Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 16, 2019 | |
Entity Information [Line Items] | ||
Entity Address, Address Line One | 2000 McKinney Avenue | |
Entity Address, Postal Zip Code | 75201 | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Registrant Name | TEXAS CAPITAL BANCSHARES INC/TX | |
Entity Central Index Key | 0001077428 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Entity File Number | 001-34657 | |
City Area Code | 214 | |
Local Phone Number | 932-6600 | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 50,320,553 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Tax Identification Number | 75-2679109 | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Country | US | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | TCBI | |
Security Exchange Name | NASDAQ | |
Series A Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.5% Non-Cumulative Perpetual Preferred Stock Series A, par value $0.01 per share | |
Trading Symbol | TCBIP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 216,085 | $ 214,191 |
Interest-bearing deposits in other banks | 4,968,185 | 2,815,684 |
Federal funds sold and securities purchased under resale agreements | 25,000 | 50,190 |
Investment securities | 238,022 | 120,216 |
Loans held for sale ($2,667.2 million at September 30, 2019 and $1,969.2 million at December 31, 2018, at fair value) | 2,674,225 | 1,969,474 |
Loans held for investment, mortgage finance | 7,951,432 | 5,877,524 |
Loans held for investment (net of unearned income) | 16,772,824 | 16,690,550 |
Less: Allowance for loan losses | (190,138) | (191,522) |
Loans held for investment, net | 24,534,118 | 22,376,552 |
Mortgage servicing rights, net | 49,125 | 42,474 |
Premises and equipment, net | 32,667 | 23,802 |
Accrued interest receivable and other assets | 770,793 | 626,614 |
Goodwill and intangible assets, net | 18,217 | 18,570 |
Total assets | 33,526,437 | 28,257,767 |
Deposits: | ||
Non-interest-bearing | 10,289,572 | 7,317,161 |
Interest-bearing | 17,123,731 | 13,288,952 |
Total deposits | 27,413,303 | 20,606,113 |
Accrued interest payable | 34,336 | 20,675 |
Other liabilities | 285,954 | 194,238 |
Federal funds purchased and repurchase agreements | 139,967 | 641,174 |
Other borrowings | 2,500,000 | 3,900,000 |
Subordinated notes, net | 282,038 | 281,767 |
Trust preferred subordinated debentures | 113,406 | 113,406 |
Total liabilities | 30,769,004 | 25,757,373 |
Comprehensive income: | ||
Preferred stock, $.01 par value, $1,000 liquidation value: Authorized shares - 10,000,000; Issued shares - 6,000,000 shares issued at December 31, 2018 and 2017 | 150,000 | 150,000 |
Common stock, $.01 par value: Authorized shares - 100,000,000; Issued shares - 45,735,424 and 41,036,787 at December 31, 2018 and 2017, respectively | 503 | 502 |
Additional paid-in capital | 974,799 | 967,890 |
Retained earnings | 1,623,128 | 1,381,492 |
Treasury stock (shares at cost: 417 at September 30, 2019 and December 31, 2018) | (8) | (8) |
Accumulated other comprehensive income, net of taxes | 9,011 | 518 |
Total stockholders’ equity | 2,757,433 | 2,500,394 |
Total liabilities and stockholders’ equity | $ 33,526,437 | $ 28,257,767 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Loans held for sale ($2,667.2 million at September 30, 2019 and $1,969.2 million at December 31, 2018, at fair value) | $ 2,667,200,000 | $ 1,969,200,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Liquidation value | $ 1,000 | $ 1,000 |
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 | 50,318,071 | 50,201,127 |
Treasury stock, shares | 417 | 417 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income | ||||
Interest and fees on loans | $ 329,344 | $ 291,189 | $ 971,889 | $ 814,500 |
Investment securities | 2,316 | 1,161 | 6,036 | 1,560 |
Federal funds sold and securities purchased under resale agreements | 554 | 1,018 | 1,090 | 2,808 |
Interest-bearing deposits in other banks | 22,887 | 8,386 | 48,540 | 23,607 |
Total interest income | 355,101 | 301,754 | 1,027,555 | 842,475 |
Interest expense | ||||
Deposits | 80,967 | 52,034 | 222,550 | 123,343 |
Federal funds purchased | 1,835 | 1,800 | 10,553 | 4,434 |
Other borrowings | 14,703 | 10,317 | 46,681 | 24,481 |
Subordinated notes | 4,191 | 4,191 | 12,573 | 12,573 |
Trust preferred subordinated debentures | 1,237 | 1,237 | 3,863 | 3,457 |
Total interest expense | 102,933 | 69,579 | 296,220 | 168,288 |
Net interest income | 252,168 | 232,175 | 731,335 | 674,187 |
Provision for credit losses | 11,000 | 13,000 | 58,000 | 52,000 |
Net interest income after provision for credit losses | 241,168 | 219,175 | 673,335 | 622,187 |
Non-interest income | ||||
Service charges on deposit accounts | 2,707 | 3,477 | 8,535 | 9,619 |
Wealth management and trust fee income | 2,330 | 2,065 | 6,468 | 5,996 |
Brokered loan fees | 8,691 | 6,141 | 21,093 | 17,124 |
Servicing income | 3,549 | 4,987 | 9,409 | 15,446 |
Swap fees | 1,196 | 1,355 | 2,828 | 4,269 |
Net gain/(loss) on sale of loans held for sale | (6,011) | (444) | (12,502) | (7,847) |
Other | 7,839 | 7,937 | 38,848 | 18,137 |
Total non-interest income | 20,301 | 25,518 | 74,679 | 62,744 |
Non-interest expense | ||||
Salaries and employee benefits | 80,106 | 77,327 | 234,818 | 222,268 |
Net occupancy expense | 8,125 | 8,362 | 23,914 | 22,952 |
Marketing | 14,753 | 10,214 | 40,548 | 29,127 |
Legal and professional | 11,394 | 10,764 | 31,428 | 29,948 |
Communications and technology | 10,805 | 7,435 | 31,025 | 21,211 |
FDIC insurance assessment | 5,220 | 6,524 | 14,480 | 18,884 |
Servicing related expenses | 8,165 | 4,207 | 19,613 | 12,379 |
Allowance and other carrying costs for other real estate owned | 2 | (1,864) | 2 | 467 |
Other | 10,800 | 13,174 | 35,481 | 37,998 |
Total non-interest expense | 149,370 | 136,143 | 431,309 | 395,234 |
Income before income taxes | 112,099 | 108,550 | 316,705 | 289,697 |
Income tax expense | 23,958 | 22,998 | 67,756 | 60,764 |
Net income | 88,141 | 85,552 | 248,949 | 228,933 |
Preferred stock dividends | 2,438 | 2,438 | 7,313 | 7,313 |
Net income available to common stockholders | 85,703 | 83,114 | 241,636 | 221,620 |
Other comprehensive income (loss) | ||||
Change in unrealized gain (loss) on available-for-sale debt securities arising during period, before tax | 884 | (2,223) | 10,752 | (2,390) |
Income tax expense (benefit) related to unrealized loss on available-for-sale debt securities | 186 | (467) | 2,259 | (502) |
Other comprehensive income (loss), net of tax | 698 | (1,756) | 8,493 | (1,888) |
Comprehensive income | $ 88,839 | $ 83,796 | $ 257,442 | $ 227,045 |
Basic earnings per common share | ||||
Basic earnings per common share | $ 1.70 | $ 1.66 | $ 4.81 | $ 4.45 |
Diluted earnings per common share | ||||
Diluted earnings per common share | $ 1.70 | $ 1.65 | $ 4.80 | $ 4.41 |
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 |
Beginning balance - Shares at Dec. 31, 2017 | 6,000,000 | 49,643,761 | 417 | ||||
Beginning balance - Amount at Dec. 31, 2017 | $ 2,202,721 | $ 150,000 | $ 496 | $ 961,305 | $ 1,090,500 | $ (8) | $ 428 |
Comprehensive income: | |||||||
Net income | 228,933 | 228,933 | |||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | (1,888) | (1,888) | |||||
Comprehensive income | 227,045 | ||||||
Stock-based compensation expense recognized in earnings | 6,383 | 6,383 | |||||
Preferred stock dividend | (7,313) | (7,313) | |||||
Issuance of stock related to stock-based awards - Shares | 97,061 | ||||||
Issuance of stock related to stock-based awards - Amount | (2,396) | $ 1 | (2,397) | ||||
Issuance of common stock related to warrants - shares | 436,855 | ||||||
Issuance of common stock related to warrants | $ 5 | (5) | |||||
Ending balance - Amount at Sep. 30, 2018 | 2,426,442 | $ 150,000 | $ 502 | 965,286 | 1,312,038 | $ (8) | (1,376) |
Ending balance - Shares at Sep. 30, 2018 | 6,000,000 | 50,177,677 | 417 | ||||
Beginning balance - Shares at Jun. 30, 2018 | 6,000,000 | 50,151,481 | 417 | ||||
Beginning balance - Amount at Jun. 30, 2018 | 2,343,530 | $ 150,000 | $ 502 | 963,732 | 1,228,924 | $ (8) | 380 |
Comprehensive income: | |||||||
Net income | 85,552 | 85,552 | |||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | (1,756) | (1,756) | |||||
Comprehensive income | 83,796 | ||||||
Stock-based compensation expense recognized in earnings | 2,292 | 2,292 | |||||
Preferred stock dividend | (2,438) | (2,438) | |||||
Issuance of stock related to stock-based awards - Shares | 25,989 | ||||||
Issuance of stock related to stock-based awards - Amount | (738) | (738) | |||||
Issuance of common stock related to warrants - shares | 207 | ||||||
Issuance of common stock related to warrants | $ 0 | 0 | |||||
Ending balance - Amount at Sep. 30, 2018 | 2,426,442 | $ 150,000 | $ 502 | 965,286 | 1,312,038 | $ (8) | (1,376) |
Ending balance - Shares at Sep. 30, 2018 | 6,000,000 | 50,177,677 | 417 | ||||
Beginning balance - Shares at Dec. 31, 2018 | 6,000,000 | 50,201,127 | 417 | ||||
Beginning balance - Amount at Dec. 31, 2018 | 2,500,394 | $ 150,000 | $ 502 | 967,890 | 1,381,492 | $ (8) | 518 |
Comprehensive income: | |||||||
Net income | 248,949 | 248,949 | |||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | 8,493 | 8,493 | |||||
Comprehensive income | 257,442 | ||||||
Stock-based compensation expense recognized in earnings | 8,565 | 8,565 | |||||
Preferred stock dividend | (7,313) | (7,313) | |||||
Issuance of stock related to stock-based awards - Shares | 108,176 | ||||||
Issuance of stock related to stock-based awards - Amount | (1,655) | $ 1 | (1,656) | ||||
Issuance of common stock related to warrants - shares | 8,768 | ||||||
Ending balance - Amount at Sep. 30, 2019 | 2,757,433 | $ 150,000 | $ 503 | 974,799 | 1,623,128 | $ (8) | 9,011 |
Ending balance - Shares at Sep. 30, 2019 | 6,000,000 | 50,318,071 | 417 | ||||
Beginning balance - Shares at Jun. 30, 2019 | 6,000,000 | 50,297,969 | 417 | ||||
Beginning balance - Amount at Jun. 30, 2019 | 2,668,452 | $ 150,000 | $ 503 | 972,219 | 1,537,425 | $ (8) | 8,313 |
Comprehensive income: | |||||||
Net income | 88,141 | 88,141 | |||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | 698 | 698 | |||||
Comprehensive income | 88,839 | ||||||
Stock-based compensation expense recognized in earnings | 3,023 | 3,023 | |||||
Preferred stock dividend | (2,438) | (2,438) | |||||
Issuance of stock related to stock-based awards - Shares | 20,102 | ||||||
Issuance of stock related to stock-based awards - Amount | (443) | (443) | |||||
Ending balance - Amount at Sep. 30, 2019 | $ 2,757,433 | $ 150,000 | $ 503 | $ 974,799 | $ 1,623,128 | $ (8) | $ 9,011 |
Ending balance - Shares at Sep. 30, 2019 | 6,000,000 | 50,318,071 | 417 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Income tax expense (benefit) related to unrealized loss on available-for-sale securities | $ 186 | $ (467) | $ 2,259 | $ (502) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income | $ 248,949 | $ 228,933 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 58,000 | 52,000 |
Depreciation and amortization | 25,754 | 24,776 |
Net (gain)/loss on sale of loans held for sale | 12,502 | 7,847 |
Increase (decrease) in valuation allowance on mortgage servicing rights | 8,360 | (2,823) |
Stock-based compensation expense | 12,973 | 15,633 |
Purchases and originations of loans held for sale | (7,288,823) | (5,012,188) |
Proceeds from sales and repayments of loans held for sale | 6,534,879 | 4,321,485 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable and other assets | (156,472) | (80,731) |
Accrued interest payable and other liabilities | 114,282 | 33,920 |
Net cash used in operating activities | (429,596) | (411,148) |
Investing activities | ||
Purchases of investment securities | (111,131) | (99,295) |
Principal payments received on investment securities | 5,534 | 2,998 |
Originations of mortgage finance loans | (99,799,613) | (73,661,362) |
Proceeds from pay-offs of mortgage finance loans | 97,725,705 | 73,491,735 |
Net increase in loans held for investment, excluding mortgage finance loans | (143,741) | (1,248,423) |
Purchase of premises and equipment, net | (15,047) | (5,655) |
Proceeds from sale of MSRs | 0 | 22,439 |
Proceeds from sale of other real estate owned, net | 79 | 13,645 |
Net cash used in investing activities | (2,338,214) | (1,483,918) |
Financing activities | ||
Net increase in deposits | 6,807,190 | 1,262,457 |
Costs from issuance of stock related to stock-based awards and warrants | (1,655) | (2,396) |
Preferred dividends paid | (7,313) | (7,313) |
Net increase/(decrease) in other borrowings | (1,400,000) | 400,000 |
Net increase/(decrease) in Federal funds purchased and repurchase agreements | (501,207) | 121,778 |
Net cash provided by financing activities | 4,897,015 | 1,774,526 |
Net increase/(decrease) in cash and cash equivalents | 2,129,205 | (120,540) |
Cash and cash equivalents at beginning of period | 3,080,065 | 2,905,591 |
Cash and cash equivalents at end of period | 5,209,270 | 2,785,051 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 282,559 | 158,750 |
Cash paid during the period for income taxes | $ 85,314 | $ 64,225 |
Operations and Summary of Signi
Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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 or national clientele of commercial borrowers. We are primarily a secured lender, with the majority of our loans held for investment, excluding mortgage finance loans and other national lines of business, being made to businesses headquartered or with operations in Texas. Our national lines of business provide specialized lending products to businesses throughout the United States. 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 are unaudited and 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, 2018 , included in our Annual Report on Form 10-K filed with the SEC on February 14, 2019 (the “ 2018 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. Accounting Changes 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 was effective for us on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. We have elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and have not restated comparative periods. Of the optional practical expedients available under ASU 2016-02, we have adopted all expedients except for the hindsight practical expedient. Our operating leases relate primarily to office space and bank branches. As a result of implementing ASU 2016-02, we recognized an operating lease right-of-use ("ROU") asset of $64 million and an operating lease liability of $74 million on January 1, 2019, with no impact on our consolidated statement of income or consolidated statement of cash flows compared to the prior lease accounting model. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. See Note 7 - Leases for additional information. 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 financial instruments and the status of contingencies are particularly susceptible to significant change. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, (in thousands except per share data) 2019 2018 2019 2018 Numerator: Net income $ 88,141 $ 85,552 $ 248,949 $ 228,933 Preferred stock dividends 2,438 2,438 7,313 7,313 Net income available to common stockholders $ 85,703 $ 83,114 $ 241,636 $ 221,620 Denominator: Denominator for basic earnings per share—weighted average shares 50,305,844 50,163,433 50,273,485 49,853,515 Effect of employee stock-based awards(1) 110,558 207,391 119,277 240,376 Effect of warrants to purchase common stock — 10,525 — 115,537 Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions 50,416,402 50,381,349 50,392,762 50,209,428 Basic earnings per common share $ 1.70 $ 1.66 $ 4.81 $ 4.45 Diluted earnings per common share $ 1.70 $ 1.65 $ 4.80 $ 4.41 (1) SARs and RSUs outstanding of 107,615 at September 30, 2019 and 4,000 at September 30, 2018 have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Investment Securities | Investment Securities Available-for-Sale Debt Securities The following is a summary of available-for-sale debt securities: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2019 Available-for-sale debt securities: Residential mortgage-backed securities $ 5,594 $ 324 $ — $ 5,918 Tax-exempt asset-backed securities 183,273 14,340 — 197,613 Credit risk transfer securities 14,713 — (3,258 ) 11,455 $ 203,580 $ 14,664 $ (3,258 ) $ 214,986 December 31, 2018 Available-for-sale debt securities: Residential mortgage-backed securities $ 6,874 $ 368 $ — $ 7,242 Tax-exempt asset-backed securities 95,518 286 — 95,804 $ 102,392 $ 654 $ — $ 103,046 During the first quarter of 2019, we acquired a $92.0 million tax-exempt security backed with underlying cash flows from municipal revenue bonds, as well as $15.0 million in credit risk transfer ("CRT") securities. The securities were all recorded as available-for-sale upon acquisition and subsequently marked to fair value as of quarter end. CRT securities represent unsecured obligations issued by government sponsored entities ("GSEs") such as Freddie Mac and are designed to transfer mortgage credit risk from the GSE to private investors. CRT securities are structured to be subject to the performance of a reference pool of mortgage loans in which we share in 50% of the first losses with the GSE. If the reference pool incurs losses, the amount we will recover on the notes is reduced by our share of the amount of such losses, which could potentially be up to 100% of the amount outstanding. The CRT securities are generally interest-only for an initial period of time and are restricted from being transferred until a future date. The amortized cost and estimated fair value of available-for-sale debt securities are presented below by contractual maturity: (in thousands, except percentage data) Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total September 30, 2019 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ — $ 1,135 $ — $ 4,459 $ 5,594 Estimated fair value — 1,232 — 4,686 5,918 Weighted average yield(3) — % 5.54 % — % 4.68 % 4.86 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 183,273 183,273 Estimated fair value — — — 197,613 197,613 Weighted average yield(2)(3) — % — % — % 4.20 % 4.20 % CRT securities:(1) Amortized Cost — — — 14,713 14,713 Estimated fair value — — — 11,455 11,455 Weighted average yield(3) — % — % — % 2.15 % 2.15 % Total available-for-sale debt securities: Amortized cost $ 203,580 Estimated fair value $ 214,986 December 31, 2018 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ 3 $ 1,573 $ — $ 5,298 $ 6,874 Estimated fair value 4 1,668 — 5,570 7,242 Weighted average yield(3) 6.50 % 5.54 % — % 4.53 % 4.76 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 95,518 95,518 Estimated fair value — — — 95,804 95,804 Weighted average yield(2)(3) — % — % — % 4.25 % 4.25 % Total available-for-sale debt securities: Amortized cost $ 102,392 Estimated fair value $ 103,046 (1) Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. (2) Yields have been adjusted to a tax equivalent basis assuming a 21% federal tax rate. (3) Yields are calculated based on amortized cost. The following table discloses our available-for-sale debt securities as of September 30, 2019 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: September 30, 2019 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss CRT securities $ 11,455 $ (3,258 ) $ — $ — $ 11,455 $ (3,258 ) At September 30, 2019 , the CRT securities were the only available-for-sale debt securities in an unrealized loss position. There were no available-for-sale debt securities in an unrealized loss position at December 31, 2018. We conduct periodic reviews of securities with unrealized losses to evaluate whether the impairment is other-than-temporary. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income ("AOCI") for available-for-sale debt securities. When we have the intent to sell or we believe we will more likely than not be required to sell an available-for-sale debt security, the entire excess of its amortized cost basis over its fair value is recognized in earnings. For available-for-sale debt securities that we do not intend to sell and are not likely to be required to sell, only the credit-related impairment is recognized in earnings and any non-credit-related impairment is recorded in AOCI. Based on the results of our periodic review of available-for-sale debt securities in an unrealized loss position at March 31, 2019, we recorded a $331,000 other-than-temporary credit-related impairment on the CRT securities, reducing the amortized cost of the securities. The loss was measured as the excess of the amortized costs basis of the security over the present value of cash flows expected to be collected and was recorded in other non-interest expense. Based on the results of our periodic review at September 30, 2019, no additional other-than-temporary credit-related impairment was recorded. These securities also have unrealized losses, which we do not believe are other-than-temporary. We have evaluated the near-term prospects of the investments in relation to the severity and duration of the unrealized losses and based on that evaluation have determined that we have the ability and intent to hold the investments until recovery of fair value. Available-for-sale debt securities with carrying values of approximately $3.9 million and $1.4 million were pledged to secure certain customer repurchase agreements and deposits, respectively, at September 30, 2019 . The comparative amounts at December 31, 2018 were $4.8 million and $1.7 million , respectively. Equity Securities Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. At September 30, 2019 and December 31, 2018 , we had $23.0 million and $17.2 million , respectively, in equity securities recorded at fair value. The following is a summary of unrealized and realized gains/(losses) recognized on equity securities and included in other non-interest income in the consolidated statements of income: Three months ended September 30, Nine months ended September 30, (in thousands) 2019 2018 2019 2018 Net gains/(losses) recognized during the period $ 37 $ 253 $ 1,876 $ 149 Less: Realized net gains/(losses) recognized during the period on equity securities sold 111 18 87 180 Unrealized net gains/(losses) recognized during the period on equity securities still held $ (74 ) $ 235 $ 1,789 $ (31 ) |
Loans Held for Investment and A
Loans Held for Investment and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans Held for Investment and Allowance for Loan Losses | Loans Held for Investment and Allowance for Loan Losses Loans held for investment are summarized by portfolio segment as follows: (in thousands) September 30, 2019 December 31, 2018 Commercial $ 10,377,952 $ 10,373,288 Mortgage finance(1) 7,951,432 5,877,524 Construction 2,641,019 2,120,966 Real estate 3,513,799 3,929,117 Consumer 68,033 63,438 Equipment leases 266,600 312,191 Gross loans held for investment 24,818,835 22,676,524 Deferred income (net of direct origination costs) (94,579 ) (108,450 ) Allowance for loan losses (190,138 ) (191,522 ) Total loans held for investment, net $ 24,534,118 $ 22,376,552 (1) Balances at September 30, 2019 and December 31, 2018 are stated net of $734.7 million and $193.0 million of participations sold, respectively. Summary of Loan Loss Experience The following tables summarize the credit risk profile of our loans held for investment by internally assigned grades and non-accrual status: (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Equipment Leases Total September 30, 2019 Grade: Pass $ 9,986,993 $ 7,951,432 $ 2,605,995 $ 3,404,146 $ 67,844 $ 266,101 $ 24,282,511 Special mention 198,186 — 19,324 73,927 150 245 291,832 Substandard-accruing 83,502 — 15,700 24,350 — 254 123,806 Non-accrual 109,271 — — 11,376 39 — 120,686 Total loans held for investment $ 10,377,952 $ 7,951,432 $ 2,641,019 $ 3,513,799 $ 68,033 $ 266,600 $ 24,818,835 December 31, 2018 Grade: Pass $ 10,034,597 $ 5,877,524 $ 2,099,955 $ 3,850,811 $ 61,815 $ 309,775 $ 22,234,477 Special mention 120,531 — 21,011 47,644 — 2,223 191,409 Substandard-accruing 140,297 — — 28,205 1,568 193 170,263 Non-accrual 77,863 — — 2,457 55 — 80,375 Total loans held for investment $ 10,373,288 $ 5,877,524 $ 2,120,966 $ 3,929,117 $ 63,438 $ 312,191 $ 22,676,524 The allowance for loan losses is comprised of general reserves and specific reserves for impaired loans based on our estimate of losses inherent in the portfolio at the balance sheet date, but not yet identified with specified loans. We believe the allowance at September 30, 2019 to be appropriate, given management's assessment of losses inherent in the portfolio as of the evaluation date, the growth in the loan and lease portfolio, current economic conditions in our market areas and other factors. The following table details activity in the allowance for loan losses, as well as the recorded investment in loans held for investment, by portfolio segment and disaggregated on the basis of our impairment methodology. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Equipment Leases Additional Qualitative Reserve Total Nine months ended September 30, 2019 Allowance for loan losses: Beginning balance $ 129,442 $ — $ 19,242 $ 33,353 $ 425 $ 1,829 $ 7,231 $ 191,522 Provision for loan losses 74,462 1,966 712 (7,916 ) (419 ) (1,491 ) (7,231 ) 60,083 Charge-offs 62,678 — — 177 — 19 — 62,874 Recoveries 1,337 — — — 60 10 — 1,407 Net charge-offs (recoveries) 61,341 — — 177 (60 ) 9 — 61,467 Ending balance $ 142,563 $ 1,966 $ 19,954 $ 25,260 $ 66 $ 329 $ — $ 190,138 Period end allowance for loan losses allocated to: Loans individually evaluated for impairment $ 26,418 $ — $ — $ 101 $ 8 $ — $ — $ 26,527 Loans collectively evaluated for impairment 116,145 1,966 19,954 25,159 58 329 — 163,611 Total $ 142,563 $ 1,966 $ 19,954 $ 25,260 $ 66 $ 329 $ — $ 190,138 Period end loans allocated to: Loans individually evaluated for impairment $ 109,271 $ — $ — $ 11,376 $ 39 $ — $ — $ 120,686 Loans collectively evaluated for impairment 10,268,681 7,951,432 2,641,019 3,502,423 67,994 266,600 — 24,698,149 Total $ 10,377,952 $ 7,951,432 $ 2,641,019 $ 3,513,799 $ 68,033 $ 266,600 $ — $ 24,818,835 Nine months ended September 30, 2018 Allowance for loan losses: Beginning balance $ 118,806 $ — $ 19,273 $ 34,287 $ 357 $ 3,542 $ 8,390 $ 184,655 Provision for loan losses 55,808 — 331 (1,635 ) 757 (1,425 ) (3,048 ) 50,788 Charge-offs 45,273 — — — 767 319 — 46,359 Recoveries 1,069 — — 43 78 32 — 1,222 Net charge-offs (recoveries) 44,204 — — (43 ) 689 287 — 45,137 Ending balance $ 130,410 $ — $ 19,604 $ 32,695 $ 425 $ 1,830 $ 5,342 $ 190,306 Period end allowance for loan losses allocated to: Loans individually evaluated for impairment $ 30,855 $ — $ — $ 70 $ 10 $ — $ — $ 30,935 Loans collectively evaluated for impairment 99,555 — 19,604 32,625 415 1,830 5,342 159,371 Total $ 130,410 $ — $ 19,604 $ 32,695 $ 425 $ 1,830 $ 5,342 $ 190,306 Period end loans allocated to: Loans individually evaluated for impairment $ 105,522 $ — $ — $ 9,057 $ 60 $ — $ — $ 114,639 Loans collectively evaluated for impairment 10,011,423 5,477,787 2,263,463 3,915,625 51,632 319,411 — 22,039,341 Total $ 10,116,945 $ 5,477,787 $ 2,263,463 $ 3,924,682 $ 51,692 $ 319,411 $ — $ 22,153,980 During 2019, we refined our methodology for calculating the allowance for loan losses to improve the specificity of the risk weights and the risk-weighting process for each product type assigned to the loans in our held for investment portfolio. As a result of these refinements, we believe that management is better able to allocate inherent losses previously accounted for in the additional qualitative reserve component of our allowance for loan losses to specific product types and credit risk grades, thus eliminating the additional qualitative reserve component of our allowance for loan losses in 2019. Additionally, this improved specificity and consideration of current mortgage market conditions resulted in the allocation of a portion of the company’s provision for loan losses to our mortgage finance loan portfolio for the first time in 2019. The following tables detail our impaired loans held for investment by portfolio segment. In accordance with ASC 310, Receivables , we have also included all restructured and formerly restructured loans in our impaired loan totals. (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized September 30, 2019 With no related allowance recorded: Commercial Business loans $ 17,420 $ 31,270 $ — $ 18,902 $ — Energy loans 18,758 28,193 — 10,340 — Real estate Market risk 8,757 8,757 — 3,750 — Commercial 908 908 — 6,500 — Secured by 1-4 family 1,220 1,220 — 1,228 — Consumer — — — — — Equipment leases — — — — — Total impaired loans with no allowance recorded $ 47,063 $ 70,348 $ — $ 40,720 $ — With an allowance recorded: Commercial Business loans $ 28,662 $ 31,730 $ 13,483 $ 24,184 $ — Energy loans 44,431 64,171 12,935 50,955 — Real estate Market risk 259 259 50 2,855 — Commercial — — — — — Secured by 1-4 family 232 232 51 750 — Consumer 39 39 8 71 — Equipment leases — — — — — Total impaired loans with an allowance recorded $ 73,623 $ 96,431 $ 26,527 $ 78,815 $ — Combined: Commercial Business loans $ 46,082 $ 63,000 $ 13,483 $ 43,086 $ — Energy loans 63,189 92,364 12,935 61,295 — Real estate Market risk 9,016 9,016 50 6,605 — Commercial 908 908 — 6,500 — Secured by 1-4 family 1,452 1,452 51 1,978 — Consumer 39 39 8 71 — Equipment leases — — — — — Total impaired loans $ 120,686 $ 166,779 $ 26,527 $ 119,535 $ — (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2018 With no related allowance recorded: Commercial Business loans $ 23,367 $ 55,008 $ — $ 16,426 $ 133 Energy loans 12,188 13,363 — 17,135 — Real estate Market risk — — — — — Commercial 7,388 7,388 — 3,215 — Secured by 1-4 family 1,233 1,233 — 734 — Consumer — — — — — Equipment leases — — — — — Total impaired loans with no allowance recorded $ 44,176 $ 76,992 $ — $ 37,510 $ 133 With an allowance recorded: Commercial Business loans $ 17,529 $ 17,564 $ 4,679 $ 41,307 $ — Energy loans 25,344 28,105 3,573 25,672 — Real estate Market risk — — — 49 — Commercial — — — 83 — Secured by 1-4 family 236 236 48 188 — Consumer 55 55 10 54 — Equipment leases — — — 275 — Total impaired loans with an allowance recorded $ 43,164 $ 45,960 $ 8,310 $ 67,628 $ — Combined: Commercial Business loans $ 40,896 $ 72,572 $ 4,679 $ 57,733 $ 133 Energy loans 37,532 41,468 3,573 42,807 — Real estate Market risk — — — 49 — Commercial 7,388 7,388 — 3,298 — Secured by 1-4 family 1,469 1,469 48 922 — Consumer 55 55 10 54 — Equipment leases — — — 275 — Total impaired loans $ 87,340 $ 122,952 $ 8,310 $ 105,138 $ 133 Average impaired loans outstanding during the nine months ended September 30, 2019 and 2018 totaled $119.5 million and $105.0 million , respectively. As of September 30, 2019 and December 31, 2018 , none of our non-accrual loans were earning interest income on a cash basis. The table below provides an age analysis of our loans held for investment: (in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days(1) Total Past Due Non-accrual Current Total September 30, 2019 Commercial Business loans $ 31,313 $ 6,039 $ 19,084 $ 56,436 $ 46,082 $ 8,728,321 $ 8,830,839 Energy 30,000 4,200 7,550 41,750 63,189 1,442,174 1,547,113 Mortgage finance loans — — — — — 7,951,432 7,951,432 Construction Market risk — 15,700 — 15,700 — 2,520,335 2,536,035 Commercial — — — — — 81,159 81,159 Secured by 1-4 family — — — — — 23,825 23,825 Real estate Market risk 3,129 14,004 2,061 19,194 9,016 2,294,067 2,322,277 Commercial — — — — 908 821,323 822,231 Secured by 1-4 family 312 — 953 1,265 1,452 366,574 369,291 Consumer 277 20 — 297 39 67,697 68,033 Equipment leases — — — — — 266,600 266,600 Total loans held for investment $ 65,031 $ 39,963 $ 29,648 $ 134,642 $ 120,686 $ 24,563,507 $ 24,818,835 (1) Loans past due 90 days and still accruing includes premium finance loans of $9.2 million . These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The receipt of the refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. As of September 30, 2019 and December 31, 2018 , we did not have any loans considered restructured that were not on non-accrual. Of the non-accrual loans at September 30, 2019 and December 31, 2018 , $15.5 million and $20.0 million , respectively, met the criteria for restructured. These loans had no unfunded commitments at their respective balance sheet dates. The following table details the recorded investment at September 30, 2019 and 2018 of loans that have been restructured during the nine months ended September 30, 2019 and 2018 by type of modification: Extended Maturity Adjusted Payment Schedule Total (in thousands, except number of contracts) Number of Contracts Balance at Period End Number of Contracts Balance at Period End Number of Contracts Balance at Period End Nine months ended September 30, 2019 Commercial: Business loans 1 $ 1,824 — $ — 1 $ 1,824 Energy loans 1 3,941 — — 1 3,941 Total 2 $ 5,765 — $ — 2 $ 5,765 Nine months ended September 30, 2018 Commercial: Business loans — $ — 2 $ 2,582 $ 2 $ 2,582 Energy loans — $ — 5 $ 12,332 5 $ 12,332 Total — $ — 7 $ 14,914 7 $ 14,914 Restructured loans generally include terms to temporarily place the loan on interest only, extend the payment terms or reduce the interest rate. We did not forgive any principal on the above restructured loans. At September 30, 2019 , all of the above loans restructured were on non-accrual. The restructuring of the loans did not have a significant impact on our allowance for loan losses at September 30, 2019 or 2018 . As of September 30, 2019 and 2018 , 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 | 9 Months Ended |
Sep. 30, 2019 | |
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: Three months ended September 30, Nine months ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ — $ 9,526 $ 79 $ 11,742 Sales — (11,447 ) (79 ) (11,663 ) Valuation allowance for OREO — 2,000 — — Ending balance $ — $ 79 $ — $ 79 |
Certain Transfers of Financial
Certain Transfers of Financial Assets | 9 Months Ended |
Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Certain Transfers of Financial Assets | Certain Transfers of Financial Assets The table below presents a reconciliation of the changes in loans held for sale: Nine Months Ended September 30, (in thousands) 2019 2018 Outstanding balance(1): Beginning balance $ 1,949,785 $ 1,012,580 Loans purchased and originated 7,288,823 5,012,188 Payments and loans sold (6,571,942 ) (4,366,138 ) Ending balance 2,666,666 1,658,630 Fair value adjustment: Beginning balance 19,689 (1,576 ) Increase/(decrease) to fair value (12,130 ) (5,124 ) Ending balance 7,559 (6,700 ) Loans held for sale at fair value $ 2,674,225 $ 1,651,930 (1) Includes $7.1 million and $299,000 of loans held for sale that are carried at lower of cost or market as of September 30, 2019 and December 31, 2018 , respectively, as well as $3.3 million as of December 31, 2017 . There were no loans held for sale carried at lower of cost or market as of September 30, 2018 . No loans held for sale were on non-accrual as of September 30, 2019 or December 31, 2018 . At September 30, 2019 and December 31, 2018 , we had $9.2 million and $16.8 million , respectively, in loans held for sale that were 90 days or more past due. The $9.2 million in loans held for sale that were 90 days or more past due at September 30, 2019 included $7.3 million in loans guaranteed by U.S. government agencies that were purchased out of Ginnie Mae securities and recorded as loans held for sale, at fair value, on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. Also included in the $9.2 million were $1.9 million in loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not the obligation, to repurchase if defined delinquent loan criteria are met, and therefore must record as held for sale on our balance sheet regardless of whether the repurchase option has been exercised. At December 31, 2018 , $16.0 million of the $16.8 million in loans held for sale were loans guaranteed by U.S. government agencies that were purchased out of Ginnie Mae securities and recorded as loans held for sale, at fair value, on the balance sheet. From time to time we retain the right to service the loans sold through our MCA program, creating mortgage servicing rights ("MSRs") which are recorded as assets on our balance sheet. A summary of MSR activity is as follows: Nine months ended September 30, (in thousands) 2019 2018 MSRs: Balance, beginning of year $ 42,474 $ 88,150 Capitalized servicing rights 22,610 32,871 Amortization (7,599 ) (7,920 ) Sales — (26,742 ) Balance, end of period $ 57,485 $ 86,359 Valuation allowance: Balance, beginning of year $ — $ 2,823 Increase (decrease) in valuation allowance 8,360 (2,823 ) Balance, end of period $ 8,360 $ — MSRs, net $ 49,125 $ 86,359 MSRs, fair value $ 49,125 $ 98,391 At September 30, 2019 and December 31, 2018 , our servicing portfolio of residential mortgage loans had an outstanding principal balance of $5.6 billion and $3.9 billion , respectively. In connection with the servicing of these loans, we hold deposits in the name of investors representing escrow funds for taxes and insurance, as well as collections in transit to the 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 $75.2 million at September 30, 2019 and $37.9 million at December 31, 2018 . The estimated fair value of the MSR assets is obtained from an independent third party and reviewed by management on a quarterly basis. MSRs typically do not trade in an active, open market with readily observable prices; as such, the fair value of MSRs is determined using a discounted cash flow model to calculate the present value of the estimated future net servicing income. The assumptions utilized in the discounted cash flow model are based on market data for comparable assets, where available. Each quarter, management and the independent third party review the key assumptions used in the discounted cash flow model and make adjustments as necessary to estimate the fair value of the MSRs. At September 30, 2019 , the estimated fair value of MSRs was adjusted as a result of the decline in mortgage interest rates experienced in the first nine months of 2019, which resulted in an $8.4 million impairment charge. There was no impairment charge at December 31, 2018 . The following summarizes the assumptions used by management to determine the fair value of MSRs: September 30, 2019 December 31, 2018 Average discount rates 9.06 % 9.55 % Expected prepayment speeds 14.48 % 9.77 % Weighted-average life, in years 5.3 7.0 A sensitivity analysis of changes in the fair value of our MSR portfolio resulting from certain key assumptions is presented in the following table: (in thousands) September 30, 2019 December 31, 2018 50 bp adverse change in prepayment speed $ (6,077 ) $ (6,028 ) 100 bp adverse change in prepayment speed (9,340 ) (11,629 ) These sensitivities are hypothetical and actual results may differ materially due to a number of factors. The effect on fair value of a 10% variation in assumptions generally cannot be determined with confidence because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may be correlated with changes in other factors, which could impact the sensitivity analysis as presented. In conjunction with the sale and securitization of loans held for sale, we may be exposed to liability resulting from repurchase, indemnification and make-whole agreements. Our estimated exposure related to those agreements totaled $5.4 million and $1.6 million at September 30, 2019 and December 31, 2018 , respectively, and is recorded in other liabilities in the consolidated balance sheets. We incurred $4.5 million in losses due to make-whole obligations during the nine months ended September 30, 2019 compared to $187,000 during the nine months ended September 30, 2018 . The increase in make-whole obligation losses is primarily related to an increase in early payoffs resulting from the declining interest rate environment. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Operating leases in which we are the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in other assets and other liabilities, respectively, on our consolidated balance sheets. We do not currently have any significant finance leases in which we are the lessee. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income and other comprehensive income. Our leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 13 years . Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of September 30, 2019 , operating lease ROU assets and liabilities were $84.3 million and $98.4 million , respectively. The table below summarizes our net lease cost: (in thousands) Three months ended Nine months ended September 30, 2019 Operating lease cost $ 3,836 $ 10,973 Variable lease cost 845 2,977 Sublease income (32 ) (94 ) Net lease cost $ 4,649 $ 13,856 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,592 $ 11,054 Non-cash changes in ROU assets $ 13,610 $ 97,898 Non-cash changes in lease liabilities(1) $ 13,610 $ 107,719 (1) Includes $4.2 million and $87.9 million in lease liabilities from new ROU assets obtained during the three and nine months ended September 30, 2019, respectively. The table below summarizes other information related to our operating leases: September 30, 2019 Weighted-average remaining lease term - operating leases, in years 7.3 Weighted-average discount rate - operating leases 2.75 % The table below summarizes the maturity of remaining lease liabilities: (in thousands) September 30, 2019 2019 $ 3,666 2020 16,518 2021 17,035 2022 16,235 2023 16,271 2024 and thereafter 39,511 Total lease payments 109,236 Less: Interest (10,824 ) Present value of lease liabilities $ 98,412 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The table below presents our financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. This allowance is recorded in other liabilities on the consolidated balance sheet. Three months ended September 30, Nine months ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance of allowance for off-balance sheet credit losses $ 10,790 $ 10,458 $ 11,434 $ 9,071 Provision for off-balance sheet credit losses (1,439 ) (175 ) (2,083 ) 1,212 Ending balance of allowance for off-balance sheet credit losses $ 9,351 $ 10,283 $ 9,351 $ 10,283 (in thousands) September 30, 2019 December 31, 2018 Commitments to extend credit - period end balance $ 8,139,889 $ 8,030,198 Standby letters of credit - period end balance $ 277,832 $ 236,537 |
Regulatory Restrictions
Regulatory Restrictions | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Restrictions | Regulatory Restrictions 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 adverse 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 (the "Basel III Capital Rules") adopted by U.S. federal regulatory authorities, among other things, (i) establishes the capital measure called "Common Equity Tier 1" ("CET1"), (ii) specifies that Tier 1 capital consist of CET1 and "Additional Tier 1 Capital" instruments meeting stated requirements, (iii) requires that most deductions/adjustments to regulatory capital measures be made to CET1 and not to other components of capital and (iv) defines the scope of the deductions/adjustments to the capital measures. The Basel III Capital Rules became effective for us on January 1, 2015 with certain transition provisions that fully phased in beginning on January 1, 2019. Additionally, the Basel III Capital Rules require that we maintain a capital conservation buffer with respect to each of CET1, Tier 1 and total capital to risk-weighted assets, which provides for capital levels that exceed the minimum risk-based capital adequacy requirements. The capital conservation buffer is subject to a three year phase-in period that began on January 1, 2016 and was fully phased-in on January 1, 2019 at 2.5% . The required phase-in capital conservation buffer during 2018 was 1.875% . A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers. Quantitative measures established by regulation 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 September 30, 2019 , that the Company and the Bank meet 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, 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 September 30, 2019 and December 31, 2018 . 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 change could reduce 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 actual and required capital ratios under the Basel III Capital Rules: Actual Minimum Capital Required - Basel III Phase-In Schedule Minimum capital Required - Basel III Fully Phased-In Required to be Considered Well Capitalized (dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio September 30, 2019 CET1 Company $ 2,579,029 8.59 % N/A N/A $ 2,102,394 7.00 % N/A N/A Bank 2,598,906 8.66 % N/A N/A 2,101,222 7.00 % 1,951,135 6.50 % Total capital (to risk-weighted assets) Company 3,318,598 11.05 % N/A N/A 3,153,591 10.50 % N/A N/A Bank 3,179,785 10.59 % N/A N/A 3,151,833 10.50 % 3,001,746 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,837,070 9.45 % N/A N/A 2,552,907 8.50 % N/A N/A Bank 2,756,947 9.18 % N/A N/A 2,551,484 8.50 % 2,401,397 8.00 % Tier 1 capital (to average assets)(1) Company 2,837,070 8.63 % N/A N/A 1,314,356 4.00 % N/A N/A Bank 2,756,947 8.39 % N/A N/A 1,313,883 4.00 % 1,642,353 5.00 % December 31, 2018 CET1 Company $ 2,330,599 8.58 % $ 1,732,501 6.38 % $ 1,902,354 7.00 % N/A N/A Bank 2,340,988 8.62 % 1,731,955 6.38 % 1,901,755 7.00 % 1,765,915 6.50 % Total capital (to risk-weighted assets) Company 3,074,097 11.31 % 2,683,679 9.88 % 2,853,532 10.50 % N/A N/A Bank 2,925,872 10.77 % 2,682,833 9.88 % 2,852,632 10.50 % 2,716,793 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,589,374 9.53 % 2,140,149 7.88 % 2,310,002 8.50 % N/A N/A Bank 2,499,763 9.20 % 2,139,474 7.88 % 2,309,274 8.50 % 2,173,434 8.00 % Tier 1 capital (to average assets)(1) Company 2,589,374 9.87 % 1,049,694 4.00 % 1,049,694 4.00 % N/A N/A Bank 2,499,763 9.53 % 1,049,296 4.00 % 1,049,296 4.00 % 1,311,620 5.00 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. 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 September 30, 2019 , our mortgage finance loans were $8.0 billion compared to the average for the quarter ended September 30, 2019 of $8.1 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 (excluding MCA mortgage loans held for sale, which receive lower risk weights), the period-end fluctuation in these balances can significantly impact our reported ratios. Due to the actual risk profile and liquidity of this asset class, we manage capital allocated to mortgage finance loans based on changing trends in average balances and do not believe that the period-end balance is representative of risk characteristics that would justify higher allocations. However, we monitor our capital allocation to confirm that all capital levels remain above well-capitalized levels. Dividends that may be paid by banks are routinely restricted by various regulatory authorities. The amount that can be paid in any calendar year without prior approval of our 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 our common stock during the nine months ended September 30, 2019 , or 2018 . |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Compensation Related Costs [Abstract] | |
Stock-based Compensation | Stock-based Compensation We have long-term incentive plans under which stock-based compensation awards are granted to employees and directors by the board of directors, or its designated committee. Grants are subject to vesting requirements and may include, among other things, nonqualified stock options, stock appreciation rights ("SARs"), restricted stock units ("RSUs"), restricted stock and performance units, or any combination thereof. There are 2,550,000 total shares authorized for grant under the plans. The table below summarizes our stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018 : Three months ended September 30, Nine months ended September 30, (in thousands) 2019 2018 2019 2018 Stock-settled awards: SARs $ — $ 19 $ 6 $ 112 RSUs 3,015 2,261 8,532 6,235 Restricted stock 8 12 27 36 Cash-settled performance units 1,005 2,144 4,408 9,250 Total $ 4,028 $ 4,436 $ 12,973 $ 15,633 (in thousands except period data) September 30, 2019 Unrecognized compensation expense related to unvested stock-settled awards $ 26,435 Weighted average period over which expense is expected to be recognized, in years 3.1 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures 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. 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 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. Assets and liabilities measured at fair value are as follows: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 September 30, 2019 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 5,918 $ — Tax-exempt asset-backed securities — — 197,613 CRT securities — — 11,455 Equity securities(1)(2) 15,890 7,146 — Loans held for sale(3) — 2,657,969 9,198 Loans held for investment(4)(6) — — 56,993 Derivative assets(7) — 62,726 — Derivative liabilities(7) — 60,393 — Non-qualified deferred compensation plan liabilities(8) 16,790 — — December 31, 2018 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 7,242 $ — Tax-exempt asset-backed securities — — 95,804 Equity securities(1)(2) 10,262 6,908 — Loans held for sale(3) — 1,952,760 16,415 Loans held for investment(4)(6) — — 29,885 OREO(5)(6) — — 79 Derivative assets(7) — 21,806 — Derivative liabilities(7) — 41,375 — Non-qualified deferred compensation plan liabilities(8) 10,148 — — (1) Securities are measured at fair value on a recurring basis, generally monthly, except for tax-exempt asset-backed securities and CRT securities which are measured quarterly. (2) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. (3) Loans held for sale purchased through our MCA program 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 generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. Level 3 Valuations The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis: Net Realized/Unrealized Gains (Losses) (in thousands) Balance at Beginning of Period Purchases / Additions Sales / Reductions Realized Unrealized Balance at End of Period Three months ended September 30, 2019 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 201,339 $ — $ (4,116 ) $ — $ 390 $ 197,613 CRT securities $ 10,953 $ — $ — $ — $ 502 $ 11,455 Loans held for sale(2) $ 10,930 $ — $ (2,056 ) $ 102 $ 222 $ 9,198 Three months ended September 30, 2018 Tax-exempt asset-backed securities(1) $ — $ 95,521 $ — $ — $ (2,152 ) $ 93,369 Loans held for sale(2) $ 27,929 $ 901 $ (6,948 ) $ (134 ) $ 165 $ 21,913 Nine months ended September 30, 2019 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 95,804 $ 92,010 $ (4,254 ) $ — $ 14,053 $ 197,613 CRT securities $ — $ 15,044 $ — $ (331 ) $ (3,258 ) $ 11,455 Loans held for sale(2) $ 16,415 $ — $ (8,466 ) $ 450 $ 799 $ 9,198 Nine months ended September 30, 2018 Tax-exempt asset-backed securities(1) $ — $ 95,521 $ — $ — $ (2,152 ) $ 93,369 Loans held for sale(2) $ — $ 38,430 $ (14,936 ) $ (66 ) $ (1,515 ) $ 21,913 (1) Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI. Realized gains/(losses) are recorded in other non-interest income. (2) Realized and unrealized gains/(losses) on loans held for sale are recorded in gain/(loss) on sale of loans held for sale. Tax-exempt asset-backed securities The fair value of tax-exempt asset-backed securities is based on a discounted cash flow model, which utilizes Level 3, or unobservable, inputs, the most significant of which were a discount rate and weighted-average life. At September 30, 2019 , a discount rate of 3.01% and a weighted-average life of 7.3 years were utilized to determine the fair value of these securities, compared to 4.21% and 9.2 years, respectively, at December 31, 2018 . CRT securities The fair value of CRT securities is based on a discounted cash flow model, which utilizes Level 3, or unobservable, inputs, the most significant of which were a discount rate and weighted-average life. At September 30, 2019 , a discount rate of 4.75% and a weighted-average life of 9.5 years were utilized to determine the fair value of these securities. Loans held for sale The fair value of loans held for sale using Level 3 inputs include loans that cannot be sold through normal sale channels and thus require significant management judgment or estimation when determining the fair value. The fair value of such loans is generally based upon quoted prices of comparable loans with a liquidity discount applied. At September 30, 2019 , the fair value of these loans was calculated using a weighted-average discounted price of 95.3% compared to 92.9% at December 31, 2018 . Loans held for investment Certain impaired loans held for investment are reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral. The $57.0 million fair value of loans held for investment at September 30, 2019 reported above includes impaired loans held for investment with a carrying value of $72.6 million that were reduced by specific valuation allowance allocations totaling $15.6 million based on collateral valuations utilizing Level 3 inputs. The $29.9 million fair value of loans held for investment at December 31, 2018 reported above includes impaired loans with a carrying value of $32.2 million that were reduced by specific valuation allowance allocations totaling $2.3 million based on collateral valuations utilizing Level 3 inputs. OREO Certain foreclosed assets, upon initial recognition, are recorded at fair value less estimated selling costs. At December 31, 2018 , OREO had a carrying value of $79,000 , with no specific valuation allowance. The fair value of OREO was computed based on third party appraisals, which are Level 3 inputs. Fair Value of Financial Instruments GAAP requires 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: September 30, 2019 December 31, 2018 (in thousands) Carrying Amount Estimated Fair Value Carrying Estimated Financial assets: Level 1 inputs: Cash and cash equivalents $ 5,209,270 $ 5,209,270 $ 3,080,065 $ 3,080,065 Investment securities 15,890 15,890 10,262 10,262 Level 2 inputs: Investment securities 13,064 13,064 14,150 14,150 Loans held for sale 2,657,969 2,657,969 1,953,059 1,953,059 Derivative assets 62,726 62,726 21,806 21,806 Level 3 inputs: Investment securities 209,068 209,068 95,804 95,804 Loans held for sale 9,198 9,198 16,415 16,415 Loans held for investment, net 24,534,118 24,564,623 22,376,552 22,347,876 Financial liabilities: Level 2 inputs: Federal funds purchased 127,800 127,800 629,169 629,169 Customer repurchase agreements 12,167 12,167 12,005 12,005 Other borrowings 2,500,000 2,500,000 3,900,000 3,900,000 Subordinated notes 282,038 293,472 281,767 283,349 Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 Derivative liabilities 60,393 60,393 41,375 41,375 Level 3 inputs: Deposits 27,413,303 27,420,277 20,606,113 20,608,494 The estimated fair value for cash and cash equivalents, variable rate loans and variable rate debt approximates carrying value. The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Investment Securities Within the investment securities portfolio, we hold equity securities related to our non-qualified deferred compensation plan that are valued using quoted market prices for identical equity securities in an active market, and are classified as Level 1 assets in the fair value hierarchy. The fair value of the remaining equity securities and residential mortgage-backed securities in our investment portfolio are based on prices obtained from independent pricing services that are based on quoted market prices for the same or similar securities, and are characterized as Level 2 assets in the fair value hierarchy. We have obtained documentation from our primary pricing service regarding their processes and controls applicable to pricing investment securities, and on a quarterly basis we independently verify the prices that we receive from the service provider using two additional independent pricing sources. We also hold tax-exempt asset-backed securities and CRT securities that are valued using a discounted cash flow model, which utilizes Level 3 inputs, and are classified as Level 3 assets in the fair value hierarchy. Loans Held for Sale Fair value for loans held for sale is derived from quoted market prices for similar loans, in which case they are characterized as Level 2 assets in the fair value hierarchy, or is derived from third party pricing models, in which case they are characterized as Level 3 assets in the fair value hierarchy. Derivatives The estimated fair value of interest rate swaps and caps is obtained from independent pricing services based on quoted market prices for similar derivative contracts and these financial instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. On a quarterly basis, we independently verify the fair value using an additional independent pricing source. Foreign currency forward contracts are valued based upon quoted market prices obtained from independent pricing services for similar derivative contracts. As such, these financial instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. 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 quoted market prices from brokers. As such, these loan purchase commitments and forward sales commitments are characterized as Level 2 assets or liabilities in the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table: September 30, 2019 December 31, 2018 Estimated Fair Value Estimated Fair Value (in thousands) Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Non-hedging derivatives: Financial institution counterparties: Commercial loan/lease interest rate swaps $ 1,540,248 $ 94 $ 58,347 $ 1,579,328 $ 7,978 $ 16,719 Commercial loan/lease interest rate caps 627,149 43 — 606,950 1,109 4 Foreign currency forward contracts 2,954 37 6 39,737 2,263 59 Customer counterparties: Commercial loan/lease interest rate swaps 1,540,248 58,347 94 1,579,328 16,719 7,978 Commercial loan/lease interest rate caps 627,149 — 43 606,950 4 1,109 Foreign currency forward contracts 2,954 6 37 39,737 59 2,263 Economic hedging interest rate derivatives: Loan purchase commitments 580,472 3,590 150 167,984 1,442 6 Forward sale commitments 2,747,284 703 1,810 1,928,527 — 21,005 Gross derivatives 62,820 60,487 29,574 49,143 Offsetting derivative assets/liabilities (94 ) (94 ) (7,768 ) (7,768 ) Net derivatives included in the consolidated balance sheets $ 62,726 $ 60,393 $ 21,806 $ 41,375 The weighted-average received and paid interest rates for interest rate swaps outstanding were as follows: September 30, 2019 Weighted-Average Interest Rate December 31, 2018 Weighted-Average Interest Rate Received Paid Received Paid Non-hedging interest rate swaps 4.03 % 3.56 % 4.24 % 4.20 % The weighted-average strike rate for outstanding interest rate caps was 3.30% at September 30, 2019 and 3.20% at December 31, 2018 . Our credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. Our credit exposure associated with these instruments, net of any collateral pledged, was approximately $62.7 million at September 30, 2019 and approximately $18.7 million at December 31, 2018 . Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap and cap values, as well as for changes in the value of forward sale commitments. At September 30, 2019 , we had $67.0 million in cash collateral pledged for these derivatives, of which $66.6 million was included in interest-bearing deposits in other banks and $410,000 was included in accrued interest receivable and other assets. At December 31, 2018 , we had $25.3 million in cash collateral pledged for these derivatives, of which $11.2 million was included in interest-bearing deposits and $14.1 million was included in accrued interest receivable and other assets. We also enter into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are either a participant or a lead bank. The risk participation agreements entered into by us as a participant bank provide credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. We are party to 12 risk participation agreements where we are a participant bank with a notional amount of $143.0 million at September 30, 2019 , compared to 13 risk participation agreements having a notional amount of $149.1 million at December 31, 2018 . The maximum estimated exposure to these agreements, assuming 100% default by all obligors, was approximately $4.3 million at September 30, 2019 and $1.5 million at December 31, 2018 . The fair value of these exposures was insignificant to the consolidated financial statements at both September 30, 2019 and December 31, 2018 . Risk participation agreements entered into by us as the lead bank provide credit protection to us should the borrower fail to perform on its interest rate derivative contract with us. We are party to 13 risk participation agreements where we are the lead bank having a notional amount of $166.7 million at September 30, 2019 , compared to 9 agreements having a notional amount of $114.8 million at December 31, 2018 . |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting Standards ASU 2019-01 "Leases (Topic 842)" ("ASU 2019-1") provides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, ASU 2019-01 (i) allows the fair value of the underlying asset reported by lessors that are not manufacturers or dealers to continue to be its cost and not fair value as measured under the fair value definition, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies that entities do not have to disclose the effect of the lease standard on adoption year interim amounts. ASU 2019-01 will be effective for us on January 1, 2020 and will not have any material impact on our consolidated financial statements. 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. 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. ASU 2016-13 will be effective for us on January 1, 2020. We continue to evaluate the impact adoption of ASU 2016-13 will have on our consolidated financial statements and disclosures, and while we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption could be significantly influenced by the composition, characteristics and quality of our loan portfolio as well as the prevailing economic conditions and forecasts as of the adoption date. As part of our evaluation process, we have established a steering committee and working group that includes individuals from various functional areas to implement this new accounting standard. Early implementation activities focused on data capture and portfolio segmentation and were substantially completed during the third quarter of 2019. Additionally, our primary model/tool was validated during the third quarter, enabling us to complete a parallel run using second quarter 2019 data. Completion of a parallel run using third quarter 2019 data will be completed early in the fourth quarter. During the third quarter, we continued validation of our reasonable and supportable forecast model, as well as refinement and documentation of our end-to-end processes, which we expect to be completed during the fourth quarter of 2019. |
Operations and Summary of Sig_2
Operations and Summary of Significant Accounting Policies Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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 or national clientele of commercial borrowers. We are primarily a secured lender, with the majority of our loans held for investment, excluding mortgage finance loans and other national lines of business, being made to businesses headquartered or with operations in Texas. Our national lines of business provide specialized lending products to businesses throughout the United States. |
Basis of Accounting | 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 are unaudited and 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, 2018 , included in our Annual Report on Form 10-K filed with the SEC on February 14, 2019 (the “ 2018 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. |
New Accounting Pronouncements | Accounting Changes 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 was effective for us on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. We have elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and have not restated comparative periods. Of the optional practical expedients available under ASU 2016-02, we have adopted all expedients except for the hindsight practical expedient. Our operating leases relate primarily to office space and bank branches. As a result of implementing ASU 2016-02, we recognized an operating lease right-of-use ("ROU") asset of $64 million and an operating lease liability of $74 million on January 1, 2019, with no impact on our consolidated statement of income or consolidated statement of cash flows compared to the prior lease accounting model. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. See Note 7 - Leases for additional information. |
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 financial instruments and the status of contingencies are particularly susceptible to significant change. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: Three months ended September 30, Nine months ended September 30, (in thousands except per share data) 2019 2018 2019 2018 Numerator: Net income $ 88,141 $ 85,552 $ 248,949 $ 228,933 Preferred stock dividends 2,438 2,438 7,313 7,313 Net income available to common stockholders $ 85,703 $ 83,114 $ 241,636 $ 221,620 Denominator: Denominator for basic earnings per share—weighted average shares 50,305,844 50,163,433 50,273,485 49,853,515 Effect of employee stock-based awards(1) 110,558 207,391 119,277 240,376 Effect of warrants to purchase common stock — 10,525 — 115,537 Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions 50,416,402 50,381,349 50,392,762 50,209,428 Basic earnings per common share $ 1.70 $ 1.66 $ 4.81 $ 4.45 Diluted earnings per common share $ 1.70 $ 1.65 $ 4.80 $ 4.41 (1) SARs and RSUs outstanding of 107,615 at September 30, 2019 and 4,000 at September 30, 2018 have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Summary of securities | The following is a summary of available-for-sale debt securities: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2019 Available-for-sale debt securities: Residential mortgage-backed securities $ 5,594 $ 324 $ — $ 5,918 Tax-exempt asset-backed securities 183,273 14,340 — 197,613 Credit risk transfer securities 14,713 — (3,258 ) 11,455 $ 203,580 $ 14,664 $ (3,258 ) $ 214,986 December 31, 2018 Available-for-sale debt securities: Residential mortgage-backed securities $ 6,874 $ 368 $ — $ 7,242 Tax-exempt asset-backed securities 95,518 286 — 95,804 $ 102,392 $ 654 $ — $ 103,046 |
Schedule of amortized cost and estimated fair value of securities | The amortized cost and estimated fair value of available-for-sale debt securities are presented below by contractual maturity: (in thousands, except percentage data) Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total September 30, 2019 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ — $ 1,135 $ — $ 4,459 $ 5,594 Estimated fair value — 1,232 — 4,686 5,918 Weighted average yield(3) — % 5.54 % — % 4.68 % 4.86 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 183,273 183,273 Estimated fair value — — — 197,613 197,613 Weighted average yield(2)(3) — % — % — % 4.20 % 4.20 % CRT securities:(1) Amortized Cost — — — 14,713 14,713 Estimated fair value — — — 11,455 11,455 Weighted average yield(3) — % — % — % 2.15 % 2.15 % Total available-for-sale debt securities: Amortized cost $ 203,580 Estimated fair value $ 214,986 December 31, 2018 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ 3 $ 1,573 $ — $ 5,298 $ 6,874 Estimated fair value 4 1,668 — 5,570 7,242 Weighted average yield(3) 6.50 % 5.54 % — % 4.53 % 4.76 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 95,518 95,518 Estimated fair value — — — 95,804 95,804 Weighted average yield(2)(3) — % — % — % 4.25 % 4.25 % Total available-for-sale debt securities: Amortized cost $ 102,392 Estimated fair value $ 103,046 (1) Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. (2) Yields have been adjusted to a tax equivalent basis assuming a 21% federal tax rate. (3) Yields are calculated based on amortized cost. |
Summary of unrealized and realized gains/(losses) recognized in net income on equity securities | The following is a summary of unrealized and realized gains/(losses) recognized on equity securities and included in other non-interest income in the consolidated statements of income: Three months ended September 30, Nine months ended September 30, (in thousands) 2019 2018 2019 2018 Net gains/(losses) recognized during the period $ 37 $ 253 $ 1,876 $ 149 Less: Realized net gains/(losses) recognized during the period on equity securities sold 111 18 87 180 Unrealized net gains/(losses) recognized during the period on equity securities still held $ (74 ) $ 235 $ 1,789 $ (31 ) |
Loans Held for Investment and_2
Loans Held for Investment and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of loans held for investments | Loans held for investment are summarized by portfolio segment as follows: (in thousands) September 30, 2019 December 31, 2018 Commercial $ 10,377,952 $ 10,373,288 Mortgage finance(1) 7,951,432 5,877,524 Construction 2,641,019 2,120,966 Real estate 3,513,799 3,929,117 Consumer 68,033 63,438 Equipment leases 266,600 312,191 Gross loans held for investment 24,818,835 22,676,524 Deferred income (net of direct origination costs) (94,579 ) (108,450 ) Allowance for loan losses (190,138 ) (191,522 ) Total loans held for investment, net $ 24,534,118 $ 22,376,552 (1) Balances at September 30, 2019 and December 31, 2018 are stated net of $734.7 million and $193.0 million of participations sold, respectively. |
Schedule of the credit risk profile of loan portfolio by internally assigned grades and nonaccrual status | The following tables summarize the credit risk profile of our loans held for investment by internally assigned grades and non-accrual status: (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Equipment Leases Total September 30, 2019 Grade: Pass $ 9,986,993 $ 7,951,432 $ 2,605,995 $ 3,404,146 $ 67,844 $ 266,101 $ 24,282,511 Special mention 198,186 — 19,324 73,927 150 245 291,832 Substandard-accruing 83,502 — 15,700 24,350 — 254 123,806 Non-accrual 109,271 — — 11,376 39 — 120,686 Total loans held for investment $ 10,377,952 $ 7,951,432 $ 2,641,019 $ 3,513,799 $ 68,033 $ 266,600 $ 24,818,835 December 31, 2018 Grade: Pass $ 10,034,597 $ 5,877,524 $ 2,099,955 $ 3,850,811 $ 61,815 $ 309,775 $ 22,234,477 Special mention 120,531 — 21,011 47,644 — 2,223 191,409 Substandard-accruing 140,297 — — 28,205 1,568 193 170,263 Non-accrual 77,863 — — 2,457 55 — 80,375 Total loans held for investment $ 10,373,288 $ 5,877,524 $ 2,120,966 $ 3,929,117 $ 63,438 $ 312,191 $ 22,676,524 |
Schedule of activity in the reserve for loan losses by portfolio segment | The following table details activity in the allowance for loan losses, as well as the recorded investment in loans held for investment, by portfolio segment and disaggregated on the basis of our impairment methodology. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Equipment Leases Additional Qualitative Reserve Total Nine months ended September 30, 2019 Allowance for loan losses: Beginning balance $ 129,442 $ — $ 19,242 $ 33,353 $ 425 $ 1,829 $ 7,231 $ 191,522 Provision for loan losses 74,462 1,966 712 (7,916 ) (419 ) (1,491 ) (7,231 ) 60,083 Charge-offs 62,678 — — 177 — 19 — 62,874 Recoveries 1,337 — — — 60 10 — 1,407 Net charge-offs (recoveries) 61,341 — — 177 (60 ) 9 — 61,467 Ending balance $ 142,563 $ 1,966 $ 19,954 $ 25,260 $ 66 $ 329 $ — $ 190,138 Period end allowance for loan losses allocated to: Loans individually evaluated for impairment $ 26,418 $ — $ — $ 101 $ 8 $ — $ — $ 26,527 Loans collectively evaluated for impairment 116,145 1,966 19,954 25,159 58 329 — 163,611 Total $ 142,563 $ 1,966 $ 19,954 $ 25,260 $ 66 $ 329 $ — $ 190,138 Period end loans allocated to: Loans individually evaluated for impairment $ 109,271 $ — $ — $ 11,376 $ 39 $ — $ — $ 120,686 Loans collectively evaluated for impairment 10,268,681 7,951,432 2,641,019 3,502,423 67,994 266,600 — 24,698,149 Total $ 10,377,952 $ 7,951,432 $ 2,641,019 $ 3,513,799 $ 68,033 $ 266,600 $ — $ 24,818,835 Nine months ended September 30, 2018 Allowance for loan losses: Beginning balance $ 118,806 $ — $ 19,273 $ 34,287 $ 357 $ 3,542 $ 8,390 $ 184,655 Provision for loan losses 55,808 — 331 (1,635 ) 757 (1,425 ) (3,048 ) 50,788 Charge-offs 45,273 — — — 767 319 — 46,359 Recoveries 1,069 — — 43 78 32 — 1,222 Net charge-offs (recoveries) 44,204 — — (43 ) 689 287 — 45,137 Ending balance $ 130,410 $ — $ 19,604 $ 32,695 $ 425 $ 1,830 $ 5,342 $ 190,306 Period end allowance for loan losses allocated to: Loans individually evaluated for impairment $ 30,855 $ — $ — $ 70 $ 10 $ — $ — $ 30,935 Loans collectively evaluated for impairment 99,555 — 19,604 32,625 415 1,830 5,342 159,371 Total $ 130,410 $ — $ 19,604 $ 32,695 $ 425 $ 1,830 $ 5,342 $ 190,306 Period end loans allocated to: Loans individually evaluated for impairment $ 105,522 $ — $ — $ 9,057 $ 60 $ — $ — $ 114,639 Loans collectively evaluated for impairment 10,011,423 5,477,787 2,263,463 3,915,625 51,632 319,411 — 22,039,341 Total $ 10,116,945 $ 5,477,787 $ 2,263,463 $ 3,924,682 $ 51,692 $ 319,411 $ — $ 22,153,980 |
Schedule of impaired loans, by portfolio class | The following tables detail our impaired loans held for investment by portfolio segment. In accordance with ASC 310, Receivables , we have also included all restructured and formerly restructured loans in our impaired loan totals. (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized September 30, 2019 With no related allowance recorded: Commercial Business loans $ 17,420 $ 31,270 $ — $ 18,902 $ — Energy loans 18,758 28,193 — 10,340 — Real estate Market risk 8,757 8,757 — 3,750 — Commercial 908 908 — 6,500 — Secured by 1-4 family 1,220 1,220 — 1,228 — Consumer — — — — — Equipment leases — — — — — Total impaired loans with no allowance recorded $ 47,063 $ 70,348 $ — $ 40,720 $ — With an allowance recorded: Commercial Business loans $ 28,662 $ 31,730 $ 13,483 $ 24,184 $ — Energy loans 44,431 64,171 12,935 50,955 — Real estate Market risk 259 259 50 2,855 — Commercial — — — — — Secured by 1-4 family 232 232 51 750 — Consumer 39 39 8 71 — Equipment leases — — — — — Total impaired loans with an allowance recorded $ 73,623 $ 96,431 $ 26,527 $ 78,815 $ — Combined: Commercial Business loans $ 46,082 $ 63,000 $ 13,483 $ 43,086 $ — Energy loans 63,189 92,364 12,935 61,295 — Real estate Market risk 9,016 9,016 50 6,605 — Commercial 908 908 — 6,500 — Secured by 1-4 family 1,452 1,452 51 1,978 — Consumer 39 39 8 71 — Equipment leases — — — — — Total impaired loans $ 120,686 $ 166,779 $ 26,527 $ 119,535 $ — (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2018 With no related allowance recorded: Commercial Business loans $ 23,367 $ 55,008 $ — $ 16,426 $ 133 Energy loans 12,188 13,363 — 17,135 — Real estate Market risk — — — — — Commercial 7,388 7,388 — 3,215 — Secured by 1-4 family 1,233 1,233 — 734 — Consumer — — — — — Equipment leases — — — — — Total impaired loans with no allowance recorded $ 44,176 $ 76,992 $ — $ 37,510 $ 133 With an allowance recorded: Commercial Business loans $ 17,529 $ 17,564 $ 4,679 $ 41,307 $ — Energy loans 25,344 28,105 3,573 25,672 — Real estate Market risk — — — 49 — Commercial — — — 83 — Secured by 1-4 family 236 236 48 188 — Consumer 55 55 10 54 — Equipment leases — — — 275 — Total impaired loans with an allowance recorded $ 43,164 $ 45,960 $ 8,310 $ 67,628 $ — Combined: Commercial Business loans $ 40,896 $ 72,572 $ 4,679 $ 57,733 $ 133 Energy loans 37,532 41,468 3,573 42,807 — Real estate Market risk — — — 49 — Commercial 7,388 7,388 — 3,298 — Secured by 1-4 family 1,469 1,469 48 922 — Consumer 55 55 10 54 — Equipment leases — — — 275 — Total impaired loans $ 87,340 $ 122,952 $ 8,310 $ 105,138 $ 133 The table below provides an age analysis of our loans held for investment: (in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days(1) Total Past Due Non-accrual Current Total September 30, 2019 Commercial Business loans $ 31,313 $ 6,039 $ 19,084 $ 56,436 $ 46,082 $ 8,728,321 $ 8,830,839 Energy 30,000 4,200 7,550 41,750 63,189 1,442,174 1,547,113 Mortgage finance loans — — — — — 7,951,432 7,951,432 Construction Market risk — 15,700 — 15,700 — 2,520,335 2,536,035 Commercial — — — — — 81,159 81,159 Secured by 1-4 family — — — — — 23,825 23,825 Real estate Market risk 3,129 14,004 2,061 19,194 9,016 2,294,067 2,322,277 Commercial — — — — 908 821,323 822,231 Secured by 1-4 family 312 — 953 1,265 1,452 366,574 369,291 Consumer 277 20 — 297 39 67,697 68,033 Equipment leases — — — — — 266,600 266,600 Total loans held for investment $ 65,031 $ 39,963 $ 29,648 $ 134,642 $ 120,686 $ 24,563,507 $ 24,818,835 (1) Loans past due 90 days and still accruing includes premium finance loans of $9.2 million . These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The receipt of 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 table details the recorded investment at September 30, 2019 and 2018 of loans that have been restructured during the nine months ended September 30, 2019 and 2018 by type of modification: Extended Maturity Adjusted Payment Schedule Total (in thousands, except number of contracts) Number of Contracts Balance at Period End Number of Contracts Balance at Period End Number of Contracts Balance at Period End Nine months ended September 30, 2019 Commercial: Business loans 1 $ 1,824 — $ — 1 $ 1,824 Energy loans 1 3,941 — — 1 3,941 Total 2 $ 5,765 — $ — 2 $ 5,765 Nine months ended September 30, 2018 Commercial: Business loans — $ — 2 $ 2,582 $ 2 $ 2,582 Energy loans — $ — 5 $ 12,332 5 $ 12,332 Total — $ — 7 $ 14,914 7 $ 14,914 |
OREO and Valuation Allowance _2
OREO and Valuation Allowance for Losses on OREO (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Summary of the activity related to OREO | The table below presents a summary of the activity related to OREO: Three months ended September 30, Nine months ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ — $ 9,526 $ 79 $ 11,742 Sales — (11,447 ) (79 ) (11,663 ) Valuation allowance for OREO — 2,000 — — Ending balance $ — $ 79 $ — $ 79 |
Certain Transfers of Financia_2
Certain Transfers of Financial Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of Loans Held-for-sale [Table Text Block] | The table below presents a reconciliation of the changes in loans held for sale: Nine Months Ended September 30, (in thousands) 2019 2018 Outstanding balance(1): Beginning balance $ 1,949,785 $ 1,012,580 Loans purchased and originated 7,288,823 5,012,188 Payments and loans sold (6,571,942 ) (4,366,138 ) Ending balance 2,666,666 1,658,630 Fair value adjustment: Beginning balance 19,689 (1,576 ) Increase/(decrease) to fair value (12,130 ) (5,124 ) Ending balance 7,559 (6,700 ) Loans held for sale at fair value $ 2,674,225 $ 1,651,930 (1) Includes $7.1 million and $299,000 of loans held for sale that are carried at lower of cost or market as of September 30, 2019 and December 31, 2018 |
Schedule of Mortgage Servicing Rights Activity [Table Text Block] | retain the right to service the loans sold through our MCA program, creating mortgage servicing rights ("MSRs") which are recorded as assets on our balance sheet. A summary of MSR activity is as follows: Nine months ended September 30, (in thousands) 2019 2018 MSRs: Balance, beginning of year $ 42,474 $ 88,150 Capitalized servicing rights 22,610 32,871 Amortization (7,599 ) (7,920 ) Sales — (26,742 ) Balance, end of period $ 57,485 $ 86,359 Valuation allowance: Balance, beginning of year $ — $ 2,823 Increase (decrease) in valuation allowance 8,360 (2,823 ) Balance, end of period $ 8,360 $ — MSRs, net $ 49,125 $ 86,359 MSRs, fair value $ 49,125 $ 98,391 |
Schedule of Fair Value Assumption Used to Value Mortgage Servicing Rights Retained [Table Text Block] | The following summarizes the assumptions used by management to determine the fair value of MSRs: September 30, 2019 December 31, 2018 Average discount rates 9.06 % 9.55 % Expected prepayment speeds 14.48 % 9.77 % Weighted-average life, in years 5.3 7.0 |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | A sensitivity analysis of changes in the fair value of our MSR portfolio resulting from certain key assumptions is presented in the following table: (in thousands) September 30, 2019 December 31, 2018 50 bp adverse change in prepayment speed $ (6,077 ) $ (6,028 ) 100 bp adverse change in prepayment speed (9,340 ) (11,629 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of lease cost and other information, operating leases | The table below summarizes our net lease cost: (in thousands) Three months ended Nine months ended September 30, 2019 Operating lease cost $ 3,836 $ 10,973 Variable lease cost 845 2,977 Sublease income (32 ) (94 ) Net lease cost $ 4,649 $ 13,856 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,592 $ 11,054 Non-cash changes in ROU assets $ 13,610 $ 97,898 Non-cash changes in lease liabilities(1) $ 13,610 $ 107,719 (1) Includes $4.2 million and $87.9 million in lease liabilities from new ROU assets obtained during the three and nine months ended September 30, 2019, respectively. The table below summarizes other information related to our operating leases: September 30, 2019 Weighted-average remaining lease term - operating leases, in years 7.3 Weighted-average discount rate - operating leases 2.75 % |
Summary of maturity of remaining lease liabilities | The table below summarizes the maturity of remaining lease liabilities: (in thousands) September 30, 2019 2019 $ 3,666 2020 16,518 2021 17,035 2022 16,235 2023 16,271 2024 and thereafter 39,511 Total lease payments 109,236 Less: Interest (10,824 ) Present value of lease liabilities $ 98,412 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of financial instruments with off-balance sheet risk | The table below presents our financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. This allowance is recorded in other liabilities on the consolidated balance sheet. Three months ended September 30, Nine months ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance of allowance for off-balance sheet credit losses $ 10,790 $ 10,458 $ 11,434 $ 9,071 Provision for off-balance sheet credit losses (1,439 ) (175 ) (2,083 ) 1,212 Ending balance of allowance for off-balance sheet credit losses $ 9,351 $ 10,283 $ 9,351 $ 10,283 (in thousands) September 30, 2019 December 31, 2018 Commitments to extend credit - period end balance $ 8,139,889 $ 8,030,198 Standby letters of credit - period end balance $ 277,832 $ 236,537 |
Regulatory Restrictions (Tables
Regulatory Restrictions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of compliance with Regulatory Capital Requirements | The table below summarizes our actual and required capital ratios under the Basel III Capital Rules: Actual Minimum Capital Required - Basel III Phase-In Schedule Minimum capital Required - Basel III Fully Phased-In Required to be Considered Well Capitalized (dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio September 30, 2019 CET1 Company $ 2,579,029 8.59 % N/A N/A $ 2,102,394 7.00 % N/A N/A Bank 2,598,906 8.66 % N/A N/A 2,101,222 7.00 % 1,951,135 6.50 % Total capital (to risk-weighted assets) Company 3,318,598 11.05 % N/A N/A 3,153,591 10.50 % N/A N/A Bank 3,179,785 10.59 % N/A N/A 3,151,833 10.50 % 3,001,746 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,837,070 9.45 % N/A N/A 2,552,907 8.50 % N/A N/A Bank 2,756,947 9.18 % N/A N/A 2,551,484 8.50 % 2,401,397 8.00 % Tier 1 capital (to average assets)(1) Company 2,837,070 8.63 % N/A N/A 1,314,356 4.00 % N/A N/A Bank 2,756,947 8.39 % N/A N/A 1,313,883 4.00 % 1,642,353 5.00 % December 31, 2018 CET1 Company $ 2,330,599 8.58 % $ 1,732,501 6.38 % $ 1,902,354 7.00 % N/A N/A Bank 2,340,988 8.62 % 1,731,955 6.38 % 1,901,755 7.00 % 1,765,915 6.50 % Total capital (to risk-weighted assets) Company 3,074,097 11.31 % 2,683,679 9.88 % 2,853,532 10.50 % N/A N/A Bank 2,925,872 10.77 % 2,682,833 9.88 % 2,852,632 10.50 % 2,716,793 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,589,374 9.53 % 2,140,149 7.88 % 2,310,002 8.50 % N/A N/A Bank 2,499,763 9.20 % 2,139,474 7.88 % 2,309,274 8.50 % 2,173,434 8.00 % Tier 1 capital (to average assets)(1) Company 2,589,374 9.87 % 1,049,694 4.00 % 1,049,694 4.00 % N/A N/A Bank 2,499,763 9.53 % 1,049,296 4.00 % 1,049,296 4.00 % 1,311,620 5.00 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Compensation Related Costs [Abstract] | |
Schedule of stock-based compensation costs | The table below summarizes our stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018 : Three months ended September 30, Nine months ended September 30, (in thousands) 2019 2018 2019 2018 Stock-settled awards: SARs $ — $ 19 $ 6 $ 112 RSUs 3,015 2,261 8,532 6,235 Restricted stock 8 12 27 36 Cash-settled performance units 1,005 2,144 4,408 9,250 Total $ 4,028 $ 4,436 $ 12,973 $ 15,633 |
Schedule of unrecognized compensation costs | (in thousands except period data) September 30, 2019 Unrecognized compensation expense related to unvested stock-settled awards $ 26,435 Weighted average period over which expense is expected to be recognized, in years 3.1 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value | Assets and liabilities measured at fair value are as follows: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 September 30, 2019 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 5,918 $ — Tax-exempt asset-backed securities — — 197,613 CRT securities — — 11,455 Equity securities(1)(2) 15,890 7,146 — Loans held for sale(3) — 2,657,969 9,198 Loans held for investment(4)(6) — — 56,993 Derivative assets(7) — 62,726 — Derivative liabilities(7) — 60,393 — Non-qualified deferred compensation plan liabilities(8) 16,790 — — December 31, 2018 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 7,242 $ — Tax-exempt asset-backed securities — — 95,804 Equity securities(1)(2) 10,262 6,908 — Loans held for sale(3) — 1,952,760 16,415 Loans held for investment(4)(6) — — 29,885 OREO(5)(6) — — 79 Derivative assets(7) — 21,806 — Derivative liabilities(7) — 41,375 — Non-qualified deferred compensation plan liabilities(8) 10,148 — — (1) Securities are measured at fair value on a recurring basis, generally monthly, except for tax-exempt asset-backed securities and CRT securities which are measured quarterly. (2) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. (3) Loans held for sale purchased through our MCA program 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 generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis: Net Realized/Unrealized Gains (Losses) (in thousands) Balance at Beginning of Period Purchases / Additions Sales / Reductions Realized Unrealized Balance at End of Period Three months ended September 30, 2019 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 201,339 $ — $ (4,116 ) $ — $ 390 $ 197,613 CRT securities $ 10,953 $ — $ — $ — $ 502 $ 11,455 Loans held for sale(2) $ 10,930 $ — $ (2,056 ) $ 102 $ 222 $ 9,198 Three months ended September 30, 2018 Tax-exempt asset-backed securities(1) $ — $ 95,521 $ — $ — $ (2,152 ) $ 93,369 Loans held for sale(2) $ 27,929 $ 901 $ (6,948 ) $ (134 ) $ 165 $ 21,913 Nine months ended September 30, 2019 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 95,804 $ 92,010 $ (4,254 ) $ — $ 14,053 $ 197,613 CRT securities $ — $ 15,044 $ — $ (331 ) $ (3,258 ) $ 11,455 Loans held for sale(2) $ 16,415 $ — $ (8,466 ) $ 450 $ 799 $ 9,198 Nine months ended September 30, 2018 Tax-exempt asset-backed securities(1) $ — $ 95,521 $ — $ — $ (2,152 ) $ 93,369 Loans held for sale(2) $ — $ 38,430 $ (14,936 ) $ (66 ) $ (1,515 ) $ 21,913 (1) Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI. Realized gains/(losses) are recorded in other non-interest income. (2) Realized and unrealized gains/(losses) on loans held for sale are recorded in gain/(loss) on sale of loans held for sale. |
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: September 30, 2019 December 31, 2018 (in thousands) Carrying Amount Estimated Fair Value Carrying Estimated Financial assets: Level 1 inputs: Cash and cash equivalents $ 5,209,270 $ 5,209,270 $ 3,080,065 $ 3,080,065 Investment securities 15,890 15,890 10,262 10,262 Level 2 inputs: Investment securities 13,064 13,064 14,150 14,150 Loans held for sale 2,657,969 2,657,969 1,953,059 1,953,059 Derivative assets 62,726 62,726 21,806 21,806 Level 3 inputs: Investment securities 209,068 209,068 95,804 95,804 Loans held for sale 9,198 9,198 16,415 16,415 Loans held for investment, net 24,534,118 24,564,623 22,376,552 22,347,876 Financial liabilities: Level 2 inputs: Federal funds purchased 127,800 127,800 629,169 629,169 Customer repurchase agreements 12,167 12,167 12,005 12,005 Other borrowings 2,500,000 2,500,000 3,900,000 3,900,000 Subordinated notes 282,038 293,472 281,767 283,349 Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 Derivative liabilities 60,393 60,393 41,375 41,375 Level 3 inputs: Deposits 27,413,303 27,420,277 20,606,113 20,608,494 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table: September 30, 2019 December 31, 2018 Estimated Fair Value Estimated Fair Value (in thousands) Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Non-hedging derivatives: Financial institution counterparties: Commercial loan/lease interest rate swaps $ 1,540,248 $ 94 $ 58,347 $ 1,579,328 $ 7,978 $ 16,719 Commercial loan/lease interest rate caps 627,149 43 — 606,950 1,109 4 Foreign currency forward contracts 2,954 37 6 39,737 2,263 59 Customer counterparties: Commercial loan/lease interest rate swaps 1,540,248 58,347 94 1,579,328 16,719 7,978 Commercial loan/lease interest rate caps 627,149 — 43 606,950 4 1,109 Foreign currency forward contracts 2,954 6 37 39,737 59 2,263 Economic hedging interest rate derivatives: Loan purchase commitments 580,472 3,590 150 167,984 1,442 6 Forward sale commitments 2,747,284 703 1,810 1,928,527 — 21,005 Gross derivatives 62,820 60,487 29,574 49,143 Offsetting derivative assets/liabilities (94 ) (94 ) (7,768 ) (7,768 ) Net derivatives included in the consolidated balance sheets $ 62,726 $ 60,393 $ 21,806 $ 41,375 |
Schedule Of Weighted Average Interest Rate Received And Paid | The weighted-average received and paid interest rates for interest rate swaps outstanding were as follows: September 30, 2019 Weighted-Average Interest Rate December 31, 2018 Weighted-Average Interest Rate Received Paid Received Paid Non-hedging interest rate swaps 4.03 % 3.56 % 4.24 % 4.20 % |
Operations and Summary of Sig_3
Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Property, Plant and Equipment [Line Items] | ||
Operating lease ROU assets | $ 84,300 | |
Operating lease liabilities | $ 98,412 | |
Accounting Standards Update 2016-02 | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease ROU assets | $ 64,000 | |
Operating lease liabilities | $ 74,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net income | $ 88,141 | $ 85,552 | $ 248,949 | $ 228,933 |
Preferred stock dividends | 2,438 | 2,438 | 7,313 | 7,313 |
Net income available to common stockholders | $ 85,703 | $ 83,114 | $ 241,636 | $ 221,620 |
Denominator: | ||||
Basic earnings per share - weighted average shares | 50,305,844 | 50,163,433 | 50,273,485 | 49,853,515 |
Effect of employee stock-based awards | 110,558 | 207,391 | 119,277 | 240,376 |
Effect of warrants to purchase common stock | 0 | 10,525 | 0 | 115,537 |
Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions | 50,416,402 | 50,381,349 | 50,392,762 | 50,209,428 |
Basic earnings per common share | $ 1.70 | $ 1.66 | $ 4.81 | $ 4.45 |
Diluted earnings per common share | $ 1.70 | $ 1.65 | $ 4.80 | $ 4.41 |
Stock options excluded from computation of EPS | 107,615 | 4,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||||
Amortized Cost | $ 203,580 | $ 102,392 | ||
Gross Unrealized Gains | 14,664 | 654 | ||
Gross Unrealized Losses | (3,258) | 0 | ||
Estimated Fair Value | 214,986 | 103,046 | ||
Payments to acquire AFS securities, debt | 111,131 | $ 99,295 | ||
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||||
Amortized Cost | 5,594 | 6,874 | ||
Gross Unrealized Gains | 324 | 368 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 5,918 | 7,242 | ||
Tax-exempt asset-backed securities | ||||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||||
Amortized Cost | 183,273 | 95,518 | ||
Gross Unrealized Gains | 14,340 | 286 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 197,613 | $ 95,804 | ||
Payments to acquire AFS securities, debt | $ 92,000 | |||
Credit risk transfer securities | ||||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||||
Amortized Cost | 14,713 | |||
Gross Unrealized Gains | 0 | |||
Gross Unrealized Losses | (3,258) | |||
Estimated Fair Value | $ 11,455 | |||
Payments to acquire AFS securities, debt | $ 15,000 | |||
Percentage of share of first losses | 50.00% | |||
Percentage of potential recovery on notes | 100.00% |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Amortized cost | |||
Amortized Cost | $ 203,580,000 | $ 102,392,000 | |
Estimated fair value | |||
Total | 214,986,000 | 103,046,000 | |
Investment securities | 214,986,000 | 103,046,000 | |
Weighted average yield | |||
Debt Securities, Available-for-sale, Amortized Cost | 203,580,000 | 102,392,000 | |
Available-for-sale Securities, Other Disclosure Items | |||
Federal tax rate (percent) | 21.00% | ||
Customer repurchase agreements | |||
Available-for-sale Securities, Other Disclosure Items | |||
Available-for-sale debt securities pledged to secure certain customer repurchase agreements and deposits | 3,900,000 | 4,800,000 | |
Residential mortgage-backed securities | |||
Amortized cost | |||
Less Than One Year | 0 | 3,000 | |
After One Through Five Years | 1,135,000 | 1,573,000 | |
After Five Through Ten Years | 0 | 0 | |
After Ten Years | 4,459,000 | 5,298,000 | |
Amortized Cost | 5,594,000 | 6,874,000 | |
Estimated fair value | |||
Less Than One Year | 0 | 4,000 | |
After One Through Five Years | 1,232,000 | 1,668,000 | |
After Five Through Ten Years | 0 | 0 | |
After Ten Years | 4,686,000 | 5,570,000 | |
Investment securities | $ 5,918,000 | $ 7,242,000 | |
Weighted average yield | |||
Less Than One Year | 0.00% | 6.50% | |
After One Through Five Years | 5.54% | 5.54% | |
After Five Through Ten Years | 0.00% | 0.00% | |
After Ten Years | 4.68% | 4.53% | |
Total | 4.86% | 4.76% | |
Debt Securities, Available-for-sale, Amortized Cost | $ 5,594,000 | $ 6,874,000 | |
Tax-exempt asset-backed securities | |||
Amortized cost | |||
Less Than One Year | 0 | 0 | |
After One Through Five Years | 0 | 0 | |
After Five Through Ten Years | 0 | 0 | |
After Ten Years | 183,273,000 | 95,518,000 | |
Amortized Cost | 183,273,000 | 95,518,000 | |
Estimated fair value | |||
Less Than One Year | 0 | 0 | |
After One Through Five Years | 0 | 0 | |
After Five Through Ten Years | 0 | 0 | |
After Ten Years | 197,613,000 | 95,804,000 | |
Investment securities | $ 197,613,000 | $ 95,804,000 | |
Weighted average yield | |||
Less Than One Year | 0.00% | 0.00% | |
After One Through Five Years | 0.00% | 0.00% | |
After Five Through Ten Years | 0.00% | 0.00% | |
After Ten Years | 4.20% | 4.25% | |
Total | 4.20% | 4.25% | |
Debt Securities, Available-for-sale, Amortized Cost | $ 183,273,000 | $ 95,518,000 | |
Credit risk transfer securities | |||
Amortized cost | |||
Less Than One Year | 0 | ||
After One Through Five Years | 0 | ||
After Five Through Ten Years | 0 | ||
After Ten Years | 14,713,000 | ||
Amortized Cost | 14,713,000 | ||
Estimated fair value | |||
Less Than One Year | 0 | ||
After One Through Five Years | 0 | ||
After Five Through Ten Years | 0 | ||
After Ten Years | 11,455,000 | ||
Investment securities | $ 11,455,000 | ||
Weighted average yield | |||
Less Than One Year | 0.00% | ||
After One Through Five Years | 0.00% | ||
After Five Through Ten Years | 0.00% | ||
After Ten Years | 2.15% | ||
Total | 2.15% | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 14,713,000 | ||
Less Than 12 Months, Fair Value | 11,455,000 | ||
Less Than 12 Months, Unrealized Loss | (3,258,000) | ||
12 Months or Longer, Fair Value | 0 | ||
12 Months or Longer, Unrealized Loss | 0 | ||
Total, Fair Value | 11,455,000 | ||
Total, Unrealized Loss | (3,258,000) | ||
Available-for-sale Securities, Other Disclosure Items | |||
Other-than-temporary credit-related impairment | $ 331,000 | ||
Deposits | |||
Available-for-sale Securities, Other Disclosure Items | |||
Available-for-sale debt securities pledged to secure certain customer repurchase agreements and deposits | $ 1,400,000 | $ 1,700,000 |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Abstract] | |||||
Estimated fair value | $ 23,000 | $ 23,000 | $ 17,200 | ||
Net gains/(losses) recognized during the period | 37 | $ 253 | 1,876 | $ 149 | |
Less: Realized net gains/(losses) recognized during the period on equity securities sold | 111 | 18 | 87 | 180 | |
Unrealized net gains/(losses) recognized during the period on equity securities still held | $ (74) | $ 235 | $ 1,789 | $ (31) |
Loans Held for Investment and_3
Loans Held for Investment and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||
Participating Mortgage Loans, Mortgage Obligations, Amount | $ 734,700 | $ 193,000 | ||
Loans and Leases Receivable, Net Reported Amount | ||||
Commercial | 10,377,952 | 10,373,288 | ||
Mortgage finance(1) | 7,951,432 | 5,877,524 | ||
Construction | 2,641,019 | 2,120,966 | ||
Real estate | 3,513,799 | 3,929,117 | ||
Consumer | 68,033 | 63,438 | ||
Equipment leases | 266,600 | 312,191 | ||
Gross loans held for investment | 24,818,835 | 22,676,524 | $ 22,153,980 | |
Deferred income (net of direct origination costs) | (94,579) | (108,450) | ||
Allowance for loan losses | (190,138) | (191,522) | $ (190,306) | $ (184,655) |
Loans held for investment, net | $ 24,534,118 | $ 22,376,552 |
Loans Held for Investment and_4
Loans Held for Investment and Allowance for Loan Losses (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Average impaired loans outstanding | $ 119,535,000 | $ 105,000,000 | $ 105,138,000 | |
Interest income recognized on non-accrual loans | $ 0 | 0 | 133,000 | |
Nonaccrual loans that met the criteria for restructured | $ 15,500,000 | $ 15,500,000 | $ 20,000,000 |
Loans Held for Investment and_5
Loans Held for Investment and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | $ 10,377,952 | $ 10,373,288 | |
Mortgage finance(1) | 7,951,432 | 5,877,524 | |
Construction | 2,641,019 | 2,120,966 | |
Real estate | 3,513,799 | 3,929,117 | |
Consumer | 68,033 | 63,438 | |
Equipment leases | 266,600 | 312,191 | |
Total | 24,818,835 | 22,676,524 | $ 22,153,980 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 9,986,993 | 10,034,597 | |
Mortgage finance(1) | 7,951,432 | 5,877,524 | |
Construction | 2,605,995 | 2,099,955 | |
Real estate | 3,404,146 | 3,850,811 | |
Consumer | 67,844 | 61,815 | |
Equipment leases | 266,101 | 309,775 | |
Total | 24,282,511 | 22,234,477 | |
Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 198,186 | 120,531 | |
Mortgage finance(1) | 0 | 0 | |
Construction | 19,324 | 21,011 | |
Real estate | 73,927 | 47,644 | |
Consumer | 150 | 0 | |
Equipment leases | 245 | 2,223 | |
Total | 291,832 | 191,409 | |
Substandard-accruing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 83,502 | 140,297 | |
Mortgage finance(1) | 0 | 0 | |
Construction | 15,700 | 0 | |
Real estate | 24,350 | 28,205 | |
Consumer | 0 | 1,568 | |
Equipment leases | 254 | 193 | |
Total | 123,806 | 170,263 | |
Non-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 109,271 | 77,863 | |
Mortgage finance(1) | 0 | 0 | |
Construction | 0 | 0 | |
Real estate | 11,376 | 2,457 | |
Consumer | 39 | 55 | |
Equipment leases | 0 | 0 | |
Total | $ 120,686 | $ 80,375 |
Loans Held for Investment and_6
Loans Held for Investment and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 191,522 | $ 184,655 | |
Provision for loan losses | 60,083 | 50,788 | |
Charge-offs | 62,874 | 46,359 | |
Recoveries | 1,407 | 1,222 | |
Net charge-offs (recoveries) | 61,467 | 45,137 | |
Ending balance | 190,138 | 190,306 | |
Period end allowance for loan losses allocated to: | |||
Loans individually evaluated for impairment | 26,527 | 30,935 | |
Loans collectively evaluated for impairment | 163,611 | 159,371 | |
Period end loans allocated to: | |||
Loans individually evaluated for impairment | 120,686 | 114,639 | |
Loans collectively evaluated for impairment | 24,698,149 | 22,039,341 | |
Gross loans held for investment | 24,818,835 | 22,153,980 | $ 22,676,524 |
Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 129,442 | 118,806 | |
Provision for loan losses | 74,462 | 55,808 | |
Charge-offs | 62,678 | 45,273 | |
Recoveries | 1,337 | 1,069 | |
Net charge-offs (recoveries) | 61,341 | 44,204 | |
Ending balance | 142,563 | 130,410 | |
Period end allowance for loan losses allocated to: | |||
Loans individually evaluated for impairment | 26,418 | 30,855 | |
Loans collectively evaluated for impairment | 116,145 | 99,555 | |
Period end loans allocated to: | |||
Loans individually evaluated for impairment | 109,271 | 105,522 | |
Loans collectively evaluated for impairment | 10,268,681 | 10,011,423 | |
Gross loans held for investment | 10,377,952 | 10,116,945 | |
Mortgage Finance | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Provision for loan losses | 1,966 | 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs (recoveries) | 0 | 0 | |
Ending balance | 1,966 | 0 | |
Period end allowance for loan losses allocated to: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 1,966 | 0 | |
Period end loans allocated to: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 7,951,432 | 5,477,787 | |
Gross loans held for investment | 7,951,432 | 5,477,787 | |
Construction | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 19,242 | 19,273 | |
Provision for loan losses | 712 | 331 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs (recoveries) | 0 | 0 | |
Ending balance | 19,954 | 19,604 | |
Period end allowance for loan losses allocated to: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 19,954 | 19,604 | |
Period end loans allocated to: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 2,641,019 | 2,263,463 | |
Gross loans held for investment | 2,641,019 | 2,263,463 | |
Real Estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 33,353 | 34,287 | |
Provision for loan losses | (7,916) | (1,635) | |
Charge-offs | 177 | 0 | |
Recoveries | 0 | 43 | |
Net charge-offs (recoveries) | 177 | (43) | |
Ending balance | 25,260 | 32,695 | |
Period end allowance for loan losses allocated to: | |||
Loans individually evaluated for impairment | 101 | 70 | |
Loans collectively evaluated for impairment | 25,159 | 32,625 | |
Period end loans allocated to: | |||
Loans individually evaluated for impairment | 11,376 | 9,057 | |
Loans collectively evaluated for impairment | 3,502,423 | 3,915,625 | |
Gross loans held for investment | 3,513,799 | 3,924,682 | |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 425 | 357 | |
Provision for loan losses | (419) | 757 | |
Charge-offs | 0 | 767 | |
Recoveries | 60 | 78 | |
Net charge-offs (recoveries) | (60) | 689 | |
Ending balance | 66 | 425 | |
Period end allowance for loan losses allocated to: | |||
Loans individually evaluated for impairment | 8 | 10 | |
Loans collectively evaluated for impairment | 58 | 415 | |
Period end loans allocated to: | |||
Loans individually evaluated for impairment | 39 | 60 | |
Loans collectively evaluated for impairment | 67,994 | 51,632 | |
Gross loans held for investment | 68,033 | 51,692 | |
Equipment Leases | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,829 | 3,542 | |
Provision for loan losses | (1,491) | (1,425) | |
Charge-offs | 19 | 319 | |
Recoveries | 10 | 32 | |
Net charge-offs (recoveries) | 9 | 287 | |
Ending balance | 329 | 1,830 | |
Period end allowance for loan losses allocated to: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 329 | 1,830 | |
Period end loans allocated to: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 266,600 | 319,411 | |
Gross loans held for investment | 266,600 | 319,411 | |
Additional Qualitative Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 7,231 | 8,390 | |
Provision for loan losses | (7,231) | (3,048) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs (recoveries) | 0 | 0 | |
Ending balance | 0 | 5,342 | |
Period end allowance for loan losses allocated to: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 0 | 5,342 | |
Period end loans allocated to: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 0 | 0 | |
Gross loans held for investment | $ 0 | $ 0 |
Loans Held for Investment and_7
Loans Held for Investment and Allowance for Loan Losses (Details 6) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Recorded Investment | ||||
With No Related Allowanced Recorded, Recorded Investment | $ 47,063,000 | $ 47,063,000 | $ 44,176,000 | |
With An Allowanced Recorded, Recorded Investment | 73,623,000 | 73,623,000 | 43,164,000 | |
Combined, Recorded Investment | 120,686,000 | 120,686,000 | 87,340,000 | |
Unpaid Principal Balance | ||||
With No Related Allowanced Recorded, Unpaid Principal Balance | 70,348,000 | 70,348,000 | 76,992,000 | |
With An Allowanced Recorded, Unpaid Principal Balance | 96,431,000 | 96,431,000 | 45,960,000 | |
Combined, Unpaid Principal Balance | 166,779,000 | 166,779,000 | 122,952,000 | |
Related Allowance | 26,527,000 | 26,527,000 | 8,310,000 | |
Average Recorded Investment | ||||
With No Related Allowanced Recorded, Average Recorded Investment | 40,720,000 | 37,510,000 | ||
With An Allowanced Recorded, Average Recorded Investment | 78,815,000 | 67,628,000 | ||
Combined, Average Recorded Investment | 119,535,000 | $ 105,000,000 | 105,138,000 | |
Interest Income Recognized | ||||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 133,000 | ||
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
Interest income recognized on non-accrual loans | 0 | 0 | 133,000 | |
Commercial | Business loans | ||||
Recorded Investment | ||||
With No Related Allowanced Recorded, Recorded Investment | 17,420,000 | 17,420,000 | 23,367,000 | |
With An Allowanced Recorded, Recorded Investment | 28,662,000 | 28,662,000 | 17,529,000 | |
Combined, Recorded Investment | 46,082,000 | 46,082,000 | 40,896,000 | |
Unpaid Principal Balance | ||||
With No Related Allowanced Recorded, Unpaid Principal Balance | 31,270,000 | 31,270,000 | 55,008,000 | |
With An Allowanced Recorded, Unpaid Principal Balance | 31,730,000 | 31,730,000 | 17,564,000 | |
Combined, Unpaid Principal Balance | 63,000,000 | 63,000,000 | 72,572,000 | |
Related Allowance | 13,483,000 | 13,483,000 | 4,679,000 | |
Average Recorded Investment | ||||
With No Related Allowanced Recorded, Average Recorded Investment | 18,902,000 | 16,426,000 | ||
With An Allowanced Recorded, Average Recorded Investment | 24,184,000 | 41,307,000 | ||
Combined, Average Recorded Investment | 43,086,000 | 57,733,000 | ||
Interest Income Recognized | ||||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 133,000 | ||
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
Combined, Interest Income Recognized | 0 | 133,000 | ||
Commercial | Energy loans | ||||
Recorded Investment | ||||
With No Related Allowanced Recorded, Recorded Investment | 18,758,000 | 18,758,000 | 12,188,000 | |
With An Allowanced Recorded, Recorded Investment | 44,431,000 | 44,431,000 | 25,344,000 | |
Combined, Recorded Investment | 63,189,000 | 63,189,000 | 37,532,000 | |
Unpaid Principal Balance | ||||
With No Related Allowanced Recorded, Unpaid Principal Balance | 28,193,000 | 28,193,000 | 13,363,000 | |
With An Allowanced Recorded, Unpaid Principal Balance | 64,171,000 | 64,171,000 | 28,105,000 | |
Combined, Unpaid Principal Balance | 92,364,000 | 92,364,000 | 41,468,000 | |
Related Allowance | 12,935,000 | 12,935,000 | 3,573,000 | |
Average Recorded Investment | ||||
With No Related Allowanced Recorded, Average Recorded Investment | 10,340,000 | 17,135,000 | ||
With An Allowanced Recorded, Average Recorded Investment | 50,955,000 | 25,672,000 | ||
Combined, Average Recorded Investment | 61,295,000 | 42,807,000 | ||
Interest Income Recognized | ||||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
Combined, Interest Income Recognized | 0 | 0 | ||
Real estate | Market risk | ||||
Recorded Investment | ||||
With No Related Allowanced Recorded, Recorded Investment | 8,757,000 | 8,757,000 | 0 | |
With An Allowanced Recorded, Recorded Investment | 259,000 | 259,000 | 0 | |
Combined, Recorded Investment | 9,016,000 | 9,016,000 | 0 | |
Unpaid Principal Balance | ||||
With No Related Allowanced Recorded, Unpaid Principal Balance | 8,757,000 | 8,757,000 | 0 | |
With An Allowanced Recorded, Unpaid Principal Balance | 259,000 | 259,000 | 0 | |
Combined, Unpaid Principal Balance | 9,016,000 | 9,016,000 | 0 | |
Related Allowance | 50,000 | 50,000 | 0 | |
Average Recorded Investment | ||||
With No Related Allowanced Recorded, Average Recorded Investment | 3,750,000 | 0 | ||
With An Allowanced Recorded, Average Recorded Investment | 2,855,000 | 49,000 | ||
Combined, Average Recorded Investment | 6,605,000 | 49,000 | ||
Interest Income Recognized | ||||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
Combined, Interest Income Recognized | 0 | 0 | ||
Real estate | Commercial | ||||
Recorded Investment | ||||
With No Related Allowanced Recorded, Recorded Investment | 908,000 | 908,000 | 7,388,000 | |
With An Allowanced Recorded, Recorded Investment | 0 | 0 | 0 | |
Combined, Recorded Investment | 908,000 | 908,000 | 7,388,000 | |
Unpaid Principal Balance | ||||
With No Related Allowanced Recorded, Unpaid Principal Balance | 908,000 | 908,000 | 7,388,000 | |
With An Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | 0 | |
Combined, Unpaid Principal Balance | 908,000 | 908,000 | 7,388,000 | |
Related Allowance | 0 | 0 | 0 | |
Average Recorded Investment | ||||
With No Related Allowanced Recorded, Average Recorded Investment | 6,500,000 | 3,215,000 | ||
With An Allowanced Recorded, Average Recorded Investment | 0 | 83,000 | ||
Combined, Average Recorded Investment | 6,500,000 | 3,298,000 | ||
Interest Income Recognized | ||||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
Combined, Interest Income Recognized | 0 | 0 | ||
Real estate | Secured by 1-4 family | ||||
Recorded Investment | ||||
With No Related Allowanced Recorded, Recorded Investment | 1,220,000 | 1,220,000 | 1,233,000 | |
With An Allowanced Recorded, Recorded Investment | 232,000 | 232,000 | 236,000 | |
Combined, Recorded Investment | 1,452,000 | 1,452,000 | 1,469,000 | |
Unpaid Principal Balance | ||||
With No Related Allowanced Recorded, Unpaid Principal Balance | 1,220,000 | 1,220,000 | 1,233,000 | |
With An Allowanced Recorded, Unpaid Principal Balance | 232,000 | 232,000 | 236,000 | |
Combined, Unpaid Principal Balance | 1,452,000 | 1,452,000 | 1,469,000 | |
Related Allowance | 51,000 | 51,000 | 48,000 | |
Average Recorded Investment | ||||
With No Related Allowanced Recorded, Average Recorded Investment | 1,228,000 | 734,000 | ||
With An Allowanced Recorded, Average Recorded Investment | 750,000 | 188,000 | ||
Combined, Average Recorded Investment | 1,978,000 | 922,000 | ||
Interest Income Recognized | ||||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
Combined, Interest Income Recognized | 0 | 0 | ||
Consumer | ||||
Recorded Investment | ||||
With No Related Allowanced Recorded, Recorded Investment | 0 | 0 | 0 | |
With An Allowanced Recorded, Recorded Investment | 39,000 | 39,000 | 55,000 | |
Combined, Recorded Investment | 39,000 | 39,000 | 55,000 | |
Unpaid Principal Balance | ||||
With No Related Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | 0 | |
With An Allowanced Recorded, Unpaid Principal Balance | 39,000 | 39,000 | 55,000 | |
Combined, Unpaid Principal Balance | 39,000 | 39,000 | 55,000 | |
Related Allowance | 8,000 | 8,000 | 10,000 | |
Average Recorded Investment | ||||
With No Related Allowanced Recorded, Average Recorded Investment | 0 | 0 | ||
With An Allowanced Recorded, Average Recorded Investment | 71,000 | 54,000 | ||
Combined, Average Recorded Investment | 71,000 | 54,000 | ||
Interest Income Recognized | ||||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
Combined, Interest Income Recognized | 0 | 0 | ||
Equipment leases | ||||
Recorded Investment | ||||
With No Related Allowanced Recorded, Recorded Investment | 0 | 0 | 0 | |
With An Allowanced Recorded, Recorded Investment | 0 | 0 | 0 | |
Combined, Recorded Investment | 0 | 0 | 0 | |
Unpaid Principal Balance | ||||
With No Related Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | 0 | |
With An Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | 0 | |
Combined, Unpaid Principal Balance | 0 | 0 | 0 | |
Related Allowance | $ 0 | 0 | 0 | |
Average Recorded Investment | ||||
With No Related Allowanced Recorded, Average Recorded Investment | 0 | 0 | ||
With An Allowanced Recorded, Average Recorded Investment | 0 | 275,000 | ||
Combined, Average Recorded Investment | 0 | 275,000 | ||
Interest Income Recognized | ||||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | ||
Combined, Interest Income Recognized | $ 0 | $ 0 |
Loans Held for Investment and_8
Loans Held for Investment and Allowance for Loan Losses (Details 7) $ in Thousands | Sep. 30, 2019USD ($) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | $ 134,642 |
Non-accrual | 120,686 |
Current | 24,563,507 |
Total | 24,818,835 |
Premium finance loans past due and still accruing | 9,200 |
Commercial | Business loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 56,436 |
Non-accrual | 46,082 |
Current | 8,728,321 |
Total | 8,830,839 |
Commercial | Energy loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 41,750 |
Non-accrual | 63,189 |
Current | 1,442,174 |
Total | 1,547,113 |
Mortgage Finance | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Non-accrual | 0 |
Current | 7,951,432 |
Total | 7,951,432 |
Construction | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 15,700 |
Non-accrual | 0 |
Current | 2,520,335 |
Total | 2,536,035 |
Construction | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Non-accrual | 0 |
Current | 81,159 |
Total | 81,159 |
Construction | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Non-accrual | 0 |
Current | 23,825 |
Total | 23,825 |
Real estate | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 19,194 |
Non-accrual | 9,016 |
Current | 2,294,067 |
Total | 2,322,277 |
Real estate | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Non-accrual | 908 |
Current | 821,323 |
Total | 822,231 |
Real estate | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 1,265 |
Non-accrual | 1,452 |
Current | 366,574 |
Total | 369,291 |
Consumer | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 297 |
Non-accrual | 39 |
Current | 67,697 |
Total | 68,033 |
Equipment leases | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Non-accrual | 0 |
Current | 266,600 |
Total | 266,600 |
30 to 59 Days Past Due | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 65,031 |
30 to 59 Days Past Due | Commercial | Business loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 31,313 |
30 to 59 Days Past Due | Commercial | Energy loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 30,000 |
30 to 59 Days Past Due | Mortgage Finance | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Construction | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Construction | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Construction | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Real estate | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 3,129 |
30 to 59 Days Past Due | Real estate | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Real estate | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 312 |
30 to 59 Days Past Due | Consumer | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 277 |
30 to 59 Days Past Due | Equipment leases | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 39,963 |
60 to 89 Days Past Due | Commercial | Business loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 6,039 |
60 to 89 Days Past Due | Commercial | Energy loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 4,200 |
60 to 89 Days Past Due | Mortgage Finance | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Construction | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 15,700 |
60 to 89 Days Past Due | Construction | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Construction | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Real estate | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 14,004 |
60 to 89 Days Past Due | Real estate | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Real estate | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Consumer | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 20 |
60 to 89 Days Past Due | Equipment leases | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 29,648 |
Greater Than 90 Days | Commercial | Business loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 19,084 |
Greater Than 90 Days | Commercial | Energy loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 7,550 |
Greater Than 90 Days | Mortgage Finance | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Construction | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Construction | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Construction | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Real estate | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 2,061 |
Greater Than 90 Days | Real estate | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Real estate | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 953 |
Greater Than 90 Days | Consumer | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Equipment leases | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | $ 0 |
Loans Held for Investment and_9
Loans Held for Investment and Allowance for Loan Losses (Details 8) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual loans that met the criteria for restructured | $ 15,500 | $ 20,000 | |
Number of Contracts | loan | 2 | 7 | |
Loans modified as restructured loans | $ 5,765 | $ 14,914 | |
Extended maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 2 | 0 | |
Loans modified as restructured loans | $ 5,765 | $ 0 | |
Adjusted payment schedule | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 0 | 7 | |
Loans modified as restructured loans | $ 0 | $ 14,914 | |
Commercial | Business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 1 | 2 | |
Loans modified as restructured loans | $ 1,824 | $ 2,582 | |
Commercial | Business loans | Extended maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 1 | 0 | |
Loans modified as restructured loans | $ 1,824 | $ 0 | |
Commercial | Business loans | Adjusted payment schedule | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 0 | 2 | |
Loans modified as restructured loans | $ 0 | $ 2,582 | |
Commercial | Energy loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 1 | 5 | |
Loans modified as restructured loans | $ 3,941 | $ 12,332 | |
Commercial | Energy loans | Extended maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 1 | 0 | |
Loans modified as restructured loans | $ 3,941 | $ 0 | |
Commercial | Energy loans | Adjusted payment schedule | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 0 | 5 | |
Loans modified as restructured loans | $ 0 | $ 12,332 |
OREO and Valuation Allowance _3
OREO and Valuation Allowance for Losses on OREO (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Real Estate [Roll Forward] | ||||
Beginning balance | $ 0 | $ 9,526 | $ 79 | $ 11,742 |
Sales | 0 | (11,447) | (79) | (11,663) |
Valuation allowance for OREO | 0 | 2,000 | 0 | 0 |
Ending balance | $ 0 | $ 79 | $ 0 | $ 79 |
Certain Transfers of Financia_3
Certain Transfers of Financial Assets Certain Transfers of Financial Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Outstanding balance(1): | |||||
Beginning balance | $ 1,949,785 | $ 1,012,580 | $ 1,949,785 | $ 1,012,580 | |
Loans purchased and originated | 7,288,823 | 5,012,188 | |||
Payments and loans sold | (6,571,942) | (4,366,138) | |||
Ending balance | 2,666,666 | 1,658,630 | |||
Fair value adjustment: | |||||
Fair value over (under) outstanding balance | 19,689 | (1,576) | 19,689 | (1,576) | |
Increase/(decrease) to fair value | (12,130) | (5,124) | |||
Fair value over (under) outstanding balance | 7,559 | (6,700) | |||
Loans held for sale | 2,674,225 | 1,651,930 | $ 1,969,474 | ||
Small Business Administration Loans [Member] | |||||
Fair value adjustment: | |||||
Fair value over (under) outstanding balance | $ 299 | $ 3,300 | 299 | $ 3,300 | |
Fair value over (under) outstanding balance | $ 7,100 |
Certain Transfers of Financia_4
Certain Transfers of Financial Assets (Details 1) - USD ($) | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | $ 2,666,666,000 | $ 1,658,630,000 | $ 1,949,785,000 | $ 1,012,580,000 |
Total Past Due | 134,642,000 | |||
Estimated exposure related to servicing assets | 5,400,000 | 1,600,000 | ||
Principal amount outstanding of loans in servicing portfolio | 5,600,000,000 | 3,900,000,000 | ||
Escrow deposits related to servicing portfolio | 75,200,000 | 37,900,000 | ||
Losses due to repurchase indemnification and make-whole obligations | 4,500,000 | $ 187,000 | ||
Greater Than 90 Days | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | 9,200,000 | 16,800,000 | ||
Total Past Due | 29,648,000 | |||
Mortgage servicing rights | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impairment charges | 8,400,000 | |||
Government guarantees | Greater Than 90 Days | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | 7,300,000 | $ 16,000,000 | ||
Government guarantees | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Greater Than 90 Days | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Past Due | 1,900,000 | |||
Non-accrual | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | $ 0 |
Certain Transfers of Financia_5
Certain Transfers of Financial Assets (Details 2) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Valuation Allowance for Impairment of Recognized Servicing Assets, Sales and Disposals [Abstract] | ||
Valuation allowance, beginning balance | $ 1,600 | |
Valuation allowance, ending balance | 5,400 | |
Mortgage Servicing Rights | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance, beginning of year | 42,474 | $ 88,150 |
Capitalized servicing rights | 22,610 | 32,871 |
Amortization | (7,599) | (7,920) |
Sales | 0 | (26,742) |
Balance, end of period | 57,485 | 86,359 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Sales and Disposals [Abstract] | ||
Valuation allowance, beginning balance | 0 | 2,823 |
Increase (decrease) in valuation allowance | 8,360 | (2,823) |
Valuation allowance, ending balance | 8,360 | 0 |
MSRs, net | 49,125 | 86,359 |
Fair value | $ 49,125 | $ 98,391 |
Certain Transfers of Financia_6
Certain Transfers of Financial Assets (Details 3) - Mortgage Servicing Rights | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Average discount rates (percent) | 9.06% | 9.55% |
Expected prepayment speeds (percent) | 14.48% | 9.77% |
Weighted-average life, in years | 5 years 3 months 18 days | 7 years |
Certain Transfers of Financia_7
Certain Transfers of Financial Assets Certain Transfers of Financial Assets (Details 4) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Transfers and Servicing [Abstract] | ||
50 bp adverse change in prepayment speed | $ (6,077) | $ (6,028) |
100 bp adverse change in prepayment speed | $ (9,340) | $ (11,629) |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease ROU assets | $ 84,300 |
Operating lease liabilities | $ 98,412 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 1 year |
Extension options | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 13 years |
Extension options | 10 years |
Leases - Net lease cost (Detail
Leases - Net lease cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 3,836 | $ 10,973 |
Variable lease cost | 845 | 2,977 |
Sublease income | (32) | (94) |
Net lease cost | 4,649 | 13,856 |
Operating cash flows from operating leases | 3,592 | 11,054 |
Non-cash changes in ROU assets | 13,610 | 97,898 |
Non-cash changes in lease liabilities(1) | 13,610 | 107,719 |
Right-of-use asset obtained in exchange for finance lease liability | $ 4,200 | $ 87,900 |
Leases - Other information (Det
Leases - Other information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 3,592 | $ 11,054 |
Weighted-average remaining lease term - operating leases, in years | 7 years 3 months 18 days | 7 years 3 months 18 days |
Weighted-average discount rate - operating leases | 2.75% | 2.75% |
Leases - Maturity of remaining
Leases - Maturity of remaining lease liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 3,666 |
2020 | 16,518 |
2021 | 17,035 |
2022 | 16,235 |
2023 | 16,271 |
2024 and thereafter | 39,511 |
Total lease payments | 109,236 |
Less: Interest | (10,824) |
Present value of lease liabilities | $ 98,412 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet liability | $ 8,139,889 | $ 8,030,198 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet liability | $ 277,832 | $ 236,537 |
Regulatory Restrictions (Detail
Regulatory Restrictions (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2009 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Assets | $ 33,526,437 | $ 28,257,767 | $ 15,000,000 | |
Mortgage finance(1) | 7,951,432 | 5,877,524 | ||
Mortgage Finance, Average Balance | 8,100,000 | |||
Common Equity Tier 1 [Abstract] | ||||
CET1, actual amount | 2,579,029 | 2,330,599 | ||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets), actual amount | 3,318,598 | 3,074,097 | ||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets), actual amount | 2,837,070 | 2,589,374 | ||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets), actual amount | $ 2,837,070 | $ 2,589,374 | ||
Risk Based Ratios [Abstract] | ||||
CET1, actual ratio | 8.59% | 8.58% | ||
Total capital (to risk weighted assets), actual ratio | 11.05% | 11.31% | ||
Tier 1 capital (to risk-weighted assets), actual ratio | 9.45% | 9.53% | ||
Tier 1 capital (to average assets), actual ratio | 8.63% | 9.87% | ||
Bank | ||||
Common Equity Tier 1 [Abstract] | ||||
CET1, actual amount | $ 2,598,906 | $ 2,340,988 | ||
CET1 to be well capitalized under prompt corrective action provisions, amount | 1,951,135 | 1,765,915 | ||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets), actual amount | 3,179,785 | 2,925,872 | ||
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, amount | 3,001,746 | 2,716,793 | ||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets), actual amount | 2,756,947 | 2,499,763 | ||
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, amount | 2,401,397 | 2,173,434 | ||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets), actual amount | 2,756,947 | 2,499,763 | ||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action provisions, amount | $ 1,642,353 | $ 1,311,620 | ||
Risk Based Ratios [Abstract] | ||||
CET1, actual ratio | 8.66% | 8.62% | ||
CET1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% | ||
Total capital (to risk weighted assets), actual ratio | 10.59% | 10.77% | ||
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% | ||
Tier 1 capital (to risk-weighted assets), actual ratio | 9.18% | 9.20% | ||
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% | ||
Tier 1 capital (to average assets), actual ratio | 8.39% | 9.53% | ||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% | ||
Basel III, Phase-In Schedule | ||||
Common Equity Tier 1 [Abstract] | ||||
CET1 for capital adequacy purposes, amount | $ 1,732,501 | |||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 2,683,679 | |||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,140,149 | |||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,049,694 | |||
Risk Based Ratios [Abstract] | ||||
CET1 for capital adequacy purposes, ratio | 6.38% | |||
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 9.88% | |||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 7.88% | |||
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 4.00% | |||
Basel III, Phase-In Schedule | Bank | ||||
Common Equity Tier 1 [Abstract] | ||||
CET1 for capital adequacy purposes, amount | $ 1,731,955 | |||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 2,682,833 | |||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,139,474 | |||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,049,296 | |||
Risk Based Ratios [Abstract] | ||||
CET1 for capital adequacy purposes, ratio | 6.38% | |||
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 9.88% | |||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 7.88% | |||
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 4.00% | |||
Basel III, Phased-In | ||||
Common Equity Tier 1 [Abstract] | ||||
CET1 for capital adequacy purposes, amount | $ 2,102,394 | $ 1,902,354 | ||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 3,153,591 | 2,853,532 | ||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,552,907 | 2,310,002 | ||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,314,356 | $ 1,049,694 | ||
Risk Based Ratios [Abstract] | ||||
CET1 for capital adequacy purposes, ratio | 7.00% | 7.00% | ||
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 10.50% | 10.50% | ||
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, ratio | 1.875% | |||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 8.50% | 8.50% | ||
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 4.00% | 4.00% | ||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action provisions, ratio | 2.50% | |||
Basel III, Phased-In | Bank | ||||
Common Equity Tier 1 [Abstract] | ||||
CET1 for capital adequacy purposes, amount | $ 2,101,222 | $ 1,901,755 | ||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 3,151,833 | 2,852,632 | ||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,551,484 | 2,309,274 | ||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,313,883 | $ 1,049,296 | ||
Risk Based Ratios [Abstract] | ||||
CET1 for capital adequacy purposes, ratio | 7.00% | 7.00% | ||
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 10.50% | 10.50% | ||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 8.50% | 8.50% | ||
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 4.00% | 4.00% |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 4,028 | $ 4,436 | $ 12,973 | $ 15,633 |
Unrecognized compensation expense related to unvested stock-settled awards | 26,435 | $ 26,435 | ||
Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) | 3 years 1 month 6 days | |||
SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 0 | 19 | $ 6 | 112 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 3,015 | 2,261 | 8,532 | 6,235 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 8 | 12 | 27 | 36 |
Cash-settled performance units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 1,005 | $ 2,144 | $ 4,408 | $ 9,250 |
Long-Term Incentive Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized under the plan | 2,550,000 | 2,550,000 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | $ 214,986 | $ 103,046 | ||||
Investment securities | 214,986 | 103,046 | ||||
Loans held for sale | 2,667,200 | 1,969,200 | ||||
OREO | 0 | $ 0 | 79 | $ 79 | $ 9,526 | $ 11,742 |
Tax-exempt asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 197,613 | 95,804 | ||||
Credit risk transfer securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 11,455 | |||||
Fair value measurements, recurring basis | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held for sale | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Non-qualified deferred compensation plan liabilities | 16,790 | 10,148 | ||||
Fair value measurements, recurring basis | Level 1 | Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 0 | 0 | ||||
Fair value measurements, recurring basis | Level 1 | Tax-exempt asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 0 | 0 | ||||
Fair value measurements, recurring basis | Level 1 | Credit risk transfer securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 0 | |||||
Fair value measurements, recurring basis | Level 1 | Equity securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 15,890 | 10,262 | ||||
Fair value measurements, recurring basis | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held for sale | 2,657,969 | 1,952,760 | ||||
Derivative liabilities | 41,375 | |||||
Non-qualified deferred compensation plan liabilities | 0 | 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] | ||||||
Investment securities | 5,918 | 7,242 | ||||
Fair value measurements, recurring basis | Level 2 | Tax-exempt asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 0 | 0 | ||||
Fair value measurements, recurring basis | Level 2 | Credit risk transfer securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 0 | |||||
Fair value measurements, recurring basis | Level 2 | Equity securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 7,146 | 6,908 | ||||
Fair value measurements, recurring basis | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held for sale | 9,198 | 16,415 | ||||
Derivative assets | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Non-qualified deferred compensation plan liabilities | 0 | 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] | ||||||
Investment securities | 0 | 0 | ||||
Fair value measurements, recurring basis | Level 3 | Tax-exempt asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 197,613 | 95,804 | ||||
Fair value measurements, recurring basis | Level 3 | Credit risk transfer securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 11,455 | |||||
Fair value measurements, recurring basis | Level 3 | Equity securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities | 0 | 0 | ||||
Fair value measurements, nonrecurring basis | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans | 0 | 0 | ||||
OREO | 0 | |||||
Fair value measurements, nonrecurring basis | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans | 0 | 0 | ||||
OREO | 0 | |||||
Fair value measurements, nonrecurring basis | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans | 56,993 | 29,885 | ||||
OREO | 79 | |||||
Not Designated as Hedging Instrument [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative assets | 21,806 | |||||
Derivative liabilities | 41,375 | |||||
Not Designated as Hedging Instrument [Member] | Fair value measurements, recurring basis | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative assets | 62,726 | $ 21,806 | ||||
Derivative liabilities | $ 60,393 |
Fair Value Disclosures (Detai_2
Fair Value Disclosures (Details 1) - Tax-exempt asset-backed securities - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Period | $ 0 | $ 0 |
Purchases / Additions | 95,521 | 95,521 |
Sales / Reductions | 0 | 0 |
Realized | 0 | 0 |
Unrealized | (2,152) | (2,152) |
Balance at End of Period | $ 93,369 | $ 93,369 |
Fair Value Disclosures (Detai_3
Fair Value Disclosures (Details 2) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Impaired loans | ||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Asset measured on nonrecurring basis, carrying value | $ 72,600 | $ 32,200 |
Asset measured on nonrecurring basis, specific valuation allowance | 15,600 | 2,300 |
Asset measured on nonrecurring basis, reported fair value | $ 57,000 | 29,900 |
OREO | ||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Asset measured on nonrecurring basis, carrying value | $ 79 | |
Measurement Input, Discount Rate | ||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans Held-for-sale, Measurement Input | 0.953 | 0.929 |
Measurement Input, Discount Rate | Tax-exempt asset-backed securities | ||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Asset-Backed Securities, Measurement Input | 0.0301 | 0.0421 |
Asset-Backed Securities, Term | 7 years 3 months 18 days | 9 years 2 months 12 days |
Measurement Input, Discount Rate | Credit risk transfer securities | ||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Asset-Backed Securities, Measurement Input | 0.0475 | |
Asset-Backed Securities, Term | 9 years 6 months |
Fair Value Disclosures (Detai_4
Fair Value Disclosures (Details 3) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | $ 214,986 | $ 103,046 |
Loans held for sale | 2,667,200 | 1,969,200 |
Subordinated notes | 282,038 | 281,767 |
Level 1 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 15,890 | 10,262 |
Level 1 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 5,209,270 | 3,080,065 |
Investment securities | 15,890 | 10,262 |
Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 13,064 | 14,150 |
Loans held for sale | 2,657,969 | 1,953,059 |
Derivative assets | 21,806 | |
Federal funds purchased | 127,800 | 629,169 |
Customer repurchase agreements | 12,167 | 12,005 |
Other borrowings | 2,500,000 | 3,900,000 |
Subordinated notes | 282,038 | 281,767 |
Derivative liabilities | 41,375 | |
Level 2 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 13,064 | 14,150 |
Loans held for sale | 2,657,969 | 1,953,059 |
Derivative assets | 62,726 | 21,806 |
Federal funds purchased | 127,800 | 629,169 |
Customer repurchase agreements | 12,167 | 12,005 |
Other borrowings | 2,500,000 | 3,900,000 |
Subordinated notes | 293,472 | 283,349 |
Derivative liabilities | 60,393 | 41,375 |
Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 209,068 | 95,804 |
Loans held for sale | 9,198 | 16,415 |
Loans held for investment, net | 24,534,118 | 22,376,552 |
Deposits | 27,413,303 | 20,606,113 |
Trust preferred subordinated debentures | 113,406 | 113,406 |
Level 3 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 209,068 | 95,804 |
Loans held for sale | 9,198 | 16,415 |
Loans held for investment, net | 24,564,623 | 22,347,876 |
Deposits | 27,420,277 | 20,608,494 |
Trust preferred subordinated debentures | $ 113,406 | $ 113,406 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details 1) - Non-hedging - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Estimated fair value, asset derivative | $ 62,820 | $ 29,574 |
Estimated fair value, liability derivative | 60,487 | 49,143 |
Offsetting derivative liabilities | (94) | (7,768) |
Offsetting derivative assets | (94) | (7,768) |
Net asset derivatives included in the consolidated balance sheets | 21,806 | |
Net liability derivatives included in the consolidated balance sheets | 41,375 | |
Interest rate contract | Loan purchase commitments | ||
Derivative [Line Items] | ||
Notional amount | 580,472 | 167,984 |
Estimated fair value, asset derivative | 3,590 | 1,442 |
Estimated fair value, liability derivative | 150 | 6 |
Interest rate contract | Loan purchase commitments | ||
Derivative [Line Items] | ||
Notional amount | 2,747,284 | 1,928,527 |
Estimated fair value, asset derivative | 703 | 0 |
Estimated fair value, liability derivative | 1,810 | 21,005 |
Financial institution counterparties | Commercial loan/lease | Interest rate swap | ||
Derivative [Line Items] | ||
Notional amount | 1,540,248 | 1,579,328 |
Estimated fair value, asset derivative | 94 | 7,978 |
Estimated fair value, liability derivative | 58,347 | 16,719 |
Financial institution counterparties | Commercial loan/lease | Interest rate cap | ||
Derivative [Line Items] | ||
Notional amount | 627,149 | 606,950 |
Estimated fair value, asset derivative | 43 | 1,109 |
Estimated fair value, liability derivative | 0 | 4 |
Financial institution counterparties | Commercial loan/lease | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional amount | 2,954 | 39,737 |
Estimated fair value, asset derivative | 37 | 2,263 |
Estimated fair value, liability derivative | 6 | 59 |
Customer counterparties | Commercial loan/lease | Interest rate swap | ||
Derivative [Line Items] | ||
Notional amount | 1,540,248 | 1,579,328 |
Estimated fair value, asset derivative | 58,347 | 16,719 |
Estimated fair value, liability derivative | 94 | 7,978 |
Customer counterparties | Commercial loan/lease | Interest rate cap | ||
Derivative [Line Items] | ||
Notional amount | 627,149 | 606,950 |
Estimated fair value, asset derivative | 0 | 4 |
Estimated fair value, liability derivative | 43 | 1,109 |
Customer counterparties | Commercial loan/lease | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional amount | 2,954 | 39,737 |
Estimated fair value, asset derivative | 6 | 59 |
Estimated fair value, liability derivative | $ 37 | $ 2,263 |
Derivative Financial Instrume_4
Derivative Financial Instruments Derivative Financial Instruments (Details 2) - Non-hedging - Commercial loan/lease - Interest rate swap | Sep. 30, 2019 | Dec. 31, 2018 |
Interest rate received | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 4.03% | 4.24% |
Interest rate paid | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 3.56% | 4.20% |
Derivative Financial Instrume_5
Derivative Financial Instruments Derivative Financial Instruments (Details 3) $ in Thousands | Sep. 30, 2019USD ($)instrument | Dec. 31, 2018USD ($)instrument |
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 67,000 | $ 25,300 |
Risk participation agreement - participant bank | ||
Derivative [Line Items] | ||
Instruments held | instrument | 12 | 13 |
Maximum exposure | $ 4,300 | $ 1,500 |
Notional amount | $ 143,000 | $ 149,100 |
Risk participation agreement - lead bank | ||
Derivative [Line Items] | ||
Instruments held | instrument | 13 | 9 |
Notional amount | $ 166,700 | $ 114,800 |
Non-hedging | Commercial loan/lease | ||
Derivative [Line Items] | ||
Credit risk exposure, net of collateral pledged, relating to derivatives | $ 62,700 | $ 18,700 |
Non-hedging | Interest rate cap | Commercial loan/lease | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 3.30% | 3.20% |
Interest-bearing deposits | ||
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 66,600 | $ 11,200 |
Other assets | ||
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 410 | $ 14,100 |
Uncategorized Items - a9302019-
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (82,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 84,000 |