Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $0.001 per share | |
Trading Symbol | EWBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 140,930,142 | |
Entity Central Index Key | 0001069157 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 495,976 | $ 534,980 |
Interest-bearing cash with banks | 4,065,202 | 2,946,804 |
Cash and cash equivalents | 4,561,178 | 3,481,784 |
Interest-bearing deposits with banks | 17,213 | 139,021 |
Assets purchased under resale agreements (“resale agreements”) | 785,000 | 792,192 |
Securities: | ||
Available-for-sale (“AFS”) debt securities, at fair value (amortized cost of $6,976,331 and $6,879,225) | 6,039,837 | 6,034,993 |
Held-to-maturity (“HTM”) debt securities, at amortized cost (fair value of $2,308,048 and $2,455,171) | 2,964,235 | 3,001,868 |
Loans held-for-sale | 4,762 | 25,644 |
Loans held-for-investment (net of allowance for loan losses of $655,523 and $595,645) | 50,251,661 | 47,606,785 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net | 901,559 | 763,256 |
Premises and equipment (net of accumulated depreciation of $155,043 and $148,126) | 87,888 | 89,191 |
Goodwill | 465,697 | 465,697 |
Operating lease right-of-use assets | 97,782 | 103,681 |
Other assets | 2,112,646 | 1,608,038 |
TOTAL | 68,289,458 | 64,112,150 |
Deposits: | ||
Noninterest-bearing | 16,169,072 | 21,051,090 |
Interest-bearing | 38,917,959 | 34,916,759 |
Total deposits | 55,087,031 | 55,967,849 |
Short-term borrowings | 4,500,000 | 0 |
Assets sold under repurchase agreements (“repurchase agreements”) | 0 | 300,000 |
Long-term debt and finance lease liabilities | 153,087 | 152,400 |
Operating lease liabilities | 107,695 | 111,931 |
Accrued expenses and other liabilities | 1,844,939 | 1,595,358 |
Total liabilities | 61,692,752 | 58,127,538 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 169,316,546 and 168,459,045 shares issued | 169 | 168 |
Additional paid-in capital | 1,969,239 | 1,936,389 |
Retained earnings | 6,294,751 | 5,582,546 |
Treasury stock, at cost 27,830,597 and 27,511,199 shares | (792,076) | (768,862) |
Accumulated other comprehensive loss (“AOCI”), net of tax | (875,377) | (765,629) |
Total stockholders’ equity | 6,596,706 | 5,984,612 |
TOTAL | $ 68,289,458 | $ 64,112,150 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
AFS debt securities, amortized cost | $ 6,976,331 | $ 6,879,225 |
HTM debt securities, fair value | 2,308,048 | 2,455,171 |
Allowance for loan losses | 655,523 | 595,645 |
Premises and equipment, accumulated depreciation | $ 155,043 | $ 148,126 |
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) | 169,316,546 | 168,459,045 |
Treasury stock, shares (in shares) | 27,830,597 | 27,511,199 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans receivable, including fees | $ 818,719 | $ 560,452 | $ 2,318,369 | $ 1,376,978 |
Debt securities | 69,778 | 51,092 | 204,679 | 139,935 |
Resale agreements | 4,460 | 6,769 | 12,932 | 23,705 |
Restricted equity securities | 1,079 | 843 | 3,054 | 2,274 |
Interest-bearing cash and deposits with banks | 67,751 | 9,080 | 164,393 | 17,127 |
Total interest and dividend income | 961,787 | 628,236 | 2,703,427 | 1,560,019 |
INTEREST EXPENSE | ||||
Deposits | 338,296 | 68,894 | 842,567 | 104,371 |
Federal funds purchased and other short-term borrowings | 49,575 | 1,177 | 107,432 | 1,427 |
Federal Home Loan Bank (“FHLB”) advances | 0 | 392 | 6,430 | 1,529 |
Repurchase agreements | 193 | 4,421 | 1,456 | 8,855 |
Long-term debt and finance lease liabilities | 2,910 | 1,543 | 8,122 | 3,463 |
Total interest expense | 390,974 | 76,427 | 966,007 | 119,645 |
Net interest income before provision for credit losses | 570,813 | 551,809 | 1,737,420 | 1,440,374 |
Provision for credit losses | 42,000 | 27,000 | 88,000 | 48,500 |
Net interest income after provision for credit losses | 528,813 | 524,809 | 1,649,420 | 1,391,874 |
NONINTEREST INCOME | ||||
Lending fees | 20,312 | 20,289 | 61,799 | 59,869 |
Deposit account fees | 22,622 | 23,636 | 66,610 | 66,323 |
Interest rate contracts and other derivative income | 11,208 | 8,761 | 21,145 | 29,695 |
Foreign exchange income | 12,334 | 10,083 | 38,245 | 34,143 |
Wealth management fees | 5,877 | 8,903 | 19,070 | 21,494 |
Net (losses) gains on sales of loans | (12) | 2,129 | (41) | 5,968 |
Net (losses) gains on AFS debt securities | 0 | 0 | (10,000) | 1,306 |
Other investment income (loss) | 1,751 | (580) | 7,675 | 5,910 |
Other income | 2,660 | 2,331 | 10,858 | 9,031 |
Total noninterest income | 76,752 | 75,552 | 215,361 | 233,739 |
NONINTEREST EXPENSE | ||||
Compensation and employee benefits | 123,153 | 127,580 | 377,744 | 357,213 |
Occupancy and equipment expense | 15,353 | 15,920 | 47,028 | 46,853 |
Deposit insurance premiums and regulatory assessments | 8,583 | 4,875 | 24,755 | 14,519 |
Deposit account expense | 11,585 | 6,707 | 31,753 | 17,071 |
Data processing | 3,645 | 3,725 | 10,205 | 10,876 |
Computer software expense | 8,116 | 6,889 | 22,955 | 20,755 |
Other operating expense | 31,885 | 30,403 | 102,092 | 86,243 |
Amortization of tax credit and other investments | 49,694 | 19,874 | 115,718 | 48,753 |
Noninterest expense | 252,014 | 215,973 | 732,250 | 602,283 |
INCOME BEFORE INCOME TAXES | 353,551 | 384,388 | 1,132,531 | 1,023,330 |
INCOME TAX EXPENSE | 65,813 | 89,049 | 210,323 | 232,010 |
NET INCOME | $ 287,738 | $ 295,339 | $ 922,208 | $ 791,320 |
EARNINGS PER SHARE (“EPS”) | ||||
BASIC (in dollars per share) | $ 2.03 | $ 2.10 | $ 6.52 | $ 5.59 |
DILUTED (in dollars per share) | $ 2.02 | $ 2.08 | $ 6.49 | $ 5.55 |
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING | ||||
BASIC (in shares) | 141,485 | 140,917 | 141,356 | 141,453 |
DILUTED (in shares) | 142,122 | 142,011 | 142,044 | 142,601 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 287,738 | $ 295,339 | $ 922,208 | $ 791,320 |
Other comprehensive loss, net of tax: | ||||
Net changes in unrealized losses on AFS debt securities | (72,691) | (161,445) | (64,990) | (523,593) |
Reclassification of unrealized losses on debt securities transferred from AFS to HTM | 0 | 0 | 0 | (112,991) |
Amortization of unrealized losses on debt securities transferred from AFS to HTM | 2,870 | 3,256 | 8,448 | 9,317 |
Net changes in unrealized losses on cash flow hedges | (27,334) | (33,269) | (52,608) | (64,372) |
Foreign currency translation adjustments | 3,710 | (7,926) | (598) | (18,012) |
Other comprehensive loss | (93,445) | (199,384) | (109,748) | (709,651) |
COMPREHENSIVE INCOME | $ 194,293 | $ 95,955 | $ 812,460 | $ 81,669 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | 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 | Retained Earnings Cumulative Effect, Period Of Adoption, Adjustment | Treasury Stock | Treasury Stock Various Stock Compensation Plans And Agreements | AOCI, Net of Tax | |
Beginning balance (in shares) at Dec. 31, 2021 | 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 | 791,320 | 791,320 | ||||||||||||
Other comprehensive loss | (709,651) | (709,651) | ||||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements (in shares) | 640,053 | |||||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 32,836 | 32,836 | ||||||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements (in shares) | (244,978) | (1,385,517) | ||||||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements | $ (18,983) | $ (99,990) | $ (18,983) | |||||||||||
Cash dividends on common stock | (172,082) | (172,082) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 140,917,512 | |||||||||||||
Ending balance at Sep. 30, 2022 | 5,660,668 | 1,926,561 | 5,302,897 | (768,758) | (800,032) | |||||||||
Beginning balance (in shares) at Jun. 30, 2022 | 140,917,389 | |||||||||||||
Beginning balance at Jun. 30, 2022 | 5,609,482 | 1,914,232 | 5,064,650 | (768,752) | (600,648) | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 295,339 | 295,339 | ||||||||||||
Other comprehensive loss | (199,384) | (199,384) | ||||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements (in shares) | 206 | |||||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 12,329 | 12,329 | ||||||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements (in shares) | (83) | |||||||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements | (6) | (6) | ||||||||||||
Cash dividends on common stock | (57,092) | (57,092) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 140,917,512 | |||||||||||||
Ending balance at Sep. 30, 2022 | 5,660,668 | 1,926,561 | 5,302,897 | (768,758) | (800,032) | |||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 140,947,846 | |||||||||||||
Beginning balance at Dec. 31, 2022 | 5,984,612 | 1,936,557 | 5,582,546 | (768,862) | (765,629) | |||||||||
Beginning balance (Accounting Standards Update 2022-02) at Dec. 31, 2022 | [1] | $ (4,262) | $ (4,262) | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 922,208 | 922,208 | ||||||||||||
Other comprehensive loss | (109,748) | (109,748) | ||||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements (in shares) | 857,501 | |||||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 32,851 | 32,851 | ||||||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements (in shares) | (319,398) | |||||||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements | (23,214) | (23,214) | ||||||||||||
Cash dividends on common stock | (205,741) | (205,741) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2023 | 141,485,949 | |||||||||||||
Ending balance at Sep. 30, 2023 | 6,596,706 | 1,969,408 | 6,294,751 | (792,076) | (875,377) | |||||||||
Beginning balance (in shares) at Jun. 30, 2023 | 141,483,668 | |||||||||||||
Beginning balance at Jun. 30, 2023 | 6,461,697 | 1,959,784 | 6,075,735 | (791,890) | (781,932) | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 287,738 | 287,738 | ||||||||||||
Other comprehensive loss | (93,445) | (93,445) | ||||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements (in shares) | 5,682 | |||||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 9,624 | 9,624 | ||||||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements (in shares) | (3,401) | |||||||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements | $ (186) | $ (186) | ||||||||||||
Cash dividends on common stock | (68,722) | (68,722) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2023 | 141,485,949 | |||||||||||||
Ending balance at Sep. 30, 2023 | $ 6,596,706 | $ 1,969,408 | $ 6,294,751 | $ (792,076) | $ (875,377) | |||||||||
[1] Represents the change in the Company’s allowance for loan losses as a result of the adoption of Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and the Vintage Disclosures on January 1, 2023. Refer to Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies in this Form 10-Q for additional information. |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.48 | $ 0.40 | $ 1.44 | $ 1.20 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 922,208 | $ 791,320 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 174,856 | 81,980 |
Amortization of premiums and accretion of discount, net | (15,740) | 26,336 |
Stock compensation costs | 29,934 | 29,338 |
Deferred income tax expense (benefit) | 1,083 | (6,107) |
Provision for credit losses | 88,000 | 48,500 |
Net losses (gains) on sales of loans | 41 | (5,968) |
Net losses (gains) on AFS debt securities | 10,000 | (1,306) |
Loans held-for-sale: | ||
Originations and purchases | 0 | (447) |
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale | 0 | 461 |
Proceeds from distributions received from equity method investees | 3,727 | 5,642 |
Net change in accrued interest receivable and other assets | (361,324) | 56,958 |
Net change in accrued expenses and other liabilities | 11,641 | 584,655 |
Other operating activities, net | (1,204) | 5,057 |
Total adjustments | (58,986) | 825,099 |
Net cash provided by operating activities | 863,222 | 1,616,419 |
Net change in: | ||
Investments in qualified affordable housing partnerships, tax credit and other investments | (154,309) | (91,710) |
Interest-bearing deposits with banks | 121,730 | 105,479 |
Resale agreements: | ||
Proceeds from paydowns and maturities | 219,917 | 1,719,076 |
Purchases | (212,725) | (258,559) |
AFS debt securities: | ||
Proceeds from sales | 0 | 129,181 |
Proceeds from repayments, maturities and redemptions | 877,377 | 711,950 |
Purchases | (1,011,326) | (769,007) |
HTM debt securities: | ||
Proceeds from repayments, maturities and redemptions | 49,649 | 60,140 |
Purchases | 0 | (50,000) |
Loans held-for-investment: | ||
Proceeds from sales of loans originally classified as held-for-investment | 528,056 | 453,315 |
Purchases | (433,228) | (599,660) |
Other changes in loans held-for-investment, net | (2,794,119) | (5,675,012) |
Proceeds from distributions received from equity method investees | 16,614 | 13,557 |
Other investing activities, net | (105,258) | 920 |
Net cash used in investing activities | (2,897,622) | (4,250,330) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in deposits | (840,367) | 623,025 |
Net change in short-term borrowings | 4,500,017 | 200,006 |
FHLB advances: | ||
Proceeds | 6,000,000 | 4,600,200 |
Repayment | (6,000,000) | (4,525,200) |
Repurchase agreements: | ||
Proceeds from repurchase agreements | 0 | 311,785 |
Repayment of repurchase agreements | (300,000) | 0 |
Repurchase agreements’ extinguishment cost | (3,872) | 0 |
Long-term debt and lease liabilities: | ||
Repayment of long-term debt and lease liabilities | (637) | (710) |
Common stock: | ||
Repurchase of common stocks pursuant to the Stock Repurchase Program | 0 | (99,990) |
Proceeds from issuance pursuant to various stock compensation plans and agreements | 1,563 | 1,444 |
Stock tendered for payment of withholding taxes | (23,214) | (18,983) |
Cash dividends paid | (206,848) | (171,991) |
Net cash provided by financing activities | 3,126,642 | 919,586 |
Effect of exchange rate changes on cash and cash equivalents | (12,848) | (35,257) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,079,394 | (1,749,582) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,481,784 | 3,912,935 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 4,561,178 | 2,163,353 |
Cash paid during the period for: | ||
Interest | 852,315 | 107,146 |
Income taxes, net | 284,347 | 233,082 |
Noncash investing and financing activities: | ||
Securities transferred from AFS to HTM debt securities | 0 | 3,010,003 |
Loans transferred from held-for-investment to held-for-sale | $ 507,215 | $ 463,769 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation East West Bancorp, Inc. is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The unaudited interim Consolidated Financial Statements in this Form 10-Q include the accounts of East West, East West Bank and East West’s subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of September 30, 2023, East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with FASB Accounting Standards Codification (“ASC”) Topic 810, Consolidation , the Trusts are not included on the Consolidated Financial Statements. The unaudited interim Consolidated Financial Statements are presented in accordance with 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 2022 Form 10-K. 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 periods, and the related disclosures. Although our estimates consider 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. Risk and Uncertainties The failures of Silicon Valley Bank, Signature Bank and First Republic Bank earlier in the year have resulted in significant disruption in the financial services industry, which has adversely impacted the volatility and market prices of the securities of financial institutions. In addition, these bank failures have caused concern and uncertainty regarding the liquidity of the banking sector as a whole and resulted in some regional bank customers choosing to maintain deposits with larger financial institutions. Further, competition for deposits has increased in recent periods, and the cost of funding has similarly increased, putting pressure on our net interest margin. These events have adversely impacted, and could continue to adversely affect, our business, results of operations, and financial condition, as well as the market price and volatility of our common stock. |
Current Accounting Developments
Current Accounting Developments and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Current Accounting Developments and Summary of Significant Accounting Policies | Current Accounting Developments and Summary of Significant Accounting Policies Accounting Pronouncements Adopted in 2023 Standard Required Date of Adoption Description Effect on Financial Statements ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and the Vintage Disclosures January 1, 2023 Early adoption is permitted ASU 2022-02 eliminates the • accounting guidance for troubled debt restructurings (“TDR”), and requires the Company to apply the loan refinancing and restructuring guidance to determine whether a modification made to a loan results in a new loan or a continuation of an existing loan; and • requirement to use a discounted cash flow method to measure receivables. The guidance also requires • enhanced disclosures for certain loan refinancings and restructurings by creditors when the borrower is experiencing financial difficulty; and • vintage disclosures of current period gross charge-offs (on a current year-to-date basis) by year of loan origination for financing receivables and net investments in leases within the scope of ASC 326-20: Financial Instruments — Credit Losses — Measured at Amortized Cost. The Company adopted ASU 2022-02 on January 1, 2023 on a prospective basis, except for the guidance related to the elimination of TDR recognition and measurement, which was adopted on a modified retrospective approach. This adoption increased the allowance for loan losses on TDRs as of December 31, 2022 by $6.0 million and decreased opening retained earnings on January 1, 2023 by $4.3 million after-tax. Disclosures as of September 30, 2023 are presented in accordance with this guidance while prior year amounts are reported in accordance with previously applicable GAAP. Recent Accounting Pronouncements Yet to be Adopted Standard Required Date of Adoption Description Effect on Financial Statements Standards Not Yet Adopted ASU 2023-01, Leases (Topic 842): Common Control Arrangements January 1, 2024 Early adoption is permitted ASU 2023-01 amends the accounting for leasehold improvements for leases between entities under common control arrangements. The guidance requires leasehold improvements associated with leases between companies under common control to be amortized by a lessee over the economic life of the leasehold improvements, regardless of the lease term or, until the lessee ceases to control the use of the underlying asset through a lease, at which time the remaining value of the leasehold improvement would be accounted for as a transfer between companies under common control through an adjustment to equity. The amendments in this guidance may be applied retrospectively to the beginning of the period in which the entity first applied Topic 842 or prospectively (1) to all new leasehold improvements recognized on or after the date the entity first applies the amendments, or (2) to all new and existing leasehold improvements recognized on or after the date the entity first applies the amendments. 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 2023-01 on January 1, 2024 on a prospective basis. ASU 2023-02, Investments — Equity Method and Joint Ventures (Topic 323) : Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method January 1, 2024 Early adoption is permitted ASU 2023-02 expands the scope of the proportional amortization method to equity tax credit investment programs if certain conditions are met. Previously, the proportional amortization method could only be used for investments in low-income housing tax credit structures. Under this guidance, companies are able to elect, on a tax credit program-by-tax credit program basis, to apply the proportional amortization method to all equity investments meeting the criteria in ASC 323-740-25-1. The amendments in this guidance must be applied on a modified retrospective or a retrospective basis. The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. ASU 2023-05, Business Combinations — Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement January 1, 2025 Early adoption is permitted ASU 2023-05 requires a joint venture to recognize and initially measure assets contributed to the joint venture in a formation transaction to be measured at fair value. Under this guidance, the initial formation of the joint venture would trigger a new basis of accounting and recognize contributed net assets generally at fair value as of the joint venture’s formation date. The excess of the fair value of the joint venture’s outstanding equity interests over the fair value of its identifiable assets and liabilities is recognized as goodwill, regardless of whether the joint venture meets the definition of a business in its stand-alone financial statements, and measure its contributed total net assets upon formation as the fair value of the joint venture as a whole, which would equal the fair value of 100% of the joint venture’s outstanding equity interests. The guidance also allows a joint venture to apply the measurement period guidance, which is largely consistent with the acquisition method for business combination in ASC 805-10. The guidance also introduces new disclosure requirements related to the nature and financial effect of the joint venture. The amendments in this guidance are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, joint ventures that were formed before January 1, 2025 may elect to apply the amendments retrospectively if sufficient information exists. 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 2023-05 on January 1, 2025. Significant Accounting Policies Update Loan Modifications — Certain loans are modified in the normal course of business for competitive reasons or in conjunction with the Company’s loss mitigation activities. Upon the adoption of ASU 2022-02, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made to borrowers experiencing financial difficulty. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as a continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. A modification made to borrowers experiencing financial difficulty may vary by program and by borrower-specific characteristics, and may include rate reductions, principal forgiveness, term extensions, and payment delays, and is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company applies the same credit loss methodology it uses for similar loans that were not modified. For the Company’s accounting policy related to the loan modifications’ allowance for loan losses, see Note 7 — Loans Receivable and Allowance for Credit Losses — Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q. |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Fair Value of Financial Instruments | Fair Value Measurement and Fair Value of Financial Instruments Under applicable accounting standards, the Company measures a portion of its assets and liabilities at fair value. These assets and liabilities are predominantly recorded at fair value on a recurring basis. From time to time, certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments only as required through the application of an accounting method such as lower of cost or fair value or write-down of individual assets. The Company categorizes its assets and liabilities into three levels based on the established fair value hierarchy and conducts a review of fair value hierarchy classifications on a quarterly basis. For more information regarding the fair value hierarchy and how the Company measures fair value, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Fair Value to the Consolidated Financial Statements in the Company’s 2022 Form 10-K. 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 within 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 newly issued 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 furnished by third-party pricing service providers for each security category. When a quoted price in an active market exists for the identical security, this price is used to determine the fair value and the AFS debt security is 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 September 30, 2023 and December 31, 2022. 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 — Interest rate contracts consist of interest rate swaps and options. 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 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 both September 30, 2023 and December 31, 2022, 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 the spot 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 — Credit contracts utilized by the Company are comprised of credit risk participation agreements (“RPAs”) entered into by the Company with institutional counterparties. The fair value of the 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. Due to the observable nature of all other significant inputs used in deriving the estimated fair value, credit contracts are classified as Level 2. Equity Contracts — Equity contracts consist of warrants to purchase common or preferred stock of public and private companies, and any liability-classified contingent issuable shares of the Company. The fair value of the warrants is 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 equity 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. In connection with the Company’s acquisition of a 49.99% equity interest in Rayliant Global Advisors Limited (“Rayliant”) during the third quarter of 2023, the Company granted performance restricted stock units (“PRSUs”) as part of its consideration. The vesting of these equity contracts is contingent on Rayliant meeting certain financial performance targets, and they are accounted for as a derivative liability. The fair value of these liability-classified equity contracts varies based on the operating revenue and operating EBITDA of Rayliant to be achieved during the future performance period. Due to the unobservable nature of the input assumptions, these equity contracts are classified as Level 3. For additional information on the equity contracts, refer to Note 6 — Derivatives and 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. Commodity Contracts — Commodity contracts consist of swaps and options referencing commodity products. 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 September 30, 2023 and December 31, 2022: Assets and Liabilities Measured at Fair Value on a Recurring Basis ($ in thousands) Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 904,101 $ — $ — $ 904,101 U.S. government agency and U.S. government-sponsored enterprise debt securities — 447,464 — 447,464 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 462,332 — 462,332 Residential mortgage-backed securities — 1,694,342 — 1,694,342 Municipal securities — 243,556 — 243,556 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 365,320 — 365,320 Residential mortgage-backed securities — 570,787 — 570,787 Corporate debt securities — 475,434 — 475,434 Foreign government bonds — 222,790 — 222,790 Asset-backed securities — 43,757 — 43,757 Collateralized loan obligations (“CLOs”) — 609,954 — 609,954 Total AFS debt securities $ 904,101 $ 5,135,736 $ — $ 6,039,837 Investments in qualified affordable housing partnerships, tax credit and other investments, net: Equity securities $ 19,447 $ 4,154 $ — $ 23,601 Total investments in qualified affordable housing partnerships, tax credit and other investments, net $ 19,447 $ 4,154 $ — $ 23,601 Derivative assets: Interest rate contracts $ — $ 624,087 $ — $ 624,087 Foreign exchange contracts — 100,377 — 100,377 Equity contracts — — 352 352 Commodity contracts — 137,500 — 137,500 Gross derivative assets $ — $ 861,964 $ 352 $ 862,316 Netting adjustments (1) $ — $ (530,331) $ — $ (530,331) Net derivative assets $ — $ 331,633 $ 352 $ 331,985 Derivative liabilities: Interest rate contracts $ — $ 712,302 $ — $ 712,302 Foreign exchange contracts — 77,099 — 77,099 Equity contracts (2) — — 15,119 15,119 Credit contracts — 12 — 12 Commodity contracts — 143,855 — 143,855 Gross derivative liabilities $ — $ 933,268 $ 15,119 $ 948,387 Netting adjustments (1) $ — $ (262,873) $ — $ (262,873) Net derivative liabilities $ — $ 670,395 $ 15,119 $ 685,514 Assets and Liabilities Measured at Fair Value on a Recurring Basis ($ in thousands) Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 606,203 $ — $ — $ 606,203 U.S. government agency and U.S. government-sponsored enterprise debt securities — 461,607 — 461,607 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 500,269 — 500,269 Residential mortgage-backed securities — 1,762,195 — 1,762,195 Municipal securities — 257,099 — 257,099 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 398,329 — 398,329 Residential mortgage-backed securities — 649,224 — 649,224 Corporate debt securities — 526,274 — 526,274 Foreign government bonds — 227,053 — 227,053 Asset-backed securities — 49,076 — 49,076 CLOs — 597,664 — 597,664 Total AFS debt securities $ 606,203 $ 5,428,790 $ — $ 6,034,993 Investments in qualified affordable housing partnerships, tax credit and other investments, net: Equity securities $ 19,777 $ 4,177 $ — $ 23,954 Total investments in qualified affordable housing partnerships, tax credit and other investments, net $ 19,777 $ 4,177 $ — $ 23,954 Derivative assets: Interest rate contracts $ — $ 440,283 $ — $ 440,283 Foreign exchange contracts — 53,109 — 53,109 Equity contracts — — 323 323 Commodity contracts — 261,613 — 261,613 Gross derivative assets $ — $ 755,005 $ 323 $ 755,328 Netting adjustments (1) $ — $ (614,783) $ — $ (614,783) Net derivative assets $ — $ 140,222 $ 323 $ 140,545 Derivative liabilities: Interest rate contracts $ — $ 584,516 $ — $ 584,516 Foreign exchange contracts — 44,117 — 44,117 Credit contracts — 23 — 23 Commodity contracts — 258,608 — 258,608 Gross derivative liabilities $ — $ 887,264 $ — $ 887,264 Netting adjustments (1) $ — $ (242,745) $ — $ (242,745) Net derivative liabilities $ — $ 644,519 $ — $ 644,519 (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. (2) Equity contracts classified as derivative liabilities consist of PRSUs granted as part of EWBC’s consideration in its investment in Rayliant. For the three and nine months ended September 30, 2023 and 2022, Level 3 fair value measurements that were measured on a recurring basis consisted of warrant equity contracts issued by private companies and liability-classified contingent issuable shares of the Company. The following table provides a reconciliation of the beginning and ending balances of these equity contracts for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Derivative assets: Equity contracts Beginning balance $ 263 $ 357 $ 323 $ 215 Total (losses) gains included in earnings (1) (3) (12) (63) 39 Issuances 92 — 92 91 Ending balance $ 352 $ 345 $ 352 $ 345 Derivative liabilities: Equity contracts (2) Beginning balance $ — $ — $ — $ — Issuances 15,119 — 15,119 — Ending balance $ 15,119 $ — $ 15,119 $ — (1) Includes unrealized (losses) gains recorded in Lending fees on the Consolidated Statement of Income. (2) Equity contracts classified as derivative liabilities consist of PRSUs granted as part of EWBC’s consideration in its investment in Rayliant. The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of September 30, 2023 and December 31, 2022. 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 Measurements (Level 3) Valuation Technique Unobservable Inputs Range of Inputs Weighted-Average of Inputs September 30, 2023 Derivative assets: Equity contracts $ 352 Black-Scholes option pricing model Equity volatility 41% — 51% 46 % (1) Liquidity discount 47% 47 % Derivative liabilities: Equity contracts (2) $ 15,119 Internal model Payout % designated based on operating revenue and operating EBITDA of investee 84% 84 % December 31, 2022 Derivative assets: Equity contracts $ 323 Black-Scholes option pricing model Equity volatility 42% — 60% 54 % (1) Liquidity discount 47% 47 % (1) The calculation for the weighted-average of inputs for the derivative asset equity contracts is based on the fair value of equity contracts as of both September 30, 2023 and December 31, 2022. (2) Equity contracts classified as derivative liabilities consist of PRSUs granted as part of EWBC’s consideration in its investment in Rayliant. 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, other real estate owned (“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 is 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 reviewing the investment entity’s quarterly financial statements and annual tax returns, the annual 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 the investment was made. The Company assesses its tax credit and other investments for possible other-than-temporary impairment 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; • the potential for tax credit recapture; 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 or 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. Loans Held-for-Sale — Loans held-for-investment subsequently transferred to held-for-sale are recorded at the lower of cost or fair value upon transfer. Loans held-for-sale may be measured at fair value on a nonrecurring basis when fair value is less than cost. Fair value is generally determined based on available market data for similar loans and therefore, are classified as Level 2. Other Nonperforming Assets — Other nonperforming assets are recorded at fair value upon 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 September 30, 2023 and December 31, 2022: Assets Measured at Fair Value on a Nonrecurring Basis ($ in thousands) Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: Commercial and industrial (“C&I”) $ — $ — $ 22,788 $ 22,788 Commercial real estate (“CRE”): Construction and land — — 11,141 11,141 Total commercial — — 33,929 33,929 Consumer: Residential mortgage: Home equity lines of credit (“HELOCs”) — — 1,204 1,204 Total consumer — — 1,204 1,204 Total loans held-for-investment $ — $ — $ 35,133 $ 35,133 Investments in qualified affordable housing partnerships, tax credit and other investments, net $ — $ — $ 1,038 $ 1,038 Assets Measured at Fair Value on a Nonrecurring Basis ($ in thousands) Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: C&I $ — $ — $ 40,011 $ 40,011 CRE: CRE — — 31,380 31,380 Total commercial — — 71,391 71,391 Consumer: Residential mortgage: HELOCs — — 1,223 1,223 Total consumer — — 1,223 1,223 Total loans held-for-investment $ — $ — $ 72,614 $ 72,614 The following table presents the increase (decrease) in the 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Loans held-for-investment: Commercial: C&I $ 366 $ (15,265) $ (4,437) $ (30,011) CRE: CRE — (118) — 2,212 Multifamily residential — (5,931) — (5,939) Construction and land (10,413) — (10,413) — Total commercial (10,047) (21,314) (14,850) (33,738) Consumer: Residential mortgage: HELOCs (41) 81 (41) 166 Total consumer (41) 81 (41) 166 Total loans held-for-investment $ (10,088) $ (21,233) $ (14,891) $ (33,572) Investments in qualified affordable housing partnerships, tax credit and other investments, net $ (790) $ — $ (1,577) $ — Other nonperforming assets $ — $ — $ — $ (6,861) 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 September 30, 2023 and December 31, 2022: ($ in thousands) Fair Value Measurements (Level 3) Valuation Techniques Unobservable Inputs Range of Inputs Weighted-Average of Inputs (1) September 30, 2023 Loans held-for-investment $ 13,955 Fair value of collateral Discount 15% — 75% 48 % (1) $ 6,134 Fair value of collateral Contract value NM NM $ 15,044 Fair value of property Selling cost 8% 8 % Investments in qualified affordable housing partnerships, tax credit and other investments, net $ 1,038 Individual analysis of each investment Expected future tax benefits and distributions NM NM December 31, 2022 Loans held-for-investment $ 23,322 Discounted cash flows Discount 4% — 6% 4 % (1) $ 17,912 Fair value of collateral Discount 15% — 75% 37 % (1) $ 31,380 Fair value of property Selling cost 8% 8 % NM — Not meaningful. (1) The calculation for the weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2023 and December 31, 2022. Disclosures about the Fair Value of Financial Instruments The following tables present the fair value estimates for financial instruments as of September 30, 2023 and December 31, 2022, 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 instruments are measured on an amortized cost basis on the Company’s Consolidated Balance Sheet. September 30, 2023 ($ in thousands) Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 4,561,178 $ 4,561,178 $ — $ — $ 4,561,178 Interest-bearing deposits with banks $ 17,213 $ — $ 17,213 $ — $ 17,213 Resale agreements $ 785,000 $ — $ 672,250 $ — $ 672,250 HTM debt securities $ 2,964,235 $ 470,618 $ 1,837,430 $ — $ 2,308,048 Restricted equity securities, at cost $ 79,522 $ — $ 79,522 $ — $ 79,522 Loans held-for-sale $ 4,762 $ — $ 4,762 $ — $ 4,762 Loans held-for-investment, net $ 50,251,661 $ — $ — $ 48,992,846 $ 48,992,846 Mortgage servicing rights $ 5,208 $ — $ — $ 9,821 $ 9,821 Accrued interest receivable $ 317,881 $ — $ 317,881 $ — $ 317,881 Financial liabilities: Demand, checking, savings and money market deposits $ 38,435,954 $ — $ 38,435,954 $ — $ 38,435,954 Time deposits $ 16,651,077 $ — $ 16,547,883 $ — $ 16,547,883 Short-term borrowings $ 4,500,000 $ — $ 4,500,000 $ — $ 4,500,000 Long-term debt $ 148,173 $ — $ 144,214 $ — $ 144,214 Accrued interest payable $ 150,890 $ — $ 150,890 $ — $ 150,890 December 31, 2022 ($ in thousands) Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 3,481,784 $ 3,481,784 $ — $ — $ 3,481,784 Interest-bearing deposits with banks $ 139,021 $ — $ 139,021 $ — $ 139,021 Resale agreements $ 792,192 $ — $ 693,656 $ — $ 693,656 HTM debt securities $ 3,001,868 $ 471,469 $ 1,983,702 $ — $ 2,455,171 Restricted equity securities, at cost $ 78,624 $ — $ 78,624 $ — $ 78,624 Loans held-for-sale $ 25,644 $ — $ 25,644 $ — $ 25,644 Loans held-for-investment, net $ 47,606,785 $ — $ — $ 46,670,690 $ 46,670,690 Mortgage servicing rights $ 6,235 $ — $ — $ 10,917 $ 10,917 Accrued interest receivable $ 263,430 $ — $ 263,430 $ — $ 263,430 Financial liabilities: Demand, checking, savings and money market deposits $ 42,637,316 $ — $ 42,637,316 $ — $ 42,637,316 Time deposits $ 13,330,533 $ — $ 13,228,777 $ — $ 13,228,777 Repurchase agreements $ 300,000 $ — $ 304,097 $ — $ 304,097 Long-term debt $ 147,950 $ — $ 143,483 $ — $ 143,483 Accrued interest payable $ 37,198 $ — $ 37,198 $ — $ 37,198 |
Assets Purchased under Resale A
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements | 9 Months Ended |
Sep. 30, 2023 | |
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 The Company’s resale agreements exposes it 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 an 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 September 30, 2023 and December 31, 2022. Securities Purchased under Resale Agreements — Total securities purchased under resale agreements were $785.0 million as of September 30, 2023, and $760.0 million as of December 31, 2022. The weighted-average yields were 2.73% and 2.41% for the three months ended September 30, 2023 and 2022, respectively; and 2.55% and 1.96% for the nine months ended September 30, 2023 and 2022, respectively. Loans Purchased under Resale Agreements — Loans purchased under resale agreements were $32.2 million as of December 31, 2022. During the first half of 2023, all of the loans purchased under resale agreements matured and th e Company had no loans purchased under resale agreements as of September 30, 2023. The weighted-average yield was 7.27% for the nine months ended September 30, 2023. In comparison, the weighted-average yields for the three and nine months ended September 30, 2022 were 3.87% and 2.10%, respectively. Assets Sold under Repurchase Agreements — Gross repurchase agreements were $300.0 million as of December 31, 2022. The Company extinguished $300.0 million of repurchase agreements during the first quarter of 2023. The Company recorded $3.9 million of extinguishment charges during the nine months ended September 30, 2023. In comparison, no extinguishment charges were recorded for the three and nine months ended September 30, 2022. The weighted-average interest rates were 5.51% and 2.81% for the three months ended September 30, 2023 and 2022, respectively; and 4.32% and 2.73% for the nine months ended September 30, 2023 and 2022, respectively. These weighted-average interest rates also reflect the impact of short-term repurchase agreements entered and repaid during the periods presented. Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that, in the event of default by the counterparty, provide the Company the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting Repurchase and Reverse Repurchase Agreements . Collateral received includes securities and loans that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Securities received or pledged as collateral in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and are usually delivered to and held by the third-party trustees. The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of September 30, 2023 and December 31, 2022: ($ in thousands) September 30, 2023 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Assets Collateral Received Resale agreements $ 785,000 $ — $ 785,000 $ (687,327) (1) $ 97,673 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Liabilities Collateral Pledged Repurchase agreements $ — $ — $ — $ — $ — ($ in thousands) December 31, 2022 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Net Collateral Received Resale agreements $ 792,192 $ — $ 792,192 $ (701,790) (1) $ 90,402 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 | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022: September 30, 2023 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities: U.S. Treasury securities $ 974,615 $ 48 $ (70,562) $ 904,101 U.S. government agency and U.S. government-sponsored enterprise debt securities 512,712 — (65,248) 447,464 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 545,086 — (82,754) 462,332 Residential mortgage-backed securities 1,983,284 15 (288,957) 1,694,342 Municipal securities 301,408 — (57,852) 243,556 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 418,451 — (53,131) 365,320 Residential mortgage-backed securities 687,674 — (116,887) 570,787 Corporate debt securities 653,501 — (178,067) 475,434 Foreign government bonds 237,531 75 (14,816) 222,790 Asset-backed securities 44,819 — (1,062) 43,757 CLOs 617,250 — (7,296) 609,954 Total AFS debt securities 6,976,331 138 (936,632) 6,039,837 HTM debt securities: U.S. Treasury securities 528,169 — (57,551) 470,618 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,001,298 — (249,007) 752,291 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 494,787 — (112,623) 382,164 Residential mortgage-backed securities 750,888 — (183,488) 567,400 Municipal securities 189,093 — (53,518) 135,575 Total HTM debt securities 2,964,235 — (656,187) 2,308,048 Total debt securities $ 9,940,566 $ 138 $ (1,592,819) $ 8,347,885 December 31, 2022 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities: U.S. Treasury securities $ 676,306 $ — $ (70,103) $ 606,203 U.S. government agency and U.S. government-sponsored enterprise debt securities 517,806 67 (56,266) 461,607 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 577,392 — (77,123) 500,269 Residential mortgage-backed securities 2,011,054 41 (248,900) 1,762,195 Municipal securities 303,884 3 (46,788) 257,099 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 447,512 213 (49,396) 398,329 Residential mortgage-backed securities 762,202 — (112,978) 649,224 Corporate debt securities 673,502 — (147,228) 526,274 Foreign government bonds 241,165 174 (14,286) 227,053 Asset-backed securities 51,152 — (2,076) 49,076 CLOs 617,250 — (19,586) 597,664 Total AFS debt securities 6,879,225 498 (844,730) 6,034,993 HTM debt securities: U.S. Treasury securities 524,081 — (52,612) 471,469 U.S. government agency and U.S. government-sponsored enterprise debt securities 998,972 — (209,560) 789,412 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 506,965 — (98,566) 408,399 Residential mortgage-backed securities 782,141 — (148,230) 633,911 Municipal securities 189,709 — (37,729) 151,980 Total HTM debt securities 3,001,868 — (546,697) 2,455,171 Total debt securities $ 9,881,093 $ 498 $ (1,391,427) $ 8,490,164 As of September 30, 2023 and December 31, 2022, the amortized cost of debt securities excluded accrued interest receivables of $42.6 million and $41.8 million, respectively, which are included in Other assets on the Consolidated Balance Sheet. For the Company’s accounting policy related to debt securities’ accrued interest receivable, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities and Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in the Company’s 2022 Form 10-K. Unrealized Losses of Available-for-Sale Debt Securities The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of September 30, 2023 and December 31, 2022. September 30, 2023 Less Than 12 Months 12 Months or More Total ($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities: U.S. Treasury securities $ — $ — $ 605,730 $ (70,562) $ 605,730 $ (70,562) U.S. government agency and U.S. government sponsored enterprise debt securities 199,139 (861) 248,325 (64,387) 447,464 (65,248) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 4,434 (96) 457,898 (82,658) 462,332 (82,754) Residential mortgage-backed securities 63,660 (517) 1,627,451 (288,440) 1,691,111 (288,957) Municipal securities 5,891 (288) 237,665 (57,564) 243,556 (57,852) Non-agency mortgage-backed securities: Commercial mortgage-backed securities — — 365,320 (53,131) 365,320 (53,131) Residential mortgage-backed securities — — 570,787 (116,887) 570,787 (116,887) Corporate debt securities — — 475,434 (178,067) 475,434 (178,067) Foreign government bonds 109,413 (249) 85,433 (14,567) 194,846 (14,816) Asset-backed securities — — 43,757 (1,062) 43,757 (1,062) CLOs — — 609,954 (7,296) 609,954 (7,296) Total AFS debt securities $ 382,537 $ (2,011) $ 5,327,754 $ (934,621) $ 5,710,291 $ (936,632) December 31, 2022 Less Than 12 Months 12 Months or More Total ($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities: U.S. Treasury securities $ 131,843 $ (8,761) $ 474,360 $ (61,342) $ 606,203 $ (70,103) U.S. government agency and U.S. government-sponsored enterprise debt securities 97,403 (6,902) 214,136 (49,364) 311,539 (56,266) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 252,144 (30,029) 248,125 (47,094) 500,269 (77,123) Residential mortgage-backed securities 307,536 (20,346) 1,448,658 (228,554) 1,756,194 (248,900) Municipal securities 95,655 (10,194) 159,439 (36,594) 255,094 (46,788) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 106,184 (3,309) 282,301 (46,087) 388,485 (49,396) Residential mortgage-backed securities 22,715 (1,546) 626,509 (111,432) 649,224 (112,978) Corporate debt securities 173,595 (17,907) 352,679 (129,321) 526,274 (147,228) Foreign government bonds 107,576 (429) 36,143 (13,857) 143,719 (14,286) Asset-backed securities 12,450 (524) 36,626 (1,552) 49,076 (2,076) CLOs 144,365 (4,735) 453,299 (14,851) 597,664 (19,586) Total AFS debt securities $ 1,451,466 $ (104,682) $ 4,332,275 $ (740,048) $ 5,783,741 $ (844,730) As of September 30, 2023, the Company had 567 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 269 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 66 corporate debt securities, and 99 non-agency mortgage-backed securities. In comparison, as of December 31, 2022, the Company had 559 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 263 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 100 non-agency mortgage-backed securities, and 68 corporate debt securities. Allowance for Credit Losses on Available-for-Sale Debt Securities The Company evaluates each AFS debt security where the fair value declines below amortized cost. 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 2022 Form 10-K. The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate movement and the 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 debt and mortgage-backed securities are issued, guaranteed, or otherwise supported by the U.S. government and have a zero credit loss assumption. The remaining securities that were in an unrealized loss position as of September 30, 2023 were mainly comprised of the following: • Non-agency mortgage-backed securities — The market value decline as of September 30, 2023, was primarily due to interest rate movement and spread widening. Since these securities are rated investment grade by nationally recognized statistical rating organizations (“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 September 30, 2023 was primarily due to interest rate movement and spread widening. A portion of the corporate debt securities is comprised of subordinated debt securities issued by U.S. banks. Despite the reduction of the market value of these securities after the banking sector disruption in the first nine months of 2023, these securities are nearly all rated investment grade by NRSROs or issued by well-capitalized financial institutions with strong profitability. The contractual payments from these corporate debt securities have been and are expected to be received on time. The Company will continue to monitor the market developments in the banking sector and the credit performance of these securities. As of both September 30, 2023 and December 31, 2022, the Company intended to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company would 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 provided against these securities as of both September 30, 2023 and December 31, 2022. In addition, there was no provision for credit losses recognized for the three and nine months ended September 30, 2023 and 2022. 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. For additional information on the Company’s credit loss methodology, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in the Company’s 2022 Form 10-K. The Company monitors the credit quality of the HTM debt securities using external credit ratings. As of September 30, 2023, 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 both September 30, 2023 and December 31, 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. Realized Gains and Losses The following table presents the gross realized gains from the sales and impairment write-off of AFS debt securities and the related tax expense (benefit) included in earnings for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Gross realized gains from sales $ — $ — $ — $ 1,306 Impairment write-off (1) $ — $ — $ 10,000 $ — Related tax expense (benefit) $ — $ — $ (2,956) $ 386 (1) During the first quarter of 2023, the Company fully wrote down a subordinated debt security and recorded the impairment loss as a component of noninterest income in the Company’s Consolidated Statement of Income. Interest Income The following table presents the composition of interest income on debt securities for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Taxable interest $ 63,877 $ 46,172 $ 189,065 $ 125,626 Nontaxable interest 5,901 4,920 15,614 14,309 Total interest income on debt securities $ 69,778 $ 51,092 $ 204,679 $ 139,935 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 September 30, 2023. 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 $ 298,323 $ 676,292 $ — $ — $ 974,615 Fair value 298,371 605,730 — — 904,101 Weighted-average yield (1) 5.44 % 1.20 % — % — % 2.50 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost 150,000 96,472 103,171 163,069 512,712 Fair value 149,616 91,343 82,252 124,253 447,464 Weighted-average yield (1) 4.98 % 3.08 % 1.39 % 2.18 % 3.01 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities Amortized cost — 42,260 144,846 2,341,264 2,528,370 Fair value — 39,718 128,933 1,988,023 2,156,674 Weighted-average yield (1) (2) — % 3.16 % 2.73 % 3.68 % 3.62 % Municipal securities Amortized cost 2,400 36,850 9,007 253,151 301,408 Fair value 2,383 33,794 7,596 199,783 243,556 Weighted-average yield (1) (2) 3.13 % 2.34 % 2.87 % 2.24 % 2.28 % Non-agency mortgage-backed securities Amortized cost 99,830 92,328 11,056 902,911 1,106,125 Fair value 98,420 89,370 10,793 737,524 936,107 Weighted-average yield (1) 6.27 % 4.16 % 0.80 % 2.58 % 3.02 % Corporate debt securities Amortized cost — — 349,501 304,000 653,501 Fair value — — 280,812 194,622 475,434 Weighted-average yield (1) — % — % 3.48 % 1.97 % 2.78 % Foreign government bonds Amortized cost 32,875 104,656 50,000 50,000 237,531 Fair value 32,810 104,546 49,609 35,825 222,790 Weighted-average yield (1) 3.02 % 2.28 % 5.71 % 1.50 % 2.94 % Asset-backed securities Amortized cost — — — 44,819 44,819 Fair value — — — 43,757 43,757 Weighted-average yield (1) — % — % — % 6.01 % 6.01 % CLOs Amortized cost — — 319,000 298,250 617,250 Fair value — — 314,219 295,735 609,954 Weighted-average yield (1) — % — % 6.71 % 6.76 % 6.73 % Total AFS debt securities Amortized cost $ 583,428 $ 1,048,858 $ 986,581 $ 4,357,464 $ 6,976,331 Fair value $ 581,600 $ 964,501 $ 874,214 $ 3,619,522 $ 6,039,837 Weighted-average yield (1) 5.32 % 1.86 % 4.27 % 3.40 % 3.45 % ($ 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 $ — $ 528,169 $ — $ — $ 528,169 Fair value — 470,618 — — 470,618 Weighted-average yield (1) — % 1.05 % — % — % 1.05 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost — — 328,870 672,428 1,001,298 Fair value — — 265,107 487,184 752,291 Weighted-average yield (1) — % — % 1.92 % 1.89 % 1.90 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities Amortized cost — — 94,992 1,150,683 1,245,675 Fair value — — 76,426 873,138 949,564 Weighted-average yield (1) (2) — % — % 1.56 % 1.68 % 1.67 % Municipal securities Amortized cost — — — 189,093 189,093 Fair value — — — 135,575 135,575 Weighted-average yield (1) (2) — % — % — % 1.99 % 1.99 % Total HTM debt securities Amortized cost $ — $ 528,169 $ 423,862 $ 2,012,204 $ 2,964,235 Fair value $ — $ 470,618 $ 341,533 $ 1,495,897 $ 2,308,048 Weighted-average yield (1) — % 1.05 % 1.84 % 1.78 % 1.66 % (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 September 30, 2023 and December 31, 2022, AFS and HTM debt securities with carrying valu es of $7.04 billion and $794.2 million, respectively, were pledged to secure borrowings, public deposits, repurchase agreements and for other purposes required or permitted by law. Restricted Equity Securities The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of September 30, 2023 and December 31, 2022: ($ in thousands) September 30, 2023 December 31, 2022 Federal Reserve Bank of San Francisco (“FRBSF”) stock $ 62,272 $ 61,374 FHLB stock 17,250 17,250 Total restricted equity securities $ 79,522 $ 78,624 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses derivative instruments to manage exposure to market risk, primarily interest rate and foreign currency risks, 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 2022 Form 10-K. The following table presents the notional amounts and fair values of the Company’s derivatives as of September 30, 2023 and December 31, 2022. Certain derivative contracts are cleared though central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in the derivative asset and liability fair values by $16.0 million and $65.7 million , respectively, as of September 30, 2023. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values by $167.2 million and $81.3 million, respectively, as of December 31, 2022. Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet. September 30, 2023 December 31, 2022 Fair Value Fair Value ($ in thousands) Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Cash flow hedges: Interest rate contracts $ 5,000,000 $ 1,288 $ 96,382 $ 3,450,000 $ 13,455 $ 19,687 Net investment hedges: Foreign exchange contracts 81,480 3,709 — 84,832 5,590 — Total derivatives designated as hedging instruments $ 5,081,480 $ 4,997 $ 96,382 $ 3,534,832 $ 19,045 $ 19,687 Derivatives not designated as hedging instruments: Interest rate contracts $ 17,456,102 $ 622,799 $ 615,920 $ 16,932,414 $ 426,828 $ 564,829 Commodity contracts (1) — 137,500 143,855 — 261,613 258,608 Foreign exchange contracts 5,205,007 96,668 77,099 2,982,891 47,519 44,117 Credit contracts (2) 143,703 — 12 140,950 — 23 Equity contracts — 352 (3) 15,119 (4) — 323 (3) — Total derivatives not designated as hedging instruments $ 22,804,812 $ 857,319 $ 852,005 $ 20,056,255 $ 736,283 $ 867,577 Gross derivative assets/liabilities $ 862,316 $ 948,387 $ 755,328 $ 887,264 Less: Master netting agreements (260,648) (260,648) (242,745) (242,745) Less: Cash collateral received (269,683) (2,225) (372,038) — Net derivative assets/liabilities $ 331,985 $ 685,514 $ 140,545 $ 644,519 (1) The notional amount of the Company’s commodity contracts totaled 20,672 thousand barrels of crude oil and 363,020 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of September 30, 2023. In comparison, the notional amount of the Company’s commodity contracts totaled 12,005 thousand barrels of crude oil and 247,704 thousand MMBTUs of natural gas as of December 31, 2022. (2) The notional amount of the credit contracts reflects the Company’s pro-rata share of the derivative instruments in RPAs. (3) The Company held warrant equity contracts in one public company and 13 private companies as of both September 30, 2023 and December 31, 2022. (4) Equity contracts classified as derivative liabilities consist of 349,138 PRSUs granted as part of EWBC’s consideration in its investment in Rayliant. Derivatives Designated as Hedging Instruments Cash Flow Hedges — The Company uses interest rate swaps to hedge the variability in interest received on certain floating-rate commercial loans, or paid on certain floating-rate borrowings due to changes in contractually specified interest rates. As of September 30, 2023, interest rate contracts in notional amounts of $5.00 billion were designated as cash flow hedges to convert certain variable-rate loans from floating-rate payments to fixed-rate payments. Gains and losses on the hedging derivative instruments are recognized in AOCI and reclassified to earnings in the same period the hedged cash flows impact earnings and within the same income statement line item as the hedged cash flows. Considering the interest rates, yield curve and notional amount as of September 30, 2023, the Company expects to reclassify an estimated $66.2 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI into earnings during the next 12 months. The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and nine months ended September 30, 2023 and 2022. The after-tax impact of cash flow hedges on AOCI is shown in Note 14 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-Q. Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Losses recognized in AOCI: Interest rate contracts $ (62,715) $ (48,325) $ (129,329) $ (88,771) Gains (losses) reclassified from AOCI into earnings: Interest expense (for cash flow hedges on borrowings) $ — $ 1,251 $ 696 $ 1,385 Interest and dividend income (for cash flow hedges on loans) (24,059) (2,870) (57,265) 216 Noninterest income — — 1,614 (1) — Total $ (24,059) $ (1,619) $ (54,955) $ 1,601 (1) Represents the amounts in AOCI reclassified into earnings as a result that the forecasted cash flows were no longer probable to occur. Net Investment Hedges — 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 were used to hedge against the risk of adverse changes in the foreign currency exchange rate of the Chinese Renminbi (“RMB”). The following table presents the pre-tax gains recognized in AOCI on net investment hedges for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Gains recognized in AOCI $ 63 $ 4,343 $ 2,886 $ 6,027 Derivatives Not Designated as Hedging Instruments Customer-Related Positions and Economic Hedge Derivatives — The Company enters into interest rate, commodity, and foreign exchange derivatives at the request of its customers and generally enters into offsetting derivative contracts with third-party financial institutions to mitigate the inherent market risk. The Company also utilizes foreign exchange contracts to mitigate the effect of currency fluctuations on certain foreign currency-denominated on-balance sheet assets and liabilities, primarily foreign currency denominated deposits that it offers to its customers. A majority of the foreign exchange contracts had original maturities of one year or less as of both September 30, 2023 and December 31, 2022. The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives entered into with customers and with third-party financial institutions as economic hedges to customers’ positions as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Fair Value Fair Value ($ in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Customer-related positions: Interest rate contracts: Swaps $ 6,890,450 $ 691 $ 584,962 $ 6,656,491 $ 1,438 $ 521,719 Written options 1,486,958 — 21,864 1,548,158 — 30,904 Collars and corridors 306,996 — 7,619 215,773 — 8,924 Subtotal 8,684,404 691 614,445 8,420,422 1,438 561,547 Foreign exchange contracts: Forwards and spot 62,237 11,376 24,484 993,588 17,009 18,090 Swaps 2,494,517 16,282 23,687 623,143 6,629 12,178 Other 142,000 5,630 — 121,631 2,070 245 Subtotal 2,698,754 33,288 48,171 1,738,362 25,708 30,513 Total $ 11,383,158 $ 33,979 $ 662,616 $ 10,158,784 $ 27,146 $ 592,060 Economic hedges: Interest rate contracts: Swaps $ 6,916,364 $ 592,177 $ 1,119 $ 6,683,828 $ 384,201 $ 2,047 Purchased options 1,517,648 22,285 — 1,580,275 32,233 — Written options 30,690 — 356 32,117 — 1,235 Collars and corridors 306,996 7,646 — 215,772 8,956 — Subtotal 8,771,698 622,108 1,475 8,511,992 425,390 3,282 Foreign exchange contracts: Forwards and spot 1,060,498 452 313 77,998 3,050 87 Swaps 1,303,755 62,928 22,985 1,044,900 18,516 11,447 Other 142,000 — 5,630 121,631 245 2,070 Subtotal 2,506,253 63,380 28,928 1,244,529 21,811 13,604 Total $ 11,277,951 $ 685,488 $ 30,403 $ 9,756,521 $ 447,201 $ 16,886 The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and economic hedges as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Fair Value Fair Value ($ and unit in thousands) Notional Units Assets Liabilities Notional Units Assets Liabilities Customer-related positions: Commodity contracts: Crude oil: Swaps 3,958 Barrels $ 27,543 $ 1,717 2,465 Barrels $ 39,955 $ 6,178 Collars 6,362 Barrels 24,552 119 3,011 Barrels 16,038 2,630 Written options — Barrels — — — Barrels 558 — Subtotal 10,320 Barrels 52,095 1,836 5,476 Barrels 56,551 8,808 Natural gas: Swaps 129,940 MMBTUs 32,428 55,387 92,590 MMBTUs 112,314 73,208 Collars 50,763 MMBTUs 865 11,535 32,072 MMBTUs 2,217 18,317 Written options 1,955 MMBTUs — 206 — MMBTUs — — Subtotal 182,658 MMBTUs 33,293 67,128 124,662 MMBTUs 114,531 91,525 Total $ 85,388 $ 68,964 $ 171,082 $ 100,333 Economic hedges: Commodity contracts: Crude oil: Swaps 3,990 Barrels $ 2,165 $ 24,403 2,587 Barrels $ 6,935 $ 36,060 Collars 6,362 Barrels — 18,781 3,942 Barrels 1,378 12,856 Purchased options — Barrels — — — Barrels — 516 Subtotal 10,352 Barrels 2,165 43,184 6,529 Barrels 8,313 49,432 Natural gas: Swaps 129,405 MMBTUs 42,804 31,289 91,900 MMBTUs 69,767 106,883 Collars 49,003 MMBTUs 6,937 418 31,142 MMBTUs 12,451 1,960 Purchased options 1,955 MMBTUs 206 — — MMBTUs — — Subtotal 180,363 MMBTUs 49,947 31,707 123,042 MMBTUs 82,218 108,843 Total $ 52,112 $ 74,891 $ 90,531 $ 158,275 Credit Contracts — The Company periodically enters into credit RPAs with institutional counterparties to manage the credit exposure of the interest rate contracts associated with syndication loans. Under the RPAs, a portion of the credit exposure is transferred from one party (the purchaser of credit protection) to another party (the seller of credit protection). The seller of credit protection is required to make payments to the purchaser of credit protection if the underlying borrower defaults on the related interest rate contract. The Company may enter into protection sold or protection purchased RPAs. Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and the institutional counterparties, which is a part of the Company’s normal credit review and monitoring process. All referenced entities of the protection sold RPAs were investment grade and the weighted-average remaining maturity was 2.5 years and 2.4 years as of September 30, 2023 and December 31, 2022, respectively. Assuming that the underlying borrowers referenced in the interest rate contracts defaulted, the Company would not have any current exposure in the protection sold RPAs as of both September 30, 2023 and December 31, 2022. As of September 30, 2023, the Company had outstanding protection purchased RPAs with notional amount of $25.0 million and minimal fair value. In comparison, the Company did not have any outstanding protection purchased RPAs as of December 31, 2022. Equity Contracts — As part of the loan origination process, the Company may obtain warrants to purchase the preferred and/or common stock of the borrowers’ companies, which are mainly in the technology and life sciences sectors. Warrants grant the Company the right to buy a certain class of the underlying company’s equity at a certain price before expiration. In connection with the Company’s investment in Rayliant during the third quarter of 2023, the Company granted PRSUs as part of its consideration. The vesting of these equity contracts is contingent on Rayliant meeting certain financial performance targets during the future performance period. For additional information on these equity contracts, refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments and Note 8 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities to the Consolidated Financial Statements in this Form 10-Q. The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three and nine months ended September 30, 2023 and 2022: Classification on Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Derivatives not designated as hedging instruments: Interest rate contracts Interest rate contracts and other derivative income $ 5,283 $ 4,870 $ 4,022 $ 18,439 Foreign exchange contracts Foreign exchange income 7,267 3,831 37,607 6,596 Credit contracts Interest rate contracts and other derivative income 4 50 11 114 Equity contracts - warrants Lending fees 89 (13) 29 175 Commodity contracts Interest rate contracts and other derivative income 27 (156) 193 139 Net gains $ 12,670 $ 8,582 $ 41,862 $ 25,463 Credit-Risk-Related Contingent Features — Certain of the Company’s over-the-counter derivative contracts contain early termination provisions that require the Company to settle any outstanding balances upon the occurrence of a specified credit-risk-related event. Such an event primarily relates to a downgrade of the credit rating of East West Bank to below investment grad e. As of September 30, 2023, the aggregate fair value amounts of all derivative instruments with credit-risk-related contingent features that were in a net liability position totaled $2.2 million , and $2.2 million collateral was posted to cover these positions. In comparison, a s of December 31, 2022, the aggregate fair value amounts of all derivative instruments with credit-risk-related contingent features that were in a net liability position totaled $2.6 million, of which $1.1 million of collateral was posted to cover these positions. If the credit rating of East West Bank had been downgraded to below investment grade, the Company would have been required to post minimal additional collateral as of both September 30, 2023 and December 31, 2022. Offsetting of Derivatives The following tables present the gross derivative fair values, the balance sheet netting adjustments, and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of over-collateralization are not shown: ($ in thousands) As of September 30, 2023 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 $ 862,316 $ (260,648) $ (269,683) $ 331,985 $ (280,043) $ 51,942 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 $ 948,387 $ (260,648) $ (2,225) $ 685,514 $ — $ 685,514 ($ in thousands) As of December 31, 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 $ 755,328 $ (242,745) $ (372,038) $ 140,545 $ (60,567) $ 79,978 Gross Amounts Recognized (2) Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 887,264 $ (242,745) $ — $ 644,519 $ (38,438) $ 606,081 (1) Includes $1.8 million and $2.1 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of September 30, 2023 and December 31, 2022, respectively. (2) Includes $16.2 million and $566 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of September 30, 2023 and December 31, 2022, respectively. (3) Gross cash collateral received under master netting arrangements or similar agreements was $275.7 million and $384.9 million as of September 30, 2023 and December 31, 2022, respectively. Of the gross cash collateral received, $269.7 million and $372.0 million were used to offset against derivative assets as of September 30, 2023 and December 31, 2022, respectively. (4) Gross cash collateral pledged under master netting arrangements or similar agreements was $3.1 million and $490 thousand as of September 30, 2023 and December 31, 2022, respectively. Of the gross cash collateral pledged, $2.2 million was used to offset against derivative liabilities as of September 30, 2023. In comparison, no cash collateral was used to offset against derivative liabilities as of December 31, 2022. (5) Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires the disclosure of such amounts. In addition to the amounts included in the tables above, the Company has balance sheet netting related to resale and repurchase agreements. Refer to Note 4 — Assets Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements in this Form 10-Q for additional information. Refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q for fair value measurement disclosures on derivatives. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable and Allowance for Credit Losses | The following table presents the composition of the Company’s loans held-for-investment outstanding as of September 30, 2023 and December 31, 2022: ($ in thousands) September 30, 2023 December 31, 2022 Commercial: C&I $ 15,864,042 $ 15,711,095 CRE: CRE 14,667,378 13,857,870 Multifamily residential 4,900,097 4,573,068 Construction and land 798,190 638,420 Total CRE 20,365,665 19,069,358 Total commercial 36,229,707 34,780,453 Consumer: Residential mortgage: Single-family residential 12,836,558 11,223,027 HELOCs 1,776,665 2,122,655 Total residential mortgage 14,613,223 13,345,682 Other consumer 64,254 76,295 Total consumer 14,677,477 13,421,977 Total loans held-for-investment (1) $ 50,907,184 $ 48,202,430 Allowance for loan losses (655,523) (595,645) Loans held-for-investment, net (1) $ 50,251,661 $ 47,606,785 (1) Includes $72.0 million and $70.4 million comprising unamortized deferred and unearned fees, net of premiums as of September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable on loans held-for-investment was $249.3 million and $208.4 million as of September 30, 2023 and December 31, 2022, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income reversed was insignificant for both the three and nine months ended September 30, 2023 and 2022. 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 — Loans Held-for-Investment to the Consolidated Financial Statements of the Company’s 2022 Form 10-K. The Company also has loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in the Company’s 2022 Form 10-K. The Company’s FRBSF and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $35.18 billion and $28.30 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of September 30, 2023 and December 31, 2022. 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 and current year-to-date gross write-offs by loan portfolio segments, internal risk ratings and vintage year as of the periods presented. The vintage year is the year of loan origination, renewal or major modification. Revolving loans that are converted to term loans presented in the tables below are excluded from term loans by vintage year columns. September 30, 2023 Term Loans by Origination Year ($ in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Commercial: C&I: Pass $ 1,858,749 $ 1,942,241 $ 1,470,818 $ 354,650 $ 259,342 $ 164,149 $ 9,254,852 $ 20,248 $ 15,325,049 Criticized (accrual) 88,542 110,918 91,272 45,069 25,603 23,640 104,802 — 489,846 Criticized (nonaccrual) 2,084 10,480 13 8,694 6,134 21,709 33 — 49,147 Total C&I 1,949,375 2,063,639 1,562,103 408,413 291,079 209,498 9,359,687 20,248 15,864,042 YTD gross write-offs (2) 350 28 161 15 6,606 1,684 — — 8,844 CRE: Pass 2,066,361 4,080,810 2,259,761 1,396,114 1,649,168 2,722,697 101,811 63,050 14,339,772 Criticized (accrual) 36,899 14,717 20,307 100,871 24,544 129,658 — — 326,996 Criticized (nonaccrual) — — — — 451 159 — — 610 Subtotal CRE 2,103,260 4,095,527 2,280,068 1,496,985 1,674,163 2,852,514 101,811 63,050 14,667,378 YTD gross write-offs (2) — — — — — 119 — — 119 Multifamily residential: Pass 478,895 1,495,620 814,391 620,117 503,791 893,282 7,658 1,288 4,815,042 Criticized (accrual) — — 53,555 — 696 26,124 — — 80,375 Criticized (nonaccrual) — — — — — 4,680 — — 4,680 Subtotal multifamily residential 478,895 1,495,620 867,946 620,117 504,487 924,086 7,658 1,288 4,900,097 Construction and land: Pass 151,175 354,415 222,474 37,732 812 5,475 14,966 — 787,049 Criticized (nonaccrual) — — — — — 11,141 — — 11,141 Subtotal construction and land 151,175 354,415 222,474 37,732 812 16,616 14,966 — 798,190 YTD gross write-offs — — — — — 10,413 — — 10,413 Total CRE 2,733,330 5,945,562 3,370,488 2,154,834 2,179,462 3,793,216 124,435 64,338 20,365,665 YTD gross write-offs (2) — — — — — 10,532 — — 10,532 Total commercial $ 4,682,705 $ 8,009,201 $ 4,932,591 $ 2,563,247 $ 2,470,541 $ 4,002,714 $ 9,484,122 $ 84,586 $ 36,229,707 YTD total commercial gross write-offs (2) $ 350 $ 28 $ 161 $ 15 $ 6,606 $ 12,216 $ — $ — $ 19,376 September 30, 2023 Term Loans by Origination Year ($ in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Consumer: Residential mortgage: Single-family residential: Pass (3) $ 2,400,448 $ 3,390,708 $ 2,321,209 $ 1,633,316 $ 1,010,859 $ 2,040,678 $ — $ — $ 12,797,218 Criticized (accrual) 844 1,983 844 1,499 964 9,060 — — 15,194 Criticized (nonaccrual) (3) 1,916 2,866 4,702 2,696 2,868 9,098 — — 24,146 Subtotal single-family residential mortgage 2,403,208 3,395,557 2,326,755 1,637,511 1,014,691 2,058,836 — — 12,836,558 HELOCs: Pass 182 1,828 5,736 4,318 1,963 13,821 1,611,319 118,088 1,757,255 Criticized (accrual) 741 401 62 — 353 1,649 2,039 963 6,208 Criticized (nonaccrual) — 517 — 1,359 68 5,396 1,751 4,111 13,202 Subtotal HELOCs 923 2,746 5,798 5,677 2,384 20,866 1,615,109 123,162 1,776,665 YTD gross write-offs (2) — — — — — 41 — 6 47 Total residential mortgage 2,404,131 3,398,303 2,332,553 1,643,188 1,017,075 2,079,702 1,615,109 123,162 14,613,223 YTD gross write-offs (2) — — — — — 41 — 6 47 Other consumer: Pass 3,555 18,138 135 — — 12,315 29,971 — 64,114 Criticized (accrual) 4 — — — — — — — 4 Criticized (nonaccrual) — — — — — — 136 — 136 Total other consumer 3,559 18,138 135 — — 12,315 30,107 — 64,254 Total consumer $ 2,407,690 $ 3,416,441 $ 2,332,688 $ 1,643,188 $ 1,017,075 $ 2,092,017 $ 1,645,216 $ 123,162 $ 14,677,477 YTD total consumer gross write-offs (2) $ — $ — $ — $ — $ — $ 41 $ — $ 6 $ 47 Total loans held-for-investment: Pass $ 6,959,365 $ 11,283,760 $ 7,094,524 $ 4,046,247 $ 3,425,935 $ 5,852,417 $ 11,020,577 $ 202,674 $ 49,885,499 Criticized (accrual) 127,030 128,019 166,040 147,439 52,160 190,131 106,841 963 918,623 Criticized (nonaccrual) 4,000 13,863 4,715 12,749 9,521 52,183 1,920 4,111 103,062 Total $ 7,090,395 $ 11,425,642 $ 7,265,279 $ 4,206,435 $ 3,487,616 $ 6,094,731 $ 11,129,338 $ 207,748 $ 50,907,184 YTD total loans held-for-investment gross write-offs (2) $ 350 $ 28 $ 161 $ 15 $ 6,606 $ 12,257 $ — $ 6 $ 19,423 December 31, 2022 Term Loans by Origination Year ($ in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Commercial: C&I: Pass $ 2,831,834 $ 2,053,215 $ 623,026 $ 392,013 $ 143,970 $ 97,605 $ 9,177,401 $ 20,548 $ 15,339,612 Criticized (accrual) 72,210 34,296 48,761 34,221 20,646 12,933 97,988 — 321,055 Criticized (nonaccrual) 18,722 4,797 10,733 243 5,618 10,315 — — 50,428 Total C&I 2,922,766 2,092,308 682,520 426,477 170,234 120,853 9,275,389 20,548 15,711,095 CRE: Pass 4,178,780 2,404,634 1,505,150 1,771,679 1,471,710 1,909,925 165,653 22,009 13,429,540 Criticized (accrual) 3,518 60,573 159,424 40,095 91,132 32,173 1,455 16,716 405,086 Criticized (nonaccrual) — 19,044 — — — 4,200 — — 23,244 Subtotal CRE 4,182,298 2,484,251 1,664,574 1,811,774 1,562,842 1,946,298 167,108 38,725 13,857,870 Multifamily residential: Pass 1,500,289 892,598 641,677 519,614 350,044 625,293 11,325 — 4,540,840 Criticized (accrual) — — — 707 4,276 27,076 — — 32,059 Criticized (nonaccrual) — — — — — 169 — — 169 Subtotal multifamily residential 1,500,289 892,598 641,677 520,321 354,320 652,538 11,325 — 4,573,068 Construction and land: Pass 288,394 276,839 31,804 3,104 2,805 231 9,073 — 612,250 Criticized (accrual) 4,504 — — — 21,666 — — — 26,170 Subtotal construction and land 292,898 276,839 31,804 3,104 24,471 231 9,073 — 638,420 Total CRE 5,975,485 3,653,688 2,338,055 2,335,199 1,941,633 2,599,067 187,506 38,725 19,069,358 Total commercial $ 8,898,251 $ 5,745,996 $ 3,020,575 $ 2,761,676 $ 2,111,867 $ 2,719,920 $ 9,462,895 $ 59,273 $ 34,780,453 Consumer: Residential mortgage: Single-family residential: Pass (3) $ 3,548,894 $ 2,453,717 $ 1,775,696 $ 1,101,965 $ 817,164 $ 1,500,359 $ — $ — $ 11,197,795 Criticized (accrual) — 1,275 785 1,463 4,352 3,935 — — 11,810 Criticized (nonaccrual) (3) 141 — 204 3,202 1,721 8,154 — — 13,422 Subtotal single-family residential mortgage 3,549,035 2,454,992 1,776,685 1,106,630 823,237 1,512,448 — — 11,223,027 HELOCs: Pass 520 3,583 7,336 3,203 525 8,960 1,958,692 127,401 2,110,220 Criticized (accrual) — 6 — — — — 4 1,079 1,089 Criticized (nonaccrual) — — 483 231 1,017 4,844 1,001 3,770 11,346 Subtotal HELOCs 520 3,589 7,819 3,434 1,542 13,804 1,959,697 132,250 2,122,655 Total residential mortgage 3,549,555 2,458,581 1,784,504 1,110,064 824,779 1,526,252 1,959,697 132,250 13,345,682 Other consumer: Pass 17,088 137 5,356 — — 15,808 37,804 — 76,193 Criticized (accrual) 3 — — — — — — — 3 Criticized (nonaccrual) — — — — — — 99 — 99 Total other consumer 17,091 137 5,356 — — 15,808 37,903 — 76,295 Total consumer $ 3,566,646 $ 2,458,718 $ 1,789,860 $ 1,110,064 $ 824,779 $ 1,542,060 $ 1,997,600 $ 132,250 $ 13,421,977 Total by Risk Rating: Pass $ 12,365,799 $ 8,084,723 $ 4,590,045 $ 3,791,578 $ 2,786,218 $ 4,158,181 $ 11,359,948 $ 169,958 $ 47,306,450 Criticized (accrual) 80,235 96,150 208,970 76,486 142,072 76,117 99,447 17,795 797,272 Criticized (nonaccrual) 18,863 23,841 11,420 3,676 8,356 27,682 1,100 3,770 98,708 Total $ 12,464,897 $ 8,204,714 $ 4,810,435 $ 3,871,740 $ 2,936,646 $ 4,261,980 $ 11,460,495 $ 191,523 $ 48,202,430 (1) $11.2 million and $24.6 million of total commercial loans, primarily comprised of CRE revolving loans, converted to term loans during the three and nine months ended September 30, 2023, respectively. In comparison, $0 and $26.4 million of total commercial loans, primarily comprised of CRE revolving loans, converted to term loans during the three and nine months ended September 30, 2022. $20.6 million and $27.7 million of total consumer loans, comprised of HELOCs, were converted to term loans during three and nine months ended September 30, 2023, respectively. In comparison, $375 thousand of total consumer loans, comprised of HELOCs, converted to term loans during both the three and nine months ended September 30, 2022. (2) Excludes gross write-offs associated with loans the Company sold or settled. (3) As of September 30, 2023 and December 31, 2022, $638 thousand and $818 thousand, respectively, of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating. Nonaccrual and Past Due Loans Loans that are 90 or more days past due are generally placed on nonaccrual status unless the loan is well-collateralized and in the process of collection. Loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis of loans held-for-investment as of September 30, 2023 and December 31, 2022: September 30, 2023 ($ in thousands) Current Accruing Accruing Total Total Total Commercial: C&I $ 15,781,468 $ 33,195 $ 232 $ 33,427 $ 49,147 $ 15,864,042 CRE: CRE 14,664,230 2,015 523 2,538 610 14,667,378 Multifamily residential 4,894,334 1,083 — 1,083 4,680 4,900,097 Construction and land 787,049 — — — 11,141 798,190 Total CRE 20,345,613 3,098 523 3,621 16,431 20,365,665 Total commercial 36,127,081 36,293 755 37,048 65,578 36,229,707 Consumer: Residential mortgage: Single-family residential 12,771,661 24,141 15,972 40,113 24,784 12,836,558 HELOCs 1,746,841 10,416 6,206 16,622 13,202 1,776,665 Total residential mortgage 14,518,502 34,557 22,178 56,735 37,986 14,613,223 Other consumer 63,992 109 17 126 136 64,254 Total consumer 14,582,494 34,666 22,195 56,861 38,122 14,677,477 Total $ 50,709,575 $ 70,959 $ 22,950 $ 93,909 $ 103,700 $ 50,907,184 December 31, 2022 ($ in thousands) Current Accruing Accruing Total Total Total Commercial: C&I $ 15,651,312 $ 6,482 $ 2,873 $ 9,355 $ 50,428 $ 15,711,095 CRE: CRE 13,820,441 14,185 — 14,185 23,244 13,857,870 Multifamily residential 4,571,899 678 322 1,000 169 4,573,068 Construction and land 638,420 — — — — 638,420 Total CRE 19,030,760 14,863 322 15,185 23,413 19,069,358 Total commercial 34,682,072 21,345 3,195 24,540 73,841 34,780,453 Consumer: Residential mortgage: Single-family residential 11,183,134 13,523 12,130 25,653 14,240 11,223,027 HELOCs 2,102,523 7,700 1,086 8,786 11,346 2,122,655 Total residential mortgage 13,285,657 21,223 13,216 34,439 25,586 13,345,682 Other consumer 73,004 109 3,083 3,192 99 76,295 Total consumer 13,358,661 21,332 16,299 37,631 25,685 13,421,977 Total $ 48,040,733 $ 42,677 $ 19,494 $ 62,171 $ 99,526 $ 48,202,430 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 September 30, 2023 and December 31, 2022. Nonaccrual loans may not have an allowance for credit losses if the loan balances are well-secured by the collateral value and there is no loss expectation. ($ in thousands) September 30, 2023 December 31, 2022 Commercial: C&I $ 29,336 $ 11,398 CRE — 22,944 Multifamily residential 4,235 — Construction and land 11,141 — Total commercial 44,712 34,342 Consumer: Single-family residential 6,681 2,998 HELOCs 8,483 7,245 Total consumer 15,164 10,243 Total nonaccrual loans with no related allowance for loan losses $ 59,876 $ 44,585 Foreclosed Assets The Company acquires assets from borrowers through loan restructurings, workouts, or 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 September 30, 2023, compared with $270 thousand as of December 31, 2022. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the CFPB guidelines. The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $9.9 million and $7.5 million as of September 30, 2023 and December 31, 2022, respectively. Loan Modifications to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, the Company adopted ASU 2022-02, which in part eliminated the accounting for TDR and enhanced disclosures requirements for loan modifications to borrowers experiencing financial difficulty. See Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies — Significant Accounting Policies Update — Loan Modifications to the Consolidated Financial Statements in this Form 10-Q for additional information. As part of the Company’s loss mitigation efforts, the Company may agree to modify the contractual terms of a loan to assist borrowers experiencing financial difficulty. The Company negotiates loan modifications on a case-by-case basis to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. The Company considers various factors to identify borrowers experiencing financial difficulty. The primary factor for consumer borrowers is delinquency status. For commercial loan borrowers, these factors include credit risk ratings, the probability of loan risk rating downgrades, and overall risk profile changes. The modification may include, but is not limited to, payment deferrals, interest rate reductions, term extensions, principal forgiveness, or a combination of such modifications. Commercial loan borrowers that require immaterial modifications such as insignificant interest rate changes, short-term extensions (90 days or less) from the original maturity date, or temporary waivers or extensions of financial covenants which would not constitute material credit actions, are generally not considered to be experiencing financial difficulty and are not included in the disclosure. Insignificant payment deferrals (three months or less in the last 12 months) are also not included in the disclosure. The following tables present the amortized cost of loans that were modified during the three and nine months ended September 30, 2023 by loan class and modification type: Three Months Ended September 30, 2023 Modification Type ($ in thousands) Term Extension Payment Delay Combination: Term Extension/ Payment Delay Combination: Rate Reduction/ Term Extension Combination: Rate Reduction/ Payment Delay Total Modification as a % of Loan Class Commercial: C&I $ 1,682 $ 11,603 $ — $ — $ — $ 13,285 0.08 % CRE: CRE 13,469 — — — — 13,469 0.07 % Total commercial 15,151 11,603 — — — 26,754 Consumer: Residential mortgage: Single-family residential: — 2,944 1,260 — — 4,204 0.03 % HELOCs — — 334 — 183 517 0.03 % Total consumer — 2,944 1,594 — 183 4,721 Total $ 15,151 $ 14,547 $ 1,594 $ — $ 183 $ 31,475 Nine Months Ended September 30, 2023 Modification Type ($ in thousands) Term Extension Payment Delay Combination: Term Extension/ Payment Delay Combination: Rate Reduction/ Term Extension Combination: Rate Reduction/ Payment Delay Total Modification as a % of Loan Class Commercial: C&I $ 44,120 $ 20,793 $ — $ — $ — $ 64,913 0.41 % CRE: CRE 13,979 — — 32,724 — 46,703 0.23 % Total commercial 58,099 20,793 — 32,724 — 111,616 Consumer: Residential mortgage: Single-family residential: — 7,276 1,809 — — 9,085 0.07 % HELOCs — 741 1,053 — 183 1,977 0.11 % Total consumer — 8,017 2,862 — 183 11,062 Total $ 58,099 $ 28,810 $ 2,862 $ 32,724 $ 183 $ 122,678 The following tables present the financial effects of the loan modifications for the three and nine months ended September 30, 2023 by loan class and modification type: Financial Effects of Loan Modifications Three Months Ended September 30, 2023 ($ in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Payment Delay Commercial: C&I $ 26 — % 3.00 1.54 CRE — — % 1.08 — Consumer: Single-family residential — — % 10.00 0.96 HELOCs — 0.50 % 16.68 0.71 Total $ 26 Financial Effects of Loan Modifications Nine months ended September 30, 2023 ($ in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Payment Delay Commercial: C&I $ 371 (1) — % (1) 1.41 1.15 CRE — 3.00 % 2.09 — Consumer: Single-family residential — — % 9.91 0.95 HELOCs — 0.50 % 15.36 0.52 Total $ 371 (1) Comprised of C&I loans modified during the nine months ended September 30, 2023 where the interest rate is waived in addition to principal forgiveness. No recorded investment was outstanding as of September 30, 2023. A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. There were no loans that received modifications which subsequently defaulted during the three and nine months ended September 30, 2023. The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that were modified as of September 30, 2023 since the adoption of ASU 2022-02 on January 1, 2023. Payment Performance as of September 30, 2023 ($ in thousands) Current 30 - 89 Days Past Due 90+ Days Past Due Total Commercial: C&I $ 58,481 $ — $ 6,432 $ 64,913 CRE: CRE 46,703 — — 46,703 Total commercial 105,184 — 6,432 111,616 Consumer: Residential mortgage: Single-family residential 7,430 1,190 465 9,085 HELOCs 1,236 741 — 1,977 Total consumer 8,666 1,931 465 11,062 Total $ 113,850 $ 1,931 $ 6,897 $ 122,678 As of September 30, 2023, commitments to lend additional funds to borrowers whose loans were modified were $5.8 million. Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02 Prior to the adoption of ASU 2022-02, the Company accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. ASU 2022-02 eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. The following table presents the additions to TDRs for the three and nine months ended September 30, 2022: Loans Modified as TDRs Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (1) Financial Impact (2) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 1 $ 499 $ 496 $ 98 4 $ 30,633 $ 17,802 $ 16,729 Total commercial 1 499 496 98 4 30,633 17,802 16,729 Consumer: Residential mortgage: HELOCs 1 62 69 2 1 62 69 2 Total residential mortgage 1 62 69 2 1 62 69 2 Total consumer 1 62 69 2 1 62 69 2 Total 2 $ 561 $ 565 $ 100 5 $ 30,695 $ 17,871 $ 16,731 (1) Includes subsequent payments after modification and reflects the balance as of September 30, 2022. (2) Includes charge-offs since the modification date. The following table presents the TDR post-modification outstanding balances by the primary modification type for the three and nine months ended September 30, 2022: Modification Type Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 ($ in thousands) Principal Other Total Principal (1) Other (2) Total Commercial: C&I $ 496 $ — $ 496 $ 9,609 $ 8,193 $ 17,802 Total commercial 496 — 496 9,609 8,193 17,802 Consumer: Residential mortgage: HELOCs 69 — 69 69 — 69 Total residential mortgage 69 — 69 69 — 69 Total consumer 69 — 69 69 — 69 Total $ 565 $ — $ 565 $ 9,678 $ 8,193 $ 17,871 (1) Includes principal deferments that modify the terms of the loan from principal and interest payments to interest payments only. (2) Includes increase in new commitments. After a loan is modified as a 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 table presents information on loans that entered into default during the three and nine months ended September 30, 2022 that were modified as TDRs during the 12 months preceding payment default: Loan Modified as TDRs that Subsequently Defaulted Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 ($ in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial: C&I — $ — 2 $ 13,901 CRE: Multifamily residential — — 1 1,008 Total CRE — — 1 1,008 Total commercial — — 3 14,909 Total — $ — 3 $ 14,909 As of December 31, 2022, the remaining lending commitments to borrowers whose terms of their outstanding owed balances were modified as TDRs was $16.2 million. Allowance for Credit Losses The Company has a current expected credit losses framework 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 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. 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 the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the allowance for loan losses. There were no changes to the reasonable and supportable forecast period, except to the C&I segment, and no changes to the reversion to the historical loss experience method for the three and nine months ended September 30, 2023 and 2022. The reasonable and supportable forecast period for the C&I segment changed from 11 quarters to eight quarters due to model redevelopment during the third quarter of 2023. 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 percentage, size at origination, delinquency status, sector and risk rating Unemployment rate, Gross Domestic Product (“GDP”), and Two-Ten treasury spread (1) CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, 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 Loss rate approach Immaterial (2) (1) Macroeconomic variables were updated due to model redevelopment. (2) Macroeconomic variables are included in the qualitative estimate. Quantitative Component — Allowance for Loan Losses for the Commercial Loan Portfolio The Company’s C&I lifetime loss rate model estimates the 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 eight quarters, thereafter, immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate. To generate estimates of expected loss at the loan level 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. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period. 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. Quantitative Component — 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. To estimate the life of a loan for the single-family residential and HELOC loan 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 and associates; — the effect of other external factors such as the regulatory and legal environments, or changes in technology; — actual and expected changes in international, national, regional, and local economic and business conditions in which th |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
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 15-year minimum compliance period. In addition to affordable housing projects, the Company 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 investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas. For the Company’s accounting policies on tax credit investments, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Securities and Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements in the Company’s 2022 Form 10-K. For a discussion on the Company’s impairment evaluation and monitoring process of tax credit investments, refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements in this Form 10-Q. The following table presents investments and unfunded commitments of the Company’s qualified affordable housing partnerships, tax credit, and other investments as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 ($ in thousands) Assets Liabilities - Unfunded Commitments (1) Assets Liabilities - Unfunded Commitments (1) Investments in qualified affordable housing partnerships, net $ 412,004 $ 252,552 $ 413,253 $ 266,654 Investments in tax credit and other investments, net 489,555 345,072 350,003 185,797 Total $ 901,559 $ 597,624 $ 763,256 $ 452,451 (1) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. Investments in tax credit and other investments, net presented in the table above include equity securities that are mutual funds with readily determinable fair values of $23.6 million and $24.0 million as of September 30, 2023 and December 31, 2022, respectively. The Company invests in these mutual funds for CRA purposes. The following table presents additional information related to the investments in qualified affordable housing partnerships, tax credit and other investments for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Investments in qualified housing partnerships, net: Tax credits and other tax benefits recognized $ 15,660 $ 13,180 $ 47,058 $ 38,764 Amortization expense included in income tax expense $ 11,587 $ 10,431 $ 34,759 $ 30,498 Investments in tax credit and other investments, net: Amortization of tax credit and other investments (1) $ 49,694 $ 19,874 $ 115,718 $ 48,753 Unrealized losses on equity securities with readily determinable values $ (674) $ (1,014) $ (682) $ (2,958) (1) Includes net impairment losses of $790 thousand for the three months ended September 30, 2023, and net impairment recoveries of $831 thousand for the nine months ended September 30, 2023. The activity for both periods was primarily related to historic tax credits. In comparison, there were no impairment recoveries or losses for three or nine months ended September 30, 2022. Variable Interest Entities The majority of both the investments in affordable housing partnerships and tax credit and other investments discussed above are variable interest entities where the Company is a limited partner in these partnerships, and an unrelated third party is typically the general partner or managing member who has control over the significant activities of these 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 investments 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. Other Investments The Company acquired a 49.99% equity interest in Rayliant during the third quarter of 2023. Rayliant is an asset manager specializing in asset allocation and investment in developed and emerging markets. This investment will expand the Bank’s wealth management business and provide its customers with additional access to institutional-quality investment management products and services. The investment in Rayliant is accounted for under the equity method of accounting and is included in Other assets on the Consolidated Balance Sheet. The Company paid $94.7 million in cash and granted PRSUs that are contingently issuable at vesting. The PRSUs vest on September 1, 2028 into a variable number of the Company’s shares of common stock, ranging from 20% to 200% of the 349,138 shares initially underlying such PRSUs, based on Rayliant’s achievement of certain financial performance targets during the future performance period. For additional information related to these equity contracts accounted for as derivative liability, refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments and Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q. The carrying value of the Company's investment in Rayliant was $110.9 million as of September 30, 2023, in which $100.7 million comprised of equity method goodwill. The Company also held equity securities without readily determinable fair values totaling $148.0 million and $36.5 million as of September 30, 2023 and December 31, 2022, respectively. These equity securities without readily determinable fair values are included in Other Assets |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Total goodwill was $465.7 million as of both September 30, 2023 and December 31, 2022. The Company’s goodwill impairment test is performed annually, as of December 31, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. Based on the Company’s annual goodwill impairment test as of December 31, 2022, 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 to the Consolidated Financial Statements in the Company’s 2022 Form 10-K. The Company performed an analysis of goodwill during the third quarter of 2023 that consisted of a qualitative assessment to determine if it is more likely than not that the carrying values of each reporting unit exceeded their estimated fair values. The results of this analysis indicated that no impairment of goodwill existed as of September 30, 2023. |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | Short-Term Borrowings and Long-Term Debt Short-Term Borrowings — Bank Term Funding Program As of September 30, 2023, the Company’s short-term borrowings consisted of funds from the Bank Term Funding Program (“BTFP”). In March 2023, the Federal Reserve announced the creation of the BTFP, which was designed to provide additional liquidity to U.S. depository institutions. The advances will be limited to the par value of eligible collateral pledged by the borrower, for a term of up to one year. U.S. federally insured depository institutions can request advances under the BTFP until at least March 11, 2024. The Company pledged eligible U.S. government agency and U.S. government-sponsored enterprise debt and mortgage-backed securities, and U.S. Treasury securities as collateral for the borrowings under the BTFP. As of September 30, 2023, the carrying amount of the Company’s pledged securities to the BTFP totaled $4.34 billion with a remaining borrowing capacity of $238.3 million. In comparison, there were no short-term borrowings as of December 31, 2022. The following table presents details of the Company’s short-term borrowings as of September 30, 2023. September 30, 2023 ($ in thousands) Interest Rate Maturity Date Amount Short-term borrowings 4.37% 3/19/2024 $ 4,500,000 Long-Term Debt — Junior Subordinated Debt Long-term debt totaled $148.2 million as of September 30, 2023 and $148.0 million as of December 31, 2022. During the third quarter of 2023, all junior subordinated debt that referenced London Interbank Offered Rate have transitioned to a Secured Overnight Financing Rate-based replacement rate plus the applicable stated margin. The junior subordinated debt had coupon interest rates ranging from 7.02% to 7.57% as of September 30, 2023 and 6.12% to 6.67% as of December 31, 2022. The junior subordinated debt had remaining maturities ranging between 11.1 years and 14.0 years as of September 30, 2023. For additional information on the junior subordinated debt, refer to Note 10 — Federal Home Loan Bank Advances and Long-Term Debt to the Consolidated Financial Statements in the Company’s 2022 Form 10-K. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments to Extend Credit — In the normal course of business, the Company provides loan commitments to customers on predetermined terms. These outstanding commitments to extend credit are not reflected in the accompanying Consolidated Financial Statements. While the Company does not anticipate losses from these transactions, commitments to extend credit are included in determining the appropriate level of allowance for unfunded credit commitments, and outstanding commercial letters of credit and standby letters of credit (“SBLCs”). The following table presents the Company’s credit-related commitments as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 ($ in thousands) Expire in One Year or Less Expire After One Year Expire After Three Years Expire After Five Years Total Total Loan commitments $ 4,650,619 $ 3,689,245 $ 1,037,254 $ 139,325 $ 9,516,443 $ 8,211,571 Commercial letters of credit and SBLCs 875,757 405,377 122,255 1,124,405 2,527,794 2,291,966 Total $ 5,526,376 $ 4,094,622 $ 1,159,509 $ 1,263,730 $ 12,044,237 $ 10,503,537 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 commitment fees. 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 September 30, 2023, total letters of credit of $2.53 billion consisted of SBLCs of $2.50 billion and commercial letters of credit of $32.7 million. In comparison, as of December 31, 2022, total letters of credit of $2.29 billion consisted of SBLCs of $2.27 billion and commercial letters of credit of $21.6 million. As of both September 30, 2023 and December 31, 2022, substantially all SBLCs were graded as “Pass” utilizing 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, personal 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 $33.6 million and $26.2 million as of September 30, 2023 and December 31, 2022, respectively. Guarantees — From time to time, the Company sells or securitizes single-family and multifamily residential loans with recourse in the ordinary course of business. The Company is obligated to repurchase up to the recourse component of the loans if the loans default. The following table presents the carrying amounts of loans sold or securitized with recourse and the maximum potential future payments as of September 30, 2023 and December 31, 2022: Maximum Potential Future Payments Carrying Value September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 ($ in thousands) Expire in One Year or Less Expire After One Year Expire After Three Years Expire After Five Years Total Total Total Total Single-family residential loans sold or securitized with recourse $ 28 $ 23 $ 28 $ 6,013 $ 6,092 $ 6,781 $ 6,092 $ 6,781 Multifamily residential loans sold or securitized with recourse — — 66 14,930 14,996 14,996 19,887 21,320 Total $ 28 $ 23 $ 94 $ 20,943 $ 21,088 $ 21,777 $ 25,979 $ 28,101 The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit commitments and totaled $35 thousand and $37 thousand as of September 30, 2023 and December 31, 2022, 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. |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Pursuant to the Company’s 2021 Stock Incentive Plan, as amended, the Company may issue stock, 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. The Company has granted RSUs as its primary incentive awards. There were no outstanding awards other than RSUs as of both September 30, 2023 and December 31, 2022. The following table presents a summary of the total share-based compensation expense and the related net tax (deficiencies) benefits associated with the Company’s various employee share-based compensation plans for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Stock compensation costs $ 9,495 $ 12,329 $ 29,934 $ 29,338 Related net tax (deficiencies) benefits for stock compensation plans $ (18) $ 1 $ 8,797 $ 5,269 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 in shares of the Company’s common stock. 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 percent 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. For information on 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 2022 Form 10-K. 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 nine months ended September 30, 2023. 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-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding, January 1, 2023 1,296,866 $ 60.77 332,510 $ 60.40 Granted 500,180 73.73 96,271 57.50 Vested (522,029) 40.79 (152,558) 39.39 Forfeited (53,379) 74.00 — — Outstanding, September 30, 2023 1,221,638 $ 74.04 276,223 $ 70.99 As of September 30, 2023, there were $32.2 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 1.9 years, and $17.9 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 1.9 years. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
Stockholders' Equity and Earnings Per Share | Stockholders’ Equity and Earnings Per Share The following table presents the basic and diluted EPS calculations for the three and nine months ended September 30, 2023 and 2022. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements in the Company’s 2022 Form 10-K. ($ and shares in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic: Net income $ 287,738 $ 295,339 $ 922,208 $ 791,320 Weighted-average number of shares outstanding 141,485 140,917 141,356 141,453 Basic EPS $ 2.03 $ 2.10 $ 6.52 $ 5.59 Diluted: Net income $ 287,738 $ 295,339 $ 922,208 $ 791,320 Weighted-average number of shares outstanding 141,485 140,917 141,356 141,453 Add: Dilutive impact of unvested RSUs 637 1,094 688 1,148 Diluted weighted-average number of shares outstanding 142,122 142,011 142,044 142,601 Diluted EPS $ 2.02 $ 2.08 $ 6.49 $ 5.55 For the three and nine months ended September 30, 2023, approximately 575 thousand and 350 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computations. In comparison, approximately 61 thousand and 58 thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations for the three and nine months ended September 30, 2022, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022: ($ in thousands) Debt Securities (1) Cash Flow Hedges Foreign Currency Translation Adjustments (2) Total Balance, July 1, 2022 $ (554,781) $ (30,846) $ (15,021) $ (600,648) Net unrealized losses arising during the period (161,445) (34,423) (7,926) (203,794) Amounts reclassified from AOCI 3,256 1,154 — 4,410 Changes, net of tax (158,189) (33,269) (7,926) (199,384) Balance, September 30, 2022 $ (712,970) $ (64,115) $ (22,947) $ (800,032) Balance, July 1, 2023 $ (681,536) $ (74,805) $ (25,591) $ (781,932) Net unrealized (losses) gains arising during the period (72,691) (44,347) 3,710 (113,328) Amounts reclassified from AOCI 2,870 17,013 — 19,883 Changes, net of tax (69,821) (27,334) 3,710 (93,445) Balance, September 30, 2023 $ (751,357) $ (102,139) $ (21,881) $ (875,377) ($ in thousands) Debt Securities (1) Cash Flow Hedges Foreign Currency Translation Adjustments (2) Total Balance, January 1, 2022 $ (85,703) $ 257 $ (4,935) $ (90,381) Net unrealized losses arising during the period (635,664) (63,232) (18,012) (716,908) Amounts reclassified from AOCI 8,397 (1,140) — 7,257 Changes, net of tax (627,267) (64,372) (18,012) (709,651) Balance, September 30, 2022 $ (712,970) $ (64,115) $ (22,947) $ (800,032) Balance, January 1, 2023 $ (694,815) $ (49,531) $ (21,283) $ (765,629) Net unrealized losses arising during the period (72,034) (91,468) (598) (164,100) Amounts reclassified from AOCI 15,492 38,860 — 54,352 Changes, net of tax (56,542) (52,608) (598) (109,748) Balance, September 30, 2023 $ (751,357) $ (102,139) $ (21,881) $ (875,377) (1) Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022. (2) 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 is RMB and USD, respectively. The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 2022 ($ in thousands) Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: Net unrealized losses on AFS debt securities arising during the period $ (103,183) $ 30,492 $ (72,691) $ (229,246) $ 67,801 $ (161,445) Reclassification adjustments: Amortization of unrealized losses on transferred debt securities (1) 4,075 (1,205) 2,870 4,623 (1,367) 3,256 Net change (99,108) 29,287 (69,821) (224,623) 66,434 (158,189) Cash flow hedges: Net unrealized losses arising during the period (62,715) 18,368 (44,347) (48,325) 13,902 (34,423) Net realized losses reclassified into net income (2) 24,059 (7,046) 17,013 1,619 (465) 1,154 Net change (38,656) 11,322 (27,334) (46,706) 13,437 (33,269) Foreign currency translation adjustments, net of hedges: Net unrealized gains (losses) arising during the period 3,728 (18) 3,710 (6,676) (1,250) (7,926) Net change 3,728 (18) 3,710 (6,676) (1,250) (7,926) Other comprehensive loss $ (134,036) $ 40,591 $ (93,445) $ (278,005) $ 78,621 $ (199,384) Nine Months Ended September 30, 2023 2022 ($ in thousands) Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: Net unrealized losses on AFS debt securities arising during the period $ (102,262) $ 30,228 $ (72,034) $ (742,132) $ 219,459 $ (522,673) Unrealized losses on debt securities transferred from AFS to HTM — — — (160,416) 47,425 (112,991) Reclassification adjustments: Net realized losses (gains) on AFS debt securities reclassified into net income (3) 10,000 (4) (2,956) 7,044 (1,306) 386 (920) Amortization of unrealized losses on transferred debt securities (1) 11,994 (3,546) 8,448 13,228 (3,911) 9,317 Net change (80,268) 23,726 (56,542) (890,626) 263,359 (627,267) Cash flow hedges: Net unrealized losses arising during the period (129,329) 37,861 (91,468) (88,771) 25,539 (63,232) Net realized losses (gains) reclassified into net income (2) 54,955 (16,095) 38,860 (1,601) 461 (1,140) Net change (74,374) 21,766 (52,608) (90,372) 26,000 (64,372) Foreign currency translation adjustments, net of hedges: Net unrealized gains (losses) arising during the period 247 (845) (598) (16,276) (1,736) (18,012) Net change 247 (845) (598) (16,276) (1,736) (18,012) Other comprehensive loss $ (154,395) $ 44,647 $ (109,748) $ (997,274) $ 287,623 $ (709,651) (1) Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio in 2022. (2) Pre-tax amounts related to cash flow hedges on variable rate loans and long-term borrowings, where applicable, were reported in Interest and dividend income and in Interest expense, respectively , on the Consolidated Statement of Income. (3) Pre-tax amounts were reported in Net (losses) gains on AFS debt securities on the Consolidated Statement of Income. (4) Represents the full write-off of an impaired subordinated debt security during the first quarter of 2023. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2023 | |
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. 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 financing, commercial business lending, working capital lines of credit, trade finance, letters of credit, 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 and the internal FTP process. The FTP 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 providing 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 nine months ended September 30, 2023 and 2022: ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Three Months Ended September 30, 2023 Net interest income before provision for credit losses $ 315,409 $ 242,345 $ 13,059 $ 570,813 Provision for credit losses 1,633 40,367 — 42,000 Noninterest income 25,132 43,672 7,948 76,752 Noninterest expense 106,626 87,556 57,832 252,014 Segment income (loss) before income taxes 232,282 158,094 (36,825) 353,551 Segment net income $ 164,051 $ 110,182 $ 13,505 $ 287,738 As of September 30, 2023 Segment assets $ 18,935,452 $ 34,438,787 $ 14,915,219 $ 68,289,458 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Three Months Ended September 30, 2022 Net interest income before provision for credit losses $ 326,411 $ 222,996 $ 2,402 $ 551,809 Provision for credit losses 8,974 18,026 — 27,000 Noninterest income (loss) 30,819 48,641 (3,908) 75,552 Noninterest expense 104,005 81,386 30,582 215,973 Segment income (loss) before income taxes 244,251 172,225 (32,088) 384,388 Segment net income (loss) $ 173,982 $ 122,869 $ (1,512) $ 295,339 As of September 30, 2022 Segment assets $ 17,002,000 $ 32,836,381 $ 12,737,680 $ 62,576,061 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Nine Months Ended September 30, 2023 Net interest income before provision for credit losses $ 927,173 $ 742,108 $ 68,139 $ 1,737,420 Provision for credit losses 22,169 65,831 — 88,000 Noninterest income 78,254 129,809 7,298 215,361 Noninterest expense 327,476 263,137 141,637 732,250 Segment income (loss) before income taxes 655,782 542,949 (66,200) 1,132,531 Segment net income $ 463,151 $ 383,669 $ 75,388 $ 922,208 As of September 30, 2023 Segment assets $ 18,935,452 $ 34,438,787 $ 14,915,219 $ 68,289,458 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Nine Months Ended September 30, 2022 Net interest income (loss) before provision for credit losses $ 823,998 $ 662,037 $ (45,661) $ 1,440,374 Provision for credit losses 14,976 33,524 — 48,500 Noninterest income 84,402 145,750 3,587 233,739 Noninterest expense 294,395 235,804 72,084 602,283 Segment income (loss) before income taxes 599,029 538,459 (114,158) 1,023,330 Segment net income (loss) $ 426,695 $ 384,237 $ (19,612) $ 791,320 As of September 30, 2022 Segment assets $ 17,002,000 $ 32,836,381 $ 12,737,680 $ 62,576,061 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 287,738 | $ 295,339 | $ 922,208 | $ 791,320 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Current Accounting Developmen_2
Current Accounting Developments and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | East West Bancorp, Inc. is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The unaudited interim Consolidated Financial Statements in this Form 10-Q include the accounts of East West, East West Bank and East West’s subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of September 30, 2023, East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with FASB Accounting Standards Codification (“ASC”) Topic 810, 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 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 2022 Form 10-K. |
Recent Accounting Pronouncements | Accounting Pronouncements Adopted in 2023 Standard Required Date of Adoption Description Effect on Financial Statements ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and the Vintage Disclosures January 1, 2023 Early adoption is permitted ASU 2022-02 eliminates the • accounting guidance for troubled debt restructurings (“TDR”), and requires the Company to apply the loan refinancing and restructuring guidance to determine whether a modification made to a loan results in a new loan or a continuation of an existing loan; and • requirement to use a discounted cash flow method to measure receivables. The guidance also requires • enhanced disclosures for certain loan refinancings and restructurings by creditors when the borrower is experiencing financial difficulty; and • vintage disclosures of current period gross charge-offs (on a current year-to-date basis) by year of loan origination for financing receivables and net investments in leases within the scope of ASC 326-20: Financial Instruments — Credit Losses — Measured at Amortized Cost. The Company adopted ASU 2022-02 on January 1, 2023 on a prospective basis, except for the guidance related to the elimination of TDR recognition and measurement, which was adopted on a modified retrospective approach. This adoption increased the allowance for loan losses on TDRs as of December 31, 2022 by $6.0 million and decreased opening retained earnings on January 1, 2023 by $4.3 million after-tax. Disclosures as of September 30, 2023 are presented in accordance with this guidance while prior year amounts are reported in accordance with previously applicable GAAP. Recent Accounting Pronouncements Yet to be Adopted Standard Required Date of Adoption Description Effect on Financial Statements Standards Not Yet Adopted ASU 2023-01, Leases (Topic 842): Common Control Arrangements January 1, 2024 Early adoption is permitted ASU 2023-01 amends the accounting for leasehold improvements for leases between entities under common control arrangements. The guidance requires leasehold improvements associated with leases between companies under common control to be amortized by a lessee over the economic life of the leasehold improvements, regardless of the lease term or, until the lessee ceases to control the use of the underlying asset through a lease, at which time the remaining value of the leasehold improvement would be accounted for as a transfer between companies under common control through an adjustment to equity. The amendments in this guidance may be applied retrospectively to the beginning of the period in which the entity first applied Topic 842 or prospectively (1) to all new leasehold improvements recognized on or after the date the entity first applies the amendments, or (2) to all new and existing leasehold improvements recognized on or after the date the entity first applies the amendments. 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 2023-01 on January 1, 2024 on a prospective basis. ASU 2023-02, Investments — Equity Method and Joint Ventures (Topic 323) : Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method January 1, 2024 Early adoption is permitted ASU 2023-02 expands the scope of the proportional amortization method to equity tax credit investment programs if certain conditions are met. Previously, the proportional amortization method could only be used for investments in low-income housing tax credit structures. Under this guidance, companies are able to elect, on a tax credit program-by-tax credit program basis, to apply the proportional amortization method to all equity investments meeting the criteria in ASC 323-740-25-1. The amendments in this guidance must be applied on a modified retrospective or a retrospective basis. The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. ASU 2023-05, Business Combinations — Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement January 1, 2025 Early adoption is permitted ASU 2023-05 requires a joint venture to recognize and initially measure assets contributed to the joint venture in a formation transaction to be measured at fair value. Under this guidance, the initial formation of the joint venture would trigger a new basis of accounting and recognize contributed net assets generally at fair value as of the joint venture’s formation date. The excess of the fair value of the joint venture’s outstanding equity interests over the fair value of its identifiable assets and liabilities is recognized as goodwill, regardless of whether the joint venture meets the definition of a business in its stand-alone financial statements, and measure its contributed total net assets upon formation as the fair value of the joint venture as a whole, which would equal the fair value of 100% of the joint venture’s outstanding equity interests. The guidance also allows a joint venture to apply the measurement period guidance, which is largely consistent with the acquisition method for business combination in ASC 805-10. The guidance also introduces new disclosure requirements related to the nature and financial effect of the joint venture. The amendments in this guidance are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, joint ventures that were formed before January 1, 2025 may elect to apply the amendments retrospectively if sufficient information exists. 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 2023-05 on January 1, 2025. |
Loan Modifications | Loan Modifications — Certain loans are modified in the normal course of business for competitive reasons or in conjunction with the Company’s loss mitigation activities. Upon the adoption of ASU 2022-02, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made to borrowers experiencing financial difficulty. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as a continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. A modification made to borrowers experiencing financial difficulty may vary by program and by borrower-specific characteristics, and may include rate reductions, principal forgiveness, term extensions, and payment delays, and is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company applies the same credit loss methodology it uses for similar loans that were not modified. |
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 |
Variable Interest Entities | Variable Interest EntitiesThe majority of both the investments in affordable housing partnerships and tax credit and other investments discussed above are variable interest entities where the Company is a limited partner in these partnerships, and an unrelated third party is typically the general partner or managing member who has control over the significant activities of these 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 investments 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 as 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, |
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.” 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. |
Allowance for Credit Losses | Allowance for Credit Losses The Company has a current expected credit losses framework 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 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. 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 the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the allowance for loan losses. There were no changes to the reasonable and supportable forecast period, except to the C&I segment, and no changes to the reversion to the historical loss experience method for the three and nine months ended September 30, 2023 and 2022. The reasonable and supportable forecast period for the C&I segment changed from 11 quarters to eight quarters due to model redevelopment during the third quarter of 2023. 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 percentage, size at origination, delinquency status, sector and risk rating Unemployment rate, Gross Domestic Product (“GDP”), and Two-Ten treasury spread (1) CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, 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 Loss rate approach Immaterial (2) (1) Macroeconomic variables were updated due to model redevelopment. (2) Macroeconomic variables are included in the qualitative estimate. Quantitative Component — Allowance for Loan Losses for the Commercial Loan Portfolio The Company’s C&I lifetime loss rate model estimates the 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 eight quarters, thereafter, immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate. To generate estimates of expected loss at the loan level 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. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period. 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. Quantitative Component — 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. To estimate the life of a loan for the single-family residential and HELOC loan 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 and associates; — the effect of other external factors such as the regulatory and legal environments, or 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 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; or (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 — |
Current Accounting Developmen_3
Current Accounting Developments and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements Adopted and Recent Accounting Pronouncements | Accounting Pronouncements Adopted in 2023 Standard Required Date of Adoption Description Effect on Financial Statements ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and the Vintage Disclosures January 1, 2023 Early adoption is permitted ASU 2022-02 eliminates the • accounting guidance for troubled debt restructurings (“TDR”), and requires the Company to apply the loan refinancing and restructuring guidance to determine whether a modification made to a loan results in a new loan or a continuation of an existing loan; and • requirement to use a discounted cash flow method to measure receivables. The guidance also requires • enhanced disclosures for certain loan refinancings and restructurings by creditors when the borrower is experiencing financial difficulty; and • vintage disclosures of current period gross charge-offs (on a current year-to-date basis) by year of loan origination for financing receivables and net investments in leases within the scope of ASC 326-20: Financial Instruments — Credit Losses — Measured at Amortized Cost. The Company adopted ASU 2022-02 on January 1, 2023 on a prospective basis, except for the guidance related to the elimination of TDR recognition and measurement, which was adopted on a modified retrospective approach. This adoption increased the allowance for loan losses on TDRs as of December 31, 2022 by $6.0 million and decreased opening retained earnings on January 1, 2023 by $4.3 million after-tax. Disclosures as of September 30, 2023 are presented in accordance with this guidance while prior year amounts are reported in accordance with previously applicable GAAP. Recent Accounting Pronouncements Yet to be Adopted Standard Required Date of Adoption Description Effect on Financial Statements Standards Not Yet Adopted ASU 2023-01, Leases (Topic 842): Common Control Arrangements January 1, 2024 Early adoption is permitted ASU 2023-01 amends the accounting for leasehold improvements for leases between entities under common control arrangements. The guidance requires leasehold improvements associated with leases between companies under common control to be amortized by a lessee over the economic life of the leasehold improvements, regardless of the lease term or, until the lessee ceases to control the use of the underlying asset through a lease, at which time the remaining value of the leasehold improvement would be accounted for as a transfer between companies under common control through an adjustment to equity. The amendments in this guidance may be applied retrospectively to the beginning of the period in which the entity first applied Topic 842 or prospectively (1) to all new leasehold improvements recognized on or after the date the entity first applies the amendments, or (2) to all new and existing leasehold improvements recognized on or after the date the entity first applies the amendments. 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 2023-01 on January 1, 2024 on a prospective basis. ASU 2023-02, Investments — Equity Method and Joint Ventures (Topic 323) : Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method January 1, 2024 Early adoption is permitted ASU 2023-02 expands the scope of the proportional amortization method to equity tax credit investment programs if certain conditions are met. Previously, the proportional amortization method could only be used for investments in low-income housing tax credit structures. Under this guidance, companies are able to elect, on a tax credit program-by-tax credit program basis, to apply the proportional amortization method to all equity investments meeting the criteria in ASC 323-740-25-1. The amendments in this guidance must be applied on a modified retrospective or a retrospective basis. The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. ASU 2023-05, Business Combinations — Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement January 1, 2025 Early adoption is permitted ASU 2023-05 requires a joint venture to recognize and initially measure assets contributed to the joint venture in a formation transaction to be measured at fair value. Under this guidance, the initial formation of the joint venture would trigger a new basis of accounting and recognize contributed net assets generally at fair value as of the joint venture’s formation date. The excess of the fair value of the joint venture’s outstanding equity interests over the fair value of its identifiable assets and liabilities is recognized as goodwill, regardless of whether the joint venture meets the definition of a business in its stand-alone financial statements, and measure its contributed total net assets upon formation as the fair value of the joint venture as a whole, which would equal the fair value of 100% of the joint venture’s outstanding equity interests. The guidance also allows a joint venture to apply the measurement period guidance, which is largely consistent with the acquisition method for business combination in ASC 805-10. The guidance also introduces new disclosure requirements related to the nature and financial effect of the joint venture. The amendments in this guidance are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, joint ventures that were formed before January 1, 2025 may elect to apply the amendments retrospectively if sufficient information exists. 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 2023-05 on January 1, 2025. |
Fair Value Measurement and Fa_2
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
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 September 30, 2023 and December 31, 2022: Assets and Liabilities Measured at Fair Value on a Recurring Basis ($ in thousands) Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 904,101 $ — $ — $ 904,101 U.S. government agency and U.S. government-sponsored enterprise debt securities — 447,464 — 447,464 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 462,332 — 462,332 Residential mortgage-backed securities — 1,694,342 — 1,694,342 Municipal securities — 243,556 — 243,556 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 365,320 — 365,320 Residential mortgage-backed securities — 570,787 — 570,787 Corporate debt securities — 475,434 — 475,434 Foreign government bonds — 222,790 — 222,790 Asset-backed securities — 43,757 — 43,757 Collateralized loan obligations (“CLOs”) — 609,954 — 609,954 Total AFS debt securities $ 904,101 $ 5,135,736 $ — $ 6,039,837 Investments in qualified affordable housing partnerships, tax credit and other investments, net: Equity securities $ 19,447 $ 4,154 $ — $ 23,601 Total investments in qualified affordable housing partnerships, tax credit and other investments, net $ 19,447 $ 4,154 $ — $ 23,601 Derivative assets: Interest rate contracts $ — $ 624,087 $ — $ 624,087 Foreign exchange contracts — 100,377 — 100,377 Equity contracts — — 352 352 Commodity contracts — 137,500 — 137,500 Gross derivative assets $ — $ 861,964 $ 352 $ 862,316 Netting adjustments (1) $ — $ (530,331) $ — $ (530,331) Net derivative assets $ — $ 331,633 $ 352 $ 331,985 Derivative liabilities: Interest rate contracts $ — $ 712,302 $ — $ 712,302 Foreign exchange contracts — 77,099 — 77,099 Equity contracts (2) — — 15,119 15,119 Credit contracts — 12 — 12 Commodity contracts — 143,855 — 143,855 Gross derivative liabilities $ — $ 933,268 $ 15,119 $ 948,387 Netting adjustments (1) $ — $ (262,873) $ — $ (262,873) Net derivative liabilities $ — $ 670,395 $ 15,119 $ 685,514 Assets and Liabilities Measured at Fair Value on a Recurring Basis ($ in thousands) Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 606,203 $ — $ — $ 606,203 U.S. government agency and U.S. government-sponsored enterprise debt securities — 461,607 — 461,607 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 500,269 — 500,269 Residential mortgage-backed securities — 1,762,195 — 1,762,195 Municipal securities — 257,099 — 257,099 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 398,329 — 398,329 Residential mortgage-backed securities — 649,224 — 649,224 Corporate debt securities — 526,274 — 526,274 Foreign government bonds — 227,053 — 227,053 Asset-backed securities — 49,076 — 49,076 CLOs — 597,664 — 597,664 Total AFS debt securities $ 606,203 $ 5,428,790 $ — $ 6,034,993 Investments in qualified affordable housing partnerships, tax credit and other investments, net: Equity securities $ 19,777 $ 4,177 $ — $ 23,954 Total investments in qualified affordable housing partnerships, tax credit and other investments, net $ 19,777 $ 4,177 $ — $ 23,954 Derivative assets: Interest rate contracts $ — $ 440,283 $ — $ 440,283 Foreign exchange contracts — 53,109 — 53,109 Equity contracts — — 323 323 Commodity contracts — 261,613 — 261,613 Gross derivative assets $ — $ 755,005 $ 323 $ 755,328 Netting adjustments (1) $ — $ (614,783) $ — $ (614,783) Net derivative assets $ — $ 140,222 $ 323 $ 140,545 Derivative liabilities: Interest rate contracts $ — $ 584,516 $ — $ 584,516 Foreign exchange contracts — 44,117 — 44,117 Credit contracts — 23 — 23 Commodity contracts — 258,608 — 258,608 Gross derivative liabilities $ — $ 887,264 $ — $ 887,264 Netting adjustments (1) $ — $ (242,745) $ — $ (242,745) Net derivative liabilities $ — $ 644,519 $ — $ 644,519 (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. (2) Equity contracts classified as derivative liabilities consist of PRSUs granted as part of EWBC’s consideration in its investment in Rayliant. |
Reconciliation Of The Beginning And Ending Balances Of Equity Contracts 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Derivative assets: Equity contracts Beginning balance $ 263 $ 357 $ 323 $ 215 Total (losses) gains included in earnings (1) (3) (12) (63) 39 Issuances 92 — 92 91 Ending balance $ 352 $ 345 $ 352 $ 345 Derivative liabilities: Equity contracts (2) Beginning balance $ — $ — $ — $ — Issuances 15,119 — 15,119 — Ending balance $ 15,119 $ — $ 15,119 $ — (1) Includes unrealized (losses) gains recorded in Lending fees on the Consolidated Statement of Income. (2) Equity contracts classified as derivative liabilities consist of PRSUs granted as part of EWBC’s consideration in its investment in Rayliant. |
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 September 30, 2023 and December 31, 2022. 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 Measurements (Level 3) Valuation Technique Unobservable Inputs Range of Inputs Weighted-Average of Inputs September 30, 2023 Derivative assets: Equity contracts $ 352 Black-Scholes option pricing model Equity volatility 41% — 51% 46 % (1) Liquidity discount 47% 47 % Derivative liabilities: Equity contracts (2) $ 15,119 Internal model Payout % designated based on operating revenue and operating EBITDA of investee 84% 84 % December 31, 2022 Derivative assets: Equity contracts $ 323 Black-Scholes option pricing model Equity volatility 42% — 60% 54 % (1) Liquidity discount 47% 47 % (1) The calculation for the weighted-average of inputs for the derivative asset equity contracts is based on the fair value of equity contracts as of both September 30, 2023 and December 31, 2022. (2) Equity contracts classified as derivative liabilities consist of PRSUs granted as part of EWBC’s consideration in its investment in Rayliant. 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 September 30, 2023 and December 31, 2022: ($ in thousands) Fair Value Measurements (Level 3) Valuation Techniques Unobservable Inputs Range of Inputs Weighted-Average of Inputs (1) September 30, 2023 Loans held-for-investment $ 13,955 Fair value of collateral Discount 15% — 75% 48 % (1) $ 6,134 Fair value of collateral Contract value NM NM $ 15,044 Fair value of property Selling cost 8% 8 % Investments in qualified affordable housing partnerships, tax credit and other investments, net $ 1,038 Individual analysis of each investment Expected future tax benefits and distributions NM NM December 31, 2022 Loans held-for-investment $ 23,322 Discounted cash flows Discount 4% — 6% 4 % (1) $ 17,912 Fair value of collateral Discount 15% — 75% 37 % (1) $ 31,380 Fair value of property Selling cost 8% 8 % NM — Not meaningful. (1) The calculation for the weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2023 and December 31, 2022. |
Schedule Of Carrying Amounts Of Assets That Were Still Held And Had Fair Value Adjustments 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 September 30, 2023 and December 31, 2022: Assets Measured at Fair Value on a Nonrecurring Basis ($ in thousands) Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: Commercial and industrial (“C&I”) $ — $ — $ 22,788 $ 22,788 Commercial real estate (“CRE”): Construction and land — — 11,141 11,141 Total commercial — — 33,929 33,929 Consumer: Residential mortgage: Home equity lines of credit (“HELOCs”) — — 1,204 1,204 Total consumer — — 1,204 1,204 Total loans held-for-investment $ — $ — $ 35,133 $ 35,133 Investments in qualified affordable housing partnerships, tax credit and other investments, net $ — $ — $ 1,038 $ 1,038 Assets Measured at Fair Value on a Nonrecurring Basis ($ in thousands) Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: C&I $ — $ — $ 40,011 $ 40,011 CRE: CRE — — 31,380 31,380 Total commercial — — 71,391 71,391 Consumer: Residential mortgage: HELOCs — — 1,223 1,223 Total consumer — — 1,223 1,223 Total loans held-for-investment $ — $ — $ 72,614 $ 72,614 |
Schedule Of Increase (Decrease) In Fair Value Of Assets For Which a Fair Value Adjustment Was Recognized, Nonrecurring Basis | The following table presents the increase (decrease) in the 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Loans held-for-investment: Commercial: C&I $ 366 $ (15,265) $ (4,437) $ (30,011) CRE: CRE — (118) — 2,212 Multifamily residential — (5,931) — (5,939) Construction and land (10,413) — (10,413) — Total commercial (10,047) (21,314) (14,850) (33,738) Consumer: Residential mortgage: HELOCs (41) 81 (41) 166 Total consumer (41) 81 (41) 166 Total loans held-for-investment $ (10,088) $ (21,233) $ (14,891) $ (33,572) Investments in qualified affordable housing partnerships, tax credit and other investments, net $ (790) $ — $ (1,577) $ — Other nonperforming assets $ — $ — $ — $ (6,861) |
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 September 30, 2023 and December 31, 2022, 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 instruments are measured on an amortized cost basis on the Company’s Consolidated Balance Sheet. September 30, 2023 ($ in thousands) Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 4,561,178 $ 4,561,178 $ — $ — $ 4,561,178 Interest-bearing deposits with banks $ 17,213 $ — $ 17,213 $ — $ 17,213 Resale agreements $ 785,000 $ — $ 672,250 $ — $ 672,250 HTM debt securities $ 2,964,235 $ 470,618 $ 1,837,430 $ — $ 2,308,048 Restricted equity securities, at cost $ 79,522 $ — $ 79,522 $ — $ 79,522 Loans held-for-sale $ 4,762 $ — $ 4,762 $ — $ 4,762 Loans held-for-investment, net $ 50,251,661 $ — $ — $ 48,992,846 $ 48,992,846 Mortgage servicing rights $ 5,208 $ — $ — $ 9,821 $ 9,821 Accrued interest receivable $ 317,881 $ — $ 317,881 $ — $ 317,881 Financial liabilities: Demand, checking, savings and money market deposits $ 38,435,954 $ — $ 38,435,954 $ — $ 38,435,954 Time deposits $ 16,651,077 $ — $ 16,547,883 $ — $ 16,547,883 Short-term borrowings $ 4,500,000 $ — $ 4,500,000 $ — $ 4,500,000 Long-term debt $ 148,173 $ — $ 144,214 $ — $ 144,214 Accrued interest payable $ 150,890 $ — $ 150,890 $ — $ 150,890 December 31, 2022 ($ in thousands) Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 3,481,784 $ 3,481,784 $ — $ — $ 3,481,784 Interest-bearing deposits with banks $ 139,021 $ — $ 139,021 $ — $ 139,021 Resale agreements $ 792,192 $ — $ 693,656 $ — $ 693,656 HTM debt securities $ 3,001,868 $ 471,469 $ 1,983,702 $ — $ 2,455,171 Restricted equity securities, at cost $ 78,624 $ — $ 78,624 $ — $ 78,624 Loans held-for-sale $ 25,644 $ — $ 25,644 $ — $ 25,644 Loans held-for-investment, net $ 47,606,785 $ — $ — $ 46,670,690 $ 46,670,690 Mortgage servicing rights $ 6,235 $ — $ — $ 10,917 $ 10,917 Accrued interest receivable $ 263,430 $ — $ 263,430 $ — $ 263,430 Financial liabilities: Demand, checking, savings and money market deposits $ 42,637,316 $ — $ 42,637,316 $ — $ 42,637,316 Time deposits $ 13,330,533 $ — $ 13,228,777 $ — $ 13,228,777 Repurchase agreements $ 300,000 $ — $ 304,097 $ — $ 304,097 Long-term debt $ 147,950 $ — $ 143,483 $ — $ 143,483 Accrued interest payable $ 37,198 $ — $ 37,198 $ — $ 37,198 |
Assets Purchased under Resale_2
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022: ($ in thousands) September 30, 2023 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Assets Collateral Received Resale agreements $ 785,000 $ — $ 785,000 $ (687,327) (1) $ 97,673 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Liabilities Collateral Pledged Repurchase agreements $ — $ — $ — $ — $ — ($ in thousands) December 31, 2022 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Net Collateral Received Resale agreements $ 792,192 $ — $ 792,192 $ (701,790) (1) $ 90,402 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) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt 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 September 30, 2023 and December 31, 2022: September 30, 2023 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities: U.S. Treasury securities $ 974,615 $ 48 $ (70,562) $ 904,101 U.S. government agency and U.S. government-sponsored enterprise debt securities 512,712 — (65,248) 447,464 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 545,086 — (82,754) 462,332 Residential mortgage-backed securities 1,983,284 15 (288,957) 1,694,342 Municipal securities 301,408 — (57,852) 243,556 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 418,451 — (53,131) 365,320 Residential mortgage-backed securities 687,674 — (116,887) 570,787 Corporate debt securities 653,501 — (178,067) 475,434 Foreign government bonds 237,531 75 (14,816) 222,790 Asset-backed securities 44,819 — (1,062) 43,757 CLOs 617,250 — (7,296) 609,954 Total AFS debt securities 6,976,331 138 (936,632) 6,039,837 HTM debt securities: U.S. Treasury securities 528,169 — (57,551) 470,618 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,001,298 — (249,007) 752,291 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 494,787 — (112,623) 382,164 Residential mortgage-backed securities 750,888 — (183,488) 567,400 Municipal securities 189,093 — (53,518) 135,575 Total HTM debt securities 2,964,235 — (656,187) 2,308,048 Total debt securities $ 9,940,566 $ 138 $ (1,592,819) $ 8,347,885 December 31, 2022 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities: U.S. Treasury securities $ 676,306 $ — $ (70,103) $ 606,203 U.S. government agency and U.S. government-sponsored enterprise debt securities 517,806 67 (56,266) 461,607 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 577,392 — (77,123) 500,269 Residential mortgage-backed securities 2,011,054 41 (248,900) 1,762,195 Municipal securities 303,884 3 (46,788) 257,099 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 447,512 213 (49,396) 398,329 Residential mortgage-backed securities 762,202 — (112,978) 649,224 Corporate debt securities 673,502 — (147,228) 526,274 Foreign government bonds 241,165 174 (14,286) 227,053 Asset-backed securities 51,152 — (2,076) 49,076 CLOs 617,250 — (19,586) 597,664 Total AFS debt securities 6,879,225 498 (844,730) 6,034,993 HTM debt securities: U.S. Treasury securities 524,081 — (52,612) 471,469 U.S. government agency and U.S. government-sponsored enterprise debt securities 998,972 — (209,560) 789,412 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 506,965 — (98,566) 408,399 Residential mortgage-backed securities 782,141 — (148,230) 633,911 Municipal securities 189,709 — (37,729) 151,980 Total HTM debt securities 3,001,868 — (546,697) 2,455,171 Total debt securities $ 9,881,093 $ 498 $ (1,391,427) $ 8,490,164 |
Debt 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 September 30, 2023 and December 31, 2022: September 30, 2023 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities: U.S. Treasury securities $ 974,615 $ 48 $ (70,562) $ 904,101 U.S. government agency and U.S. government-sponsored enterprise debt securities 512,712 — (65,248) 447,464 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 545,086 — (82,754) 462,332 Residential mortgage-backed securities 1,983,284 15 (288,957) 1,694,342 Municipal securities 301,408 — (57,852) 243,556 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 418,451 — (53,131) 365,320 Residential mortgage-backed securities 687,674 — (116,887) 570,787 Corporate debt securities 653,501 — (178,067) 475,434 Foreign government bonds 237,531 75 (14,816) 222,790 Asset-backed securities 44,819 — (1,062) 43,757 CLOs 617,250 — (7,296) 609,954 Total AFS debt securities 6,976,331 138 (936,632) 6,039,837 HTM debt securities: U.S. Treasury securities 528,169 — (57,551) 470,618 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,001,298 — (249,007) 752,291 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 494,787 — (112,623) 382,164 Residential mortgage-backed securities 750,888 — (183,488) 567,400 Municipal securities 189,093 — (53,518) 135,575 Total HTM debt securities 2,964,235 — (656,187) 2,308,048 Total debt securities $ 9,940,566 $ 138 $ (1,592,819) $ 8,347,885 December 31, 2022 ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities: U.S. Treasury securities $ 676,306 $ — $ (70,103) $ 606,203 U.S. government agency and U.S. government-sponsored enterprise debt securities 517,806 67 (56,266) 461,607 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 577,392 — (77,123) 500,269 Residential mortgage-backed securities 2,011,054 41 (248,900) 1,762,195 Municipal securities 303,884 3 (46,788) 257,099 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 447,512 213 (49,396) 398,329 Residential mortgage-backed securities 762,202 — (112,978) 649,224 Corporate debt securities 673,502 — (147,228) 526,274 Foreign government bonds 241,165 174 (14,286) 227,053 Asset-backed securities 51,152 — (2,076) 49,076 CLOs 617,250 — (19,586) 597,664 Total AFS debt securities 6,879,225 498 (844,730) 6,034,993 HTM debt securities: U.S. Treasury securities 524,081 — (52,612) 471,469 U.S. government agency and U.S. government-sponsored enterprise debt securities 998,972 — (209,560) 789,412 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 506,965 — (98,566) 408,399 Residential mortgage-backed securities 782,141 — (148,230) 633,911 Municipal securities 189,709 — (37,729) 151,980 Total HTM debt securities 3,001,868 — (546,697) 2,455,171 Total debt securities $ 9,881,093 $ 498 $ (1,391,427) $ 8,490,164 |
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 September 30, 2023 and December 31, 2022. September 30, 2023 Less Than 12 Months 12 Months or More Total ($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities: U.S. Treasury securities $ — $ — $ 605,730 $ (70,562) $ 605,730 $ (70,562) U.S. government agency and U.S. government sponsored enterprise debt securities 199,139 (861) 248,325 (64,387) 447,464 (65,248) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 4,434 (96) 457,898 (82,658) 462,332 (82,754) Residential mortgage-backed securities 63,660 (517) 1,627,451 (288,440) 1,691,111 (288,957) Municipal securities 5,891 (288) 237,665 (57,564) 243,556 (57,852) Non-agency mortgage-backed securities: Commercial mortgage-backed securities — — 365,320 (53,131) 365,320 (53,131) Residential mortgage-backed securities — — 570,787 (116,887) 570,787 (116,887) Corporate debt securities — — 475,434 (178,067) 475,434 (178,067) Foreign government bonds 109,413 (249) 85,433 (14,567) 194,846 (14,816) Asset-backed securities — — 43,757 (1,062) 43,757 (1,062) CLOs — — 609,954 (7,296) 609,954 (7,296) Total AFS debt securities $ 382,537 $ (2,011) $ 5,327,754 $ (934,621) $ 5,710,291 $ (936,632) December 31, 2022 Less Than 12 Months 12 Months or More Total ($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities: U.S. Treasury securities $ 131,843 $ (8,761) $ 474,360 $ (61,342) $ 606,203 $ (70,103) U.S. government agency and U.S. government-sponsored enterprise debt securities 97,403 (6,902) 214,136 (49,364) 311,539 (56,266) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 252,144 (30,029) 248,125 (47,094) 500,269 (77,123) Residential mortgage-backed securities 307,536 (20,346) 1,448,658 (228,554) 1,756,194 (248,900) Municipal securities 95,655 (10,194) 159,439 (36,594) 255,094 (46,788) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 106,184 (3,309) 282,301 (46,087) 388,485 (49,396) Residential mortgage-backed securities 22,715 (1,546) 626,509 (111,432) 649,224 (112,978) Corporate debt securities 173,595 (17,907) 352,679 (129,321) 526,274 (147,228) Foreign government bonds 107,576 (429) 36,143 (13,857) 143,719 (14,286) Asset-backed securities 12,450 (524) 36,626 (1,552) 49,076 (2,076) CLOs 144,365 (4,735) 453,299 (14,851) 597,664 (19,586) Total AFS debt securities $ 1,451,466 $ (104,682) $ 4,332,275 $ (740,048) $ 5,783,741 $ (844,730) |
Schedule Of The Gross Realized Gains And Tax Expense Related To The Sales And Impairment Write-Off Of AFS Debt Securities | The following table presents the gross realized gains from the sales and impairment write-off of AFS debt securities and the related tax expense (benefit) included in earnings for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Gross realized gains from sales $ — $ — $ — $ 1,306 Impairment write-off (1) $ — $ — $ 10,000 $ — Related tax expense (benefit) $ — $ — $ (2,956) $ 386 |
Schedule of Composition of Interest Income on Debt Securities | The following table presents the composition of interest income on debt securities for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Taxable interest $ 63,877 $ 46,172 $ 189,065 $ 125,626 Nontaxable interest 5,901 4,920 15,614 14,309 Total interest income on debt securities $ 69,778 $ 51,092 $ 204,679 $ 139,935 |
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 September 30, 2023. 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 $ 298,323 $ 676,292 $ — $ — $ 974,615 Fair value 298,371 605,730 — — 904,101 Weighted-average yield (1) 5.44 % 1.20 % — % — % 2.50 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost 150,000 96,472 103,171 163,069 512,712 Fair value 149,616 91,343 82,252 124,253 447,464 Weighted-average yield (1) 4.98 % 3.08 % 1.39 % 2.18 % 3.01 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities Amortized cost — 42,260 144,846 2,341,264 2,528,370 Fair value — 39,718 128,933 1,988,023 2,156,674 Weighted-average yield (1) (2) — % 3.16 % 2.73 % 3.68 % 3.62 % Municipal securities Amortized cost 2,400 36,850 9,007 253,151 301,408 Fair value 2,383 33,794 7,596 199,783 243,556 Weighted-average yield (1) (2) 3.13 % 2.34 % 2.87 % 2.24 % 2.28 % Non-agency mortgage-backed securities Amortized cost 99,830 92,328 11,056 902,911 1,106,125 Fair value 98,420 89,370 10,793 737,524 936,107 Weighted-average yield (1) 6.27 % 4.16 % 0.80 % 2.58 % 3.02 % Corporate debt securities Amortized cost — — 349,501 304,000 653,501 Fair value — — 280,812 194,622 475,434 Weighted-average yield (1) — % — % 3.48 % 1.97 % 2.78 % Foreign government bonds Amortized cost 32,875 104,656 50,000 50,000 237,531 Fair value 32,810 104,546 49,609 35,825 222,790 Weighted-average yield (1) 3.02 % 2.28 % 5.71 % 1.50 % 2.94 % Asset-backed securities Amortized cost — — — 44,819 44,819 Fair value — — — 43,757 43,757 Weighted-average yield (1) — % — % — % 6.01 % 6.01 % CLOs Amortized cost — — 319,000 298,250 617,250 Fair value — — 314,219 295,735 609,954 Weighted-average yield (1) — % — % 6.71 % 6.76 % 6.73 % Total AFS debt securities Amortized cost $ 583,428 $ 1,048,858 $ 986,581 $ 4,357,464 $ 6,976,331 Fair value $ 581,600 $ 964,501 $ 874,214 $ 3,619,522 $ 6,039,837 Weighted-average yield (1) 5.32 % 1.86 % 4.27 % 3.40 % 3.45 % ($ 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 $ — $ 528,169 $ — $ — $ 528,169 Fair value — 470,618 — — 470,618 Weighted-average yield (1) — % 1.05 % — % — % 1.05 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost — — 328,870 672,428 1,001,298 Fair value — — 265,107 487,184 752,291 Weighted-average yield (1) — % — % 1.92 % 1.89 % 1.90 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities Amortized cost — — 94,992 1,150,683 1,245,675 Fair value — — 76,426 873,138 949,564 Weighted-average yield (1) (2) — % — % 1.56 % 1.68 % 1.67 % Municipal securities Amortized cost — — — 189,093 189,093 Fair value — — — 135,575 135,575 Weighted-average yield (1) (2) — % — % — % 1.99 % 1.99 % Total HTM debt securities Amortized cost $ — $ 528,169 $ 423,862 $ 2,012,204 $ 2,964,235 Fair value $ — $ 470,618 $ 341,533 $ 1,495,897 $ 2,308,048 Weighted-average yield (1) — % 1.05 % 1.84 % 1.78 % 1.66 % (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 September 30, 2023 and December 31, 2022: ($ in thousands) September 30, 2023 December 31, 2022 Federal Reserve Bank of San Francisco (“FRBSF”) stock $ 62,272 $ 61,374 FHLB stock 17,250 17,250 Total restricted equity securities $ 79,522 $ 78,624 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Notional And Gross Fair Values Of Derivatives | The following table presents the notional amounts and fair values of the Company’s derivatives as of September 30, 2023 and December 31, 2022. Certain derivative contracts are cleared though central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in the derivative asset and liability fair values by $16.0 million and $65.7 million , respectively, as of September 30, 2023. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values by $167.2 million and $81.3 million, respectively, as of December 31, 2022. Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet. September 30, 2023 December 31, 2022 Fair Value Fair Value ($ in thousands) Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Cash flow hedges: Interest rate contracts $ 5,000,000 $ 1,288 $ 96,382 $ 3,450,000 $ 13,455 $ 19,687 Net investment hedges: Foreign exchange contracts 81,480 3,709 — 84,832 5,590 — Total derivatives designated as hedging instruments $ 5,081,480 $ 4,997 $ 96,382 $ 3,534,832 $ 19,045 $ 19,687 Derivatives not designated as hedging instruments: Interest rate contracts $ 17,456,102 $ 622,799 $ 615,920 $ 16,932,414 $ 426,828 $ 564,829 Commodity contracts (1) — 137,500 143,855 — 261,613 258,608 Foreign exchange contracts 5,205,007 96,668 77,099 2,982,891 47,519 44,117 Credit contracts (2) 143,703 — 12 140,950 — 23 Equity contracts — 352 (3) 15,119 (4) — 323 (3) — Total derivatives not designated as hedging instruments $ 22,804,812 $ 857,319 $ 852,005 $ 20,056,255 $ 736,283 $ 867,577 Gross derivative assets/liabilities $ 862,316 $ 948,387 $ 755,328 $ 887,264 Less: Master netting agreements (260,648) (260,648) (242,745) (242,745) Less: Cash collateral received (269,683) (2,225) (372,038) — Net derivative assets/liabilities $ 331,985 $ 685,514 $ 140,545 $ 644,519 (1) The notional amount of the Company’s commodity contracts totaled 20,672 thousand barrels of crude oil and 363,020 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of September 30, 2023. In comparison, the notional amount of the Company’s commodity contracts totaled 12,005 thousand barrels of crude oil and 247,704 thousand MMBTUs of natural gas as of December 31, 2022. (2) The notional amount of the credit contracts reflects the Company’s pro-rata share of the derivative instruments in RPAs. (3) The Company held warrant equity contracts in one public company and 13 private companies as of both September 30, 2023 and December 31, 2022. (4) Equity contracts classified as derivative liabilities consist of 349,138 PRSUs granted as part of EWBC’s consideration in its investment in Rayliant. The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives entered into with customers and with third-party financial institutions as economic hedges to customers’ positions as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Fair Value Fair Value ($ in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Customer-related positions: Interest rate contracts: Swaps $ 6,890,450 $ 691 $ 584,962 $ 6,656,491 $ 1,438 $ 521,719 Written options 1,486,958 — 21,864 1,548,158 — 30,904 Collars and corridors 306,996 — 7,619 215,773 — 8,924 Subtotal 8,684,404 691 614,445 8,420,422 1,438 561,547 Foreign exchange contracts: Forwards and spot 62,237 11,376 24,484 993,588 17,009 18,090 Swaps 2,494,517 16,282 23,687 623,143 6,629 12,178 Other 142,000 5,630 — 121,631 2,070 245 Subtotal 2,698,754 33,288 48,171 1,738,362 25,708 30,513 Total $ 11,383,158 $ 33,979 $ 662,616 $ 10,158,784 $ 27,146 $ 592,060 Economic hedges: Interest rate contracts: Swaps $ 6,916,364 $ 592,177 $ 1,119 $ 6,683,828 $ 384,201 $ 2,047 Purchased options 1,517,648 22,285 — 1,580,275 32,233 — Written options 30,690 — 356 32,117 — 1,235 Collars and corridors 306,996 7,646 — 215,772 8,956 — Subtotal 8,771,698 622,108 1,475 8,511,992 425,390 3,282 Foreign exchange contracts: Forwards and spot 1,060,498 452 313 77,998 3,050 87 Swaps 1,303,755 62,928 22,985 1,044,900 18,516 11,447 Other 142,000 — 5,630 121,631 245 2,070 Subtotal 2,506,253 63,380 28,928 1,244,529 21,811 13,604 Total $ 11,277,951 $ 685,488 $ 30,403 $ 9,756,521 $ 447,201 $ 16,886 The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and economic hedges as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Fair Value Fair Value ($ and unit in thousands) Notional Units Assets Liabilities Notional Units Assets Liabilities Customer-related positions: Commodity contracts: Crude oil: Swaps 3,958 Barrels $ 27,543 $ 1,717 2,465 Barrels $ 39,955 $ 6,178 Collars 6,362 Barrels 24,552 119 3,011 Barrels 16,038 2,630 Written options — Barrels — — — Barrels 558 — Subtotal 10,320 Barrels 52,095 1,836 5,476 Barrels 56,551 8,808 Natural gas: Swaps 129,940 MMBTUs 32,428 55,387 92,590 MMBTUs 112,314 73,208 Collars 50,763 MMBTUs 865 11,535 32,072 MMBTUs 2,217 18,317 Written options 1,955 MMBTUs — 206 — MMBTUs — — Subtotal 182,658 MMBTUs 33,293 67,128 124,662 MMBTUs 114,531 91,525 Total $ 85,388 $ 68,964 $ 171,082 $ 100,333 Economic hedges: Commodity contracts: Crude oil: Swaps 3,990 Barrels $ 2,165 $ 24,403 2,587 Barrels $ 6,935 $ 36,060 Collars 6,362 Barrels — 18,781 3,942 Barrels 1,378 12,856 Purchased options — Barrels — — — Barrels — 516 Subtotal 10,352 Barrels 2,165 43,184 6,529 Barrels 8,313 49,432 Natural gas: Swaps 129,405 MMBTUs 42,804 31,289 91,900 MMBTUs 69,767 106,883 Collars 49,003 MMBTUs 6,937 418 31,142 MMBTUs 12,451 1,960 Purchased options 1,955 MMBTUs 206 — — MMBTUs — — Subtotal 180,363 MMBTUs 49,947 31,707 123,042 MMBTUs 82,218 108,843 Total $ 52,112 $ 74,891 $ 90,531 $ 158,275 |
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 nine months ended September 30, 2023 and 2022. The after-tax impact of cash flow hedges on AOCI is shown in Note 14 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-Q. Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Losses recognized in AOCI: Interest rate contracts $ (62,715) $ (48,325) $ (129,329) $ (88,771) Gains (losses) reclassified from AOCI into earnings: Interest expense (for cash flow hedges on borrowings) $ — $ 1,251 $ 696 $ 1,385 Interest and dividend income (for cash flow hedges on loans) (24,059) (2,870) (57,265) 216 Noninterest income — — 1,614 (1) — Total $ (24,059) $ (1,619) $ (54,955) $ 1,601 (1) Represents the amounts in AOCI reclassified into earnings as a result that the forecasted cash flows were no longer probable to occur. |
Tabular Disclosure Of Gains and Losses On Derivative Instruments Qualified And Designated In Net Investment Hedges | The following table presents the pre-tax gains recognized in AOCI on net investment hedges for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Gains recognized in AOCI $ 63 $ 4,343 $ 2,886 $ 6,027 |
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 nine months ended September 30, 2023 and 2022: Classification on Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Derivatives not designated as hedging instruments: Interest rate contracts Interest rate contracts and other derivative income $ 5,283 $ 4,870 $ 4,022 $ 18,439 Foreign exchange contracts Foreign exchange income 7,267 3,831 37,607 6,596 Credit contracts Interest rate contracts and other derivative income 4 50 11 114 Equity contracts - warrants Lending fees 89 (13) 29 175 Commodity contracts Interest rate contracts and other derivative income 27 (156) 193 139 Net gains $ 12,670 $ 8,582 $ 41,862 $ 25,463 |
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 to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of over-collateralization are not shown: ($ in thousands) As of September 30, 2023 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 $ 862,316 $ (260,648) $ (269,683) $ 331,985 $ (280,043) $ 51,942 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 $ 948,387 $ (260,648) $ (2,225) $ 685,514 $ — $ 685,514 ($ in thousands) As of December 31, 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 $ 755,328 $ (242,745) $ (372,038) $ 140,545 $ (60,567) $ 79,978 Gross Amounts Recognized (2) Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 887,264 $ (242,745) $ — $ 644,519 $ (38,438) $ 606,081 (1) Includes $1.8 million and $2.1 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of September 30, 2023 and December 31, 2022, respectively. (2) Includes $16.2 million and $566 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of September 30, 2023 and December 31, 2022, respectively. (3) Gross cash collateral received under master netting arrangements or similar agreements was $275.7 million and $384.9 million as of September 30, 2023 and December 31, 2022, respectively. Of the gross cash collateral received, $269.7 million and $372.0 million were used to offset against derivative assets as of September 30, 2023 and December 31, 2022, respectively. (4) Gross cash collateral pledged under master netting arrangements or similar agreements was $3.1 million and $490 thousand as of September 30, 2023 and December 31, 2022, respectively. Of the gross cash collateral pledged, $2.2 million was used to offset against derivative liabilities as of September 30, 2023. In comparison, no cash collateral was used to offset against derivative liabilities as of December 31, 2022. (5) Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires the disclosure of such amounts. |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule Of Composition Of Loans Held-For-Investment | The following table presents the composition of the Company’s loans held-for-investment outstanding as of September 30, 2023 and December 31, 2022: ($ in thousands) September 30, 2023 December 31, 2022 Commercial: C&I $ 15,864,042 $ 15,711,095 CRE: CRE 14,667,378 13,857,870 Multifamily residential 4,900,097 4,573,068 Construction and land 798,190 638,420 Total CRE 20,365,665 19,069,358 Total commercial 36,229,707 34,780,453 Consumer: Residential mortgage: Single-family residential 12,836,558 11,223,027 HELOCs 1,776,665 2,122,655 Total residential mortgage 14,613,223 13,345,682 Other consumer 64,254 76,295 Total consumer 14,677,477 13,421,977 Total loans held-for-investment (1) $ 50,907,184 $ 48,202,430 Allowance for loan losses (655,523) (595,645) Loans held-for-investment, net (1) $ 50,251,661 $ 47,606,785 (1) Includes $72.0 million and $70.4 million comprising unamortized deferred and unearned fees, net of premiums as of September 30, 2023 and December 31, 2022, respectively. |
Schedule Of Loans Held-For-Investment By Loan Portfolio Segments, Internal Risk Ratings, Gross Write-Offs And Vintage Year | The following tables summarize the Company’s loans held-for-investment and current year-to-date gross write-offs by loan portfolio segments, internal risk ratings and vintage year as of the periods presented. The vintage year is the year of loan origination, renewal or major modification. Revolving loans that are converted to term loans presented in the tables below are excluded from term loans by vintage year columns. September 30, 2023 Term Loans by Origination Year ($ in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Commercial: C&I: Pass $ 1,858,749 $ 1,942,241 $ 1,470,818 $ 354,650 $ 259,342 $ 164,149 $ 9,254,852 $ 20,248 $ 15,325,049 Criticized (accrual) 88,542 110,918 91,272 45,069 25,603 23,640 104,802 — 489,846 Criticized (nonaccrual) 2,084 10,480 13 8,694 6,134 21,709 33 — 49,147 Total C&I 1,949,375 2,063,639 1,562,103 408,413 291,079 209,498 9,359,687 20,248 15,864,042 YTD gross write-offs (2) 350 28 161 15 6,606 1,684 — — 8,844 CRE: Pass 2,066,361 4,080,810 2,259,761 1,396,114 1,649,168 2,722,697 101,811 63,050 14,339,772 Criticized (accrual) 36,899 14,717 20,307 100,871 24,544 129,658 — — 326,996 Criticized (nonaccrual) — — — — 451 159 — — 610 Subtotal CRE 2,103,260 4,095,527 2,280,068 1,496,985 1,674,163 2,852,514 101,811 63,050 14,667,378 YTD gross write-offs (2) — — — — — 119 — — 119 Multifamily residential: Pass 478,895 1,495,620 814,391 620,117 503,791 893,282 7,658 1,288 4,815,042 Criticized (accrual) — — 53,555 — 696 26,124 — — 80,375 Criticized (nonaccrual) — — — — — 4,680 — — 4,680 Subtotal multifamily residential 478,895 1,495,620 867,946 620,117 504,487 924,086 7,658 1,288 4,900,097 Construction and land: Pass 151,175 354,415 222,474 37,732 812 5,475 14,966 — 787,049 Criticized (nonaccrual) — — — — — 11,141 — — 11,141 Subtotal construction and land 151,175 354,415 222,474 37,732 812 16,616 14,966 — 798,190 YTD gross write-offs — — — — — 10,413 — — 10,413 Total CRE 2,733,330 5,945,562 3,370,488 2,154,834 2,179,462 3,793,216 124,435 64,338 20,365,665 YTD gross write-offs (2) — — — — — 10,532 — — 10,532 Total commercial $ 4,682,705 $ 8,009,201 $ 4,932,591 $ 2,563,247 $ 2,470,541 $ 4,002,714 $ 9,484,122 $ 84,586 $ 36,229,707 YTD total commercial gross write-offs (2) $ 350 $ 28 $ 161 $ 15 $ 6,606 $ 12,216 $ — $ — $ 19,376 September 30, 2023 Term Loans by Origination Year ($ in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Consumer: Residential mortgage: Single-family residential: Pass (3) $ 2,400,448 $ 3,390,708 $ 2,321,209 $ 1,633,316 $ 1,010,859 $ 2,040,678 $ — $ — $ 12,797,218 Criticized (accrual) 844 1,983 844 1,499 964 9,060 — — 15,194 Criticized (nonaccrual) (3) 1,916 2,866 4,702 2,696 2,868 9,098 — — 24,146 Subtotal single-family residential mortgage 2,403,208 3,395,557 2,326,755 1,637,511 1,014,691 2,058,836 — — 12,836,558 HELOCs: Pass 182 1,828 5,736 4,318 1,963 13,821 1,611,319 118,088 1,757,255 Criticized (accrual) 741 401 62 — 353 1,649 2,039 963 6,208 Criticized (nonaccrual) — 517 — 1,359 68 5,396 1,751 4,111 13,202 Subtotal HELOCs 923 2,746 5,798 5,677 2,384 20,866 1,615,109 123,162 1,776,665 YTD gross write-offs (2) — — — — — 41 — 6 47 Total residential mortgage 2,404,131 3,398,303 2,332,553 1,643,188 1,017,075 2,079,702 1,615,109 123,162 14,613,223 YTD gross write-offs (2) — — — — — 41 — 6 47 Other consumer: Pass 3,555 18,138 135 — — 12,315 29,971 — 64,114 Criticized (accrual) 4 — — — — — — — 4 Criticized (nonaccrual) — — — — — — 136 — 136 Total other consumer 3,559 18,138 135 — — 12,315 30,107 — 64,254 Total consumer $ 2,407,690 $ 3,416,441 $ 2,332,688 $ 1,643,188 $ 1,017,075 $ 2,092,017 $ 1,645,216 $ 123,162 $ 14,677,477 YTD total consumer gross write-offs (2) $ — $ — $ — $ — $ — $ 41 $ — $ 6 $ 47 Total loans held-for-investment: Pass $ 6,959,365 $ 11,283,760 $ 7,094,524 $ 4,046,247 $ 3,425,935 $ 5,852,417 $ 11,020,577 $ 202,674 $ 49,885,499 Criticized (accrual) 127,030 128,019 166,040 147,439 52,160 190,131 106,841 963 918,623 Criticized (nonaccrual) 4,000 13,863 4,715 12,749 9,521 52,183 1,920 4,111 103,062 Total $ 7,090,395 $ 11,425,642 $ 7,265,279 $ 4,206,435 $ 3,487,616 $ 6,094,731 $ 11,129,338 $ 207,748 $ 50,907,184 YTD total loans held-for-investment gross write-offs (2) $ 350 $ 28 $ 161 $ 15 $ 6,606 $ 12,257 $ — $ 6 $ 19,423 December 31, 2022 Term Loans by Origination Year ($ in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Commercial: C&I: Pass $ 2,831,834 $ 2,053,215 $ 623,026 $ 392,013 $ 143,970 $ 97,605 $ 9,177,401 $ 20,548 $ 15,339,612 Criticized (accrual) 72,210 34,296 48,761 34,221 20,646 12,933 97,988 — 321,055 Criticized (nonaccrual) 18,722 4,797 10,733 243 5,618 10,315 — — 50,428 Total C&I 2,922,766 2,092,308 682,520 426,477 170,234 120,853 9,275,389 20,548 15,711,095 CRE: Pass 4,178,780 2,404,634 1,505,150 1,771,679 1,471,710 1,909,925 165,653 22,009 13,429,540 Criticized (accrual) 3,518 60,573 159,424 40,095 91,132 32,173 1,455 16,716 405,086 Criticized (nonaccrual) — 19,044 — — — 4,200 — — 23,244 Subtotal CRE 4,182,298 2,484,251 1,664,574 1,811,774 1,562,842 1,946,298 167,108 38,725 13,857,870 Multifamily residential: Pass 1,500,289 892,598 641,677 519,614 350,044 625,293 11,325 — 4,540,840 Criticized (accrual) — — — 707 4,276 27,076 — — 32,059 Criticized (nonaccrual) — — — — — 169 — — 169 Subtotal multifamily residential 1,500,289 892,598 641,677 520,321 354,320 652,538 11,325 — 4,573,068 Construction and land: Pass 288,394 276,839 31,804 3,104 2,805 231 9,073 — 612,250 Criticized (accrual) 4,504 — — — 21,666 — — — 26,170 Subtotal construction and land 292,898 276,839 31,804 3,104 24,471 231 9,073 — 638,420 Total CRE 5,975,485 3,653,688 2,338,055 2,335,199 1,941,633 2,599,067 187,506 38,725 19,069,358 Total commercial $ 8,898,251 $ 5,745,996 $ 3,020,575 $ 2,761,676 $ 2,111,867 $ 2,719,920 $ 9,462,895 $ 59,273 $ 34,780,453 Consumer: Residential mortgage: Single-family residential: Pass (3) $ 3,548,894 $ 2,453,717 $ 1,775,696 $ 1,101,965 $ 817,164 $ 1,500,359 $ — $ — $ 11,197,795 Criticized (accrual) — 1,275 785 1,463 4,352 3,935 — — 11,810 Criticized (nonaccrual) (3) 141 — 204 3,202 1,721 8,154 — — 13,422 Subtotal single-family residential mortgage 3,549,035 2,454,992 1,776,685 1,106,630 823,237 1,512,448 — — 11,223,027 HELOCs: Pass 520 3,583 7,336 3,203 525 8,960 1,958,692 127,401 2,110,220 Criticized (accrual) — 6 — — — — 4 1,079 1,089 Criticized (nonaccrual) — — 483 231 1,017 4,844 1,001 3,770 11,346 Subtotal HELOCs 520 3,589 7,819 3,434 1,542 13,804 1,959,697 132,250 2,122,655 Total residential mortgage 3,549,555 2,458,581 1,784,504 1,110,064 824,779 1,526,252 1,959,697 132,250 13,345,682 Other consumer: Pass 17,088 137 5,356 — — 15,808 37,804 — 76,193 Criticized (accrual) 3 — — — — — — — 3 Criticized (nonaccrual) — — — — — — 99 — 99 Total other consumer 17,091 137 5,356 — — 15,808 37,903 — 76,295 Total consumer $ 3,566,646 $ 2,458,718 $ 1,789,860 $ 1,110,064 $ 824,779 $ 1,542,060 $ 1,997,600 $ 132,250 $ 13,421,977 Total by Risk Rating: Pass $ 12,365,799 $ 8,084,723 $ 4,590,045 $ 3,791,578 $ 2,786,218 $ 4,158,181 $ 11,359,948 $ 169,958 $ 47,306,450 Criticized (accrual) 80,235 96,150 208,970 76,486 142,072 76,117 99,447 17,795 797,272 Criticized (nonaccrual) 18,863 23,841 11,420 3,676 8,356 27,682 1,100 3,770 98,708 Total $ 12,464,897 $ 8,204,714 $ 4,810,435 $ 3,871,740 $ 2,936,646 $ 4,261,980 $ 11,460,495 $ 191,523 $ 48,202,430 (1) $11.2 million and $24.6 million of total commercial loans, primarily comprised of CRE revolving loans, converted to term loans during the three and nine months ended September 30, 2023, respectively. In comparison, $0 and $26.4 million of total commercial loans, primarily comprised of CRE revolving loans, converted to term loans during the three and nine months ended September 30, 2022. $20.6 million and $27.7 million of total consumer loans, comprised of HELOCs, were converted to term loans during three and nine months ended September 30, 2023, respectively. In comparison, $375 thousand of total consumer loans, comprised of HELOCs, converted to term loans during both the three and nine months ended September 30, 2022. (2) Excludes gross write-offs associated with loans the Company sold or settled. (3) As of September 30, 2023 and December 31, 2022, $638 thousand and $818 thousand, respectively, of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating. |
Schedule Of Aging Analysis Of Loans | The following tables present the aging analysis of loans held-for-investment as of September 30, 2023 and December 31, 2022: September 30, 2023 ($ in thousands) Current Accruing Accruing Total Total Total Commercial: C&I $ 15,781,468 $ 33,195 $ 232 $ 33,427 $ 49,147 $ 15,864,042 CRE: CRE 14,664,230 2,015 523 2,538 610 14,667,378 Multifamily residential 4,894,334 1,083 — 1,083 4,680 4,900,097 Construction and land 787,049 — — — 11,141 798,190 Total CRE 20,345,613 3,098 523 3,621 16,431 20,365,665 Total commercial 36,127,081 36,293 755 37,048 65,578 36,229,707 Consumer: Residential mortgage: Single-family residential 12,771,661 24,141 15,972 40,113 24,784 12,836,558 HELOCs 1,746,841 10,416 6,206 16,622 13,202 1,776,665 Total residential mortgage 14,518,502 34,557 22,178 56,735 37,986 14,613,223 Other consumer 63,992 109 17 126 136 64,254 Total consumer 14,582,494 34,666 22,195 56,861 38,122 14,677,477 Total $ 50,709,575 $ 70,959 $ 22,950 $ 93,909 $ 103,700 $ 50,907,184 December 31, 2022 ($ in thousands) Current Accruing Accruing Total Total Total Commercial: C&I $ 15,651,312 $ 6,482 $ 2,873 $ 9,355 $ 50,428 $ 15,711,095 CRE: CRE 13,820,441 14,185 — 14,185 23,244 13,857,870 Multifamily residential 4,571,899 678 322 1,000 169 4,573,068 Construction and land 638,420 — — — — 638,420 Total CRE 19,030,760 14,863 322 15,185 23,413 19,069,358 Total commercial 34,682,072 21,345 3,195 24,540 73,841 34,780,453 Consumer: Residential mortgage: Single-family residential 11,183,134 13,523 12,130 25,653 14,240 11,223,027 HELOCs 2,102,523 7,700 1,086 8,786 11,346 2,122,655 Total residential mortgage 13,285,657 21,223 13,216 34,439 25,586 13,345,682 Other consumer 73,004 109 3,083 3,192 99 76,295 Total consumer 13,358,661 21,332 16,299 37,631 25,685 13,421,977 Total $ 48,040,733 $ 42,677 $ 19,494 $ 62,171 $ 99,526 $ 48,202,430 |
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 September 30, 2023 and December 31, 2022. Nonaccrual loans may not have an allowance for credit losses if the loan balances are well-secured by the collateral value and there is no loss expectation. ($ in thousands) September 30, 2023 December 31, 2022 Commercial: C&I $ 29,336 $ 11,398 CRE — 22,944 Multifamily residential 4,235 — Construction and land 11,141 — Total commercial 44,712 34,342 Consumer: Single-family residential 6,681 2,998 HELOCs 8,483 7,245 Total consumer 15,164 10,243 Total nonaccrual loans with no related allowance for loan losses $ 59,876 $ 44,585 |
Summary Of Modified Loans/TDRs | The following tables present the amortized cost of loans that were modified during the three and nine months ended September 30, 2023 by loan class and modification type: Three Months Ended September 30, 2023 Modification Type ($ in thousands) Term Extension Payment Delay Combination: Term Extension/ Payment Delay Combination: Rate Reduction/ Term Extension Combination: Rate Reduction/ Payment Delay Total Modification as a % of Loan Class Commercial: C&I $ 1,682 $ 11,603 $ — $ — $ — $ 13,285 0.08 % CRE: CRE 13,469 — — — — 13,469 0.07 % Total commercial 15,151 11,603 — — — 26,754 Consumer: Residential mortgage: Single-family residential: — 2,944 1,260 — — 4,204 0.03 % HELOCs — — 334 — 183 517 0.03 % Total consumer — 2,944 1,594 — 183 4,721 Total $ 15,151 $ 14,547 $ 1,594 $ — $ 183 $ 31,475 Nine Months Ended September 30, 2023 Modification Type ($ in thousands) Term Extension Payment Delay Combination: Term Extension/ Payment Delay Combination: Rate Reduction/ Term Extension Combination: Rate Reduction/ Payment Delay Total Modification as a % of Loan Class Commercial: C&I $ 44,120 $ 20,793 $ — $ — $ — $ 64,913 0.41 % CRE: CRE 13,979 — — 32,724 — 46,703 0.23 % Total commercial 58,099 20,793 — 32,724 — 111,616 Consumer: Residential mortgage: Single-family residential: — 7,276 1,809 — — 9,085 0.07 % HELOCs — 741 1,053 — 183 1,977 0.11 % Total consumer — 8,017 2,862 — 183 11,062 Total $ 58,099 $ 28,810 $ 2,862 $ 32,724 $ 183 $ 122,678 The following tables present the financial effects of the loan modifications for the three and nine months ended September 30, 2023 by loan class and modification type: Financial Effects of Loan Modifications Three Months Ended September 30, 2023 ($ in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Payment Delay Commercial: C&I $ 26 — % 3.00 1.54 CRE — — % 1.08 — Consumer: Single-family residential — — % 10.00 0.96 HELOCs — 0.50 % 16.68 0.71 Total $ 26 Financial Effects of Loan Modifications Nine months ended September 30, 2023 ($ in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Payment Delay Commercial: C&I $ 371 (1) — % (1) 1.41 1.15 CRE — 3.00 % 2.09 — Consumer: Single-family residential — — % 9.91 0.95 HELOCs — 0.50 % 15.36 0.52 Total $ 371 (1) Comprised of C&I loans modified during the nine months ended September 30, 2023 where the interest rate is waived in addition to principal forgiveness. No recorded investment was outstanding as of September 30, 2023. The following table presents the additions to TDRs for the three and nine months ended September 30, 2022: Loans Modified as TDRs Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (1) Financial Impact (2) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 1 $ 499 $ 496 $ 98 4 $ 30,633 $ 17,802 $ 16,729 Total commercial 1 499 496 98 4 30,633 17,802 16,729 Consumer: Residential mortgage: HELOCs 1 62 69 2 1 62 69 2 Total residential mortgage 1 62 69 2 1 62 69 2 Total consumer 1 62 69 2 1 62 69 2 Total 2 $ 561 $ 565 $ 100 5 $ 30,695 $ 17,871 $ 16,731 (1) Includes subsequent payments after modification and reflects the balance as of September 30, 2022. (2) Includes charge-offs since the modification date. The following table presents the TDR post-modification outstanding balances by the primary modification type for the three and nine months ended September 30, 2022: Modification Type Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 ($ in thousands) Principal Other Total Principal (1) Other (2) Total Commercial: C&I $ 496 $ — $ 496 $ 9,609 $ 8,193 $ 17,802 Total commercial 496 — 496 9,609 8,193 17,802 Consumer: Residential mortgage: HELOCs 69 — 69 69 — 69 Total residential mortgage 69 — 69 69 — 69 Total consumer 69 — 69 69 — 69 Total $ 565 $ — $ 565 $ 9,678 $ 8,193 $ 17,871 (1) Includes principal deferments that modify the terms of the loan from principal and interest payments to interest payments only. (2) Includes increase in new commitments. |
Financing Receivable, Modified, Payment Performance | The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that were modified as of September 30, 2023 since the adoption of ASU 2022-02 on January 1, 2023. Payment Performance as of September 30, 2023 ($ in thousands) Current 30 - 89 Days Past Due 90+ Days Past Due Total Commercial: C&I $ 58,481 $ — $ 6,432 $ 64,913 CRE: CRE 46,703 — — 46,703 Total commercial 105,184 — 6,432 111,616 Consumer: Residential mortgage: Single-family residential 7,430 1,190 465 9,085 HELOCs 1,236 741 — 1,977 Total consumer 8,666 1,931 465 11,062 Total $ 113,850 $ 1,931 $ 6,897 $ 122,678 |
Financing Receivable, Modified, Subsequent Default | The following table presents information on loans that entered into default during the three and nine months ended September 30, 2022 that were modified as TDRs during the 12 months preceding payment default: Loan Modified as TDRs that Subsequently Defaulted Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 ($ in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial: C&I — $ — 2 $ 13,901 CRE: Multifamily residential — — 1 1,008 Total CRE — — 1 1,008 Total commercial — — 3 14,909 Total — $ — 3 $ 14,909 |
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 percentage, size at origination, delinquency status, sector and risk rating Unemployment rate, Gross Domestic Product (“GDP”), and Two-Ten treasury spread (1) CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, 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 Loss rate approach Immaterial (2) (1) Macroeconomic variables were updated due to model redevelopment. (2) Macroeconomic variables are included in the qualitative estimate. |
Summary Of Activity In The Allowance For Credit Losses | The following tables summarize the activity in the allowance for loan losses by portfolio segments for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total Allowance for loan losses, beginning of period $ 375,333 $ 168,505 $ 22,938 $ 11,325 $ 51,513 $ 4,526 $ 1,260 $ 635,400 Provision for (reversal of) credit losses on loans (a) 13,006 12,952 772 8,302 3,353 (705) 456 38,136 Gross charge-offs (7,074) (3,466) — (10,413) — (41) (13) (21,007) Gross recoveries 2,279 49 452 2 64 15 — 2,861 Total net (charge-offs) recoveries (4,795) (3,417) 452 (10,411) 64 (26) (13) (18,146) Foreign currency translation adjustment 133 — — — — — — 133 Allowance for loan losses, end of period $ 383,677 $ 178,040 $ 24,162 $ 9,216 $ 54,930 $ 3,795 $ 1,703 $ 655,523 Three Months Ended September 30, 2022 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total Allowance for loan losses, beginning of period $ 363,282 $ 140,245 $ 26,552 $ 6,682 $ 21,840 $ 3,220 $ 1,449 $ 563,270 Provision for credit losses on loans (a) 9,575 5,299 5,047 817 6,182 99 255 27,274 Gross charge-offs (6,894) (288) (5,938) — (775) — (10) (13,905) Gross recoveries 7,172 45 19 7 16 5 — 7,264 Total net recoveries (charge-offs) 278 (243) (5,919) 7 (759) 5 (10) (6,641) Foreign currency translation adjustment (1,386) — — — — — — (1,386) Allowance for loan losses, end of period $ 371,749 $ 145,301 $ 25,680 $ 7,506 $ 27,263 $ 3,324 $ 1,694 $ 582,517 Nine Months Ended September 30, 2023 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total Allowance for loan losses, December 31, 2022 $ 371,700 $ 149,864 $ 23,373 $ 9,109 $ 35,564 $ 4,475 $ 1,560 $ 595,645 Impact of ASU 2022-02 adoption 5,683 337 6 — 1 1 — 6,028 Allowance for loan losses, beginning of period 377,383 150,201 23,379 9,109 35,565 4,476 1,560 601,673 Provision for (reversal of) credit losses on loans (a) 17,587 33,313 303 10,507 19,296 (569) 244 80,681 Gross charge-offs (16,309) (5,838) — (10,413) — (138) (101) (32,799) Gross recoveries 5,555 364 480 13 69 26 — 6,507 Total net (charge-offs) recoveries (10,754) (5,474) 480 (10,400) 69 (112) (101) (26,292) Foreign currency translation adjustment (539) — — — — — — (539) Allowance for loan losses, end of period $ 383,677 $ 178,040 $ 24,162 $ 9,216 $ 54,930 $ 3,795 $ 1,703 $ 655,523 Nine Months Ended September 30, 2022 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total 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) 37,867 (5,013) 16,680 (8,027) 10,569 59 (140) 51,995 Gross charge-offs (18,322) (1,357) (5,947) — (775) (193) (90) (26,684) Gross recoveries 16,688 731 547 65 309 23 — 18,363 Total net (charge-offs) recoveries (1,634) (626) (5,400) 65 (466) (170) (90) (8,321) Foreign currency translation adjustment (2,736) — — — — — — (2,736) Allowance for loan losses, end of period $ 371,749 $ 145,301 $ 25,680 $ 7,506 $ 27,263 $ 3,324 $ 1,694 $ 582,517 Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Unfunded credit facilities Allowance for unfunded credit commitments, beginning of period $ 29,728 $ 24,304 $ 26,264 $ 27,514 Provision for (reversal of) credit losses on unfunded credit commitments (b) 3,864 (274) 7,319 (3,495) Foreign currency translation adjustment (3) 11 6 22 Allowance for unfunded credit commitments, end of period $ 33,589 $ 24,041 $ 33,589 $ 24,041 Provision for credit losses (a) + (b) $ 42,000 $ 27,000 $ 88,000 $ 48,500 |
Schedule Of Carrying Value Of Loans Transferred, Loans Sold and Purchased For the Held-For-Investment Portfolio | The following tables provide information on the carrying value of loans transferred, sold and purchased for the held-for-investment portfolio, during the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Construction and Land Single-Family Residential Total Loans transferred from held-for-investment to held-for-sale (1) $ 201,299 $ 25,890 $ — $ — $ 227,189 Sales (2)(3) $ 199,511 $ 29,357 $ — $ — $ 228,868 Purchases (4) $ 19,588 $ — $ — $ 140,771 $ 160,359 Three Months Ended September 30, 2022 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Single-Family Residential Total Loans transferred from held-for-investment to held-for-sale (1) $ 59,069 $ 33,616 $ 14,500 $ 5,178 $ 112,363 Sales (2)(3) $ 87,597 $ 33,616 $ — $ 5,952 $ 127,165 Purchases (4) $ 56,507 $ — $ — $ 1,155 $ 57,662 Nine Months Ended September 30, 2023 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Construction and Land Single-Family Residential Total Loans transferred from held-for-investment to held-for-sale (1) $ 469,571 $ 29,490 $ 8,154 $ — $ 507,215 Sales (2)(3) $ 491,178 $ 32,957 $ 8,154 $ — $ 532,289 Purchases (4) $ 80,550 $ — $ — $ 351,880 $ 432,430 Nine Months Ended September 30, 2022 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Single-Family Residential Total Loans transferred from held-for-investment to held-for-sale (1) $ 378,841 $ 65,250 $ 14,500 $ 5,178 $ 463,769 Loans transferred from held-for-sale to held-for-investment $ — $ — $ — $ 631 $ 631 Sales (2)(3) $ 375,100 $ 65,250 $ — $ 6,403 $ 446,753 Purchases (4) $ 361,169 $ — $ — $ 238,253 $ 599,422 (1) Includes write-downs of $3.6 million and $4.2 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three and nine months ended September 30, 2023, respectively, and $8.7 million and $8.9 million for the three and nine months ended September 30, 2022, respectively. (2) Includes originated loans sold of $204.1 million and $407.3 million for the three and nine months ended September 30, 2023, respectively, and $86.2 million and $253.9 million for the three and nine months ended September 30, 2022, respectively. Originated loans sold consisted primarily of C&I loans for each of the three and nine months ended September 30, 2023, and C&I and CRE loans for each of the three and nine months ended September 30, 2022. (3) Includes $24.7 million and $125.0 million of purchased loans sold in the secondary market for the three and nine months ended September 30, 2023, respectively, and $40.9 million and $192.9 million for the three and nine months ended September 30, 2022, respectively. (4) C&I loan purchases were comprised primarily of syndicated C&I term loans. |
Investments in Qualified Affo_2
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities [Abstract] | |
Schedule of Investment in Affordable Housing and Tax Credit and Other Investments, Net and Related Unfunded Commitments | The following table presents investments and unfunded commitments of the Company’s qualified affordable housing partnerships, tax credit, and other investments as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 ($ in thousands) Assets Liabilities - Unfunded Commitments (1) Assets Liabilities - Unfunded Commitments (1) Investments in qualified affordable housing partnerships, net $ 412,004 $ 252,552 $ 413,253 $ 266,654 Investments in tax credit and other investments, net 489,555 345,072 350,003 185,797 Total $ 901,559 $ 597,624 $ 763,256 $ 452,451 (1) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. |
Schedule of Additional Information related to the Investments in Affordable Housing and Tax Credit and Other Investments | The following table presents additional information related to the investments in qualified affordable housing partnerships, tax credit and other investments for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Investments in qualified housing partnerships, net: Tax credits and other tax benefits recognized $ 15,660 $ 13,180 $ 47,058 $ 38,764 Amortization expense included in income tax expense $ 11,587 $ 10,431 $ 34,759 $ 30,498 Investments in tax credit and other investments, net: Amortization of tax credit and other investments (1) $ 49,694 $ 19,874 $ 115,718 $ 48,753 Unrealized losses on equity securities with readily determinable values $ (674) $ (1,014) $ (682) $ (2,958) (1) Includes net impairment losses of $790 thousand for the three months ended September 30, 2023, and net impairment recoveries of $831 thousand for the nine months ended September 30, 2023. The activity for both periods was primarily related to historic tax credits. In comparison, there were no impairment recoveries or losses for three or nine months ended September 30, 2022. |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | The following table presents details of the Company’s short-term borrowings as of September 30, 2023. September 30, 2023 ($ in thousands) Interest Rate Maturity Date Amount Short-term borrowings 4.37% 3/19/2024 $ 4,500,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Credit-Related Commitments | The following table presents the Company’s credit-related commitments as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 ($ in thousands) Expire in One Year or Less Expire After One Year Expire After Three Years Expire After Five Years Total Total Loan commitments $ 4,650,619 $ 3,689,245 $ 1,037,254 $ 139,325 $ 9,516,443 $ 8,211,571 Commercial letters of credit and SBLCs 875,757 405,377 122,255 1,124,405 2,527,794 2,291,966 Total $ 5,526,376 $ 4,094,622 $ 1,159,509 $ 1,263,730 $ 12,044,237 $ 10,503,537 |
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 September 30, 2023 and December 31, 2022: Maximum Potential Future Payments Carrying Value September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 ($ in thousands) Expire in One Year or Less Expire After One Year Expire After Three Years Expire After Five Years Total Total Total Total Single-family residential loans sold or securitized with recourse $ 28 $ 23 $ 28 $ 6,013 $ 6,092 $ 6,781 $ 6,092 $ 6,781 Multifamily residential loans sold or securitized with recourse — — 66 14,930 14,996 14,996 19,887 21,320 Total $ 28 $ 23 $ 94 $ 20,943 $ 21,088 $ 21,777 $ 25,979 $ 28,101 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Compensation Expense and Related Net Tax (Deficiency) Benefit | The following table presents a summary of the total share-based compensation expense and the related net tax (deficiencies) benefits associated with the Company’s various employee share-based compensation plans for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2023 2022 2023 2022 Stock compensation costs $ 9,495 $ 12,329 $ 29,934 $ 29,338 Related net tax (deficiencies) benefits for stock compensation plans $ (18) $ 1 $ 8,797 $ 5,269 |
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 nine months ended September 30, 2023. 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-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding, January 1, 2023 1,296,866 $ 60.77 332,510 $ 60.40 Granted 500,180 73.73 96,271 57.50 Vested (522,029) 40.79 (152,558) 39.39 Forfeited (53,379) 74.00 — — Outstanding, September 30, 2023 1,221,638 $ 74.04 276,223 $ 70.99 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022. 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 in the Company’s 2022 Form 10-K. ($ and shares in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic: Net income $ 287,738 $ 295,339 $ 922,208 $ 791,320 Weighted-average number of shares outstanding 141,485 140,917 141,356 141,453 Basic EPS $ 2.03 $ 2.10 $ 6.52 $ 5.59 Diluted: Net income $ 287,738 $ 295,339 $ 922,208 $ 791,320 Weighted-average number of shares outstanding 141,485 140,917 141,356 141,453 Add: Dilutive impact of unvested RSUs 637 1,094 688 1,148 Diluted weighted-average number of shares outstanding 142,122 142,011 142,044 142,601 Diluted EPS $ 2.02 $ 2.08 $ 6.49 $ 5.55 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022: ($ in thousands) Debt Securities (1) Cash Flow Hedges Foreign Currency Translation Adjustments (2) Total Balance, July 1, 2022 $ (554,781) $ (30,846) $ (15,021) $ (600,648) Net unrealized losses arising during the period (161,445) (34,423) (7,926) (203,794) Amounts reclassified from AOCI 3,256 1,154 — 4,410 Changes, net of tax (158,189) (33,269) (7,926) (199,384) Balance, September 30, 2022 $ (712,970) $ (64,115) $ (22,947) $ (800,032) Balance, July 1, 2023 $ (681,536) $ (74,805) $ (25,591) $ (781,932) Net unrealized (losses) gains arising during the period (72,691) (44,347) 3,710 (113,328) Amounts reclassified from AOCI 2,870 17,013 — 19,883 Changes, net of tax (69,821) (27,334) 3,710 (93,445) Balance, September 30, 2023 $ (751,357) $ (102,139) $ (21,881) $ (875,377) ($ in thousands) Debt Securities (1) Cash Flow Hedges Foreign Currency Translation Adjustments (2) Total Balance, January 1, 2022 $ (85,703) $ 257 $ (4,935) $ (90,381) Net unrealized losses arising during the period (635,664) (63,232) (18,012) (716,908) Amounts reclassified from AOCI 8,397 (1,140) — 7,257 Changes, net of tax (627,267) (64,372) (18,012) (709,651) Balance, September 30, 2022 $ (712,970) $ (64,115) $ (22,947) $ (800,032) Balance, January 1, 2023 $ (694,815) $ (49,531) $ (21,283) $ (765,629) Net unrealized losses arising during the period (72,034) (91,468) (598) (164,100) Amounts reclassified from AOCI 15,492 38,860 — 54,352 Changes, net of tax (56,542) (52,608) (598) (109,748) Balance, September 30, 2023 $ (751,357) $ (102,139) $ (21,881) $ (875,377) (1) Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022. (2) 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 is RMB and USD, respectively. |
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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 2022 ($ in thousands) Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: Net unrealized losses on AFS debt securities arising during the period $ (103,183) $ 30,492 $ (72,691) $ (229,246) $ 67,801 $ (161,445) Reclassification adjustments: Amortization of unrealized losses on transferred debt securities (1) 4,075 (1,205) 2,870 4,623 (1,367) 3,256 Net change (99,108) 29,287 (69,821) (224,623) 66,434 (158,189) Cash flow hedges: Net unrealized losses arising during the period (62,715) 18,368 (44,347) (48,325) 13,902 (34,423) Net realized losses reclassified into net income (2) 24,059 (7,046) 17,013 1,619 (465) 1,154 Net change (38,656) 11,322 (27,334) (46,706) 13,437 (33,269) Foreign currency translation adjustments, net of hedges: Net unrealized gains (losses) arising during the period 3,728 (18) 3,710 (6,676) (1,250) (7,926) Net change 3,728 (18) 3,710 (6,676) (1,250) (7,926) Other comprehensive loss $ (134,036) $ 40,591 $ (93,445) $ (278,005) $ 78,621 $ (199,384) Nine Months Ended September 30, 2023 2022 ($ in thousands) Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: Net unrealized losses on AFS debt securities arising during the period $ (102,262) $ 30,228 $ (72,034) $ (742,132) $ 219,459 $ (522,673) Unrealized losses on debt securities transferred from AFS to HTM — — — (160,416) 47,425 (112,991) Reclassification adjustments: Net realized losses (gains) on AFS debt securities reclassified into net income (3) 10,000 (4) (2,956) 7,044 (1,306) 386 (920) Amortization of unrealized losses on transferred debt securities (1) 11,994 (3,546) 8,448 13,228 (3,911) 9,317 Net change (80,268) 23,726 (56,542) (890,626) 263,359 (627,267) Cash flow hedges: Net unrealized losses arising during the period (129,329) 37,861 (91,468) (88,771) 25,539 (63,232) Net realized losses (gains) reclassified into net income (2) 54,955 (16,095) 38,860 (1,601) 461 (1,140) Net change (74,374) 21,766 (52,608) (90,372) 26,000 (64,372) Foreign currency translation adjustments, net of hedges: Net unrealized gains (losses) arising during the period 247 (845) (598) (16,276) (1,736) (18,012) Net change 247 (845) (598) (16,276) (1,736) (18,012) Other comprehensive loss $ (154,395) $ 44,647 $ (109,748) $ (997,274) $ 287,623 $ (709,651) (1) Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio in 2022. (2) Pre-tax amounts related to cash flow hedges on variable rate loans and long-term borrowings, where applicable, were reported in Interest and dividend income and in Interest expense, respectively , on the Consolidated Statement of Income. (3) Pre-tax amounts were reported in Net (losses) gains on AFS debt securities on the Consolidated Statement of Income. (4) Represents the full write-off of an impaired subordinated debt security during the first quarter of 2023. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022: ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Three Months Ended September 30, 2023 Net interest income before provision for credit losses $ 315,409 $ 242,345 $ 13,059 $ 570,813 Provision for credit losses 1,633 40,367 — 42,000 Noninterest income 25,132 43,672 7,948 76,752 Noninterest expense 106,626 87,556 57,832 252,014 Segment income (loss) before income taxes 232,282 158,094 (36,825) 353,551 Segment net income $ 164,051 $ 110,182 $ 13,505 $ 287,738 As of September 30, 2023 Segment assets $ 18,935,452 $ 34,438,787 $ 14,915,219 $ 68,289,458 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Three Months Ended September 30, 2022 Net interest income before provision for credit losses $ 326,411 $ 222,996 $ 2,402 $ 551,809 Provision for credit losses 8,974 18,026 — 27,000 Noninterest income (loss) 30,819 48,641 (3,908) 75,552 Noninterest expense 104,005 81,386 30,582 215,973 Segment income (loss) before income taxes 244,251 172,225 (32,088) 384,388 Segment net income (loss) $ 173,982 $ 122,869 $ (1,512) $ 295,339 As of September 30, 2022 Segment assets $ 17,002,000 $ 32,836,381 $ 12,737,680 $ 62,576,061 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Nine Months Ended September 30, 2023 Net interest income before provision for credit losses $ 927,173 $ 742,108 $ 68,139 $ 1,737,420 Provision for credit losses 22,169 65,831 — 88,000 Noninterest income 78,254 129,809 7,298 215,361 Noninterest expense 327,476 263,137 141,637 732,250 Segment income (loss) before income taxes 655,782 542,949 (66,200) 1,132,531 Segment net income $ 463,151 $ 383,669 $ 75,388 $ 922,208 As of September 30, 2023 Segment assets $ 18,935,452 $ 34,438,787 $ 14,915,219 $ 68,289,458 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Nine Months Ended September 30, 2022 Net interest income (loss) before provision for credit losses $ 823,998 $ 662,037 $ (45,661) $ 1,440,374 Provision for credit losses 14,976 33,524 — 48,500 Noninterest income 84,402 145,750 3,587 233,739 Noninterest expense 294,395 235,804 72,084 602,283 Segment income (loss) before income taxes 599,029 538,459 (114,158) 1,023,330 Segment net income (loss) $ 426,695 $ 384,237 $ (19,612) $ 791,320 As of September 30, 2022 Segment assets $ 17,002,000 $ 32,836,381 $ 12,737,680 $ 62,576,061 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Sep. 30, 2023 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_4
Current Accounting Developments and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | $ 655,523 | $ 635,400 | $ 601,673 | $ 595,645 | $ 582,517 | $ 563,270 | $ 541,579 |
Retained earnings | $ (6,294,751) | (5,582,546) | |||||
Accounting Standards Update 2022-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | $ (6,000) | ||||||
Retained earnings | $ (4,300) |
Fair Value Measurement and Fa_3
Fair Value Measurement and Fair Value of Financial Instruments - Narrative (Details) | Sep. 30, 2023 |
Rayliant Global Advisors Limited | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership (percent) | 49.99% |
Fair Value Measurement and Fa_4
Fair Value Measurement and Fair Value of Financial Instruments - Financial Assets and Liabilities Measurement on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net: | ||
Total investments in qualified affordable housing partnerships, tax credit and other investments, net | $ 901,559 | $ 763,256 |
Derivative | ||
Derivative assets - Fair value | 862,316 | 755,328 |
Net derivative assets | 331,985 | 140,545 |
Derivative liabilities - Fair value | 948,387 | 887,264 |
Net derivative liabilities | 685,514 | 644,519 |
Fair Value, Measurements, Recurring | ||
Available-for-sale debt securities | ||
Fair Value | 6,039,837 | 6,034,993 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net: | ||
Equity securities | 23,601 | 23,954 |
Total investments in qualified affordable housing partnerships, tax credit and other investments, net | 23,601 | 23,954 |
Derivative | ||
Derivative assets - Fair value | 862,316 | 755,328 |
Netting adjustments | (530,331) | (614,783) |
Net derivative assets | 331,985 | 140,545 |
Derivative liabilities - Fair value | 948,387 | 887,264 |
Netting adjustments | (262,873) | (242,745) |
Net derivative liabilities | 685,514 | 644,519 |
Fair Value, Measurements, Recurring | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 624,087 | 440,283 |
Derivative liabilities - Fair value | 712,302 | 584,516 |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 100,377 | 53,109 |
Derivative liabilities - Fair value | 77,099 | 44,117 |
Fair Value, Measurements, Recurring | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 352 | 323 |
Derivative liabilities - Fair value | 15,119 | |
Fair Value, Measurements, Recurring | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 137,500 | 261,613 |
Derivative liabilities - Fair value | 143,855 | 258,608 |
Fair Value, Measurements, Recurring | Credit contracts | ||
Derivative | ||
Derivative liabilities - Fair value | 12 | 23 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 904,101 | 606,203 |
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 447,464 | 461,607 |
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 | 462,332 | 500,269 |
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 | 1,694,342 | 1,762,195 |
Fair Value, Measurements, Recurring | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 243,556 | 257,099 |
Fair Value, Measurements, Recurring | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 365,320 | 398,329 |
Fair Value, Measurements, Recurring | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 570,787 | 649,224 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 475,434 | 526,274 |
Fair Value, Measurements, Recurring | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 222,790 | 227,053 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 43,757 | 49,076 |
Fair Value, Measurements, Recurring | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 609,954 | 597,664 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Available-for-sale debt securities | ||
Fair Value | 904,101 | 606,203 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net: | ||
Equity securities | 19,447 | 19,777 |
Total investments in qualified affordable housing partnerships, tax credit and other investments, net | 19,447 | 19,777 |
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 |
Derivative liabilities - Fair value | 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) | Credit contracts | ||
Derivative | ||
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 | 904,101 | 606,203 |
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 | 5,135,736 | 5,428,790 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net: | ||
Equity securities | 4,154 | 4,177 |
Total investments in qualified affordable housing partnerships, tax credit and other investments, net | 4,154 | 4,177 |
Derivative | ||
Derivative assets - Fair value | 861,964 | 755,005 |
Netting adjustments | (530,331) | (614,783) |
Net derivative assets | 331,633 | 140,222 |
Derivative liabilities - Fair value | 933,268 | 887,264 |
Netting adjustments | (262,873) | (242,745) |
Net derivative liabilities | 670,395 | 644,519 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 624,087 | 440,283 |
Derivative liabilities - Fair value | 712,302 | 584,516 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 100,377 | 53,109 |
Derivative liabilities - Fair value | 77,099 | 44,117 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 137,500 | 261,613 |
Derivative liabilities - Fair value | 143,855 | 258,608 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Credit contracts | ||
Derivative | ||
Derivative liabilities - Fair value | 12 | 23 |
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 | 447,464 | 461,607 |
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 | 462,332 | 500,269 |
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 | 1,694,342 | 1,762,195 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 243,556 | 257,099 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 365,320 | 398,329 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 570,787 | 649,224 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 475,434 | 526,274 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 222,790 | 227,053 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 43,757 | 49,076 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 609,954 | 597,664 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net: | ||
Equity securities | 0 | 0 |
Total investments in qualified affordable housing partnerships, tax credit and other investments, net | 0 | 0 |
Derivative | ||
Derivative assets - Fair value | 352 | 323 |
Netting adjustments | 0 | 0 |
Net derivative assets | 352 | 323 |
Derivative liabilities - Fair value | 15,119 | 0 |
Netting adjustments | 0 | 0 |
Net derivative liabilities | 15,119 | 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 | 352 | 323 |
Derivative liabilities - Fair value | 15,119 | |
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) | Credit contracts | ||
Derivative | ||
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_5
Fair Value Measurement and Fair Value of Financial Instruments - Reconciliation of Assets and Liabilities Measured on Recurring Basis (Details) - Equity contracts - Level 3 - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative assets: | ||||
Beginning balance | $ 263 | $ 357 | $ 323 | $ 215 |
Total (losses) gains included in earnings | (3) | (12) | (63) | 39 |
Issuances | 92 | 0 | 92 | 91 |
Ending balance | 352 | 345 | 352 | 345 |
Derivative liabilities: | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Issuances | 15,119 | 0 | 15,119 | 0 |
Ending balance | $ 15,119 | $ 0 | $ 15,119 | $ 0 |
Fair Value Measurement and Fa_6
Fair Value Measurement and Fair Value of Financial Instruments - Quantitative Information for Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Assets | ||
Derivative assets - Fair value | $ 862,316 | $ 755,328 |
Derivative Liabilities | ||
Derivative liabilities - Fair value | 948,387 | 887,264 |
Fair Value, Measurements, Recurring | ||
Derivative Assets | ||
Derivative assets - Fair value | 862,316 | 755,328 |
Derivative Liabilities | ||
Derivative liabilities - Fair value | 948,387 | 887,264 |
Fair Value, Measurements, Nonrecurring | ||
Derivative Liabilities | ||
Loans held-for-investment, fair value disclosure | 35,133 | 72,614 |
Fair Value, Measurements, Nonrecurring | Tax credit investments | ||
Derivative Liabilities | ||
Assets, fair value disclosure | 1,038 | |
Level 3 | Fair Value, Measurements, Recurring | ||
Derivative Assets | ||
Derivative assets - Fair value | 352 | 323 |
Derivative Liabilities | ||
Derivative liabilities - Fair value | 15,119 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | ||
Derivative Liabilities | ||
Loans held-for-investment, fair value disclosure | 35,133 | 72,614 |
Level 3 | Fair Value, Measurements, Nonrecurring | Tax credit investments | ||
Derivative Liabilities | ||
Assets, fair value disclosure | 1,038 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Discounted cash flows | ||
Derivative Liabilities | ||
Loans held-for-investment, fair value disclosure | 23,322 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Fair value of collateral | ||
Derivative Liabilities | ||
Loans held-for-investment, fair value disclosure | 13,955 | 17,912 |
Level 3 | Fair Value, Measurements, Nonrecurring | Fair value of collateral | ||
Derivative Liabilities | ||
Loans held-for-investment, fair value disclosure | 6,134 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Individual analysis of each investment | Tax credit investments | ||
Derivative Liabilities | ||
Assets, fair value disclosure | 1,038 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Fair value of property | ||
Derivative Liabilities | ||
Loans held-for-investment, fair value disclosure | $ 15,044 | $ 31,380 |
Level 3 | Fair Value, Measurements, Nonrecurring | Selling cost | Fair value of property | ||
Derivative Liabilities | ||
Loans held-for-investment, measurement input | 8% | 8% |
Level 3 | Fair Value, Measurements, Nonrecurring | Minimum | Discount | Discounted cash flows | ||
Derivative Liabilities | ||
Loans held-for-investment, measurement input | 4% | |
Level 3 | Fair Value, Measurements, Nonrecurring | Minimum | Discount | Fair value of collateral | ||
Derivative Liabilities | ||
Loans held-for-investment, measurement input | 15% | 15% |
Level 3 | Fair Value, Measurements, Nonrecurring | Maximum | Discount | Discounted cash flows | ||
Derivative Liabilities | ||
Loans held-for-investment, measurement input | 6% | |
Level 3 | Fair Value, Measurements, Nonrecurring | Maximum | Discount | Fair value of collateral | ||
Derivative Liabilities | ||
Loans held-for-investment, measurement input | 75% | 75% |
Level 3 | Fair Value, Measurements, Nonrecurring | Weighted Average | Discount | Discounted cash flows | ||
Derivative Liabilities | ||
Loans held-for-investment, measurement input | 4% | |
Level 3 | Fair Value, Measurements, Nonrecurring | Weighted Average | Discount | Fair value of collateral | ||
Derivative Liabilities | ||
Loans held-for-investment, measurement input | 48% | 37% |
Level 3 | Fair Value, Measurements, Nonrecurring | Weighted Average | Selling cost | Fair value of property | ||
Derivative Liabilities | ||
Loans held-for-investment, measurement input | 8% | 8% |
Equity contracts | Fair Value, Measurements, Recurring | ||
Derivative Assets | ||
Derivative assets - Fair value | $ 352 | $ 323 |
Derivative Liabilities | ||
Derivative liabilities - Fair value | 15,119 | |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | ||
Derivative Assets | ||
Derivative assets - Fair value | 352 | $ 323 |
Derivative Liabilities | ||
Derivative liabilities - Fair value | $ 15,119 | |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | Liquidity discount | ||
Derivative Liabilities | ||
Measurement input | 47% | 47% |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | Payout % designated based on operating revenue and operating EBITDA of investee | ||
Derivative Liabilities | ||
Measurement input | 84% | |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | Minimum | Equity volatility | Black-Scholes option pricing model | ||
Derivative Liabilities | ||
Measurement input | 41% | 42% |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | Maximum | Equity volatility | Black-Scholes option pricing model | ||
Derivative Liabilities | ||
Measurement input | 51% | 60% |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | Weighted Average | Equity volatility | Black-Scholes option pricing model | ||
Derivative Liabilities | ||
Measurement input | 46% | 54% |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | Weighted Average | Liquidity discount | ||
Derivative Liabilities | ||
Measurement input | 47% | 47% |
Equity contracts | Level 3 | Fair Value, Measurements, Recurring | Weighted Average | Payout % designated based on operating revenue and operating EBITDA of investee | ||
Derivative Liabilities | ||
Measurement input | 84% |
Fair Value Measurement and Fa_7
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | $ 35,133 | $ 72,614 |
Tax credit investments | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 1,038 | |
Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 33,929 | 71,391 |
Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,204 | 1,223 |
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) | Tax credit investments | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 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) | Tax credit investments | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 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 | 35,133 | 72,614 |
Significant Unobservable Inputs (Level 3) | Tax credit investments | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 1,038 | |
Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 33,929 | 71,391 |
Significant Unobservable Inputs (Level 3) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,204 | 1,223 |
Commercial and industrial (“C&I”) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 22,788 | 40,011 |
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 | 22,788 | 40,011 |
CRE | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 31,380 | |
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 | |
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 | |
CRE | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 31,380 | |
Construction and land | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 11,141 | |
Construction and land | 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 | |
Construction and land | Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Construction and land | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 11,141 | |
HELOCs | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,204 | 1,223 |
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 | $ 1,204 | $ 1,223 |
Fair Value Measurement and Fa_8
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | $ (10,088) | $ (21,233) | $ (14,891) | $ (33,572) |
Loans held-for-investment | Commercial lending | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (10,047) | (21,314) | (14,850) | (33,738) |
Loans held-for-investment | Commercial lending | Commercial and industrial (“C&I”) | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 366 | (15,265) | (4,437) | (30,011) |
Loans held-for-investment | Commercial lending | CRE | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 0 | (118) | 0 | 2,212 |
Loans held-for-investment | Commercial lending | Multifamily residential | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 0 | (5,931) | 0 | (5,939) |
Loans held-for-investment | Commercial lending | Construction and land | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (10,413) | 0 | (10,413) | 0 |
Loans held-for-investment | Consumer lending | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (41) | 81 | (41) | 166 |
Loans held-for-investment | Consumer lending | HELOCs | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (41) | 81 | (41) | 166 |
Tax credit investments | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (790) | 0 | (1,577) | 0 |
Other nonperforming assets | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | $ 0 | $ 0 | $ 0 | $ (6,861) |
Fair Value Measurement and Fa_9
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and cash equivalents | $ 4,561,178 | $ 3,481,784 |
Interest-bearing deposits with banks | 17,213 | 139,021 |
Resale agreements | 785,000 | 792,192 |
HTM debt securities | 2,964,235 | 3,001,868 |
Restricted equity securities, at cost | 79,522 | 78,624 |
Financial liabilities: | ||
Repurchase agreements | 0 | 300,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 4,561,178 | 3,481,784 |
Interest-bearing deposits with banks | 17,213 | 139,021 |
Resale agreements | 785,000 | 792,192 |
HTM debt securities | 2,964,235 | 3,001,868 |
Restricted equity securities, at cost | 79,522 | 78,624 |
Loans held-for-sale | 4,762 | 25,644 |
Loans held-for-investment, net | 50,251,661 | 47,606,785 |
Mortgage servicing rights | 5,208 | 6,235 |
Accrued interest receivable | 317,881 | 263,430 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 38,435,954 | 42,637,316 |
Time deposits | 16,651,077 | 13,330,533 |
Repurchase agreements | 300,000 | |
Short-term borrowings | 4,500,000 | |
Long-term debt | 148,173 | 147,950 |
Accrued interest payable | 150,890 | 37,198 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 4,561,178 | 3,481,784 |
Interest-bearing deposits with banks | 17,213 | 139,021 |
Resale agreements | 672,250 | 693,656 |
HTM debt securities | 2,308,048 | 2,455,171 |
Restricted equity securities, at cost | 79,522 | 78,624 |
Loans held-for-sale | 4,762 | 25,644 |
Loans held-for-investment, net | 48,992,846 | 46,670,690 |
Mortgage servicing rights | 9,821 | 10,917 |
Accrued interest receivable | 317,881 | 263,430 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 38,435,954 | 42,637,316 |
Time deposits | 16,547,883 | 13,228,777 |
Repurchase agreements | 304,097 | |
Short-term borrowings | 4,500,000 | |
Long-term debt | 144,214 | 143,483 |
Accrued interest payable | 150,890 | 37,198 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 4,561,178 | 3,481,784 |
Interest-bearing deposits with banks | 0 | 0 |
Resale agreements | 0 | 0 |
HTM debt securities | 470,618 | 471,469 |
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 |
Repurchase agreements | 0 | |
Short-term borrowings | 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 | 17,213 | 139,021 |
Resale agreements | 672,250 | 693,656 |
HTM debt securities | 1,837,430 | 1,983,702 |
Restricted equity securities, at cost | 79,522 | 78,624 |
Loans held-for-sale | 4,762 | 25,644 |
Loans held-for-investment, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 317,881 | 263,430 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 38,435,954 | 42,637,316 |
Time deposits | 16,547,883 | 13,228,777 |
Repurchase agreements | 304,097 | |
Short-term borrowings | 4,500,000 | |
Long-term debt | 144,214 | 143,483 |
Accrued interest payable | 150,890 | 37,198 |
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 | 0 |
Restricted equity securities, at cost | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment, net | 48,992,846 | 46,670,690 |
Mortgage servicing rights | 9,821 | 10,917 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 0 | 0 |
Time deposits | 0 | 0 |
Repurchase agreements | 0 | |
Short-term borrowings | 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 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Offsetting Assets [Line Items] | |||||
Gross resale agreements | $ 785,000,000 | $ 785,000,000 | $ 760,000,000 | ||
Average yield | 2.73% | 2.41% | 2.55% | 1.96% | |
Loans purchased under agreements to resell | $ 0 | $ 0 | $ 32,200,000 | ||
Loans Purchased Under Resale Agreements | |||||
Offsetting Assets [Line Items] | |||||
Weighted-average yields | 3.87% | 7.27% | 2.10% |
Assets Purchased under Resale_4
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements - Repurchase Agreements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Amount of securities sold under repurchase agreements | ||||||
Gross repurchase agreements | $ 0 | $ 0 | $ 300,000,000 | |||
Extinguishment repurchase agreements, amount | $ 300,000,000 | |||||
Repurchase agreements’ extinguishment cost | $ 0 | $ 3,900,000 | $ 0 | |||
Average rate paid | 5.51% | 2.81% | 4.32% | 2.73% |
Assets Purchased under Resale_5
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements - Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets, Resale Agreements | ||
Gross Amounts of Recognized Assets | $ 785,000 | $ 792,192 |
Gross Amounts Offset on the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented on the Consolidated Balance Sheet | 785,000 | 792,192 |
Assets Purchased under Agreements to Resell Gross Amounts Not Offset [Abstract] | ||
Collateral Received | (687,327) | (701,790) |
Net Amount | 97,673 | 90,402 |
Liabilities, Repurchase Agreements | ||
Gross Amounts of Recognized Liabilities | 0 | 300,000 |
Gross Amounts Offset on the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheet | 0 | 300,000 |
Assets Sold under Agreements to Repurchase Gross Amounts Not Offset [Abstract] | ||
Collateral Pledged | 0 | (300,000) |
Net Amount | $ 0 | $ 0 |
Securities - Schedule of Debt S
Securities - Schedule of Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
AFS debt securities: | ||
Amortized Cost | $ 6,976,331 | $ 6,879,225 |
Gross Unrealized Gains | 138 | 498 |
Gross Unrealized Losses | (936,632) | (844,730) |
Fair Value | 6,039,837 | 6,034,993 |
HTM debt securities: | ||
Amortized Cost | 2,964,235 | 3,001,868 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (656,187) | (546,697) |
Fair Value | 2,308,048 | 2,455,171 |
Total debt securities | ||
Amortized Cost | 9,940,566 | 9,881,093 |
Gross Unrealized Gains | 138 | 498 |
Gross Unrealized Losses | (1,592,819) | (1,391,427) |
Fair Value | 8,347,885 | 8,490,164 |
U.S. Treasury securities | ||
AFS debt securities: | ||
Amortized Cost | 974,615 | 676,306 |
Gross Unrealized Gains | 48 | 0 |
Gross Unrealized Losses | (70,562) | (70,103) |
Fair Value | 904,101 | 606,203 |
HTM debt securities: | ||
Amortized Cost | 528,169 | 524,081 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (57,551) | (52,612) |
Fair Value | 470,618 | 471,469 |
U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
AFS debt securities: | ||
Amortized Cost | 512,712 | 517,806 |
Gross Unrealized Gains | 0 | 67 |
Gross Unrealized Losses | (65,248) | (56,266) |
Fair Value | 447,464 | 461,607 |
HTM debt securities: | ||
Amortized Cost | 1,001,298 | 998,972 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (249,007) | (209,560) |
Fair Value | 752,291 | 789,412 |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 545,086 | 577,392 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (82,754) | (77,123) |
Fair Value | 462,332 | 500,269 |
HTM debt securities: | ||
Amortized Cost | 494,787 | 506,965 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (112,623) | (98,566) |
Fair Value | 382,164 | 408,399 |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 1,983,284 | 2,011,054 |
Gross Unrealized Gains | 15 | 41 |
Gross Unrealized Losses | (288,957) | (248,900) |
Fair Value | 1,694,342 | 1,762,195 |
HTM debt securities: | ||
Amortized Cost | 750,888 | 782,141 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (183,488) | (148,230) |
Fair Value | 567,400 | 633,911 |
Municipal securities | ||
AFS debt securities: | ||
Amortized Cost | 301,408 | 303,884 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (57,852) | (46,788) |
Fair Value | 243,556 | 257,099 |
HTM debt securities: | ||
Amortized Cost | 189,093 | 189,709 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (53,518) | (37,729) |
Fair Value | 135,575 | 151,980 |
Non-agency commercial mortgage-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 418,451 | 447,512 |
Gross Unrealized Gains | 0 | 213 |
Gross Unrealized Losses | (53,131) | (49,396) |
Fair Value | 365,320 | 398,329 |
Non-agency residential mortgage-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 687,674 | 762,202 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (116,887) | (112,978) |
Fair Value | 570,787 | 649,224 |
Corporate debt securities | ||
AFS debt securities: | ||
Amortized Cost | 653,501 | 673,502 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (178,067) | (147,228) |
Fair Value | 475,434 | 526,274 |
Foreign government bonds | ||
AFS debt securities: | ||
Amortized Cost | 237,531 | 241,165 |
Gross Unrealized Gains | 75 | 174 |
Gross Unrealized Losses | (14,816) | (14,286) |
Fair Value | 222,790 | 227,053 |
Asset-backed securities | ||
AFS debt securities: | ||
Amortized Cost | 44,819 | 51,152 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,062) | (2,076) |
Fair Value | 43,757 | 49,076 |
Collateralized loan obligations (“CLOs”) | ||
AFS debt securities: | ||
Amortized Cost | 617,250 | 617,250 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7,296) | (19,586) |
Fair Value | $ 609,954 | $ 597,664 |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) security | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
AFS and HTM, accrued interest | $ 42,600,000 | $ 42,600,000 | $ 41,800,000 | ||
Number of available-for-sale debt securities in an unrealized loss position | security | 567 | 567 | 559 | ||
Debt Securities, AFS, allowance for credit loss | $ 0 | $ 0 | $ 0 | ||
Provision (reversal of provision) for credit losses | 0 | $ 0 | 0 | $ 0 | |
HTM securities allowance for credit loss | 0 | 0 | 0 | ||
Asset Pledged as Collateral | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
AFS and HTM debt securities carrying value | $ 7,040,000,000 | $ 7,040,000,000 | $ 794,200,000 | ||
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 | 269 | 269 | 263 | ||
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 | 99 | 99 | 100 | ||
Corporate debt 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 | 66 | 66 | 68 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | $ 382,537 | $ 1,451,466 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (2,011) | (104,682) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 5,327,754 | 4,332,275 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (934,621) | (740,048) |
Available-for-sale debt securities fair value, Total | 5,710,291 | 5,783,741 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (936,632) | (844,730) |
U.S. Treasury securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 0 | 131,843 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | 0 | (8,761) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 605,730 | 474,360 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (70,562) | (61,342) |
Available-for-sale debt securities fair value, Total | 605,730 | 606,203 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (70,562) | (70,103) |
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 | 199,139 | 97,403 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (861) | (6,902) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 248,325 | 214,136 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (64,387) | (49,364) |
Available-for-sale debt securities fair value, Total | 447,464 | 311,539 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (65,248) | (56,266) |
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 | 4,434 | 252,144 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (96) | (30,029) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 457,898 | 248,125 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (82,658) | (47,094) |
Available-for-sale debt securities fair value, Total | 462,332 | 500,269 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (82,754) | (77,123) |
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 | 63,660 | 307,536 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (517) | (20,346) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 1,627,451 | 1,448,658 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (288,440) | (228,554) |
Available-for-sale debt securities fair value, Total | 1,691,111 | 1,756,194 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (288,957) | (248,900) |
Municipal securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 5,891 | 95,655 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (288) | (10,194) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 237,665 | 159,439 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (57,564) | (36,594) |
Available-for-sale debt securities fair value, Total | 243,556 | 255,094 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (57,852) | (46,788) |
Non-agency commercial mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 0 | 106,184 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | 0 | (3,309) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 365,320 | 282,301 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (53,131) | (46,087) |
Available-for-sale debt securities fair value, Total | 365,320 | 388,485 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (53,131) | (49,396) |
Non-agency residential mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 0 | 22,715 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | 0 | (1,546) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 570,787 | 626,509 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (116,887) | (111,432) |
Available-for-sale debt securities fair value, Total | 570,787 | 649,224 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (116,887) | (112,978) |
Corporate debt securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 0 | 173,595 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | 0 | (17,907) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 475,434 | 352,679 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (178,067) | (129,321) |
Available-for-sale debt securities fair value, Total | 475,434 | 526,274 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (178,067) | (147,228) |
Foreign government bonds | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 109,413 | 107,576 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (249) | (429) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 85,433 | 36,143 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (14,567) | (13,857) |
Available-for-sale debt securities fair value, Total | 194,846 | 143,719 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (14,816) | (14,286) |
Asset-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 0 | 12,450 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | 0 | (524) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 43,757 | 36,626 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (1,062) | (1,552) |
Available-for-sale debt securities fair value, Total | 43,757 | 49,076 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (1,062) | (2,076) |
Collateralized loan obligations (“CLOs”) | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 0 | 144,365 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | 0 | (4,735) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 609,954 | 453,299 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (7,296) | (14,851) |
Available-for-sale debt securities fair value, Total | 609,954 | 597,664 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | $ (7,296) | $ (19,586) |
Securities - Gross Realized Gai
Securities - Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains from sales | $ 0 | $ 0 | $ 0 | $ 1,306 |
Impairment write-off | 0 | 0 | 10,000 | 0 |
Related tax expense (benefit) | $ 0 | $ 0 | $ (2,956) | $ 386 |
Securities - Composition of Int
Securities - Composition of Interest Income on Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Taxable interest | $ 63,877 | $ 46,172 | $ 189,065 | $ 125,626 |
Nontaxable interest | 5,901 | 4,920 | 15,614 | 14,309 |
Total interest income on debt securities | $ 69,778 | $ 51,092 | $ 204,679 | $ 139,935 |
Securities - Scheduled Contract
Securities - Scheduled Contractual Maturities of AFS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Within One Year | $ 583,428 | |
After One Year through Five Years | 1,048,858 | |
After Five Years through Ten Years | 986,581 | |
After Ten Years | 4,357,464 | |
Amortized Cost | 6,976,331 | $ 6,879,225 |
Fair value | ||
Within One Year | 581,600 | |
After One Year through Five Years | 964,501 | |
After Five Years through Ten Years | 874,214 | |
After Ten Years | 3,619,522 | |
Total | $ 6,039,837 | |
Weighted Average Yield | ||
Within One Year | 5.32% | |
After One Year through Five Years | 1.86% | |
After Five Years through Ten Years | 4.27% | |
After Ten Years | 3.40% | |
Total | 3.45% | |
U.S. Treasury securities | ||
Amortized cost | ||
Within One Year | $ 298,323 | |
After One Year through Five Years | 676,292 | |
After Five Years through Ten Years | 0 | |
After Ten Years | 0 | |
Amortized Cost | 974,615 | |
Fair value | ||
Within One Year | 298,371 | |
After One Year through Five Years | 605,730 | |
After Five Years through Ten Years | 0 | |
After Ten Years | 0 | |
Total | $ 904,101 | |
Weighted Average Yield | ||
Within One Year | 5.44% | |
After One Year through Five Years | 1.20% | |
After Five Years through Ten Years | 0% | |
After Ten Years | 0% | |
Total | 2.50% | |
U.S. government-sponsored enterprises debt securities | ||
Amortized cost | ||
Within One Year | $ 150,000 | |
After One Year through Five Years | 96,472 | |
After Five Years through Ten Years | 103,171 | |
After Ten Years | 163,069 | |
Amortized Cost | 512,712 | |
Fair value | ||
Within One Year | 149,616 | |
After One Year through Five Years | 91,343 | |
After Five Years through Ten Years | 82,252 | |
After Ten Years | 124,253 | |
Total | $ 447,464 | |
Weighted Average Yield | ||
Within One Year | 4.98% | |
After One Year through Five Years | 3.08% | |
After Five Years through Ten Years | 1.39% | |
After Ten Years | 2.18% | |
Total | 3.01% | |
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 | 42,260 | |
After Five Years through Ten Years | 144,846 | |
After Ten Years | 2,341,264 | |
Amortized Cost | 2,528,370 | |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 39,718 | |
After Five Years through Ten Years | 128,933 | |
After Ten Years | 1,988,023 | |
Total | $ 2,156,674 | |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 3.16% | |
After Five Years through Ten Years | 2.73% | |
After Ten Years | 3.68% | |
Total | 3.62% | |
Municipal securities | ||
Amortized cost | ||
Within One Year | $ 2,400 | |
After One Year through Five Years | 36,850 | |
After Five Years through Ten Years | 9,007 | |
After Ten Years | 253,151 | |
Amortized Cost | 301,408 | |
Fair value | ||
Within One Year | 2,383 | |
After One Year through Five Years | 33,794 | |
After Five Years through Ten Years | 7,596 | |
After Ten Years | 199,783 | |
Total | $ 243,556 | |
Weighted Average Yield | ||
Within One Year | 3.13% | |
After One Year through Five Years | 2.34% | |
After Five Years through Ten Years | 2.87% | |
After Ten Years | 2.24% | |
Total | 2.28% | |
Non-agency mortgage-backed securities | ||
Amortized cost | ||
Within One Year | $ 99,830 | |
After One Year through Five Years | 92,328 | |
After Five Years through Ten Years | 11,056 | |
After Ten Years | 902,911 | |
Amortized Cost | 1,106,125 | |
Fair value | ||
Within One Year | 98,420 | |
After One Year through Five Years | 89,370 | |
After Five Years through Ten Years | 10,793 | |
After Ten Years | 737,524 | |
Total | $ 936,107 | |
Weighted Average Yield | ||
Within One Year | 6.27% | |
After One Year through Five Years | 4.16% | |
After Five Years through Ten Years | 0.80% | |
After Ten Years | 2.58% | |
Total | 3.02% | |
Corporate debt securities | ||
Amortized cost | ||
Within One Year | $ 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 349,501 | |
After Ten Years | 304,000 | |
Amortized Cost | 653,501 | |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 280,812 | |
After Ten Years | 194,622 | |
Total | $ 475,434 | |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 0% | |
After Five Years through Ten Years | 3.48% | |
After Ten Years | 1.97% | |
Total | 2.78% | |
Foreign government bonds | ||
Amortized cost | ||
Within One Year | $ 32,875 | |
After One Year through Five Years | 104,656 | |
After Five Years through Ten Years | 50,000 | |
After Ten Years | 50,000 | |
Amortized Cost | 237,531 | |
Fair value | ||
Within One Year | 32,810 | |
After One Year through Five Years | 104,546 | |
After Five Years through Ten Years | 49,609 | |
After Ten Years | 35,825 | |
Total | $ 222,790 | |
Weighted Average Yield | ||
Within One Year | 3.02% | |
After One Year through Five Years | 2.28% | |
After Five Years through Ten Years | 5.71% | |
After Ten Years | 1.50% | |
Total | 2.94% | |
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 | 44,819 | |
Amortized Cost | 44,819 | |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 0 | |
After Ten Years | 43,757 | |
Total | $ 43,757 | |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 0% | |
After Five Years through Ten Years | 0% | |
After Ten Years | 6.01% | |
Total | 6.01% | |
Collateralized loan obligations (“CLOs”) | ||
Amortized cost | ||
Within One Year | $ 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 319,000 | |
After Ten Years | 298,250 | |
Amortized Cost | 617,250 | |
Fair value | ||
Within One Year | 0 | |
After One Year through Five Years | 0 | |
After Five Years through Ten Years | 314,219 | |
After Ten Years | 295,735 | |
Total | $ 609,954 | |
Weighted Average Yield | ||
Within One Year | 0% | |
After One Year through Five Years | 0% | |
After Five Years through Ten Years | 6.71% | |
After Ten Years | 6.76% | |
Total | 6.73% |
Securities - Scheduled Contra_2
Securities - Scheduled Contractual Maturities of HTM Debt Securities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Amortized cost | |
Within One Year | $ 0 |
After One Year through Five Years | 528,169 |
After Five Years through Ten Years | 423,862 |
After Ten Years | 2,012,204 |
Total | 2,964,235 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 470,618 |
After Five Years through Ten Years | 341,533 |
After Ten Years | 1,495,897 |
Total | $ 2,308,048 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 1.05% |
After Five Years through Ten Years | 1.84% |
After Ten Years | 1.78% |
Total | 1.66% |
U.S. Treasury securities | |
Amortized cost | |
Within One Year | $ 0 |
After One Year through Five Years | 528,169 |
After Five Years through Ten Years | 0 |
After Ten Years | 0 |
Total | 528,169 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 470,618 |
After Five Years through Ten Years | 0 |
After Ten Years | 0 |
Total | $ 470,618 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 1.05% |
After Five Years through Ten Years | 0% |
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 | 328,870 |
After Ten Years | 672,428 |
Total | 1,001,298 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 265,107 |
After Ten Years | 487,184 |
Total | $ 752,291 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 0% |
After Five Years through Ten Years | 1.92% |
After Ten Years | 1.89% |
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 | 94,992 |
After Ten Years | 1,150,683 |
Total | 1,245,675 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 76,426 |
After Ten Years | 873,138 |
Total | $ 949,564 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 0% |
After Five Years through Ten Years | 1.56% |
After Ten Years | 1.68% |
Total | 1.67% |
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 | 189,093 |
Total | 189,093 |
Fair value | |
Within One Year | 0 |
After One Year through Five Years | 0 |
After Five Years through Ten Years | 0 |
After Ten Years | 135,575 |
Total | $ 135,575 |
Weighted Average Yield | |
Within One Year | 0% |
After One Year through Five Years | 0% |
After Five Years through Ten Years | 0% |
After Ten Years | 1.99% |
Total | 1.99% |
Securities - Restricted Equity
Securities - Restricted Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Reserve Bank of San Francisco (“FRBSF”) stock | $ 62,272 | $ 61,374 |
FHLB stock | 17,250 | 17,250 |
Total restricted equity securities | $ 79,522 | $ 78,624 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Gross amounts recognized | $ 862,316,000 | $ 755,328,000 |
Derivative liabilities - Fair value | 948,387,000 | 887,264,000 |
Derivative instruments designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross amounts recognized | 4,997,000 | 19,045,000 |
Derivative liabilities - Fair value | 96,382,000 | 19,687,000 |
Notional amount | 5,081,480,000 | 3,534,832,000 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross amounts recognized | 857,319,000 | 736,283,000 |
Derivative liabilities - Fair value | 852,005,000 | 867,577,000 |
Notional amount | 22,804,812,000 | 20,056,255,000 |
Interest rate contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross amounts recognized | 622,799,000 | 426,828,000 |
Derivative liabilities - Fair value | 615,920,000 | 564,829,000 |
Notional amount | 17,456,102,000 | 16,932,414,000 |
Interest rate contracts | Derivatives not designated as hedging instruments | LCH | ||
Derivative [Line Items] | ||
Gross amounts recognized | 16,000,000 | 167,200,000 |
Derivative liabilities - Fair value | 65,700,000 | 81,300,000 |
Interest rate contracts | Cash Flow Hedging | Derivative instruments designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross amounts recognized | 1,288,000 | 13,455,000 |
Derivative liabilities - Fair value | 96,382,000 | 19,687,000 |
Notional amount | 5,000,000,000 | 3,450,000,000 |
Net unrealized losses, net of tax, recorded in AOCI expected to be reclassified into earnings during next 12 months | 66,200,000 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross amounts recognized | 96,668,000 | 47,519,000 |
Derivative liabilities - Fair value | 77,099,000 | 44,117,000 |
Notional amount | $ 5,205,007,000 | $ 2,982,891,000 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Maximum | ||
Derivative [Line Items] | ||
Original maturity (in years) | 1 year | 1 year |
Credit contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross amounts recognized | $ 0 | $ 0 |
Derivative liabilities - Fair value | 12,000 | 23,000 |
Notional amount | $ 143,703,000 | $ 140,950,000 |
Credit contracts | Derivatives not designated as hedging instruments | RPAs | ||
Derivative [Line Items] | ||
Weighted average remaining maturity of outstanding RPAs | 2 years 6 months | 2 years 4 months 24 days |
Credit contracts | Derivatives not designated as hedging instruments | Long | ||
Derivative [Line Items] | ||
Notional amount | $ 25,000,000 | $ 0 |
Credit-risk-related contingent features | ||
Derivative [Line Items] | ||
Aggregate fair value of derivative instruments in net liability position | 2,200,000 | 2,600,000 |
Collateral posted | 2,200,000 | $ 1,100,000 |
Commercial Banking | Interest rate contracts | Cash Flow Hedging | Derivative instruments designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | $ 5,000,000,000 |
Derivatives - Notional and Fair
Derivatives - Notional and Fair Values (Details) MMBTU in Thousands, Boe in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) company shares | Sep. 30, 2023 USD ($) MMBTU Boe company shares | Dec. 31, 2022 USD ($) Boe MMBTU company | |
Derivative Assets | |||
Derivative assets - Fair value | $ 862,316,000 | $ 862,316,000 | $ 755,328,000 |
Less: Master Netting Arrangements | (260,648,000) | (260,648,000) | (242,745,000) |
Less: Cash collateral received | (269,683,000) | (269,683,000) | (372,038,000) |
Net derivative assets | 331,985,000 | 331,985,000 | 140,545,000 |
Derivative Liabilities | |||
Gross amounts recognized | 948,387,000 | 948,387,000 | 887,264,000 |
Less: Master Netting Arrangements | (260,648,000) | (260,648,000) | (242,745,000) |
Amount used to offset against derivative liabilities | (2,225,000) | (2,225,000) | 0 |
Net derivative liabilities | $ 685,514,000 | $ 685,514,000 | $ 644,519,000 |
Rayliant Global Advisors Limited | |||
Derivative Liabilities | |||
Asset Acquisition, Contingent Consideration, Number of Shares | shares | 349,138 | ||
Performance-Based RSUs | |||
Derivative Liabilities | |||
Vested (in shares) | shares | 152,558 | ||
Crude oil | |||
Derivative Liabilities | |||
Derivative, nonmonetary notional amount, energy measure | Boe | 20,672 | 12,005 | |
Natural gas | |||
Derivative Liabilities | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 363,020 | 247,704 | |
Derivative instruments designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | $ 5,081,480,000 | $ 5,081,480,000 | $ 3,534,832,000 |
Derivative Assets | |||
Derivative assets - Fair value | 4,997,000 | 4,997,000 | 19,045,000 |
Derivative Liabilities | |||
Gross amounts recognized | 96,382,000 | 96,382,000 | 19,687,000 |
Derivatives not designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | 22,804,812,000 | 22,804,812,000 | 20,056,255,000 |
Derivative Assets | |||
Derivative assets - Fair value | 857,319,000 | 857,319,000 | 736,283,000 |
Derivative Liabilities | |||
Gross amounts recognized | 852,005,000 | 852,005,000 | 867,577,000 |
Interest rate contracts | Derivatives not designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | 17,456,102,000 | 17,456,102,000 | 16,932,414,000 |
Derivative Assets | |||
Derivative assets - Fair value | 622,799,000 | 622,799,000 | 426,828,000 |
Derivative Liabilities | |||
Gross amounts recognized | 615,920,000 | 615,920,000 | 564,829,000 |
Interest rate contracts | Cash Flow Hedging | Derivative instruments designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | 5,000,000,000 | 5,000,000,000 | 3,450,000,000 |
Derivative Assets | |||
Derivative assets - Fair value | 1,288,000 | 1,288,000 | 13,455,000 |
Derivative Liabilities | |||
Gross amounts recognized | 96,382,000 | 96,382,000 | 19,687,000 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | 5,205,007,000 | 5,205,007,000 | 2,982,891,000 |
Derivative Assets | |||
Derivative assets - Fair value | 96,668,000 | 96,668,000 | 47,519,000 |
Derivative Liabilities | |||
Gross amounts recognized | 77,099,000 | 77,099,000 | 44,117,000 |
Foreign exchange contracts | Net Investment Hedging | Derivative instruments designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | 81,480,000 | 81,480,000 | 84,832,000 |
Derivative Assets | |||
Derivative assets - Fair value | 3,709,000 | 3,709,000 | 5,590,000 |
Derivative Liabilities | |||
Gross amounts recognized | 0 | 0 | 0 |
Commodity contracts | Derivatives not designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | 0 | 0 | 0 |
Derivative Assets | |||
Derivative assets - Fair value | 137,500,000 | 137,500,000 | 261,613,000 |
Derivative Liabilities | |||
Gross amounts recognized | 143,855,000 | 143,855,000 | 258,608,000 |
Credit contracts | Derivatives not designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | 143,703,000 | 143,703,000 | 140,950,000 |
Derivative Assets | |||
Derivative assets - Fair value | 0 | 0 | 0 |
Derivative Liabilities | |||
Gross amounts recognized | 12,000 | 12,000 | 23,000 |
Equity contracts | Derivatives not designated as hedging instruments | |||
Derivative Instruments | |||
Notional amount | 0 | 0 | 0 |
Derivative Assets | |||
Derivative assets - Fair value | 352,000 | 352,000 | 323,000 |
Derivative Liabilities | |||
Gross amounts recognized | $ 15,119,000 | $ 15,119,000 | $ 0 |
Equity, Public Companies | Derivatives not designated as hedging instruments | |||
Derivative Liabilities | |||
Number of companies that issued the equity (issuers portion only) | company | 1 | 1 | 1 |
Equity, Private Companies | Derivatives not designated as hedging instruments | |||
Derivative Liabilities | |||
Number of companies that issued the equity (issuers portion only) | company | 13 | 13 | 13 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest rate contracts | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Losses recognized in AOCI: | $ (62,715) | $ (48,325) | $ (129,329) | $ (88,771) |
Gains (losses) reclassified from AOCI into earnings: | (24,059) | (1,619) | (54,955) | 1,601 |
Interest rate contracts | Cash Flow Hedging | Interest expense (for cash flow hedges on borrowings) | ||||
Derivative [Line Items] | ||||
Gains (losses) reclassified from AOCI into earnings: | 0 | 1,251 | 696 | 1,385 |
Interest rate contracts | Cash Flow Hedging | Interest and dividend income (for cash flow hedges on loans) | ||||
Derivative [Line Items] | ||||
Gains (losses) reclassified from AOCI into earnings: | (24,059) | (2,870) | (57,265) | 216 |
Interest rate contracts | Cash Flow Hedging | Noninterest income | ||||
Derivative [Line Items] | ||||
Gains (losses) reclassified from AOCI into earnings: | 0 | 0 | 1,614 | 0 |
Foreign exchange contracts | Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Gains recognized in AOCI | $ 63 | $ 4,343 | $ 2,886 | $ 6,027 |
Derivatives - Derivatives Not D
Derivatives - Derivatives Not Designated as Hedging Instruments (Details) MMBTU in Thousands, Boe in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) MMBTU Boe | Dec. 31, 2022 USD ($) MMBTU Boe | |
Derivative [Line Items] | ||
Gross amounts recognized | $ 862,316 | $ 755,328 |
Derivative liabilities - Fair value | $ 948,387 | $ 887,264 |
Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 20,672 | 12,005 |
Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 363,020 | 247,704 |
Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | $ 11,383,158 | $ 10,158,784 |
Gross amounts recognized | 33,979 | 27,146 |
Derivative liabilities - Fair value | 662,616 | 592,060 |
Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 11,277,951 | 9,756,521 |
Gross amounts recognized | 685,488 | 447,201 |
Derivative liabilities - Fair value | 30,403 | 16,886 |
Interest rate contracts | Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | 8,684,404 | 8,420,422 |
Gross amounts recognized | 691 | 1,438 |
Derivative liabilities - Fair value | 614,445 | 561,547 |
Interest rate contracts | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 8,771,698 | 8,511,992 |
Gross amounts recognized | 622,108 | 425,390 |
Derivative liabilities - Fair value | 1,475 | 3,282 |
Interest rate contracts | Swaps | Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | 6,890,450 | 6,656,491 |
Gross amounts recognized | 691 | 1,438 |
Derivative liabilities - Fair value | 584,962 | 521,719 |
Interest rate contracts | Swaps | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 6,916,364 | 6,683,828 |
Gross amounts recognized | 592,177 | 384,201 |
Derivative liabilities - Fair value | 1,119 | 2,047 |
Interest rate contracts | Written options | Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | 1,486,958 | 1,548,158 |
Gross amounts recognized | 0 | 0 |
Derivative liabilities - Fair value | 21,864 | 30,904 |
Interest rate contracts | Written options | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 30,690 | 32,117 |
Gross amounts recognized | 0 | 0 |
Derivative liabilities - Fair value | 356 | 1,235 |
Interest rate contracts | Collars and corridors | Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | 306,996 | 215,773 |
Gross amounts recognized | 0 | 0 |
Derivative liabilities - Fair value | 7,619 | 8,924 |
Interest rate contracts | Collars and corridors | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 306,996 | 215,772 |
Gross amounts recognized | 7,646 | 8,956 |
Derivative liabilities - Fair value | 0 | 0 |
Interest rate contracts | Purchased options | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 1,517,648 | 1,580,275 |
Gross amounts recognized | 22,285 | 32,233 |
Derivative liabilities - Fair value | 0 | 0 |
Foreign exchange contracts | Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | 2,698,754 | 1,738,362 |
Gross amounts recognized | 33,288 | 25,708 |
Derivative liabilities - Fair value | 48,171 | 30,513 |
Foreign exchange contracts | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 2,506,253 | 1,244,529 |
Gross amounts recognized | 63,380 | 21,811 |
Derivative liabilities - Fair value | 28,928 | 13,604 |
Foreign exchange contracts | Swaps | Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | 2,494,517 | 623,143 |
Gross amounts recognized | 16,282 | 6,629 |
Derivative liabilities - Fair value | 23,687 | 12,178 |
Foreign exchange contracts | Swaps | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 1,303,755 | 1,044,900 |
Gross amounts recognized | 62,928 | 18,516 |
Derivative liabilities - Fair value | 22,985 | 11,447 |
Foreign exchange contracts | Forwards and spot | Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | 62,237 | 993,588 |
Gross amounts recognized | 11,376 | 17,009 |
Derivative liabilities - Fair value | 24,484 | 18,090 |
Foreign exchange contracts | Forwards and spot | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 1,060,498 | 77,998 |
Gross amounts recognized | 452 | 3,050 |
Derivative liabilities - Fair value | 313 | 87 |
Foreign exchange contracts | Other | Customer-related positions: | ||
Derivative [Line Items] | ||
Notional amount | 142,000 | 121,631 |
Gross amounts recognized | 5,630 | 2,070 |
Derivative liabilities - Fair value | 0 | 245 |
Foreign exchange contracts | Other | Other economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | 142,000 | 121,631 |
Gross amounts recognized | 0 | 245 |
Derivative liabilities - Fair value | 5,630 | 2,070 |
Commodity contracts | Customer-related positions: | ||
Derivative [Line Items] | ||
Gross amounts recognized | 85,388 | 171,082 |
Derivative liabilities - Fair value | $ 68,964 | $ 100,333 |
Commodity contracts | Customer-related positions: | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 10,320 | 5,476 |
Gross amounts recognized | $ 52,095 | $ 56,551 |
Derivative liabilities - Fair value | $ 1,836 | $ 8,808 |
Commodity contracts | Customer-related positions: | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 182,658 | 124,662 |
Gross amounts recognized | $ 33,293 | $ 114,531 |
Derivative liabilities - Fair value | 67,128 | 91,525 |
Commodity contracts | Other economic hedges: | ||
Derivative [Line Items] | ||
Gross amounts recognized | 52,112 | 90,531 |
Derivative liabilities - Fair value | $ 74,891 | $ 158,275 |
Commodity contracts | Other economic hedges: | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 10,352 | 6,529 |
Gross amounts recognized | $ 2,165 | $ 8,313 |
Derivative liabilities - Fair value | $ 43,184 | $ 49,432 |
Commodity contracts | Other economic hedges: | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 180,363 | 123,042 |
Gross amounts recognized | $ 49,947 | $ 82,218 |
Derivative liabilities - Fair value | $ 31,707 | $ 108,843 |
Commodity contracts | Swaps | Customer-related positions: | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 3,958 | 2,465 |
Gross amounts recognized | $ 27,543 | $ 39,955 |
Derivative liabilities - Fair value | $ 1,717 | $ 6,178 |
Commodity contracts | Swaps | Customer-related positions: | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 129,940 | 92,590 |
Gross amounts recognized | $ 32,428 | $ 112,314 |
Derivative liabilities - Fair value | $ 55,387 | $ 73,208 |
Commodity contracts | Swaps | Other economic hedges: | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 3,990 | 2,587 |
Gross amounts recognized | $ 2,165 | $ 6,935 |
Derivative liabilities - Fair value | $ 24,403 | $ 36,060 |
Commodity contracts | Swaps | Other economic hedges: | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 129,405 | 91,900 |
Gross amounts recognized | $ 42,804 | $ 69,767 |
Derivative liabilities - Fair value | $ 31,289 | $ 106,883 |
Commodity contracts | Written options | Customer-related positions: | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 0 | 0 |
Gross amounts recognized | $ 0 | $ 558 |
Derivative liabilities - Fair value | $ 0 | $ 0 |
Commodity contracts | Written options | Customer-related positions: | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 1,955 | 0 |
Gross amounts recognized | $ 0 | $ 0 |
Derivative liabilities - Fair value | $ 206 | $ 0 |
Commodity contracts | Purchased options | Other economic hedges: | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 0 | 0 |
Gross amounts recognized | $ 0 | $ 0 |
Derivative liabilities - Fair value | $ 0 | $ 516 |
Commodity contracts | Purchased options | Other economic hedges: | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 1,955 | 0 |
Gross amounts recognized | $ 206 | $ 0 |
Derivative liabilities - Fair value | $ 0 | $ 0 |
Commodity contracts | Collars | Customer-related positions: | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 6,362 | 3,011 |
Gross amounts recognized | $ 24,552 | $ 16,038 |
Derivative liabilities - Fair value | $ 119 | $ 2,630 |
Commodity contracts | Collars | Customer-related positions: | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 50,763 | 32,072 |
Gross amounts recognized | $ 865 | $ 2,217 |
Derivative liabilities - Fair value | $ 11,535 | $ 18,317 |
Commodity contracts | Collars | Other economic hedges: | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 6,362 | 3,942 |
Gross amounts recognized | $ 0 | $ 1,378 |
Derivative liabilities - Fair value | $ 18,781 | $ 12,856 |
Commodity contracts | Collars | Other economic hedges: | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 49,003 | 31,142 |
Gross amounts recognized | $ 6,937 | $ 12,451 |
Derivative liabilities - Fair value | $ 418 | $ 1,960 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | $ 12,670 | $ 8,582 | $ 41,862 | $ 25,463 |
Interest rate contracts | Interest rate contracts and other derivative income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 5,283 | 4,870 | 4,022 | 18,439 |
Foreign exchange contracts | Foreign exchange income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 7,267 | 3,831 | 37,607 | 6,596 |
Credit contracts | Interest rate contracts and other derivative income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 4 | 50 | 11 | 114 |
Equity contracts | Lending fees | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 89 | (13) | 29 | 175 |
Commodity contracts | Interest rate contracts and other derivative income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | $ 27 | $ (156) | $ 193 | $ 139 |
Derivatives - Offsetting of Der
Derivatives - Offsetting of Derivatives (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative assets | ||
Derivative assets - Fair value | $ 862,316,000 | $ 755,328,000 |
Less: Master netting agreements | (260,648,000) | (242,745,000) |
Less: Cash collateral received | (269,683,000) | (372,038,000) |
Net derivative assets | 331,985,000 | 140,545,000 |
Less: Security Collateral Received | (280,043,000) | (60,567,000) |
Net Amount | 51,942,000 | 79,978,000 |
Contracts not subject to master netting arrangements, gross amounts recognized | 1,800,000 | 2,100,000 |
Derivative, cash collateral received, including amount offset by fair value assets, and excess cash amount | (275,700,000) | (384,900,000) |
Amount used to offset against derivative assets | (269,683,000) | (372,038,000) |
Derivative liabilities | ||
Gross amounts recognized | 948,387,000 | 887,264,000 |
Less: Master netting agreements | (260,648,000) | (242,745,000) |
Less: Cash collateral received | (2,225,000) | 0 |
Net derivative liabilities | 685,514,000 | 644,519,000 |
Less: Security Collateral Pledged | 0 | (38,438,000) |
Net Amount | 685,514,000 | 606,081,000 |
Contracts not subject to master netting arrangements, gross amounts recognized | 16,200,000 | 566,000 |
Derivative, cash collateral posted against derivative liabilities, including amount offset the derivative fair value liabilities, and excess cash amount | 3,100,000 | 490,000 |
Amount used to offset against derivative liabilities | $ (2,225,000) | $ 0 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Credit Losses - Composition of Loans Held-for-Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | $ 50,907,184 | $ 48,202,430 | |||||
Allowance for loan losses | (655,523) | $ (635,400) | $ (601,673) | (595,645) | $ (582,517) | $ (563,270) | $ (541,579) |
Loans held-for-investment, net | 50,251,661 | 47,606,785 | |||||
Net deferred loan fees and net unamortized premiums | (72,000) | (70,400) | |||||
Commercial lending | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 36,229,707 | 34,780,453 | |||||
Commercial lending | Commercial and industrial (“C&I”) | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 15,864,042 | 15,711,095 | |||||
Allowance for loan losses | (383,677) | (375,333) | (377,383) | (371,749) | (363,282) | (338,252) | |
Commercial lending | CRE | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 14,667,378 | 13,857,870 | |||||
Allowance for loan losses | (178,040) | (168,505) | (150,201) | (145,301) | (140,245) | (150,940) | |
Commercial lending | Real estate loan | Multifamily residential | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 4,900,097 | 4,573,068 | |||||
Allowance for loan losses | (24,162) | (22,938) | (23,379) | (25,680) | (26,552) | (14,400) | |
Commercial lending | Construction and land | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 798,190 | 638,420 | |||||
Allowance for loan losses | (9,216) | (11,325) | (9,109) | (7,506) | (6,682) | (15,468) | |
Commercial lending | Total CRE | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 20,365,665 | 19,069,358 | |||||
Consumer lending | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 14,677,477 | 13,421,977 | |||||
Consumer lending | Real estate loan | Single-family residential | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 12,836,558 | 11,223,027 | |||||
Allowance for loan losses | (54,930) | (51,513) | (35,565) | (27,263) | (21,840) | (17,160) | |
Consumer lending | HELOCs | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 1,776,665 | 2,122,655 | |||||
Allowance for loan losses | (3,795) | (4,526) | (4,476) | (3,324) | (3,220) | (3,435) | |
Consumer lending | Total residential mortgage | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 14,613,223 | 13,345,682 | |||||
Consumer lending | Other consumer | |||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||
Loans held-for-investment | 64,254 | $ 76,295 | |||||
Allowance for loan losses | $ (1,703) | $ (1,260) | $ (1,560) | $ (1,694) | $ (1,449) | $ (1,924) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Credit Losses - Composition of Loans Held-for-Investment- Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Accrued interest receivable | $ 249,300 | $ 208,400 |
Total | 50,907,184 | 48,202,430 |
Asset Pledged as Collateral | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total | $ 35,180,000 | $ 28,300,000 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Credit Losses - Credit Risk Ratings , Vintage Years and/or Gross Write-offs for Loans Held-for-Investment by Portfolio Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | $ 7,090,395,000 | $ 7,090,395,000 | $ 12,464,897,000 | ||
One Year before Current Fiscal Year | 11,425,642,000 | 11,425,642,000 | 8,204,714,000 | ||
Two Years before Current Fiscal Year | 7,265,279,000 | 7,265,279,000 | 4,810,435,000 | ||
Three Years before Current Fiscal Year | 4,206,435,000 | 4,206,435,000 | 3,871,740,000 | ||
Four Years before Current Fiscal Year | 3,487,616,000 | 3,487,616,000 | 2,936,646,000 | ||
Prior | 6,094,731,000 | 6,094,731,000 | 4,261,980,000 | ||
Revolving Loans | 11,129,338,000 | 11,129,338,000 | 11,460,495,000 | ||
Revolving Loans Converted to Term Loans | 207,748,000 | 207,748,000 | 191,523,000 | ||
Total | 50,907,184,000 | 50,907,184,000 | 48,202,430,000 | ||
YTD gross write-offs Total | 3,600,000 | $ 8,700,000 | 4,200,000 | $ 8,900,000 | |
Pass | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 6,959,365,000 | 6,959,365,000 | 12,365,799,000 | ||
One Year before Current Fiscal Year | 11,283,760,000 | 11,283,760,000 | 8,084,723,000 | ||
Two Years before Current Fiscal Year | 7,094,524,000 | 7,094,524,000 | 4,590,045,000 | ||
Three Years before Current Fiscal Year | 4,046,247,000 | 4,046,247,000 | 3,791,578,000 | ||
Four Years before Current Fiscal Year | 3,425,935,000 | 3,425,935,000 | 2,786,218,000 | ||
Prior | 5,852,417,000 | 5,852,417,000 | 4,158,181,000 | ||
Revolving Loans | 11,020,577,000 | 11,020,577,000 | 11,359,948,000 | ||
Revolving Loans Converted to Term Loans | 202,674,000 | 202,674,000 | 169,958,000 | ||
Total | 49,885,499,000 | 49,885,499,000 | 47,306,450,000 | ||
Pass | Federal Housing Administration Loan | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 638,000 | 638,000 | 818,000 | ||
Criticized (accrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 127,030,000 | 127,030,000 | 80,235,000 | ||
One Year before Current Fiscal Year | 128,019,000 | 128,019,000 | 96,150,000 | ||
Two Years before Current Fiscal Year | 166,040,000 | 166,040,000 | 208,970,000 | ||
Three Years before Current Fiscal Year | 147,439,000 | 147,439,000 | 76,486,000 | ||
Four Years before Current Fiscal Year | 52,160,000 | 52,160,000 | 142,072,000 | ||
Prior | 190,131,000 | 190,131,000 | 76,117,000 | ||
Revolving Loans | 106,841,000 | 106,841,000 | 99,447,000 | ||
Revolving Loans Converted to Term Loans | 963,000 | 963,000 | 17,795,000 | ||
Total | 918,623,000 | 918,623,000 | 797,272,000 | ||
Criticized (nonaccrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 4,000,000 | 4,000,000 | 18,863,000 | ||
One Year before Current Fiscal Year | 13,863,000 | 13,863,000 | 23,841,000 | ||
Two Years before Current Fiscal Year | 4,715,000 | 4,715,000 | 11,420,000 | ||
Three Years before Current Fiscal Year | 12,749,000 | 12,749,000 | 3,676,000 | ||
Four Years before Current Fiscal Year | 9,521,000 | 9,521,000 | 8,356,000 | ||
Prior | 52,183,000 | 52,183,000 | 27,682,000 | ||
Revolving Loans | 1,920,000 | 1,920,000 | 1,100,000 | ||
Revolving Loans Converted to Term Loans | 4,111,000 | 4,111,000 | 3,770,000 | ||
Total | 103,062,000 | 103,062,000 | 98,708,000 | ||
YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 350,000 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 28,000 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 161,000 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 15,000 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 6,606,000 | ||||
YTD gross write-offs Prior | 12,257,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 6,000 | ||||
YTD gross write-offs Total | 19,423,000 | ||||
Consumer Loan | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Converted to term loan | 20,600,000 | 375,000 | 27,700,000 | 375,000 | |
Commercial lending | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 4,682,705,000 | 4,682,705,000 | 8,898,251,000 | ||
One Year before Current Fiscal Year | 8,009,201,000 | 8,009,201,000 | 5,745,996,000 | ||
Two Years before Current Fiscal Year | 4,932,591,000 | 4,932,591,000 | 3,020,575,000 | ||
Three Years before Current Fiscal Year | 2,563,247,000 | 2,563,247,000 | 2,761,676,000 | ||
Four Years before Current Fiscal Year | 2,470,541,000 | 2,470,541,000 | 2,111,867,000 | ||
Prior | 4,002,714,000 | 4,002,714,000 | 2,719,920,000 | ||
Revolving Loans | 9,484,122,000 | 9,484,122,000 | 9,462,895,000 | ||
Revolving Loans Converted to Term Loans | 84,586,000 | 84,586,000 | 59,273,000 | ||
Total | 36,229,707,000 | 36,229,707,000 | 34,780,453,000 | ||
Converted to term loan | 11,200,000 | $ 0 | 24,600,000 | $ 26,400,000 | |
Commercial lending | YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 350,000 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 28,000 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 161,000 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 15,000 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 6,606,000 | ||||
YTD gross write-offs Prior | 12,216,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 0 | ||||
YTD gross write-offs Total | 19,376,000 | ||||
Commercial lending | Commercial and industrial (“C&I”) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 1,949,375,000 | 1,949,375,000 | 2,922,766,000 | ||
One Year before Current Fiscal Year | 2,063,639,000 | 2,063,639,000 | 2,092,308,000 | ||
Two Years before Current Fiscal Year | 1,562,103,000 | 1,562,103,000 | 682,520,000 | ||
Three Years before Current Fiscal Year | 408,413,000 | 408,413,000 | 426,477,000 | ||
Four Years before Current Fiscal Year | 291,079,000 | 291,079,000 | 170,234,000 | ||
Prior | 209,498,000 | 209,498,000 | 120,853,000 | ||
Revolving Loans | 9,359,687,000 | 9,359,687,000 | 9,275,389,000 | ||
Revolving Loans Converted to Term Loans | 20,248,000 | 20,248,000 | 20,548,000 | ||
Total | 15,864,042,000 | 15,864,042,000 | 15,711,095,000 | ||
Commercial lending | Commercial and industrial (“C&I”) | Pass | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 1,858,749,000 | 1,858,749,000 | 2,831,834,000 | ||
One Year before Current Fiscal Year | 1,942,241,000 | 1,942,241,000 | 2,053,215,000 | ||
Two Years before Current Fiscal Year | 1,470,818,000 | 1,470,818,000 | 623,026,000 | ||
Three Years before Current Fiscal Year | 354,650,000 | 354,650,000 | 392,013,000 | ||
Four Years before Current Fiscal Year | 259,342,000 | 259,342,000 | 143,970,000 | ||
Prior | 164,149,000 | 164,149,000 | 97,605,000 | ||
Revolving Loans | 9,254,852,000 | 9,254,852,000 | 9,177,401,000 | ||
Revolving Loans Converted to Term Loans | 20,248,000 | 20,248,000 | 20,548,000 | ||
Total | 15,325,049,000 | 15,325,049,000 | 15,339,612,000 | ||
Commercial lending | Commercial and industrial (“C&I”) | Criticized (accrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 88,542,000 | 88,542,000 | 72,210,000 | ||
One Year before Current Fiscal Year | 110,918,000 | 110,918,000 | 34,296,000 | ||
Two Years before Current Fiscal Year | 91,272,000 | 91,272,000 | 48,761,000 | ||
Three Years before Current Fiscal Year | 45,069,000 | 45,069,000 | 34,221,000 | ||
Four Years before Current Fiscal Year | 25,603,000 | 25,603,000 | 20,646,000 | ||
Prior | 23,640,000 | 23,640,000 | 12,933,000 | ||
Revolving Loans | 104,802,000 | 104,802,000 | 97,988,000 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 489,846,000 | 489,846,000 | 321,055,000 | ||
Commercial lending | Commercial and industrial (“C&I”) | Criticized (nonaccrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 2,084,000 | 2,084,000 | 18,722,000 | ||
One Year before Current Fiscal Year | 10,480,000 | 10,480,000 | 4,797,000 | ||
Two Years before Current Fiscal Year | 13,000 | 13,000 | 10,733,000 | ||
Three Years before Current Fiscal Year | 8,694,000 | 8,694,000 | 243,000 | ||
Four Years before Current Fiscal Year | 6,134,000 | 6,134,000 | 5,618,000 | ||
Prior | 21,709,000 | 21,709,000 | 10,315,000 | ||
Revolving Loans | 33,000 | 33,000 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 49,147,000 | 49,147,000 | 50,428,000 | ||
Commercial lending | Commercial and industrial (“C&I”) | YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 350,000 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 28,000 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 161,000 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 15,000 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 6,606,000 | ||||
YTD gross write-offs Prior | 1,684,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 0 | ||||
YTD gross write-offs Total | 8,844,000 | ||||
Commercial lending | CRE | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 2,103,260,000 | 2,103,260,000 | 4,182,298,000 | ||
One Year before Current Fiscal Year | 4,095,527,000 | 4,095,527,000 | 2,484,251,000 | ||
Two Years before Current Fiscal Year | 2,280,068,000 | 2,280,068,000 | 1,664,574,000 | ||
Three Years before Current Fiscal Year | 1,496,985,000 | 1,496,985,000 | 1,811,774,000 | ||
Four Years before Current Fiscal Year | 1,674,163,000 | 1,674,163,000 | 1,562,842,000 | ||
Prior | 2,852,514,000 | 2,852,514,000 | 1,946,298,000 | ||
Revolving Loans | 101,811,000 | 101,811,000 | 167,108,000 | ||
Revolving Loans Converted to Term Loans | 63,050,000 | 63,050,000 | 38,725,000 | ||
Total | 14,667,378,000 | 14,667,378,000 | 13,857,870,000 | ||
Commercial lending | CRE | Pass | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 2,066,361,000 | 2,066,361,000 | 4,178,780,000 | ||
One Year before Current Fiscal Year | 4,080,810,000 | 4,080,810,000 | 2,404,634,000 | ||
Two Years before Current Fiscal Year | 2,259,761,000 | 2,259,761,000 | 1,505,150,000 | ||
Three Years before Current Fiscal Year | 1,396,114,000 | 1,396,114,000 | 1,771,679,000 | ||
Four Years before Current Fiscal Year | 1,649,168,000 | 1,649,168,000 | 1,471,710,000 | ||
Prior | 2,722,697,000 | 2,722,697,000 | 1,909,925,000 | ||
Revolving Loans | 101,811,000 | 101,811,000 | 165,653,000 | ||
Revolving Loans Converted to Term Loans | 63,050,000 | 63,050,000 | 22,009,000 | ||
Total | 14,339,772,000 | 14,339,772,000 | 13,429,540,000 | ||
Commercial lending | CRE | Criticized (accrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 36,899,000 | 36,899,000 | 3,518,000 | ||
One Year before Current Fiscal Year | 14,717,000 | 14,717,000 | 60,573,000 | ||
Two Years before Current Fiscal Year | 20,307,000 | 20,307,000 | 159,424,000 | ||
Three Years before Current Fiscal Year | 100,871,000 | 100,871,000 | 40,095,000 | ||
Four Years before Current Fiscal Year | 24,544,000 | 24,544,000 | 91,132,000 | ||
Prior | 129,658,000 | 129,658,000 | 32,173,000 | ||
Revolving Loans | 0 | 0 | 1,455,000 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 16,716,000 | ||
Total | 326,996,000 | 326,996,000 | 405,086,000 | ||
Commercial lending | CRE | Criticized (nonaccrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 0 | 0 | 0 | ||
One Year before Current Fiscal Year | 0 | 0 | 19,044,000 | ||
Two Years before Current Fiscal Year | 0 | 0 | 0 | ||
Three Years before Current Fiscal Year | 0 | 0 | 0 | ||
Four Years before Current Fiscal Year | 451,000 | 451,000 | 0 | ||
Prior | 159,000 | 159,000 | 4,200,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 610,000 | 610,000 | 23,244,000 | ||
Commercial lending | CRE | YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 0 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 0 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Prior | 119,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 0 | ||||
YTD gross write-offs Total | 119,000 | ||||
Commercial lending | Real estate loan | Multifamily residential | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 478,895,000 | 478,895,000 | 1,500,289,000 | ||
One Year before Current Fiscal Year | 1,495,620,000 | 1,495,620,000 | 892,598,000 | ||
Two Years before Current Fiscal Year | 867,946,000 | 867,946,000 | 641,677,000 | ||
Three Years before Current Fiscal Year | 620,117,000 | 620,117,000 | 520,321,000 | ||
Four Years before Current Fiscal Year | 504,487,000 | 504,487,000 | 354,320,000 | ||
Prior | 924,086,000 | 924,086,000 | 652,538,000 | ||
Revolving Loans | 7,658,000 | 7,658,000 | 11,325,000 | ||
Revolving Loans Converted to Term Loans | 1,288,000 | 1,288,000 | 0 | ||
Total | 4,900,097,000 | 4,900,097,000 | 4,573,068,000 | ||
Commercial lending | Real estate loan | Pass | Multifamily residential | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 478,895,000 | 478,895,000 | 1,500,289,000 | ||
One Year before Current Fiscal Year | 1,495,620,000 | 1,495,620,000 | 892,598,000 | ||
Two Years before Current Fiscal Year | 814,391,000 | 814,391,000 | 641,677,000 | ||
Three Years before Current Fiscal Year | 620,117,000 | 620,117,000 | 519,614,000 | ||
Four Years before Current Fiscal Year | 503,791,000 | 503,791,000 | 350,044,000 | ||
Prior | 893,282,000 | 893,282,000 | 625,293,000 | ||
Revolving Loans | 7,658,000 | 7,658,000 | 11,325,000 | ||
Revolving Loans Converted to Term Loans | 1,288,000 | 1,288,000 | 0 | ||
Total | 4,815,042,000 | 4,815,042,000 | 4,540,840,000 | ||
Commercial lending | Real estate loan | Criticized (accrual) | Multifamily residential | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 0 | 0 | 0 | ||
One Year before Current Fiscal Year | 0 | 0 | 0 | ||
Two Years before Current Fiscal Year | 53,555,000 | 53,555,000 | 0 | ||
Three Years before Current Fiscal Year | 0 | 0 | 707,000 | ||
Four Years before Current Fiscal Year | 696,000 | 696,000 | 4,276,000 | ||
Prior | 26,124,000 | 26,124,000 | 27,076,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 80,375,000 | 80,375,000 | 32,059,000 | ||
Commercial lending | Real estate loan | Criticized (nonaccrual) | Multifamily residential | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 0 | 0 | 0 | ||
One Year before Current Fiscal Year | 0 | 0 | 0 | ||
Two Years before Current Fiscal Year | 0 | 0 | 0 | ||
Three Years before Current Fiscal Year | 0 | 0 | 0 | ||
Four Years before Current Fiscal Year | 0 | 0 | 0 | ||
Prior | 4,680,000 | 4,680,000 | 169,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 4,680,000 | 4,680,000 | 169,000 | ||
Commercial lending | Construction and land | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 151,175,000 | 151,175,000 | 292,898,000 | ||
One Year before Current Fiscal Year | 354,415,000 | 354,415,000 | 276,839,000 | ||
Two Years before Current Fiscal Year | 222,474,000 | 222,474,000 | 31,804,000 | ||
Three Years before Current Fiscal Year | 37,732,000 | 37,732,000 | 3,104,000 | ||
Four Years before Current Fiscal Year | 812,000 | 812,000 | 24,471,000 | ||
Prior | 16,616,000 | 16,616,000 | 231,000 | ||
Revolving Loans | 14,966,000 | 14,966,000 | 9,073,000 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 798,190,000 | 798,190,000 | 638,420,000 | ||
Commercial lending | Construction and land | Pass | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 151,175,000 | 151,175,000 | 288,394,000 | ||
One Year before Current Fiscal Year | 354,415,000 | 354,415,000 | 276,839,000 | ||
Two Years before Current Fiscal Year | 222,474,000 | 222,474,000 | 31,804,000 | ||
Three Years before Current Fiscal Year | 37,732,000 | 37,732,000 | 3,104,000 | ||
Four Years before Current Fiscal Year | 812,000 | 812,000 | 2,805,000 | ||
Prior | 5,475,000 | 5,475,000 | 231,000 | ||
Revolving Loans | 14,966,000 | 14,966,000 | 9,073,000 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 787,049,000 | 787,049,000 | 612,250,000 | ||
Commercial lending | Construction and land | Criticized (accrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 4,504,000 | ||||
One Year before Current Fiscal Year | 0 | ||||
Two Years before Current Fiscal Year | 0 | ||||
Three Years before Current Fiscal Year | 0 | ||||
Four Years before Current Fiscal Year | 21,666,000 | ||||
Prior | 0 | ||||
Revolving Loans | 0 | ||||
Revolving Loans Converted to Term Loans | 0 | ||||
Total | 26,170,000 | ||||
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 | 11,141,000 | 11,141,000 | |||
Revolving Loans | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Total | 11,141,000 | 11,141,000 | |||
Commercial lending | Construction and land | YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 0 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 0 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Prior | 10,413,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 0 | ||||
YTD gross write-offs Total | 10,413,000 | ||||
Commercial lending | Total CRE | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 2,733,330,000 | 2,733,330,000 | 5,975,485,000 | ||
One Year before Current Fiscal Year | 5,945,562,000 | 5,945,562,000 | 3,653,688,000 | ||
Two Years before Current Fiscal Year | 3,370,488,000 | 3,370,488,000 | 2,338,055,000 | ||
Three Years before Current Fiscal Year | 2,154,834,000 | 2,154,834,000 | 2,335,199,000 | ||
Four Years before Current Fiscal Year | 2,179,462,000 | 2,179,462,000 | 1,941,633,000 | ||
Prior | 3,793,216,000 | 3,793,216,000 | 2,599,067,000 | ||
Revolving Loans | 124,435,000 | 124,435,000 | 187,506,000 | ||
Revolving Loans Converted to Term Loans | 64,338,000 | 64,338,000 | 38,725,000 | ||
Total | 20,365,665,000 | 20,365,665,000 | 19,069,358,000 | ||
Commercial lending | Total CRE | YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 0 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 0 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Prior | 10,532,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 0 | ||||
YTD gross write-offs Total | 10,532,000 | ||||
Consumer lending | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 2,407,690,000 | 2,407,690,000 | 3,566,646,000 | ||
One Year before Current Fiscal Year | 3,416,441,000 | 3,416,441,000 | 2,458,718,000 | ||
Two Years before Current Fiscal Year | 2,332,688,000 | 2,332,688,000 | 1,789,860,000 | ||
Three Years before Current Fiscal Year | 1,643,188,000 | 1,643,188,000 | 1,110,064,000 | ||
Four Years before Current Fiscal Year | 1,017,075,000 | 1,017,075,000 | 824,779,000 | ||
Prior | 2,092,017,000 | 2,092,017,000 | 1,542,060,000 | ||
Revolving Loans | 1,645,216,000 | 1,645,216,000 | 1,997,600,000 | ||
Revolving Loans Converted to Term Loans | 123,162,000 | 123,162,000 | 132,250,000 | ||
Total | 14,677,477,000 | 14,677,477,000 | 13,421,977,000 | ||
Consumer lending | YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 0 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 0 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Prior | 41,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 6,000 | ||||
YTD gross write-offs Total | 47,000 | ||||
Consumer lending | Real estate loan | Single-family residential | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 2,403,208,000 | 2,403,208,000 | 3,549,035,000 | ||
One Year before Current Fiscal Year | 3,395,557,000 | 3,395,557,000 | 2,454,992,000 | ||
Two Years before Current Fiscal Year | 2,326,755,000 | 2,326,755,000 | 1,776,685,000 | ||
Three Years before Current Fiscal Year | 1,637,511,000 | 1,637,511,000 | 1,106,630,000 | ||
Four Years before Current Fiscal Year | 1,014,691,000 | 1,014,691,000 | 823,237,000 | ||
Prior | 2,058,836,000 | 2,058,836,000 | 1,512,448,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 12,836,558,000 | 12,836,558,000 | 11,223,027,000 | ||
Consumer lending | Real estate loan | Pass | Single-family residential | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 2,400,448,000 | 2,400,448,000 | 3,548,894,000 | ||
One Year before Current Fiscal Year | 3,390,708,000 | 3,390,708,000 | 2,453,717,000 | ||
Two Years before Current Fiscal Year | 2,321,209,000 | 2,321,209,000 | 1,775,696,000 | ||
Three Years before Current Fiscal Year | 1,633,316,000 | 1,633,316,000 | 1,101,965,000 | ||
Four Years before Current Fiscal Year | 1,010,859,000 | 1,010,859,000 | 817,164,000 | ||
Prior | 2,040,678,000 | 2,040,678,000 | 1,500,359,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 12,797,218,000 | 12,797,218,000 | 11,197,795,000 | ||
Consumer lending | Real estate loan | Criticized (accrual) | Single-family residential | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 844,000 | 844,000 | 0 | ||
One Year before Current Fiscal Year | 1,983,000 | 1,983,000 | 1,275,000 | ||
Two Years before Current Fiscal Year | 844,000 | 844,000 | 785,000 | ||
Three Years before Current Fiscal Year | 1,499,000 | 1,499,000 | 1,463,000 | ||
Four Years before Current Fiscal Year | 964,000 | 964,000 | 4,352,000 | ||
Prior | 9,060,000 | 9,060,000 | 3,935,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 15,194,000 | 15,194,000 | 11,810,000 | ||
Consumer lending | Real estate loan | Criticized (nonaccrual) | Single-family residential | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 1,916,000 | 1,916,000 | 141,000 | ||
One Year before Current Fiscal Year | 2,866,000 | 2,866,000 | 0 | ||
Two Years before Current Fiscal Year | 4,702,000 | 4,702,000 | 204,000 | ||
Three Years before Current Fiscal Year | 2,696,000 | 2,696,000 | 3,202,000 | ||
Four Years before Current Fiscal Year | 2,868,000 | 2,868,000 | 1,721,000 | ||
Prior | 9,098,000 | 9,098,000 | 8,154,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 24,146,000 | 24,146,000 | 13,422,000 | ||
Consumer lending | HELOCs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 923,000 | 923,000 | 520,000 | ||
One Year before Current Fiscal Year | 2,746,000 | 2,746,000 | 3,589,000 | ||
Two Years before Current Fiscal Year | 5,798,000 | 5,798,000 | 7,819,000 | ||
Three Years before Current Fiscal Year | 5,677,000 | 5,677,000 | 3,434,000 | ||
Four Years before Current Fiscal Year | 2,384,000 | 2,384,000 | 1,542,000 | ||
Prior | 20,866,000 | 20,866,000 | 13,804,000 | ||
Revolving Loans | 1,615,109,000 | 1,615,109,000 | 1,959,697,000 | ||
Revolving Loans Converted to Term Loans | 123,162,000 | 123,162,000 | 132,250,000 | ||
Total | 1,776,665,000 | 1,776,665,000 | 2,122,655,000 | ||
Consumer lending | HELOCs | Pass | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 182,000 | 182,000 | 520,000 | ||
One Year before Current Fiscal Year | 1,828,000 | 1,828,000 | 3,583,000 | ||
Two Years before Current Fiscal Year | 5,736,000 | 5,736,000 | 7,336,000 | ||
Three Years before Current Fiscal Year | 4,318,000 | 4,318,000 | 3,203,000 | ||
Four Years before Current Fiscal Year | 1,963,000 | 1,963,000 | 525,000 | ||
Prior | 13,821,000 | 13,821,000 | 8,960,000 | ||
Revolving Loans | 1,611,319,000 | 1,611,319,000 | 1,958,692,000 | ||
Revolving Loans Converted to Term Loans | 118,088,000 | 118,088,000 | 127,401,000 | ||
Total | 1,757,255,000 | 1,757,255,000 | 2,110,220,000 | ||
Consumer lending | HELOCs | Criticized (accrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 741,000 | 741,000 | 0 | ||
One Year before Current Fiscal Year | 401,000 | 401,000 | 6,000 | ||
Two Years before Current Fiscal Year | 62,000 | 62,000 | 0 | ||
Three Years before Current Fiscal Year | 0 | 0 | 0 | ||
Four Years before Current Fiscal Year | 353,000 | 353,000 | 0 | ||
Prior | 1,649,000 | 1,649,000 | 0 | ||
Revolving Loans | 2,039,000 | 2,039,000 | 4,000 | ||
Revolving Loans Converted to Term Loans | 963,000 | 963,000 | 1,079,000 | ||
Total | 6,208,000 | 6,208,000 | 1,089,000 | ||
Consumer lending | HELOCs | Criticized (nonaccrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 0 | 0 | 0 | ||
One Year before Current Fiscal Year | 517,000 | 517,000 | 0 | ||
Two Years before Current Fiscal Year | 0 | 0 | 483,000 | ||
Three Years before Current Fiscal Year | 1,359,000 | 1,359,000 | 231,000 | ||
Four Years before Current Fiscal Year | 68,000 | 68,000 | 1,017,000 | ||
Prior | 5,396,000 | 5,396,000 | 4,844,000 | ||
Revolving Loans | 1,751,000 | 1,751,000 | 1,001,000 | ||
Revolving Loans Converted to Term Loans | 4,111,000 | 4,111,000 | 3,770,000 | ||
Total | 13,202,000 | 13,202,000 | 11,346,000 | ||
Consumer lending | HELOCs | YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 0 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 0 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Prior | 41,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 6,000 | ||||
YTD gross write-offs Total | 47,000 | ||||
Consumer lending | Total residential mortgage | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 2,404,131,000 | 2,404,131,000 | 3,549,555,000 | ||
One Year before Current Fiscal Year | 3,398,303,000 | 3,398,303,000 | 2,458,581,000 | ||
Two Years before Current Fiscal Year | 2,332,553,000 | 2,332,553,000 | 1,784,504,000 | ||
Three Years before Current Fiscal Year | 1,643,188,000 | 1,643,188,000 | 1,110,064,000 | ||
Four Years before Current Fiscal Year | 1,017,075,000 | 1,017,075,000 | 824,779,000 | ||
Prior | 2,079,702,000 | 2,079,702,000 | 1,526,252,000 | ||
Revolving Loans | 1,615,109,000 | 1,615,109,000 | 1,959,697,000 | ||
Revolving Loans Converted to Term Loans | 123,162,000 | 123,162,000 | 132,250,000 | ||
Total | 14,613,223,000 | 14,613,223,000 | 13,345,682,000 | ||
Consumer lending | Total residential mortgage | YTD gross write-offs | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
YTD gross write-offs Current Fiscal Year | 0 | ||||
YTD gross write-offs One Year before Current Fiscal Year | 0 | ||||
YTD gross write-offs Two Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Three Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Four Years before Current Fiscal Year | 0 | ||||
YTD gross write-offs Prior | 41,000 | ||||
YTD gross write-offs Revolving Loans | 0 | ||||
YTD gross write-offs Revolving Loans Converted to Term Loans | 6,000 | ||||
YTD gross write-offs Total | 47,000 | ||||
Consumer lending | Other consumer | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 3,559,000 | 3,559,000 | 17,091,000 | ||
One Year before Current Fiscal Year | 18,138,000 | 18,138,000 | 137,000 | ||
Two Years before Current Fiscal Year | 135,000 | 135,000 | 5,356,000 | ||
Three Years before Current Fiscal Year | 0 | 0 | 0 | ||
Four Years before Current Fiscal Year | 0 | 0 | 0 | ||
Prior | 12,315,000 | 12,315,000 | 15,808,000 | ||
Revolving Loans | 30,107,000 | 30,107,000 | 37,903,000 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 64,254,000 | 64,254,000 | 76,295,000 | ||
Consumer lending | Other consumer | Pass | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 3,555,000 | 3,555,000 | 17,088,000 | ||
One Year before Current Fiscal Year | 18,138,000 | 18,138,000 | 137,000 | ||
Two Years before Current Fiscal Year | 135,000 | 135,000 | 5,356,000 | ||
Three Years before Current Fiscal Year | 0 | 0 | 0 | ||
Four Years before Current Fiscal Year | 0 | 0 | 0 | ||
Prior | 12,315,000 | 12,315,000 | 15,808,000 | ||
Revolving Loans | 29,971,000 | 29,971,000 | 37,804,000 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 64,114,000 | 64,114,000 | 76,193,000 | ||
Consumer lending | Other consumer | Criticized (accrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 4,000 | 4,000 | 3,000 | ||
One Year before Current Fiscal Year | 0 | 0 | 0 | ||
Two Years before Current Fiscal Year | 0 | 0 | 0 | ||
Three Years before Current Fiscal Year | 0 | 0 | 0 | ||
Four Years before Current Fiscal Year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | 4,000 | 4,000 | 3,000 | ||
Consumer lending | Other consumer | Criticized (nonaccrual) | |||||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | |||||
Current Fiscal Year | 0 | 0 | 0 | ||
One Year before Current Fiscal Year | 0 | 0 | 0 | ||
Two Years before Current Fiscal Year | 0 | 0 | 0 | ||
Three Years before Current Fiscal Year | 0 | 0 | 0 | ||
Four Years before Current Fiscal Year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans | 136,000 | 136,000 | 99,000 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | ||
Total | $ 136,000 | $ 136,000 | $ 99,000 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Credit Losses - Aging Analysis on Loans Held-for-Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | $ 50,907,184 | $ 48,202,430 |
Total Nonaccrual Loans | 103,700 | 99,526 |
Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 50,709,575 | 48,040,733 |
Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 93,909 | 62,171 |
Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 70,959 | 42,677 |
Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 22,950 | 19,494 |
Commercial lending | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 36,229,707 | 34,780,453 |
Total Nonaccrual Loans | 65,578 | 73,841 |
Commercial lending | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 36,127,081 | 34,682,072 |
Commercial lending | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 37,048 | 24,540 |
Commercial lending | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 36,293 | 21,345 |
Commercial lending | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 755 | 3,195 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 15,864,042 | 15,711,095 |
Total Nonaccrual Loans | 49,147 | 50,428 |
Commercial lending | Commercial and industrial (“C&I”) | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 15,781,468 | 15,651,312 |
Commercial lending | Commercial and industrial (“C&I”) | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 33,427 | 9,355 |
Commercial lending | Commercial and industrial (“C&I”) | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 33,195 | 6,482 |
Commercial lending | Commercial and industrial (“C&I”) | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 232 | 2,873 |
Commercial lending | CRE | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 14,667,378 | 13,857,870 |
Total Nonaccrual Loans | 610 | 23,244 |
Commercial lending | CRE | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 14,664,230 | 13,820,441 |
Commercial lending | CRE | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 2,538 | 14,185 |
Commercial lending | CRE | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 2,015 | 14,185 |
Commercial lending | CRE | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 523 | 0 |
Commercial lending | Real estate loan | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 4,900,097 | 4,573,068 |
Total Nonaccrual Loans | 4,680 | 169 |
Commercial lending | Real estate loan | Current Accruing Loans | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 4,894,334 | 4,571,899 |
Commercial lending | Real estate loan | Total Accruing Past Due Loans | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 1,083 | 1,000 |
Commercial lending | Real estate loan | Accruing Loans 30-59 Days Past Due | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 1,083 | 678 |
Commercial lending | Real estate loan | Accruing Loans 60-89 Days Past Due | Multifamily residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 322 |
Commercial lending | Construction and land | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 798,190 | 638,420 |
Total Nonaccrual Loans | 11,141 | 0 |
Commercial lending | Construction and land | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 787,049 | 638,420 |
Commercial lending | Construction and land | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Commercial lending | Construction and land | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Commercial lending | Construction and land | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Commercial lending | Total CRE | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 20,365,665 | 19,069,358 |
Total Nonaccrual Loans | 16,431 | 23,413 |
Commercial lending | Total CRE | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 20,345,613 | 19,030,760 |
Commercial lending | Total CRE | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 3,621 | 15,185 |
Commercial lending | Total CRE | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 3,098 | 14,863 |
Commercial lending | Total CRE | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 523 | 322 |
Consumer lending | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 14,677,477 | 13,421,977 |
Total Nonaccrual Loans | 38,122 | 25,685 |
Consumer lending | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 14,582,494 | 13,358,661 |
Consumer lending | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 56,861 | 37,631 |
Consumer lending | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 34,666 | 21,332 |
Consumer lending | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 22,195 | 16,299 |
Consumer lending | Real estate loan | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 12,836,558 | 11,223,027 |
Total Nonaccrual Loans | 24,784 | 14,240 |
Consumer lending | Real estate loan | Current Accruing Loans | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 12,771,661 | 11,183,134 |
Consumer lending | Real estate loan | Total Accruing Past Due Loans | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 40,113 | 25,653 |
Consumer lending | Real estate loan | Accruing Loans 30-59 Days Past Due | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 24,141 | 13,523 |
Consumer lending | Real estate loan | Accruing Loans 60-89 Days Past Due | Single-family residential | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 15,972 | 12,130 |
Consumer lending | HELOCs | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 1,776,665 | 2,122,655 |
Total Nonaccrual Loans | 13,202 | 11,346 |
Consumer lending | HELOCs | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 1,746,841 | 2,102,523 |
Consumer lending | HELOCs | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 16,622 | 8,786 |
Consumer lending | HELOCs | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 10,416 | 7,700 |
Consumer lending | HELOCs | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 6,206 | 1,086 |
Consumer lending | Total residential mortgage | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 14,613,223 | 13,345,682 |
Total Nonaccrual Loans | 37,986 | 25,586 |
Consumer lending | Total residential mortgage | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 14,518,502 | 13,285,657 |
Consumer lending | Total residential mortgage | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 56,735 | 34,439 |
Consumer lending | Total residential mortgage | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 34,557 | 21,223 |
Consumer lending | Total residential mortgage | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 22,178 | 13,216 |
Consumer lending | Other consumer | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 64,254 | 76,295 |
Total Nonaccrual Loans | 136 | 99 |
Consumer lending | Other consumer | Current Accruing Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 63,992 | 73,004 |
Consumer lending | Other consumer | Total Accruing Past Due Loans | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 126 | 3,192 |
Consumer lending | Other consumer | Accruing Loans 30-59 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 109 | 109 |
Consumer lending | Other consumer | Accruing Loans 60-89 Days Past Due | ||
Current, Past Due or Nonaccrual Loans | ||
Financing receivable, excluding accrued interest, modified, after 12 months | $ 17 | $ 3,083 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Credit Losses - Amortized Cost of Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | $ 59,876 | $ 44,585 |
Commercial lending | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 44,712 | 34,342 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 29,336 | 11,398 |
Commercial lending | CRE | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 0 | 22,944 |
Commercial lending | Real estate loan | Multifamily residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 4,235 | 0 |
Commercial lending | Construction and land | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 11,141 | 0 |
Consumer lending | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 15,164 | 10,243 |
Consumer lending | Real estate loan | Single-family residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 6,681 | 2,998 |
Consumer lending | HELOCs | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | $ 8,483 | $ 7,245 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Credit Losses - Loans Receivable Narrative (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Foreclosed assets | ||
Other assets, foreclosed assets | $ 0 | $ 270,000 |
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 | $ 9,900,000 | $ 7,500,000 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Credit Losses - Modifications of Outstanding Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Loans Modified as TDRs | ||
Total | $ 31,475 | $ 122,678 |
Term Extension | ||
Loans Modified as TDRs | ||
Total | 15,151 | 58,099 |
Payment Delay | ||
Loans Modified as TDRs | ||
Total | 14,547 | 28,810 |
Term Extension/ Payment Delay | ||
Loans Modified as TDRs | ||
Total | 1,594 | 2,862 |
Rate Reduction/ Term Extension | ||
Loans Modified as TDRs | ||
Total | 0 | 32,724 |
Rate Reduction /Payment Delay | ||
Loans Modified as TDRs | ||
Total | 183 | 183 |
Commercial lending | ||
Loans Modified as TDRs | ||
Total | 26,754 | 111,616 |
Commercial lending | Term Extension | ||
Loans Modified as TDRs | ||
Total | 15,151 | 58,099 |
Commercial lending | Payment Delay | ||
Loans Modified as TDRs | ||
Total | 11,603 | 20,793 |
Commercial lending | Term Extension/ Payment Delay | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Commercial lending | Rate Reduction/ Term Extension | ||
Loans Modified as TDRs | ||
Total | 0 | 32,724 |
Commercial lending | Rate Reduction /Payment Delay | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Loans Modified as TDRs | ||
Total | $ 13,285 | $ 64,913 |
Modification as a % of Loan Class | 0.08% | 0.41% |
Commercial lending | Commercial and industrial (“C&I”) | Term Extension | ||
Loans Modified as TDRs | ||
Total | $ 1,682 | $ 44,120 |
Commercial lending | Commercial and industrial (“C&I”) | Payment Delay | ||
Loans Modified as TDRs | ||
Total | 11,603 | 20,793 |
Commercial lending | Commercial and industrial (“C&I”) | Term Extension/ Payment Delay | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Commercial lending | Commercial and industrial (“C&I”) | Rate Reduction/ Term Extension | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Commercial lending | Commercial and industrial (“C&I”) | Rate Reduction /Payment Delay | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Commercial lending | CRE | ||
Loans Modified as TDRs | ||
Total | $ 13,469 | $ 46,703 |
Modification as a % of Loan Class | 0.07% | 0.23% |
Commercial lending | CRE | Term Extension | ||
Loans Modified as TDRs | ||
Total | $ 13,469 | $ 13,979 |
Commercial lending | CRE | Payment Delay | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Commercial lending | CRE | Term Extension/ Payment Delay | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Commercial lending | CRE | Rate Reduction/ Term Extension | ||
Loans Modified as TDRs | ||
Total | 0 | 32,724 |
Commercial lending | CRE | Rate Reduction /Payment Delay | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Consumer lending | ||
Loans Modified as TDRs | ||
Total | 4,721 | 11,062 |
Consumer lending | Single-family residential | ||
Loans Modified as TDRs | ||
Total | $ 4,204 | $ 9,085 |
Modification as a % of Loan Class | 0.03% | 0.07% |
Consumer lending | Term Extension | ||
Loans Modified as TDRs | ||
Total | $ 0 | $ 0 |
Consumer lending | Term Extension | Single-family residential | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Consumer lending | Payment Delay | ||
Loans Modified as TDRs | ||
Total | 2,944 | 8,017 |
Consumer lending | Payment Delay | Single-family residential | ||
Loans Modified as TDRs | ||
Total | 2,944 | 7,276 |
Consumer lending | Term Extension/ Payment Delay | ||
Loans Modified as TDRs | ||
Total | 1,594 | 2,862 |
Consumer lending | Term Extension/ Payment Delay | Single-family residential | ||
Loans Modified as TDRs | ||
Total | 1,260 | 1,809 |
Consumer lending | Rate Reduction/ Term Extension | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Consumer lending | Rate Reduction/ Term Extension | Single-family residential | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Consumer lending | Rate Reduction /Payment Delay | ||
Loans Modified as TDRs | ||
Total | 183 | 183 |
Consumer lending | Rate Reduction /Payment Delay | Single-family residential | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Consumer lending | HELOCs | ||
Loans Modified as TDRs | ||
Total | $ 517 | $ 1,977 |
Modification as a % of Loan Class | 0.03% | 0.11% |
Consumer lending | HELOCs | Term Extension | ||
Loans Modified as TDRs | ||
Total | $ 0 | $ 0 |
Consumer lending | HELOCs | Payment Delay | ||
Loans Modified as TDRs | ||
Total | 0 | 741 |
Consumer lending | HELOCs | Term Extension/ Payment Delay | ||
Loans Modified as TDRs | ||
Total | 334 | 1,053 |
Consumer lending | HELOCs | Rate Reduction/ Term Extension | ||
Loans Modified as TDRs | ||
Total | 0 | 0 |
Consumer lending | HELOCs | Rate Reduction /Payment Delay | ||
Loans Modified as TDRs | ||
Total | $ 183 | $ 183 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Credit Losses - Financial Effects of Loan Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Principal Forgiveness | ||
Loans Modified as TDRs | ||
Loan modification amount | $ 26 | $ 371 |
Commercial lending | Commercial and industrial (“C&I”) | Principal Forgiveness | ||
Loans Modified as TDRs | ||
Loan modification amount | $ 26 | $ 371 |
Commercial lending | Commercial and industrial (“C&I”) | Term Extension | ||
Loans Modified as TDRs | ||
Weighted average of loans (in years) | 3 years | 1 year 4 months 28 days |
Commercial lending | Commercial and industrial (“C&I”) | Payment Delay | ||
Loans Modified as TDRs | ||
Weighted average of loans (in years) | 1 year 6 months 14 days | 1 year 1 month 24 days |
Commercial lending | CRE | ||
Loans Modified as TDRs | ||
Weighted-Average Interest Rate Reduction | 3% | |
Commercial lending | CRE | Term Extension | ||
Loans Modified as TDRs | ||
Weighted average of loans (in years) | 1 year 29 days | 2 years 1 month 2 days |
Consumer lending | Principal Forgiveness | Single-family residential | ||
Loans Modified as TDRs | ||
Loan modification amount | $ 0 | $ 0 |
Weighted-Average Interest Rate Reduction | 0% | 0% |
Consumer lending | Term Extension | Single-family residential | ||
Loans Modified as TDRs | ||
Weighted average of loans (in years) | 10 years | 9 years 10 months 28 days |
Consumer lending | Payment Delay | Single-family residential | ||
Loans Modified as TDRs | ||
Weighted average of loans (in years) | 11 months 15 days | 11 months 12 days |
Consumer lending | HELOCs | Principal Forgiveness | ||
Loans Modified as TDRs | ||
Loan modification amount | $ 0 | $ 0 |
Weighted-Average Interest Rate Reduction | 0.50% | 0.50% |
Consumer lending | HELOCs | Term Extension | ||
Loans Modified as TDRs | ||
Weighted average of loans (in years) | 16 years 8 months 4 days | 15 years 4 months 9 days |
Consumer lending | HELOCs | Payment Delay | ||
Loans Modified as TDRs | ||
Weighted average of loans (in years) | 8 months 15 days | 6 months 7 days |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Credit Losses - Loans Modification Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Modification Loans Subsequently Defaulted | $ 0 | $ 0 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Credit Losses - Payment Status Recorded Investment (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | $ 122,678,000 | |
Commitment to lend | 5,800,000 | $ 16,200,000 |
Current Accruing Loans | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 113,850,000 | |
30 - 89 Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 1,931,000 | |
90+ Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 6,897,000 | |
Commercial lending | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 111,616,000 | |
Commercial lending | Current Accruing Loans | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 105,184,000 | |
Commercial lending | 30 - 89 Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 0 | |
Commercial lending | 90+ Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 6,432,000 | |
Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 64,913,000 | |
Commercial lending | Commercial and industrial (“C&I”) | Current Accruing Loans | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 58,481,000 | |
Commercial lending | Commercial and industrial (“C&I”) | 30 - 89 Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 0 | |
Commercial lending | Commercial and industrial (“C&I”) | 90+ Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 6,432,000 | |
Commercial lending | CRE | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 46,703,000 | |
Commercial lending | CRE | Current Accruing Loans | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 46,703,000 | |
Commercial lending | CRE | 30 - 89 Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 0 | |
Commercial lending | CRE | 90+ Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 0 | |
Consumer lending | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 11,062,000 | |
Consumer lending | Current Accruing Loans | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 8,666,000 | |
Consumer lending | 30 - 89 Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 1,931,000 | |
Consumer lending | 90+ Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 465,000 | |
Consumer lending | Real estate loan | Single-family residential | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 9,085,000 | |
Consumer lending | Real estate loan | Current Accruing Loans | Single-family residential | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 7,430,000 | |
Consumer lending | Real estate loan | 30 - 89 Days Past Due | Single-family residential | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 1,190,000 | |
Consumer lending | Real estate loan | 90+ Days Past Due | Single-family residential | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 465,000 | |
Consumer lending | HELOCs | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 1,977,000 | |
Consumer lending | HELOCs | Current Accruing Loans | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 1,236,000 | |
Consumer lending | HELOCs | 30 - 89 Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | 741,000 | |
Consumer lending | HELOCs | 90+ Days Past Due | ||
Financing Receivable Allowance for Credit Losses | ||
Financing receivable, modified, accumulated | $ 0 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Credit Losses - Additions to TDRs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) loan | Sep. 30, 2022 USD ($) loan | |
Current, Past Due or Nonaccrual Loans | ||
Number of Loans | loan | 2 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 561 | $ 30,695 |
Post-modification outstanding recorded investment | 565 | 17,871 |
Financial Impact | $ 100 | $ 16,731 |
Commercial lending | ||
Current, Past Due or Nonaccrual Loans | ||
Number of Loans | loan | 1 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 499 | $ 30,633 |
Post-modification outstanding recorded investment | 496 | 17,802 |
Financial Impact | $ 98 | $ 16,729 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Current, Past Due or Nonaccrual Loans | ||
Number of Loans | loan | 1 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 499 | $ 30,633 |
Post-modification outstanding recorded investment | 496 | 17,802 |
Financial Impact | $ 98 | $ 16,729 |
Consumer lending | ||
Current, Past Due or Nonaccrual Loans | ||
Number of Loans | loan | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 62 | $ 62 |
Post-modification outstanding recorded investment | 69 | 69 |
Financial Impact | $ 2 | $ 2 |
Consumer lending | HELOCs | ||
Current, Past Due or Nonaccrual Loans | ||
Number of Loans | loan | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 62 | $ 62 |
Post-modification outstanding recorded investment | 69 | 69 |
Financial Impact | $ 2 | $ 2 |
Consumer lending | Total residential mortgage | ||
Current, Past Due or Nonaccrual Loans | ||
Number of Loans | loan | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 62 | $ 62 |
Post-modification outstanding recorded investment | 69 | 69 |
Financial Impact | $ 2 | $ 2 |
Loans Receivable and Allowan_14
Loans Receivable and Allowance for Credit Losses - Loans Modified that Subsequently Defaulted (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | $ 565,000 | $ 17,871,000 | ||
Commitment to lend | $ 5,800,000 | $ 16,200,000 | ||
Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 565,000 | 9,678,000 | ||
Other Modification | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 0 | 8,193,000 | ||
Commercial lending | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | $ 496,000 | $ 17,802,000 | ||
Number of Loans | loan | 0 | 3 | ||
Recorded Investment | $ 0 | $ 14,909,000 | ||
Commercial lending | Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 496,000 | 9,609,000 | ||
Commercial lending | Other Modification | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 0 | 8,193,000 | ||
Commercial lending | Commercial and industrial (“C&I”) | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | $ 496,000 | $ 17,802,000 | ||
Number of Loans | loan | 0 | 2 | ||
Recorded Investment | $ 0 | $ 13,901,000 | ||
Commercial lending | Commercial and industrial (“C&I”) | Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 496,000 | 9,609,000 | ||
Commercial lending | Commercial and industrial (“C&I”) | Other Modification | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | $ 0 | $ 8,193,000 | ||
Commercial lending | Real estate loan | Multifamily residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 1 | ||
Recorded Investment | $ 0 | $ 1,008,000 | ||
Commercial lending | Total CRE | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 1 | ||
Recorded Investment | $ 0 | $ 1,008,000 | ||
Consumer lending | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 69,000 | 69,000 | ||
Consumer lending | Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 69,000 | 69,000 | ||
Consumer lending | Other Modification | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 0 | 0 | ||
Consumer lending | HELOCs | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 69,000 | 69,000 | ||
Consumer lending | HELOCs | Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 69,000 | 69,000 | ||
Consumer lending | HELOCs | Other Modification | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 0 | 0 | ||
Consumer lending | Total residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 69,000 | 69,000 | ||
Consumer lending | Total residential mortgage | Principal Forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | 69,000 | 69,000 | ||
Consumer lending | Total residential mortgage | Other Modification | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification outstanding recorded investment | $ 0 | $ 0 |
Loans Receivable and Allowan_15
Loans Receivable and Allowance for Credit Losses - Allowance for Credit Losses Narrative (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 USD ($) qtr | Jun. 30, 2023 qtr | Dec. 31, 2022 USD ($) | |
Financing Receivable Allowance for Credit Losses | |||
Life time loss rate, period span | qtr | 8 | ||
Allowance for credit losses | $ | $ 689.1 | $ 621.9 | |
Increase in allowance for credit losses | $ | $ 67.2 | ||
Commercial and industrial (“C&I”) | |||
Financing Receivable Allowance for Credit Losses | |||
Life time loss rate, period span | qtr | 8 | 11 |
Loans Receivable and Allowan_16
Loans Receivable and Allowance for Credit Losses - Collateral-Dependent Loans Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Commercial lending | ||
Financing Receivable Allowance for Credit Losses | ||
Collateral dependent loan | $ 18.1 | $ 47.4 |
Consumer lending | ||
Financing Receivable Allowance for Credit Losses | ||
Collateral dependent loan | $ 15.2 | $ 13.4 |
Loans Receivable and Allowan_17
Loans Receivable and Allowance for Credit Losses - Summary of Activities in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Allowance for loan losses | |||||
Allowance for loan losses, December 31, 2022 | $ 595,645 | ||||
Allowance for loan losses, start of period | $ 635,400 | $ 563,270 | $ 595,645 | $ 541,579 | |
Provision for (reversal of) credit losses on loans | 38,136 | 27,274 | 80,681 | 51,995 | |
Gross charge-offs | (21,007) | (13,905) | (32,799) | (26,684) | |
Gross recoveries | 2,861 | 7,264 | 6,507 | 18,363 | |
Total net (charge-offs) recoveries | (18,146) | (6,641) | (26,292) | (8,321) | |
Foreign currency translation adjustment | 133 | (1,386) | (539) | (2,736) | |
Allowance for loan losses, end of period | 655,523 | 582,517 | 655,523 | 582,517 | |
Commercial lending | Commercial and industrial (“C&I”) | |||||
Allowance for loan losses | |||||
Allowance for loan losses, December 31, 2022 | 371,700 | ||||
Allowance for loan losses, start of period | 375,333 | 363,282 | 338,252 | ||
Provision for (reversal of) credit losses on loans | 13,006 | 9,575 | 17,587 | 37,867 | |
Gross charge-offs | (7,074) | (6,894) | (16,309) | (18,322) | |
Gross recoveries | 2,279 | 7,172 | 5,555 | 16,688 | |
Total net (charge-offs) recoveries | (4,795) | 278 | (10,754) | (1,634) | |
Foreign currency translation adjustment | 133 | (1,386) | (539) | (2,736) | |
Allowance for loan losses, end of period | 383,677 | 371,749 | 383,677 | 371,749 | |
Commercial lending | CRE | |||||
Allowance for loan losses | |||||
Allowance for loan losses, December 31, 2022 | 149,864 | ||||
Allowance for loan losses, start of period | 168,505 | 140,245 | 150,940 | ||
Provision for (reversal of) credit losses on loans | 12,952 | 5,299 | 33,313 | (5,013) | |
Gross charge-offs | (3,466) | (288) | (5,838) | (1,357) | |
Gross recoveries | 49 | 45 | 364 | 731 | |
Total net (charge-offs) recoveries | (3,417) | (243) | (5,474) | (626) | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 178,040 | 145,301 | 178,040 | 145,301 | |
Commercial lending | Residential loan | Multifamily residential | |||||
Allowance for loan losses | |||||
Allowance for loan losses, December 31, 2022 | 23,373 | ||||
Allowance for loan losses, start of period | 22,938 | 26,552 | 14,400 | ||
Provision for (reversal of) credit losses on loans | 772 | 5,047 | 303 | 16,680 | |
Gross charge-offs | 0 | (5,938) | 0 | (5,947) | |
Gross recoveries | 452 | 19 | 480 | 547 | |
Total net (charge-offs) recoveries | 452 | (5,919) | 480 | (5,400) | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 24,162 | 25,680 | 24,162 | 25,680 | |
Commercial lending | Construction and land | |||||
Allowance for loan losses | |||||
Allowance for loan losses, December 31, 2022 | 9,109 | ||||
Allowance for loan losses, start of period | 11,325 | 6,682 | 15,468 | ||
Provision for (reversal of) credit losses on loans | 8,302 | 817 | 10,507 | (8,027) | |
Gross charge-offs | (10,413) | 0 | (10,413) | 0 | |
Gross recoveries | 2 | 7 | 13 | 65 | |
Total net (charge-offs) recoveries | (10,411) | 7 | (10,400) | 65 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 9,216 | 7,506 | 9,216 | 7,506 | |
Consumer lending | Residential loan | Single-family residential | |||||
Allowance for loan losses | |||||
Allowance for loan losses, December 31, 2022 | 35,564 | ||||
Allowance for loan losses, start of period | 51,513 | 21,840 | 17,160 | ||
Provision for (reversal of) credit losses on loans | 3,353 | 6,182 | 19,296 | 10,569 | |
Gross charge-offs | 0 | (775) | 0 | (775) | |
Gross recoveries | 64 | 16 | 69 | 309 | |
Total net (charge-offs) recoveries | 64 | (759) | 69 | (466) | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 54,930 | 27,263 | 54,930 | 27,263 | |
Consumer lending | HELOCs | |||||
Allowance for loan losses | |||||
Allowance for loan losses, December 31, 2022 | 4,475 | ||||
Allowance for loan losses, start of period | 4,526 | 3,220 | 3,435 | ||
Provision for (reversal of) credit losses on loans | (705) | 99 | (569) | 59 | |
Gross charge-offs | (41) | 0 | (138) | (193) | |
Gross recoveries | 15 | 5 | 26 | 23 | |
Total net (charge-offs) recoveries | (26) | 5 | (112) | (170) | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 3,795 | 3,324 | 3,795 | 3,324 | |
Consumer lending | Other consumer | |||||
Allowance for loan losses | |||||
Allowance for loan losses, December 31, 2022 | 1,560 | ||||
Allowance for loan losses, start of period | 1,260 | 1,449 | 1,924 | ||
Provision for (reversal of) credit losses on loans | 456 | 255 | 244 | (140) | |
Gross charge-offs | (13) | (10) | (101) | (90) | |
Gross recoveries | 0 | 0 | 0 | 0 | |
Total net (charge-offs) recoveries | (13) | (10) | (101) | (90) | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | |
Allowance for loan losses, end of period | $ 1,703 | $ 1,694 | 1,703 | $ 1,694 | |
Accounting Standards Update 2022-02 | |||||
Allowance for loan losses | |||||
Impact of ASU 2022-02 adoption | 6,028 | ||||
Allowance for loan losses, start of period | $ (6,000) | ||||
Accounting Standards Update 2022-02 | Commercial lending | Commercial and industrial (“C&I”) | |||||
Allowance for loan losses | |||||
Impact of ASU 2022-02 adoption | 5,683 | ||||
Accounting Standards Update 2022-02 | Commercial lending | CRE | |||||
Allowance for loan losses | |||||
Impact of ASU 2022-02 adoption | 337 | ||||
Accounting Standards Update 2022-02 | Commercial lending | Residential loan | Multifamily residential | |||||
Allowance for loan losses | |||||
Impact of ASU 2022-02 adoption | 6 | ||||
Accounting Standards Update 2022-02 | Commercial lending | Construction and land | |||||
Allowance for loan losses | |||||
Impact of ASU 2022-02 adoption | 0 | ||||
Accounting Standards Update 2022-02 | Consumer lending | Residential loan | Single-family residential | |||||
Allowance for loan losses | |||||
Impact of ASU 2022-02 adoption | 1 | ||||
Accounting Standards Update 2022-02 | Consumer lending | HELOCs | |||||
Allowance for loan losses | |||||
Impact of ASU 2022-02 adoption | 1 | ||||
Accounting Standards Update 2022-02 | Consumer lending | Other consumer | |||||
Allowance for loan losses | |||||
Impact of ASU 2022-02 adoption | $ 0 |
Loans Receivable and Allowan_18
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for unfunded credit reserves | ||||
Allowance for unfunded credit commitments, beginning of period | $ 26,200 | |||
Allowance for unfunded credit commitments, end of period | $ 33,600 | 33,600 | ||
Provision for credit losses | 42,000 | $ 27,000 | 88,000 | $ 48,500 |
Unfunded Credit Commitments | ||||
Allowance for unfunded credit reserves | ||||
Allowance for unfunded credit commitments, beginning of period | 29,728 | 24,304 | 26,264 | 27,514 |
Provision for (reversal of) credit losses on unfunded credit commitments | 3,864 | (274) | 7,319 | (3,495) |
Foreign currency translation adjustment | (3) | 11 | 6 | 22 |
Allowance for unfunded credit commitments, end of period | $ 33,589 | $ 24,041 | $ 33,589 | $ 24,041 |
Loans Receivable and Allowan_19
Loans Receivable and Allowance for Credit Losses - Loan Purchases, Sales and Transfers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | $ 227,189 | $ 112,363 | $ 507,215 | $ 463,769 |
Loans transferred from held-for-sale to held-for-investment | 631 | |||
Sales | 228,868 | 127,165 | 532,289 | 446,753 |
Purchases | 160,359 | 57,662 | 432,430 | 599,422 |
Writeoff | 3,600 | 8,700 | 4,200 | 8,900 |
Originated | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Sales | 204,100 | 86,200 | 407,300 | 253,900 |
Loans sold in secondary market | Purchased | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Sales | 24,700 | 40,900 | 125,000 | 192,900 |
Commercial lending | Commercial and industrial (“C&I”) | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 201,299 | 59,069 | 469,571 | 378,841 |
Loans transferred from held-for-sale to held-for-investment | 0 | |||
Sales | 199,511 | 87,597 | 491,178 | 375,100 |
Purchases | 19,588 | 56,507 | 80,550 | 361,169 |
Commercial lending | CRE | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 25,890 | 33,616 | 29,490 | 65,250 |
Loans transferred from held-for-sale to held-for-investment | 0 | |||
Sales | 29,357 | 33,616 | 32,957 | 65,250 |
Purchases | 0 | 0 | 0 | 0 |
Commercial lending | Construction and land | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 0 | 8,154 | ||
Sales | 0 | 8,154 | ||
Purchases | 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 | 14,500 | 14,500 | ||
Loans transferred from held-for-sale to held-for-investment | 0 | |||
Sales | 0 | 0 | ||
Purchases | 0 | 0 | ||
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 | 5,178 | 0 | 5,178 |
Loans transferred from held-for-sale to held-for-investment | 631 | |||
Sales | 0 | 5,952 | 0 | 6,403 |
Purchases | $ 140,771 | $ 1,155 | $ 351,880 | $ 238,253 |
Investments in Qualified Affo_3
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities -Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Minimum compliance period for qualified affordable housing partnerships to fully utilize the tax credits (in years) | 15 years | ||
Rayliant Global Advisors Limited | |||
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Equity method investment, ownership (percent) | 49.99% | 49.99% | |
Payments to acquire equity method investments | $ 94.7 | ||
Equity method investment, difference between carrying amount and underlying equity | 100.7 | $ 100.7 | |
Equity securities without readily determinable fair values | $ 110.9 | 110.9 | |
Asset Acquisition, Contingent Consideration, Number of Shares | 349,138 | ||
Rayliant Global Advisors Limited | Performance-based RSUs | Minimum | |||
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Shares based upon Rayliant’s achievement of specified financial performance conditions (as percentage) | 20% | ||
Rayliant Global Advisors Limited | Performance-based RSUs | Maximum | |||
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Shares based upon Rayliant’s achievement of specified financial performance conditions (as percentage) | 200% | ||
Tax credit investments | |||
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Equity securities | $ 23.6 | 23.6 | $ 24 |
Investments in Tax Credit and Other Investments and Other Assets | |||
Investments in Tax Credit and Other Investments, Net [Line Items] | |||
Equity securities without readily determinable fair values | $ 148 | $ 148 | $ 36.5 |
Investments in Qualified Affo_4
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities - Schedule of Investments and Unfunded Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Investments in qualified affordable housing partnerships, net | $ 412,004 | $ 413,253 |
Investments in tax credit and other investments, net | 489,555 | 350,003 |
Total | 901,559 | 763,256 |
Liabilities - Unfunded Commitments | ||
Investments in qualified affordable housing partnerships, net - liabilities unfunded commitments | 252,552 | 266,654 |
Investments in tax credit and other investments, net - liabilities unfunded commitments | 345,072 | 185,797 |
Total | $ 597,624 | $ 452,451 |
Investments in Qualified Affo_5
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities - Summary of Additional Information Related to the Investments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments in qualified housing partnerships, net: | ||||
Tax credits and other tax benefits recognized | $ 15,660,000 | $ 13,180,000 | $ 47,058,000 | $ 38,764,000 |
Amortization expense included in income tax expense | 11,587,000 | 10,431,000 | 34,759,000 | 30,498,000 |
Investments in tax credit and other investments, net: | ||||
Amortization of tax credit and other investments | 49,694,000 | 19,874,000 | 115,718,000 | 48,753,000 |
Unrealized losses on equity securities with readily determinable values | (674,000) | (1,014,000) | (682,000) | (2,958,000) |
Historic Tax Credit Investment | ||||
Investments in tax credit and other investments, net: | ||||
Pre-tax impairment charge or recovery | $ (790,000) | $ 0 | $ 831,000 | $ 0 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 465,697 | $ 465,697 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term Debt - Schedule of Short-Term Borrowings (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | ||
Interest Rate | 4.37% | |
Short-term borrowings | $ 4,500,000,000 | $ 0 |
Asset Pledged as Collateral with Right | Notes Payable, Other Payables | ||
Short-Term Debt [Line Items] | ||
Short-term borrowings | 4,340,000,000 | |
Unused borrowing capacity, amount | $ 238,300,000 | $ 0 |
Short-Term Borrowings and Lon_4
Short-Term Borrowings and Long-Term Debt - Long-term Debt (Details) - Subordinated Debt - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt total | $ 148.2 | $ 148 |
Minimum | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.02% | 6.12% |
Long-term debt remaining maturities (in years) | 11 years 1 month 6 days | |
Maximum | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.57% | 6.67% |
Long-term debt remaining maturities (in years) | 14 years |
Commitments and Contingencies -
Commitments and Contingencies - Credit-Related Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loan commitments | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | $ 4,650,619 | |
Expire After One Year Through Three Years | 3,689,245 | |
Expire After Three Years Through Five Years | 1,037,254 | |
Expire After Five Years | 139,325 | |
Total | 9,516,443 | $ 8,211,571 |
Commercial letters of credit and SBLCs | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | 875,757 | |
Expire After One Year Through Three Years | 405,377 | |
Expire After Three Years Through Five Years | 122,255 | |
Expire After Five Years | 1,124,405 | |
Total | 2,527,794 | 2,291,966 |
Commitments to Extend Credit | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | 5,526,376 | |
Expire After One Year Through Three Years | 4,094,622 | |
Expire After Three Years Through Five Years | 1,159,509 | |
Expire After Five Years | 1,263,730 | |
Total | $ 12,044,237 | $ 10,503,537 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments to Extend Credit | ||
Letters of credit | $ 2,530,000 | $ 2,290,000 |
Allowance for unfunded credit commitments | 33,600 | 26,200 |
Loans Sold or Securitized With Recourse | Single Family and Multi-family Residential Loans | Loans Sold or Securitized with Recourse | ||
Commitments to Extend Credit | ||
Allowance for unfunded credit commitments | 35 | 37 |
Standby Letters of Credit | ||
Commitments to Extend Credit | ||
Letters of credit | 2,500,000 | 2,270,000 |
Commercial Letters of Credit | ||
Commitments to Extend Credit | ||
Letters of credit | $ 32,700 | $ 21,600 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Guarantor obligation, maximum potential future payment [Abstract] | ||
Expire in One Year or Less | $ 28 | |
Expire After One Year Through Three Years | 23 | |
Expire After Three Years Through Five Years | 94 | |
Expire After Five Years | 20,943 | |
Total | 21,088 | $ 21,777 |
Carrying Value | 25,979 | 28,101 |
Single Family Residential | ||
Guarantor obligation, maximum potential future payment [Abstract] | ||
Expire in One Year or Less | 28 | |
Expire After One Year Through Three Years | 23 | |
Expire After Three Years Through Five Years | 28 | |
Expire After Five Years | 6,013 | |
Total | 6,092 | 6,781 |
Carrying Value | 6,092 | 6,781 |
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 | 66 | |
Expire After Five Years | 14,930 | |
Total | 14,996 | 14,996 |
Carrying Value | $ 19,887 | $ 21,320 |
Stock Compensation Plans - Summ
Stock Compensation Plans - Summary of Total Share-Based Compensation Expense and Related Net Tax (Deficiencies) Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock compensation costs | $ 9,495 | $ 12,329 | $ 29,934 | $ 29,338 |
Related net tax (deficiencies) benefits for stock compensation plans | $ (18) | $ 1 | $ 8,797 | $ 5,269 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
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] | |
Total unrecognized compensation cost | $ 17.9 |
Weighted average period to recognize unrecognized compensation cost | 1 year 10 months 24 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] | |
Total unrecognized compensation cost | $ 32.2 |
Weighted average period to recognize unrecognized compensation cost | 1 year 10 months 24 days |
Stock Compensation Plans - Su_2
Stock Compensation Plans - Summary of Activity for Time-Based and Performance-Based RSUs (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Time-Based RSUs | |
Shares | |
Outstanding, at beginning of period (in shares) | shares | 1,296,866 |
Granted (in shares) | shares | 500,180 |
Vested (in shares) | shares | (522,029) |
Forfeited (in shares) | shares | (53,379) |
Outstanding, at end of period (in shares) | shares | 1,221,638 |
Weighted-Average Grant Date Fair Value | |
Outstanding, at beginning of period (in dollars per share) | $ / shares | $ 60.77 |
Granted (in dollars per share) | $ / shares | 73.73 |
Vested (in dollars per share) | $ / shares | 40.79 |
Forfeited (in dollars per share) | $ / shares | 74 |
Outstanding, at end of period (in dollars per share) | $ / shares | $ 74.04 |
Performance-Based RSUs | |
Shares | |
Outstanding, at beginning of period (in shares) | shares | 332,510 |
Granted (in shares) | shares | 96,271 |
Vested (in shares) | shares | (152,558) |
Forfeited (in shares) | shares | 0 |
Outstanding, at end of period (in shares) | shares | 276,223 |
Weighted-Average Grant Date Fair Value | |
Outstanding, at beginning of period (in dollars per share) | $ / shares | $ 60.40 |
Granted (in dollars per share) | $ / shares | 57.50 |
Vested (in dollars per share) | $ / shares | 39.39 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding, at end of period (in dollars per share) | $ / shares | $ 70.99 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic: | ||||
Net income | $ 287,738 | $ 295,339 | $ 922,208 | $ 791,320 |
Weighted-average number of shares outstanding (in shares) | 141,485 | 140,917 | 141,356 | 141,453 |
Basic EPS (in dollars per share) | $ 2.03 | $ 2.10 | $ 6.52 | $ 5.59 |
Diluted: | ||||
Net income | $ 287,738 | $ 295,339 | $ 922,208 | $ 791,320 |
Weighted-average number of shares outstanding (in shares) | 141,485 | 140,917 | 141,356 | 141,453 |
Add: Dilutive impact of unvested RSUs (in shares) | 637 | 1,094 | 688 | 1,148 |
Diluted weighted-average number of shares outstanding (in shares) | 142,122 | 142,011 | 142,044 | 142,601 |
Diluted EPS (in dollars per share) | $ 2.02 | $ 2.08 | $ 6.49 | $ 5.55 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
RSUs | ||||
Stockholders' Equity and Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares (in shares) | 575 | 61 | 350 | 58 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 6,461,697 | $ 5,609,482 | $ 5,984,612 | $ 5,837,218 |
Other comprehensive loss | (93,445) | (199,384) | (109,748) | (709,651) |
Ending balance | 6,596,706 | 5,660,668 | 6,596,706 | 5,660,668 |
Debt Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (681,536) | (554,781) | (694,815) | (85,703) |
Net unrealized (losses) gains arising during the period | (72,691) | (161,445) | (72,034) | (635,664) |
Amounts reclassified from AOCI | 2,870 | 3,256 | 15,492 | 8,397 |
Other comprehensive loss | (69,821) | (158,189) | (56,542) | (627,267) |
Ending balance | (751,357) | (712,970) | (751,357) | (712,970) |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (74,805) | (30,846) | (49,531) | 257 |
Net unrealized (losses) gains arising during the period | (44,347) | (34,423) | (91,468) | (63,232) |
Amounts reclassified from AOCI | 17,013 | 1,154 | 38,860 | (1,140) |
Other comprehensive loss | (27,334) | (33,269) | (52,608) | (64,372) |
Ending balance | (102,139) | (64,115) | (102,139) | (64,115) |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (25,591) | (15,021) | (21,283) | (4,935) |
Net unrealized (losses) gains arising during the period | 3,710 | (7,926) | (598) | (18,012) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive loss | 3,710 | (7,926) | (598) | (18,012) |
Ending balance | (21,881) | (22,947) | (21,881) | (22,947) |
AOCI, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (781,932) | (600,648) | (765,629) | (90,381) |
Net unrealized (losses) gains arising during the period | (113,328) | (203,794) | (164,100) | (716,908) |
Amounts reclassified from AOCI | 19,883 | 4,410 | 54,352 | 7,257 |
Other comprehensive loss | (93,445) | (199,384) | (109,748) | (709,651) |
Ending balance | $ (875,377) | $ (800,032) | $ (875,377) | $ (800,032) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Before-Tax | ||||
Net change | $ (134,036) | $ (278,005) | $ (154,395) | $ (997,274) |
Tax Effect | ||||
Net change | 40,591 | 78,621 | 44,647 | 287,623 |
Net-of-Tax | ||||
Other comprehensive loss | (93,445) | (199,384) | (109,748) | (709,651) |
Debt Securities | ||||
Before-Tax | ||||
Net unrealized losses on AFS debt securities arising during the period | (102,262) | (742,132) | ||
Unrealized losses on debt securities transferred from AFS to HTM | 0 | (160,416) | ||
Net realized losses (gains) on AFS debt securities reclassified into net income | 10,000 | (1,306) | ||
Amortization of unrealized losses on transferred securities | 4,075 | 4,623 | 11,994 | 13,228 |
Net unrealized losses arising during the period | (103,183) | (229,246) | ||
Net change | (99,108) | (224,623) | (80,268) | (890,626) |
Tax Effect | ||||
Net unrealized losses on AFS debt securities arising during the period | 30,228 | 219,459 | ||
Unrealized losses on debt securities transferred from AFS to HTM | 0 | 47,425 | ||
Net realized losses (gains) on AFS debt securities reclassified into net income | (2,956) | 386 | ||
Amortization of unrealized losses on transferred securities | (1,205) | (1,367) | (3,546) | (3,911) |
Net unrealized losses arising during the period | 30,492 | 67,801 | ||
Net change | 29,287 | 66,434 | 23,726 | 263,359 |
Net-of-Tax | ||||
Net unrealized losses on AFS debt securities arising during the period | (72,034) | (522,673) | ||
Unrealized losses on debt securities transferred from AFS to HTM | 0 | (112,991) | ||
Net realized losses (gains) on AFS debt securities reclassified into net income | 7,044 | (920) | ||
Amortization of unrealized losses on transferred securities | 2,870 | 3,256 | 8,448 | 9,317 |
Net unrealized losses arising during the period | (72,691) | (161,445) | (72,034) | (635,664) |
Net realized losses (gains) reclassified into net income | 2,870 | 3,256 | 15,492 | 8,397 |
Other comprehensive loss | (69,821) | (158,189) | (56,542) | (627,267) |
Cash Flow Hedges | ||||
Before-Tax | ||||
Net unrealized losses arising during the period | (62,715) | (48,325) | (129,329) | (88,771) |
Net realized losses (gains) reclassified into net income | 24,059 | 1,619 | 54,955 | (1,601) |
Net change | (38,656) | (46,706) | (74,374) | (90,372) |
Tax Effect | ||||
Net unrealized losses arising during the period | 18,368 | 13,902 | 37,861 | 25,539 |
Net realized losses (gains) reclassified into net income | (7,046) | (465) | (16,095) | 461 |
Net change | 11,322 | 13,437 | 21,766 | 26,000 |
Net-of-Tax | ||||
Net unrealized losses arising during the period | (44,347) | (34,423) | (91,468) | (63,232) |
Net realized losses (gains) reclassified into net income | 17,013 | 1,154 | 38,860 | (1,140) |
Other comprehensive loss | (27,334) | (33,269) | (52,608) | (64,372) |
Foreign Currency Translation Adjustments | ||||
Before-Tax | ||||
Net unrealized losses arising during the period | 3,728 | (6,676) | 247 | (16,276) |
Net change | 3,728 | (6,676) | 247 | (16,276) |
Tax Effect | ||||
Net unrealized losses arising during the period | (18) | (1,250) | (845) | (1,736) |
Net change | (18) | (1,250) | (845) | (1,736) |
Net-of-Tax | ||||
Net unrealized losses arising during the period | 3,710 | (7,926) | (598) | (18,012) |
Net realized losses (gains) reclassified into net income | 0 | 0 | 0 | 0 |
Other comprehensive loss | $ 3,710 | $ (7,926) | $ (598) | $ (18,012) |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 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 | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information | |||||
Net interest income (loss) before provision for credit losses | $ 570,813 | $ 551,809 | $ 1,737,420 | $ 1,440,374 | |
Provision for credit losses | 42,000 | 27,000 | 88,000 | 48,500 | |
Noninterest income (loss) | 76,752 | 75,552 | 215,361 | 233,739 | |
Noninterest expense | 252,014 | 215,973 | 732,250 | 602,283 | |
INCOME BEFORE INCOME TAXES | 353,551 | 384,388 | 1,132,531 | 1,023,330 | |
Segment net income (loss) | 287,738 | 295,339 | 922,208 | 791,320 | |
Segment assets | 68,289,458 | 62,576,061 | 68,289,458 | 62,576,061 | $ 64,112,150 |
Consumer and Business Banking | |||||
Segment Reporting Information | |||||
Net interest income (loss) before provision for credit losses | 315,409 | 326,411 | 927,173 | 823,998 | |
Provision for credit losses | 1,633 | 8,974 | 22,169 | 14,976 | |
Noninterest income (loss) | 25,132 | 30,819 | 78,254 | 84,402 | |
Noninterest expense | 106,626 | 104,005 | 327,476 | 294,395 | |
INCOME BEFORE INCOME TAXES | 232,282 | 244,251 | 655,782 | 599,029 | |
Segment net income (loss) | 164,051 | 173,982 | 463,151 | 426,695 | |
Segment assets | 18,935,452 | 17,002,000 | 18,935,452 | 17,002,000 | |
Commercial Banking | |||||
Segment Reporting Information | |||||
Net interest income (loss) before provision for credit losses | 242,345 | 222,996 | 742,108 | 662,037 | |
Provision for credit losses | 40,367 | 18,026 | 65,831 | 33,524 | |
Noninterest income (loss) | 43,672 | 48,641 | 129,809 | 145,750 | |
Noninterest expense | 87,556 | 81,386 | 263,137 | 235,804 | |
INCOME BEFORE INCOME TAXES | 158,094 | 172,225 | 542,949 | 538,459 | |
Segment net income (loss) | 110,182 | 122,869 | 383,669 | 384,237 | |
Segment assets | 34,438,787 | 32,836,381 | 34,438,787 | 32,836,381 | |
Other | |||||
Segment Reporting Information | |||||
Net interest income (loss) before provision for credit losses | 13,059 | 2,402 | 68,139 | (45,661) | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest income (loss) | 7,948 | (3,908) | 7,298 | 3,587 | |
Noninterest expense | 57,832 | 30,582 | 141,637 | 72,084 | |
INCOME BEFORE INCOME TAXES | (36,825) | (32,088) | (66,200) | (114,158) | |
Segment net income (loss) | 13,505 | (1,512) | 75,388 | (19,612) | |
Segment assets | $ 14,915,219 | $ 12,737,680 | $ 14,915,219 | $ 12,737,680 |