Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 20, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | TEXAS CAPITAL BANCSHARES INC/TX | |
Entity Central Index Key | 1,077,428 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 45,956,858 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 98,807 | $ 109,496 |
Interest-bearing deposits | 2,594,170 | 1,626,374 |
Federal funds sold and securities purchased under resale agreements | 30,000 | 55,000 |
Securities, available-for-sale | 27,372 | 29,992 |
Loans held for sale, at fair value | 221,347 | 86,075 |
Loans held for investment, mortgage finance | 5,260,027 | 4,966,276 |
Loans held for investment (net of unearned income) | 12,502,513 | 11,745,674 |
Less: Allowance for loan losses | 167,397 | 141,111 |
Loans held for investment, net | 17,595,143 | 16,570,839 |
Mortgage servicing rights, net | 8,543 | 423 |
Premises and equipment, net | 21,766 | 23,561 |
Accrued interest receivable and other assets | 464,098 | 382,101 |
Goodwill and intangible assets, net | 19,748 | 19,960 |
Total assets | 21,080,994 | 18,903,821 |
Non-interest-bearing | ||
Non-interest-bearing | 7,984,208 | 6,386,911 |
Interest-bearing | 8,719,357 | 8,697,708 |
Total deposits | 16,703,565 | 15,084,619 |
Accrued interest payable | 5,339 | 5,097 |
Other liabilities | 177,641 | 153,433 |
Federal funds purchased and repurchase agreements | 95,982 | 143,051 |
Other borrowings | 2,019,463 | 1,500,000 |
Subordinated notes | 280,863 | 280,682 |
Trust preferred subordinated debentures | 113,406 | 113,406 |
Total liabilities | 19,396,259 | 17,280,288 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value, $1,000 liquidation value; Authorized shares - 10,000,000; Issued shares – 6,000,000 shares issued at June 30, 2015 and December 31, 2014, respectively | 150,000 | 150,000 |
Common stock, $.01 par value; Authorized shares - 100,000,000; Issued shares – 45,813,388 and 45,735,424 at June 30, 2015 and December 31, 2014, respectively | 460 | 459 |
Additional paid-in capital | 716,652 | 714,546 |
Retained earnings | 816,951 | 757,818 |
Treasury stock (shares at cost: 417 at June 30, 2016 and December 31, 2015) | (8) | (8) |
Accumulated other comprehensive income, net of taxes | 680 | 718 |
Total stockholders’ equity | 1,684,735 | 1,623,533 |
Total liabilities and stockholders’ equity | $ 21,080,994 | $ 18,903,821 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 6,000,000 | 6,000,000 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 45,953,328 | 45,874,224 |
Treasury Stock, shares | 417 | 417 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income | ||||
Interest and fees on loans | $ 168,064 | $ 151,606 | $ 323,949 | $ 290,780 |
Securities | 246 | 323 | 507 | 681 |
Federal funds sold and securities purchased under resale agreements | 382 | 118 | 754 | 234 |
Deposits in other banks | 3,750 | 1,327 | 7,035 | 2,587 |
Total interest income | 172,442 | 153,374 | 332,245 | 294,282 |
Interest expense | ||||
Deposits | 8,971 | 5,642 | 17,793 | 11,270 |
Federal funds purchased | 110 | 93 | 236 | 161 |
Repurchase agreements | 2 | 4 | 5 | 8 |
Other borrowings | 1,365 | 528 | 2,527 | 918 |
Subordinated notes | 4,191 | 4,191 | 8,382 | 8,382 |
Trust preferred subordinated debentures | 734 | 631 | 1,450 | 1,249 |
Total interest expense | 15,373 | 11,089 | 30,393 | 21,988 |
Net interest income | 157,069 | 142,285 | 301,852 | 272,294 |
Provision for credit losses | 16,000 | 14,500 | 46,000 | 25,500 |
Net interest income after provision for credit losses | 141,069 | 127,785 | 255,852 | 246,794 |
Non-interest income | ||||
Service charges on deposit accounts | 2,411 | 2,149 | 4,521 | 4,243 |
Trust fee income | 1,098 | 1,287 | 1,911 | 2,487 |
Bank owned life insurance (BOLI) income | 536 | 476 | 1,072 | 960 |
Brokered loan fees | 5,864 | 5,277 | 10,509 | 9,509 |
Swap fees | 1,105 | 1,035 | 1,412 | 3,021 |
Other | 2,918 | 2,547 | 5,804 | 4,818 |
Total non-interest income | 13,932 | 12,771 | 25,229 | 25,038 |
Non-interest expense | ||||
Salaries and employee benefits | 54,810 | 48,200 | 106,182 | 94,028 |
Net occupancy expense | 5,838 | 5,808 | 11,650 | 11,499 |
Marketing | 4,486 | 3,925 | 8,394 | 8,143 |
Legal and professional | 6,226 | 5,618 | 11,550 | 9,666 |
Communications and technology | 6,391 | 5,647 | 12,608 | 10,725 |
FDIC insurance assessment | 6,043 | 4,211 | 11,512 | 8,001 |
Allowance and other carrying costs for OREO | 260 | 6 | 496 | 15 |
Other | 10,201 | 7,861 | 18,683 | 15,716 |
Total non-interest expense | 94,255 | 81,276 | 181,075 | 157,793 |
Income before income taxes | 60,746 | 59,280 | 100,006 | 114,039 |
Income tax expense | 21,866 | 21,343 | 35,998 | 41,052 |
Net income | 38,880 | 37,937 | 64,008 | 72,987 |
Preferred stock dividends | 2,437 | 2,437 | 4,875 | 4,875 |
Net income available to common stockholders | 36,443 | 35,500 | 59,133 | 68,112 |
Other comprehensive income (loss) | ||||
Change in net unrealized gain on available-for-sale securities arising during period, before-tax | (22) | (321) | (58) | (397) |
Income tax benefit related to net unrealized gain on available-for-sale securities | (8) | (112) | (20) | (139) |
Other comprehensive loss, net of tax | (14) | (209) | (38) | (258) |
Comprehensive income | $ 38,866 | $ 37,728 | $ 63,970 | $ 72,729 |
Basic earnings per common share (usd per share) | $ 0.79 | $ 0.78 | $ 1.29 | $ 1.49 |
Diluted earnings per common share (usd per share) | $ 0.78 | $ 0.76 | $ 1.27 | $ 1.47 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Taxes |
Stockholders' equity, beginning balance at Dec. 31, 2014 | $ 1,484,190 | $ 150,000 | $ 457 | $ 709,738 | $ 622,714 | $ (8) | $ 1,289 |
Shares, outstanding, beginning balance at Dec. 31, 2014 | 6,000,000 | 45,735,424 | 417 | ||||
Comprehensive income: | |||||||
Net income | 72,987 | 72,987 | |||||
Change in unrealized gain on available-for-sale securities, net of taxes | (258) | (258) | |||||
Total comprehensive income | 72,729 | ||||||
Tax benefit related to exercise of stock-based awards | 736 | 736 | |||||
Stock-based compensation expense recognized in earnings | 2,103 | 2,103 | |||||
Issuance of preferred stock - value | 0 | $ 0 | 0 | ||||
Issuance of preferred stock - shares | 0 | ||||||
Preferred stock dividend | (4,875) | (4,875) | |||||
Issuance of stock related to stock-based awards - value | 354 | $ 1 | 355 | ||||
Issuance of stock related to stock-based awards - shares | 77,964 | ||||||
Stockholders' equity, ending balance at Jun. 30, 2015 | 1,554,529 | $ 150,000 | $ 458 | 712,222 | 690,826 | $ (8) | 1,031 |
Shares, outstanding, ending balance at Jun. 30, 2015 | 6,000,000 | 45,813,388 | 417 | ||||
Stockholders' equity, beginning balance at Dec. 31, 2015 | 1,623,533 | $ 150,000 | $ 459 | 714,546 | 757,818 | $ (8) | 718 |
Shares, outstanding, beginning balance at Dec. 31, 2015 | 6,000,000 | 45,874,224 | 417 | ||||
Comprehensive income: | |||||||
Net income | 64,008 | 64,008 | |||||
Change in unrealized gain on available-for-sale securities, net of taxes | (38) | (38) | |||||
Total comprehensive income | 63,970 | ||||||
Tax benefit related to exercise of stock-based awards | 450 | 450 | |||||
Stock-based compensation expense recognized in earnings | 2,243 | 2,243 | |||||
Preferred stock dividend | (4,875) | (4,875) | |||||
Issuance of stock related to stock-based awards - value | 586 | $ (1) | 587 | ||||
Issuance of stock related to stock-based awards - shares | 79,104 | ||||||
Stockholders' equity, ending balance at Jun. 30, 2016 | $ 1,684,735 | $ 150,000 | $ 460 | $ 716,652 | $ 816,951 | $ (8) | $ 680 |
Shares, outstanding, ending balance at Jun. 30, 2016 | 6,000,000 | 45,953,328 | 417 |
CONSOLIDATED STATEMENTS OF STO6
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Income tax benefit (expense) related to net unrealized gain on available-for-sale securities | $ 8 | $ 112 | $ 20 | $ 139 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Income from continuing operations | $ 64,008 | $ 72,987 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 46,000 | 25,500 |
Depreciation and amortization | 10,446 | 8,289 |
Accretion (Amortization) of Discounts and Premiums, Investments | (414) | 0 |
Bank owned life insurance (BOLI) income | (1,072) | (960) |
Stock-based compensation expense | (3,725) | (6,641) |
Excess tax benefits from stock-based compensation arrangements | (553) | (779) |
Purchases of loans held for sale | 876,516 | |
Proceeds from sales and repayments of loans held for sale | 743,769 | |
Capitalization of mortgage servicing rights | 8,805 | |
Loss on sale of assets | 12 | 24 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable and other assets | (71,805) | (50,485) |
Accrued interest payable and other liabilities | 23,094 | 12,090 |
Net cash provided by (used in) operating activities | (67,283) | 73,307 |
Investing activities | ||
Purchases of available-for-sale securities | (783) | 0 |
Maturities and calls of available-for-sale securities | 265 | 1,950 |
Principal payments received on available-for-sale securities | 3,080 | 4,011 |
Originations of mortgage finance loans | (45,811,787) | (45,359,254) |
Proceeds from pay-offs of mortgage finance loans | 45,518,036 | 44,554,964 |
Net increase in loans held for investment, excluding mortgage finance loans | (794,749) | (976,122) |
Purchase of premises and equipment, net | (1,166) | (2,635) |
Proceeds from sale of foreclosed assets | 62 | 1,164 |
Net cash used in investing activities | (1,087,042) | (1,775,922) |
Financing activities | ||
Net increase in deposits | 1,618,946 | 1,514,976 |
Costs from issuance of stock related to stock-based awards and warrants | (586) | (354) |
Preferred dividends paid | (4,875) | (4,875) |
Net increase in other borrowings | 519,463 | 299,995 |
Excess tax benefits from stock-based compensation arrangements | 553 | 779 |
Net increase (decrease) in Federal funds purchased and repurchase agreements | (47,069) | 16,331 |
Net cash provided by financing activities | 2,086,432 | 1,826,852 |
Net increase in cash and cash equivalents | 932,107 | 124,237 |
Cash and cash equivalents at beginning of period | 1,790,870 | 1,330,514 |
Cash and cash equivalents at end of period | 2,722,977 | 1,454,751 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 30,151 | 21,830 |
Cash paid during the period for income taxes | 43,309 | 42,934 |
Transfers from loans/leases to OREO and other repossessed assets | $ 18,540 | $ 1,177 |
OPERATIONS AND SUMMARY OF SIGNI
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and summary of significant accounting policies | OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Business Texas Capital Bancshares, Inc. (the “Company”), a Delaware corporation, was incorporated in November 1996 and commenced banking operations in December 1998. The consolidated financial statements of the Company include the accounts of Texas Capital Bancshares, Inc. and its wholly owned subsidiary, Texas Capital Bank, National Association (the “Bank”). We serve the needs of commercial businesses and successful professionals and entrepreneurs located in Texas as well as operate several lines of business serving a regional and national clientele of commercial borrowers. We are primarily a secured lender, with our greatest concentration of loans in Texas. Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements have been prepared without audit. Certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended December 31, 2015 , included in our Annual Report on Form 10-K filed with the SEC on February 18, 2016 (the “2015 Form 10-K”). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of stock-based compensation awards, the fair values of certain assets and liabilities and the status of contingencies are particularly susceptible to significant change in the near term. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents the computation of basic and diluted earnings per share (in thousands except per share data): Three months ended Six months ended 2016 2015 2016 2015 Numerator: Net income $ 38,880 $ 37,937 $ 64,008 $ 72,987 Preferred stock dividends 2,437 2,437 4,875 4,875 Net income available to common stockholders 36,443 35,500 $ 59,133 68,112 Denominator: Denominator for basic earnings per share— weighted average shares 45,924,281 45,790,093 45,906,508 45,774,461 Effect of employee stock-based awards (1) 124,974 229,378 121,524 219,448 Effect of warrants to purchase common stock 388,877 423,942 368,574 411,281 Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions 46,438,132 46,443,413 46,396,606 46,405,190 Basic earnings per common share $ 0.79 $ 0.78 $ 1.29 $ 1.49 Diluted earnings per common share $ 0.78 $ 0.76 $ 1.27 $ 1.47 (1) Stock options, SARs and RSUs outstanding of 252,754 at June 30, 2016 and 173,382 at June 30, 2015 have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2016 | |
Available-for-sale Securities [Abstract] | |
SECURITIES | SECURITIES At June 30, 2016 , our net unrealized gain on the available-for-sale securities portfolio was $1.0 million compared to $1.1 million at December 31, 2015 . As a percent of outstanding balances, the unrealized gain was 3.98% and 3.83% at June 30, 2016 , and December 31, 2015 , respectively. The increase in the unrealized gain percentage at June 30, 2016 results from the reduction in the portfolio balance due to paydowns and maturities. The following is a summary of available-for-sale securities (in thousands): June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Residential mortgage-backed securities $ 17,456 $ 1,177 $ — $ 18,633 Municipals 564 2 — 566 Equity securities (1) 8,304 60 (191 ) 8,173 $ 26,324 $ 1,239 $ (191 ) $ 27,372 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Residential mortgage-backed securities $ 20,536 $ 1,365 $ — $ 21,901 Municipals 828 3 — 831 Equity securities (1) 7,522 11 (273 ) 7,260 $ 28,886 $ 1,379 $ (273 ) $ 29,992 (1) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. The amortized cost and estimated fair value of available-for-sale securities are presented below by contractual maturity (in thousands, except percentage data): June 30, 2016 Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total Available-for-sale: Residential mortgage-backed securities: (1) Amortized cost $ 132 $ 3,196 $ 3,696 $ 10,432 $ 17,456 Estimated fair value 133 3,303 4,147 11,050 18,633 Weighted average yield (3) 5.54 % 4.70 % 5.54 % 2.69 % 3.68 % Municipals: (2) Amortized cost 275 289 — — 564 Estimated fair value 275 291 — — 566 Weighted average yield (3) 5.61 % 5.76 % — — 5.69 % Equity securities: (4) Amortized cost 8,304 — — — 8,304 Estimated fair value 8,173 — — — 8,173 Total available-for-sale securities: Amortized cost $ 26,324 Estimated fair value $ 27,372 December 31, 2015 Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total Available-for-sale: Residential mortgage-backed securities: (1) Amortized cost $ 214 $ 4,655 $ 4,265 $ 11,402 $ 20,536 Estimated fair value 217 4,837 4,747 12,100 21,901 Weighted average yield (3) 5.62 % 4.71 % 5.54 % 2.53 % 3.68 % Municipals: (2) Amortized cost 265 563 — — 828 Estimated fair value 265 566 — — 831 Weighted average yield (3) 5.46 % 5.69 % — % — % 5.62 % Equity securities: (4) Amortized cost 7,522 — — — 7,522 Estimated fair value 7,260 — — — 7,260 Total available-for-sale securities: Amortized cost $ 28,886 Estimated fair value $ 29,992 (1) Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. (2) Yields have been adjusted to a tax equivalent basis assuming a 35% federal tax rate. (3) Yields are calculated based on amortized cost. (4) These equity securities do not have a stated maturity. Securities with carrying values of approximately $15.8 million were pledged to secure certain borrowings and deposits at June 30, 2016 . Of the pledged securities at June 30, 2016 , approximately $3.8 million were pledged for certain deposits, and approximately $12.0 million were pledged for repurchase agreements. The following table discloses, as of June 30, 2016 and December 31, 2015 , our investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months (in thousands): June 30, 2016 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Equity securities $ — $ — $ 6,309 $ (191 ) $ 6,309 $ (191 ) December 31, 2015 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Equity securities $ — $ — $ 6,227 $ (273 ) $ 6,227 $ (273 ) At June 30, 2016 , we owned one security with an unrealized loss position. This security is a publicly traded equity fund and is subject to market pricing volatility. We do not believe this unrealized loss is “other-than-temporary”. We have evaluated the near-term prospects of the investment in relation to the severity and duration of the impairment and based on that evaluation have the ability and intent to hold the investment until recovery of fair value. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans and allowance for credit losses | LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR LOAN LOSSES At June 30, 2016 and December 31, 2015 , loans held for investment were as follows (in thousands): June 30, December 31, Commercial $ 7,178,364 $ 6,672,631 Mortgage finance 5,260,027 4,966,276 Construction 2,023,725 1,851,717 Real estate 3,228,853 3,139,197 Consumer 26,283 25,323 Leases 103,565 113,996 Gross loans held for investment 17,820,817 16,769,140 Deferred income (net of direct origination costs) (58,277 ) (57,190 ) Allowance for loan losses (167,397 ) (141,111 ) Total loans held for investment $ 17,595,143 $ 16,570,839 Commercial Loans and Leases. Our commercial loan portfolio is comprised of lines of credit for working capital and term loans and leases to finance equipment and other business assets. Our energy production loans are generally collateralized with proven reserves based on appropriate valuation standards and take into account the risk of oil and gas price volatility. Our commercial loans and leases are underwritten after carefully evaluating and understanding the borrower’s ability to operate profitably. Our underwriting standards are designed to promote relationship banking rather than to make loans on a transaction basis. Our lines of credit typically are limited to a percentage of the value of the assets securing the line. Lines of credit and term loans typically are reviewed annually, or more frequently, as needed, and are supported by accounts receivable, inventory, equipment and other assets of our clients’ businesses. Mortgage Finance Loans. Our mortgage finance loans consist of ownership interests purchased in single-family residential mortgages funded through our mortgage finance group. These loans are typically held on our balance sheet for 10 to 20 days. We have agreements with mortgage lenders and purchase interests in individual loans they originate. All loans are underwritten consistent with established programs for permanent financing with financially sound investors. Substantially all loans are conforming loans. June 30, 2016 and December 31, 2015 balances are stated net of $844.2 million and $454.8 million participations sold, respectively. Construction Loans. Our construction loan portfolio consists primarily of single- and multi-family residential properties and commercial projects used in manufacturing, warehousing, service or retail businesses. Our construction loans generally have terms of one to three years. We typically make construction loans to developers, builders and contractors that have an established record of successful project completion and loan repayment and have a substantial equity investment in the borrowers. Loan amounts are derived primarily from the Bank's evaluation of expected cash flows available to service debt from stabilized projects under hypothetically stressed conditions. Construction loans are also based in part upon estimates of costs and value associated with the completed project. Sources of repayment for these types of loans may be pre-committed permanent loans from other lenders, sales of developed property, or an interim loan commitment from us until permanent financing is obtained. The nature of these loans makes ultimate repayment sensitive to overall economic conditions. Borrowers may not be able to correct conditions of default in loans, increasing risk of exposure to classification, non-performing status, reserve allocation and actual credit loss and foreclosure. These loans typically have floating rates and commitment fees. Real Estate Loans. A portion of our real estate loan portfolio is comprised of loans secured by properties other than market risk or investment-type real estate. Market risk loans are real estate loans where the primary source of repayment is expected to come from the sale, permanent financing or lease of the real property collateral. We generally provide temporary financing for commercial and residential property. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Our real estate loans generally have maximum terms of five to seven years, and we provide loans with both floating and fixed rates. We generally avoid long-term loans for commercial real estate held for investment. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Appraised values may be highly variable due to market conditions and the impact of the inability of potential purchasers and lessees to obtain financing and a lack of transactions at comparable values. At June 30, 2016 and December 31, 2015 , we had a blanket floating lien on certain real estate-secured loans, mortgage finance loans and certain securities used as collateral for Federal Home Loan Bank (“FHLB”) borrowings. Summary of Loan Loss Experience The allowance for loan losses is comprised of specific reserves for impaired loans and an additional qualitative reserve based on our estimate of losses inherent in the portfolio at the balance sheet date, but not yet identified with specified loans. We consider the allowance at June 30, 2016 to be appropriate, given management's assessment of losses inherent in the portfolio as of the evaluation date, the significant growth in the loan and lease portfolio, current economic conditions in our market areas and other factors. The following tables summarize the credit risk profile of our loan portfolio by internally assigned grades and non-accrual status as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Grade: Pass $ 6,775,659 $ 5,260,027 $ 2,010,421 $ 3,182,419 $ 26,018 $ 99,169 $ 17,353,713 Special mention 87,456 — 1,525 35,056 — — 124,037 Substandard-accruing 152,624 — 11,779 8,574 265 4,396 177,638 Non-accrual 162,625 — — 2,804 — — 165,429 Total loans held for investment $ 7,178,364 $ 5,260,027 $ 2,023,725 $ 3,228,853 $ 26,283 $ 103,565 $ 17,820,817 December 31, 2015 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Grade: Pass $ 6,375,332 $ 4,966,276 $ 1,821,678 $ 3,085,463 $ 25,093 $ 103,560 $ 16,377,402 Special mention 111,911 — 13,090 30,585 3 334 155,923 Substandard-accruing 46,731 — 281 3,837 227 4,951 56,027 Non-accrual 138,657 — 16,668 19,312 — 5,151 179,788 Total loans held for investment $ 6,672,631 $ 4,966,276 $ 1,851,717 $ 3,139,197 $ 25,323 $ 113,996 $ 16,769,140 The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2016 and June 30, 2015 . Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. June 30, 2016 (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Leases Additional Qualitative Reserve Total Beginning balance $ 112,446 $ — $ 6,836 $ 13,381 $ 338 $ 3,931 $ 4,179 $ 141,111 Provision for loan losses 44,324 — 758 1,423 (28 ) (2,531 ) 1,710 45,656 Charge-offs 24,287 — — 528 — — — 24,815 Recoveries 5,334 — 34 21 11 45 — 5,445 Net charge-offs (recoveries) 18,953 — (34 ) 507 (11 ) (45 ) — 19,370 Ending balance $ 137,817 $ — $ 7,628 $ 14,297 $ 321 $ 1,445 $ 5,889 $ 167,397 Period end amount allocated to: Loans individually evaluated for impairment $ 30,775 $ — $ — $ 196 $ — $ — $ — $ 30,971 Loans collectively evaluated for impairment 107,042 — 7,628 14,101 321 1,445 5,889 136,426 Ending balance $ 137,817 $ — $ 7,628 $ 14,297 $ 321 $ 1,445 $ 5,889 $ 167,397 June 30, 2015 (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Leases Additional Qualitative Reserve Total Beginning balance $ 70,654 $ — $ 7,935 $ 15,582 $ 240 $ 1,141 $ 5,402 $ 100,954 Provision for loan losses 37,666 — (4,066 ) (6,509 ) 144 (831 ) (1,778 ) 24,626 Charge-offs 8,520 — — 346 62 — — 8,928 Recoveries 1,710 — 355 20 10 23 — 2,118 Net charge-offs (recoveries) 6,810 — (355 ) 326 52 (23 ) — 6,810 Ending balance $ 101,510 $ — $ 4,224 $ 8,747 $ 332 $ 333 $ 3,624 $ 118,770 Period end amount allocated to: Loans individually evaluated for impairment $ 13,717 $ — $ — $ 337 $ — $ 1 $ — $ 14,055 Loans collectively evaluated for impairment 87,793 — 4,224 8,410 332 332 3,624 104,715 Ending balance $ 101,510 $ — $ 4,224 $ 8,747 $ 332 $ 333 $ 3,624 $ 118,770 We have traditionally maintained an additional qualitative reserve component to compensate for the uncertainty and complexity in estimating loan and lease losses including factors and conditions that may not be fully reflected in the determination and application of the allowance allocation percentages. We believe the level of additional qualitative reserve at June 30, 2016 is warranted due to the continued uncertain economic environment which has produced losses, including those resulting from borrowers' misstatement of financial information or inaccurate certification of collateral values. Such losses are not necessarily correlated with historical loss trends or general economic conditions. Our methodology used to calculate the allowance considers historical losses; however, the historical loss rates for specific product types or credit risk grades may not fully incorporate the effects of continued weakness in the economy and continued volatility in the energy sector. Our recorded investment in loans as of June 30, 2016 , December 31, 2015 and June 30, 2015 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows (in thousands): June 30, 2016 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Loans individually evaluated for impairment $ 164,339 $ — $ — $ 4,210 $ — $ — $ 168,549 Loans collectively evaluated for impairment 7,014,025 5,260,027 2,023,725 3,224,643 26,283 103,565 17,652,268 Total $ 7,178,364 $ 5,260,027 $ 2,023,725 $ 3,228,853 $ 26,283 $ 103,565 $ 17,820,817 December 31, 2015 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Loans individually evaluated for impairment $ 140,479 $ — $ 16,668 $ 21,042 $ — $ 5,151 $ 183,340 Loans collectively evaluated for impairment 6,532,152 4,966,276 1,835,049 3,118,155 25,323 108,845 16,585,800 Total $ 6,672,631 $ 4,966,276 $ 1,851,717 $ 3,139,197 $ 25,323 $ 113,996 $ 16,769,140 June 30, 2015 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Loans individually evaluated for impairment $ 93,944 $ — $ 16,749 $ 10,565 $ — $ 6,437 $ 127,695 Loans collectively evaluated for impairment 6,294,763 4,906,415 1,820,783 2,823,440 23,789 90,588 15,959,778 Total $ 6,388,707 $ 4,906,415 $ 1,837,532 $ 2,834,005 $ 23,789 $ 97,025 $ 16,087,473 Generally we place loans on non-accrual when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining unpaid principal amount of the loan is deemed to be fully collectible. If collectability is questionable, then cash payments are applied to principal. As of June 30, 2016 , $ 820,000 of our non-accrual loans were earning on a cash basis compared to $ 884,000 at December 31, 2015 . A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. A loan held for investment is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due (both principal and interest) according to the terms of the loan agreement. In accordance with ASC 310 Receivables ("ASC 310"), we have also included all restructured loans in our impaired loan totals. The following tables detail our impaired loans, by portfolio class, as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Business loans $ 11,979 $ 14,228 $ — $ 8,943 $ — Energy 72,834 81,014 — 45,410 — Construction Market risk — — — 5,556 — Real estate Market risk — — — — — Commercial 2,091 2,091 — 6,879 18 Secured by 1-4 family — — — — — Consumer — — — — — Leases — — — 806 — Total impaired loans with no allowance recorded $ 86,904 $ 97,333 $ — $ 67,594 $ 18 With an allowance recorded: Commercial Business loans $ 24,891 $ 32,350 $ 7,675 $ 21,166 $ — Energy 54,635 58,398 23,100 82,613 12 Construction Market risk — — — — — Real estate Market risk 1,406 1,406 21 4,625 — Commercial — — — — — Secured by 1-4 family 713 713 175 410 — Consumer — — — — — Leases — — — 1,083 — Total impaired loans with an allowance recorded $ 81,645 $ 92,867 $ 30,971 $ 109,897 $ 12 Combined: Commercial Business loans $ 36,870 $ 46,578 $ 7,675 $ 30,109 $ — Energy 127,469 139,412 23,100 128,023 12 Construction Market risk — — — 5,556 — Real estate Market risk 1,406 1,406 21 4,625 — Commercial 2,091 2,091 — 6,879 18 Secured by 1-4 family 713 713 175 410 — Consumer — — — — — Leases — — — 1,889 — Total impaired loans $ 168,549 $ 190,200 $ 30,971 $ 177,491 $ 30 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Business loans $ 11,097 $ 13,529 $ — $ 17,311 $ — Energy 37,968 37,968 — 21,791 36 Construction Market risk 16,668 16,668 — 9,764 — Real estate Market risk — — — 3,352 — Commercial 15,353 15,353 — 4,364 24 Secured by 1-4 family — — — — — Consumer — — — — — Leases 2,417 2,417 — 3,233 — Total impaired loans with no allowance recorded $ 83,503 $ 85,935 $ — $ 59,815 $ 60 With an allowance recorded: Commercial Business loans $ 20,983 $ 25,300 $ 5,737 $ 31,131 $ — Energy 70,431 70,431 14,103 6,641 — Construction Market risk — — — — — Real estate Market risk 5,335 5,335 1,066 2,558 — Commercial — — — 306 — Secured by 1-4 family 354 354 125 1,580 — Consumer — — — 10 — Leases 2,734 2,734 2,436 302 — Total impaired loans with an allowance recorded $ 99,837 $ 104,154 $ 23,467 $ 42,528 $ — Combined: Commercial Business loans $ 32,080 $ 38,829 $ 5,737 $ 48,442 $ — Energy 108,399 108,399 14,103 28,432 36 Construction Market risk 16,668 16,668 — 9,764 — Real estate Market risk 5,335 5,335 1,066 5,910 — Commercial 15,353 15,353 — 4,670 24 Secured by 1-4 family 354 354 125 1,580 — Consumer — — — 10 — Leases 5,151 5,151 2,436 3,535 — Total impaired loans $ 183,340 $ 190,089 $ 23,467 $ 102,343 $ 60 Average impaired loans outstanding during the six months ended June 30, 2016 and 2015 totaled $177.5 million and $74.4 million , respectively. The table below provides an age analysis of our loans held for investment as of June 30, 2016 (in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days and Accruing(1) Total Past Due Non-accrual Current Total Commercial Business loans $ 20,136 $ 11,926 $ 5,019 $ 37,081 $ 35,155 $ 6,055,437 $ 6,127,673 Energy 880 5,790 — 6,670 127,470 916,551 1,050,691 Mortgage finance loans — — — — — 5,260,027 5,260,027 Construction Market risk 5,988 160 — 6,148 — 2,006,965 2,013,113 Secured by 1-4 family — — — — — 10,612 10,612 Real estate Market risk 2,730 1,461 935 5,126 — 2,425,918 2,431,044 Commercial 321 — — 321 2,091 642,310 644,722 Secured by 1-4 family 8,290 — 1,551 9,841 713 142,533 153,087 Consumer 462 — 238 700 — 25,583 26,283 Leases — — — — — 103,565 103,565 Total loans held for investment $ 38,807 $ 19,337 $ 7,743 $ 65,887 $ 165,429 $ 17,589,501 $ 17,820,817 (1) Loans past due 90 days and still accruing includes premium finance loans of $5.0 million . These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. Restructured loans are loans on which, due to the borrower’s financial difficulties, we have granted a concession that we would not otherwise consider for borrowers of similar credit quality. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of the two. Modifications of terms that could potentially qualify as a restructuring include reduction of the contractual interest rate, extension of the maturity date at a contractual interest rate lower than the current rate for new debt with similar risk, a reduction of the face amount of debt or forgiveness of either principal or accrued interest. At June 30, 2016 and December 31, 2015 , we had $249,000 in loans considered restructured that were not on non-accrual. These loans did not have unfunded commitments at June 30, 2016 or December 31, 2015 . Of the non-accrual loans at June 30, 2016 and December 31, 2015 , $33.3 million and $24.9 million , respectively, met the criteria for restructured. These loans had no unfunded commitments at their respective balance sheet dates. A loan continues to qualify as restructured until a consistent payment history or change in borrower’s financial condition has been evidenced, generally over no less than twelve months. Assuming that the restructuring agreement specifies an interest rate at the time of the restructuring that is greater than or equal to the rate that we are willing to accept for a new extension of credit with comparable risk, then the loan no longer has to be considered a restructuring if it is in compliance with the modified terms in calendar years after the year of the restructure. The following tables summarize, for the six months ended June 30, 2016 and 2015 , loans that were restructured during 2016 and 2015 (in thousands): June 30, 2016 Number of Restructured Loans Pre-Restructuring Outstanding Recorded Investment Post-Restructuring Outstanding Recorded Investment Energy loans 2 $ 14,235 $ 14,054 Commercial business loans — $ — $ — Total new restructured loans in 2016 2 $ 14,235 $ 14,054 June 30, 2015 Number of Restructured Loans Pre-Restructuring Outstanding Recorded Investment Post-Restructuring Outstanding Recorded Investment Commercial business loans 4 $ 18,329 $ 16,960 Total new restructured loans in 2015 4 $ 18,329 $ 16,960 The restructured loans generally include terms to temporarily place loans on interest only, extend the payment terms or reduce the interest rate. We did not forgive any principal on the above loans. The restructuring of the loans did not have a significant impact on our allowance for loan losses at June 30, 2016 or 2015 . The following table provides information on how restructured loans were modified during the six months ended June 30, 2016 and 2015 (in thousands): Six months ended June 30, 2016 2015 Extended maturity $ — $ — Adjusted payment schedule 12,735 — Combination of maturity extension and payment schedule adjustment 1,319 16,960 Total $ 14,054 $ 16,960 As of June 30, 2016 and 2015 , we did not have any loans that were restructured within the last 12 months that subsequently defaulted. |
OREO AND VALUATION ALLOWANCE FO
OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO | OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO The table below presents a summary of the activity related to OREO (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Beginning balance $ 17,585 $ 605 $ 278 $ 568 Additions 1,142 85 18,540 1,177 Sales — (81 ) (91 ) (1,136 ) Valuation allowance for OREO — — — — Direct write-downs — — — — Ending balance $ 18,727 $ 609 $ 18,727 $ 609 The addition to OREO relates to the foreclosure of two commercial properties during the six months ended June 30, 2016 . |
CERTAIN TRANSFERS OF FINANCIAL
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Transfers and Servicing [Abstract] | |
CERTAIN TRANSFERS OF FINANCIAL ASSETS | CERTAIN TRANSFERS OF FINANCIAL ASSETS Through our Mortgage Correspondent Aggregation ("MCA") business, we commit to purchase residential mortgage loans from correspondent lenders and deliver those loans into the secondary market via whole loan sales to independent third parties or in securitization transactions to government sponsored entities ("GSEs") such as Fannie Mae, Freddie Mac or Ginnie Mae. We have elected to carry these loans at fair value based on sales commitments and market quotes. Changes in the fair value of the loans held for sale are included in other non-interest income. Residential mortgage loans are subject to both credit and interest rate risk. Credit risk is managed through underwriting policies and procedures, including collateral requirements, which are generally accepted by the secondary loan markets. Exposure to interest rate fluctuations is partially managed through forward sales contracts, which set the price for loans that will be delivered in the next 60 to 90 days. The table below presents the unpaid principal balance of loans held for sale and related fair values at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Unpaid principal balance 209,617 82,853 Fair value 221,347 86,075 Fair value over/(under) unpaid principal balance 11,730 3,222 No loans held for sale were 90 days or more past due or on non-accrual as of June 30, 2016 and December 31, 2015 . The differences between the fair value and the aggregate unpaid principal balance include changes in fair value recorded at and subsequent to purchase, gains and losses on the related loan purchase commitment prior to purchase and premiums or discounts on acquired loans. We generally retain the right to service the loans sold, creating mortgage servicing rights ("MSRs") which are recorded as assets on our balance sheet. A summary of MSR activities for the six months ended June 30, 2016 is as follows (in thousands): Servicing asset: Balance, beginning of year(1) $ 423 Capitalized servicing rights 8,805 Amortization (271 ) Balance, end of period 8,957 Valuation allowance: Balance, beginning of year $ — Increase in valuation allowance $ 414 Balance, end of period $ 414 Servicing asset, net(1) $ 8,543 (1) Mortgage servicing rights are reported on the consolidated balance sheets at lower of cost or market. Carrying value and fair value were the same at June 30, 2016 and December 31, 2015 , respectively. At June 30, 2016 and December 31, 2015 , our servicing portfolio of residential mortgage loans sold included 2,885 and 168 loans, respectively, with an outstanding principal balance of $736.3 million and $39.0 million , respectively. In connection with the servicing of these loans, we maintain escrow funds for taxes and insurance in the name of investors, as well as collections in transit to investors. These escrow funds are segregated and held in separate non-interest-bearing bank accounts at the Bank. These deposits, included in total non-interest-bearing deposits on the consolidated balance sheets, were $9.0 million at June 30, 2016 and $240,000 at December 31, 2015 . As of June 30, 2016 and December 31, 2015 , management used the following assumptions to determine the fair value of MSRs: June 30, 2016 December 31, 2015 Average discount rates 10.02 % 9.76 % Expected prepayment speeds 12.25 % 9.66 % Weighted average life, in years 6.1 In conjunction with the sale and securitization of loans held for sale, we may be exposed to liability resulting from recourse agreements and repurchase agreements. If it is determined subsequent to our sale of a loan that the loan sold is in breach of the representations or warranties made in the applicable sale agreement, we may have an obligation to either (a) repurchase the loan for the unpaid principal balance, accrued interest and related advances, (b) indemnify the purchaser against any loss it suffers or (c) make the purchaser whole for the economic benefits of the loan. During the six months ended June 30, 2016 , we originated or purchased and sold approximately $712.5 million of mortgage loans to GSEs. Our repurchase, indemnification and make whole obligations vary based upon the terms of the applicable agreements, the nature of the asserted breach and the status of the mortgage loan at the time a claim is made. We establish reserves for estimated losses of this nature inherent in the origination of mortgage loans by estimating the losses inherent in the population of all loans sold based on trends in claims and actual loss severities experienced. The reserve will include accruals for probable contingent losses in addition to those identified in the pipeline of claims received. The estimation process is designed to include amounts based on actual losses experienced from actual repurchase activity. Because the MCA business commenced in late 2015, we have no historical data to support the establishment of a reserve. The baseline for the repurchase reserve uses historical loss factors obtained from industry data that are applied to loan pools originated and sold from September 2015 through June 30, 2016 . The historical industry data loss factors and experienced losses are accumulated for each sale vintage (year loan was sold) and applied to more recent sale vintages to estimate inherent losses not yet realized. Our estimated exposure related to these loans was $363,000 at June 30, 2016 and is recorded in other liabilities in the consolidated balance sheets. We had no losses due to repurchase, indemnification or make-whole obligations during the six months ended June 30, 2016 . |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 6 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit that involve varying degrees of credit risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit-worthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The table below summarizes our off-balance sheet financial instruments whose contract amounts represented credit risk (in thousands): June 30, 2016 December 31, 2015 Commitments to extend credit $ 5,444,161 $ 5,542,363 Standby letters of credit 189,178 182,219 |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory (and possibly additional discretionary) actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Basel III regulatory capital framework applicable to the Company and the Bank (the "Basel III Capital Rules") specifies, among other things, (i) a "Common Equity Tier 1" ("CET1") capital measure, (ii) a Tier 1 capital measure consisting of CET1 and "Additional Tier 1 Capital" instruments meeting specified requirements, (iii) capital conservation buffers with respect to each of the CET1, Tier 1 risk-based and total risk-based capital ratios providing for capital levels that exceed the minimum risk-based capital adequacy requirements and (iv) a leverage ratio requirement of 5.0%. In order to be well capitalized under the Basel III Capital Rules, our Bank must maintain a CET1 capital ratio, Tier 1 capital ratio and total capital ratio of greater than or equal to 6.5%, 8.0% and 10.0%, respectively. The capital conservation buffers required by the Basel III Capital Rules are subject to a three year phase-in period that began on January 1, 2016 and will be fully phased-in on January 1, 2019 at 2.5%. A financial institution with a conservation buffer of less than the required amount will be subject to limitations on capital distributions, including dividend payments and stock repurchases and executive bonus payments. Quantitative measures established by these regulations to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of CET1, Tier 1 and total capital to risk-weighted assets, and of Tier 1 capital to average assets, each as defined in the regulations. Management believes, as of June 30, 2016 , that the Company and the Bank met all capital adequacy requirements to which they are subject. Financial institutions are categorized as well capitalized or adequately capitalized, based on minimum total risk-based, Tier 1 risk-based capital, CET1 and Tier 1 leverage ratios. As shown in the table below, the Company’s capital ratios exceeded the regulatory definition of adequately capitalized as of June 30, 2016 , and December 31, 2015 . Based upon the information in its most recently filed call report, the Bank met the capital ratios necessary to be well capitalized. The regulatory authorities can apply changes in classification of assets and such changes may retroactively subject the Company to changes in capital ratios. Any such changes could result in reducing one or more capital ratios below well-capitalized status. In addition, a change may result in imposition of additional assessments by the FDIC or could result in regulatory actions that could have a material adverse effect on our financial condition and results of operations. Because our bank had less than $15.0 billion in total consolidated assets as of December 31, 2009, we are allowed to continue to classify our trust preferred securities, all of which were issued prior to May 19, 2010, as Tier 1 capital. The table below summarizes our capital ratios: June 30, December 31, Company Risk-based capital: CET1 7.37 % 7.47 % Tier 1 capital 8.64 % 8.81 % Total capital 10.86 % 11.05 % Tier 1 leverage 8.69 % 8.92 % Our mortgage finance loan volumes can increase significantly at month-end, causing a meaningful difference between ending balance and average balance for any period. At June 30, 2016 , our total mortgage finance loans were $5.3 billion compared to the average for the six months ended June 30, 2016 of $4.1 billion . As CET1, Tier 1 and total capital ratios are calculated using quarter-end risk-weighted assets and our mortgage finance loans are 100% risk-weighted, the quarter-end fluctuation in these balances can significantly impact our reported ratios. We manage capital allocated to mortgage finance loans based on changing trends in average balances, as well as the inherent risk associated with the assets which implies a risk weight that is significantly different than the regulatory risk weight, and do not believe that the quarter-end balance is representative of risk characteristics that would justify higher allocations. However, we continue to monitor our capital allocation to confirm that all capital levels remain above well-capitalized levels. Dividends that may be paid by subsidiary banks are routinely restricted by various regulatory authorities. The amount that can be paid in any calendar year without prior approval of the Bank’s regulatory agencies cannot exceed the lesser of the net profits (as defined) for that year plus the net profits for the preceding two calendar years, or retained earnings. The Basel III Capital Rules further limit the amount of dividends that may be paid by our bank. No dividends were declared or paid on common stock during the six months ended June 30, 2016 or 2015 . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2016 | |
Compensation Related Costs [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We have stock-based compensation plans under which equity-based compensation grants are made by the board of directors, or its designated committee. Grants are subject to vesting requirements. Under the plans, we may grant, among other things, nonqualified stock options, incentive stock options, restricted stock units ("RSUs"), stock appreciation rights ("SARs"), cash-based performance units or any combination thereof. Plans include grants for employees and directors. Total shares authorized under the plans are 2,550,000 . The fair value of our option and stock appreciation right ("SAR") grants are estimated at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because our employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide the best single measure of the fair value of employee stock options. Stock-based compensation consists of SARs, RSUs and cash-based performance units granted from 2010 through June 30, 2016 . Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Stock- based compensation expense recognized: SARs $ 77 $ 93 $ 159 $ 197 RSUs 1,034 1,019 2,084 1,906 Cash-based performance units $ 2,155 $ 3,172 1,482 4,538 Total compensation expense recognized $ 3,266 $ 4,284 $ 3,725 $ 6,641 June 30, 2016 (in thousands) SARs and RSUs Unrecognized compensation expense related to unvested awards $ 13,314 Weighted average period over which expense is expected to be recognized, in years 3.2 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value under GAAP and requires enhanced disclosures about fair value measurements. Fair value is defined under ASC 820 as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal market for the asset or liability in an orderly transaction between market participants on the measurement date. We determine the fair market values of our assets and liabilities measured at fair value on a recurring and nonrecurring basis using the fair value hierarchy as prescribed in ASC 820. The standard describes three levels of inputs that may be used to measure fair value as provided below. Level 1 Quoted prices in active markets for identical assets or liabilities. This category includes the assets and liabilities related to our non-qualified deferred compensation plan where values are based on quoted market prices for identical equity securities in an active market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include U.S. government and agency mortgage-backed debt securities, municipal bonds, and Community Reinvestment Act funds. This category includes loans held for sale and derivative assets and liabilities where values are obtained from independent pricing services. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair values requires significant management judgment or estimation. This category also includes impaired loans and OREO where collateral values have been based on third party appraisals; however, due to current economic conditions, comparative sales data typically used in appraisals may be unavailable or more subjective due to lack of market activity. Assets and liabilities measured at fair value at June 30, 2016 and December 31, 2015 are as follows (in thousands): Fair Value Measurements Using June 30, 2016 Level 1 Level 2 Level 3 Available-for-sale securities:(1) Residential mortgage-backed securities $ — $ 18,633 $ — Municipals — 566 — Equity securities(2) 811 7,362 — Loans held for sale (3) — 221,347 — Loans held for investment(4) (6) — — 19,064 OREO(5) (6) — — 18,727 Derivative assets(7) — 65,138 — Derivative liabilities(7) — 66,702 — Non-qualified deferred compensation liabilities (8) 811 — — December 31, 2015 Available-for-sale securities:(1) Residential mortgage-backed securities $ — $ 21,901 $ — Municipals — 831 — Equity securities(2) — 7,260 — Loans held for sale(3) — 86,075 — Loans(4) (6) — — 41,420 OREO(5) (6) — — 278 Derivative assets(7) — 35,292 — Derivative liabilities(7) — 35,420 — (1) Securities are measured at fair value on a recurring basis, generally monthly. (2) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. (3) Loans held for sale are measured at fair value on a recurring basis, generally monthly. (4) Includes impaired loans that have been measured for impairment at the fair value of the loan’s collateral. (5) OREO is transferred from loans to OREO at fair value less selling costs. (6) Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (7) Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (8) Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. Level 3 Valuations Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. Currently, we measure fair value for certain loans and OREO on a nonrecurring basis as described below. Loans held for investment During the six months ended June 30, 2016 and the year ended December 31, 2015 , certain impaired loans held for investment were re-evaluated and reported at fair value through a specific allocation of the allowance for loan losses based upon the fair value of the underlying collateral. The $19.1 million reported fair value above includes impaired loans held for investment at June 30, 2016 with a carrying value of $21.2 million that were reduced by specific allowance allocations totaling $2.1 million based on collateral valuations utilizing Level 3 valuation inputs. The $41.4 million reported fair value above includes impaired loans held for investment at December 31, 2015 with a carrying value of $49.7 million that were reduced by specific valuation allowance allocations totaling $8.3 million based on collateral valuations utilizing Level 3 valuation inputs. Fair values were based on third party appraisals. OREO Certain foreclosed assets, upon initial recognition, are recorded at fair value less estimated selling costs. At June 30, 2016 and December 31, 2015 , OREO had a carrying value of $18.7 million and $278,000 , respectively, with no specific valuation allowance. The fair value of OREO was computed based on third party appraisals, which are Level 3 valuation inputs. Fair Value of Financial Instruments Generally accepted accounting principles in the United States ("GAAP") require disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practical to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. This disclosure does not and is not intended to represent the fair value of the Company. A summary of the carrying amounts and estimated fair values of financial instruments is as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Cash and cash equivalents $ 2,722,977 $ 2,722,977 $ 1,790,870 $ 1,790,870 Securities, available-for-sale 27,372 27,372 29,992 29,992 Loans held for sale 221,347 221,347 86,075 86,075 Loans held for investment, net 17,595,143 17,598,060 16,570,839 16,576,297 Derivative assets 65,138 65,138 35,292 35,292 Deposits 16,703,565 16,704,143 15,084,619 15,085,080 Federal funds purchased 81,555 81,555 74,164 74,164 Customer repurchase agreements 14,427 14,427 68,887 68,887 Other borrowings 2,019,463 2,019,463 1,500,000 1,500,000 Subordinated notes 280,863 290,270 280,682 285,773 Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 Derivative liabilities 66,702 66,702 35,420 35,420 The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Cash and cash equivalents The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate their fair value, and these financial instruments are characterized as Level 1 assets in the fair value hierarchy. Securities, available-for-sale Within the other available-for-sale securities portfolio, we hold equity securities related to our non-qualified deferred compensation plan which are valued using quoted market prices for identical equity securities in an active market. These financial instruments are classified as Level 1 assets in the fair value hierarchy. The fair value of the remaining investment portfolio is based on prices obtained from independent pricing services which are based on quoted market prices for the same or similar securities, and these financial instruments are characterized as Level 2 assets in the fair value hierarchy. We have obtained documentation from the primary pricing service we use about their processes and controls over pricing. In addition, on a quarterly basis we independently verify the prices that we receive from the service provider using two additional independent pricing sources. Any significant differences are investigated and resolved. Loans held for sale Fair value for loans held for sale valued under the fair value option is derived from quoted market prices for similar loans, and these financial instruments are characterized as Level 2 assets in the fair value hierarchy. Loans held for investment, net Loans held for investment are characterized as Level 3 assets in the fair value hierarchy. For variable-rate loans held for investment that reprice frequently with no significant change in credit risk, fair values are generally based on carrying values. The fair value for all other loans held for investment is estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest approximates its fair value. Derivatives The estimated fair value of the interest rate swaps and caps is obtained from independent pricing services based on quoted market prices for the same or similar derivative contracts and these financial instruments are characterized as Level 2 assets in the fair value hierarchy. On a quarterly basis, we independently verify the fair value using an additional independent pricing source. Any significant differences are investigated and resolved. The derivative instruments related to the loans held for sale portfolio include loan purchase commitments and forward sales commitments. Loan purchase commitments are valued based upon the fair value of the underlying mortgage loans to be purchased, which is based on observable market data for similar loans. Forward sales commitments are valued based upon the quoted market prices from brokers. As such, these loan purchase commitments and forward sales commitments are classified as Level 2 assets in the fair value hierarchy. Deposits Deposits are characterized as Level 3 liabilities in the fair value hierarchy. The carrying amounts for variable-rate money market accounts approximate their fair value. Fixed-term certificates of deposit fair values are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities. Federal funds purchased, customer repurchase agreements, other borrowings, subordinated notes and trust preferred subordinated debentures The carrying value reported in the consolidated balance sheets for Federal funds purchased, customer repurchase agreements and other short-term, floating rate borrowings approximates their fair value, and these financial instruments are characterized as Level 2 assets in the fair value hierarchy. The fair value of any fixed rate short-term borrowings and trust preferred subordinated debentures are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar borrowings, and these financial instruments are characterized as Level 3 liabilities in the fair value hierarchy. The subordinated notes are publicly, though infrequently, traded and are valued based on market prices, and are characterized as Level 2 liabilities in the fair value hierarchy. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The fair value of derivative positions outstanding is included in accrued interest receivable and other assets and other liabilities in the accompanying consolidated balance sheets on a net basis when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. During the three and six months ended June 30, 2016 and 2015 , we entered into certain interest rate derivative positions that were not designated as hedging instruments. These derivative positions relate to transactions in which we enter into an interest rate swap, cap and/or floor with a customer while at the same time entering into an offsetting interest rate swap, cap and/or floor with another financial institution. In connection with each swap transaction, we agree to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows our customer to effectively convert a variable rate loan to a fixed rate. Because we act as an intermediary for our customer, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on our results of operations. During the three and six months ended June 30, 2016 , we entered into loan purchase commitment contracts with mortgage originators to purchase residential mortgage loans at a future date, as well as forward sales commitment contracts to sell residential mortgage loans at a future date. The notional amounts and estimated fair values of interest rate derivative positions outstanding at June 30, 2016 and December 31, 2015 are presented in the following tables (in thousands): June 30, 2016 December 31, 2015 Estimated Fair Value Estimated Fair Value Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Non-hedging interest rate derivatives: Financial institution counterparties: Commercial loan/lease interest rate swaps $ 1,058,433 $ — $ 63,639 $ 976,389 $ — $ 33,851 Commercial loan/lease interest rate caps 192,787 224 — 194,304 1,441 — Customer counterparties: Commercial loan/lease interest rate swaps 1,058,433 63,639 — 976,389 33,851 — Commercial loan/lease interest rate caps 192,787 — 224 194,304 — 1,441 Economic hedging interest rate derivatives: Loan purchase commitments 205,217 1,275 — 62,835 — 109 Forward sales commitments 399,500 — 2,839 143,200 — 19 Gross derivatives 65,138 66,702 35,292 35,420 Offsetting derivative assets/liabilities — — — — Net derivatives included in the consolidated balance sheets $ 65,138 $ 66,702 $ 35,292 $ 35,420 The weighted average received and paid interest rates for interest rate swaps outstanding at June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 December 31, 2015 Received Paid Received Paid Non-hedging interest rate swaps 2.90 % 4.61 % 2.96 % 4.72 % The weighted average strike rate for outstanding interest rate caps was 2.35% at June 30, 2016 and 2.34% at December 31, 2015 . Our credit exposure on interest rate swaps and caps is limited to the net favorable value and interest payments of all swaps and caps by each counterparty. In such cases collateral may be required from the counterparties involved if the net value of the swaps and caps exceeds a nominal amount considered to be immaterial . Our credit exposure, net of any collateral pledged, relating to interest rate swaps and caps was approximately $65.1 million at June 30, 2016 and approximately $35.3 million at December 31, 2015 , which primarily relates to bank customers. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap and cap values. At June 30, 2016 and December 31, 2015 , we had $68.1 million and $37.1 million , respectively, in cash collateral pledged for these derivatives included in interest-bearing deposits. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ("ASU 2016-13") requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 is effective for public companies for annual periods beginning after December 13, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We are in the process of evaluating the impact adoption of ASU 2016-13 will have on our consolidated financial statements and disclosures. ASU 2016-09 "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payments Accounting" ("ASU 2016-09") amended guidance with the intent to simplify accounting for share-based payment transaction, including the income tax consequences and classification of awards. Among other items, the update requires excess tax benefits and deficiencies to be recognized as a component of income taxes within the income statement rather than other comprehensive income as required in current guidance. ASU 2016-09 is effective for public companies for annual periods beginning after December 31, 2016 and is not expected to have a significant impact on our financial statements. ASU 2016-02 " Leases (Topic 842) " ("ASU 2016-02") requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 is effective for public companies for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. We have not yet selected a transition method as we are in the process of determining the effect of the standard on our financial statements and disclosures. ASU 2015-03 " Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs " ("ASU 2015-03") requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. We adopted ASU 2015-03 effective January 1, 2016 and applied its provisions retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $5.2 million and $5.3 million of unamortized debt issuance costs related to our Subordinated notes from other assets to subordinated notes within the consolidated balance sheets as of June 30, 2016 and December 31, 2015 , respectively. Other than this reclassification, the adoption of ASU 2015-03 did not have a material impact on our consolidated financial statements. ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. ASU 2014-09 was originally going to be effective for annual and interim periods beginning after December 15, 2016; however, the FASB issued ASU 2015-14 - "Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date" which deferred the effective date of ASU 2014-09 by one year to annual and interim periods beginning after December 15, 2017. ASU 2014-09 is not expected to have a significant impact on our consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Texas Capital Bancshares, Inc. (the “Company”), a Delaware corporation, was incorporated in November 1996 and commenced banking operations in December 1998. The consolidated financial statements of the Company include the accounts of Texas Capital Bancshares, Inc. and its wholly owned subsidiary, Texas Capital Bank, National Association (the “Bank”). We serve the needs of commercial businesses and successful professionals and entrepreneurs located in Texas as well as operate several lines of business serving a regional and national clientele of commercial borrowers. We are primarily a secured lender, with our greatest concentration of loans in Texas. |
Basis of Presentation | Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements have been prepared without audit. Certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended December 31, 2015 , included in our Annual Report on Form 10-K filed with the SEC on February 18, 2016 (the “2015 Form 10-K”). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of stock-based compensation awards, the fair values of certain assets and liabilities and the status of contingencies are particularly susceptible to significant change in the near term. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table presents the computation of basic and diluted earnings per share (in thousands except per share data): Three months ended Six months ended 2016 2015 2016 2015 Numerator: Net income $ 38,880 $ 37,937 $ 64,008 $ 72,987 Preferred stock dividends 2,437 2,437 4,875 4,875 Net income available to common stockholders 36,443 35,500 $ 59,133 68,112 Denominator: Denominator for basic earnings per share— weighted average shares 45,924,281 45,790,093 45,906,508 45,774,461 Effect of employee stock-based awards (1) 124,974 229,378 121,524 219,448 Effect of warrants to purchase common stock 388,877 423,942 368,574 411,281 Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions 46,438,132 46,443,413 46,396,606 46,405,190 Basic earnings per common share $ 0.79 $ 0.78 $ 1.29 $ 1.49 Diluted earnings per common share $ 0.78 $ 0.76 $ 1.27 $ 1.47 (1) Stock options, SARs and RSUs outstanding of 252,754 at June 30, 2016 and 173,382 at June 30, 2015 have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Available-for-sale Securities [Abstract] | |
Schedule of summary of securities | At June 30, 2016 , our net unrealized gain on the available-for-sale securities portfolio was $1.0 million compared to $1.1 million at December 31, 2015 . As a percent of outstanding balances, the unrealized gain was 3.98% and 3.83% at June 30, 2016 , and December 31, 2015 , respectively. The increase in the unrealized gain percentage at June 30, 2016 results from the reduction in the portfolio balance due to paydowns and maturities. |
Schedule of amortized cost and estimated fair value of securities | The amortized cost and estimated fair value of available-for-sale securities are presented below by contractual maturity (in thousands, except percentage data): June 30, 2016 Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total Available-for-sale: Residential mortgage-backed securities: (1) Amortized cost $ 132 $ 3,196 $ 3,696 $ 10,432 $ 17,456 Estimated fair value 133 3,303 4,147 11,050 18,633 Weighted average yield (3) 5.54 % 4.70 % 5.54 % 2.69 % 3.68 % Municipals: (2) Amortized cost 275 289 — — 564 Estimated fair value 275 291 — — 566 Weighted average yield (3) 5.61 % 5.76 % — — 5.69 % Equity securities: (4) Amortized cost 8,304 — — — 8,304 Estimated fair value 8,173 — — — 8,173 Total available-for-sale securities: Amortized cost $ 26,324 Estimated fair value $ 27,372 December 31, 2015 Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total Available-for-sale: Residential mortgage-backed securities: (1) Amortized cost $ 214 $ 4,655 $ 4,265 $ 11,402 $ 20,536 Estimated fair value 217 4,837 4,747 12,100 21,901 Weighted average yield (3) 5.62 % 4.71 % 5.54 % 2.53 % 3.68 % Municipals: (2) Amortized cost 265 563 — — 828 Estimated fair value 265 566 — — 831 Weighted average yield (3) 5.46 % 5.69 % — % — % 5.62 % Equity securities: (4) Amortized cost 7,522 — — — 7,522 Estimated fair value 7,260 — — — 7,260 Total available-for-sale securities: Amortized cost $ 28,886 Estimated fair value $ 29,992 (1) Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. (2) Yields have been adjusted to a tax equivalent basis assuming a 35% federal tax rate. (3) Yields are calculated based on amortized cost. (4) These equity securities do not have a stated maturity. |
Schedule of investment securities that have been in a continuous unrealized loss position for less or more than 12 months | The following table discloses, as of June 30, 2016 and December 31, 2015 , our investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months (in thousands): June 30, 2016 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Equity securities $ — $ — $ 6,309 $ (191 ) $ 6,309 $ (191 ) December 31, 2015 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Equity securities $ — $ — $ 6,227 $ (273 ) $ 6,227 $ (273 ) |
LOANS AND ALLOWANCE FOR LOAN 23
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of loans held for investments | At June 30, 2016 and December 31, 2015 , loans held for investment were as follows (in thousands): June 30, December 31, Commercial $ 7,178,364 $ 6,672,631 Mortgage finance 5,260,027 4,966,276 Construction 2,023,725 1,851,717 Real estate 3,228,853 3,139,197 Consumer 26,283 25,323 Leases 103,565 113,996 Gross loans held for investment 17,820,817 16,769,140 Deferred income (net of direct origination costs) (58,277 ) (57,190 ) Allowance for loan losses (167,397 ) (141,111 ) Total loans held for investment $ 17,595,143 $ 16,570,839 |
Schedule of the credit risk profile of loan portfolio by internally assigned grades and non-accrual status | The following tables summarize the credit risk profile of our loan portfolio by internally assigned grades and non-accrual status as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Grade: Pass $ 6,775,659 $ 5,260,027 $ 2,010,421 $ 3,182,419 $ 26,018 $ 99,169 $ 17,353,713 Special mention 87,456 — 1,525 35,056 — — 124,037 Substandard-accruing 152,624 — 11,779 8,574 265 4,396 177,638 Non-accrual 162,625 — — 2,804 — — 165,429 Total loans held for investment $ 7,178,364 $ 5,260,027 $ 2,023,725 $ 3,228,853 $ 26,283 $ 103,565 $ 17,820,817 December 31, 2015 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Grade: Pass $ 6,375,332 $ 4,966,276 $ 1,821,678 $ 3,085,463 $ 25,093 $ 103,560 $ 16,377,402 Special mention 111,911 — 13,090 30,585 3 334 155,923 Substandard-accruing 46,731 — 281 3,837 227 4,951 56,027 Non-accrual 138,657 — 16,668 19,312 — 5,151 179,788 Total loans held for investment $ 6,672,631 $ 4,966,276 $ 1,851,717 $ 3,139,197 $ 25,323 $ 113,996 $ 16,769,140 |
Schedule of activity in the reserve for loan losses by portfolio segment | The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2016 and June 30, 2015 . Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. June 30, 2016 (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Leases Additional Qualitative Reserve Total Beginning balance $ 112,446 $ — $ 6,836 $ 13,381 $ 338 $ 3,931 $ 4,179 $ 141,111 Provision for loan losses 44,324 — 758 1,423 (28 ) (2,531 ) 1,710 45,656 Charge-offs 24,287 — — 528 — — — 24,815 Recoveries 5,334 — 34 21 11 45 — 5,445 Net charge-offs (recoveries) 18,953 — (34 ) 507 (11 ) (45 ) — 19,370 Ending balance $ 137,817 $ — $ 7,628 $ 14,297 $ 321 $ 1,445 $ 5,889 $ 167,397 Period end amount allocated to: Loans individually evaluated for impairment $ 30,775 $ — $ — $ 196 $ — $ — $ — $ 30,971 Loans collectively evaluated for impairment 107,042 — 7,628 14,101 321 1,445 5,889 136,426 Ending balance $ 137,817 $ — $ 7,628 $ 14,297 $ 321 $ 1,445 $ 5,889 $ 167,397 June 30, 2015 (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Leases Additional Qualitative Reserve Total Beginning balance $ 70,654 $ — $ 7,935 $ 15,582 $ 240 $ 1,141 $ 5,402 $ 100,954 Provision for loan losses 37,666 — (4,066 ) (6,509 ) 144 (831 ) (1,778 ) 24,626 Charge-offs 8,520 — — 346 62 — — 8,928 Recoveries 1,710 — 355 20 10 23 — 2,118 Net charge-offs (recoveries) 6,810 — (355 ) 326 52 (23 ) — 6,810 Ending balance $ 101,510 $ — $ 4,224 $ 8,747 $ 332 $ 333 $ 3,624 $ 118,770 Period end amount allocated to: Loans individually evaluated for impairment $ 13,717 $ — $ — $ 337 $ — $ 1 $ — $ 14,055 Loans collectively evaluated for impairment 87,793 — 4,224 8,410 332 332 3,624 104,715 Ending balance $ 101,510 $ — $ 4,224 $ 8,747 $ 332 $ 333 $ 3,624 $ 118,770 |
Schedule of recorded investment in loans related to each balance in the allowance for loan losses | Our recorded investment in loans as of June 30, 2016 , December 31, 2015 and June 30, 2015 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows (in thousands): June 30, 2016 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Loans individually evaluated for impairment $ 164,339 $ — $ — $ 4,210 $ — $ — $ 168,549 Loans collectively evaluated for impairment 7,014,025 5,260,027 2,023,725 3,224,643 26,283 103,565 17,652,268 Total $ 7,178,364 $ 5,260,027 $ 2,023,725 $ 3,228,853 $ 26,283 $ 103,565 $ 17,820,817 December 31, 2015 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Loans individually evaluated for impairment $ 140,479 $ — $ 16,668 $ 21,042 $ — $ 5,151 $ 183,340 Loans collectively evaluated for impairment 6,532,152 4,966,276 1,835,049 3,118,155 25,323 108,845 16,585,800 Total $ 6,672,631 $ 4,966,276 $ 1,851,717 $ 3,139,197 $ 25,323 $ 113,996 $ 16,769,140 June 30, 2015 Commercial Mortgage Finance Construction Real Estate Consumer Leases Total Loans individually evaluated for impairment $ 93,944 $ — $ 16,749 $ 10,565 $ — $ 6,437 $ 127,695 Loans collectively evaluated for impairment 6,294,763 4,906,415 1,820,783 2,823,440 23,789 90,588 15,959,778 Total $ 6,388,707 $ 4,906,415 $ 1,837,532 $ 2,834,005 $ 23,789 $ 97,025 $ 16,087,473 |
Schedule of impaired loans, by portfolio class | The following tables detail our impaired loans, by portfolio class, as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Business loans $ 11,979 $ 14,228 $ — $ 8,943 $ — Energy 72,834 81,014 — 45,410 — Construction Market risk — — — 5,556 — Real estate Market risk — — — — — Commercial 2,091 2,091 — 6,879 18 Secured by 1-4 family — — — — — Consumer — — — — — Leases — — — 806 — Total impaired loans with no allowance recorded $ 86,904 $ 97,333 $ — $ 67,594 $ 18 With an allowance recorded: Commercial Business loans $ 24,891 $ 32,350 $ 7,675 $ 21,166 $ — Energy 54,635 58,398 23,100 82,613 12 Construction Market risk — — — — — Real estate Market risk 1,406 1,406 21 4,625 — Commercial — — — — — Secured by 1-4 family 713 713 175 410 — Consumer — — — — — Leases — — — 1,083 — Total impaired loans with an allowance recorded $ 81,645 $ 92,867 $ 30,971 $ 109,897 $ 12 Combined: Commercial Business loans $ 36,870 $ 46,578 $ 7,675 $ 30,109 $ — Energy 127,469 139,412 23,100 128,023 12 Construction Market risk — — — 5,556 — Real estate Market risk 1,406 1,406 21 4,625 — Commercial 2,091 2,091 — 6,879 18 Secured by 1-4 family 713 713 175 410 — Consumer — — — — — Leases — — — 1,889 — Total impaired loans $ 168,549 $ 190,200 $ 30,971 $ 177,491 $ 30 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Business loans $ 11,097 $ 13,529 $ — $ 17,311 $ — Energy 37,968 37,968 — 21,791 36 Construction Market risk 16,668 16,668 — 9,764 — Real estate Market risk — — — 3,352 — Commercial 15,353 15,353 — 4,364 24 Secured by 1-4 family — — — — — Consumer — — — — — Leases 2,417 2,417 — 3,233 — Total impaired loans with no allowance recorded $ 83,503 $ 85,935 $ — $ 59,815 $ 60 With an allowance recorded: Commercial Business loans $ 20,983 $ 25,300 $ 5,737 $ 31,131 $ — Energy 70,431 70,431 14,103 6,641 — Construction Market risk — — — — — Real estate Market risk 5,335 5,335 1,066 2,558 — Commercial — — — 306 — Secured by 1-4 family 354 354 125 1,580 — Consumer — — — 10 — Leases 2,734 2,734 2,436 302 — Total impaired loans with an allowance recorded $ 99,837 $ 104,154 $ 23,467 $ 42,528 $ — Combined: Commercial Business loans $ 32,080 $ 38,829 $ 5,737 $ 48,442 $ — Energy 108,399 108,399 14,103 28,432 36 Construction Market risk 16,668 16,668 — 9,764 — Real estate Market risk 5,335 5,335 1,066 5,910 — Commercial 15,353 15,353 — 4,670 24 Secured by 1-4 family 354 354 125 1,580 — Consumer — — — 10 — Leases 5,151 5,151 2,436 3,535 — Total impaired loans $ 183,340 $ 190,089 $ 23,467 $ 102,343 $ 60 |
Schedule of an age analysis of accruing past due loans | The table below provides an age analysis of our loans held for investment as of June 30, 2016 (in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days and Accruing(1) Total Past Due Non-accrual Current Total Commercial Business loans $ 20,136 $ 11,926 $ 5,019 $ 37,081 $ 35,155 $ 6,055,437 $ 6,127,673 Energy 880 5,790 — 6,670 127,470 916,551 1,050,691 Mortgage finance loans — — — — — 5,260,027 5,260,027 Construction Market risk 5,988 160 — 6,148 — 2,006,965 2,013,113 Secured by 1-4 family — — — — — 10,612 10,612 Real estate Market risk 2,730 1,461 935 5,126 — 2,425,918 2,431,044 Commercial 321 — — 321 2,091 642,310 644,722 Secured by 1-4 family 8,290 — 1,551 9,841 713 142,533 153,087 Consumer 462 — 238 700 — 25,583 26,283 Leases — — — — — 103,565 103,565 Total loans held for investment $ 38,807 $ 19,337 $ 7,743 $ 65,887 $ 165,429 $ 17,589,501 $ 17,820,817 (1) Loans past due 90 days and still accruing includes premium finance loans of $5.0 million . These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. |
Schedule of loans that have been restructured | The following tables summarize, for the six months ended June 30, 2016 and 2015 , loans that were restructured during 2016 and 2015 (in thousands): June 30, 2016 Number of Restructured Loans Pre-Restructuring Outstanding Recorded Investment Post-Restructuring Outstanding Recorded Investment Energy loans 2 $ 14,235 $ 14,054 Commercial business loans — $ — $ — Total new restructured loans in 2016 2 $ 14,235 $ 14,054 June 30, 2015 Number of Restructured Loans Pre-Restructuring Outstanding Recorded Investment Post-Restructuring Outstanding Recorded Investment Commercial business loans 4 $ 18,329 $ 16,960 Total new restructured loans in 2015 4 $ 18,329 $ 16,960 The following table provides information on how restructured loans were modified during the six months ended June 30, 2016 and 2015 (in thousands): Six months ended June 30, 2016 2015 Extended maturity $ — $ — Adjusted payment schedule 12,735 — Combination of maturity extension and payment schedule adjustment 1,319 16,960 Total $ 14,054 $ 16,960 |
OREO AND VALUATION ALLOWANCE 24
OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Schedule of the activity related to OREO | The table below presents a summary of the activity related to OREO (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Beginning balance $ 17,585 $ 605 $ 278 $ 568 Additions 1,142 85 18,540 1,177 Sales — (81 ) (91 ) (1,136 ) Valuation allowance for OREO — — — — Direct write-downs — — — — Ending balance $ 18,727 $ 609 $ 18,727 $ 609 The addition to OREO relates to the foreclosure of two commercial properties during the six months ended June 30, 2016 . |
CERTAIN TRANSFERS OF FINANCIA25
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Schedule of Loans Held for Sale | The table below presents the unpaid principal balance of loans held for sale and related fair values at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Unpaid principal balance 209,617 82,853 Fair value 221,347 86,075 Fair value over/(under) unpaid principal balance 11,730 3,222 |
Servicing Asset at Amortized Cost | We generally retain the right to service the loans sold, creating mortgage servicing rights ("MSRs") which are recorded as assets on our balance sheet. A summary of MSR activities for the six months ended June 30, 2016 is as follows (in thousands): Servicing asset: Balance, beginning of year(1) $ 423 Capitalized servicing rights 8,805 Amortization (271 ) Balance, end of period 8,957 Valuation allowance: Balance, beginning of year $ — Increase in valuation allowance $ 414 Balance, end of period $ 414 Servicing asset, net(1) $ 8,543 |
Schedule of Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities | June 30, 2016 and December 31, 2015 , management used the following assumptions to determine the fair value of MSRs: June 30, 2016 December 31, 2015 Average discount rates 10.02 % 9.76 % Expected prepayment speeds 12.25 % 9.66 % Weighted average life, in years 6.1 |
FINANCIAL INSTRUMENTS WITH OF26
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedule of financial instruments with off-balance sheet risk | The table below summarizes our off-balance sheet financial instruments whose contract amounts represented credit risk (in thousands): June 30, 2016 December 31, 2015 Commitments to extend credit $ 5,444,161 $ 5,542,363 Standby letters of credit 189,178 182,219 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of capital ratios | The table below summarizes our capital ratios: June 30, December 31, Company Risk-based capital: CET1 7.37 % 7.47 % Tier 1 capital 8.64 % 8.81 % Total capital 10.86 % 11.05 % Tier 1 leverage 8.69 % 8.92 % |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation Related Costs [Abstract] | |
Schedule of stock-based compensation costs | Stock-based compensation consists of SARs, RSUs and cash-based performance units granted from 2010 through June 30, 2016 . Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Stock- based compensation expense recognized: SARs $ 77 $ 93 $ 159 $ 197 RSUs 1,034 1,019 2,084 1,906 Cash-based performance units $ 2,155 $ 3,172 1,482 4,538 Total compensation expense recognized $ 3,266 $ 4,284 $ 3,725 $ 6,641 |
Schedule of unrecognized compensation costs | June 30, 2016 (in thousands) SARs and RSUs Unrecognized compensation expense related to unvested awards $ 13,314 Weighted average period over which expense is expected to be recognized, in years 3.2 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value | Assets and liabilities measured at fair value at June 30, 2016 and December 31, 2015 are as follows (in thousands): Fair Value Measurements Using June 30, 2016 Level 1 Level 2 Level 3 Available-for-sale securities:(1) Residential mortgage-backed securities $ — $ 18,633 $ — Municipals — 566 — Equity securities(2) 811 7,362 — Loans held for sale (3) — 221,347 — Loans held for investment(4) (6) — — 19,064 OREO(5) (6) — — 18,727 Derivative assets(7) — 65,138 — Derivative liabilities(7) — 66,702 — Non-qualified deferred compensation liabilities (8) 811 — — December 31, 2015 Available-for-sale securities:(1) Residential mortgage-backed securities $ — $ 21,901 $ — Municipals — 831 — Equity securities(2) — 7,260 — Loans held for sale(3) — 86,075 — Loans(4) (6) — — 41,420 OREO(5) (6) — — 278 Derivative assets(7) — 35,292 — Derivative liabilities(7) — 35,420 — (1) Securities are measured at fair value on a recurring basis, generally monthly. (2) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. (3) Loans held for sale are measured at fair value on a recurring basis, generally monthly. (4) Includes impaired loans that have been measured for impairment at the fair value of the loan’s collateral. (5) OREO is transferred from loans to OREO at fair value less selling costs. (6) Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (7) Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (8) Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. |
Summary of the carrying amounts and estimated fair values of financial instruments | A summary of the carrying amounts and estimated fair values of financial instruments is as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Cash and cash equivalents $ 2,722,977 $ 2,722,977 $ 1,790,870 $ 1,790,870 Securities, available-for-sale 27,372 27,372 29,992 29,992 Loans held for sale 221,347 221,347 86,075 86,075 Loans held for investment, net 17,595,143 17,598,060 16,570,839 16,576,297 Derivative assets 65,138 65,138 35,292 35,292 Deposits 16,703,565 16,704,143 15,084,619 15,085,080 Federal funds purchased 81,555 81,555 74,164 74,164 Customer repurchase agreements 14,427 14,427 68,887 68,887 Other borrowings 2,019,463 2,019,463 1,500,000 1,500,000 Subordinated notes 280,863 290,270 280,682 285,773 Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 Derivative liabilities 66,702 66,702 35,420 35,420 |
DERIVATIVE FINANCIAL INSTRUME30
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts and estimated fair values of interest rate derivative positions | The notional amounts and estimated fair values of interest rate derivative positions outstanding at June 30, 2016 and December 31, 2015 are presented in the following tables (in thousands): June 30, 2016 December 31, 2015 Estimated Fair Value Estimated Fair Value Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Non-hedging interest rate derivatives: Financial institution counterparties: Commercial loan/lease interest rate swaps $ 1,058,433 $ — $ 63,639 $ 976,389 $ — $ 33,851 Commercial loan/lease interest rate caps 192,787 224 — 194,304 1,441 — Customer counterparties: Commercial loan/lease interest rate swaps 1,058,433 63,639 — 976,389 33,851 — Commercial loan/lease interest rate caps 192,787 — 224 194,304 — 1,441 Economic hedging interest rate derivatives: Loan purchase commitments 205,217 1,275 — 62,835 — 109 Forward sales commitments 399,500 — 2,839 143,200 — 19 Gross derivatives 65,138 66,702 35,292 35,420 Offsetting derivative assets/liabilities — — — — Net derivatives included in the consolidated balance sheets $ 65,138 $ 66,702 $ 35,292 $ 35,420 |
Schedule of the weighted-average receive and pay interest rate swaps | The weighted average received and paid interest rates for interest rate swaps outstanding at June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 December 31, 2015 Received Paid Received Paid Non-hedging interest rate swaps 2.90 % 4.61 % 2.96 % 4.72 % |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Numerator: | |||||
Net income | $ 38,880 | $ 37,937 | $ 64,008 | $ 72,987 | |
Preferred stock dividends | (2,437) | (2,437) | (4,875) | (4,875) | |
Net income available to common stockholders | $ 36,443 | $ 35,500 | $ 59,133 | $ 68,112 | |
Denominator: | |||||
Denominator for basic earnings per share— weighted average shares | 45,924,281 | 45,790,093 | 45,906,508 | 45,774,461 | |
Effect of employee stock-based awards | [1] | 124,974 | 229,378 | 121,524 | 219,448 |
Effect of warrants to purchase common stock | 388,877 | 423,942 | 368,574 | 411,281 | |
Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions | 46,438,132 | 46,443,413 | 46,396,606 | 46,405,190 | |
Basic earnings per common share (usd per share) | $ 0.79 | $ 0.78 | $ 1.29 | $ 1.49 | |
Diluted earnings per common share (usd per share) | $ 0.78 | $ 0.76 | $ 1.27 | $ 1.47 | |
Stock options, SARs and RSUs excluded from computation of diluted EPS | 252,754 | 173,382 | |||
[1] | Stock options, SARs and RSUs outstanding of 252,754 at June 30, 2016 and 173,382 at June 30, 2015 have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
Available-for-sale Securities [Abstract] | |||
Available-for-sale securities, net unrealized gains | $ 1,000 | $ 1,100 | |
Available for sale securities, net unrealized gain as percent of outstanding balances | 3.98% | 3.83% | |
Summary of Available-for-Sale Securities | |||
Amortized Cost | $ 26,324 | $ 28,886 | |
Gross Unrealized Gains | 1,239 | 1,379 | |
Gross Unrealized Losses | (191) | (273) | |
Estimated Fair Value | 27,372 | 29,992 | |
Residential mortgage-backed securities | |||
Summary of Available-for-Sale Securities | |||
Amortized Cost | [1] | 17,456 | 20,536 |
Gross Unrealized Gains | 1,177 | 1,365 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | [1] | 18,633 | 21,901 |
Municipals | |||
Summary of Available-for-Sale Securities | |||
Amortized Cost | [2] | 564 | 828 |
Gross Unrealized Gains | 2 | 3 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | [2] | 566 | 831 |
Equity securities | |||
Summary of Available-for-Sale Securities | |||
Amortized Cost | [3],[4] | 8,304 | 7,522 |
Gross Unrealized Gains | [3] | 60 | 11 |
Gross Unrealized Losses | [3] | (191) | (273) |
Estimated Fair Value | [3],[4] | $ 8,173 | $ 7,260 |
[1] | Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. | ||
[2] | Yields have been adjusted to a tax equivalent basis assuming a 35% federal tax rate. | ||
[3] | Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. | ||
[4] | These equity securities do not have a stated maturity. |
SECURITIES (Details 1)
SECURITIES (Details 1) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
The amortized cost and fair value of available-for-sale securites by maturity | |||
Amortized cost, Total | $ 26,324 | $ 28,886 | |
Estimated Fair Value | $ 27,372 | $ 29,992 | |
Available-for-sale Securities, Other Disclosure Items | |||
Federal tax rate | 35.00% | 35.00% | |
Available-for-sale securities pledged as collateral | $ 15,800 | ||
Residential mortgage-backed securities | |||
The amortized cost and fair value of available-for-sale securites by maturity | |||
Amortized cost, Less Than One Year | [1] | 132 | $ 214 |
Amortized cost, After One Through Five Years | [1] | 3,196 | 4,655 |
Amortized cost, After Five Through Ten Years | [1] | 3,696 | 4,265 |
Amortized cost, After Ten Years | [1] | 10,432 | 11,402 |
Amortized cost, Total | [1] | 17,456 | 20,536 |
Estimated fair value, Less Than One Year | [1] | 133 | 217 |
Estimated fair value, After One Through Five Years | [1] | 3,303 | 4,837 |
Estimated fair value, After Five Through Ten Years | [1] | 4,147 | 4,747 |
Estimated fair value, After Ten Years | [1] | 11,050 | 12,100 |
Estimated Fair Value | [1] | $ 18,633 | $ 21,901 |
Weighted average yield, Less Than One Year | [1],[2] | 5.54% | 5.62% |
Weighted average yield, After One Through Five Years | [1],[2] | 4.70% | 4.71% |
Weighted average yield, After Five Through Ten Years | [1],[2] | 5.54% | 5.54% |
Weighted average yield, After Ten Years | [1],[2] | 2.69% | 2.53% |
Weighted average yield, Total | [1],[2] | 3.68% | 3.68% |
Municipals | |||
The amortized cost and fair value of available-for-sale securites by maturity | |||
Amortized cost, Less Than One Year | [3] | $ 275 | $ 265 |
Amortized cost, After One Through Five Years | [3] | 289 | 563 |
Amortized cost, After Five Through Ten Years | [3] | 0 | 0 |
Amortized cost, After Ten Years | [3] | 0 | 0 |
Amortized cost, Total | [3] | 564 | 828 |
Estimated fair value, Less Than One Year | [3] | 275 | 265 |
Estimated fair value, After One Through Five Years | [3] | 291 | 566 |
Estimated fair value, After Five Through Ten Years | [3] | 0 | 0 |
Estimated fair value, After Ten Years | [3] | 0 | 0 |
Estimated Fair Value | [3] | $ 566 | $ 831 |
Weighted average yield, Less Than One Year | [2],[3] | 5.61% | 5.46% |
Weighted average yield, After One Through Five Years | [2],[3] | 5.76% | 5.69% |
Weighted average yield, After Five Through Ten Years | [2],[3] | 0.00% | 0.00% |
Weighted average yield, After Ten Years | [2],[3] | 0.00% | 0.00% |
Weighted average yield, Total | [2],[3] | 5.69% | 5.62% |
Equity securities | |||
The amortized cost and fair value of available-for-sale securites by maturity | |||
Amortized cost, Less Than One Year | [4] | $ 8,304 | $ 7,522 |
Amortized cost, After One Through Five Years | [4] | 0 | 0 |
Amortized cost, After Five Through Ten Years | [4] | 0 | 0 |
Amortized cost, After Ten Years | [4] | 0 | 0 |
Amortized cost, Total | [4],[5] | 8,304 | 7,522 |
Estimated fair value, Less Than One Year | [4] | 8,173 | 7,260 |
Estimated fair value, After One Through Five Years | [4] | 0 | 0 |
Estimated fair value, After Five Through Ten Years | [4] | 0 | 0 |
Estimated fair value, After Ten Years | [4] | 0 | 0 |
Estimated Fair Value | [4],[5] | 8,173 | $ 7,260 |
Deposits | |||
Available-for-sale Securities, Other Disclosure Items | |||
Available-for-sale securities pledged as collateral | 3,800 | ||
Repurchase agreements | |||
Available-for-sale Securities, Other Disclosure Items | |||
Available-for-sale securities pledged as collateral | $ 12,000 | ||
[1] | Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. | ||
[2] | Yields are calculated based on amortized cost. | ||
[3] | Yields have been adjusted to a tax equivalent basis assuming a 35% federal tax rate. | ||
[4] | These equity securities do not have a stated maturity. | ||
[5] | Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. |
SECURITIES (Details 2)
SECURITIES (Details 2) - Equity securities - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Fair Value, Less Than 12 Months | $ 0 | $ 0 |
Unrealized Loss, Less Than 12 Months | 0 | 0 |
Fair Value, 12 Months or Longer | 6,309 | 6,227 |
Unrealized Loss, 12 Months or Longer | (191) | (273) |
Fair Value, Total | 6,309 | 6,227 |
Unrealized Loss, Total | $ (191) | $ (273) |
LOANS AND ALLOWANCE FOR LOAN 35
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Loans and Leases Receivable, Net Reported Amount | ||||
Commercial | $ 7,178,364 | $ 6,672,631 | ||
Mortgage finance | 5,260,027 | 4,966,276 | ||
Construction | 2,023,725 | 1,851,717 | ||
Real estate | 3,228,853 | 3,139,197 | ||
Consumer | 26,283 | 25,323 | ||
Leases | 103,565 | 113,996 | ||
Gross loans held for investment | 17,820,817 | 16,769,140 | $ 16,087,473 | |
Deferred income (net of direct origination costs) | (58,277) | (57,190) | ||
Allowance for loan losses | (167,397) | (141,111) | $ (118,770) | $ (100,954) |
Loans held for investment, net | 17,595,143 | 16,570,839 | ||
Participating mortgage finance loans | $ 844,200 | $ 454,800 |
LOANS AND ALLOWANCE FOR LOAN 36
LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit Risk Profile (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | $ 7,178,364 | $ 6,672,631 | |
Mortgage finance | 5,260,027 | 4,966,276 | |
Construction | 2,023,725 | 1,851,717 | |
Real estate | 3,228,853 | 3,139,197 | |
Consumer | 26,283 | 25,323 | |
Leases | 103,565 | 113,996 | |
Gross loans held for investment | 17,820,817 | 16,769,140 | $ 16,087,473 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 6,775,659 | 6,375,332 | |
Mortgage finance | 5,260,027 | 4,966,276 | |
Construction | 2,010,421 | 1,821,678 | |
Real estate | 3,182,419 | 3,085,463 | |
Consumer | 26,018 | 25,093 | |
Leases | 99,169 | 103,560 | |
Gross loans held for investment | 17,353,713 | 16,377,402 | |
Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 87,456 | 111,911 | |
Mortgage finance | 0 | 0 | |
Construction | 1,525 | 13,090 | |
Real estate | 35,056 | 30,585 | |
Consumer | 0 | 3 | |
Leases | 0 | 334 | |
Gross loans held for investment | 124,037 | 155,923 | |
Substandard-accruing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 152,624 | 46,731 | |
Mortgage finance | 0 | 0 | |
Construction | 11,779 | 281 | |
Real estate | 8,574 | 3,837 | |
Consumer | 265 | 227 | |
Leases | 4,396 | 4,951 | |
Gross loans held for investment | 177,638 | 56,027 | |
Non-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 162,625 | 138,657 | |
Mortgage finance | 0 | 0 | |
Construction | 0 | 16,668 | |
Real estate | 2,804 | 19,312 | |
Consumer | 0 | 0 | |
Leases | 0 | 5,151 | |
Gross loans held for investment | $ 165,429 | $ 179,788 |
LOANS AND ALLOWANCE FOR LOAN 37
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reserve for loan losses: | ||||
Beginning balance | $ 141,111 | $ 100,954 | ||
Provision for loan losses | 45,656 | 24,626 | ||
Charge-offs | 24,815 | 8,928 | ||
Recoveries | 5,445 | 2,118 | ||
Net charge-offs (recoveries) | 19,370 | 6,810 | ||
Period end amount allocated to: | ||||
Loans individually evaluated for impairment | $ 30,971 | $ 14,055 | ||
Loans collectively evaluated for impairment | 136,426 | 104,715 | ||
Ending balance | 141,111 | 100,954 | 167,397 | 118,770 |
Commercial | ||||
Reserve for loan losses: | ||||
Beginning balance | 112,446 | 70,654 | ||
Provision for loan losses | 44,324 | 37,666 | ||
Charge-offs | 24,287 | 8,520 | ||
Recoveries | 5,334 | 1,710 | ||
Net charge-offs (recoveries) | 18,953 | 6,810 | ||
Period end amount allocated to: | ||||
Loans individually evaluated for impairment | 30,775 | 13,717 | ||
Loans collectively evaluated for impairment | 107,042 | 87,793 | ||
Ending balance | 112,446 | 70,654 | 137,817 | 101,510 |
Mortgage finance loans | ||||
Reserve for loan losses: | ||||
Beginning balance | 0 | 0 | ||
Provision for loan losses | 0 | 0 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net charge-offs (recoveries) | 0 | 0 | ||
Period end amount allocated to: | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 |
Construction | ||||
Reserve for loan losses: | ||||
Beginning balance | 6,836 | 7,935 | ||
Provision for loan losses | 758 | (4,066) | ||
Charge-offs | 0 | 0 | ||
Recoveries | 34 | 355 | ||
Net charge-offs (recoveries) | (34) | (355) | ||
Period end amount allocated to: | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 7,628 | 4,224 | ||
Ending balance | 6,836 | 7,935 | 7,628 | 4,224 |
Real Estate | ||||
Reserve for loan losses: | ||||
Beginning balance | 13,381 | 15,582 | ||
Provision for loan losses | 1,423 | (6,509) | ||
Charge-offs | 528 | 346 | ||
Recoveries | 21 | 20 | ||
Net charge-offs (recoveries) | 507 | 326 | ||
Period end amount allocated to: | ||||
Loans individually evaluated for impairment | 196 | 337 | ||
Loans collectively evaluated for impairment | 14,101 | 8,410 | ||
Ending balance | 13,381 | 15,582 | 14,297 | 8,747 |
Consumer | ||||
Reserve for loan losses: | ||||
Beginning balance | 338 | 240 | ||
Provision for loan losses | (28) | 144 | ||
Charge-offs | 0 | 62 | ||
Recoveries | 11 | 10 | ||
Net charge-offs (recoveries) | (11) | 52 | ||
Period end amount allocated to: | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 321 | 332 | ||
Ending balance | 338 | 240 | 321 | 332 |
Leases | ||||
Reserve for loan losses: | ||||
Beginning balance | 3,931 | 1,141 | ||
Provision for loan losses | (2,531) | (831) | ||
Charge-offs | 0 | 0 | ||
Recoveries | 45 | 23 | ||
Net charge-offs (recoveries) | (45) | (23) | ||
Period end amount allocated to: | ||||
Loans individually evaluated for impairment | 0 | 1 | ||
Loans collectively evaluated for impairment | 1,445 | 332 | ||
Ending balance | 3,931 | 1,141 | 1,445 | 333 |
Unallocated | ||||
Reserve for loan losses: | ||||
Beginning balance | 4,179 | 5,402 | ||
Provision for loan losses | 1,710 | (1,778) | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net charge-offs (recoveries) | 0 | 0 | ||
Period end amount allocated to: | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 5,889 | 3,624 | ||
Ending balance | $ 4,179 | $ 5,402 | $ 5,889 | $ 3,624 |
LOANS AND ALLOWANCE FOR LOAN 38
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | $ 168,549 | $ 183,340 | $ 127,695 |
Loans collectively evaluated for impairment | 17,652,268 | 16,585,800 | 15,959,778 |
Gross loans held for investment | 17,820,817 | 16,769,140 | 16,087,473 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 164,339 | 140,479 | 93,944 |
Loans collectively evaluated for impairment | 7,014,025 | 6,532,152 | 6,294,763 |
Gross loans held for investment | 7,178,364 | 6,672,631 | 6,388,707 |
Mortgage finance loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 0 | 0 | 0 |
Loans collectively evaluated for impairment | 5,260,027 | 4,966,276 | 4,906,415 |
Gross loans held for investment | 5,260,027 | 4,966,276 | 4,906,415 |
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 0 | 16,668 | 16,749 |
Loans collectively evaluated for impairment | 2,023,725 | 1,835,049 | 1,820,783 |
Gross loans held for investment | 2,023,725 | 1,851,717 | 1,837,532 |
Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 4,210 | 21,042 | 10,565 |
Loans collectively evaluated for impairment | 3,224,643 | 3,118,155 | 2,823,440 |
Gross loans held for investment | 3,228,853 | 3,139,197 | 2,834,005 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 0 | 0 | 0 |
Loans collectively evaluated for impairment | 26,283 | 25,323 | 23,789 |
Gross loans held for investment | 26,283 | 25,323 | 23,789 |
Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 0 | 5,151 | 6,437 |
Loans collectively evaluated for impairment | 103,565 | 108,845 | 90,588 |
Gross loans held for investment | $ 103,565 | $ 113,996 | $ 97,025 |
LOANS AND ALLOWANCE FOR LOAN 39
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Non-accrual loans earning on a cash basis | $ 820 | $ 884 |
LOANS AND ALLOWANCE FOR LOAN 40
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Commercial business loans | Energy | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | $ 37,968 | |||
With no related allowance recorded: | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | $ 86,904 | $ 86,904 | 83,503 | |
Unpaid principal balance | 97,333 | 97,333 | 85,935 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 67,594 | 59,815 | ||
Interest income recognized | 18 | 60 | ||
With no related allowance recorded: | Commercial business loans | Business loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 11,979 | 11,979 | 11,097 | |
Unpaid principal balance | 14,228 | 14,228 | 13,529 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 8,943 | 17,311 | ||
Interest income recognized | 0 | 0 | ||
With no related allowance recorded: | Commercial business loans | Energy | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 72,834 | 72,834 | ||
Unpaid principal balance | 81,014 | 81,014 | 37,968 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 45,410 | 21,791 | ||
Interest income recognized | 0 | 36 | ||
With no related allowance recorded: | Construction | Market risk | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 16,668 | |
Unpaid principal balance | 0 | 0 | 16,668 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 5,556 | 9,764 | ||
Interest income recognized | 0 | 0 | ||
With no related allowance recorded: | Real estate | Market risk | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 0 | |
Unpaid principal balance | 0 | 0 | 0 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 0 | 3,352 | ||
Interest income recognized | 0 | 0 | ||
With no related allowance recorded: | Real estate | Commercial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 2,091 | 2,091 | 15,353 | |
Unpaid principal balance | 2,091 | 2,091 | 15,353 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 6,879 | 4,364 | ||
Interest income recognized | 18 | 24 | ||
With no related allowance recorded: | Real estate | Secured by 1-4 family | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 0 | |
Unpaid principal balance | 0 | 0 | 0 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 0 | 0 | ||
Interest income recognized | 0 | 0 | ||
With no related allowance recorded: | Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 0 | |
Unpaid principal balance | 0 | 0 | 0 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 0 | 0 | ||
Interest income recognized | 0 | 0 | ||
With no related allowance recorded: | Leases | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 2,417 | |
Unpaid principal balance | 0 | 0 | 2,417 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 806 | 3,233 | ||
Interest income recognized | 0 | 0 | ||
With an allowance recorded: | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 81,645 | 81,645 | 99,837 | |
Unpaid principal balance | 92,867 | 92,867 | 104,154 | |
Related allowance | 30,971 | 30,971 | 23,467 | |
Average recorded investment | 109,897 | 42,528 | ||
Interest income recognized | 12 | 0 | ||
With an allowance recorded: | Commercial business loans | Business loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 24,891 | 24,891 | 20,983 | |
Unpaid principal balance | 32,350 | 32,350 | 25,300 | |
Related allowance | 7,675 | 7,675 | 5,737 | |
Average recorded investment | 21,166 | 31,131 | ||
Interest income recognized | 0 | 0 | ||
With an allowance recorded: | Commercial business loans | Energy | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 54,635 | 54,635 | 70,431 | |
Unpaid principal balance | 58,398 | 58,398 | 70,431 | |
Related allowance | 23,100 | 23,100 | 14,103 | |
Average recorded investment | 82,613 | 6,641 | ||
Interest income recognized | 12 | 0 | ||
With an allowance recorded: | Construction | Market risk | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 0 | |
Unpaid principal balance | 0 | 0 | 0 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 0 | 0 | ||
Interest income recognized | 0 | 0 | ||
With an allowance recorded: | Real estate | Market risk | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 1,406 | 1,406 | 5,335 | |
Unpaid principal balance | 1,406 | 1,406 | 5,335 | |
Related allowance | 21 | 21 | 1,066 | |
Average recorded investment | 4,625 | 2,558 | ||
Interest income recognized | 0 | 0 | ||
With an allowance recorded: | Real estate | Commercial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 0 | |
Unpaid principal balance | 0 | 0 | 0 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 0 | 306 | ||
Interest income recognized | 0 | 0 | ||
With an allowance recorded: | Real estate | Secured by 1-4 family | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 713 | 713 | 354 | |
Unpaid principal balance | 713 | 713 | 354 | |
Related allowance | 175 | 175 | 125 | |
Average recorded investment | 410 | 1,580 | ||
Interest income recognized | 0 | 0 | ||
With an allowance recorded: | Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 0 | |
Unpaid principal balance | 0 | 0 | 0 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 0 | 10 | ||
Interest income recognized | 0 | 0 | ||
With an allowance recorded: | Leases | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 2,734 | |
Unpaid principal balance | 0 | 0 | 2,734 | |
Related allowance | 0 | 0 | 2,436 | |
Average recorded investment | 1,083 | 302 | ||
Interest income recognized | 0 | 0 | ||
Combined: | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 168,549 | 168,549 | 183,340 | |
Unpaid principal balance | 190,200 | 190,200 | 190,089 | |
Related allowance | 30,971 | 30,971 | 23,467 | |
Average recorded investment | 177,491 | $ 74,400 | 102,343 | |
Interest income recognized | 30 | 60 | ||
Combined: | Commercial business loans | Business loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 36,870 | 36,870 | 32,080 | |
Unpaid principal balance | 46,578 | 46,578 | 38,829 | |
Related allowance | 7,675 | 7,675 | 5,737 | |
Average recorded investment | 30,109 | 48,442 | ||
Interest income recognized | 0 | 0 | ||
Combined: | Commercial business loans | Energy | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 127,469 | 127,469 | 108,399 | |
Unpaid principal balance | 139,412 | 139,412 | 108,399 | |
Related allowance | 23,100 | 23,100 | 14,103 | |
Average recorded investment | 128,023 | 28,432 | ||
Interest income recognized | 12 | 36 | ||
Combined: | Construction | Market risk | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 16,668 | |
Unpaid principal balance | 0 | 0 | 16,668 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 5,556 | 9,764 | ||
Interest income recognized | 0 | 0 | ||
Combined: | Real estate | Market risk | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 1,406 | 1,406 | 5,335 | |
Unpaid principal balance | 1,406 | 1,406 | 5,335 | |
Related allowance | 21 | 21 | 1,066 | |
Average recorded investment | 4,625 | 5,910 | ||
Interest income recognized | 0 | 0 | ||
Combined: | Real estate | Commercial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 2,091 | 2,091 | 15,353 | |
Unpaid principal balance | 2,091 | 2,091 | 15,353 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 6,879 | 4,670 | ||
Interest income recognized | 18 | 24 | ||
Combined: | Real estate | Secured by 1-4 family | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 713 | 713 | 354 | |
Unpaid principal balance | 713 | 713 | 354 | |
Related allowance | 175 | 175 | 125 | |
Average recorded investment | 410 | 1,580 | ||
Interest income recognized | 0 | 0 | ||
Combined: | Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 0 | |
Unpaid principal balance | 0 | 0 | 0 | |
Related allowance | 0 | 0 | 0 | |
Average recorded investment | 0 | 10 | ||
Interest income recognized | 0 | 0 | ||
Combined: | Leases | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 5,151 | |
Unpaid principal balance | 0 | 0 | 5,151 | |
Related allowance | $ 0 | 0 | 2,436 | |
Average recorded investment | 1,889 | 3,535 | ||
Interest income recognized | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 41
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) $ in Thousands | Jun. 30, 2016USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 65,887 | |
Non-accrual | 165,429 | |
Current | 17,589,501 | |
Total | 17,820,817 | |
Premium finance loans past due 90 days and still accruing | 5,000 | |
Commercial business loans | Business loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 37,081 | |
Non-accrual | 35,155 | |
Current | 6,055,437 | |
Total | 6,127,673 | |
Commercial business loans | Energy | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 6,670 | |
Non-accrual | 127,470 | |
Current | 916,551 | |
Total | 1,050,691 | |
Mortgage finance loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
Non-accrual | 0 | |
Current | 5,260,027 | |
Total | 5,260,027 | |
Construction | Market risk | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 6,148 | |
Non-accrual | 0 | |
Current | 2,006,965 | |
Total | 2,013,113 | |
Construction | Secured by 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
Non-accrual | 0 | |
Current | 10,612 | |
Total | 10,612 | |
Real estate | Market risk | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,126 | |
Non-accrual | 0 | |
Current | 2,425,918 | |
Total | 2,431,044 | |
Real estate | Secured by 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 9,841 | |
Non-accrual | 713 | |
Current | 142,533 | |
Total | 153,087 | |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 321 | |
Non-accrual | 2,091 | |
Current | 642,310 | |
Total | 644,722 | |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 700 | |
Non-accrual | 0 | |
Current | 25,583 | |
Total | 26,283 | |
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
Non-accrual | 0 | |
Current | 103,565 | |
Total | 103,565 | |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 38,807 | |
30-59 Days Past Due | Commercial business loans | Business loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 20,136 | |
30-59 Days Past Due | Commercial business loans | Energy | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 880 | |
30-59 Days Past Due | Mortgage finance loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
30-59 Days Past Due | Construction | Market risk | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,988 | |
30-59 Days Past Due | Construction | Secured by 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
30-59 Days Past Due | Real estate | Market risk | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,730 | |
30-59 Days Past Due | Real estate | Secured by 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 8,290 | |
30-59 Days Past Due | Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 321 | |
30-59 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 462 | |
30-59 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 19,337 | |
60-89 Days Past Due | Commercial business loans | Business loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 11,926 | |
60-89 Days Past Due | Commercial business loans | Energy | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,790 | |
60-89 Days Past Due | Mortgage finance loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
60-89 Days Past Due | Construction | Market risk | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 160 | |
60-89 Days Past Due | Construction | Secured by 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
60-89 Days Past Due | Real estate | Market risk | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,461 | |
60-89 Days Past Due | Real estate | Secured by 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
60-89 Days Past Due | Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
60-89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
60-89 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | |
Greater Than 90 Days and Accruing(1) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 7,743 | [1] |
Greater Than 90 Days and Accruing(1) | Commercial business loans | Business loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,019 | [1] |
Greater Than 90 Days and Accruing(1) | Commercial business loans | Energy | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | [1] |
Greater Than 90 Days and Accruing(1) | Mortgage finance loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | [1] |
Greater Than 90 Days and Accruing(1) | Construction | Market risk | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | [1] |
Greater Than 90 Days and Accruing(1) | Construction | Secured by 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | [1] |
Greater Than 90 Days and Accruing(1) | Real estate | Market risk | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 935 | [1] |
Greater Than 90 Days and Accruing(1) | Real estate | Secured by 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,551 | [1] |
Greater Than 90 Days and Accruing(1) | Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | [1] |
Greater Than 90 Days and Accruing(1) | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 238 | [1] |
Greater Than 90 Days and Accruing(1) | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 0 | [1] |
[1] | Loans past due 90 days and still accruing includes premium finance loans of $5.0 million. These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. |
LOANS AND ALLOWANCE FOR LOAN 42
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Loans considered restructured that are not already on non-accrual | $ 249 | ||
Non-accrual loans that met the criteria for restructured unfunded commitments | $ 33,300 | $ 24,900 | |
Number of restructured loans | 2 | 4 | |
Pre-restructuring outstanding recorded investment | $ 14,235 | $ 18,329 | |
Post-restructuring outstanding recorded investment | $ 14,054 | $ 16,960 | |
Energy loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of restructured loans | 2 | ||
Pre-restructuring outstanding recorded investment | $ 14,235 | ||
Post-restructuring outstanding recorded investment | $ 14,054 | ||
Commercial business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of restructured loans | 0 | 4 | |
Pre-restructuring outstanding recorded investment | $ 0 | $ 18,329 | |
Post-restructuring outstanding recorded investment | $ 0 | $ 16,960 |
LOANS AND ALLOWANCE FOR LOAN 43
LOANS AND ALLOWANCE FOR LOAN LOSSES - TDR Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Financing Receivable, Modifications [Line Items] | ||
Details of how restructured loans were modified | $ 14,054 | $ 16,960 |
Extended maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Details of how restructured loans were modified | 0 | 0 |
Adjusted payment schedule | ||
Financing Receivable, Modifications [Line Items] | ||
Details of how restructured loans were modified | 12,735 | 0 |
Combination of maturity extension and payment schedule adjustment | ||
Financing Receivable, Modifications [Line Items] | ||
Details of how restructured loans were modified | $ 1,319 | $ 16,960 |
OREO AND VALUATION ALLOWANCE 44
OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Real Estate Acquired Through Foreclosure [Roll Forward] | ||||||
Beginning balance | $ 17,585 | $ 605 | $ 278 | [1],[2] | $ 568 | |
Additions | 1,142 | 85 | 18,540 | 1,177 | ||
Sales | 0 | (81) | (91) | (1,136) | ||
Valuation allowance for OREO | 0 | 0 | 0 | 0 | ||
Direct write-downs | 0 | 0 | 0 | 0 | ||
Ending balance | $ 18,727 | [1],[2] | $ 609 | $ 18,727 | [1],[2] | $ 609 |
[1] | Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. | |||||
[2] | OREO is transferred from loans to OREO at fair value less selling costs. |
CERTAIN TRANSFERS OF FINANCIA45
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details) | 6 Months Ended | |
Jun. 30, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Transfers and Servicing [Abstract] | ||
Number of loans in servicing portfolio | loan | 2,885 | 168 |
Outstanding principal balance of loans in servicing portfolio Financial Assets, Principal Amount Outstanding | $ 736,300,000 | $ 39,000,000 |
Escrow fund deposits related to servicing assets | 9,000,000 | $ 240,000 |
Mortgage loans sold during the period | 712,500,000 | |
Estimated exposure related to servicing assets | $ 363,000 |
CERTAIN TRANSFERS OF FINANCIA46
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Transfers and Servicing [Abstract] | ||
Unpaid principal balance | $ 209,617 | $ 82,853 |
Fair value | 221,347 | 86,075 |
Fair value over/(under) unpaid principal balance | $ 11,730 | $ 3,222 |
CERTAIN TRANSFERS OF FINANCIA47
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details 2) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Servicing asset: | |
Balance, beginning of year(1) | $ 423 |
Capitalized servicing rights | 8,805 |
Amortization | (271) |
Balance, end of period | 8,957 |
Valuation allowance: | |
Balance, beginning of year | 0 |
Increase in valuation allowance | 414 |
Balance, end of period | 414 |
Servicing asset, net(2) | $ 8,543 |
CERTAIN TRANSFERS OF FINANCIA48
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details 3) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | ||
Average discount rates (percent) | 10.02% | 9.76% |
Expected prepayment speeds (percent) | 12.25% | 9.66% |
Weighted average life, in years | 6 years 1 month 6 days |
FINANCIAL INSTRUMENTS WITH OF49
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments whose contract amounts represented credit risk | $ 5,444,161 | $ 5,542,363 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments whose contract amounts represented credit risk | $ 189,178 | $ 182,219 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | ||
CET1 | 7.37% | 7.47% |
Tier 1 capital | 8.64% | 8.81% |
Total capital | 10.86% | 11.05% |
Leverage | 8.69% | 8.92% |
Mortgage finance | $ 5,260,027 | $ 4,966,276 |
Mortgage finance, average balance | $ 4,100,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | May 19, 2015 | |
Restricted stock units, additional disclosures | |||||
Compensation expense | $ 3,266 | $ 4,284 | $ 3,725 | $ 6,641 | |
Unrecognized compensation expense related to unvested awards | 13,314 | $ 13,314 | |||
Weighted average period over which expense is expected to be recognized, in years | 3 years 2 months | ||||
SARs | |||||
Restricted stock units, additional disclosures | |||||
Compensation expense | 77 | 93 | $ 159 | 197 | |
RSUs | |||||
Restricted stock units, additional disclosures | |||||
Compensation expense | 1,034 | 1,019 | 2,084 | 1,906 | |
Cash-based performance units | |||||
Restricted stock units, additional disclosures | |||||
Compensation expense | $ 2,155 | $ 3,172 | $ 1,482 | $ 4,538 | |
2015 Long-Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock shares that can be issued for compensation under the Plan | 2,550,000 |
FAIR VALUE DISCLOSURES (Assets
FAIR VALUE DISCLOSURES (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | $ 27,372 | $ 29,992 | |||||||
Loans held for sale | 221,347 | 86,075 | |||||||
OREO | 18,727 | [1],[2] | $ 17,585 | 278 | [1],[2] | $ 609 | $ 605 | $ 568 | |
Derivative assets | 65,138 | 35,292 | |||||||
Derivative liabilities | (66,702) | (35,420) | |||||||
Residential mortgage-backed securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [3] | 18,633 | 21,901 | ||||||
Municipals | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [4] | 566 | 831 | ||||||
Equity securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [5],[6] | 8,173 | 7,260 | ||||||
Fair value measurements, recurring basis | Level 1 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Loans held for sale | [7] | 0 | 0 | ||||||
Derivative assets | [7] | 0 | 0 | ||||||
Derivative liabilities | [7] | 0 | 0 | ||||||
Deferred Compensation Liability, Current and Noncurrent | [7] | 811 | |||||||
Fair value measurements, recurring basis | Level 1 | Residential mortgage-backed securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8] | 0 | 0 | ||||||
Fair value measurements, recurring basis | Level 1 | Municipals | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8] | 0 | 0 | ||||||
Fair value measurements, recurring basis | Level 1 | Equity securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8],[9] | 811 | 0 | ||||||
Fair value measurements, recurring basis | Level 2 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Loans held for sale | [7] | 221,347 | 86,075 | ||||||
Derivative assets | [7] | 65,138 | 35,292 | ||||||
Derivative liabilities | [7] | (66,702) | (35,420) | ||||||
Deferred Compensation Liability, Current and Noncurrent | [7] | 0 | |||||||
Fair value measurements, recurring basis | Level 2 | Residential mortgage-backed securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8] | 18,633 | 21,901 | ||||||
Fair value measurements, recurring basis | Level 2 | Municipals | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8] | 566 | 831 | ||||||
Fair value measurements, recurring basis | Level 2 | Equity securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8],[9] | 7,362 | 7,260 | ||||||
Fair value measurements, recurring basis | Level 3 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Loans held for sale | [7] | 0 | 0 | ||||||
Derivative assets | [7] | 0 | 0 | ||||||
Derivative liabilities | [7] | 0 | 0 | ||||||
Deferred Compensation Liability, Current and Noncurrent | [7] | 0 | |||||||
Fair value measurements, recurring basis | Level 3 | Residential mortgage-backed securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8] | 0 | 0 | ||||||
Fair value measurements, recurring basis | Level 3 | Municipals | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8] | 0 | 0 | ||||||
Fair value measurements, recurring basis | Level 3 | Equity securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities, available-for-sale | [8],[9] | 0 | 0 | ||||||
Fair value measurements, nonrecurring basis | Level 1 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Loans | [1],[10] | 0 | 0 | ||||||
OREO | [1],[2] | 0 | 0 | ||||||
Fair value measurements, nonrecurring basis | Level 2 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Loans | [1],[10] | 0 | 0 | ||||||
OREO | [1],[2] | 0 | 0 | ||||||
Fair value measurements, nonrecurring basis | Level 3 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Loans | [1],[10] | 19,064 | 41,420 | ||||||
OREO | [1],[2] | $ 18,727 | $ 278 | ||||||
[1] | Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. | ||||||||
[2] | OREO is transferred from loans to OREO at fair value less selling costs. | ||||||||
[3] | Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. | ||||||||
[4] | Yields have been adjusted to a tax equivalent basis assuming a 35% federal tax rate. | ||||||||
[5] | Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. | ||||||||
[6] | These equity securities do not have a stated maturity. | ||||||||
[7] | Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. | ||||||||
[8] | Securities are measured at fair value on a recurring basis, generally monthly. | ||||||||
[9] | Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. | ||||||||
[10] | Includes impaired loans that have been measured for impairment at the fair value of the loan’s collateral. |
FAIR VALUE DISCLOSURES (Financi
FAIR VALUE DISCLOSURES (Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
OREO | $ 18,727 | [1],[2] | $ 17,585 | $ 278 | [1],[2] | $ 609 | $ 605 | $ 568 | |
Securities, available-for-sale | 27,372 | 29,992 | |||||||
Loans held for sale | 221,347 | 86,075 | |||||||
Derivative assets | 65,138 | 35,292 | |||||||
Servicing Asset at Fair Value, Amount | 8,543 | 423 | |||||||
Derivative liabilities | 66,702 | 35,420 | |||||||
Carrying amount | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Cash and cash equivalents | 2,722,977 | 1,790,870 | |||||||
Securities, available-for-sale | 27,372 | 29,992 | |||||||
Loans held for sale | 221,347 | 86,075 | |||||||
Loans held for investment, net | 17,595,143 | 16,570,839 | |||||||
Derivative assets | 65,138 | 35,292 | |||||||
Deposits | 16,703,565 | 15,084,619 | |||||||
Federal funds purchased | 81,555 | 74,164 | |||||||
Customer repurchase agreements | 14,427 | 68,887 | |||||||
Other borrowings | 2,019,463 | 1,500,000 | |||||||
Subordinated notes | 280,863 | 280,682 | |||||||
Trust preferred subordinated debentures | 113,406 | 113,406 | |||||||
Derivative liabilities | 66,702 | 35,420 | |||||||
Estimated fair value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Cash and cash equivalents | 2,722,977 | 1,790,870 | |||||||
Securities, available-for-sale | 27,372 | 29,992 | |||||||
Loans held for sale | 221,347 | 86,075 | |||||||
Loans held for investment, net | 17,598,060 | 16,576,297 | |||||||
Derivative assets | 65,138 | 35,292 | |||||||
Deposits | 16,704,143 | 15,085,080 | |||||||
Federal funds purchased | 81,555 | 74,164 | |||||||
Customer repurchase agreements | 14,427 | 68,887 | |||||||
Other borrowings | 2,019,463 | 1,500,000 | |||||||
Subordinated notes | 290,270 | 285,773 | |||||||
Trust preferred subordinated debentures | 113,406 | 113,406 | |||||||
Derivative liabilities | 66,702 | 35,420 | |||||||
Level 3 | Fair value measurements, nonrecurring basis | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Carrying value of impaired loans | 21,200 | 49,700 | |||||||
Allowance allocation of impaired loans | 2,100 | 8,300 | |||||||
OREO | [1],[2] | 18,727 | 278 | ||||||
Loans held for investment, net | [1],[3] | $ 19,064 | $ 41,420 | ||||||
[1] | Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. | ||||||||
[2] | OREO is transferred from loans to OREO at fair value less selling costs. | ||||||||
[3] | Includes impaired loans that have been measured for impairment at the fair value of the loan’s collateral. |
DERIVATIVE FINANCIAL INSTRUME54
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | ||
Asset Derivative | $ 65,138 | $ 35,292 |
Liability Derivative | 66,702 | 35,420 |
Offsetting derivative liability | 0 | 0 |
Offsetting derivative asset | 0 | 0 |
Derivative asset, net | 65,138 | 35,292 |
Derivative liability, net | $ 66,702 | 35,420 |
Description of credit risk exposure on interest rate swaps and caps | Our credit exposure on interest rate swaps and caps is limited to the net favorable value and interest payments of all swaps and caps by each counterparty. In such cases collateral may be required from the counterparties involved if the net value of the swaps and caps exceeds a nominal amount considered to be immaterial | |
Credit exposure relating to interest rate swaps and caps | $ 65,100 | 35,300 |
Cash collateral pledge for derivatives | $ 68,100 | $ 37,100 |
Commercial loan/lease interest rate swaps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | Weighted-average interest rate received | ||
Derivatives, Fair Value [Line Items] | ||
Weighted-average interest rate received and paid | 2.90% | 2.96% |
Commercial loan/lease interest rate swaps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | Weighted-average interest rate paid | ||
Derivatives, Fair Value [Line Items] | ||
Weighted-average interest rate received and paid | 4.61% | 4.72% |
Commercial loan/lease interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Weighted-average interest rate received and paid | 2.35% | 2.34% |
Financial institution counterparties: | Commercial loan/lease interest rate swaps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,058,433 | $ 976,389 |
Asset Derivative | 0 | 0 |
Liability Derivative | 63,639 | 33,851 |
Financial institution counterparties: | Commercial loan/lease interest rate caps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 192,787 | 194,304 |
Asset Derivative | 224 | 1,441 |
Liability Derivative | 0 | 0 |
Customer counterparties: | Commercial loan/lease interest rate swaps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,058,433 | 976,389 |
Asset Derivative | 63,639 | 33,851 |
Liability Derivative | 0 | 0 |
Customer counterparties: | Commercial loan/lease interest rate caps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 192,787 | 194,304 |
Asset Derivative | 0 | 0 |
Liability Derivative | 224 | 1,441 |
Loan purchase commitments | Interest rate derivative | Economic hedging interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 205,217 | 62,835 |
Asset Derivative | 1,275 | 0 |
Liability Derivative | 0 | 109 |
Forward sales commitments | Interest rate derivative | Economic hedging interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 399,500 | 143,200 |
Asset Derivative | 0 | 0 |
Liability Derivative | $ 2,839 | $ 19 |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Other Noncurrent Assets | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Debt issuance costs | $ 5.2 | $ 5.3 |
Long-term Debt | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Debt issuance costs | $ (5.2) | $ (5.3) |