78,900 |
Commitments and Contingencies_3
Commitments and Contingencies - Guarantees Outstanding (Details) - Loans Sold or Securitized With Recourse - Loans Sold or Securitized with Recourse - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Guarantor obligation, maximum potential future payment [Abstract] | ||
Expire in One Year or Less | $ 12 | |
Expire After One Year Through Three Years | 174 | |
Expire After Three Years Through Five Years | 32 | |
Expire After Five Years | 21,893 | |
Total | 22,111 | $ 22,922 |
Carrying Value | 29,204 | 31,095 |
Single Family Residential | ||
Guarantor obligation, maximum potential future payment [Abstract] | ||
Expire in One Year or Less | 12 | |
Expire After One Year Through Three Years | 174 | |
Expire After Three Years Through Five Years | 32 | |
Expire After Five Years | 6,897 | |
Total | 7,115 | 7,926 |
Carrying Value | 7,115 | 7,926 |
Multifamily residential | ||
Guarantor obligation, maximum potential future payment [Abstract] | ||
Expire in One Year or Less | 0 | |
Expire After One Year Through Three Years | 0 | |
Expire After Three Years Through Five Years | 0 | |
Expire After Five Years | 14,996 | |
Total | 14,996 | 14,996 |
Carrying Value | $ 22,089 | $ 23,169 |
Stock Compensation Plans - Summ
Stock Compensation Plans - Summary of Total Share-Based Compensation Expense and Related Net Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total Share-based Stock Compensation Expense and Related Net Tax Benefit [Abstract] | ||||
Stock compensation costs | $ 8,576 | $ 8,208 | $ 17,009 | $ 16,025 |
Related net tax benefits for stock compensation plans | $ 109 | $ 37 | $ 5,268 | $ 1,657 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) employee shares | |
RSUs | Cliff | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Performance-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Modified from cash-settled RSUs (in shares) | shares | 0 | ||
Total unrecognized compensation cost | $ 20,300,000 | $ 20,300,000 | |
Weighted average period to recognize unrecognized compensation cost | 2 years 1 month 9 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% | ||
Performance-Based RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential for awards to vest (as a percent) | 200% | ||
Performance-Based RSUs | Cliff | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Time-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Modified from cash-settled RSUs (in shares) | shares | 31,523 | ||
Number of grantees affected | employee | 119 | ||
Plan modification, incremental cost | 0 | $ 0 | |
Total unrecognized compensation cost | $ 38,100,000 | $ 38,100,000 | |
Weighted average period to recognize unrecognized compensation cost | 2 years 1 month 17 days | ||
Time-Based RSUs Settled in Cash | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Modified from cash-settled RSUs (in shares) | shares | 31,523 | ||
Cash used to settle award | $ 318,000 |
Stock Compensation Plans - Su_2
Stock Compensation Plans - Summary of Activity for Time-Based and Performance-Based RSUs (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Time-Based RSUs | |
Shares | |
Outstanding, at beginning of period (in shares) | 1,329,946 |
Modified from cash-settled RSUs (in shares) | 31,523 |
Granted (in shares) | 409,065 |
Vested (in shares) | (370,018) |
Forfeited (in shares) | (68,084) |
Outstanding, at end of period (in shares) | 1,332,432 |
Weighted- Average Grant Date Fair Value | |
Outstanding, at beginning of period (in dollars per share) | $ / shares | $ 52.65 |
Modified from cash-settled RSUs (in dollars per share) | $ / shares | 77.28 |
Granted (in dollars per share) | $ / shares | 52.97 |
Vested (in dollars per share) | $ / shares | 53.11 |
Forfeited (in dollars per share) | $ / shares | 61.50 |
Outstanding, at end of period (in dollars per share) | $ / shares | $ 52.76 |
Performance-Based RSUs | |
Shares | |
Outstanding, at beginning of period (in shares) | 369,731 |
Modified from cash-settled RSUs (in shares) | 0 |
Granted (in shares) | 91,874 |
Vested (in shares) | (125,213) |
Forfeited (in shares) | 0 |
Outstanding, at end of period (in shares) | 336,392 |
Weighted- Average Grant Date Fair Value | |
Outstanding, at beginning of period (in dollars per share) | $ / shares | $ 54.28 |
Modified from cash-settled RSUs (in dollars per share) | $ / shares | 0 |
Granted (in dollars per share) | $ / shares | 77.91 |
Vested (in dollars per share) | $ / shares | 54.64 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding, at end of period (in dollars per share) | $ / shares | $ 60.60 |
Time-Based RSUs Settled in Cash | |
Shares | |
Outstanding, at beginning of period (in shares) | 32,647 |
Modified from cash-settled RSUs (in shares) | 31,523 |
Granted (in shares) | 2,668 |
Vested (in shares) | (3,471) |
Forfeited (in shares) | (321) |
Outstanding, at end of period (in shares) | 0 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings Per Share - Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic: | ||||
Net income | $ 258,329 | $ 224,742 | $ 495,981 | $ 429,736 |
Weighted-average number of shares outstanding (in shares) | 141,429 | 141,868 | 141,725 | 141,758 |
Basic EPS (in dollars per share) | $ 1.83 | $ 1.58 | $ 3.50 | $ 3.03 |
Diluted: | ||||
Net income | $ 258,329 | $ 224,742 | $ 495,981 | $ 429,736 |
Weighted-average number of shares outstanding (in shares) | 141,429 | 141,868 | 141,725 | 141,758 |
Add: Dilutive impact of unvested RSUs (in shares) | 943 | 1,172 | 1,113 | 1,205 |
Diluted weighted-average number of shares outstanding (in shares) | 142,372 | 143,040 | 142,838 | 142,963 |
Diluted EPS (in dollars per share) | $ 1.81 | $ 1.57 | $ 3.47 | $ 3.01 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2020 | |
Stockholders' Equity and Earnings Per Share [Line Items] | |||||
Stock repurchase program, amount authorized | $ 500 | ||||
Repurchased by company (in shares) | 1,385,517 | 1,385,517 | |||
Average price (in dollars per share) | $ 72.17 | $ 72.17 | |||
Total cost | $ 100 | $ 100 | |||
RSUs | |||||
Stockholders' Equity and Earnings Per Share [Line Items] | |||||
Weighted-average anti-dilutive shares (in shares) | 381,000 | 2,000 | 70,000 | 4,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 5,703,456 | $ 5,837,218 | $ 5,285,027 | $ 5,837,218 | $ 5,269,175 |
Other comprehensive (loss) income | (205,723) | 75,351 | (510,267) | (59,014) | |
Ending balance | 5,609,482 | 5,703,456 | 5,547,548 | 5,609,482 | 5,547,548 |
Net changes in unrealized gains (losses) on securities transferred from AFS to HTM | 113,000 | ||||
Debt Securities | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (365,653) | (85,703) | (81,201) | (85,703) | 52,247 |
Net unrealized gains (losses) arising during the period | (192,858) | 73,494 | (474,219) | (59,819) | |
Amounts reclassified from AOCI | 3,730 | (445) | 5,141 | (580) | |
Other comprehensive (loss) income | (189,128) | 73,049 | (469,078) | (60,399) | |
Ending balance | (554,781) | (365,653) | (8,152) | (554,781) | (8,152) |
Net changes in unrealized gains (losses) on securities transferred from AFS to HTM | (3,750) | 0 | (6,061) | 0 | |
Cash Flow Hedges | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (24,466) | 257 | (798) | 257 | (1,230) |
Net unrealized gains (losses) arising during the period | (5,582) | (76) | (28,809) | 229 | |
Amounts reclassified from AOCI | (798) | 144 | (2,294) | 271 | |
Other comprehensive (loss) income | (6,380) | 68 | (31,103) | 500 | |
Ending balance | (30,846) | (24,466) | (730) | (30,846) | (730) |
Foreign Currency Translation Adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (4,806) | (4,935) | (8,041) | (4,935) | (6,692) |
Net unrealized gains (losses) arising during the period | (10,215) | 2,234 | (10,086) | 885 | |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |
Other comprehensive (loss) income | (10,215) | 2,234 | (10,086) | 885 | |
Ending balance | (15,021) | (4,806) | (5,807) | (15,021) | (5,807) |
AOCI, Net of Tax | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (394,925) | (90,381) | (90,040) | (90,381) | 44,325 |
Net unrealized gains (losses) arising during the period | (208,655) | 75,652 | (513,114) | (58,705) | |
Amounts reclassified from AOCI | 2,932 | (301) | 2,847 | (309) | |
Other comprehensive (loss) income | (205,723) | 75,351 | (510,267) | (59,014) | |
Ending balance | $ (600,648) | $ (394,925) | $ (14,689) | $ (600,648) | $ (14,689) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Before-Tax | |||||
Net change | $ (286,779) | $ 105,330 | $ (719,269) | $ (84,844) | |
Tax Effect | |||||
Net change | 81,056 | (29,979) | 209,002 | 25,830 | |
Net-of-Tax | |||||
Amortization of unrealized losses on transferred securities | $ (113,000) | ||||
Other comprehensive (loss) income | (205,723) | 75,351 | (510,267) | (59,014) | |
Debt Securities | |||||
Before-Tax | |||||
Net unrealized (losses) gains arising during the period | (273,840) | 104,283 | (673,302) | (84,993) | |
Net realized (gains) reclassified into net income | (28) | (632) | (1,306) | (824) | |
Amortization of unrealized losses on transferred securities | 5,324 | 0 | 8,605 | 0 | |
Net change | (268,544) | 103,651 | (666,003) | (85,817) | |
Tax Effect | |||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 80,982 | (30,789) | 199,083 | 25,174 | |
Net realized (gains) reclassified into net income | 8 | 187 | 386 | 244 | |
Amortization of unrealized losses on transferred securities | (1,574) | 0 | (2,544) | 0 | |
Net change | 79,416 | (30,602) | 196,925 | 25,418 | |
Net-of-Tax | |||||
Net unrealized gains (losses) arising during the period | (192,858) | 73,494 | (474,219) | (59,819) | |
Net realized (gains) reclassified into net income | (20) | (445) | (920) | (580) | |
Amortization of unrealized losses on transferred securities | 3,750 | 0 | 6,061 | 0 | |
Net realized losses (gains) reclassified into net income | 3,730 | (445) | 5,141 | (580) | |
Other comprehensive (loss) income | (189,128) | 73,049 | (469,078) | (60,399) | |
Cash Flow Hedges | |||||
Before-Tax | |||||
Net unrealized (losses) gains arising during the period | (7,837) | (106) | (40,446) | 320 | |
Net realized losses (gains) reclassified into net income | (1,120) | 201 | (3,220) | 378 | |
Net change | (8,957) | 95 | (43,666) | 698 | |
Tax Effect | |||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 2,255 | 30 | 11,637 | (91) | |
Net realized losses (gains) reclassified into net income | 322 | (57) | 926 | (107) | |
Net change | 2,577 | (27) | 12,563 | (198) | |
Net-of-Tax | |||||
Net unrealized gains (losses) arising during the period | (5,582) | (76) | (28,809) | 229 | |
Net realized losses (gains) reclassified into net income | (798) | 144 | (2,294) | 271 | |
Other comprehensive (loss) income | (6,380) | 68 | (31,103) | 500 | |
Foreign Currency Translation Adjustments | |||||
Before-Tax | |||||
Net unrealized (losses) gains arising during the period | (9,278) | 1,584 | (9,600) | 275 | |
Net change | (9,278) | 1,584 | (9,600) | 275 | |
Tax Effect | |||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (937) | 650 | (486) | 610 | |
Net change | (937) | 650 | (486) | 610 | |
Net-of-Tax | |||||
Net unrealized gains (losses) arising during the period | (10,215) | 2,234 | (10,086) | 885 | |
Net realized losses (gains) reclassified into net income | 0 | 0 | 0 | 0 | |
Other comprehensive (loss) income | $ (10,215) | $ 2,234 | $ (10,086) | $ 885 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Number of core segments | 2 |
Business Segments - Operating R
Business Segments - Operating Results and Other Key Financial Measures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information | |||||
Net interest income (loss) before provision for credit losses | $ 472,952 | $ 376,473 | $ 888,565 | $ 730,168 | |
Provision for (reversal of) credit losses | 13,500 | (15,000) | 21,500 | (15,000) | |
Noninterest income | 78,444 | 68,431 | 158,187 | 141,297 | |
Noninterest expense | 196,860 | 189,523 | 386,310 | 380,600 | |
Segment income (loss) before income taxes | 341,036 | 270,381 | 638,942 | 505,865 | |
Segment net income (loss) | 258,329 | 224,742 | 495,981 | 429,736 | |
Segment assets | 62,394,283 | 59,854,876 | 62,394,283 | 59,854,876 | $ 60,870,701 |
Consumer and Business Banking | |||||
Segment Reporting Information | |||||
Net interest income (loss) before provision for credit losses | 284,373 | 173,775 | 497,587 | 323,674 | |
Provision for (reversal of) credit losses | 2,898 | 2,358 | 6,002 | (1,891) | |
Noninterest income | 28,384 | 24,332 | 53,583 | 47,774 | |
Noninterest expense | 94,295 | 87,650 | 190,390 | 176,936 | |
Segment income (loss) before income taxes | 215,564 | 108,099 | 354,778 | 196,403 | |
Segment net income (loss) | 153,549 | 77,429 | 252,713 | 140,680 | |
Segment assets | 16,472,373 | 14,594,087 | 16,472,373 | 14,594,087 | |
Commercial Banking | |||||
Segment Reporting Information | |||||
Net interest income (loss) before provision for credit losses | 230,964 | 192,696 | 439,041 | 369,788 | |
Provision for (reversal of) credit losses | 10,602 | (17,358) | 15,498 | (13,109) | |
Noninterest income | 48,032 | 32,674 | 97,109 | 80,070 | |
Noninterest expense | 81,023 | 64,164 | 154,418 | 133,421 | |
Segment income (loss) before income taxes | 187,371 | 178,564 | 366,234 | 329,546 | |
Segment net income (loss) | 133,861 | 127,873 | 261,368 | 236,080 | |
Segment assets | 32,256,044 | 27,354,253 | 32,256,044 | 27,354,253 | |
Other | |||||
Segment Reporting Information | |||||
Net interest income (loss) before provision for credit losses | (42,385) | 10,002 | (48,063) | 36,706 | |
Provision for (reversal of) credit losses | 0 | 0 | 0 | 0 | |
Noninterest income | 2,028 | 11,425 | 7,495 | 13,453 | |
Noninterest expense | 21,542 | 37,709 | 41,502 | 70,243 | |
Segment income (loss) before income taxes | (61,899) | (16,282) | (82,070) | (20,084) | |
Segment net income (loss) | (29,081) | 19,440 | (18,100) | 52,976 | |
Segment assets | $ 13,665,866 | $ 17,906,536 | $ 13,665,866 | $ 17,906,536 |